literature review of indian stock market

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Literature review of indian stock market diabetes paper research

Literature review of indian stock market

Devereux, M. Dornbusch, R. In: Dornbusch, R. Korea Institute of Finance, Seoul, Korea. Durai, S. Emran, M. Fama, E. XLVI, No. Fama, Eugene F , "Efficient capital markets: A review theory: macro variables vs derived factors," Journal of Finance, vol. Fama, Eugene F. Friedman, M. Geisst, Charles R. Oxford University Press.

Goldsmith, Raymond W. Financial structure and development. Greenwood, J. Jorion, Philippe and Eduardo Schwartz, , "Integration vs. Kalecki, M. King, R. Lee, B. Leong S. Levine, Ross Journal of Economic Literature, Vol. Levine, R. The American Economic Review, Vol. McKinnon, R. Michie, Ranlad. Morgan, Victor and Thomas, W. Nath, Golaka C and Reddy. Panda, Chakradhara , "Do interest rates matter for stock markets? Phylaktis, K. Rajan R. Rajan, R. Robinson, Joan London: Macmillan, pp.

Schumpeter, Joseph A Theorie der Wirtschaftlichen Entwicklung [The theory of economic development]. Cambridge, MA: Harvard U. Shaw, E. Economic Journal, vol. Smith, G. Unpublished manuscript, The World Gold Council, pp. Solow, Robert. H , "Does the stock market rationally reflect fundamental variables? Syriopoulos, T. Wolf, Holger. Yartey, C. Yu, J. Zhou, C. Login Create Account Admin. All papers reproduced by permission. Reproduction and distribution subject to the approval of the copyright owners.

View Item. However, in the later time periods, the influence of other stock markets increased on our BSE or NSE, but at a very low almost insignificant level. Comparatively higher correlation was found between the Indian and the Korean markets, which seemed to have weakened in the short run. Hence it can be said that the Indian markets offer diversification benefits to international investors looking for investment in the Asia Pacific region.

Indian markets also delivered the highest compounded annual growth rate in stock market returns, both in the short as well as long run. Poshakwale, Sunil examined the random walk hypothesis in the emerging Indian stock market by testing for the nonlinear dependence using a large disaggregated daily data from the Indian stock market.

He found that the daily returns from the Indian market do not conform to a random walk. Daily returns from most individual stocks and the equally weighted portfolio exhibit significant non-linear dependence. This is largely consistent with He concluded that the existence of seasonality in stock markets and also suggested that this is a global phenomenon. Pandey and Kumar found co movement of Indian markets with eight other key stock exchanges in Asia for the period from to They found that the period was marked with high volatility among all markets under study.

Raju and Ghosh found that skewness and kurtosis is less in Indian market stock returns as compared to other countries. They also said that there was a need for a study on volatility in Indian stock markets after to see whether changes in market microstructure have resulted in changes in volatility pattern and facilitating international comparison of volatility. Hiard and Asimakopoulos investigated the interrelationship between daily returns generated by major stock exchanges.

Evidence found that strong interdependence exists between the daily returns generated by United States and other selected major world indices. They found that the most obvious re changes in the fundamental determinants of share price and of a firms business and financial risk. They also studied the Varma Venkiteswaran explored the relationship of the Indian stock markets as reflected by the Bombay Stock Exchange Index, vis-a-vis other prominent international stock markets.

Twenty three international stock indices are used over the period He concluded that there was practically no meaningful relationship between the BSE index and other international stock market indices, though the British and South Korean indices are inversely related to BSE. Mayya made an overview of the Indian capital market. He examined various aspects of Indian Capital Market.

The study emphasized the need for modernization and computerization for providing liquid and efficient market. His study reveals that though Indian stock market has attained a remarkable degree of growth in last one decade, but has still to go a long way. Venkateshwar explored the relationships of the Indian stock markets as reflected by the Bombay Stock Exchange Index, vis-a-vis other prominent international stock markets. Raghunathan and Varma point out that any comparison of the Indian stock market with that elsewhere must be carried out on a common currency base.

Gupta in his book concluded that an Indian stock market is highly speculative. Indian investors are dissatisfied with the service provided to them by the brokers. Margins levied by the stock exchanges are inadequate and liquidity in a large number of stocks in Indian markets is very low.

While evidently a careful work, the conclusion except about margin Chaplinsky and Hansen suggest that the indifferent stock market reaction is partly on account of market expectation of debt issues. They find significant negative stock price reaction to debt issue announcement after controlling for market expectations. However, the fall in price in case of debt issue announcements has been found to be lower than that of fall in the case of stock issue offerings. They also analyzed the determinants of subsequent performance and the factors influencing the decision to issue equity.

The study revealed that the SEO firms had a significant increase in operating performance prior to the issue and that they register a considerable decline in profitability in post-offering period. This research is the examination of the long-run operating performance of a large sample of straight-debtissuing firms, which complements previous large-sample studies of firms making seasoned equity offerings SEOs.

Moreover they compared the information effects for debt and equity issuers after controlling for other factors associated with changes in issuer operating performance. Masih and Masih examined the dynamic linkage patterns among national stock exchange prices of four Asian newly industrializing countries - Taiwan, South Korea, Singapore and Hong Kong.

The sample used comprised end-of-themonth closing share price indices of the four NIC stock markets from January to June They concluded that the study of these markets is not mutually exclusive of each other and significant short run linkages appear to run among them.

The patterns of dynamic linkages are examined among national stock prices of four Asian Newly Industrializing Shamsuddin and Kim researched on Integration and interdependence of stock and foreign exchange markets: an Australian perspective. They studied the integration of the Australian stock market with its two leading trading partners, the US and Japan.

In investigating the extent of integration, the study considered the interdependence between foreign exchange rates and stock prices, since exchange rates influence international competitiveness of firms, and, via interest rates, the cost of capital. The results indicated that there was a stable long-run relationship among the Australian, US and Japanese markets prior to the Asian crisis but that this relationship disappeared in the post-Asian crisis period.

Yakob, Beal and Delpachitra examined seasonal effects in ten Asian Pacific stock markets, including the Indian stock market, for the period January to March They state that this is a period of stability and is therefore ideal for examining seasonality as it was not influenced by the Asian financial crisis of the late nineties.

Yakob, et al. He has done a tremendous work in the field of Indian stock exchanges. This doctoral thesis is divided into two volumes. Noor, Yakob, Beal and Sarath studied the stock market seasonality in terms of day-of- the-week, month-of-the-year, month and holiday effects in ten Asian stock markets, namely, Australia, China, Hong Kong, Japan, India, Indonesia, Malaysia, Singapore, They analyzed the nature of fluctuations in the Indian financial market.

They found that the distributions of trading volume and the number of trades had a different nature than that seen in the New York Stock Exchange NYSE. Further, the price movement of different stocks are highly correlated in Indian markets. According to his findings the stock market is witnessing heightened activities and is increasingly gaining importance. In the current context of globalization and the subsequent integration of the global markets this paper captures the trends, similarities and patterns in the activities and movements of the Indian Stock Market in comparison to its international counterparts.

The time period has been divided into various eras to test the correlation between the various exchanges to prove that the Indian markets have become more integrated with its global counterparts and its reaction are in tandem with that are seen globally. Jayen B. He found two distinct calendar effects in returns for the Indian stock market. Specifically a November- December effect in which, they documented that mean returns for November and December were significantly greater than those of the other ten months.

They found that the highest mean returns for each index were generated during the month of November. December and August also generated relatively high returns. The month of March They seek to identify a series of consecutive months during which the Indian stock market generates extraordinarily high or low returns.

Identification of such a pattern may enable the investors to enhance investment returns. More specifically, an investor should be invested during the consecutive months when the Indian stock market generates high positive returns, and, alternately, an investor should invest out of the Indian stock market in consecutive months when stocks generate substantially negative returns. This thesis contributes to the discussion on the importance of accounting information for stock market efficiency.

As any analysis of market efficiency depends on the use of adequate risk proxies, the thesis first investigates the ability of commonly used risk factors to explain the cross-sectional variation of Swedish stock returns. The relative bid-ask spread is found to be the strongest of all the analyzed factors; nevertheless it does not seem to be related to momentum in the manner predicted in the conceptual argument presented earlier in the paper.

He concluded that, contrary to this proposition, the structure of accounting does matter for equity valuation and that changes in representation do impact on stock prices. Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. Due to its wide acceptance amongst the Indian investors, sensex is regarded the pulse of the Indian stock market. Nifty is a well diversified 50 stock index accounting for 24 sectors of the economy.

Hence these two indices were taken for the study. Data were taken from to Bank, corporate and personal balance sheets are strong. Corporations are experiencing high profits. The stock market is at a record high. Commodity markets are at their strongest.

Lead manufacturing sectors such as software, textiles and steel have yielded dividends. Spices exports have reached beyond the targets. Rupee value appreciation flourished the Indian stock market. The bull phases In the bull phases volatilities were lower than bear phases.

In this study, he tried to examine the seasonality of stock market in India. The study found that daily and monthly seasonality are present in Nifty and Nifty Junior returns. The analysis of stock market seasonality using daily data, he found Friday Effect in Nifty returns while Nifty Junior returns were statistically significant on Friday, Monday and Wednesday.

In case of monthly analysis of returns, the study found that Nifty returns were statistically significant in July, September, December and January. In case of Nifty Junior, June and December months were statistically significant. The results established that the Indian stock market is not efficient and investors can improve their returns by timing their investment.

She studied whether Indian stock market returns were correlated to the stock market returns of other selected Asian Economies or not and compared the distribution of the stock market returns of India with other selected Asian economies. She used the descriptive statistics of the six Asian markets for the period between and Japanese markets were flat during the study period.

Volatility as measured by standard deviation and its square, the variance was the least observed in the Malaysian markets. Indian markets showed maximum variance. Kurtosis, as referred to as the volatility of the volatility, measures the peakedness of the distribution. The weekly returns of Hong Kong and Malaysian markets were more near to their respective means, as their kurtosis were nearing 3.

Weekly returns of Indian stock markets indicate a low peak with a fat mid range on either side. The kurtosis of India is platykurtic which signifies the normal The study uses Jarque-Bera test to examine the normal distribution. The aim is to help the investors current and potential understand the impact of important happenings on the Indian Stock exchange. This is especially relevant in the current scenario when the financial markets across the globe are getting integrated into one big market and the impact of one exchange on the other exchanges.

The data for the above mentioned stock indices is available at the corresponding stock exchanges used in the study. The Earlier studied reports area also considered in this study for the purpose of understand the difference in exchanges and thereof. The study considered on qualitative data for the analysis and comparative study is conducted with reference to same. Qualitative Analysis In this section the various stock exchanges have been compared on the following parameters: Market Capitalization 2.

Trading Mechanism These parameters are used to look at selected important aspects of any stock exchange viz the market capitalization gives an idea about the size of the respective exchanges whereas the number of listed securities acts as an indicator for the volume and liquidity of any exchange. The listing agreements take care of the governance issue, while circuit filters give an insight into the risk management framework of the said exchange.

Finally, the efficiency of a stock exchange has been measured in terms of its settlement process. Scope of the study is to understand the difference between the selected international stock exchange and Indian stock exchange. This study is based on Historical and secondary data which leads to variation in present and previous scenario. This study is limited to selected stock exchanges. This study is purely based on secondary data and the qualitative approach is used for the study.

It shows the current stock price multiplied by the number of outstanding shares. It is commonly referred to as Market cap. It is calculated by multiplying the number of common shares with the current price of those shares. This term is often confused with capitalization, which is the total amount of funds used to finance a firm's balance sheet and is calculated as market capitalization plus debt book or market value plus preferred stock.

While there are no strong definitions for market cap categorizations, a few terms are frequently used to group companies based on its capitalization. The table below shows the market capitalization of ten stock markets in the world. Based on the below study, it can be observed that India is 9th in the world ranking of Market capitalization. This is in spite of having the third largest investor base, after Japan and USA, and having the largest number of companies listed. United States leads the list of countries with the highest market capitalization.

It is interesting to note that the total market capitalization of all the companies listed on the New York Stock Exchange is greater than the amount of money in the United States. Indian stock exchanges and Korean are far from their competition in Market capitalization by the ranking. India secured 9th position where Korea is on 12th rank.

Indian stock exchange need to focus on the prospectus of increase in market capitalization by the attraction of more people in Invest in stock market. Social awareness program for the Indian investors as well as policies of tax relief can also attract investor to invest in stocks. Stock Exchange No. After India, Japan Exchange Group has the highest number of companies listed. Here as per no. Korean stock exchange have listed securities more than and Hong Kong stock exchange have more than NSE is with listed securities more than Here one can say that Indian stock exchanges are more focused on listing of securities capitalization and the number of listing securities are not respondent to each other the US stock exchange have less securities listed but still its market capitalization is more than Indian stock exchanges.

Company with a minimum issue size of Rs. Paid Up capital: Not less than 10 Crores 2. Market Capitalisation: Not less than 25 Crores 3. At least three years track record: The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth.

The company has not received any winding up petition accepted by a court. No disciplinary action by other stock exchanges and regulatory authorities in past three years. Minimum Listing Requirements for companies listed on other stock exchanges.

The company should have minimum issued and paid up equity capital of Rs. The Company should have profit making track record for last three years. Minimum net worth of Rs. Minimum market capitalization of the listed capital should be at least two times of the paid up capital.

Distribution and Size criteria: A The number of beneficial holders of stock held in "street name" will be considered in addition to the holders of record. The Exchange will make any necessary check of such holdings that are in the name of Exchange member organizations. B In connection with initial public offerings, spin-offs and carve-outs, the NYSE will accept an undertaking from the company's underwriter to ensure that the offering will meet or exceed the NYSE's standards.

E Represents net cash provided by operating activities excluding the changes in working capital or in operating assets and liabilities, as adjusted for various items as defined in Section Average global market capitalization for already existing public companies is represented by the most recent six months of trading history. In case where the number of shares to be listed is less than 10 thousand units; persons.

In case where the number of shares to be listed is 10 thousand units or more but less than 20 thousand units; 1, persons, iii. In case where the number of shares to be listed is 20 thousand units or more; 1, persons. B Number of years since incorporation: 3 years or more have elapsed by the last day of a business year immediately prior to the day of listing application c Amount of profit: The amount of profit for the first year of the latest 2 years was million yen or more; and million yen or more for the latest year, or The amount of profit for the first year of the latest 3 years was million yen or more; million yen or more for the latest Spread of Shareholders: vi.

Public float: viii. No of Shares: At least 1million shares as of application date. B Financial Requirement i. Profit: Must show operating profits, ordinary profits and net profits. Profits for the latest fiscal year should be at least KRW 2. No of years since establishment: Have been operating without interruption for at least 3 years since establishment. The Listing agreements are well defined for each exchanges which helps to listing of companies in the exchange. Indian listing criteria are well defined and that helps to increase no.

US listing criteria are more complex than Indian stock exchange so there are less securities registered as compare to India. Other stock exchanges also have well defined criteria but still that also more complex as compare to Indian stock exchange. A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a market. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles such as the dot-com bubble.

As a counter measure to the instability of the stock market, various measures were introduced by to avoid huge losses. One such solution is circuit breakers. This was first introduced after Black Monday. This was done with an aim to avert panic in the market and to avoid panic selling. The Circuit Filters operate according to the rules and requirements of the stock Market in question. These circuit breakers, when triggered, bring about a coordinated trading halt in all equity and equity derivative markets nationwide.

In case the movement takes place at or after p. In case movement takes place at or after p. These percentages are translated into absolute points of index variations on a quarterly basis. At the end of each quarter, these absolute points of index variations are revised for the applicability for the next quarter.

The absolute points are calculated based on closing In addition to this, there are also price bands for individual securities. Daily price bands are applicable on securities as below: i. No price bands are applicable on scrips on which derivative products are available or scrips included in indices on which derivative products are available.

The price bands for the securities in the Limited Physical Market are the same as those applicable for the securities in the Normal Market. For scrips 53 scrips on which derivative products are available and scrips which are included in indices on which derivative products are available, there is no circuit filter. However, the Exchange has imposed dummy circuit fitters on these scrips to avoid punching error, if any. Market Wide Circuit Breakers These circuit breakers will bring about a coordinated trading halt in both Equity and Derivative market.

The percentage movements are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variation rounded off to the nearest 25 points in case of SENSEX. At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter. The absolute points of SENSEX variation triggering market wide circuit breaker for a specified time period for any day of the quarter is informed by the Exchange through Press Release from time to time.

Limits do not apply to the last 30 minutes of the trading day, unless the minute cooling period spills into that time frame. There are no limits for the last day of trading for the contract nearest to expiry. Trading Halt In such a case, the concerned corporation is asked to make an inquiry into such rumors or reports and disclose findings.

The levels are calculated by the NYSE at the beginning of each calendar quarter, using the average closing value of the DJIA for the preceding month and each trigger is rounded to the nearest 50 points. For the third quarter , the following triggers are in place. The trading, which resumes by periodic call auction where the orders submitted during the first 10 minutes after the trading halt ended, are matched at a single price.

TELLING TIME HOMEWORK YEAR 3

Prices should react quickly and precisely to new arriving info into the stock market; 2. Price changes should be random and unpredictable prices follow a random walk ; 3. It is impossible to find profitable trading strategies on risk-adjusted basis; 4. Knowledgeable investors do not perform better than average investors. As EMH states that in an active market which consists of a large number of well-informed and objective investors, stocks will be appropriately priced by reflecting all available information.

If so, no one can beat the market except by taking a higher risk. Sudarvel et al. The study considers seasonal or monthly stock returns in several developed and emerging markets. This study also investigates the existence of seasonality in Indian markets. The result of the study observes that investor during the end of the year, sell shares whose value have declined to book losses in order to reduce their taxes. Major findings of the study is Return for the month of January, February, August and December higher than other months return Maximum returns in the month of February compared to the other months, whereas, return during the months of March, April, May, September, October and November shows a negative trend.

Time Series Regression Model disclose that the return for the month of March, July and October are amongst the lowest are compared to the month of January, which clearly indicates the presence of seasonality in the Sensex returns. This study result does confirm the January effect of stock return in India.

The result of the study indicates that stock returns in India are not entirely random. This study confirms that the Indian stock market may not efficient. As a consequence perhaps investors can improve their return by timings their investments. The data required for the study is secondary nature. The result of the study the Indian Stock Market does manifest seasonality in their returns.

The data for this study have been taken from prowess data base. The daily returns were calculated from April to April The collected data are analysed by making use of regression. Monday returns remained less than other days, and Friday remained greater than other days. The limitations of the study is the author considers cyclic factor rather than fundamental factors and consider only weekly variation in stock returns. Seasonal variation, Monthly variations or intraday variations in returns have not been considered.

Ashish Garg, B. Second period Monday is lower average return of the rest of the days. Monday effect exists in Indian stock market but not in the US. Semi-monthly effect to compare the average return of first half of the month, and average return of second half of the month.

BSE ltd first half month return higher than the second half month. Semi-monthly effect is same for the both of the Indian and US market. Ending for this study efficiency of stock market closely related to the allocation of scare capital resources. Both Indian and US market turn of month effect is significantly. Monthly effect upward pressure of stock market and result higher return in January month.

But in case of India in the month of March is tax saving month, therefore anomaly exist in Indian stock market. Result for this study the presence of anomalies indicates stock market efficiency therefore. Nageswari, DR. Selvam and DR. The study has been carried out to find how bad news and good news is reflected stock prices.

The result of the study disclose that highest mean return was recorded for the first half of the month than the rest of the days in the month. Result of the study also shows that the semi- month effect and turn of the month effect was not prevalent in the Indian stock market during the study period. By analysing these anomalies in Indian stock market it is concluded that most of the cash flow entered in the Indian stock market in first few days of the month, as a result indices stock prices to move upward.

ANOVA result discloses that there is no significant difference in mean monthly return between the different months. Duncan post hoc test indicates that March returns were significantly lower than those of November, December, and August. Negative return is noticed during March, as investor in order to reduce their stock burden prefers to re-invest their shares. Over than nifty for sample period. Volatility as measured by standard deviations of the returns of the sample period. Nifty and junior Nifty 6.

ARCH effect we found week end effect in junior return, significant seasonality in nifty junior return across the days. Monday, Wednesday, and Friday were significantly different from each other. Result for the study established that the Indian stock Market is not efficient and investor can improve their returns by timing their investment. CAPM tests that the market beta is lower for the low accrual portfolio as compared to the high accrual portfolio.

From the academic point of view their results are in conflict with the findings for developed markets. Suggesting differences in investor behaviour across markets. Companies for which data for 36 months historical data was not available and hence their volatility not be calculated. Comparison with regards to the number of month for which LV portfolios gave higher returns the HV portfolios.

The research gap of this study was found out by conducting a detailed literature review of studies in different countries during the recent years. Debjban mukharjee, T. Pai Management Institute Manipal India. He found that the popular belief that the markets in general and Indian market in particular is more integrated with other global exchanges from onwards.

This can very well be seen since the South Asian crisis of the mid- late nineties barely affected us particularly because we were insulated due to government policies and was just making the transition. However, in the later time periods, the influence of other stock markets increased on our BSE or NSE, but at a very low almost insignificant level. Comparatively higher correlation was found between the Indian and the Korean markets, which seemed to have weakened in the short run. Hence it can be said that the Indian markets offer diversification benefits to international investors looking for investment in the Asia Pacific region.

Indian markets also delivered the highest compounded annual growth rate in stock market returns, both in the short as well as long run. Poshakwale, Sunil examined the random walk hypothesis in the emerging Indian stock market by testing for the nonlinear dependence using a large disaggregated daily data from the Indian stock market. He found that the daily returns from the Indian market do not conform to a random walk.

Daily returns from most individual stocks and the equally weighted portfolio exhibit significant non-linear dependence. This is largely consistent with He concluded that the existence of seasonality in stock markets and also suggested that this is a global phenomenon. Pandey and Kumar found co movement of Indian markets with eight other key stock exchanges in Asia for the period from to They found that the period was marked with high volatility among all markets under study.

Raju and Ghosh found that skewness and kurtosis is less in Indian market stock returns as compared to other countries. They also said that there was a need for a study on volatility in Indian stock markets after to see whether changes in market microstructure have resulted in changes in volatility pattern and facilitating international comparison of volatility.

Hiard and Asimakopoulos investigated the interrelationship between daily returns generated by major stock exchanges. Evidence found that strong interdependence exists between the daily returns generated by United States and other selected major world indices. They found that the most obvious re changes in the fundamental determinants of share price and of a firms business and financial risk.

They also studied the Varma Venkiteswaran explored the relationship of the Indian stock markets as reflected by the Bombay Stock Exchange Index, vis-a-vis other prominent international stock markets. Twenty three international stock indices are used over the period He concluded that there was practically no meaningful relationship between the BSE index and other international stock market indices, though the British and South Korean indices are inversely related to BSE.

Mayya made an overview of the Indian capital market. He examined various aspects of Indian Capital Market. The study emphasized the need for modernization and computerization for providing liquid and efficient market. His study reveals that though Indian stock market has attained a remarkable degree of growth in last one decade, but has still to go a long way. Venkateshwar explored the relationships of the Indian stock markets as reflected by the Bombay Stock Exchange Index, vis-a-vis other prominent international stock markets.

Raghunathan and Varma point out that any comparison of the Indian stock market with that elsewhere must be carried out on a common currency base. Gupta in his book concluded that an Indian stock market is highly speculative. Indian investors are dissatisfied with the service provided to them by the brokers. Margins levied by the stock exchanges are inadequate and liquidity in a large number of stocks in Indian markets is very low.

While evidently a careful work, the conclusion except about margin Chaplinsky and Hansen suggest that the indifferent stock market reaction is partly on account of market expectation of debt issues. They find significant negative stock price reaction to debt issue announcement after controlling for market expectations. However, the fall in price in case of debt issue announcements has been found to be lower than that of fall in the case of stock issue offerings.

They also analyzed the determinants of subsequent performance and the factors influencing the decision to issue equity. The study revealed that the SEO firms had a significant increase in operating performance prior to the issue and that they register a considerable decline in profitability in post-offering period. This research is the examination of the long-run operating performance of a large sample of straight-debtissuing firms, which complements previous large-sample studies of firms making seasoned equity offerings SEOs.

Moreover they compared the information effects for debt and equity issuers after controlling for other factors associated with changes in issuer operating performance. Masih and Masih examined the dynamic linkage patterns among national stock exchange prices of four Asian newly industrializing countries - Taiwan, South Korea, Singapore and Hong Kong.

The sample used comprised end-of-themonth closing share price indices of the four NIC stock markets from January to June They concluded that the study of these markets is not mutually exclusive of each other and significant short run linkages appear to run among them. The patterns of dynamic linkages are examined among national stock prices of four Asian Newly Industrializing Shamsuddin and Kim researched on Integration and interdependence of stock and foreign exchange markets: an Australian perspective.

They studied the integration of the Australian stock market with its two leading trading partners, the US and Japan. In investigating the extent of integration, the study considered the interdependence between foreign exchange rates and stock prices, since exchange rates influence international competitiveness of firms, and, via interest rates, the cost of capital. The results indicated that there was a stable long-run relationship among the Australian, US and Japanese markets prior to the Asian crisis but that this relationship disappeared in the post-Asian crisis period.

Yakob, Beal and Delpachitra examined seasonal effects in ten Asian Pacific stock markets, including the Indian stock market, for the period January to March They state that this is a period of stability and is therefore ideal for examining seasonality as it was not influenced by the Asian financial crisis of the late nineties.

Yakob, et al. He has done a tremendous work in the field of Indian stock exchanges. This doctoral thesis is divided into two volumes. Noor, Yakob, Beal and Sarath studied the stock market seasonality in terms of day-of- the-week, month-of-the-year, month and holiday effects in ten Asian stock markets, namely, Australia, China, Hong Kong, Japan, India, Indonesia, Malaysia, Singapore, They analyzed the nature of fluctuations in the Indian financial market.

They found that the distributions of trading volume and the number of trades had a different nature than that seen in the New York Stock Exchange NYSE. Further, the price movement of different stocks are highly correlated in Indian markets.

According to his findings the stock market is witnessing heightened activities and is increasingly gaining importance. In the current context of globalization and the subsequent integration of the global markets this paper captures the trends, similarities and patterns in the activities and movements of the Indian Stock Market in comparison to its international counterparts.

The time period has been divided into various eras to test the correlation between the various exchanges to prove that the Indian markets have become more integrated with its global counterparts and its reaction are in tandem with that are seen globally. Jayen B. He found two distinct calendar effects in returns for the Indian stock market. Specifically a November- December effect in which, they documented that mean returns for November and December were significantly greater than those of the other ten months.

They found that the highest mean returns for each index were generated during the month of November. December and August also generated relatively high returns. The month of March They seek to identify a series of consecutive months during which the Indian stock market generates extraordinarily high or low returns. Identification of such a pattern may enable the investors to enhance investment returns.

More specifically, an investor should be invested during the consecutive months when the Indian stock market generates high positive returns, and, alternately, an investor should invest out of the Indian stock market in consecutive months when stocks generate substantially negative returns. This thesis contributes to the discussion on the importance of accounting information for stock market efficiency.

As any analysis of market efficiency depends on the use of adequate risk proxies, the thesis first investigates the ability of commonly used risk factors to explain the cross-sectional variation of Swedish stock returns. The relative bid-ask spread is found to be the strongest of all the analyzed factors; nevertheless it does not seem to be related to momentum in the manner predicted in the conceptual argument presented earlier in the paper. He concluded that, contrary to this proposition, the structure of accounting does matter for equity valuation and that changes in representation do impact on stock prices.

Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. Due to its wide acceptance amongst the Indian investors, sensex is regarded the pulse of the Indian stock market. Nifty is a well diversified 50 stock index accounting for 24 sectors of the economy. Hence these two indices were taken for the study. Data were taken from to Bank, corporate and personal balance sheets are strong. Corporations are experiencing high profits.

The stock market is at a record high. Commodity markets are at their strongest. Lead manufacturing sectors such as software, textiles and steel have yielded dividends. Spices exports have reached beyond the targets. Rupee value appreciation flourished the Indian stock market. The bull phases In the bull phases volatilities were lower than bear phases. In this study, he tried to examine the seasonality of stock market in India. The study found that daily and monthly seasonality are present in Nifty and Nifty Junior returns.

The analysis of stock market seasonality using daily data, he found Friday Effect in Nifty returns while Nifty Junior returns were statistically significant on Friday, Monday and Wednesday. In case of monthly analysis of returns, the study found that Nifty returns were statistically significant in July, September, December and January.

In case of Nifty Junior, June and December months were statistically significant. The results established that the Indian stock market is not efficient and investors can improve their returns by timing their investment. She studied whether Indian stock market returns were correlated to the stock market returns of other selected Asian Economies or not and compared the distribution of the stock market returns of India with other selected Asian economies.

She used the descriptive statistics of the six Asian markets for the period between and Japanese markets were flat during the study period. Volatility as measured by standard deviation and its square, the variance was the least observed in the Malaysian markets. Indian markets showed maximum variance. Kurtosis, as referred to as the volatility of the volatility, measures the peakedness of the distribution.

The weekly returns of Hong Kong and Malaysian markets were more near to their respective means, as their kurtosis were nearing 3. Weekly returns of Indian stock markets indicate a low peak with a fat mid range on either side. The kurtosis of India is platykurtic which signifies the normal The study uses Jarque-Bera test to examine the normal distribution.

The aim is to help the investors current and potential understand the impact of important happenings on the Indian Stock exchange. This is especially relevant in the current scenario when the financial markets across the globe are getting integrated into one big market and the impact of one exchange on the other exchanges. The data for the above mentioned stock indices is available at the corresponding stock exchanges used in the study.

The Earlier studied reports area also considered in this study for the purpose of understand the difference in exchanges and thereof. The study considered on qualitative data for the analysis and comparative study is conducted with reference to same. Qualitative Analysis In this section the various stock exchanges have been compared on the following parameters: Market Capitalization 2. Trading Mechanism These parameters are used to look at selected important aspects of any stock exchange viz the market capitalization gives an idea about the size of the respective exchanges whereas the number of listed securities acts as an indicator for the volume and liquidity of any exchange.

The listing agreements take care of the governance issue, while circuit filters give an insight into the risk management framework of the said exchange. Finally, the efficiency of a stock exchange has been measured in terms of its settlement process. Scope of the study is to understand the difference between the selected international stock exchange and Indian stock exchange.

This study is based on Historical and secondary data which leads to variation in present and previous scenario. This study is limited to selected stock exchanges. This study is purely based on secondary data and the qualitative approach is used for the study. It shows the current stock price multiplied by the number of outstanding shares. It is commonly referred to as Market cap. It is calculated by multiplying the number of common shares with the current price of those shares.

This term is often confused with capitalization, which is the total amount of funds used to finance a firm's balance sheet and is calculated as market capitalization plus debt book or market value plus preferred stock.

While there are no strong definitions for market cap categorizations, a few terms are frequently used to group companies based on its capitalization. The table below shows the market capitalization of ten stock markets in the world. Based on the below study, it can be observed that India is 9th in the world ranking of Market capitalization. This is in spite of having the third largest investor base, after Japan and USA, and having the largest number of companies listed.

United States leads the list of countries with the highest market capitalization. It is interesting to note that the total market capitalization of all the companies listed on the New York Stock Exchange is greater than the amount of money in the United States. Indian stock exchanges and Korean are far from their competition in Market capitalization by the ranking. India secured 9th position where Korea is on 12th rank.

Indian stock exchange need to focus on the prospectus of increase in market capitalization by the attraction of more people in Invest in stock market. Social awareness program for the Indian investors as well as policies of tax relief can also attract investor to invest in stocks. Stock Exchange No. After India, Japan Exchange Group has the highest number of companies listed. Here as per no. Korean stock exchange have listed securities more than and Hong Kong stock exchange have more than NSE is with listed securities more than Here one can say that Indian stock exchanges are more focused on listing of securities capitalization and the number of listing securities are not respondent to each other the US stock exchange have less securities listed but still its market capitalization is more than Indian stock exchanges.

Company with a minimum issue size of Rs. Paid Up capital: Not less than 10 Crores 2. Market Capitalisation: Not less than 25 Crores 3. At least three years track record: The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth.

The company has not received any winding up petition accepted by a court. No disciplinary action by other stock exchanges and regulatory authorities in past three years. Minimum Listing Requirements for companies listed on other stock exchanges. The company should have minimum issued and paid up equity capital of Rs. The Company should have profit making track record for last three years. Minimum net worth of Rs. Minimum market capitalization of the listed capital should be at least two times of the paid up capital.

Distribution and Size criteria: A The number of beneficial holders of stock held in "street name" will be considered in addition to the holders of record. The Exchange will make any necessary check of such holdings that are in the name of Exchange member organizations. B In connection with initial public offerings, spin-offs and carve-outs, the NYSE will accept an undertaking from the company's underwriter to ensure that the offering will meet or exceed the NYSE's standards.

E Represents net cash provided by operating activities excluding the changes in working capital or in operating assets and liabilities, as adjusted for various items as defined in Section Average global market capitalization for already existing public companies is represented by the most recent six months of trading history. In case where the number of shares to be listed is less than 10 thousand units; persons.

In case where the number of shares to be listed is 10 thousand units or more but less than 20 thousand units; 1, persons, iii. In case where the number of shares to be listed is 20 thousand units or more; 1, persons.

B Number of years since incorporation: 3 years or more have elapsed by the last day of a business year immediately prior to the day of listing application c Amount of profit: The amount of profit for the first year of the latest 2 years was million yen or more; and million yen or more for the latest year, or The amount of profit for the first year of the latest 3 years was million yen or more; million yen or more for the latest Spread of Shareholders: vi.

Public float: viii. No of Shares: At least 1million shares as of application date. B Financial Requirement i. Profit: Must show operating profits, ordinary profits and net profits. Profits for the latest fiscal year should be at least KRW 2. No of years since establishment: Have been operating without interruption for at least 3 years since establishment.

The Listing agreements are well defined for each exchanges which helps to listing of companies in the exchange. Indian listing criteria are well defined and that helps to increase no. US listing criteria are more complex than Indian stock exchange so there are less securities registered as compare to India. Other stock exchanges also have well defined criteria but still that also more complex as compare to Indian stock exchange. A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a market.

Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles such as the dot-com bubble. As a counter measure to the instability of the stock market, various measures were introduced by to avoid huge losses. One such solution is circuit breakers. This was first introduced after Black Monday.

This was done with an aim to avert panic in the market and to avoid panic selling. The Circuit Filters operate according to the rules and requirements of the stock Market in question. These circuit breakers, when triggered, bring about a coordinated trading halt in all equity and equity derivative markets nationwide.

In case the movement takes place at or after p. In case movement takes place at or after p. These percentages are translated into absolute points of index variations on a quarterly basis. At the end of each quarter, these absolute points of index variations are revised for the applicability for the next quarter.

The absolute points are calculated based on closing In addition to this, there are also price bands for individual securities. Daily price bands are applicable on securities as below: i. No price bands are applicable on scrips on which derivative products are available or scrips included in indices on which derivative products are available.

The price bands for the securities in the Limited Physical Market are the same as those applicable for the securities in the Normal Market. For scrips 53 scrips on which derivative products are available and scrips which are included in indices on which derivative products are available, there is no circuit filter.

However, the Exchange has imposed dummy circuit fitters on these scrips to avoid punching error, if any. Market Wide Circuit Breakers These circuit breakers will bring about a coordinated trading halt in both Equity and Derivative market. The percentage movements are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variation rounded off to the nearest 25 points in case of SENSEX. At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.

The absolute points of SENSEX variation triggering market wide circuit breaker for a specified time period for any day of the quarter is informed by the Exchange through Press Release from time to time. Limits do not apply to the last 30 minutes of the trading day, unless the minute cooling period spills into that time frame.

There are no limits for the last day of trading for the contract nearest to expiry.

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Option to start trading with small investments 4. Moreover, sometime the investment in equity trading goes to bottom level and nothing is expected in return. And this perception has leaded the investment trends from debt to equity and portfolio investment.

These can be classified into the following broad. As an equity shareholder, you have an ownership stake in the company. This essentially means that you have a residual interest in income and wealth. Insurance premiums represent the sacrifice and the assured sum, the benefits. The underlying asset can be securities, commodities, currency etc. Objectives decide the all over framework of any study. The main objective of this study is to capture the trends, activities and movements of the Indian Stock Market.

The study highlights the' need to regulate the volume of speculation so as to serve the needs of liquidity and price continuity. It suggests the enlistment of corporate securities in more than one stock exchange at the same time to improve liquidity.

The study also wishes the cost of issues to be low, in order to protect small investors Panda has studied the role of stock exchanges in India before and after independence. The study reveals that listed stocks covered four-fifths of the joint stock sector companies. Investment in securities was no longer the monopoly of any particular class or of a small group of people.

It attracted the attention of a large number of small and middle class individuals. It was observed that a large proportion of savings went in the first instance into purchase of securities already issued. The return on equities includes dividends and capital appreciation.

This study presents sound estimates of rates of return on equities, and examines the variability of such returns over time. Jawahar Lal presents a profile of Indian investors and evaluates their investment decisions. He made an effort to study their familiarity with, and comprehension of financial information, and the extent to which this is put to use.

The information that the companies provide generally fails to meet the needs of a variety of individual investors and there is a general impression that the company's Annual Report and other statements are not well received by them.

Gupta revealed the findings of his study that there is existence of wild speculation in the Indian stock market. The over speculative character of the Indian stock market is reflected in extremely high concentration of the market activity in a handful of shares to the neglect of the remaining shares and absolutely high trading velocities of the speculative counters. He opined that, short- term speculation, if excessive, could lead to "artificial price".

An artificial price is one which is not justified by prospective earnings, dividends, financial strength and assets or which is brought about by speculators through rumours, manipulations, etc. He concluded that such artificial prices are bound to crash sometime or other as history has repeated and proved. Nabhi Kumar Jain specified certain tips for buying shares for holding and also for selling shares. He advised the investors to buy shares of a growing company of a growing industry.

Buy shares by diversifying in a number of growth companies operating in a different but equally fast growing sector of the economy. He suggested selling the shares the moment company has or almost reached the peak of its growth. Also, sell the shares the moment you realise you have made a mistake in the initial selection of the shares.

The only option to decide when to buy and sell high priced shares is to identify the individual merit or demerit of each of the shares in the portfolio and arrive at a decision. Pyare Lal Singh in the study titled, Indian Capital Market - A Functional Analysis, depicts the primary market as a perennial source of supply of funds.

It mobilises the savings from the different sectors of the economy like households, public and private corporate sectors. The number of investors increased from 20 lakhs in to lakhs in 7. In financing of the project costs of the companies with different sources of financing, the contribution of the securities has risen from Sunil Damodar evaluated the 'Derivatives' especially the 'futures' as a tool for short-term risk control.

He opined that derivatives have become an indispensable tool for finance managers whose prime objective is to manage or reduce the risk inherent in their portfolios. He disclosed that the over-riding feature of 'financial futures' in risk management is that these instruments tend to be most valuable when risk control is needed for a short- term, i.

They tend to be cheapest and easily available for protecting against or benefiting from short term price. Their low execution costs also make them very suitable for frequent and short term trading to manage risk, more effectively. Venkataramani l disclosed the uses and dangers of derivatives. The derivative products can lead us to a dangerous position if its full implications are not clearly understood.

Being off balance sheet in nature, more and more derivative products are traded than the cash market products and they suffer heavily due to their sensitive nature. He brought to the notice of the investors the 'Over the counter product' OTC which are traded across the counters of a bank.

OTC products e. Options and futures are tailor made for the particular need of a customer and serve as a perfect hedge. He emphasised the use of futures as an instrument of hedge, for it is of low cost. The data used are the RBI monthly aggregate share indices relating five regional stock exchanges in India, viz Bombay, Calcutta, Madras, Delhi, Ahmedabad during According to the authors, the co integration results exhibited a long-run equilibrium relation between the price indices of five stock exchanges and error correction models indicated short run deviation between the five regional stock exchanges.

The study found that there is no evidence in favour of market efficiency of Bombay, Madras, and Calcutta stock exchanges while contrary evidence is found in case of Delhi and Ahmedabad. Pattabhi Ram. He opined that the investor should look for value with a margin of safety in relation to price.

The margin of safety is the gap between price and value. He revealed that the Indian stock market is an inefficient market because of the absence of good communication network, rampant price rigging, and the absence of free and instantaneous flow of information, professional broking and so on.

He concluded that in such inefficient market, equity research will produce better results as there will be frequent mismatch between price and value that provides opportunities to the long-term value oriented investor. He added that in the Indian stock market investment returns would improve only through quality equity research.

Karajazyk investigated one measure of financial integration between equity markets. He applied the integration measure to equities traded in 24 countries four developed and 20 emerging. He found that the measure of market segmentation tends to be much larger for emerging markets than for developed markets, which flows into or out of the emerging markets.

The measure tends to decrease over time, which is consistent with growing levels of integration. Large values of adjusted mis-pricing occur around periods in which capital controls change significantly. Finally, he found asymmetric integration relationship; stock markets of developed nations are more integrated than those of emerging nations. Debjit Chakraborty in his study attempts to establish a relationship between major economic indicators and stock market behaviour.

It also analyses the stock market reactions to changes in the economic climate. The factors considered are inflation, money supply, and growth in GDP, fiscal deficit and credit deposit ratio. Redel concentrated on the capital market integration in developing Asia during the period to taking into variables such as net capital flows, FDI, portfolio equity flows and bond flows.

Avijit Banerjee reviewed Fundamental Analysis and Technical Analysis to analyse the worthiness of the individual securities needed to be acquired for portfolio construction. P and to take decisions whether to buy, sell or hold the investments. The fundamentals of the economy, industry and company determine the value of a security. If the 1. V is greater than the M.

He observed that the Fundamental Analysis could never forecast the M. Technical Analysis removes this weakness. Technical Analysis detects the most appropriate time to buy or sell the stock. It aims to avoid the pitfalls of wrong timing in the investment decisions. He also stated that the modern portfolio literature suggests 'beta' value p as the most acceptable measure of risk of scrip. The securities having low P should be selected for constructing a portfolio in order to minimise the risks.

Madhusudan found that BSE sensitivity and national indices did not follow random walk by using correlation analysis on monthly stock returns data over the period January to December Arun Jethmalani reviewed the existence and measurement of risk involved in investing in corporate securities of shares and debentures. He commended that risk is usually determined, based on the likely variance of returns.

It is more difficult to compare 80 risks within the same class of investments. This pandemic has resulted in a universal health crisis, along with a major decline in the global economy. One of the major reasons for the fluctuation in the stock price is supply and demand. When the number of people who want to sell their stocks outnumbers those who want to purchase it, the stock price drops. Due to the result in the gap, the financial markets will suffer in the short duration, but in the long run, markets will correct themselves and would increase again.

There is a sharp decline in the stock price because of the pandemic. The current scenario has resulted in a world health crisis which has contributed to global and economic crises. Almost all financial markets across the world have been affected by the recent health crisis, with stock and bond values falling gradually and severely.

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He concluded that, contrary to this proposition, the structure of accounting does matter for equity valuation and that changes in representation do impact on stock prices. Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. Due to its wide acceptance amongst the Indian investors, sensex is regarded the pulse of the Indian stock market.

Nifty is a well diversified 50 stock index accounting for 24 sectors of the economy. Hence these two indices were taken for the study. Data were taken from to Bank, corporate and personal balance sheets are strong. Corporations are experiencing high profits. The stock market is at a record high. Commodity markets are at their strongest. Lead manufacturing sectors such as software, textiles and steel have yielded dividends.

Spices exports have reached beyond the targets. Rupee value appreciation flourished the Indian stock market. The bull phases In the bull phases volatilities were lower than bear phases. In this study, he tried to examine the seasonality of stock market in India. The study found that daily and monthly seasonality are present in Nifty and Nifty Junior returns.

The analysis of stock market seasonality using daily data, he found Friday Effect in Nifty returns while Nifty Junior returns were statistically significant on Friday, Monday and Wednesday. In case of monthly analysis of returns, the study found that Nifty returns were statistically significant in July, September, December and January. In case of Nifty Junior, June and December months were statistically significant.

The results established that the Indian stock market is not efficient and investors can improve their returns by timing their investment. She studied whether Indian stock market returns were correlated to the stock market returns of other selected Asian Economies or not and compared the distribution of the stock market returns of India with other selected Asian economies. She used the descriptive statistics of the six Asian markets for the period between and Japanese markets were flat during the study period.

Volatility as measured by standard deviation and its square, the variance was the least observed in the Malaysian markets. Indian markets showed maximum variance. Kurtosis, as referred to as the volatility of the volatility, measures the peakedness of the distribution. The weekly returns of Hong Kong and Malaysian markets were more near to their respective means, as their kurtosis were nearing 3.

Weekly returns of Indian stock markets indicate a low peak with a fat mid range on either side. The kurtosis of India is platykurtic which signifies the normal The study uses Jarque-Bera test to examine the normal distribution. The aim is to help the investors current and potential understand the impact of important happenings on the Indian Stock exchange. This is especially relevant in the current scenario when the financial markets across the globe are getting integrated into one big market and the impact of one exchange on the other exchanges.

The data for the above mentioned stock indices is available at the corresponding stock exchanges used in the study. The Earlier studied reports area also considered in this study for the purpose of understand the difference in exchanges and thereof. The study considered on qualitative data for the analysis and comparative study is conducted with reference to same. Qualitative Analysis In this section the various stock exchanges have been compared on the following parameters: Market Capitalization 2.

Trading Mechanism These parameters are used to look at selected important aspects of any stock exchange viz the market capitalization gives an idea about the size of the respective exchanges whereas the number of listed securities acts as an indicator for the volume and liquidity of any exchange.

The listing agreements take care of the governance issue, while circuit filters give an insight into the risk management framework of the said exchange. Finally, the efficiency of a stock exchange has been measured in terms of its settlement process. Scope of the study is to understand the difference between the selected international stock exchange and Indian stock exchange.

This study is based on Historical and secondary data which leads to variation in present and previous scenario. This study is limited to selected stock exchanges. This study is purely based on secondary data and the qualitative approach is used for the study. It shows the current stock price multiplied by the number of outstanding shares.

It is commonly referred to as Market cap. It is calculated by multiplying the number of common shares with the current price of those shares. This term is often confused with capitalization, which is the total amount of funds used to finance a firm's balance sheet and is calculated as market capitalization plus debt book or market value plus preferred stock. While there are no strong definitions for market cap categorizations, a few terms are frequently used to group companies based on its capitalization.

The table below shows the market capitalization of ten stock markets in the world. Based on the below study, it can be observed that India is 9th in the world ranking of Market capitalization. This is in spite of having the third largest investor base, after Japan and USA, and having the largest number of companies listed. United States leads the list of countries with the highest market capitalization.

It is interesting to note that the total market capitalization of all the companies listed on the New York Stock Exchange is greater than the amount of money in the United States. Indian stock exchanges and Korean are far from their competition in Market capitalization by the ranking. India secured 9th position where Korea is on 12th rank. Indian stock exchange need to focus on the prospectus of increase in market capitalization by the attraction of more people in Invest in stock market.

Social awareness program for the Indian investors as well as policies of tax relief can also attract investor to invest in stocks. Stock Exchange No. After India, Japan Exchange Group has the highest number of companies listed. Here as per no. Korean stock exchange have listed securities more than and Hong Kong stock exchange have more than NSE is with listed securities more than Here one can say that Indian stock exchanges are more focused on listing of securities capitalization and the number of listing securities are not respondent to each other the US stock exchange have less securities listed but still its market capitalization is more than Indian stock exchanges.

Company with a minimum issue size of Rs. Paid Up capital: Not less than 10 Crores 2. Market Capitalisation: Not less than 25 Crores 3. At least three years track record: The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth. The company has not received any winding up petition accepted by a court. No disciplinary action by other stock exchanges and regulatory authorities in past three years.

Minimum Listing Requirements for companies listed on other stock exchanges. The company should have minimum issued and paid up equity capital of Rs. The Company should have profit making track record for last three years. Minimum net worth of Rs. Minimum market capitalization of the listed capital should be at least two times of the paid up capital. Distribution and Size criteria: A The number of beneficial holders of stock held in "street name" will be considered in addition to the holders of record.

The Exchange will make any necessary check of such holdings that are in the name of Exchange member organizations. B In connection with initial public offerings, spin-offs and carve-outs, the NYSE will accept an undertaking from the company's underwriter to ensure that the offering will meet or exceed the NYSE's standards. E Represents net cash provided by operating activities excluding the changes in working capital or in operating assets and liabilities, as adjusted for various items as defined in Section Average global market capitalization for already existing public companies is represented by the most recent six months of trading history.

In case where the number of shares to be listed is less than 10 thousand units; persons. In case where the number of shares to be listed is 10 thousand units or more but less than 20 thousand units; 1, persons, iii. In case where the number of shares to be listed is 20 thousand units or more; 1, persons. B Number of years since incorporation: 3 years or more have elapsed by the last day of a business year immediately prior to the day of listing application c Amount of profit: The amount of profit for the first year of the latest 2 years was million yen or more; and million yen or more for the latest year, or The amount of profit for the first year of the latest 3 years was million yen or more; million yen or more for the latest Spread of Shareholders: vi.

Public float: viii. No of Shares: At least 1million shares as of application date. B Financial Requirement i. Profit: Must show operating profits, ordinary profits and net profits. Profits for the latest fiscal year should be at least KRW 2. No of years since establishment: Have been operating without interruption for at least 3 years since establishment. The Listing agreements are well defined for each exchanges which helps to listing of companies in the exchange.

Indian listing criteria are well defined and that helps to increase no. US listing criteria are more complex than Indian stock exchange so there are less securities registered as compare to India. Other stock exchanges also have well defined criteria but still that also more complex as compare to Indian stock exchange. A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a market. Crashes are driven by panic as much as by underlying economic factors.

They often follow speculative stock market bubbles such as the dot-com bubble. As a counter measure to the instability of the stock market, various measures were introduced by to avoid huge losses. One such solution is circuit breakers. This was first introduced after Black Monday. This was done with an aim to avert panic in the market and to avoid panic selling. The Circuit Filters operate according to the rules and requirements of the stock Market in question. These circuit breakers, when triggered, bring about a coordinated trading halt in all equity and equity derivative markets nationwide.

In case the movement takes place at or after p. In case movement takes place at or after p. These percentages are translated into absolute points of index variations on a quarterly basis. At the end of each quarter, these absolute points of index variations are revised for the applicability for the next quarter.

The absolute points are calculated based on closing In addition to this, there are also price bands for individual securities. Daily price bands are applicable on securities as below: i. No price bands are applicable on scrips on which derivative products are available or scrips included in indices on which derivative products are available. The price bands for the securities in the Limited Physical Market are the same as those applicable for the securities in the Normal Market.

For scrips 53 scrips on which derivative products are available and scrips which are included in indices on which derivative products are available, there is no circuit filter. However, the Exchange has imposed dummy circuit fitters on these scrips to avoid punching error, if any. Market Wide Circuit Breakers These circuit breakers will bring about a coordinated trading halt in both Equity and Derivative market. The percentage movements are calculated on the closing index value of the quarter.

These percentages are translated into absolute points of index variation rounded off to the nearest 25 points in case of SENSEX. At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter. The absolute points of SENSEX variation triggering market wide circuit breaker for a specified time period for any day of the quarter is informed by the Exchange through Press Release from time to time.

Limits do not apply to the last 30 minutes of the trading day, unless the minute cooling period spills into that time frame. There are no limits for the last day of trading for the contract nearest to expiry. Trading Halt In such a case, the concerned corporation is asked to make an inquiry into such rumors or reports and disclose findings.

The levels are calculated by the NYSE at the beginning of each calendar quarter, using the average closing value of the DJIA for the preceding month and each trigger is rounded to the nearest 50 points. For the third quarter , the following triggers are in place.

The trading, which resumes by periodic call auction where the orders submitted during the first 10 minutes after the trading halt ended, are matched at a single price. Trading Halt In order to protect investors, when, due to rumors or reports on the matters e. There are two circuit breakers which last for only 15 minutes after the price limit is hit. Here In all the stock exchanges circuit filter criteria is well defined which helps to prevents huge market drops in critical economical events.

Circuit filters are well defined to in every stock exchange as per their functions. The member inputs, in the NEAT system, the details of his order such as the quantities and prices of securities at which he desires to transact. The transaction is executed as soon as it finds a matching sale or buy order from a counter party. This has resulted in a considerable reduction in time spent, cost and risk of error, as well as frauds, resulting in improved operational efficiency.

It allows for faster incorporation of price sensitive information into prevailing prices, as the market participants can see the full market on real time basis. This increases informational efficiency and makes the market more transparent. Further, the system allows a large number of participants, irrespective of their geographical locations, to trade with one another simultaneously, improving the depth and liquidity of the market.

A single consolidated order book for each stock The book stores only limit orders, which are orders to buy or sell shares at a stated quantity and stated price, are executed only if the price quantity conditions match. Thus, provides equal access to all the investors. A perfect audit trail, which helps to resolve disputes by logging in the trade execution process in entirety, is also provided. The trading platform of the CM segment of NSE is accessed not only from the computer terminals, but also from the personal computers of the investors through the Internet and from the hand-held devices through WAP.

These brokers should obtain the permission from their respective stock exchanges. In February , NSE became the first exchange in the country to provide web-based access to investors to trade directly on the Exchange followed by BSE in March The orders originating from the PCs of investors are routed through the internet to the trading terminals of the designated brokers with whom they have relations and further to the exchange.

After these orders are matched, the transaction is executed and the investors get the confirmation directly on their PCs. NSE is the only exchange to provide access to its order book through the hand held devices, which use WAP technology. This particularly helps those retail investors, who are mobile and want to trade from any place. This means that any trade taking place on Monday, gets settled by Wednesday. Delivery of shares must be made in dematerialized form, and each It is a pivot around which every activity of the capital market revolves.

In the absence of the stock exchange, the people with savings would hardly invest in corporate securities for which there would be no liquidity buying and selling facility. Corporate investments from the general public would have been thus lower. Stock exchanges thus represent the market place for buying and selling of securities and ensuring liquidity to them in the interest of the investors. Securities are traded in three different ways in stock exchanges ring, namely—settlement basis, spot basis and cash basis.

They are traded on cash basis or delivery basis and cannot be traded on settlement basis. The actual delivery of securities and payment has to be made on or before the settlement date fixed in the case of cash basis trading. As far as spot trading is concerned the actual delivery of securities must be made to the buying broker within 48 hours of the contract.

It is expected that the seller would be paid by the buyer immediately on delivery of securities. All securities whether the specified list or cash list can be traded on spot basis or cash basis. Trading at both the exchanges takes place through an open electronic limit order book, in which order matching is done by the trading computer. There are no market makers or specialists and the entire process is order-driven, which means that market orders placed by investors are automatically matched with the best limit orders.

As a result, buyers and sellers remain anonymous. The advantage of an order driven market is that it brings more transparency, by displaying all buy and sell orders in the trading system. However, in the absence of market makers, there is no guarantee that orders will be executed. Institutional investors can also take advantage of the direct market access DMA option, in which they use trading terminals provided by brokers for placing orders directly into the stock market trading system.

During the Pre-opening Session and the Closing Auction Session, the system accepts at-auction and at-auction limit orders only. During the Continuous Trading Session, the system accepts limit, enhanced limit and special limit orders only, with an option for an "All-or-Nothing Qualifier" that confines the order to be either executed immediately in full or rejected, without being written into the central order book.

For details of the trading system and associated infrastructure, please visit the Infrastructure section. The maximum number of outstanding orders per broker ID has been removed while the number of orders in each price queue has been increased to 20, effective 29 January Orders are accumulated over a certain period of time and matched at a pre-defined order matching period.

Orders are matched in order type, price and time priority at- auction orders carry a higher matching priority , at the final Indicative Equilibrium Price "IEP". The Pre-opening Session was introduced in March Continuous Trading Session The maximum order size for automatch stocks is 3, board lots. Orders are continuously executed in strict price and time priority. An order Closing Auction Session The Closing Auction Session CAS is applicable to selected securities and consists of four periods: the Reference Price fixing period, order input period, no-cancellation period, and random closing period.

During the no-cancellation period, prices of new at-auction limit orders must be between the lowest ask and highest bid of the order book, and no orders can be amended or cancelled. During the random closing period, the order rules from the no-cancellation period apply and the market closes randomly within two minutes. Order matching is based on order type, price and then time priority at-auction orders carry a higher matching priority. For Pre-opening Session, the order price input into the OTP-C cannot deviate 9 times or more from the previous closing price or the nominal price as the case may be , if available.

Stage 2 price limit is applicable to the No Cancellation Period and Random Closing Period and is set at the highest bid and the lowest ask of the order book at the end of the Order Input Period. It enjoys a higher order matching priority than an at-auction limit order and will be matched in time priority at the final IEP.

Any outstanding at-auction orders after the end of the Pre-opening Session will be cancelled before the commencement of the Continuous Trading Session. At-auction limit order An at-auction limit order is an order with a specified price. An at-auction limit order with a specified price at or more competitive than the final IEP in case of buying, the specified price is equal to or higher than the final IEP, or in case of selling, the specified price is equal to or lower than the final IEP may be matched at the final IEP subject to availability of eligible matching order on the opposite side.

An at-auction limit order will be matched in price and time priority at the final IEP. No at-auction limit order will be matched at a price worse than the final IEP. The matching of applicable at-auction orders and at-auction limit orders will occur at the Reference Price instead and the matching mechanism will be same as matching at the Any outstanding at-auction limit orders at the end of the Pre-opening Session will be carried forward to the Continuous Trading Session and treated as limit orders provided that the specified price of that at-auction limit order does not deviate 9 times or more from the nominal price.

Such orders will be put in the price queue of the input price. Transactions by the Zarabamethod are executed among the matching orders according to the price and time priority rule at a price where the lowest offer and the highest bid are matched. All the market orders that are not executed by the Itayose method are invalid. Therefore, market orders are not necessarily executed.

Market Information System generates and disseminates various market data including prices, quotations, and market indices to be used as investment references. Every trade in securities markets will be officially complete when settlements between investors and respective securities companies Clearing Members and settlements between Exchange and its clearing members are complete. Sudarvel1 Dr.

Velmurugan2 Ph. The focus of the literature survey is to review these various stock market anomalies that were experimental over time in different stock indices in India. Indian stock market indices have been studied and analysed to find evidence for the existence of these anomalies in Indian stock markets.

Furthermore, future stock prices follow a random walk pattern, they cannot be predicted. However, there does seem to be some market patterns that can lead to abnormal returns, thus violating the efficient market hypothesis, particularly the semi-strong EMH, which predicates that abnormal returns cannot be earned by learning all of the available public information on companies and their stocks, and any other variables that may affect stock prices, such as economic factors.

Hence, the semi-strong EMH would seem to negate the value of fundamental analysis. Market Anomalies are market patterns that do seem to lead to abnormal returns more often than not, and since some of these patterns are based on information in financial reports, market anomalies present a challenge to the semi-strong form of the EMH, and indicate that fundamental analysis does have some value for the individual investor.

Prices should react quickly and precisely to new arriving info into the stock market; 2. Price changes should be random and unpredictable prices follow a random walk ; 3. It is impossible to find profitable trading strategies on risk-adjusted basis; 4. Knowledgeable investors do not perform better than average investors. As EMH states that in an active market which consists of a large number of well-informed and objective investors, stocks will be appropriately priced by reflecting all available information.

If so, no one can beat the market except by taking a higher risk. Sudarvel et al. The study considers seasonal or monthly stock returns in several developed and emerging markets. This study also investigates the existence of seasonality in Indian markets.

The result of the study observes that investor during the end of the year, sell shares whose value have declined to book losses in order to reduce their taxes. Major findings of the study is Return for the month of January, February, August and December higher than other months return Maximum returns in the month of February compared to the other months, whereas, return during the months of March, April, May, September, October and November shows a negative trend.

Time Series Regression Model disclose that the return for the month of March, July and October are amongst the lowest are compared to the month of January, which clearly indicates the presence of seasonality in the Sensex returns. This study result does confirm the January effect of stock return in India. The result of the study indicates that stock returns in India are not entirely random.

This study confirms that the Indian stock market may not efficient. As a consequence perhaps investors can improve their return by timings their investments. The data required for the study is secondary nature. The result of the study the Indian Stock Market does manifest seasonality in their returns. The data for this study have been taken from prowess data base. The daily returns were calculated from April to April The collected data are analysed by making use of regression.

Monday returns remained less than other days, and Friday remained greater than other days. The limitations of the study is the author considers cyclic factor rather than fundamental factors and consider only weekly variation in stock returns. Seasonal variation, Monthly variations or intraday variations in returns have not been considered.

Ashish Garg, B. Second period Monday is lower average return of the rest of the days. Monday effect exists in Indian stock market but not in the US. Semi-monthly effect to compare the average return of first half of the month, and average return of second half of the month. BSE ltd first half month return higher than the second half month.

Semi-monthly effect is same for the both of the Indian and US market. Ending for this study efficiency of stock market closely related to the allocation of scare capital resources. Both Indian and US market turn of month effect is significantly. Monthly effect upward pressure of stock market and result higher return in January month. But in case of India in the month of March is tax saving month, therefore anomaly exist in Indian stock market.

Result for this study the presence of anomalies indicates stock market efficiency therefore. Nageswari, DR. Selvam and DR. The study has been carried out to find how bad news and good news is reflected stock prices. The result of the study disclose that highest mean return was recorded for the first half of the month than the rest of the days in the month. Result of the study also shows that the semi- month effect and turn of the month effect was not prevalent in the Indian stock market during the study period.

By analysing these anomalies in Indian stock market it is concluded that most of the cash flow entered in the Indian stock market in first few days of the month, as a result indices stock prices to move upward. ANOVA result discloses that there is no significant difference in mean monthly return between the different months.

Duncan post hoc test indicates that March returns were significantly lower than those of November, December, and August. Negative return is noticed during March, as investor in order to reduce their stock burden prefers to re-invest their shares. Over than nifty for sample period. Volatility as measured by standard deviations of the returns of the sample period.

Nifty and junior Nifty 6.