FINANCIAL SYSTEM DEVELOPMENT

PATH OF MUMBAI
prepared by
DR. BANDI RAM PRASAD
President
Financial Technologies Knowledge Management Company Limited
bandi.ramprasad@ftkmc.com
FINANCIAL SYSTEM DEVELOPMENT
PATH OF MUMBAI
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3
Introduction
Mumbai enjoys the distinction of being the fnancial capital of India. A city comprising
seven islands, which was well connected even in 1845, Mumbai has a long history of
establishing trade relationships with Rome as early as in 300 BC. The frst of the foreign
powers in Mumbai were the Portuguese who arrived in 1498 and named the city as
Bom Bahia, which means good small bay. The British East India Company took control
of Mumbai in 1668 for a measly sum of 10 pounds and in 1857, following the frst
war of independence, the city came under the direct rule of the British Government.
Administratively, Mumbai is the capital of the Government of Maharashtra State that
has close access and borders with states such as Gujarat, well known for its cooperative
movement and conducive business environment; Madhya Pradesh that has important
trading centres; and Andhra Pradesh, which is popular for software industry. Mumbai is
ranked fourth biggest city among the 30 urban agglomerations in the world by a recent
study by PricewaterhouseCoopers.
Mumbai has a long history of fnancial system development. These developments
form a subculture of a strong fnancial system in terms of innovations and instruments
ancient India was known for. Prakash Tandon
1
, who chronicled the history of growth and
development of Punjab National Bank, one of the Indias premier banking institutions,
noted, Particular attention is given to the developments in Indiatrade, trade routes,
economic and fnancial institutions like the guilds, commodity dealings, coinage in
diverse forms and the invention of many instruments of trade, credit and banking. These
inventions and innovations are shown to have been strewn over the Indus Valley, through
the Vedic, Mauryan and Gupta eras to the Khiljis, Tughlaks, Mughals and Europeans in India.
Jignesh Shah
2
, in his book that traced the origins of commodities trading in India, notes,
Through the many phases of urbanization in India, it is clear that the expansion of trade
and the development of markets were central to the development of not only cities and
the urbanscape, but also the growth of the kingdom and civilization itself.
1
Prakash Tandon, 1989, Banking Century, A Short History of Banking in India and the Pioneer Punjab National Bank, Penguin
Books
2
Jignesh Shah, Biswajeet Rath, 2010, Back to the Future, Roots of Commodity Trade in India, Takshashila Academia of Economic
Research, Mumbai
Stock Market Development in Mumbai: A Peak into
History
The American Civil War (1860-61) led to the sudden surge in demand for cotton from
India, which resulted in a number of joint stock companies coming into being with
issuance of securities. Suddenly there was a share mania that gripped the city of Bombay
with the market functioning from three diferent places; between 9 a.m. and 7 p.m. at
the junction of Meadows Street and Rampart Row; from day break till 9 a.m. and from 7
p.m. to the early hours of next morning at Bazargate.
Sugar Market at Mandvi was another place. Between March 1864 and July 1865,
speculation was so rife and rampant that the market consisted of more than 1,000
brokers. Share price rose sharply; a share of Coloba Land Company rose from Rs 10,000
at par to Rs 1,20,000 and that of Backbay Shares went up from Rs 2,000 to Rs 54,000.
Bombay was a major fnancial centre even as early as in 1865; it had 31 banks, eight land
reclamation companies, 16 cotton-pressing companies, 20 insurance companies and 62
joint stock companies.
During the years 1864-65, the whole community of Bombay from the highest English
ofcials to the lowest native broker, utterly demoralised and abandoning business, gave
themselves up to the delusion that they could all succeed in making fortunes on the
stock exchange," noted a newspaper of that time, which prompted the then Governor,
Sir Bartle Frere (1862-1867), to forbid all civil servants to indulge in speculation and
refused to promote those who disobeyed the order. A few found it more rewarding to
disobey. J.M. Maclean (1835-1906), a high-ranking British ofcial, was reported to have
said, "I have made more money out of these shares than I have saved during all my
service in India and I don't mean to give up."
All the trappings of a rising market were in evidence: tips, rumours, astrological forecasts,
press interviews. People gambled on anything: stocks, silver, and even rainfall. The
Bombay Guardian newspaper reported in 1872 an interesting incident of betting on the
rain or Barsat Ka Satta. "The rage of speculation of people in this country is extraordinary.
It fnds vent in the chances of a day being rainy or otherwise. Over a hundred people,
most of them Marwaris, assemble, it is said, in a chawl near Khetwadi daily to bet on
the probability of the rainfall." There were a few modern day Nick Leesons too. Chunilal
D. Saraiya (1862-1913), manager of India Specie Bank, bet so heavily on silver, which
made the bank to lose one and quarter million, leading to its closure. The original Big
Bull was Premchand Roychand who was also well known as the Cotton/ Bullion King.
When he was on a visit to companies or banks, hordes of people used to follow him for
either a tip or an insight. He could persuade banks to lend huge sums of money for share
business that further buoyed the boom market at the time. An ordinary broker around
1865 earned about Rs 200 per day, a huge sum in those days.
5
The party, however, did not last long. On July 1, 1865, when hundreds of "time bargains"
had matured, which buyers and sellers alike defaulted, led to the burst of the bubble.
Never had I witnessed in any place a run so widely distributed nor such distress followed
so quickly on the heels of such prosperity," thus wrote Sir Richard Temple, who served
as the Governor of Bombay. A share of Bank of Bombay, which touched Rs 2,850 at the
peak of the market, slumped to Rs 87 in the aftermath of the bust. Despite the intensity
of the crisis, most of the brokers met their commitments.
Banks, on whose building steps brokers used to hover around for tips and trades, found
it a big nuisance in the aftermath of the crash and drove them away out of their premises,
which forced them to fnd a place of their own, which later turned out to be Dalal Street.
Beginning with doing business under a banyan tree, a group of 318 persons formed
the stock exchange in July 1875, which led to the formation of a trust in 1887 known as
Native Share and Stock Brokers Association, which in later years came to be popularly
known as Bombay Stock Exchange.
Measures to modernize the Indian capital markets began as a part of the economic
and fnancial sector reforms by setting up a regulatory authority for securities markets
(Securities and Exchange Board of India, 1992), a national stock exchange (National
Stock Exchange of India, 1992), dematerialization and a depository system (National
Securities Depository Ltd and Central Securities Depository Ltd,1995). In 2007, MCX
Stock Exchange was recognized as a third national stock exchange in addition to BSE
and NSE.
Source: From an article on stock market development contributed by the author in the Business Line, April 27, 2001
Competitive Advantage of Mumbai
Mumbai has several unique features that makes it a competitive city that attracts
business, people and investments from India and abroad. Apart from being located in
a favourable time zone (GMT+5.5 hrs) that provides Mumbai with access to markets in
Africa, Europe and the Middle East during the day time, and the US also to some extent in
the evening (which has relevance for trading in commodities/currencies), it is endowed
with numerous other features that add to its competitiveness.
Historical
Mumbai was a major port and fnancial city under the British India
Well-developed infrastructure as compared to other urban
agglomerations
Legacy of a well-designed municipal administration
Long presence of fnancial markets and institutions
Presence of indigenous enterprise and local markets
Presence of a wide range of market-related institutions and
intermediaries
Cultural
Multi-cultural population, diversity of lifestyles and representative
of a cosmopolitan city
A steady stream of migrant population from diferent parts of the
country
Gender balance, safety and security
A relatively higher degree of law and order
Strong presence of communities known for entrepreneurship and
enterprise
Professional approach
Well-developed infrastructure for education and skill development
Demographic dividend. About 65% of Indias population will be
around 35 years of age in the next decade
Financial
Financial capital of India
Headquarters of regulatory authorities of banking, securities and
commodities markets
Presence of a large number of fnancial institutions, including
Indias biggest commercial banks, stock exchanges, commodity
exchanges, clearing corporations, rating agencies, information
services companies
Presence of leading foreign institutional investors, investment
banks, private equity frms
Sophisticated trading, clearing and settlement platforms and
processes in various asset classes and fnancial market segments
Location of treasury functions of leading corporates, banks and
other fnancial institutions
Location of self-regulatory and industry associations in the realm
of banking, securities frms, forex, fxed income and mutual funds
Well connected with regional and international fnancial centres
Persons of Indian origin holding leadership positions in several
international fnancial frms
7
Contribution of Mumbai
Mumbai, being the business and fnancial capital of India, makes signifcant contribution
to size, growth and development of numerous segments of the real economy and the
fnancial markets. Several innovations in the Indian fnancial markets originated in
Mumbai, which include:
Stock market culture in India
Financial markets regulation
Spot and futures and other derivatives trading
Electronic and online trading
National stock exchanges (NSE/BSE/MCX Stock Exchange)
Credit rating agencies (CRISIL/CARE)
Self-regulatory institutions (IBA, AMFI, FIMDA, FEDAI, etc.)
Securities settlement; T+2 days
Dematerialization and depositories: NSDL/CDSL
Multi-asset-class trading platforms (Financial Technologies Group)
Modern commodities markets (MCX/NCDEX)
Growth of currency derivatives (MCX-SX)
Biggest private sector collateral management for Agricultural markets (NBHC)
Spot markets for agricultural commodities (NSEL)
Besides, Mumbai also contributes sizably to various segments of fnance and the
economy.
5%
10%
20%
25%
40% 40%
60%
70%
GDP Central
Excise Tax
Industrial
Output
Foreign
Trade
Income
Tax
Customs
Duty
Financial
Transactions
Factory
Employment
Mumbais Contribution to India
Size and Significance
Mumbai accounts for a major chunk of the fnancial activity in India. A sizable part of
the business of commercial and investment banks, exchanges, securities frms, private
equity and other fnancial services operate from Mumbai as the base. The following
table highlights the share of Mumbai in major fnancial activities.
Particulars Size ($ bn) %
Bank Deposits* 210 20
Bank Advances* 183 24
Cheques Cleared 431 19
Trading in Equities (Cash Market) 752 61
A large part of the derivatives traded on various exchanges across asset classes,
including equities, commodities, fxed income and currency, also originates in
Mumbai.
*as of September 30, 2010
The signifcance of Mumbai could be measured from the presence of premier
institutions across all major constituents of the fnancial sector, as could be seen from
the following.
Particulars Institutions
Regulatory
Institutions
Reserve Bank of India (banks), Securities and Exchange Board of
India (securities), Forward Markets Commission (commodities)
Exchanges Bombay Stock Exchange, National Stock Exchange of India,
MCX Stock Exchange, MCX, NCDEX
Banks with HQs State Bank of India (Indias biggest), Bank of India, Bank of
Baroda, IDBI, ICICI Bank, HDFC Bank
Refnancing
Institutions
National Bank for Agriculture and Rural Development (NABARD),
Small Industries Development Bank of India (SIDBI), EXIM Bank
Main Ofces of
Foreign Banks
Citibank, Deutsche Bank, HSBC, Standard Chartered, and 40
other foreign banks are present in Mumbai
Investment Banks Enam Securities, Morgan Stanley, ICICI Securities, DSP Black
Rock, JP Morgan,
Private Equity CLSA Capital Partners, KKR India Advisors, Temasek Holdings
Advisors, HSBC Private Equity Advisors, Khazanah National
Auditors &
Accounting Firms
A F Ferguson, Haribhakti & Co.
Legal Firms Amarchand & Mangaldas & Suresh Shrof Co., Mulla & Mulla, &
Craigieblunt & Caroe
FIIs CLSA, Daiwa Securities, Nomura Financials
Rating Agencies Crisil, CARE, Fitch Ratings
Share Registries MCS Ltd, Link Intime, Sharepro Services, TSR, Darashaw
SROs Indian Banks Association, Association of Mutual Funds of India,
Fixed Income Money Market & Derivatives Association
Infrastructure IL&FS, HDFC Ltd
Corporates Reliance Industries, Aditya Birla Group, Tata Group, Godrej,
Essar, Mahindra & Mahindra, Financial Technologies
9
A large part of the growth in Indian capital markets in terms of business and expansion
is contributed by Mumbai. In the last fve years, Indian fnancial sector has shown
exceptional growth, drawing on the strengths of fnancial centres such as Mumbai. For
instance, bank deposits in India more than doubled from $535 billion to $1,339 billion
during the fve-year period between 2005 and 2010, and bank advances from $250
billion to $721 billion. There are nearly 5,000 companies listed in the Indian stock markets,
making Mumbai as a capital market with largest number of listings. During the 2005-10
period, stock market capitalization rose nearly three times, from $553 billion in 2005 to
$1,631 billion in 2010, and stock market turnover from $314 billion to $801 billion. There
are about 1,700 FIIs with their investments in Indian fnancial markets through portfolio
fows showing a sharp rise from $9.5 billion in 2005 to about $40 billion in 2010. On a
cumulative basis, FII fows into India are in the range of $80 billion since the markets
were opened for foreign institutional investment in the early 1990s.
In 2007, Ministry of Finance, the Government of India, constituted a High Powered Expert
Committee
3
to examine various aspects of making Mumbai as an international fnancial
centre. The Committee drew up an extensive report highlighting the advantages
Mumbai could ofer as an international fnancial centre and listed out various measures
in the realm of policy and market development required in this regard.
3
Report of the High Powered Expert Committee on Making Mumbai an International Financial Centre, Ministry of Finance,
Government of India, New Delhi, 2007
Growth Trends
Mumbai is fast emerging as one of the most populous cities globally. In 1950, Mumbai
had a population of 2.9 million that made it 18th among the top 30 cities in the world.
By 1990, population of Mumbai rose to 12.3 million, making it the ffth largest populated
city in the world. In 2007, the population of Mumbai reached 19 million, making it the
fourth biggest urban agglomeration by population. By 2025
4
, it is estimated that with a
population of 26.4 million, Mumbai will be the second biggest urban agglomeration by
population after Tokyo.
GDP in Mumbai (estimated in PPP terms) was US$209 billion in 2008, with GDP per capita
at US$10,800. In terms of GDP basis, Mumbai is closer to other cities such as Sydney
($213bn); Singapore ($215bn); Madrid ($230bn); Shanghai ($233bn). In terms of size of
the GDP, cities such as (Tokyo ($1479bn); New York ($1406bn) and Los Angeles ($792bn)
are in the top of the league of cities.
In terms of the 2008 GDP level, Mumbai is ranked 29 and it gained more than 10 places
as compared to 2005, when it was ranked 37 on this basis. On the basis of GDP estimates
in 2025, Mumbai will move to 11th position among the top 30 cities in the world with a
GDP size of $594 billion.
Mumbai is also expected to show high rate of growth of GDP as compared to many
other leading cities with a projected rate of 6.3% for the period 2008-25. By 2025, its
rank in the GDP among the top 30 cities will move up signifcantly to 11 from 29 in
2008. In 2008, India had two cities among the top 50 global cities and this number will
move up to three by 2025. India will have nine cities among the top 100 cities in the
world by the 2025. In terms of GDP forecast growth for the period 2008-25, Tianjin and
Mumbai are more or less on an even keel with an average annual growth of 6.6% and
6.3%, respectively.
Mumbai was among the top 15 cities that recovered fast from the impact of global
economic recession during 2009-10
5
. Mumbai scores well in regard to growth and
development as compared to other indicators in the IFC development index.
4
PricewaterhouseCoopers, Which are the largest city economies in the world and how might this change by 2025, UK Economic
Outlook, 2009
5
LSE Cities; Metropolitan Policy Programme at Brookings, Global Metro Monitor, The Path to Economic Recovery, A preliminary
overview of 150 global metropolitan economies in the wake of the great recession, December 2010
11
Cities
2010, % change on previous year, Forecast
Rank out of 150 Since recession low
Istanbul
Lima
Singapore
Shanghai
Rio de Janeiro
Mumbai
Austin
Bogat
Sydney
Tokyo
New York
Paris
Zurich
Frankfurt
London
Athens
Madrid
Las Vegas
Dubai
Dublin
1
3
4
6
10
12
26
31
45
96
101
113
123
141
142
146
149
150
52
77
Income* Employment
-8 -6 -4 -2 0 2 4 6 8 10 12 14
Source: Brookings/LSE Global Metro Monitor *Gross Value Added per person
Mumbai
200
150
100
50
0
Shanghai Rio de
Janeiro
Sao
Paulo
Istanbul Mexico
City
Buenos
Aires
Moscow
London
Chicago
New York
Tokyo
Philadelphia
LA
Paris
Osaka
Cumulative Projected GDP Growth for Mega Cities
% Cumulative Real GDP Growth: 2008-25
Top 8 Emerging Economy Cities Top 8 Advanced Economy Cities
Source: PwC analysis
Mumbai scores high in respect of indicators such as growth and development. In the
Xinhua-Dow Jones International Financial Centers Development Index in Asia, Mumbai
ranks high in indicators such as growth and development, fnancial markets and
industrial support as compared to other general features such as services and general
environment. The current focus and thrust of the Government in promoting Mumbai
also includes enhancing the quality of the general environment and the scope of services
that could further reinforce the strength of the growth and development indicators and
step up the process of making Mumbai an international fnancial centre.
Profle of the International Financial Centres Development Index in Asia
International
Financial
Centre
Development
Index
Rank Financial
Market
Growth and
Development
Industrial
Support
Service General
Environment
Asia
Singapore Singapore 70.06 6 63.52 71.46 75.34 69.04 71.29
China
Hong Kong 81.01 4 81.5 84.25 86.23 76.87 76.35
Shanghai 63.75 8 64.93 87.43 72.11 47.84 46.45
Shenzhen 40.53 22 44.9 57.31 30.61 25.84 43.09
Taipei 31.05 41 33.6 36.42 31.95 26.95 26.19
Beijing 55.91 13 57.67 83 61.6 38.21 38.92
UAE Dubai 53.59 14 47.66 67.88 60.01 48.45 44.26
Japan
Tokyo 85.55 3 86.52 81.77 93.64 86.72 79.5
Osaka 33.02 38 32.7 32.56 35.77 34.35 29.87
India Mumbai 31.52 40 35.78 42.43 33.47 22.42 23.32
Korea Seoul 35.02 31 33.89 45.28 41.52 29.28 25.31
Source: Xinhua-Dow Jones International Financial Centers Development Index, July 2010
Mumbai among the Top 30 Urban Agglomerations in the World
Mumbai Population (mn)
209
594
2008 2025*
GDP PPP ($bn)
2.9
1950
15
12.3
1990
5
19
2007
4
26.4
2025*
* Projections Indicates Rank
Source: PwC Analysis
3 29 11
13
Mumbai and Tianjin
Tianjin has the distinction of having the frst stock market and frst bank. Mumbai
too had one of the earliest stock markets in India. Pinghuai Stock Company was the
frst stock exchange in China set up in Tianjin in 1872, which is also known for the
establishment of the frst banking institution. The formal stock exchange of Mumbai
came into being in 1875. Mumbai has access to one of the best sea ports in India; Tianjin
also has. Mumbai is known as one of the prominent centres for fnance since long, and
Tianjin was earlier known as one of the biggest fnancial centres in China. Both these
centres have ambitious plans to emerge as leading fnancial centres. While Mumbai
pursues its aspirations to emerge as an international fnance centre on the back of strong
fnancial markets development, favourable time zone, wide connectivity to the rest of
the world, and availability of skilled professionals, Tianjin is working towards emerging
as a strong regional fnancial centre on the back of a strong domestic economic growth
and rapidly growing asset markets that will complement the benefts brought in by
leading fnancial centres such as Beijing, Shanghai and Shenzhen. Tianjin forms a part
of the development plan of the Tianjin-Bohai region that could bring the benefts of the
regional development in making it a vibrant regional fnancial centre. Tianjin Financial
Assets Exchange is an important addition to the fnancial innovations in the centre as
it provides a nationwide platform for trading of all types of fnancial assets, which is a
unique market institution in the emerging markets.
Towards Making a Successful Financial Centre
While every major city or fnancial centre has certain natural benefts arising from legacy
and location, the focus on modern fnancial policy is to create centres of growth and
excellence by design and development of suitable fnancial architecture comprising
institutions, instruments and investors. It is in this context that concerted eforts
in capacity building and infrastructure creation assume signifcance. International
fnancial centres such as London retain their primacy among the global fnancial centres
because of continuous and consistent eforts to restore competitiveness.. A few aspects
related to making successful fnancial centres and sustaining the growth momentum
are discussed below.
Infrastructure
Infrastructure is the key to the growth and development of the fnancial centres. Well-
developed infrastructure in terms of telecoms, communications and connectivity within
and outside the country, will enhance the quality of the fnancial centres in terms of
potential and prospects for growth.
Financial Architecture
Well-designed fnancial architecture that encompasses a comprehensive framework for
the fnancial system comprising institutions in the realm of policy, regulation, market
practice, ratings and information, analysis, etc. are vital for a strong and sustained growth
of the fnancial markets. The design of the market structure should be consistent with
promotion of competition and restriction of monopoly practices, which could hinder
the progress of the growth of the markets. Investor protection is another key part of the
design that will narrow the scope for market abuses, and better standards in governance
and administration form the key aspects of institution building. Simultaneous with
development of regulated entities and institutions, the fnancial industry should take
initiatives in creating self-regulatory institutions that will address to the operational
aspects to be sorted out within the industry and leaving the larger aspects of market
development to the policy. In many countries where fnancial markets emerged as a
larger economic activity, self-regulatory institutions play a very important role. Growth
of self-regulatory intuitions forms an important and integral part of the fnancial
architecture.
Knowledge Development
Knowledge is the key to the success of the fnancial markets. In some markets, despite
regulatory structure frmly in place, issues of market depth remain a major issue in view
of lack of enough market intermediaries with required experts and skillsets, who could
contribute to the growth of business. Countries like India and China have a long history
of indigenous enterprise and entrepreneurial competencies, but in both these countries
there is a huge gap for a few decades. While this has not been a major constraint going
by the rapid surge of fnancial markets activity in both these countries in the last two
decades, continuous thrust and focus are essential to bring greater awareness about
15
the potency and power of markets to a large constituency of professionals engaged
in the fnancial markets industry in the areas of policy, regulation and market practice.
Given the dynamism of the markets and rapid changes in the market correlations, equal
emphasis is required in stepping up the skill-sets of market intermediaries in various
aspects of the operations pertaining, and front and back ofce of the fnancial frms.
The requirement of knowledge development and management spreads across various
layers of the fnancial markets industry, including top management, in areas such as
governance and administration, best practices and better standards in compliance and
disclosure, strategies for market development, investor education and awareness, and
measures that could make markets safer and secure. In addition to mainstream academic
institutions that impart basic education in fnancial markets, specialized institutions
will have an important role to play in capacity building, that could make a distinct
contribution to the growth of fnancial markets and in the making of an international
fnancial centre.
FTKMC: Knowledge for Markets
Financial Technologies Knowledge Management Company Limited (www.ftkmc.com),
based in Mumbai, India, is a specialized institution engaged in the development of
domain knowledge in fnancial markets and design of innovative products and services
that help in the development of fnancial markets. Operating with a broad theme,
Knowledge for Markets, FTKMC is engaged in developing knowledge initiatives that
aim to address to the emerging requirements in policy, regulation and market practice
in the fnancial sector. The constituents with which FTKMC engages include policy and
key decision makers and regulatory authorities on subjects such as growing importance
of fnancial markets in the economy and aspects of governance and management;
fnancial institutions on market development strategies, resource mobilization, and risk
management; corporates and other business entities on the scope of harnessing and
accessing fnancial markets and issuing securities and other instruments; intermediaries
on the skill-sets and expertise required to operate in multi-asset-class markets, including
trading and settlement; students to prepare them with knowledge and know-how to help
them with successful careers in fnancial markets; and investors to empower them with
proper understanding and appreciation of the opportunities in the fnancial markets and
risk and rewards associated with fnancial investments. Its primary focus is to enhance the
quality of market practice and various other aspects that are of relevance and signifcance
in building strong and sustainable fnancial markets. With particular focus on institutions,
instruments and investors pertaining to diferent asset classes, FTKMC develops
numerous products and services in the realm of fnancial literacy, executive education,
academic collaborations, fnancial training, examinations and certifcations as well as
consultancy, research and advisory that receive wide acceptance and endorsement
from markets. The several international projects FTKMC is carrying out in various
countries include strong working relationships with GIZ, China, in market developments
initiatives, particularly in the realm of capacity development. FTKMC is a constituent of
the Financial Technologies Group that has extensive interests in design of technology
solutions in the fnancial industry, multi-asset-class exchanges and clearing corporations
in various geographies, including Asia, the Middle East and Africa, and the development
of fnancial markets ecosystem.
Global Approach and Perspective
Financial markets are intensely integrated in the world. In several aspects of the fnancial
markets, such as banking, securities, commodities, currencies, certain standards of
operations in exchanges and Over-the-Counter markets are largely drawn from an
international framework that could be found to be in adoption in a large number of
countries. For instance, in most of the exchanges, trading is electronic, depository
systems are prevalent, and securities settlement takes place within a given time frame.
Similarly, in derivatives, though underlyings may vary, the contract specifcations in terms
of price discovery, trading and settlement remain in accordance with global standards
and practices. In banking, too, several operations are aligned with the international best
practices. It is in the background of standardization of market procedures and practices
that scores of foreign institutional and individual investors found numerous opportunities
to invest across a various markets on the strength of market similarity. In the long term,
the success of international fnancial markets will, to a large extent, depend on the
global approach to market development; not undermining the strength of the domestic
markets. Countries like India and China have made rapid progress in fnancial markets
development in the background of robust growth of domestic fnancial markets and
this will continue to be an important aspect in fnancial policy. Processes and platforms
for regular consultations and interactions with national and international institutions on
various aspects of market development and operations should be promoted, that will
elevate the status and signifcance of the fnancial centre.
17
A WEEKLY BRIEFING
ON MAJOR
DEVELOPMENTS IN
GLOBAL ECONOMY,
FINANCE AND
MARKETS
POSTGRADUATE
DIPLOMA IN
FINANCIAL
MARKETS PRACTICE,
JOINTLY WITH
IGNOU, AND
COLLABORATIONS
WITH ACADEMIC
INSTITUTIONS
CONSULTATIONS AND
COUNTRY EXPOSURE
PROGRAMME ON
FINANCIAL MARKETS
FOR CEOs AND
SENIOR DIRECTORS
OF FINANCIAL FIRMS
A TWO-WEEK
PROGRAMME IN
FINANCIAL MARKETS
PRACTICE FOR
PROFESSIONAL AND
STUDENTS
AN ANNUAL REVIEW
OF DEVELOPMENTS
IN GLOBAL AND
DOMESTIC FINANCIAL
MARKETS
CERTIFICATE
PROGRAMMES ON
EQUITIES, DEBT,
COMMODITIES,
CURRENCIES
Financial Technologies Knowledge Management Company Limited
Exchange Square, 1st Floor, Suren Road, Chakala, Andheri (East), Mumbai - 400093. India.
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Financial Technologies Knowledge Management Company Limited (FTKMC)
enjoys the distinction of being a leading provider of solutions and services in the
realm of nancial sector knowledge. FTKMC is engaged in the design of domain
knowledge across major asset classes and oers numerous products and services
in the realm of executive education, nancial literacy, nancial certication,
research, consultancy, and advisory services.
Financial Technologies Knowledge Management Company Limited
Exchange Square, 1st Floor, Suren Road, Chakala, Andheri (East), Mumbai - 400093. India.
Tel: +91 22 6731 8888 Fax: +91 22 6726 9541
Email: knowledgeformarkets@ftkmc.com Website : www.ftkmc.com