Exchange In India Research Articles

Seeking the treated: The impact of mobile extension on farmer information exchange in India

Do digital agricultural services ‘disrupt’ in-person peer interactions that generate and spread local knowledge? To investigate, I randomize access to a mobile phone-based agricultural extension service and find that while it reduces reliance on peer agricultural advice, it does not crowd-out peer interactions. Instead, treated farmers are more likely to recommend inputs to their peers, who, in turn, prioritize interacting with them. Consequently, exposure to the treatment, directly or via peers, increases willingness-to-pay for the service. Overall, evidence on complementarities between treated respondents suggest ICT-based services may encourage peer interactions and information exchange at scale.

Value relevance of earnings and book values during IFRS convergence period in India

PurposeThe authors aim to examine the association between earnings and book values with stock prices in India during the IFRS convergence period because, in India, the literature is yet to investigate more about IFRS convergence and its impact on the financial reporting environment. Hence, the purpose of this study is to assess the influence of IFRS conversion on the value relevance of accounting information throughout the IFRS conversion period.Design/methodology/approachThe current paper endeavors to investigate the earnings and book values affiliation with stock prices in India during the IFRS convergence period by employing a price valuation model (Ohlson’s Model). The study assembled a total of 3,440 firm-year observations from the National Stock Exchange in India over five years, which signifies the IFRS conversion period (2015–2019).FindingsThe research findings displayed that accounting information such as earnings, book value has value relevance throughout the IFRS enforcement period; however, the value relevance has been increasing for earnings and showing a descending association for book value. The significant explanatory power of earnings reveals that market participants give more weightage to earnings than book values. Overall, the findings of the study will facilitate improved decision making for both, capital market participants and regulators, by highlighting the key areas for improvement in the Indian capital market.Research limitations/implicationsThis study also extends a discussion on the subject in those economies where regulations are weak and the market is imperfect with asymmetrical information.Practical implicationsThe research outcome provides for empirical shreds of evidence regarding the value relevance of accounting information during IFRS enforcement in India, where IFRS is a recent emergence.Social implicationsThis paper examines the value relevance of accounting information during IFRS convergence period in India which will felicitate improved decision making for both, market regulators and investors.Originality/valueThis research is the first factual documentation regarding value relevance of earnings and book value during the IFRS enforcement process in India with the most recent data and contributes to the limited study conducted in developing nations like India.

Volatility Analysis of Select Blue Chip Companies Listed in Nifty 50 Index of India

The stock market is sometimes referred to as a "mirror" of the country's economic health since it acts a barometer to measure the economic growth. A potential buyer sets a price, known as an offer price, for a share of stock in the stock market, and a potential seller asks for a fixed price for it. When buying or selling in the market, both the buyer and the seller agree on the asking price or bid price. A trade occurs when the bid and ask prices are equal. As a result, stock valuation is extremely important in day-to-day stock exchange transactions. A company's success is reflected in its stock price. Companies with strong results are thought to have strong demand for their stock, which will drive up the price, and vice versa. Stock price fluctuations are influenced by rumours, speculation, and short-selling, among other manipulation practices. The present research on the above backdrop will make an analysis on the volatility of blue chip companies listed in the NIFTY 50 of National Stock Exchange in India.

A study of problems of stock exchange in India

A study of problems of stock exchange in India

Impact of Globalization on Indian Stock Market

In the era of globalization, stock markets vastly expand the scope and complexity of their activities and are facing a constantly changing and rapidly complex regulatory enjoinment. The stock market is one of the most important indicators in the field of an economy. This paper aims to highlight the impact of globalization on the Indian stock market. The stock market is one of the most popular platforms in the world of trading and investments without any barriers. Daily crores of traders and investors trade directly or indirectly in various stock exchanges. All such trades are processed through an entity known as a stock exchange. There are many stock exchanges in India that trade crores every working day. This paper explores how globalization also contributes to the development of Indian Stock Markets.

Thy Governance Matters: A Study on Governance Practices of Stock Exchanges in India

Historically the responsibility of ushering the practices of good governance, transparent management and effective control process for the corporate houses rests under the jurisdiction of those stock exchanges where the shares of the companies are listed. However, the very question of the management and governance of these stock exchange houses are always under the scanner across the globe in view of the limitations of their historic pattern of member-owned ‘non-profit’ kind of mutual organizational structure. The lacunae of that typical organizational structure was that their activities are primarily targeted towards members interests as well as that set up was not immune fully from the malice like insider trading and conflict of interest for office bearers and traders. In view of this following the global pattern the Union Government of India had decided for corporatization of stock exchanges thereby creating a separation of ownership, management and trading membership of stock exchanges which is formally known as demutualization and corporatization of stock exchanges. A committee was set up by the SEBI under the chairmanship of Justice M.H. Kania which had submitted the report in 2002 recommending corporatizations and demutualization of stock exchanges which become mandatory for every stock exchange in India to implement within a stipulated period of time. Against this backdrop the present study is conducted to make an overview of the present state of governance affairs of major stock exchanges in India. It has been observed that the corporatization and governance practices of the major bourses in India had followed governance practices like separation of the post of chairman and CEO, inclusion of public interest directors as outside directors in the board, adherence to code of conducts for directors, organizing frequent meetings of directors etc.

Predictive Analysis of Mutual Fund Investment Using Sustainability Index Evidence from Indian Stock Market

This study is an attempt to predict the price movement between S & P BSE GREENEX and selected open ended equity mutual fund categories traded at stock exchanges in India. Daily data over the last 5 years were taken and the sample period is from January 1, 2016 to January 1, 2021. The authors use a set of econometric models such as dynamic lag vector auto regression stochastic process model, Cointegration, Granger causality test and Variance Decomposition to substantiate the existence of long run and short run association between the dependent and independent variables selected. The study shows clear evidences of cointegration between S & P BSE GREENEX and selected mutual fund categories, which is an indication of the existence of long run equilibrium relationship between the variables. The empirical investigation also proved the traces of bi-directional and uni-directional Granger- casual effect between the variables. The findings of the study show that S & P BSE GREENEX and large cap mutual fund categories have strong price movement relationship compared to mid-cap funds, which shows a marginal relationship and relatively very weak relationship with small cap funds.

Paired Kidney Exchange in India: Future Potential and Challenges Based on the Experience at a Single Center.

Paired Kidney Exchange in India: Future Potential and Challenges Based on the Experience at a Single Center.

A Study on Unfolding Asymmetric Volatility: A Case Study of National Stock Exchange in India

A Study on Unfolding Asymmetric Volatility: A Case Study of National Stock Exchange in India

PERFORMANCE OF NIFTY 50 EXCHANGE TRADED FUNDS

The study evaluated the performance of selected Nifty 50 ETFs tracking Nifty 50 Index listed in National Stock Exchange in India during a period of six years starting from 1st April, 2014 to 31st March, 2020. The performance of ETFs is measured using Average Daily Returns, CAGR, HPR, Standard Deviation, Tracking Error, R squared and Beta. It is found that there is difference in the risk-return pattern of Nifty 50 ETFs and its index Nifty 50. Aditya Birla Nifty ETF is the performing fund among the selected ETFs.

Working Capital Management and Its Impact on Profitability in Tyre Industry: A Study of Selected Companies

Purpose: The main aim of this article is to find out the working capital management and its impact on profitability in Tyre Industry of selected companies which are listed on stock exchange in India. Approach/ Methodology/ Design: For the study, a time span of 8 years from 2011-12 to 2018-19 is considered, and based on it, any relation of net profit margin ratio and working capital components like current ratio, quick ratio, inventory turnover ratio, working capital turnover ratio is considered. The sample is selected based on higher market capitalisation during the study period. Regression analysis is also employed to investigate the impact of WCM on corporate profitability. Findings: The major findings of this study indicate that the profitability of Balkrishana was good compared to the other companies. The working capital of Ceat shows highly positive working capital management, whereas Apollo shows negative working capital management. These results were identified with the help of accounting tool as Ratio analysis and statistical tools as Regression analysis and ANOVA test for selected data. Practical Implication: The study examines the scenario of tyre industry with the help of working capital management in selected companies. The results of the study could be an indicator of the performance of the selected companies. Originality/Value: This paper provides some key insights to health and efficiency of the selected companies. The working capital ratios are indicative of good working capital management, leading to identifying issue in financial management and eventually improving the performance of the tyre industry.

Price dissemination of international and domestic commodity markets

The major international commodity exchanges in which more trading of commodities takes place acts as price informative market apart from the producing countries market. The efficiency of national commodities market can be achieved when the market incorporates price information from these major commodity exchanges across the globe. Commodity futures market in general is said to inculcate all available information related to it from the spot market. Recently, the regulating authorities of the commodity exchanges in India have permitted 'eligible foreign entities' to participate in commodity derivatives markets for hedging their exposure. However, global entities speculate commodity prices through various commodity funds and have been considered as a popular financial investment rather than hedging (Mahalakshmi et al., 2012a). Thereby, commodity derivatives market imbibes international price information. Therefore, this paper deals with the objective of analysing the causal relationship that may exist among domestic spot, futures and overseas commodity prices.

A Study on the Impact of Corporate Social Responsibility on Financial Performance of Companies in India

The main aim of this study is to investigate the impact of corporate social responsibility (CSR) on the financial performance of selected companies listed in the BSE, formerly known as the Bombay Stock Exchange in India. This study is purely based upon the secondary data collected from companies’ annual reports and sustainability reports for last three years ranging from 2016–2017 to 2018–2019. The results indicate that the involvement in socially responsible initiatives has a significantly positive effect on the financial performance of the firms. These findings provide insights to the management to assimilate firm’s CSR initiatives with its strategic business policies and, thus, to renovate the business philosophy from a traditional profit-oriented approach to a socially responsible approach.

Corporate Governance and Risk Bundling: Evidence from Indian Companies

Corporate Governance has acquired a significant place in the national economies globally. Quality of governance impacts the business confidence index and resource mobilizations in the global marketplace. In various countries there is a conventional dominance of promoters or majority shareholders on the board of companies which implicates various propensities of risks and forms of risk cultures, making the problem of governance typical and critical for the regulators. Our paper examines the risk behaviour of firms in context of CG practices and creates distinct bundles of companies with specific risk cultures. Using a sample of 10 years’ panel data of 84 companies listed on the National Stock Exchange in India (NSE) for selected risk and CG variables, we measure the influence of CG measures on the risk propensity and behaviour and based on combinations of selected CG practices formulated the risk bundles. Based on the derived bundles of risk behaviour, regulators and policymakers can make informed decisions.

From Mutual Association to Demutualisation: A Paradigm Shift in the Ownership and Governance of Stock Exchanges in India

A group dominated by brokers prepared a platform where they can trade in securities of listed companies. Year after year that group got larger and no. of brokers associated themselves which later became stock exchanges. However, with little capital, rising competition, and almost negligible governance, investor’s wealth and confidence over the stock exchanges decreased. Considering such a situation, the Indian Govt. came up with a series of amendments in 2002-2005 to the existing laws so to inspire a sense of confidence among the investors. These amendments not only made the demutualization of stock exchanges compulsory but also streamlined the process of corporate governance. However, this was not the first time when a govt. has tried regulating Indian stock exchanges. The past record shows that even colonial govt. attempted to regulate the Bombay Stock Exchange and the trading done therein. This paper attempts to do a comprehensive study of the changes in the ownership structure from a not-for-profit member-owned organization to a shareholder-owned organization and the role of governments (including the pre-independence governments) in regulating the stock exchanges in India. The primary contribution this study seeks to make in the sphere of corporate governance related to the process of demutualization of Indian stock exchanges. This shall not only help in improving investor’s perception of the stock exchanges but shall also promote the reliability and confidence of investors.

Applying PROMETHEE for Ranking Investment Alternatives in the Context of Social Stock Exchange

The political situation of India is waiting for an upcoming bill on social stock exchange. Although the concept is new in India but the concept is not virgin in the entire world. Several countries of the world are well aware of such concept and applied social stock exchange in their economy successfully. The concept of social stock exchange is well-practiced in countries like Canada, Singapore, South Africa, United Kingdom. Before the introduction of such a step as discussed in various news media and articles, investigation into various opportunities and threats for such policy are required to be performed in the Indian context for social impact investments. Under this context, this paper presents a scenario of choosing the best option for an individual investor, from among various investment alternatives after the introduction of social stock exchange in India. A multicriteria decision analysis model based on PROMETHEE has been applied for the purpose of ranking the alternatives under a set of selected criteria such as tax benefits, return from organizations and risk involved. The technique helps to rank the alternatives in the order of preference so as to enable an individual investor to choose the best one among all the possible alternatives. A numerical example shows the application of the ranking problem as presented in this paper.

Dematerialisation of Securities in Indian Capital Market; A Paradigm Shift through Depository System

Dematerialization has initiated a new trend in securities trading and settlement. Indian capital market has embraced technological sophistication by permitting electronic trading in securities. Depositors Act, 1996 has facilitated the setting up of depositories and dematerialization of securities. This paper attempts to evaluate the progress of dematerialization in India. For the study, data has been used that of the National Stock Exchange of India Ltd. (NSE), the largest stock exchange in India.

Application of MCDA Technique for Investment Alternatives Under the Context of Social Impact Investment

Recent discussions on upcoming industrial and social reform policies have brought the concept of social stock exchange in India. Before the introduction of such a step as discussed in various news media and articles, investigation into various opportunities and threats for such policy are required to be performed in the Indian context. The concept of social stock exchange is well-practiced in countries like Canada, Singapore, South Africa, United Kingdom. Under this context, this paper presents a scenario of choosing the best option for an individual investor, from among various investment alternatives under the implementation of social stock exchange in India. A multi-criteria decision analysis model has been applied for the purpose in order to rank the alternatives under a set of criteria such as tax benefits, return from organizations and risk involved. The proposed multi-criteria technique helps to rank the alternatives in the order of preference so that an individual can choose the best one among the alternatives. The scenario for an individual choice is an instance of various situations to be faced by an investor under the introduction of social stock exchange. A numerical example shows the application of the ranking problem as presented in this paper.

Dispute Resolution on Unauthorized Liquidation of Futures Positions at the Leading Stock Exchange in India: A Case Study

The paper studies compliances of Futures Trading rules and regulations of the Stock Exchange .in the derivate market in India. The paper applies case method approach to study the trading practices of trading members of the Exchanges. It investigates the derivative market’s misuses and abuses by the trading members of the Exchange. The paper provides guidance for the appropriate regulatory framework to curtail violations of rules and regulations in Indian derivative market, and enables the investor protection. The results may be generalized in the emerging markets. Hence, researchers are encouraged to study results further in other developed countries. The paper finds that these practices are not only violation of trading rules of the Stock Exchange but also unfair and unethical trading practices. The research findings and results may lack generalizability in a case study approach.

Volatility and Firm Size of Banking Sector of National Stock Exchange in India

The paper examines the relationship between the stock market volatility and returns, volatility clustering, leverage effect and the persistence of volatility for the banking sector of the National Stock Exchange (NSE) in India for the period from 2005-06 to 2013-14. The study further investigates the impact of firm size and volatility of returns. The GARCH-M model is used to examine the volatility clustering and persistence of volatility and the relationship between returns and volatility. The EGARCH model is used to examine the asymmetric effect. A panel regression is estimated to show the relationship among firm size, volatility and returns. The study reveals that the volatility in all the banking sector firms exhibits the characteristics like volatility clustering, asymmetry effect and persistence of volatility in their daily returns. The study also finds the existence of leverage effect in ABL, BOI, CBL, IDBI, ILB, PNB, SBI, YSB and CNX Bank indicating that the negative shocks or bad news have more impact on volatility than that of positive shocks or good news. The relationship between returns and volatility is statistically significant for CBL, ICICI, INGV, J&K and KMB. The study also finds significant small size effect on returns.