The emergence of Indian Capital Market as an attractive avenue for international investors has been financial story of recent times. The entry of world players has revolutionised Indian markets, largely for the better. But problems of understanding the Management Systems and behaviour of capital market scientifically are vastly ignored by the general investors and unless these are carefully sorted out with acquired scientific knowledge by the investors, the good times for investors, large and small, might not last. Further understanding of the Management System of Capital Market is must for students of Economic, Commerce, Management and Business Journalism which obviously will help them in their latter professional life.
Behaviour of Indian capital Market, specially, stock market is always interesting, challenging and if one understands it, it becomes pleasantly rewarding.
During my work as a business research journalist and a teacher of economics, I have tried to explain the different investment theories and scientific planning of investment and how different laws of the land can influence investment planning. As still recently, Indian capital market behaved according to play-rule of speculators and brokers, we sometimes doubted how far a scientific investment planning is valid to the Indian context.
But more recently I have noticed that across class rooms and in different Press Conferences, seminars, students and general investing public are increasingly becoming interested in the scientific parameters which affect the capital market in general and stock market in particular. Especially after the liberalisation of the Indian economy in early nineties, general investors find that the Indian capital market is behaving in such a way it is beyond their imagination or understanding. So, they are now very much eager to know how with minimum risk one can achieve maximum gain from Indian stock or capital market. They are now increasingly becoming aware that scientific understanding of capital market is must to reap best harvest from it. So, more and more investing people and students of Finance Management are becoming increasingly dependent on reliable scientific stories of economic and business dailies and periodicals.
Investing people, at present, are becoming more eager to listen not to rumours but to scientific reasoning of the movements of prices of a share scrip, bond or mutual fund.
Scientific reasoning of the movements of capital market mostly depend on the different scientific parameters and different laws and regulations implement by the capital market regulatory authorities time to time. Besides these, other fundamental and technical reasons also influence Indian capital market.
Keeping all the above mentioned aspects and basic subject matter of capital market in my mind, I propose to divide this eBook in Eleven Chapters.
In this first chapter, we will describe different capital markets of the world with their brief history and definitions of capital and money market and differences between them. In the second chapter, different instruments of capital market, including company shares, will be taken care of in detail. In the third chapter, different aspect of investments in the capital market will be discussed in detail. In the fourth chapter, scientific discussions of the movement of prices of company share, debentures, mutual fund etc. will be done with the help of fundamental and technical analysis. In the fifth chapter, role of different financial institutions, including banks and foreign financial institutions, in the capital market will be discussed in detail. Sixth chapter will involve in the discussion of different laws and regulations affecting the Indian capital market. How tax laws can affect the investments in the capital market and how these can be minimised will be detailed in the chapter seven. In eighth chapter, role of derivatives, options and futures in the capital market will be discussed. Computer screen based trading of securities, Demat (Dematerialised) trading through demat accounts in Banks and trading through Internet will be discussed in chapter nine. In the chapter ten, the security of investors will be discussed in detail. In the chapter eleven some aspects of international stock markets will be discussed.
I hope that this eBook will be a great help to the students of Business management, Economic and business journalism, Commerce, Economics, Finance Management and general investing people in understanding the scientific parameters of capital market mechanism in India and other developing countries.
AMAL KRISHNA DEY: To introduce myself and let you know about my credential I am furnishing my short profile in the following lines.
I possess a Masters Degree in Statistics with specialisation in Econometrics. I was associated with Farm Management Scheme and Agro-Economic Research Centre, Visva-Bharati University, Santiniketan, West Bengal, India, from 1969 to 1978, also taught Econometrics at the post graduate level in department of Economics of same University. I also advised a number of PhD students of Calcutta and Kalyani University, West Bengal, India, as their co-guide.
During 1978-79, I was the Head of the Division of the Agriculture and Rural Development Division of Commerce Weekly, Bombay, India. From 1979 to 2001, I was the Head of Business Standard Research Bureau of Business Standard, Kolkata, India. Business Standard is the Business and Economic daily publish simultaneously from New Delhi, Chennai, Bangalore and Kolkata.
During 2001 to 2002, I was a senior Research Consultant of Sobhagya Advertising Services, Kolkata, India.
During 2002 to 2004, I was the Freelance Consultant for the Bengali publications of Exim Bank of India, Kolkata, India.
I was also associated with two reputed Financial Services organisation of Kolkata as a flexi time General Manager.
At present I am a Senior Accredited Freelance Journalist writing research articles and stories for different dailies and periodicals of India and abroad.
Published more than 500 research articles and stories on capital market, agriculture, industry, corporate sector, trend in stock prices and other development economics, which involved equity research and management as well in different economic dailies and periodicals including Economic and Political Weekly, Desh and Aanda Bazar Patrika. I am also the co-author of two books one development economics and the other on stock market behaviours in India and other developing markets. The first one published by Mitra and Ghosh Publications and New Central Book Agency (P) Ltd., Kolkata.
Having more than 35 years of experience in analysing and writing on India and international economics in general and corporate and business economics in particular and in consultancy in economic research and portfolio management including computer applications and informatics through Laptop, PCs and mainframe computers in two financial services firms of Kolkata as well as in a advertising firm and a export import bank in Kolkata.
PANKAJ KUMAR ROY: Possesses a Masters Degree in Commerce and Ph.D (Business Management) with specialisation in Industrial Sickness from Calcutta University, Calcutta, India. Dr. Roy is a life member of Indian Accounting Association. At present he is the teacher-in-charge of the evening academic section of New Alipore College, Calcutta.
A member of visiting faculty of the ICFAI, Calcutta chapter, and also visiting faculty member of joint program on certified financial market assistance jointly conducted by Indian Institute of Social Welfare and Business Management (IISWBM), Kolkata, with Bombay Stock Exchange Training Institute, Bombay, India. A member of visiting faculty of Institute of International Trade, Calcutta.
The co-author of the book on stock market behaviours in India, published by New Central Book Agency (P) Ltd., Kolkata, also published a considerable number of articles in different Indian and international periodicals.
Selected Publications:
1. Indian Institute of Public Enterprises Research, Allahabad, Vol. 10, No. 18, June, 1995, Revival of Chronically Sick CPSUs of West Bengal : An Attempt and Thereafter.
2. Business Studies, Journal of the Department of Commerce, University of Calcutta, Vol. XVIII, No. 1 & 2, 1995, Industrial Sickness in India: Some Relevant Issues.
3. EIRC News, Vol. 1, No.5, June 15, 2008, Corporate Reporting in the Light of Corporate Governance.
4. EIRC News, Vol. 1, No.7, August 15, 2008, Economics of Good and Bad.