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SPEECH
Indian
Banking: The Challenges Ahead
- - V Leeladhar
© 2005 Reserve Bank of India (www.rbi.org.in). Text
of the Third Natarajan Memorial Lecture delivered at
Chennai on November 14, 2005.
BOOK
REVIEW
Options
and Futures: An Indian Perspective
- - Dinesh C Patwari and Anshul Bhargava
With
the introduction of derivative market in India steps
were taken to make our financial markets strong, efficient,
sound and stable. From 1995 onwards, a wide range of
products or instruments have been introduced in India
on the subject of derivatives markets. The basket of
derivatives is expected to expand based on various instruments
available globally. Such instruments are intended to
allow market traders to maximize returns which will
simultaneously enable them to limit losses.
© 2005 Dinesh C Patwari and Anshul Bhargava. All Rights
Reserved. IUP holds the copyright
for the review.
COVER
STORY
Risk
Management: Isnt it Also a Risk?
- - GRK Murty
Risk
management is just as common to our everyday existence
as the very concept of our `self-preservation. It is
very much a part of human psyche, yet so eluding. When
one enquires with passengers in an airplane that is
wildly rocking flying through turbulence zone, to ascertain
if all of them have an equal degree of anxiety, some
may sound highly anxious while some others coolly snooze
off. Event is same but the effect is different from
person to person. Is it because each person is ascribing
his own value to risk? Obviously
© 2006 IUP . All Rights Reserved
COVER
STORY
The
Behavioral Side of Risk Management
- - Arindam Banerjee
The
simplest and comprehensive definition of risk is - the
probability of non-occurrence of an event or a set of
events. Thus risk management is the affair of managing
the same. The obvious question that crops up in the
mind is, how does one proceed with managing something
that is ex-ante in nature? Several subjective biases
can lead to enormous biases in prediction resulting
in erroneous deductions. This article discuses the behavioral
aspect of risk management and how cognitive biases play
a crucial role in investment decision-making.
© 2006 IUP . All Rights Reserved
TREASURY
FDI
in Russia: Issues and Perspectives
- - Vinay Kumar
The
wave of Foreign Direct Investment in Russia started
during 1990s, when the Law on Joint Ventures with firms
from capitalist countries was passed. Initially, there
was not much foreign investment. Later, in the year
2003, Russia attracted huge FDI and was placed third
in FDI projects in the world, beating both China and
the US. This article primarily focuses on FDI in Russia
and also discusses some relevant issues.
© 2006 IUP . All Rights Reserved
RISK
SPVs:
Making Tomorrow Brighter and Brighter
- - KV Saraswathi
Special
Purpose Vehicles (SPVs) are legal entities created for
a particular purpose. They are presently used for structuring
a wide range of capital market products across the globe.
By financing the infrastructure firm in pieces, through
on-balance sheet and through off-balance sheet, control
rights to the business decisions are separated from
those of financial decisions. This article discuses
about SPVs in relation to securitization.
© 2006 IUP . All Rights Reserved
RISK
Securitization
and its Implication for India
- - Dilip Dasgupta
Securitization
is one of the latest financial innovations in Indian
markets. Globally, it has occupied an important technique
for bundling assets and segregating the risks of various
marketable securities. This article discuses the present
nascent state of securitization market in India and
brings out the importance and recent developments to
highlight the samespecifically for the banking and infrastructure
sectors.
© 2006 IUP . All Rights Reserved
RISK
Inflation
Bonds and Inflation Derivatives: An Overview
- - Amandio FC da Silva
A general theory for pricing and hedging of inflation-linked
derivatives is outperformed in a complete market setting
without any arbitrage. The market consisting of nominal
discount bonds and real discount bonds, together with
the consumer price index, acts as a kind of exchange
rate to determine the nominal payout of a real discount
bond at the time of maturity. This article presents
an overview of inflation bonds and inflation derivatives.
© 2006 IUP . All Rights Reserved
RISK
Do
Indian Equity Derivatives Markets Need a Buy Write Index?
- - Alaap Shah
Indian
equity market added one more feather to its cap by starting
equity derivatives segment in the year 2000. Since then
derivatives market has outperformed cash market on many
counts. As equity derivatives market further evolves,
it is sure to witness many surprises that are yet to
be unveiled. This article primarily discuses about the
Indian equity derivatives market and the need to buy
these derivatives.
© 2006 IUP . All Rights Reserved
FOREX
World
Trade Organization: India and the Emerging Economy
- - Kalyan Sandilya J
The
post-Second World War period has seen a growing interest
in integrating national economies at regional levels.
Much of the effort was made to form regional groupings,
trade blocks and treaties which have often floundered
due to political differences and unforeseen hurdles.
This article primarily discuses about the structure
of WTO and its impact on emerging economies.
© 2006 IUP . All Rights Reserved.
FOREX
Revaluation
of the Yuan: A Perspective
- - Madhavankutty G
Over
the past decade or so, yuan has been pegged tightly
to the dollar. As China strongly believes in its revaluation
much of its financial and economic circles would affect
the central bankers to initiate efforts in liberalizing
their currency efforts. In moving towards a free float
of its currency, China is also going to have a look
at moving towards a more open, transparent and free
market economy.
© 2006 IUP . All Rights Reserved
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