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Regulation and Deregulation of the Stock Market in India
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In this paper, the functioning of the reformed Indian regulatory structure is examined in the context of the basic principles of regulation, the special regulatory requirements of capital markets, and the features of Indian markets.Abstract:
Liberalization requires de- and re-regulation, since with internationalization government controls become ineffective, and with the use of new technologies new governance structures are required. The functioning of the reformed Indian regulatory structure is examined in the context of the basic principles of regulation, the special regulatory requirements of capital markets, and the features of Indian markets. The regulator's aim was to achieve international best practices, and encourage market -integrity through clear and self-enforcing rules of the game while encouraging the game itself. It contributed to implementing world-class technology and processes in the markets. Following general principles allowed flexible response to arbitrage and change. Insider groups lost power as the liquidity advantage tipped in favour of automated systems, but there were imperfections in implementation due to design inadequacies. As these are addressed, and markets revive with growth, thinness of participation and in depth of securities may be overcome.read more
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The Internet and Financial Market Structure
TL;DR: In this paper, the authors provide a framework for understanding how the historical interplay between information technology and human capital has influenced financial market structure and shed light on the recent reorganization of financial markets.
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The Future of Financial Liberalization in South Asia
TL;DR: The authors defines financial liberalization, distinguishing between liberalization of domestic financial markets and capital account convertibility, and examines the stages and the strategy of Indian financial reform, concluding that the direction of future liberalization should be such as meets Indian needs of financial inclusion, infrastructure finance, and domestic market deepening.
Journal ArticleDOI
Regulatory Response to Market Volatility and Manipulation: A Case Study of Mumbai and Karachi Stock Exchanges
TL;DR: In this paper, the authors examined the regulatory intervention in India and Pakistan in response to episodes of excessive market volatility and manipulation and its effectiveness in achieving declared objectives and found that while the Indian regulatory agencies seem to have achieved their objectives in curtailing manipulative and speculative behavior, there appears to be little impact on such behavior in the case of the Karachi Stock Exchange.
Market Volatility, Manipulation, and Regulatory Response: A Comparative Study of Bombay and
TL;DR: In the presence of network effects, where value to any one individual increases with the increase in the number of participants, a herding behavior can ensue and lead to excessive volatility and sharp swings in the stock prices.
Journal ArticleDOI
Securities and Exchange Board of India and the Regulation of the Indian Securities Market
TL;DR: A substantial revision and updated version of an earlier paper on this subject is presented in this article, which complements the existing literature by enhancing the framework for examining the adequacy of the institutional arrangements under SEBI and then by examining whether the statutory arrangements at SEBI's disposal are adequate ensure a well functioning securities market.
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Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Posted Content
Theories of Economic Regulation
TL;DR: A major challenge to social theory is to explain the pattern of government intervention in the market - what we may call "economic regulation" Properly defined, the term refers to taxes and subsidies of all sorts as well as to explicit legislative and administrative controls over rates, entry, and other facets of economic activity.
ReportDOI
Theories of Economic Regulation
TL;DR: In this article, the authors argue that both the public interest theory and the political scientists' versions of the interest group theory are unacceptable in their present form, and they conclude that the theory requires both more analytical development and new sorts of empirical investigation before it can be accepted as an adequate positive theory of regulation.
Journal ArticleDOI
The Rise of the Regulatory State
TL;DR: In this article, the authors model the choice of law enforcement strategy between private litigation over accidents, regulation of precautions, a combination of the two, and doing nothing, and show that any of these strategies can be subverted by private parties, at a cost.
Journal ArticleDOI
Financial Innovation: The Last Twenty Years and the Next
TL;DR: The major impulses to successful financial innovations have come from regulations and taxes as discussed by the authors, and the outlook for the future is for a slowing down of the rate of financial innovation, but much growth and improvement are still in prospect.