(Annual Report) Rules, 1994, Notifi Ed in Offi Cial Gaze E on April 7, 1994
Total Page:16
File Type:pdf, Size:1020Kb
This Report is in conformity with the format as per the Securities and Exchange Board of India (Annual Report) Rules, 1994, notifi ed in Offi cial Gaze e on April 7, 1994. 23 23rd MEMBERS OF THE BOARD (As on March 31, 2011) U K SINHA CHAIRMAN Members appointed under Section 4(1)(d) of the SEBI Act, 1992 (15 of 1992) M S SAHOO WHOLE TIME MEMBER Dr. K M ABRAHAM WHOLE TIME MEMBER PRASHANT SARAN WHOLE TIME MEMBER V K JAIRATH Retd. Principal Secretary (Industry) Government of Maharashtra Mumbai T V MOHANDAS PAI Director Infosys Technologies Limited Bangalore Members nominated under Section 4(1)(b) of the SEBI Act, 1992 (15 of 1992) D K MITTAL Secretary Ministry of Corporate Aff airs Government of India Dr. THOMAS MATHEW Joint Secretary Ministry of Finance Department of Economic Aff airs Government of India Member nominated under Section 4(1)(c) of the SEBI Act, 1992 (15 of 1992) ANAND SINHA Deputy Governor Reserve Bank of India MEMBERS OF THE SEBI BOARD (As on March 31, 2011) U K SINHA Chairman M S SAHOO Dr. K M ABRAHAM PRASHANT SARAN V K JAIRATH Whole Time Member Whole Time Member Whole Time Member Retd. Principal Secretary (Industry) Government of Maharashtra T V MOHANDAS PAI D K MITTAL Dr. THOMAS MATHEW ANAND SINHA Director Secretary Joint Secretary Deputy Governor Infosys Technologies Ministry of Corporate Ministry of Finance Reserve Bank of India Limited Aff airs Department of Economic Bangalore Government of India Aff airs Government of India CHAIRMAN, WHOLE TIME MEMBERS AND EXECUTIVE DIRECTORS Le to Right : Si ing : Shri Prashant Saran, Whole Time Member; Shri M S Sahoo, Whole Time Member; Shri U K Sinha, Chairman; Dr. K M Abraham, Whole Time Member. Standing : Dr. K N Vaidyanathan, Executive Director; Dr. Pradnya Saravade, Executive Director; Shri P K Nagpal, Executive Director; Smt. Usha Narayanan, Executive Director; Shri Ananta Barua, Executive Director; Shri J Ranganayakulu , Executive Director; Shri J N Gupta, Executive Director. CONTENTS Page No. List of Boxes ...............................................................................................................................................vi List of Tables ............................................................................................................................................ vii List of Charts .............................................................................................................................................xi List of Abbreviations ..............................................................................................................................xii PART ONE: POLICIES AND PROGRAMMES 1. GENERAL MACRO-ECONOMIC ENVIRONMENT ..............................................................1 2. REVIEW OF POLICIES AND PROGRAMMES ........................................................................5 I. Primary Securities Market .....................................................................................................6 II. Secondary Securities Market...............................................................................................11 III. Corporate Debt Market ........................................................................................................20 IV. Mutual Funds .......................................................................................................................20 V. Portfolio Managers ...............................................................................................................22 VI. Foreign Institutional Investors ..........................................................................................22 VII. Takeovers ..............................................................................................................................24 VIII. Surveillance ...........................................................................................................................25 IX. Investor Assistance and Education ...................................................................................28 X. Retrospect and Prospects ...................................................................................................29 PART TWO: REVIEW OF TRENDS AND OPERATIONS 1. PRIMARY SECURITIES MARKET ............................................................................................31 I. Resource Mobilisation .........................................................................................................31 II. Sector-wise Resource Mobilisation ...................................................................................33 III. Size-wise Resource Mobilisation .......................................................................................34 IV. Industry-wise Resource Mobilisation ...............................................................................36 2. SECONDARY SECURITIES MARKET ....................................................................................36 I. Equity Market in India.........................................................................................................36 II. Performance of Sectoral Indices ........................................................................................39 III. Turnover in the Indian Stock Market ...............................................................................42 IV. Market Capitalisation .........................................................................................................44 V. Stock Market Indicators ......................................................................................................47 VI. Volatility in Stock Markets .................................................................................................49 VII. Trading Frequency ...............................................................................................................50 VIII. Activities of Stock Exchanges ............................................................................................53 i CONTENTS Page No. IX. Dematerialisation ................................................................................................................55 X. Derivatives Market in India ...............................................................................................57 3. TRENDS IN THE BOND MARKET ...........................................................................................64 I. Corporate Bond Market .......................................................................................................64 II. Wholesale Debt Market ......................................................................................................67 4. MUTUAL FUNDS ..........................................................................................................................68 5. FOREIGN INSTITUTIONAL INVESTMENT ........................................................................74 PART THREE: REGULATION OF SECURITIES MARKET 1. INTERMEDIARIES ......................................................................................................................81 I. Streamlining of Registration Process of Intermediaries .................................................81 II. Registered Intermediaries Other than Stock Brokers and Sub-brokers........................81 III. Registration of Stock Brokers .............................................................................................83 IV. Registration of Sub-brokers ...............................................................................................86 V. Recognition of Stock Exchanges ........................................................................................87 VI. Registration of Foreign Institutional Investors and Custodians of Securities .............88 VII. Registration of Collective Investment Schemes ..............................................................88 VIII. Registration of Mutual Funds ............................................................................................89 IX. Registration of Venture Capital Funds .............................................................................89 X. Fees and Other Charges ......................................................................................................89 2. CORPORATE RESTRUCTURING .............................................................................................90 I. Substantial Acquisition of Shares and Takeovers ............................................................90 II. Buy-back ...............................................................................................................................91 3. SUPERVISION ..............................................................................................................................92 I. Inspection of Market Intermediaries ................................................................................92 II. Inspection of Stock Exchanges ...........................................................................................93 III. Follow-up Inspection Reports ............................................................................................94 4. SURVEILLANCE ...........................................................................................................................94 I. Mechanism of Market Surveillance ...................................................................................94 II. Surveillance Actions ............................................................................................................95