Securities Market Infrastructure

Securities Market Infrastructure

Enablers

Government
Giving the right direction to the market, enacting market friendly laws.

Regulators
Enabling structures to be put in place, facilitating a vibrant market.

Exchanges
Creating infrastructure for trading.

Depositories
Creating infrastructure for settlement.

Banks
Enablers for movement of funds

Market Intermediaries
Building infrastructure across the country.

Securities Market Infrastructure

Progress - Equity

Screen Based Trading

Dematerialization
NSE one of the largest exchanges
Stock Futures largest in world
T+2 Rolling settlement
STP for institutional trades.
Book building method of IPOs

Securities Market Infrastructure

Progress - Equity
Market Capitalisation US $300 bn
FII investment US $ 30 bn against US $ 11
bn in 2000.
FII registered with SEBI more than 500.
Market Capitalisation to GDP is 50 percent
Daily market turnover about Rs 20,000
crores against Rs 3,000 crores in 19992000.

Securities Market Infrastructure

Progress - Debt
Negotiated Dealing System for government
securities.
CCIL for Clearing and Settlement
Dematerialization
Development of CBLO market
Interbank interest rate Swap market active

Securities Market Infrastructure

Challenges Ahead
IPO market to grow over Rs 100,000 crores from
Rs 30,000 crores per annum.
Secondary market turnover triple to Rs 50,000
crores per day.
Number of daily trades to move from 3 million to
8-10 million per day.
Debt market turnover to increase manifold
Mutual funds AUM grow to Rs 500,000 crores
from Rs 145,000 crores.

Securities Market Infrastructure

What we need to do IPO

Eliminate multi-stage reconciliation in IPO

Application forms to be made simpler
Strengthening of registrar
Faster transfer of funds at retail level

Securities Market Infrastructure

What we need to do Secondary
Investment in IT and networking to handle high
volumes
Increasing reach of broadband
Stock lending and borrowing to be implemented
Margin trading to be made investor friendly
Aggressive roll out of RTGS

Securities Market Infrastructure

What we need to do Debt
Screen based trading
CCIL to settle corporate debt
Develop interest rate derivatives futures and
options

Securities Market Infrastructure

What we need to do Commodities
Derivatives market
Introduce trading in options
Banks subsidiaries to participate as intermediaries
and principal
Rolling out of warehouses pan India basis
Common regulator for Equity and Commodity
Allow FII participation

Securities Market Infrastructure

Regulatory
Better coordination and integration between
various regulators
Framework for rolling out of structured products
Capital Guarantee Equity linked bonds
Real estate Mutual Funds
Redesign regulation for follow on IPOs to prevent
EXPORT OF MARKET

Thank You