Important Points for IC 89 - Management Accounting Exam
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Important functions of stock exchange/secondary market: Stock exchange a mirror of economy, Pricing of securities, Liquidity, Safety of security transactions, Contributes to economic growth, Encourging and educating investors, Better allocation of capital.
The Bombay Stock Exchange Ltd. Was established in 1875. BSE Ltd. Is one of Asias fastest stock exchanges. The Bombay stock exchange is the oldest exchange in Asia.
Following are the main players in the Capital Market: Financial institutions, Commercial Banks, Corporates, Retail investors, Governments, Insurance companies, Mutual funds, Public Sector undertaking, Non-banking financial companies, Provident funds and pension funds and others.
SEBI functions: Regulation of Securities market, Regulations of Fis, Regulation of Collective investment scheme, Education & Training, Prohibition of Insider trading, Prohibition of Unfair trade practices, Regulation M&A, Registration of FII, Registration & Regulation of SEs, Conducting Research.
With the major reforms started Indian economy and especially in financial system, the Government of India has taken a plethora of policy initiatives for Indian companies to raise funds from International market in various forms and ways such as: FDI(Foreign Direct Investment), FCCB( Foreign Currency Convertible Bonds), FCEB ( Foreign Currency Exchangeable Bonds) etc.
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