COVER
STORY
Private
Equity : Creating Wealth for India Inc.
- - GD Rathod
This
article attempts to understand the Private Equity (PE) system in India, the various
factors that drive and hinder the growth of PE, risks faced and its regulatory
challenges. Of late, Private Equity (PE) investments in emerging markets are making
headlines. As developed markets become increasingly saturated, markets like India
among other emerging markets are attracting record commitments from the global
PE funds. Fund raising in emerging markets more than tripled in 2005, crossing
the $21 bn mark. The Stock markets in many emerging economies are experiencing
unprecedented levels of liquidity and interest in emerging markets continues to
grow.
© 2007 IUP . All Rights Reserved
COMMODITIES
The
World of Futures
- - Aurobindo Ghosh
Futures
market in India, though relatively young has received considerable attention.
The article looks into the details of futures market. These days, people, who
are engaged in financial institutions, are expected to be quality future tellers.
They should be able to foretell the customers or investors which side the money
is flowing and which side it will take a turn. That is, they must know the course
of the money flow before hand and must also be able to guide the receiving agencies
regarding their course of action, so that the investor's investment is not only
safe, but grows to a considerable extent.
© 2007 IUP . All Rights Reserved
DERIVATIVES
STRATEGY
The
Ratio Spread and the Back Spread
- - Amandio FC da Silva
Option
strategies such as ratio spread and the back spread can be effectively used in
a less volatile environment. The article looks into both these strategies in a
greater detail. A striking feature of the stock market is the number of risk lovers
who are ready to take a risk to make a profit. Similar to stock trading strategies,
various derivatives trading strategy are also in existence. Among the various
option trading strategies available to the risk-lovers, one of the most popular
is theRatio Spread and its opposite spread, the Back Spread.
© 2007 IUP . All Rights Reserved
MUTUAL
FUNDS
Scope
of Mutual Funds among SMEs : A Select Study
- - Manisha Pillai
The
article explores the potential of mutual fund investment by SMEs in India taking
a sample study under consideration. Small and Medium Enterprises (SMEs) have a
high growth potential in India. With this growth potential, SMEs are expected
to register higher profits in the years to come. The challenge at that point of
time would lie in managing the surplus funds available with them. Generally, such
industries prefer to keep their funds parked in banks, that are considered to
be a safe avenue, coupled with a steady rate of return.
© 2007 IUP . All Rights Reserved
ACQUISITION
COMPANY
Blank
Check Companies
- - S Aravanan
The
history of Blank Check Companies is relatively old in the US, but is nascent in
India. The article takes a closer look at these companies. Of late the term "Blank
Check Companies" is hitting the heading of almost all the financial dailies. But
what is a Blank Check Company? A Blank Check Company refers to a company in the
developmental stage that has no specific established business plan, yet. The term
generally applies to a shell company with limited or no employees, little or no
physical assets and no products and with only a business plan to merge with or
acquire some unidentified company or companies.
© 2007 IUP . All Rights Reserved
PERSONAL
FINANCE
Credit
Counseling : A Closer Look
- - Arindam Banerjee
The
boom in the credit card industry has a downside to it; not being able to manage
the benefits of credit card leading to bankruptcy. This article looks at the emergence
of credit counselling centers to assist people. In the previous decade, credit
off take in India has grown out of bounds and the growth of credit cards in the
market needs a special mention. The propensity to consume now and pay later is
increasing. Coupled with this, having multiple credit cards and offers to convert
grocery bills into interest free EMI, which is a relatively new concept, is also
becoming a common feature.
© 2007 IUP . All Rights Reserved
PERSONAL
FINANCE
Private
Client Management : A Comprehensive Financial Planning Approach
- - Debarati Bhattacharya
This
article is the fifth and the concluding part of the five-series article on Private
Client Management. The concluding part of the article takes a closer look at retirement
planning and its different facets. Worrying about the rising inflation, healthcare
costs, and the ever-changing tax laws can be a challenge for the people who are
approaching their retirement. A Wealth Management team works with the client to
make sure that an individuals' lifestyle is sustained during the twilight years.
Pension schemes are policies that provide benefits to the insured upon retirement.
If the insured expires during the term of the policy, his nominee would receive
the benefits either as a lump sum or as a pension every month.
© 2007 IUP . All Rights Reserved
INDUSTRY
ANALYSIS
Stock
Market Performance of Select Commercial Banks in India
- - Tamal Datta Chaudhuri
The
article examines the Indian commercial banking industry that has posted continuous
profit and positive stock market performance amidst turbulent environment. The
commercial banking sector in India consists of public sector banks, old private
sector banks, new private sector banks, foreign banks, cooperative banks and regional
rural banks. Of these, cooperative banks and regional rural banks are not listed
on the stock exchanges. Among the remaining banks, some are listed. The Bankex
is a sectorial index of BSE that provide a proxy for banking stock.
© 2007 IUP . All Rights Reserved
BOOK
REVIEW
Institutional
Investors : Emerging Trends
- - Editor: Arindam Banerjee Reviewed by Himabindu
For
more information and procuring this book, visit www.iupindia.in/books Finance and institutional investors are closely related
to each other especially in developing economies. This book closely examines the
rise of Foreign Institutional Investors (FII's) in India and also peeps into the
entry of Foreign Direct Investments (FDI) and Private Equity in the Indian markets.
Institutional investors have enormous financial clout in the world's financial
markets, especially in BRIC Nations. India, which opened its gates to Foreign
Institutional Investors (FIIs) in September 1992, in the wave of economic reforms,
has seen the impact of institutional investment.
© 2007 IUP . All Rights Reserved