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March '08
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Rebirth of Short-selling : A Mechanism to Increase Liquidity and Contain Volatility
Effect of the Participatory Notes on Capital Market
Promising Avenues of Investment : Mutual Funds
Real Estate Investment Trusts
Weather Derivative : A Tool for Risk Management in the New Millennium
Ulips Pay in the Long-term
Investor Protection and Growth in Securities Market
Rationing of the Hot IPOs in India and Allocations to Retail Investors
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Rebirth of Short-selling : A Mechanism to Increase Liquidity and Contain Volatility

-- Rajeswari Krishnan and D Nithya

The Securities and Exchange Board of India (Sebi) has permitted the institutional investors to short-sell. This article analyzes the concept of short-selling and its implications for the investors of Indian stock market in the present context of Sebi's efforts to plug the loopholes of the earlier system and launch of Securities Lending and Borrowing (SLB) scheme.

Article Price : Rs.50

Effect of the Participatory Notes on Capital Market

-- Paramita Malakar

The much-debated Participatory Notes (PNs)—an offshore derivative instrument—have been criticized for all recent major stock market crashes, thereby raising concerns of the Sebi and the RBI over their control. Investment through PNs may not always be good. This article tries to focus on several effects of PNs on the Indian capital market.

Article Price : Rs.50

Promising Avenues of Investment : Mutual Funds

-- Rajni Sofat and Rakhi Arora

The article attempts to study the pathways of investment with a specific focus on mutual funds. Its main aim is to explain the investment avenues as pathways of wealth creation.

Article Price : Rs.50

Real Estate Investment Trusts

-- VDMV Lakshmi

In December 2007, the Sebi announced the proposal for setting up of the Real Estate Investment Trusts (REITs) on par with those existing in developed countries. The entry of REITs enables the retail investors to participate in the surging real estate sector as the minimum investment required is small.

Article Price : Rs.50

Weather Derivative : A Tool for Risk Management in the New Millennium

-- Abhijit Dutta

The article deals with the structure, pricing and usage of weather derivative. The weather vagaries have led to a great amount of losses for weather-reliant industries such as power, hospitality, etc. The article shows how weather derivatives can be used to tone down the losses and hedge the financial risk of industries which are directly affected by weather forces.

Article Price : Rs.50

Ulips Pay in the Long-term

-- Shekhar V Sawant and Filipe Rodrigues e Melo

Unit-Linked Insurance Plans (Ulips) have been in India since 1971 and have a special role as an investment option for the investors. The article looks at various aspects of the Ulips.

Article Price : Rs.50

Investor Protection and Growth in Securities Market

-- Sudev C Das and Akinchan Buddhodev Sinha

The article focuses on recent steps taken by the Sebi for protecting the interests of small investors, based on the NL Mitra Committee recommendations.

Article Price : Rs.50

Cocktail Economics : Discovering Investment Truths from Everyday Conversations

-- Editor: Victor A Canto Reviewed by Swaha Shome

Cocktail Economics by Victor A Canto is about how successful investor picks the right stocks in different economic conditions. In a nutshell, it is about the marriage of economics and investment and the crucial ties that bind the two.

Rationing of the Hot IPOs in India and Allocations to Retail Investors

-- Alok Pande

Indian primary markets have seen very high degree of oversubscriptions in the IPOs during 2007. The highest oversubscription was made in Religare Enterprises Limited—a financial services firm. This article studies the basis of allocation of shares in the IPO of Religare Enterprises as published by its Registrar to understand the level of rationing of shares to retail investors in India.

Article Price : Rs.50

Global Executive Summaries

  • Eastern Europe: Next Credit Crunch Victim?
    Full Text: www.news.bbc.co.uk
  • Missing the Big Gains: Foreign-Stock Funds and the Benefits of International Diversification
    Full Text: www.knowledge.wharton.upenn.edu
  • The New Role of Oil Wealth in the World Economy
    Full Text: www.mckinseyquarterly.com
  • A Bright Future for Convertible Bonds
    Full Text: www.ft.com
 
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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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