TRENDS IN CAPITAL MARKETS AND FINANCIAL INNOVATIONS
Mr.Ch.Satish Kumar
, Dr.R.K.Sawlikar
Indian Depository Receipts (IDR), junk bonds, New Pension Scheme(NPS).
A capital market is a place where both government and companies raise long term funds to trade securities on the bond and the stock market. It consists of both the primary market where new securities are issued among investors, and the secondary markets where already existent securities are traded .Financial innovation has been one of the determinants of the growth of trade in financial services, notably the cross-border supply of these services. Consolidation through mergers and acquisitions particularly in the banking sector has boosted cross-border trade in financial services. Financial innovation is a continuous, dynamic process that entails the creation and subsequent popularization of new financial instruments, as well as new financial technologies, institutions, and markets. Financial innovation has experienced steady growth in the last decades and has arguably transformed the once relationship-focused financial intermediaries. With the advent of technology and deregulation of capital market there is a huge scope for bringing in innovative financial products in the Indian capital market. Indian capital market is largely characterized by the equity market with debt market and derivatives market lurking far-behind. This paper attempts to suggest a few of the innovative products that can be introduced in equity market (IDR, non-voting shares, debt and equity swaps), debt market (inflation linked bonds, junk bonds, specialized debt funds for infrastructure etc.), mutual funds and derivatives (carbon emission index and futures, weather derivatives, credit linked deposits, etc.). It also talks of the new pension scheme (NPS) as an innovative financial product meant for the Indian capital market. All these products or any other product, for that matter, would be beneficial only if it reduces cost, brings transparency and leads to optimal utilization of resources. Thus innovation is the call of the Indian markets but needs to be applied cautiously.
"TRENDS IN CAPITAL MARKETS AND FINANCIAL INNOVATIONS", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.4, Issue 3, page no.603 - 612, March-2019, Available :https://ijsdr.org/papers/IJSDR1903104.pdf
Volume 4
Issue 3,
March-2019
Pages : 603 - 612
Paper Reg. ID: IJSDR_193608
Published Paper Id: IJSDR1903104
Downloads: 000347239
Research Area: Engineering
Country: -, -, -
DOI: http://doi.one/10.1729/Journal.27947
ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: IJSDR(IJ Publication) Janvi Wave
