Capital Market Regulation
&
Development
1
17-Dec-2015
National Convention
on
Gopal Krishna Agarwal
Member Central Council,...
Financial Sector Legislation Reform
Commission (FSLRC)
• The financial framework governing the financial markets has been
...
Indian Financial Code (IFC)
• Financial regulating architecture featuring seven agencies and not
unified financial regulat...
FSLRC Recommendations…
Recommendation on regulation making process
• Regulator would be required to
Articulate the object...
Financial Sector Development Council
(FSDC)
• Constitution – Chairman of RBI/SEBI/FM/IRDA/PFRDA and
Secretaries of Ministr...
Union Budget 2015-16
Task Force on
• Financial Data Management Center (FDMC)
• Financial Sector Appellate Tribunal (FSAT)
...
FMC MERGER with SEBI – Expectations
Post Merger
• New Products
 Freight
 Weather
 Electricity
• Options Trading
• Parti...
FMC MERGER with SEBI – Challenges
• Regulatory Vaccum
Spot Market
• Government primary aim is to regulate commodity price...
Recent Developments
• Signing MOU with European Regulators - 27 Members State on 28th
July 2014
• Multilateral Competent A...
Macroeconomic Outlook
• Projected GDP growth rate in 2015-16: 7.8% .
• India to be the fastest growing major economy in th...
• India a bright spot in a slowing world economy: IMF.
• India occupies the topmost position globally in terms of greenfie...
• In the latest global competitiveness ranking of the World Economic
Forum (WEF) India is ranked 55 out of 140 countries, ...
Indian Capital Market: Overview
• Largest number of listed companies in the world–5624 as of 31st Mar’
2015 (BSE).
• 1st (...
Indian Capital Market - Some selected
figures
Year/ Month
Capital Raised
from the Primary
Market through
Public and Rights...
Investor Education Initiatives in India
Investor education initiatives in India are at 5 levels.
• SEBI (Securities and Ex...
THANK YOU
16
Gopal Krishna Agarwal
Member Central Council, ICSI
gopalagarwal@hotmail.com
of 16

National Convention on Capital Market Regulation & Development - Gopal Krishna Agarwal

National Convention on Capital Market Regulation & Development
Published on: Mar 3, 2016
Published in: Economy & Finance      
Source: www.slideshare.net


Transcripts - National Convention on Capital Market Regulation & Development - Gopal Krishna Agarwal

  • 1. Capital Market Regulation & Development 1 17-Dec-2015 National Convention on Gopal Krishna Agarwal Member Central Council, ICSI gopalagarwal@hotmail.com
  • 2. Financial Sector Legislation Reform Commission (FSLRC) • The financial framework governing the financial markets has been built up over century. These are 60 acts multiple rules and regulations. • Unintended consequences include regulatory gaps, overlaps, inconsistencies & regulatory arbitrage. • Fragmented regulatory architecture • Has led to a loss of scale and scope that could be available from seamless financial markets with all its attendant benefits of minimizing the intermediary cost. gopalagarwal@hotmail.com 2
  • 3. Indian Financial Code (IFC) • Financial regulating architecture featuring seven agencies and not unified financial regulator • Seven Agencies RBI to continue SEBI/FMC/IRDA/PFRDA to be merged SAT to be subsumed in FSAT Deposit Insurance and Credit Guarantee Corporation (DICGC) to be subsumed into Resolution Corporation New Financial Redressal Agency (FRA) will be created A new debt management office for government created  Public Debt Management Agency (PDMA) FSDC to continue in the statutory framework. gopalagarwal@hotmail.com 3
  • 4. FSLRC Recommendations… Recommendation on regulation making process • Regulator would be required to Articulate the objective of regulation A statement of market failure that the regulation seeks to address Analyze the cost and benefit associated with the regulation A systematic public consultation process Subjecting the regulation to Judicial review gopalagarwal@hotmail.com 4
  • 5. Financial Sector Development Council (FSDC) • Constitution – Chairman of RBI/SEBI/FM/IRDA/PFRDA and Secretaries of Ministries • Role Supervision of Economy Lead regulator - Functioning of Large Conglomerates Inter regulatory coordination Financial sector development issues Financial Literacy Financial inclusion Early warning group gopalagarwal@hotmail.com 5
  • 6. Union Budget 2015-16 Task Force on • Financial Data Management Center (FDMC) • Financial Sector Appellate Tribunal (FSAT) • The Resolution Corporation • Public Debt Management Agency (PDMA) • Financial Redressal Agency (FRA) gopalagarwal@hotmail.com 6
  • 7. FMC MERGER with SEBI – Expectations Post Merger • New Products  Freight  Weather  Electricity • Options Trading • Participation of Banks and Financial Institutions gopalagarwal@hotmail.com 7
  • 8. FMC MERGER with SEBI – Challenges • Regulatory Vaccum Spot Market • Government primary aim is to regulate commodity prices and not leave it to market forces • Policy Adopted are complex MSP (Minimum Support Price) APMC Act Essential Commodity Act Hoarding and black marketer Sales Tax Stamp Duty Octray Cash market of securities are highly organized gopalagarwal@hotmail.com 8
  • 9. Recent Developments • Signing MOU with European Regulators - 27 Members State on 28th July 2014 • Multilateral Competent Authority Agreement (MCAA) on Automatic exchange of information on 3rd June 2015 • Foreign Accounts Tax Compliance Act (FATCA) with US on July 09, 2015 for international tax compliance • SEBI - International Financial Services centers (IFSC) Guidelines 2015 • SEBI’s Complaint Redressal System (SCORES) - platform to approach concerned companies or SEBI • SEBI guidelines on Foreign Portfolio Investment (FPI) and Foreign Institutional Investors (FII) - simplification • SEBI issue and listing of Debt securities by municipalities • SARAL account opening form gopalagarwal@hotmail.com 9
  • 10. Macroeconomic Outlook • Projected GDP growth rate in 2015-16: 7.8% . • India to be the fastest growing major economy in the world- IMF. • Inflation expected to be under the target 6% for the year 2015-16. • A double-digit growth trajectory for the Indian economy over the medium term is very likely. • Successful auction of coal blocks and passing of Mines and Insurance Bills have given hope of continued action on the reform front. 10 gopalagarwal@hotmail.com
  • 11. • India a bright spot in a slowing world economy: IMF. • India occupies the topmost position globally in terms of greenfield foreign direct investment (measured by estimated capital expenditure) in the first half of 2015. • In doing so it has beaten countries like USA and China, the long time global favourites for FDI. • In the World Bank’s ‘Ease of Doing Business’, India has jumped 12 places. India in Global Economy 11 gopalagarwal@hotmail.com
  • 12. • In the latest global competitiveness ranking of the World Economic Forum (WEF) India is ranked 55 out of 140 countries, an improvement of 16 places over last year. • Moody’s changed its outlook for Indian banking sector from negative to stable in Nov’ 2015. • Similar opinion expressed by Fitch and S&P. • India is the eighth best country in the world when it comes to protecting the interests of minority investors. (Source : World Bank) India in Global Economy 12 gopalagarwal@hotmail.com
  • 13. Indian Capital Market: Overview • Largest number of listed companies in the world–5624 as of 31st Mar’ 2015 (BSE). • 1st (NSE) and 5th (BSE) most liquid exchange globally for Index Options. • 3rd (NSE)and 9th (BSE) largest exchange in the world in terms of number of trades in Equity Shares • 2nd and 3rd largest in the world in terms of number of currency futures contracts traded (NSE and BSE resp). • Number of Investor Accounts (March-15): 13.71 million (NSDL) and 9.61 million (CDSL). Market Intermediaries 2011-12 2012-13 2013-14 2014-15 Brokers (Cash Segment) 10,268 10,128 9,411 6,147 Corporate Brokers (Cash Segment) 4,877 5,113 4,917 3,757 Sub-brokers (Cash Segment) 77,141 70,242 51,885 42,351 13 gopalagarwal@hotmail.com Indian Capital Market Overview
  • 14. Indian Capital Market - Some selected figures Year/ Month Capital Raised from the Primary Market through Public and Rights Issues Foreign Portfolio Investment Foreign Portfolio Investment: Cumulative Assets with Mutual Funds at the End of Period Market Capitalization of NSE 2008-09 3.48 -9.84 59.08 89.61 621.91 2009-10 12.20 30.25 89.33 130.20 1274.26 2010-11 14.88 32.23 121.56 130.33 1475.01 2011-12 9.79 18.92 140.48 118.56 1230.88 2012-13 5.98 31.05 171.53 129.35 1150.48 2013-14 9.56 8.88 180.41 141.82 1250.66 2014-15 3.16 45.70 226.10 178.33 1635.50 In billion $ 14 gopalagarwal@hotmail.com
  • 15. Investor Education Initiatives in India Investor education initiatives in India are at 5 levels. • SEBI (Securities and Exchange Board of India) • Exchanges • Ministry of Corporate Affairs • Other Financial Institutions like RBI, IRDA & PFRDA. • ANMI (Association of National Exchanges Members of India) 15 gopalagarwal@hotmail.com
  • 16. THANK YOU 16 Gopal Krishna Agarwal Member Central Council, ICSI gopalagarwal@hotmail.com

Related Documents