2 Dr. K. RAMAKRISHNA REDDY es cass «$5389 MA. MPH PRO. © OFF gs | 55367 SK inatiute of Management FAX: OBESE 5524 ANANTAPUR = 18003. AP. Now, Saikisnatiya Unversity peri? +3+1998 Dear Sri, S. Padmanabhan, ‘Thank you for sending a full paper entitled "MANAGING POLITICAL RISK IN STOCK MARKET, ‘The Seminar Conmictee is pleased to inform that the paper has been approved for presentation. We will reimburse your travel expenses (II Class train fare) by shortest route, Please inform us your travel plans so as to receive you at Anantapur, If you are travelling by Madras-Anantapur bus, please get down at the University bus stop, Looking forward to your arrival at S.K. University. Sincerely, ees kRISHNA REDDY) DIRECTOR ~ NATIONAL SEMINARey This paper titled ‘Managing Political Risk in Stock Market” is submitted for the National seminar RISK MANAGEMENT AS A MODERN WELFARE MEASURE IN INDIA. in the area FINANCE AND BANKING to beheld on 21-22 Mareh, 1998 at Sri Krishnadevaraya Institute of Management S.K University, Anantapur (AP) by S.PADMANABAN B.E., M.B.A., ASSISTANT PROFESSOR MANAGEMENT STUDIES CRESCENT ENGINEERING COLLEGE CHENNAI-48 FAX: (044) 2376520y ABSTRACT ‘Political risk can be defined as the exposure to a change in value of ‘an investment or cash position resultant upon government action. The stock, amarket today is more sensitive and reactive to politcal events and changes Jn potitical environment. This paper stresses the need to measure the political risk associated with equity investments and suggest methods to reduce the effect of political risk on the stock market. The types of risks, (heir measurement and management are discussed in detail with special ‘eterence to the political risk im terms of politcal evems ma polines: actions. The impact of political risk on the stock prices are analyzed and suggestions are made to reduce the effect on the stock market.