Project On Capital Market Reforms

PROJECT REPORT ON Capital Market Reforms
SUBMITTED IN PARTIAL FULFILLMENT OF Degree of Master of Business Administration
Submitted by:
Under Supervision of: Nitish Dipankar
Department of Management Studies JAMIA HAMDARD NEW DELHI
Capital Market Reforms
TABLE OF CONTENTS
1) Acknowledgement 2) Executive Summary 3) Declaration 4) Bank Introduction a) History b) Business and Strategy 5) Product Details- Saving Accounts 6) Insurance Details- Mutual Funds 7) Research Methodology 8) Project Title- Capital Market Reforms a) Introduction b) Market Structure and Dimensions c) Reforms in Government Securities market d) Recent Initiatives 9) Data Analysis 10) Findings and recommendations 11) Annexure 1 12) Bibliography
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ACKNOWLEDGEMENT
I express my heartiest gratitude to my supervisor Nitish Dipankar for giving me an opportunity to prepare a report on the project assigned to me. Under his guidance I undertook this project, for extending the advice and direction that is required to carry on a study of this nature, and for helping me with the intricate details of the project at every step. Without his support and able guidance, it would have been very difficult to finish this work in the way I have done it.
However, I accept the sole responsibility of any possible errors of omission.
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DECLARATION
I , student of Jamia Hamdard University, hereby declare that the project work entitled Capita Market Reforms has been carried out under the guidance of my supervisor Nitish Dipankar at Standard Chartered Bank, New Delhi. It is an original bonafide work undertaken by me as a part of the course curriculum of M.B.A, FMIT (Jamia Hamdard University) The information provided in the study is authentic to the best of knowledge and the result embodied in this study has not been submitted to any other University or Institute for the ward of degree.
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EXECUTIVE SUMMARY
This project at Standard Chartered Bank was undertaken during the period of 6 Weeks (May 22nd '09 to July 15th 09) as part of my summer training. My Summer Training included the following-
Learning the basic Banking and Financial terms. Process of various products of the bank Ascertaining the matters related to the topic i.e. Capital Market Reforms in India Interacting with the respondents about the questionnaire Acquiring the Insurance related details of the Standard Chartered Bank
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Introduction
The significant transformation of the Capital Market in India is clearly evident from the changes that have occurred in the Stock market. The developments have facilitated greater choice for investors, who have become more discerning and demanding. Currently, the most important factor shaping the world is globalization. The benefits of globalization have been well documented and are being increasingly recognized. Integration of domestic markets with international financial markets has been facilitated by tremendous advancement in information and communications technology. But, such an environment has also meant that a problem in one country can sometimes adversely impact one or more countries instantaneously, even if they are fundamentally strong. There is a growing realization that the ability of countries to conduct business across national borders and the ability to cope with the possible downside risks would depend on the soundness of the Capital market. This has consequently meant the adoption of a strong and transparent, prudential, regulatory, supervisory, technological and institutional framework in the sector on par with international best practices is necessary. All this necessitates a transformation: a transformation in the mindset, a transformation in the business processes and finally, a transformation in knowledge management. This process is not a one shot affair; it needs to be appropriately phased in the least disruptive manner.
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Research Methodology
Research is a process through which we attempt to achieve systematically and with the support of data the answer to a question, the resolution of a problem, or a greater understanding of a phenomenon. This process, which is frequently called research methodology, has eight distinct characteristics: 1. Research originates with a question or problem. 2. Research requires a clear articulation of a goal. 3. Research follows a specific plan of procedure. 4. Research usually divides the principal problem into more manageable sub problems. 5. Research is guided by the specific research problem, question, or hypothesis. 6. Research accepts certain critical assumptions. 7. Research requires the collection and interpretation of data in attempting to resolve the problem that initiated the research. 8. Research is, by its nature, cyclical; or more exactly, helical. Objectives: Objectives of a project tell us why project has been taken under study. It helps us to know more about the topic that is being undertaken and helps us to explore future prospects of that topic. Basically it tells what all have been studied while making the project. To learn about the Reforms in the Indian Capital Market. To analyze the respondents view about the Capital Market and related concepts. To analyze the recent initiatives in Capital Market To analyze the history of Standard chartered bank and its business & strategy.
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Duration of Study: 22nd May 2009 15th July 2009
Place of Study: Standard Chartered Bank New Friends Colony New Delhi
Research Design: Descriptive research is used in this project report in order to know about the responses to various views related to Indian Capital Market. This is the most popular type of research technique, generally used in survey research design and most useful in describing the characteristics of respondents. The methods used were following: Questionnaire method Direct Interaction with the respondents.
Mode Of Data Collection: Primary Data: - The sources of Primary data were questionnaires and personal
interviews. Secondary data: - the sources of secondary data were internet, books and
newspaper articles.
Sample size: 50
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Introduction of the bank

Standard Chartered Bank has deep roots and a long heritage in international banking. It has an extensive history in some of the world's most dynamic and fast-growing markets, such as Asia and the Middle East. No one has a better understanding of the wealth management needs of clients across these markets. Standard Chartered a financial services giant has top credit ratings and a 150-year history in banking, with a long-term commitment and financial investment in the Private Bank. The Standard Chartered Private Bank offers a full range of customized wealth management products and services. It uses a broad architecture approach to investment management to bring to customers some of the worlds leading money managers and financial products. It is a London based bank, currently operational within over 70 nations with more than 1,700 branches and 73,000 strong workforce as of April 2009. Although the bank is located in Britain, still a huge chunk of its revenues originate from the continents of Asia, Africa and Middle East.
Standard Chartered Bank was formed as the merger of two banks viz. The Chartered Bank of India, Australia & China and The Standard Bank of British South Africa. The merger took place in the year 1969. Despite its British base, it has few customers in the United Kingdom and 90% of its profits come from Asia, Africa, and the Middle East. Because the bank's history is entwined with the development of the British Empire its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries
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that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies. It now focuses on consumer, corporate, and institutional banking, and on the provision of treasury servicesareas in which the Group had particular strength and expertise. Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is Temasek Hodings.
History of the bank:

The name Standard Chartered comes from the two original banks from which it was founded and which merged in 1969 The Chartered Bank of India, Australia and China, and The Standard Bank of British South America
The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province of South Africa in 1862 by another Scotsman John Paterson. Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa.
In those early years, both banks prospered. Chartered opened its first branches in Bombay, Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.
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With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, Chartered was well placed to expand and develop its business.
In South Africa, Standard, having established a considerable number of branches, was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London.
Both banks at that time still quite separate companies survived the First World War and the Depression, but were directly affected by the wider conflict of the Second World War in terms of loss of business and closure of branches. There were also longer term effects for both banks as countries in Asia and Africa gained their independence in the 50s and 60s.
Each had acquired other small banks along the way and spread their networks further. In 1969, the banks decided to merge, and to counterbalance their existing network by expanding in Europe and the United States, while continuing their expansion in their traditional markets in Asia and Africa. All appeared to be going well, when in 1986 Lloyds Bank of the United Kingdom made a hostile takeover bid for the Group.
After having defeated the bid, Standard Chartered entered a period of change. It made
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provisions against Third World debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. It also began a series of divestments notably in the United States and South Africa, and entered into a number of asset sales.
Business & Strategy

Listed on both the London Stock Exchange and the Hong Kong Stock Exchange,Standard Chartered PLC is consistently ranked in the top 25 FTSE 100 companies by market capitalization. By combining its global capabilities with deep local knowledge, the bank develops innovative products and services to meet the diverse and ever-changing needs of individual, corporate and institutional customers in some of the world's most exciting and dynamic markets.
Personal Banking
With global network of over 1,750 branches and outlets, it offers personal financial solutions to meet the needs of more than 14 million customers across Asia, Africa and the Middle East.
SME Banking
SME Banking division offers a wide range of products and services to help small and medium-sized enterprises manage the demands of a growing business.
Wholesale Banking
Headquartered in Singapore and London, with on-the-ground expertise that spans the global network, banks Wholesale Banking division provides corporate and institutional
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clients with innovative solutions in trade finance, cash management, securities services, foreign exchange and risk management, capital raising, and corporate finance.
Islamic Banking
Standard Chartered Saadiq's dedicated Islamic Banking team provides comprehensive international banking services and a wide range of Shariah compliant financial products that are based on Islamic values.
Private Banking
Standard Chartered banks Private Bank advisors and investment specialists provide customised solutions to meet the unique needs and aspirations of high net worth clients.
Principles & Values:

At Standard Chartered success is built on teamwork, partnership and the diversity of its people.At the heart of their values lie diversity and inclusion. They are a fundamental part of banks culture, and constitute a long-term priority in its aim to become the world's best international bank. Today it gives employments to 75,000 people, representing 115 nationalities, and one can find 60 nationalities among its 500 most senior leaders. Bank believes that this diversity helps to fuel creativity and innovation, supporting the development of exciting new products and services for our customers worldwide.
Standard chartered Bank stands for:

Strategic intent

The world's best international bank Leading the way in Asia, Africa and the Middle East
Brand promise
Leading by Example to be The Right Partner
Values
Responsive
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Trustworthy International Creative Courageous
Approach
Participation Focusing on attractive, growing markets where bank can leverage its relationships and expertise
Competitive positioning Combining global capability, deep local knowledge and creativity to outperform its competitors
Management Discipline Continuously improving the way it works, balancing the pursuit of growth with firm control of costs and risks Commitment to stakeholders
Customers Passionate about its customers' success, delighting them with the quality of our service
People Helping its people to grow, enabling individuals to make a difference and teams to win
Communities Trusted and caring, dedicated to making a difference
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Investors A distinctive investment delivering outstanding performance and superior returns
Regulators Exemplary governance and ethics wherever bank is standing.
Personal Banking
Arrange of features are included for the customers ranging from accounts to insurances and investments needs. Following are the personal services provided by the Standard Chartered Bank:
Accounts o Term Deposits o Savings Accounts o AxcessPlus Account o Super Value Account o Parivaar Account o No Frills Account o Aasaan Account o 2-in-1 Account o Depository Services o Corporate Salary Account o Current Accounts o Business Plus Account o Enhanced Business Plus Account
Credit Cards
o o o
Choose your Credit Card Emirates Platinum Card Platinum Card
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o o o o o o o o o
Emirates Titanium Card Super Value Titanium Card Gold Card EMI Card Executive Card Classic Card Your Rewards Plus Program Special offers Fraud Protection
Debit & Prepaid Cards

o o o o o
Debit Cards Shop Smart Card Gold Debit Card Prepaid Cards Smart Travel
Loans & Mortgages

o o o o o o o o o
Personal Loans Home Loans Loan Against Securities Home Saver Loan Against Term Deposits Home Saver Plus Smart Credit Overdraft Loan Against Property Calculators
NRI Banking
o o o
Which account is right for me? NRE Account NRO Savings Account
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o o o
FCNR Account Accounts for Returning Indians NRI Service Centers
Exclusive Banking
o o o
Excel Banking Priority Banking Private Banking
Insurance & Investments

o o o
General Insurance Life Insurance Investment Services
Private Banking
Standard Chartered Bank has been building partnerships with generations of clients since it opened its first branches in Shanghai and Calcutta in 1853. It is one of the few financial leaders that combine an extensive global reach with the in-depth, specialized knowledge that comes from a history of being in local markets close to its clients. Today, as one of the worlds leading international banks, it is dedicated to providing unsurpassed client service and is uniquely situated to provide customized solutions to meet all wealth management needs. Standard Chartered Bank has deep roots and a long heritage in international banking. It has an extensive history in some of the world's most dynamic and fast-growing markets, such as Asia and the Middle East. No one has a better understanding of the wealth management needs of clients across these markets. Standard Chartereda financial services gianthas top credit ratings and a 150-year history in banking, with a long-term commitment and financial investment in the Private Bank. The Standard Chartered Private Bank offers a full range of customized wealth management products and services, including those offered by its award-winning
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commercial bank. It uses a broad architecture approach to investment management to bring some of the worlds leading money managers and financial products. Some key facts about Standard Chartered Bank:

Over 150 years in banking Total assets of US$329 billion (as of March 2008) Ranked 56th in size among top 1000 world banks (The Banker, July 2007) 70,000+ employees A+/A3/A+ credit rating (S&P/Moodys/Fitch respectively, as of March 2008) Listed on both London & Hong Kong exchanges Ranks among the top 25 companies in the FTSE-100 Regulated by the UK FSA
SME Banking
With years of banking experience, Standard Chartered Bank is undoubtedly in a strong position to help growing businesses sail through the complexities they may face. As an international bank with offices in more than 50 countries, It provides the global reach and international recognition that the company deserves. SME Banking offers one of the widest range of banking products and services in the market today. Managing a growing business demands most of existing time and energy. Its relationship managers understand customers business requirement and help them manage their business better.
Business Current Accounts

o o
International Trade Account International Trade Account - TEC
Loans
o o o
Business Installment Loan Loan/Overdraft Against Property Term Loan
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Trade & Working Capital Products

o o
Trade & Working Capital Express Trade
Forex Services
o
Forex Services
Others
o o o o
Online tax payment Service charges & fees Schedule an appointment Raise a complaint
Commercial Banking
Standard Chartered has maintained a long local presence, since 1858, with particular emphasis on relationship banking. Significant networks have been established with vendors and financial-related organizations to enable it to offer its customers a comprehensive range of flexible financial services, with special focus on transactional banking products. Supported by state-of-the-art operations, Standard Chartered is proactive in improving every part of our services. Electronic Delivery system has been put in place to ensure that transactions are handled speedily. It has its Cash Product Specialists and dedicated Customer Service Centres to provide its customers with effective solutions. Standard Chartered fully understands the importance of time, convenience and efficiency to the success of your business. With over 140 years of experience in trade finance and an extensive international branch network, Standard Chartered is committed to help customers succeed in every competitive environment.
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Wholesale banking in detail

Whole sale banking includes: Transaction banking Principle finance Financial markets Corporate finance Transaction banking offers a full scope of innovative, customized solutions in cash management, trade finance and securities services. With an extensive branch network and award-winning suite of electronic client access channels it offers a full range of transaction banking solutions to help manage the working capital more efficiently. It provides a wide range of cash management services to corporate and institutional clients worldwide. It helps customers with payments and collections, information management, account services and liquidity management solutions. Standard Chartered has been meeting securities industry participants' needs in the Greater Asia region for over 150 years, serving a discerning client base that comprises leading North American, European and Asian institutions. We count among our clients the world's largest global custodians, broker-dealers, fund managers and institutional investors.
Standard Charterers Principal Finance business has a strong track record of creating value through its investments. The group provides direct investment for growing companies, invests in distressed and high yield assets and also provides advisory services
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to companies in financial distress. The bank has dedicated a team focusing on making investments in real estate across Asia.
Leading the way in Financial markets, Standard Chartered delivers award-winning and innovative solutions to meet clients risk management, financing and investment needs Banks presence in Asia, Africa and the Middle East and active support for the development of its equity infrastructures makes it well placed to help you tap into the significant growth opportunities offered by these emerging markets.It provides a comprehensive range of online solutions tailored to meet the electronic trading needs of its clients.
Standard Charterers Corporate Finance group provides innovative and pioneering solutions for clients, capitalizing on the Banks comprehensive on-the-ground knowledge and strong international perspective to provide customized solutions to meet its clients corporate finance needs, especially in cross-border trade and investment flows. With teams specializing in Mergers & Acquisitions and Leveraged Finance, Standard Chartereds Corporate Advisory group has the expertise, experience and local knowledge to deliver high quality advice and execution on strategic cross-border advisory and leveraged financing transactions.
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Islamic banking is a rapidly growing phenomenon in the global financial markets. Muslims have always shielded away from conventional banking, as it does not conform to their religious tenets. There has always been a demand among Muslims for financial products and services that conform to the Shariah (Islamic law). Based on this demand, a number of banks all over the world have started offering products and services that are in compliance with Shariah. With an estimated size of over USD 250 billion and a growth rate of 15%, Islamic banking has now established itself as a serious business segment in the eyes of financial institutions, businesses, consumers and regulators.
Standard Chartered, with an aim to meet the unique needs of its customer, has setup an Islamic Banking Division. The bank is now offering tailor-made Shariah compliant products to its customers.
Standard Chartered employs 38,000 people in 950 locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. Standard Chartered is one of the worlds most international banks, its employees representing 80 nationalities. Standard Chartered is the largest international bank operating in Pakistan. With a presence of over 150 years in this industry, the bank is
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able to fully leverage its capabilities and product expertise to provide tailor-made solutions for its customers.
Standard Chartered realizes that a segment of their customers wanted products that were shariah compliant, and by introducing these Islamic financing options, they are fulfilling their promise of being responsive to their customer needs. These products have been developed under the guidance of an independent Shariah Supervisory Committee.
Product Details Of The Bank: Saving Accounts
A savings bank account is the most common operating account for individuals and others for non-commercial transactions. A savings account helps people to put through day-today banking transactions besides earning some return on the savings made. Banks usually have ceilings on the total number of transactions permitted in a specific time period. Banks also stipulate certain minimum balance to be maintained in savings accounts. The Savings account is a transaction account.
Interest on the account is determined in accordance with directives of the Reserve Bank of India. The current rate is 3.5% per annum. Interest is calculated on the Minimum Credit Balance between the close of the business on the 10th and the last day of each calendar month. Interest may be credited to the account on a quarterly or half yearly basis.
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Savings account can be opened by the following persons or bodies:

A person in his / her name Two or more persons in their joint names payable to :
o o o
both or all of them or the survivor or survivors of them; or either or any more of them or the survivor or the survivors of them; or former / latter or survivor of a particular person during his lifetime or survivors jointly or survivor
Certain non-profit welfare organizations are also permitted to open Savings bank accounts with banks
Savings / Current accounts can become inactive if you do not make any debit transactions for a continuous period. The duration of this period varies from bank to bank. What a bank asks for while opening an account
Banks are required to know the true identity of the person wanting to open an Account.
Banks require photograph of the person to be kept on record for future identification purpose
Banks have to obtain PAN numbers (issued by Income Tax Dept.) of the account holder at the time of opening of the account
In the absence of PAN number, the customer should give a declaration in the
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prescribed format (Form no.60 or 61) as the case may be.
Standared Chartered Bank has a range of accounts with unique features to offer you quick and convenient banking facility. The range of accounts include- aXcess Plus account , Parivaar account, Super value account, 2-in-1 account, Corporate Salary account, No Frills account and Aasaan account.
Under aXcess Plus account, bank offers variety of channels to access your money such as Free Unlimited Visa ATM transactions, International Debit Card, etc. Under Parivaar account you can tap your familys financial strength while maintaining your individual identity. The unique feature of this account is that you can maintain individual savings accounts with the benefit of clubbing balances in grouped accounts. Super value account gives to a host of free value added services such as Free Bill Pay, Free Inter Bank Funds Transfer, etc. You can link your fixed deposits with a savings or current account under 2-in-1 account. Corporate Salary account is an account for corporates to help them streamline salary payments. No Frills account is an account to offer basic banking facilities. Aasaan account is a no-maintenance, hassle free savings account with basic requirements.
Features of some of the banks Saving Accouunts:

Axcess plus:

FREE Unlimited Visa ATM transactions (Cash withdrawal and balance enquiry) FREE Standard Chartered Bank branch access across the country
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FREE Doorstep Banking FREE Demand Drafts/Pay Orders (drawn at SCB locations) FREE Payable at Par Chequebook International Debit Card Extended Banking Hours
Super Value: Free globally valid Debit-cum-ATM card.
Free Access to 6500 ATMs in India.
Free Doorstep Banking.
Free Payable at Par cheque book/ account statements / DDs Free Bill Pay.
Free Inter Bank Funds Transfer.
Free Foreign Inward Remittance Certificates.
Other benefits of the SuperValue account:

o
Globally valid debit card: Make purchases at over 12 million merchant outlets and withdraw cash at over 810,000 ATMs worldwide using funds from your account
o o
Multicity Banking: Access your account even when you are out of town Enjoy extended Banking hours at all our branches, and Speed Cheque Clearing
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and Metro Clearing facilities.

o o
24-hour branches, 365 day branches available at select locations Phone banking: Available to you 365 days a year on a 24-hour basis in the metros and everyday of the week at other centers
Internet banking: Access and transact on your accounts through the Internet from any part of the world
Free Investment Advisory Services to assist you in investing in a range of mutual funds
Full suite of complimentary banking services including credit cards, loan products and capital market services.
Parivaar:
Family can maintain individual savings accounts with the benefit of clubbing balances in grouped accounts.
Anytime, anywhere access to accounts through ATMs, Phone Banking and Internet banking. Option of Systematic Investment Plan (SIP): A well known long term wealth building tool that allows customers to invest a fixed amount of money every month in specific mutual funds. This comes with a direct debit facility and avoids the need to remember dates and write cheques every month.
Globally valid ATM-cum-debit card can be used at 55,000 merchant outlets in India and 12 million outlets worldwide.
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Aasaan:

No Minimum Balance requirement. Free unlimited access to any SCB branch across the country for Customer-inperson.
Unlimited Free access to Standard Chartered Bank ATM's. Up to 4 free cash withdrawal transactions per month at other domestic VISA ATMs.
Nominal quarterly fee of Rs. 100 (reversed if the Average Balance in the quarter is Rs 10,000 or more).
Recent Alliances and Developments

In 2000, Standard Chartered acquired Grindlays Bank from ANZ Bank, increasing its presence in private banking and further expanding its operations in India and Pakistan. Standard Chartered retained Grindlays' private banking operations in London and Luxembourg and the subsidiary in Jersey, all of which it integrated into its own private bank. This now serves high net worth customers in Hong Kong, Dubai, and Johannesburg under the name Standard Chartered Grindlays Offshore Financial Services. In India, Standard Chartered integrated most of Grindlays' operations, making Standard Chartered the largest foreign bank in the country, despite Standard Chartered having cut some branches and having reduced the staff from 5500 to 3500 people.
On 15 April 2005, the bank acquired Korea First Bank, beating HSBC in the bid. Since then the bank has rebranded the branches as SC First Bank.
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Standard Chartered completed the integration of its Bangkok branch and Standard Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered Bank(Thaiand). Standard Chartered also formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East, and acquired stakes in ACB Vietnam, Travelex, American Express Bank in Bangladesh and Bohai Bank in China. On 9 August 2006 Standard Chartered announced that it had acquired an 81% and shareholding in the Union Bank of Pakistan in a deal ultimately worth $511 million. This deal represented the first acquisition by a foreign firm of a Pakistani bank and the merged bank, Standard Chartered Bank (Pakistan), is now Pakistan's sixth largest bank. On 22 October, 2006 Standard Chartered announced that it has received tenders for more than 51 per cent of the issued share capital of Hsinchu International Bank (Hsinchu), established in 1948 in Hsinchu province in Taiwan. Standard Chartered, which had first entered Taiwan in 1985, acquired majority ownership of the bank, Taiwans seventh largest private sector bank by loans and deposits as at 30 June, 2006. Standard Chartered merged its existing three branches with Hsinchu's 83, and then delisted Hsinchu International Bank, changing the bank's name to Standard Chartered Bank (Taiwan) Limited). Prior to the merger, Hsinchu had suffered extensive losses on defaulted credit card debt.
In 2007, Standard Chartered opened its Private Banking global headquarters in Singapore.
On 23 August, 2007 Standard Chartered entered into an agreement to buy a 49 percent of an Indian brokerage firm (UTI Securities) for $36 million in cash from Securities Trading Corporation of India Ltd., with the option to raise its stake to 75 percent in 2008 and, if both partners agree, to 100 percent by 2010. UTI Securities offers broking, wealth management and investment banking services across 60 Indian cities. On 29 February 2008, Standard Chartered PLC announced it has received all the required approvals leading to the completion of its acquisition of American Express Bank Ltd (AEB) from the American Express Company (AXP). The total cash consideration for the acquisition is US$ 823 million.
Insurance details of the bank: Mutual Funds

Standard Chartered mutual fund is promoted by banking giant Standard Chartered and exclusively focuses on debt schemes. The fund started as ANZ Grindlays Mutual Fund and was later renamed as Standard Chartered Mutual Fund after the takeover of Grindlays Bank by Standard Chartered.
Standard Chartered Bank is a truly global bank with employees representing 80 nationalities. The bank has a strong brand presence in India and is well entrenched in developing markets of Asia Pacific region.
The sponsor of the fund is Standard Chartered Bank. The AMC of the fund is Standard Chartered Asset Management Company Private Limited. The sponsor holds a 75 per cent stake in the company and the balance is held by Atul Choksey of Apcotex. As of Aug
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2006, the fund has assets of over Rs.15,551 crore under management.
Mutual Funds basics: A Mutual Fund is a pool of money that gives small investors access to a well-diversified portfolio of equities, bonds, and other securities. Each shareholder participates in the gain or loss of the fund. Shares are issued and can be redeemed as needed (in the case of an open-ended fund). The fund's net asset value (NAV) is determined each day. Each mutual fund portfolio is invested to match the objective stated in its investment agenda.
An equity fund is one that is invested mainly in company equity through the stock exchange and is exposed to the risk of volatility associated with the equity market. Although this fund is the riskiest within the genre of mutual funds, it is also known to yield the maximum yields and dividends.
A Fixed Income Fund is one that invests in avenues which offer fixed returns over a set tenor. These funds are inherently linked to the general interest rate and are, therefore, unlike the stock market, safe from drastic fluctuation. The capital value is more easily sustainable while the returns are generally modest. However, active fund management can yield returns which are higher than most fixed income avenues in the market and therefore, it is an attractive investment avenue for investors with moderate risk appetites.
A Money Market Fund is one that invests in liquid, short-term avenues which offer
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fixed returns over short periods. These funds are inherently linked to the general interest rate and are, therefore, unlike the stock market, safe from drastic fluctuation. Underlying investment may include securities issued by corporate bodies, spread transactions, reverse-repo transactions, selective exposure in the CFS market, Term Finance Certificates (TFCs) and commercial paper.
Balance funds maintain a mix within equity and fixed income markets. The inclination of this mix will be dictated by the funds strategic intent and mission statement. This fund offers more maneuvering room to its fund managers as they have the option to switch between market types i.e. fixed income avenues and capital markets. Effectively, the risk associated to this category lies somewhere between that of equity funds and fixed income funds and the returns also vacillate correspondingly between the ranges of the two.
Mutual Funds Offered:

JS Investments Limited: JS ABAMCO was incorporated on February 22, 1995 and registered as an investment adviser and an asset management company with the SECP (formerly the Corporate Law Authority) on February 27, 1995 and August 29, 1995 respectively. Last year its legal title changed to JS Investments Limited. SCB offers the following mutual funds from this fund house: Unit Trust of Pakistan (UTP) is the first open-end mutual fund in Pakistan's
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private sector. UTP follows a balanced investment strategy which means that it switches its investments from fixed-income to equity & vice versa depending upon the investment outlook. When the stock market appears volatile, the funds normally switch portfolios to fixed-income & debt based instruments and reverts back to equity when the situation becomes stable. Investment Strategy: UTP focuses on preserving the initial capital while providing maximum diversification, along with liquidity, growth & consistent returns. In order to achieve these, the fund invests in three types of high quality assets. These include:
Shares of companies which are either consistently dividend paying having growth prospects actively traded
Debt instruments with good credit rating Short-term money market instruments
JS - Income Fund (JS - IF) is the second open-end mutual fund launched by JS Investments Limited. JS-IF is a diversified investment program in fixed income securities through a single investment. The fund aims at achieving a high rate of current income consistent with reasonable concern for safety of capital and provides the investors with the convenience to join or leave the fund at their discretion. Investment Strategy: JS-IF will generally invest in assets that pay a fixed rupee amount, e.g. investment grade debt securities, treasury bills, term finance certificates, bank deposits and Government bonds. They are generally not affected by the volatility at the
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Stock Exchanges. The element of risk is low and so is the return.
UTP- Islamic Fund (UTP- ISF) is an open-end Shariah compliant mutual fund managed by JS Investments Limited. The fund was launched in December 2002 with the Central Depository Company as the Trustee and has been given a 5star rating by PACRA. The fund is intended for long term investors who seek high returns with the peace of mind that their money is being managed according to Islamic rules of investing. Investment Strategy: UTP-ISF aims to grow investors capital in the long term in adherence with principles of Shariah compliance as advised by the Shariah Advisory Board (SAB) of this fund while ensuring liquidity. The fund investments are limited to asset classes approved by the Shariah Advisory Board and all companies under investment consideration are regularly screened for Shariah compliance.
UTP- Capital Protected Fund (UTP-CPF) was the first open-end capital protected fund in Pakistan, established under a Trust Deed dated November 27, 2006 between JS Investments Limited as the Management Company and Standard Chartered Bank (Pakistan) Limited as the exclusive distributor. Following the tremendous success of this unique fund, 3 more Capital Protected Funds were launched jointly by JS Investments and SCBPL.
Investment Strategy: A Capital Protected Fund aims at protecting investor capital through the investment structure by placing a significant percentage of the Fund as bank
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deposit(s) or in other return-based fixed income instruments, and uses the remaining funds to gain exposure into equity markets or any other investment instruments permissible by SECP that the Management Company feels would be appropriate to maximize return. The fund has a fixed tenor (e.g. 1 year or 3 years) which is the minimum period of holding for capital protection to be in force.
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Project Title-Capital Market Reforms

Introduction: Capital market reform enables the capital markets to embrace new ideas and techniques affecting the capital market. Capital market liberalization is one such capital market reform that is adopted by various countries to strengthen their economy.
A capital market is a place that handles the buying and selling of the securities. This is the ideal place where both the governments and companies can raise their funds. The capital markets of all the countries have undergone a number of reforms in the history. Economic theories are made and implemented to reform the functionalities of the capital market. The prime objective behind all the policies and reforms was obviously to strengthen the capital market of a particular country as much as possible.
It has been always a big question to the economists whether to allow or not to allow the foreign investments in the country. Packaged with both advantages and disadvantages, the liberalization of the capital markets has always been controversial. In the 1980s and 1990s when the US Treasury and International Monetary Fund (IMF) tried to push worldwide capital-market liberalization, there had been enormous opposition. Economists were not in the support of free and unfettered markets.
Now, when the capitalist countries, developing capitalist countries, underdeveloped countries and a large number of socialist countries have nodded their support to the
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capital market reform and capital market globalization, the global capital market has evolved in a new identity. The concept of capital market is not restricted to the share and bond trading in the developed capitalist countries only but is equally influenced by the capital markets of developing and underdeveloped countries as well.
Now the economic or financial change in one country can affect the capital market of other country in real time. Almost all the countries are now exposed to the inter-country trades and inter-country investments. The use of internet and electronic media has added some more feasibility to the practice. Exchange of information is fast and accurate with internet. Another advantage of this system is that it brings the entire world in a single place. The capital market is one of the industries that enjoy the maximum facility of the internet service.
MARKET STRUCTURE AND DIMENSIONS
The public-sector debt instruments mainly comprise central and state government securities, which account for about 65 percent of the countrys debt market, and publicsector bonds issued by companies in the public sector. Other debt instruments in the market are certificates of deposit and commercial paper in the short-dated sector, and corporate bonds in the medium- to long-dated sector.The debt market is an important source of funding for the corporate sector as well as the government. The borrowing rate of the government determines the risk-free rate in the market and is the benchmark against which all other paper is priced. The size of the Indian debt market is estimated at
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about Rs 4,172 billion, as of 31 March 1998 The development of the debt markets in India has been constrained by the limited number and variety of instruments, lack of liquidity, and dearth of investors. New debt instruments would add depth and volume to a market that today comprises mostly government securities.The main instruments in the Indian debt market are discussed briefly below.
Government of India Securities
Government of India securities (GOI securities), also called dated securities,are mediumto long-term obligations of the government that are issued on its behalf by the central bank, the Reserve Bank of India (RBI),and are registered in the holders name at the Public Debt Office of the RBI. The RBI also acts as the depository and maintains subsidiary general ledger accounts for banks and other select investors such as primary dealers, financial institutions, mutual funds, insurance companies, and provident funds. FIIs have recently been permitted to invest in GOI securities and to repatriate the profits from the investments. Banks, nonbank finance companies (NBFCs),1 and housing finance institutions (HFIs) are required to invest in government securities to satisfy their statutory liquidity reserve (SLR) requirements.
Dated securities usually have a maturity period of two to ten years,and the issue size varies from Rs 20 billion to Rs 50 billion. The outstanding GOI securities as of 31 March 1998, excluding securities issued by public-sector units which carried a central or state government guarantee, amounted to about Rs 2,254 billion. In 19971998, primary
auctions of GOI securities had yields ranging from 11.15 percent to 13.05 percent for securities with a maturity of three to ten years. To boost the retail sector and give greater liquidity to retail investors, the RBI in October 1997 allowed banks to buy GOI securities and thensell them at prevailing market prices immediately after. Previously, there had to be an interval of at least 30 days between the purchase and resale of the securities.
Treasury Bills
Treasury bills (T-bills) are short-term rupee-denominated obligations issued by the RBI on behalf of the GOI. They are issued for maturityperiods of 14 days, 91 days, and 364 days. In addition, the RBI plans to introduce a 28-day T-bill. The typical auction size is Rs 5 billion for the 91-day T-bill, and Rs 200 million to Rs 20 billion for the 364-day Tbill. Outstanding T-bills amounted to about Rs 181 billion as of March 1998,compared with Rs 165 billion in March 1997.Investors in T-bills include banks, primary dealers, financial institutions, mutual funds, corporations, NBFCs, HFIs, state governments, and insurance companies. The new monetary and credit policy for the first half of 19981999 allows FIIs to invest in T-bills. Nonresident Indians (NRIs) and overseas corporate bodies (OCBs) may similarly invest in Tbills,but cannot repatriate the profits. In the second half of 19971998, the RBI announced plans to introduce a uniform price auction for 91-day T-bills, to deal with the problem of winners curse3 and to broaden market participation.
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Sovereign Bonds
India has not yet issued sovereign bonds in the international market. The countrys sovereign rating is based on the ratings assigned to bond and debenture issues of publicsector Indian companies in the international market. Despite the countrys low investment or high noninvestment grade ratings, Indian corporations have generally been able to obtain funds abroad on better terms than what the sovereign ratings might signify.
Some of the advantages of issuing sovereign bonds are:
The government would have less need to borrow in the domestic market. Corporations could use the bonds as a benchmark against which they could price their issues. The bonds would broaden the investor base in the international market sand help mobilize long-term finance for infrastructure projects. The cost of borrowings would be reduced relative to the domestic market.
The drawbacks could, however, outweigh the advantages. For the sovereign bonds to gain credibility in the international market, the government will need to have a sizeable presence in the market and not merely undertake a token borrowing. Its external debt would therefore increase.
Moreover, sovereign bonds are classified as external commercial borrowings (ECBs), on
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which India has set a ceiling. A foreign-currency bond may carry a lower nominal interest rate than a rupee-denominated government security with the same maturity, but the foreign-currency bond also entails an exchange-rate risk. Depending on the exchange rate, the sovereign bond could turn out to be much more expensive for the government than local borrowings.
Public-Sector Undertaking Bonds (PSU Bonds)
These are medium- to long-term obligations issued by public-sector corporations. The total value of outstanding PSU bonds as of March 1998 was Rs 654 billion, including Rs 203 billion in government-guaranteed bonds. Public-sector corporations issue three types of bonds: taxable bonds, tax-free bonds, and government-guaranteed bonds. To allow public-sector units in priority sectors to raise money in the markets at low rates, the government has either guaranteed their bond offerings or made the interest on the bonds tax-free to investors. The PSU can thus raise money from the capital markets at concessional rates. PSU bonds have a maturity period of three to seven years and an issue size of Rs 100 million to Rs 15 billion. The main investors in PSU bonds are banks, cashrich corporations, financial institutions, insurance companies, trusts, FIIs, provident funds, mutual funds, NBFCs, HFIs, and a few individuals. Most PSU bonds are issued through private placement, although public issues are gradually gaining in popularity. Seven public-sector units raised Rs 29 billion through privately placed bonds in 1997 1998; the year before, ten public-sector units raised Rs 33 billion through private placement. In the second half of 19971998, the RBI announced that it would allow
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repurchase agreement (repo) transactions in PSU bonds, held in dematerialized form in a depository, to take place on the recognized exchanges.
Certificates of Deposit
Certificates of deposit (CDs) are short-term, rupee-denominated instruments issued by banks and development finance institutions (DFIs). DFIs issue CDs with a maturity of one to three years. In March 1998, outstanding CDs amounted to Rs 143 billion. To attract more investors in the money market, the RBI, in October 1997, halved the minimum amount that a single investor can invest in CDs, from Rs 1 million to Rs 500,000. The main investors in CDs are DFIs, cash-rich corporations, insurance companies, mutual funds, NBFCs, HFIs, provident funds, and some individuals.FIIs are not permitted to invest in CDs. NRIs may invest in CDs, but the investments are nontransferable and nonrepatriable. Earlier, CDs had a mandatory initial holding period of 30 days during which the instrument was rendered illiquid. This lock-in period was shortened to 15 days in April 1998.
Commercial Paper
Indian corporations finance part of their working capital requirements by issuing these short-term negotiable promissory notes, which are denominated in rupees and are unsecured. Issuers must satisfy RBI guidelines relating to creditworthiness to issue commercial paper (CP), and must have the CP rated by at least one rating agency. The maturity period of CP varies from 91 days to a year. The required minimum issue size is
Rs 2.5 million, but the actual size can vary substantially and averages between Rs 20 million and Rs 100 million. The outstanding amount of CP reached a historic high of Rs 52 billion in January 1998, but then dropped sharply to Rs 15 billion in March 1998. FIIs are not permitted to invest in CP.
Corporate Bonds and Debentures These are medium- to long-term obligations issued by private-sector companies, either through a public issue or more often through private placement, for their medium-term working capital requirements or for project financing. The debentures are usually secured with a first charge on assets of the issuing corporation. On the average, the maturity period of debentures ranges from three to seven years. Bonds and debentures with a maturity beyond 18 months must be rated. Outstanding bonds and debentures in March 1998 totaled an estimated Rs 432 billion. Banks, DFIs, insurance companies, FIIs, mutual funds,NBFCs, and individuals are the main investors. FIIs can purchase only debentures that are listed or that the issuer plans to list. A listing in the stock market can sometimes provide liquidity to bonds and debentures, although these tend to be illiquid in actual practice and even those that are listed are hardly traded in the secondary market. Bonds and debentures that are issued through private placement are often unlisted. Besides the traditional nonconvertible debentures, corporations also issue equity-linked debentures, which are very popular with all classes of investors, especially individuals. A partly convertible equity-linked debenture, as the name implies, is convertible only in part into equity shares, while a fully convertible equity-linked debenture is convertible in its entirety into equity shares. The conversion price and period are usually specified in the
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indenture. Conversion into equity is usually automatic, and call and put options are normally not provided. The coupon rate paid on the debentures depends on their convertibility. Fully convertible debentures carry the lowest coupon rate and nonconvertible debentures the highest coupon rate.
Recently, a variety of instruments such as step-up and step-down bonds, deep-discount bonds, floating-rate bonds, staggered redemption bonds, bullet redemption bonds, and other innovative instruments have been introduced to suit various investor profiles. Deepdiscount bonds, which are long-dated (20- to 25-year) bonds issued by DFIs and some large corporations, have proved to be very popular among individual investors who can expect to earn a considerable amount of money from an affordable investment of only about Rs 5,000. The bonds usually come with call and put options exercisable every five years. Interest is compounded and paid with the principal at maturity.
All corporations that issue bonds or debentures through public issue must set up a debenture redemption reserve (DRR), according to Securities and Exchange Board of India (SEBI) guidelines, and transfer a certain amount to the reserve each year out of retained earnings. The reserve must be funded in equal amounts over the life of the debenture so that when it matures at least 50 percent of its redemption value should be covered by the balance in the DRR. The transfer to the DRR is only a book entry. Although dividend-paying capacity is reduced (the reason for the unpopularity of the measure), the corporation is not restricted in how it chooses to invest the DRR. The transfers therefore continue to be invested in thebusiness of the corporation.
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ISSUANCE OF DEBT SECURITIES
GOI securities have generally been issued through auction in recent years, but have also been issued at preset interest rates from time to time. Government securities do not follow a fixed schedule of issuance; the governments large borrowing program, however, compels it to enter the market frequently. Auction details are announced a few days before the issue date. Investors in the securities must quote the yield per year, and bids up to the RBI cut-off yield are accepted. Every Friday, 91-day T-bills are auctioned for an amount announced in advance by the RBI. Primary dealers and the RBI underwrite the issue and take up whatever is left unsubscribed at the cut-off price decided at the auction. The RBI has announced its intention to move over to uniform price auctions for 91-day T-bills. An auction in 364-day T-bills is held every other Wednesday. Unlike 91day T-bills and government securities, the amounts, until recently, were not announced in advance for 364-day as well as 14-day T-bills.
In April 1998, however, the RBI decided to announce the amounts for competitive bids in all Treasury bill auctions and to keep noncompetitive bids outside the purview of those amounts. T-bill auctions are done in competitive French-style: those who bid at less than or equal to the cut-off yield get allotments at their bid; higher bidders get pro rata allocations. Successful bidders receive their allotments at their bid price and not at the cut-off price. Corporate debentures are issued mostly through private placement and therefore do not have to be rated. The mandates are given to merchant bankers, who are in touch with potential investors. The terms and price of the bonds are fixed by agreement
among the issuer, the merchant banker, and the potential investors. The rating the issuer receives for its debt issuance affects the pricing of the issue.
Private Placement
Large quantities of PSU and corporate bonds have been issued through private placement, which is an invitation to qualified investors to invest. The maximum number of investors in a private placement used to be unlimited but has recently been set at one
hundred. Private placements have emerged in recent years as an important means by which public- and private-sector companies can raise funds. In 19971998, when the market in new issues was generally subdued, banks, financial institutions, and public- and private-sector companies raised Rs 270 billion, or 85.3 percent of total funds raised, through private placement. The comparative figure for the previous year was Rs 150 billion, or 49.3 percent of the total funds raised. Privately placed bonds have emerged as the corporate sectors fundraising instrument of choice. The popularity of private placements can be attributed largely to the lower issuance costs as well as the shorter time required to make an issue, compared with a public issue. Also, private placements can be tailored to the specific needs of large investors. From the issuers point of view, the most important advantage of private placements is that, unlike public issues, they are not strictly regulated. For example, an issuer of a privately placed bond does not have to set up a DRR. On the other hand, movements in the volatile short-term money market can affect
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investor sentiment and pricing in the bond market, particularly private placements, which take at least 15 to 20 days to complete. The book-building or price discovery mechanism has begun to be adopted to get around this problem. The increasing popularity of private placements has made it necessary to deal with the matter of investor protection. Particularly for retail private placement issues, it would be advisable to augment the disclosure requirements in the memorandum of information and ensure greater transparency in the issue documents. In developed markets, the regulatory authorities set the parameters for private placements, including the maximum number of investors who can participate and the criteria for identifying the investors who are qualified to receive the private placement offer. With proper regulations and greater transparency, the private placement market can become an integral and important part of the primary market.
RATING OF DEBT INSTRUMENTS
The Securities and Exchange Board of India (SEBI), the watchdog of the Indian capital markets, has recently announced that credit rating will eventually be mandatory for all debt instruments. As of now, only publicly issued debt instruments with a maturity period of at least 18 months must be rated. The three main rating agencies in India are the Credit Rating Information Services of India Limited (CRISIL), Investment Information and Credit Rating (ICRA), and Credit Analysis and Research Limited (CARE). These rating agencies are backed by the three DFIs in India:
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CRISIL by the Industrial Credit and Information Services of India Limited (ICICI), ICRA by the Industrial Finance Corporation of India (IFCI), and CARE by the Industrial Development Bank of India (IDBI). Therefore, DFI issues must be rated by two agencies, under SEBI regulations, for the sake of impartiality. The SEBI, however, has not yet decided how conflicts in agency ratings should be resolved. SEBI guidelines issued in March 1998 allow corporations with a net capitalization of over Rs 1 billion for the last five years to set up a credit rating agency. International credit-rating agencies that propose to rate Indian debt instruments, including those that have entered into joint ventures with Indian credit-rating companies or hold an equity stake in such companies, must register with the SEBI.Credit-rating agencies are regulated more strictly to ensure that they function effectively, especially in view of the failure of some of them to warn investors of the impending financial crisis.
INVESTORS IN DEBT INSTRUMENTS
Besides the lack of variety in debt instruments, the dearth of investors has also deterred the growth of the debt market. The main investors are commercial banks, insurance companies, provident funds, specialized debt funds, NBFCs, HFIs, and some cash-rich corporations. Commercial banks,NBFCs, and HFIs invest in government securities and other debt instruments to comply with their SLR requirements. The lack of liquidity in the market prevents individuals from participating actively.
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SLR Requirements Banks, NBFCs, and HFIs are required to invest in government securities and other approved debt instruments and securities to comply with the SLR requirements of the RBI. The SLR, which is the minimum level of investment in approved securities, computed daily, is a percentage of the outstanding net demand and time liabilities (NDTL) of banks. For NBFCs and HFIs, SLR is a percentage of their outstanding public deposits.SLR ratios are announced by the RBI together with the monetary and credit policy. Typically, this is done twice a year, in April and October, although recently the guidelines have been revised more frequently.
The SLR for commercial banks peaked at 38.5 percent of their outstanding NDTL in 19921993 but was gradually reduced until October 1997, when the RBI fixed it at 25 percent. Still, most commercial banks hold SLR securities far in excess of their requirementabout 12 percent more than the current SLR of 25 percentto comply with the required capital adequacy and prudential ratios.
Investments in government securities have no risk weight unlike some other fixedincome securities which carry a risk weight of 100 percent. Commercial banks in India are required to maintain an 8 percent capital adequacy ratio.
In the case of NBFCs and HFIs, the SLR applies only to public deposits and not to other term liabilities (as is the case with commercial banks). The SLR for NBFCs was set at
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12.5 percent on 1 April 1998, and will be raised to 15 percent on 1 April 1999. HFIs, on the other hand, must maintain their SLR at 10 percent, divided equally between government securities and bank deposits, versus the previous allocation of 25 percent for government securities and 75 percent for bank deposits.
MARKING TO THE MARKET
Mark-to-the-market requirements are laid down by the RBI for commercial banks and NBFCs, and by the National Housing Bank (NHB) for HFIs. In 19971998, commercial banks were permitted to invest up to 40 percent of their investible funds in a permanent portfolio of government securities, for which no provision for depreciation was required. The remaining 60 percent of their investments were classified as current portfolio which the banks had to value at market prices (mark to the market).
The RBI has, however, increased its mark-to-the-market requirements over the years. In 19981999, commercial banks have to mark to the market at least 70 percent of their investment in government securities as against the previous 60 percent. For nongovernment paper, there are no explicit mark-to-the-market requirements. NBFCs and HFIs must take a different mark-to-the-market approach than the commercial banks. They must classify their investments, both equity and debt, into a permanent portfolio and a current portfolio, but the specific percentages are not prescribed. The classification is made at the time of investment and approved by the board of directors of the company or its authorized representative, taking into account the investment horizon planned by
the NBFC or HFI. If the institution intends to sell within the year, it should classify the investment as current portfolio, but if it intends to hold on to the investment for a longer period, it can classify the investment as permanent portfolio. All current investments must be marked to the market; investments in the permanent portfolio, on the other hand, can be carried on the balance sheet at their original cost. A substantial portion of the government securities portfolio of many commercial banks is made up of lowcoupon rate securities acquired before yields on government securities were freed to market determination. Securities reclassified from permanent to current portfolio must have provision for depreciation, since the acquisition cost of older securities significantly exceeds current market prices. Most of the older commercial banks have adopted the RBIs mark-to the- market requirements, retaining a permanent portfolio of government securities to reduce their provision for depreciation and show higher profits. But some newer private-sector banks have adopted the more transparent practice of marking to the market their entire portfolio of government securities.
TAX PROVISIONS Except for tax-free bonds, which some public-sector units have been permitted to issue, and unlike the dividend paid on equity and preference shares, which is tax-exempt to investors,9 interest on debt instruments is taxable. The Income Tax Act requires the corporation that pays interest on bonds or debentures to deduct the tax at source. The rate of the tax varies from 10 percent to 20 percent depending on whether the interest is being paid to an individual or to a corporation.
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TRADING SYSTEM Because of the limited number of players, deals in the institutional debt market are normally made directly between the parties concerned or through a broker. Banks rely on the telecommunications network to broker deals and keep track of the market. With the setting up of the whole-sale debt market under the National Stock Exchange (NSE) and the requirement to report trades, the system of trading has become more transparent and efficient. Government securities and T-bills are dematerialized insofar as deals are made and settled on a delivery-versus-payment basis through the subsidiary general ledger (SGL) account at the RBI.
REPO MARKETS A repo (short for repurchase agreement) is a contract to sell a security and to buy it back at a fixed price on an agreed future date. Market participants use repos to meet their short-term liquidity needs or reserve requirements. More importantly, the repo market enables the RBI to conduct open-market operations for monetary control. A repo transaction is for a minimum of three days and a maximum of 14days.Currently, only central government securities and all T-bills are eligible for repo, and only banks, primary dealers (PDs), and satellite dealers (SDs) may enter into repo transactions. In December 1997, 19 nonbank entities were allowed to enter into reverse repo transactions.
Repos in GOI securities were banned in mid-1992, following the discovery of a huge fraud in the securities market. Repos resumed on a limited scale between the RBI and banks in December 1992, and interbank repos in some new issues of GOI securities were later permitted to attract investors. Currently, repos are permitted in all GOI securities. In
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the second half of 19971998, the RBI announced that it would allow repos in PSU bonds as soon as the regulations relating to forward contracts are amended.
CLEARING AND DEPOSITORY SYSTEM The passage of the Depositories Act by Parliament in August 1996 paved the way for the establishment of several depositories, which are expected to improve the efficiency of the capital market. The National Securities Depository Limited (NSDL), the first electronic depository for equity and debt securities in India, began operations in October 1996. It is sponsored jointly by IDBI, the Unit Trust of India (UTI), and the NSE. Dematerialization of equity shares is fairly Straight forward since the central government, which imposes stamp duty on the transfer of shares, charges a uniform rate of 0.50 percent of the market value of the shares. Stamp duty on the transfer of bonds and debentures, on the other hand, is a state government issue and is therefore subject to a variety of regimes. For this reason the NSDL has found it difficult to dematerialize these instruments. The RBI has already introduced the delivery-versus-payment system for government securities through the SGL account. There have also been suggestions to dematerialize money-market instruments such as commercial paper and certificates of deposit, as well as all T-bills and GOI securities, to improve clearing and settlement.
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UNDERWRITING OF DEBT INSTRUMENTS The RBI used to pay a commission to primary dealers (PDs) based on their purchases (including development) of government securities in the primary market. Since June 1997, the RBI has been paying them instead an underwriting fee based on the underwriting amount offered by the PDs on a voluntary basis through competitive bidding. Under this scheme, PDs offer to underwrite at least 50 percent of the issue amount. Satellite dealers (SDs) form the second tier in the trading and distribution of government securities. They have recently been allowed to underwrite government securities issues, up to a maximum exposure of twice their net worth in each issue. SDs and PDs are moreover allowed to sub underwrite their commitments.
YIELD CURVE DISTORTIONS The yield curve is distorted at various points. The rates are very low at the short end (91day T-bills), then rise sharply for securities of two-year maturity, and generally flatten after the five-year maturity. Plotting a benchmark yield curve is therefore difficult. Several factors are responsible for the distortions. Although 91-day T-bills are auctioned in a predetermined amount, the RBI participates in the auctions and can control interest rates. Large noncompetitive bidders, such as state governments and provident funds, also contribute to the distortion in the yield curve when they make large bids without naming their price. To deal with this problem, the RBI in April 1998 said that it would announce the amounts for competitive bids in all Tbill auctions and keep noncompetitive bids beyond the purview of such amounts. Also until April 1998, the borrowings of the central government under its Ways and Means Advances (WMA) were linked to the 91-day T-bill rate. In 19971998 these borrowings were 3 percentage points below the 91-day T-bill cut-off price, exerting tremendous downward pressure on the 91-day T-bill rate. In April, the RBI announced that henceforth the WMA would be linked instead to the bank rate.
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The RBI participates as well in primary auctions of GOI securities and can determine the cut-off yield. There is an implicit reluctance to allow the rate for the maximum maturity (ten years) to exceed a stipulated interest rate. Rates for short-term maturities therefore tend to be significantly higher than market. The small number of players in the market results in lack of liquidity and pricing inefficiencies. Investors do not communicate yield expectations among themselves.
Reforms in Government securities market

Institutional Measures Administered interest rates on government securities were replaced by an auction system for price discovery. Automatic monetization of fiscal deficit through the issue of ad hoc Treasury Bills was phased out. Primary Dealers (PD) were introduced as market makers in the government securities market. For ensuring transparency in the trading of government securities, Delivery versus Pay (DvP) settlement system was introduced. Repurchase agreements (repo) were introduced as a tool of short term liquidity adjustment. Subsequently, the Liquidity Adjustment Facility (LAF) was introduced. LAF operates through repo and reverse auctions to set up a corridor for short-term interest rate. LAF has emerged as the tool for both liquidity management and also signaling device for interest rates in the overnight market. Market Stabilizations Scheme (MSS) has been introduced, which has expanded the instruments available to the Reserve Bank for managing the surplus liquidity in the system.
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Increase in Instruments in Government Securities Market

91-day Treasury bill was introduced for managing liquidity and benchmarking. Zero Coupon Bonds, Floating Rate Bonds, Capital Indexed Bonds were issued and exchange traded interest rate futures were introduced. OTC interest rate derivatives like IRS/FRAs were introduced. Enabling Measures Foreign Institutional Investors (FIIs) were allowed to invest in government securities subject to certain limits. Introduction of automated screen-based trading in government securities through Negotiated Dealing System (NDS). Setting up of risk-free payments and settlement system in Government securities through Clearing Corporation of India Limited (CCIL).Phased introduction of Real Time Gross Settlement System (RTGS). Introduction of trading of government securities on stock exchanges for promoting retailing in such securities, permitting non-banks to participate in repo market.
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RECENT REFORMS
The Indian regulatory and supervisory framework of securities market in India has been adequately strengthened through the legislative and administrative measures in the recent past. The regulatory framework for securities market is consistent with the best international benchmarks, such as, standards prescribed by International Organization of Securities Commissions (IOSCO). Recent capital market reforms and an agenda for reforms are given below. Extensive Capital Market Reforms were undertaken during the 1990s encompassing legislative regulatory and institutional reforms. Statutory market regulator, which was created in 1992, was suitably empowered to regulate the collective investment schemes and plantation schemes through an amendment in 1999. Further, the organization strengthening of SEBI and suitable empowerment through compliance and enforcement powers including search and seizure powers were given through an amendment in SEBI Act in 2002. Although dematerialization started in 1997 after the legal foundations for electronic book keeping were provided and depositories created the regulator mandated gradually that trading in most of the stocks take place only in dematerialized form. Till 2001 India was the only sophisticated market having account period settlement alongside the derivatives products. From middle of 2001 uniform rolling settlement and same settlement cycles were prescribed creating a true spot market. After the legal framework for derivatives trading was provided by the amendment of SCRA in 1999 derivatives trading started in a gradual manner with stock index futures in June 2000. Later on options and single stock futures were introduced in 2000-2001 and now Indias derivatives market turnover is more than the cash market and India is one of the largest single stock futures markets in the world.
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Indias risk management systems have always been very modern and effective. The VaR based margining system was introduced in mid 2001 and the risk management systems have withstood huge volatility experienced in May 2003 and May 2004. This included real time exposure monitoring, disablement of broker terminals, VaR based margining etc. India is one of the few countries to have started the screen based trading of government securities in January 2003. In June 2003 the interest rate futures contracts on the screen based trading platform were introduced. India is one of the few countries to have started the Straight through Processing (STP), which will completely automate the process of order flow and clearing and settlement on the stock exchanges. RBI has introduced the Real Time Gross Settlement system (RTGS) in 2004 on experimental basis. RTGS will allow real delivery v/s. payment which is the international norm recognized by BIS and IOSCO. To improve the governance mechanism of stock exchanges by mandating demutualization and corporatization of stock exchanges and to protect the interest of investors in securities market the Securities Laws (Amendment) Ordinance was promulgated on 12th October 2004. The Ordinance has since been replaced by a Bill.
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Recent initiatives
Corporation and Demutualization of Stock Exchanges
Out of the 23 erstwhile stock exchanges, 18 have since been corporatized and demutualised in 2007-08. One stock exchange, i.e. Hyderabad Stock Exchange, failed to demutualise by the due date and has therefore been de-recognized. Saurashtra Kutch Stock exchange, Mangalore Stock exchange and Magadh Stock exchange have been derecognized for various irregularities/non compliances. As regards Coimbatore Stock Exchange which had sought voluntary withdrawal of recognition, the matter is subjudice.
Corporate Bond Markets The Government had set up a High-Level Expert Committee on Corporate Bonds and Securitisation (Patil Committee) to look in to legal, regulatory, tax and market design issues in the development of the corporate bond market. The Committee submitted its report to the Government in December, 2005. The Budget of 200607 announced that the Government has accepted the recommendations of the Report and that steps would be taken to create a single, unified exchange-traded market for corporate bonds. The measures already taken in respect of implementation of the recommendations of the Patil Committee include: - The Securities Contracts (Regulation) Act, 1956 has been amended to include securitized instruments within the ambit of "securities".
- The RBI Act has been amended to empower RBI to develop and regulate market for Repos in corporate bonds.
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- The limit of FII Investment in corporate debt has been increased from US$ 0.5 billion to US$ 1.5 billion. - The trade reporting platform for corporate bonds has been operationalised since 1st January, 2007. - The trading platforms for corporate bonds at the major exchanges has been operationalized from July 1, 2007.
Securities Contracts (Regulation) Amendment Act, 2007 include
The Securities Contracts Regulation Act, 1956 has been amended to
securitization instruments under the definition of "securities"and provide for disclosure based regulation for issue of the securitized instruments and the procedure thereof. This has been done keepingin view that there is considerable potential in the securities market for the certificates or instruments under securitization transactions. The development of the securitized debt market is critical for meeting the humungous requirements of the infrastructure sector, particularlyhousing sector, in the country. Replication of the securities markets framework for these instruments would facilitate trading on stock exchanges and in turn help development of the market in terms of depth and liquidity.
PAN as the sole identification number
PAN has been made the sole identification number for all transactions in securities market. This is an investor friendly measure as he does not have to maintain different identification numbers for different kinds of transactions/different segments in financial markets. Further, identification through PAN would help the authorities in enforcement action.
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Equity Finance for the Small and Medium Enterprises (SMEs)
SMEs in India have traditionally relied on debt financing from banks and non-bank financial institutions. In order to develop the equity market for SMEs, SEBI has decided to create a separate exchange for the SMEs. It has decided that, to begin with there should be a single exchange for the SME sector for around 2-3 years to enable successful development of the market for SMEs.
IPO grading SEBI has made it compulsory for companies coming out with IPOs of equity shares to get their IPOs graded by at least one credit rating agency registered with SEBI from May 1, 2007. This measure is intended to provide the investor with an informed and objective opinion expressed by a professional rating agency after analyzing factors like business and financial prospects, management quality and corporate governance practices etc. Till January 2008 45 IPOs have been graded by credit rating agencies.
Permitting Indian mutual funds to invest in overseas securities SEBI has fixed the aggregate ceiling for overseas investments at US $ 5 billion. Within the overall limit of US $ 5 billion, mutual funds can make overseas investments subject to a maximum of US $300 million per mutual fund. Further different regulations that allow individuals and Indian mutual funds to invest in overseas securities by permitting individuals to invest through Indian mutual funds has been converged.
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New derivative products Mini derivative contract on Index (Sensex and Nifty) having a minimum contract size of Rs. 1 lakh have been introduced. It has been found that globally overall market liquidity and participation generally increases with introduction of mini contracts. Since January 11, 2008 SEBI has also allowed trading on options contracts on indices and stocks with a longer life/tenure of upto five years. These contracts are expected to provide liquidity at the longer end of the market. Since January 15, 2008 SEBI has permitted introduction of volatility index on futures and options contracts. An openly available and quoted measure of market volatility in the form of an index will help market participants.
Short selling In pursuance to budget announcement, SEBI has issued a circular on 20th December, 2007 to permit short selling by institutional investors and securities lending and borrowing to support settlement of short sales.
1.
Investment options for Navaratna and Miniratna Public Sector Enterprises
The Navaratna and Miniratna Public Sector Enterprises have been allowed to invest in public sector mutual funds subject to the condition that they would not invest more than 30% of the available surplus funds in equity mutual funds and the Boards of PSEs would decide the guidelines, procedures and management control systems for such investment in consultation with their administrative Ministries.
Investor Protection and Education Fund (IPEF)
SEBI has set up the Investor Protection and Education Fund (IPEF) with the purpose of investor education and related activities. SEBI hascontributed a sum of Rs.10 crore
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toward the initial corpus of the IPEF from the SEBI General Fund. In addition following amounts will also be credited to the IPEF namely: (i) Grants and donations given to IPEF by the Central Government, State Governments or any institution approved by SEBI for the purpose of the IPEF; (ii) Interest or other income received out of the investments made from the IPEF; and (iii) Such other amount that SEBI may specify in the interests of the investors.
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Result And Analysis of The Survey:

Based on the questionnaire here is a systematic analysis of the opinions of the respondents. 1) Do you have any knowledge about capital market? Bar chart showing the number of respondents who are aware of the Capital marketAccording to Age:
The line graph shows that young people are more aware of the capital market. The age group of 20-30years has 20 positive answer, whereas it decrease to 06 in the age group of 30-40years,next it increases to 08 in age group of 40-50years.
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Bar chart showing the number of respondents who are aware of the Capital marketAccording To Salary:
18
4 2
Salary group of Rs. 20,000-30,000 are more aware of the capital market, then comes the Rs. 30,000-40,000 earners who show there interest in capital market. Rs. 40,000-50,000 have less interest here might be they take help of brokers if needed. Below Rs. 20,000 people are still having average knowledge of the same.
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Pie Chart showing the percentage of people aware, not aware, and partly aware of the Capital market:
Awareness about Capital Market: % of people aware Partly Aware % of people not aware
18%
16% 66%
66% of the respondents are aware of the Capital Market,18% of them are partly aware and only 185 of the respondents are not aware of it. Thus it can be said that a prominent number of population knows about Capital market.
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2) Capital Market Reforms should be related to. (Disclosure, pricing or both)
Analysis for estimating the number of people responding in favor of both Disclosure and pricing-According to Salary:
The Salary group of 20,000-30,000 says the maximum number of both option that means according to them reforms took place in both Disclosure and pricing. 40,000-50,000 salary group is not seemingly in favor of the opinion. Rests two are partially in favor of the same
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Graph showing number of respondents who replied reforms held in Disclosure According to Salary:
The comparatively below salary group of people have more interest and information about capital market as they are supposed to be the major part of the population. In terms of reforms they are in favor of disclosure also.
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Graph showing number of respondents who replied reforms held in Disclosure According to Salary:
Pricing is also favored by 20,000-30,000 salaried people, they are the main target of the survey because large number of population is comprised of this group.
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Pie Chart showing the percentage of responses of each of the three options:
Capital Market Reforms:

Disclosure % Pricing % Both %
26% 50%
24%
The survey says it should be in both the disclosure of terms and conditions and pricing of debt and equities. The respondents answer in favor of both that is 50% is maximum.
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3) Market Infrastructure is one of the prerequisite for the flow of Information and Trade Number of people having a strong view on availability of Market Infrastructure According to age:
Age group of 20-30 is rational and is strongly in favor of about sound market Infrastructure for the flow of information and trade. Next in line is age group 40 -50 and the last is 30 40 age group that gives minimum favors in regards to the same.
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Number of people having just agreeing view on availability of Market Infrastructure According to age:
Again 20-30 age group people agree to the fact that market infrastructure is needed,30-40 & 40-50 age groups are comparatively less in favor.
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Number of people disagreeing on the view that a sound Market Infrastructure is necessary for flow of information and trade According to age:
Age group of 20 30 Years is more aware of the fact that Market Infrastructure is prerequisite for flow of information and trade or say younger generation is quite rational about the view.
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Pie chart showing the three different opinions of the respondents regarding the availability of sound Market Infrastructure for flow of information and trade:
Market Infrastructure:
Strongly Agree % Agree % Disagree %
11%
35%
54%
The survey shows that market infrastructure is one of the prerequisite of flow of information and trade, as maximum number of respondent strongly agree to the fact.
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4) Does India has a Nation Wide Integrated market?
Number of respondents strongly agreeing on the view of a nationwide market existence in India According to occupation:
Only 3 of the Government employees and 3 of the private employees strongly agree to the opinion on Nation Wide Market existing in India.
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Number of respondents agreeing on the view of a nationwide market existence in India According to occupation:
Only private employees are in favor of the thing that India has Nation Wide Capital Market.
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Pie Chart showing percentage of different opinions regarding the availability of nationwide integrated Capital market in India:
Nation Wide Integrated Market Exists:

Agree % Disagree % Strongly Agree %
12%
22%
66%
Respondent have not strongly agreed to the fact, they just agree in large number that means still there is greater need of Market integration in India or say a wide spread market is to be there.
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6) Where do you prefer to invest in Stock market or in Banks? Opinions about investing excusively in stock market According to salary:
Higher income group people are more inclined to invest in stock market, as the graph shows Income group of Rs.30,000-40,000 invest more in stock market however opinion changes with further rise in income.
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Opinions about investing excusively in stock market According to salary:
Less income groups plan to invest in banks exclusively as compared to higher income group
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Pie Chart showing percentage of different opinions regarding the preference of investment either in stock market or in bank or in both of them:
Preference in Investment:
Bank % Both % Stock Market %
32%
34%
34%
Equal number of people invest in Bank and both (Stock Market & Bank),i.e.34%, some figure less that is 32% invest in Stock Market.
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7) Free Pricing of Equities should be there or not?
Number of respondents agreeing on the view of Free Equity Pricing According to occupation:
Private employees are largely in favor of free equity pricing, as compared to the government employees. Businessmen do not prefer this option.
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Number of respondents agreeing on the view of Free Equity Pricing According to Salary:
16 14 12 10 8 6 4 2 0
Income group of Rs. 20,000-30,000 are preferring the idea of free equity Pricing, rest of the groups are not in favor.
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Pie Chart showing percentage of different opinions regarding the free pricing of equities:
Free Equity Pricing:

Yes % No % Can't say %
22%
52% 26%
52% of the respondents voted for Free Equity pricing,22% are unknown or cant give any opinion. And 26% are not in favor of the same.
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8) Should there be any kind of regulations on brokers? Number of respondents agreeing on the view of putting regulations on brokers According to occupation:
Most of the respondents are in favor of some kind of regulations on brokers. Private employees are more agreeing on the point as compared to the rest.
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Number of respondents agreeing on the view of putting regulations on brokers According to salary:
Salary group of below Rs.20, 000 are showing positive response i.e. they believe in regulation on brokers, same with the next two groups, Rs.40,000-50,000 group is less interested in the same.
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Pie Chart showing percentage of different opinions regarding the regulations on brokers:
Regulation on Brokers:
Strongly agree % Agree % Disagree %
22% 34%
44%
Large number of population favors regulations on brokers.
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9) There should be detailed disclosure of terms and conditions on mutual funds or not?
Number of respondents strongly agreeing on the view of disclosing all the terms and conditions on Mutual funds before hand According to occupation:
All the respondents strongly agree to the point that there should be disclosure of terms and conditions of mutual funds. Since private employees are more in the population there opinion is greater.
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Number of respondents strongly agreeing on the view of disclosing all the terms and conditions on Mutual funds before handAccording to salary:
All the income group favor the fact, Rs.20,000-30,000 supports more also this group exists more so as their opinion, other groups like below 20,000 & Rs.30,000-40,000 also vote for the disclosure.
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Pie Chart showing percentage of different opinions regarding the disclosure of all the terms and conditions of Mutual funds before hand:
Disclosure:
Strongly Agree % Agree %
0%
Disagree %
38%
62%
The result shows that major number of respondents prefers the point of disclosure.
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10) What can be the households share in Mutual funds
Bar chart showing the opinions regarding households share in mutual fundsAccording to occupation:
Declining-8%
Govt.employee
Business man
Private employee
Small number of government employees i.e.2 say the share is declining at employees have the same opinion but with greater percentage.
8%.Private
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Bar chart showing the opinions regarding households share in mutual fundsAccording to salary:
Income group of 20,000-30,000 again have larger share of response i.e. declining at 8%.Below 20,000 comes next in line. The rest have their opinions.
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Pie Chart showing percentage of different opinions regarding house holds share in Mutual funds:
House hold share in Mutual Funds:

Can't say % declining-8% % Increasing-8% %
2% 44% 54%
The survey shows that 54% of the respondents were unaware of the point, however it can be judged as declining at 8% as large number of them i.e.44% have said so and only 2% have different opinion.
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10) Global effect is one of the leading factor that has greater impact on Stock market?
Bar chart showing the number of respondents strongly agreeing to the fact that global scenario affects the stock market - According to occupation:
Govt.employee
Business man
Private employee
Private employees vent their positive response to a greater degree thus according to them they strongly agree to the fact that global scenarios affect the functioning of the Stock Market. Others have also the response but at less frequency.
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Bar chart showing the number of respondents only agreeing to the fact that global scenario affects the stock market - According to occupation:
Govt.employee
Business man
Private employee
Government employees and private employees favor the point, business men are neutral of the view.
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Pie Chart showing percentage of different opinions regarding the fact that globa scenario affects stock market :
Global Scenario Effects Stock Market:

Strongly agree % Agree %
0%
Disagree %
44% 56%
56% of the respondents are in strongly supporting the view and 44% of them are just agreeing with the concept, it means global scenario do effects.
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Findings and recommendations: Following are some of the point that has been found out by the analysis. It can be said that a prominent number of population knows about Capital market. The survey says reforms should be in both the disclosure of terms and conditions and pricing of debt and equities. Market infrastructure is one of the prerequisite of flow of information and trade Still there is greater need of Market integration in India. Equal number of people invest in Bank and both (Stock Market & Bank), i.e.34%, some figure less that is 32% invest in Stock Market. 52% of the respondents voted for Free Equity pricing. Large number of population favors regulations on brokers. Major number of respondents prefers the point of disclosure. 56% of the respondents are in strongly supporting the view and 44% of them are just agreeing with the concept, it means global scenario do effects. Share of house hold in Mutual fund is declining at rate of 8%
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Annexure 1 QUESTIONNAIRE Name: Designation - Govt. Employee Salary- 20,000 & below 40,000 to 50,000 Age- 20 to 30 30 to 40 40 to 50 Businessman Private Employee 30, 000 to 40,000
20,000 to 30,000
1) Do you have any knowledge about the current capital market? a) Yes b) No c) Partly
2) Initially capital market reforms were related to a) Disclosure b) pricing c) Cant say
3) Market infrastructure is one of the prerequisite for flow of information and trading a) Strongly disagree b) Strongly agree c) Agree d) Disagree
4) Does India has a nationwide integrated market? a) Strongly disagree b) Strongly agree c) Agree d) Disagree
5) Where do you prefer to invest in stock market or in banks? a) Banks b) Stock market c) Both of them
6) Free pricing of equities should be there or not? a) Yes b) No c) Cant say
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7) Should there be any kind of regulations on brokers? a) Strongly disagree b) Strongly agree c) Agree d) Disagree
8) There should be detailed disclosure of terms and conditions on mutual funds or not? a) Strongly disagree b) Strongly agree c) Agree 9) What is the households share in mutual funds? a) Increasing-8% b) Constant-10% c) Declining-8 d) Cant say d) Disagree
10) Global effect is one of the leading factor that has greater impact on stock Market a) Strongly disagree b) Strongly agree c) Agree d) Disagree
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BIBLIOGRAPHY
Internet Consultation with the supervisor Interaction with respondents News Paper
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PROJECT REPORT ON Capital Market Reforms

SUBMITTED IN PARTIAL FULFILLMENT OF Degree of Master of Business Administration

Under Supervision of: Nitish Dipankar

Department of Management Studies JAMIA HAMDARD NEW DELHI

Capital Market Reforms

Capital Market Reforms

However, I accept the sole responsibility of any possible errors of omission.

Capital Market Reforms

Capital Market Reforms

Capital Market Reforms

Capital Market Reforms

Capital Market Reforms

Duration of Study: 22nd May 2009 15th July 2009

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Introduction of the bank

Capital Market Reforms

History of the bank:

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Capital Market Reforms

Business & Strategy

Capital Market Reforms

Principles & Values:

Standard chartered Bank stands for:

Leading by Example to be The Right Partner

Capital Market Reforms

Trustworthy International Creative Courageous

Communities Trusted and caring, dedicated to making a difference

Capital Market Reforms

Investors A distinctive investment delivering outstanding performance and superior returns

Regulators Exemplary governance and ethics wherever bank is standing.

Choose your Credit Card Emirates Platinum Card Platinum Card

Capital Market Reforms

Debit & Prepaid Cards

Loans & Mortgages

Capital Market Reforms

FCNR Account Accounts for Returning Indians NRI Service Centers

Excel Banking Priority Banking Private Banking

Insurance & Investments

General Insurance Life Insurance Investment Services

Capital Market Reforms

Business Current Accounts

International Trade Account International Trade Account - TEC

Business Installment Loan Loan/Overdraft Against Property Term Loan

Capital Market Reforms

Trade & Working Capital Products

Trade & Working Capital Express Trade

Capital Market Reforms

Wholesale banking in detail

Capital Market Reforms

Capital Market Reforms

Capital Market Reforms

Product Details Of The Bank: Saving Accounts

Capital Market Reforms

Savings account can be opened by the following persons or bodies:

Capital Market Reforms

prescribed format (Form no.60 or 61) as the case may be.

Features of some of the banks Saving Accouunts:

Capital Market Reforms

Super Value: Free globally valid Debit-cum-ATM card.