Вы находитесь на странице: 1из 4

Innovations NSE pioneering efforts include: Being the first national, anonymous, electronic limit order book (LOB)

) exchange to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model. Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later,derivatives market) trades in India. [9] Co-promoting and setting up of National Securities Depository Limited, first depository in India Setting up of S&P CNX Nifty. NSE pioneered commencement of Internet Trading in February 2000, which led to the wide popularization of the NSE in the broker community. Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India. NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18. NSE.IT Limited, setup in 1999, is a 100% subsidiary of the National Stock Exchange of India. A Vertical Specialist Enterprise, NSE.IT offers end-to-end Information Technology (IT) products, solutions and services. NSE (National Stock Exchange) was the first exchange in the world to use satellite communication technology for trading, using a client server based system called National Exchange for Automated Trading (NEAT). For all trades entered into NEAT system, there is uniform response time of less than one second. August 2008 Currency derivatives were introduced in India with the launch of Currency Futures in USD INR by NSE. Currently it has also launched currency futures in EURO, POUND & YEN. Interest Rate Futures was introduced for the first time in India by NSE on 31 August 2009, exactly after one year of the launch of Currency Futures. NSE became the first stock exchange to get approval for Interest rate futures as recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on 7% 10 Year GOI bond (NOTIONAL) was launched with quarterly maturities NSE new market timing from 4 Jan 2010 is 9:00 am till 3:30 pm India Time. March 2005 India Innovation Award by EMPI Business School, New Delhi June 2005 Launch of Futures & options in BANK Nifty Index December 2006 'Derivative Exchange of the Year', by Asia Risk magazine January 2007 Launch of NSE CNBC TV 18 media centre March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com June 2007 NSE launches derivatives on Nifty Junior & CNX 100 October 2007 NSE launches derivatives on Nifty Midcap 50 January 2008 Introduction of Mini Nifty derivative contracts on 1 January 2008 March 2008 Introduction of long term option contracts on S&P CNX Nifty Index April 2008 Launch of India VIX April 2008 Launch of Securities Lending & Borrowing Scheme August 2008 Launch of Currency Derivatives August 2009 Launch of Interest Rate Futures November 2009 Launch of Mutual Fund Service System December 2009 Commencement of settlement of corporate bonds February 2010 Launch of Currency Futures on additional currency pairs October 2010 Launch of 15-minute special pre-open trading session, a mechanism under which investors can bid for stocks before the market opens. [12] NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including:[13] S&P CNX Nifty(Standard & Poor's CRISIL NSE Index) CNX Nifty Junior CNX 100 (= S&P CNX Nifty + CNX Nifty Junior) S&P CNX 500 (= CNX 100 + 400 major players across 72 industries) CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

To reduce transaction time and bolster liquidity, various reforms were undertaken during this decade (2000-2010), such as introduction of automated trading system, reduction in the settlement cycle, dematerialization etc. Further, the stock exchanges were allowed to provide a separate trading window for block deals in November 2005 to facilitate execution of large trades without impacting the market. With the advent of new technology, greater sophistication was brought to the Indian securities markets by introducing world class facilities like Direct Market Access (DMA), algorithmic trading, smart order routing system and co-location service. The facility of DMA was introduced for institutional investors in the year 2008 which provided them direct access to the exchange trading system through the brokers infrastructure without manual intervention by the broker. Currently, around 25-30% of FII trades are routed through DMA and it is expected to increase to 40-45% by end-20111. DMA ensured direct control over orders by institutional investors, faster order placement and execution, more arbitrage opportunities, improved liquidity, greater transparency and lower impact cost for large order. Algorithmic trading refers to orders that are automatically placed in the market by software programmes, built on certain mathematical models. Smart Order Routing enables the brokers trading engines to systematically choose the execution destination from out of trading platforms of different stock exchanges based on factors such as price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order. Finally, global exchanges introduced co-location services to support high frequency trading using Algorithmic trading and DMA. In the primary markets, SEBI made IPO grading compulsory for companies coming out with the IPOs of equity shares in May 2007. An IPO Grade provides an additional input to investors in arriving at an investment decision based on independent and objective analysis. In addition, SEBI introduced the process of Application Supported by Blocked Amount (ASBA) which ensured that the application money does not move out of the account of applicant but is only blocked and debited to the extent of allotment. ASBA helped to overcome the earlier refund related concerns upon allotment and enabled investors to earn interest on the blocked amount. To enhance retail participation and market liquidity in equity derivative segment, mini derivative contracts on Nifty and Sensex were introduced in 2008 having a minimum contract size of ` 1 lakh. SEBI also allowed trading on option contracts on Nifty and Sensex with tenure of up to five years to provide liquidity at the longer end of the market. In addition to derivatives products, a host of other products such as mutual funds, index funds, index and gold based ETFs and ETFs on international indices2 were introduced on the Indian stock exchanges during the last decade. By providing an opportunity to the investors to diversify their portfolios internationally, this could Add another dimension to the Indian securities markets. For example: in March 2010, NSE and Chicago Mercantile Exchange (CME) had announced cross-listing arrangements. Under the cross-listing arrangements, the S&P CNX Nifty Index (Nifty 50), the leading Indian benchmark index representing 22 sectors of the Indian economy, has been made available to CME for the creation and listing of U.S. dollar denominated Nifty futures contracts for trading on CME. Keeping in view the increased integration of global markets, the market regulator also allowed Indian stock exchanges to extend their trade timings from 9:55 a.m.-3:30 p.m. to 9:00 a.m.-5:00 p.m. In May 2010, SEBI has permitted setting up of a stock exchange or trading platform for SMEs by stock exchanges having nationwide trading terminals. In addition to this, various initiatives have been taken by SEBI to strengthen the corporate governance among the listed companies. Clause 49 has been amended from time to time to improve disclosures, strengthen the responsibilities of audit committees and include provision for whistle blower policy and restrict the term of independent directors etc. Clause 35 of the Listing Agreement has also been amended to provide for disclosure of details of shares held by Promoters and promoter group entities in listed companies which are pledged or otherwise encumbered. Any listed company which falls short of these prescribed limits on the commencement of The Securities Contracts (Regulation) (Amendment) Rules, 2010, shall increase its public shareholding to the stipulated level within a period of three years. Companies coming out with initial public offers to get listed must adhere to the above public shareholding limits at the time of their listing. This move would reduce price manipulation by creating large and diversified public shareholdings. In a recent initiative on the regulatory front, a Financial Stability and Development Council (FSDC) has been created to strengthen and institutionalize the mechanism for maintaining financial stability and monitoring macro prudential supervision of the economy.

Table 1-2: Market Participants in Securities Market Market Participants 2009 2010 As on Sep 30, 2010 Securities Appellate Tribunal (SAT) 1 1 1 Regulators* 4 4 4 Depositories 2 2 2 Stock Exchanges With Equities Trading 20 20 20 With Debt Market Segment 2 2 2 With Derivative Trading 2 2 2 With Currency Derivatives 3 3 4 Brokers (Cash Segment) 9,628 9,772 10,018 Corporate Brokers (Cash Segment) 4,308 4,424 4,618 Brokers (Equity Derivatives) 1,587 1,705 1,902 Brokers (Currency Derivatives) 1,154 1,459 1,811 Sub-brokers 60,947 75,577 81,713 FIIs 1626 1713 1726 Portfolio Managers 232 243 250 Custodians 16 17 17 Registrars to an issue & Share Transfer Agents 71 74 68 Primary Dealers 18 20 20 Merchant Bankers 134 164 184 Bankers to an Issue 51 48 52 Debenture Trustees 30 30 27 Underwriters 19 5 6 Venture Capital Funds 132 158 168 Foreign Venture Capital Investors 129 143 150 Mutual Funds 44 47 48 Collective Investment Schemes 1 1 1 Source: SEBI, RBI * DCA, DEA, RBI & SEBI. Brokers of cash segment include brokers of Mangalore SE, HSE, Magadh and SKSE. The four important elements of securities markets are the investors, the issuers, the intermediaries and regulators

INSURANCE The Indian insurance sector has witnessed significant growth - the number of life policies in force has increased nearly 12-fold over 2000-2010, and health insurance policies nearly 25-fold. Factors like better terms, availability of a wide variety of products (like unit-linked insurance products, whole life, maximum net asset value (NAV) guarantee etc), and government incentives have boosted the growth of the industry. Data released by the Insurance Regulatory and Development Authority (IRDA) indicates that 23 life insurers registered Rs 18,282.86 crore (US$ 4.1 billion) by writing new policies during April-June 2011. State-owned Life Insurance Corporation (LIC) of India, collected premiums worth about Rs 13,341.97 crore (US$ 3 billion), while its private peers collected 4,940.89 crore (US$ 1.1 billion) as new first-year premium during the period. In June 2011, industry collection stood at Rs 6,022.98 crore (US$ 1.35 billion). Revenue earned by selling new policies increased by 15.13 per cent in FY11, amounting to Rs 1, 25,826.03 crore (US$ 28.24 billion) against 1, 09,290.38 crore (US$ 24.53 billion) in FY10. Currently, the insurance industry, including life and non-life companies, has deployed a capital of about Rs 35,000 crore (US$ 7.8 billion) out of which Rs 26,000 crore (US$ 5.8 billion) comes from the life insurance segment. Foreign players have contributed about Rs 9,000 crore (US$ 2 billion). RDA has recently hinted at mandatory listing of insurance companies. Though the insurance Act doesnt stipulate companies to go public, the regulator might make amendments to it to facilitate capital rising by the players. Initial Public Offer (IPO) guidelines for the insurance sector are also being worked upon.

According to the draft guidelines released, only those players that have 10 years of operational experience and strong financial performance would be allowed access to the capital markets. IRDA has also announced the release of much-awaited health insurance portability scheme across nonlife insurance companies to be done on October 1, 2011. The proposed scheme would give policyholders discretion of moving to other insurer of their choice, whom they think is providing better product and service, while continuing with their policies. The launch of the scheme has been postponed from July 1 to October 1 so that the insurers are completely prepared to adopt the new concept. Paving way for consolidation in general insurance sector, IRDA has notified merger & acquisition (M&A) guidelines for the players. The IRDA Scheme of Amalgamation and Transfer of General Insurance Business Regulations-2011 would apply with immediate effect to all private general insurance companies. Along with IRDA, the buyer would be mandated to receive nods from the Reserve Bank of India (RBI) and finance ministry, in case foreign direct investment (FDI) is involved. It would also require having approvals from the Securities and Exchange Board of India (SEBI) and CCI. To improve the level of penetration in Indian markets, the sector regulator is contemplating allowing banks to sell products of two insurance companies each in life and non-life categories. The recommendation over banc assurance for such a move was made by a committee set up by IRDA itself. As per the current practice, a bank is allowed to sell products of one each in a life insurance company, a general and a health insurance firm.