Capital Market
The capital market plays an important role in mobilising the savings and diverting them in productive investment. It is a medium of transferring the financial resources from surplus and wasteful areas to deficit and productive areas meaning transfer of money or capital from those who have surplus money to those who are in need of investment thus increasing the productivity and prosperity of the country.
It deals in long-term loans. It supplies industry with fixed and working capital and finances medium-term and long-term borrowings of the central, state and local governments. The common instruments used in capital market are shares, debentures, bonds, mutual funds, public deposits etc. The funds which flow into the capital market come from individuals who have savings to invest, the merchant banks, the commercial banks and non-bank financial intermediaries, such as insurance companies, finance houses, unit trusts, investment trusts, venture capital, leasing finance, mutual funds, building societies, etc.
The capital market functions through the stock exchange. A stock exchange is a market which facilitates buying and selling of shares, stocks, bonds, securities and debentures. It is not only a market for old securities and shares but also for new issues of shares and securities. In fact, the capital market is related to the supply and demand for new capital, and the stock exchange facilitates such transactions.
Funds flow into the capital market from individuals and financial intermediaries which are absorbed by commerce, industry and government. It thus facilitates the movement of stream of capital to be used more productively and profitability to increases the national income. It prides incentives to savers in the form of interest, dividend or bonus and transfers funds to investors, thus leading to capital formation.
The capital market encourages economic growth by leading to the development of commerce and industry through the private and public sector. In an underdeveloped country where capital is scarce, the absence of a developed capital market is a greater hindrance to capital formation and economic growth.
Indian Business News
Monday February 06, 2023
Shares of most of the Adani group firms ended lower on Monday, with the group companies' combined mcap witnessing a sharp fall of Rs 9.5 lakh crore after US-based short-seller Hindenburg Research's adverse report. Forex traders said the Hindenburg Research report has soured market mood towards Adani Group stocks, leading to a sharp decline in the stock prices. At the end of Monday's trading session, six of the 10 Adani group companies ended in the negative territory, with Adani Transmission slipping 10 per cent, while the shares of Adani Total Gas, Adani Power, Adani Green Energy and Adani Wilmar declined 5 per cent each. Shares of Adani Enterprises closed for the day at Rs 1,572.40, down 0.74 per cent over its previous close. Four of the Adani group companies defied the trend and settled in the positive territory with Adani Ports and Special Economic Zone closing higher by 9.46 per cent, Ambuja Cements (up 1.54 per cent), ACC (up 2.24 per cent) and NDTV (up 1.37 per cent). "The A
Monday February 06, 2023
The so-called price-to-earnings ratio for the stock has surged from 15 times earnings in the five years to 2021 to 214 times in the last two years, the professor wrote
Monday February 06, 2023
Nifty opened on a negative note on Monday & moved lower in the beginning of the session. However, the key hourly moving averages offered support on the downside & restricted further downside. Consequently, the index traded in a sideways manner as the day progressed & ultimately formed an Inside bar on the daily chart
Monday February 06, 2023
Monday February 06, 2023
The enforcement directorate has attached Rs 936 crore proceeds of crime and arrested 5 five persons related to crypto currency fraud, Parliament was informed on Monday. Further, under the Foreign Exchange Management Act, 1999 (FEMA), assets amounting to Rs 289.28 crore have been seized and one show cause notice to cryptocurrency exchange Zanmai Labs Pvt Ltd, known as WazirX, and its directors has been issued for transactions involving cryptocurrencies worth Rs 2,790 crore. In a written reply to a question in the Lok Sabha, minister of state for finance Pankaj Chaudhary said the Enforcement Directorate is investigating several cases related to cryptocurrency frauds wherein a few crypto exchanges have also been found involved in money laundering. "As on January 31, 2023, proceeds of crime amounting to Rs 936 crore have been attached/seized/freezed, 5 persons have been arrested and 6 prosecution complaints (PCs) including 1 supplementary PC have been filed before the Special Court, PML
Monday February 06, 2023
Monday February 06, 2023
Explaining the reason for the 16 per cent spike in revenue to Rs 5,871 crore and the resultant 10 per cent jump in net interest income to Rs 1,606 crore, Gowd told PTI that Rs 1,569.33 crore increase in absolute provisions was due to prudential provisioning as we wanted to increase the coverage ratio
Monday February 06, 2023
Capital market regulator Sebi on Monday came out with operational guidelines on green bonds asking issuers to make additional disclosure, pertaining to environmental sustainability objectives of such debt securities in the offer document. In addition, issuers of green bonds will have to disclose brief details of decision-making process followed for determining the eligibility of projects, for which the proceeds are being raised through issuance of green debt securities, Sebi said in a circular. Apart from disclosure in the offer document, the Securities and Exchange Board of India (Sebi) has asked the issuer, who has listed green debt securities, to provide certain additional disclosures along with its annual report and financial results. Also, the issuer will have to appoint a third party reviewer for a green debt security for the post-issue management of the use of proceeds from the green debt security, and verification of the internal tracking and impact reporting. Listing out .
Monday February 06, 2023
The U.S. Department of Justice's bankruptcy watchdog has urged U.S. Bankruptcy Judge John Dorsey, who is overseeing FTX's Chapter 11, to appoint an independent examiner to investigate allegations of "fraud, dishonesty, incompetence, misconduct, and mismanagement" that are "too important to be left to an internal investigation
Monday February 06, 2023
Also, price caps on Russian products took effect on Sunday, with Group of Seven (G7) nations, the European Union and Australia agreeing on price limits of $100 a barrel on diesel and other products that trade at a premium to crude and $45 a barrel for products that trade at a discount, such as fuel oil
Monday February 06, 2023
In a new paper, Sebi has proposed the daily transfer of client funds to clearing corporations
Monday February 06, 2023
The guidelines, to be effective from April 1, 2023, have come against the backdrop of increasing interest in sustainable finance in India as well as around the globe, and with a view to aligning the framework for green debt securities with the updated Green Bond Principles (GBP) recognised by IOSCO
Monday February 06, 2023
The Qualified Stock Brokers, or QSBs, will be required to analyse client behaviour and trading patterns, and detect unusual activity
Monday February 06, 2023
Red-hot Taiwanese market, Adani rout erode India's weighting
Monday February 06, 2023
Monday February 06, 2023
“Everywhere we have tried to be realistic. And that is why when people ask me, have you reduced your Budget on some things? No, we have been realistic. Absorption is also a very important indicator of where your money will be well received. There is no point in giving money in every head because it exists.”
Monday February 06, 2023
Stake issuance coupled with potential capital infusion by promoters should help Vi clear pending dues and invest in 5G; Indus Towers' receivables set to reduce
Monday February 06, 2023
Business Standard brings you the lowdown on demat accounts, trading accounts and a host of other terms and instruments you will find useful while moving your holdings
Monday February 06, 2023
Monday February 06, 2023
In its consultation paper, the regulator has proposed mandating daily upstreaming of all investor funds from stock brokers and clearing members (CMs) to Clearing Corporations (CCs). Investor funds in surplus of exchange margin requirements may in turn be placed by CCs in very low-risk and liquid overnight money market instruments
Monday February 06, 2023
A host of companies including Airtel, Adani Green, Hero MotoCorp among others will announce their third quarter results on Tuesday. >> For more such web stories click on the ET icon below
Monday February 06, 2023
The recent price action on the benchmark front indicates uncertainty among participants and that might continue in the near term. Traders should thus maintain their focus more on identifying opportunities in the sectors that are showing resilience. However, it’s easier said than done as we’re seeing restricted participation. Also, managing overnight risk is equally important citing the prevailing volatile scenario
Monday February 06, 2023
Monday February 06, 2023
Monday February 06, 2023
Monday February 06, 2023
To curb possible misuse of investors' money by brokers, Sebi has proposed to stop trading members and clearing members from retaining any part of client funds at the end of day and move the entire funds to the clearing corporation on the same day. At present, when an investor places funds with a broker a portion of such money is retained by the broker, and a part by the clearing member, before passing the remaining amount to the clearing corporation. In its consultation paper, the regulator has proposed mandating daily upstreaming of all investor funds from stock brokers and clearing members (CMs) to Clearing Corporations (CCs). Investor funds in surplus of exchange margin requirements may in turn be placed by CCs in very low-risk and liquid overnight money market instruments. The proposal also considers independent daily confirmation to investors around their daily funds position in the securities market ecosystem. While the proposal could reduce the float income implicitly enjoye
Monday February 06, 2023
Monday February 06, 2023
Analysts have said that the government’s decision to convert Vi’s accrued interest into equity will help the telco get some existing bank debt refinanced in the immediate future, which will help free up cash to pay vendor dues particularly to Indus Towers as well as for immediate capex needs
Monday February 06, 2023
Monday February 06, 2023
Monday February 06, 2023
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