Vishweshwar Education Society’s

Indira Institute of Business Management

PROJECT REPORT
ON
INDUSTRY RESEARCH IN THE GLOBAL CAPITAL MARKET”

SUBMITTED TO
INDIRA INSTITUTE OF BUSINESS MANAGEMENT, NAVI MUMBAI
BY
MAYUR A CHOUDHARY
Roll No.2016037
Batch No. B

IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI
AUGUST, 2017

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 DECLARATION
This is to declare that I Mayur Arvind Choudhary student of INDIRA INSTITUTE
OF MANAGEMENT (IIBM), MMS Specialization batch 2016-2018, has given original data
and information to the best of my knowledge in the project report titled “Industry Research in
the Global Capital Market” is a record of independent work carried out by me under the
guidance and supervision of the Pooja patil towards the partial fulfillment of requirement for the
M.M.S. degree course under University of Mumbai.

I also agree in principal not to share the vital information with any other person outside
the organization and that I have not submitted it for any award or any other title, degree or
diploma.

Date:

Place: Mumbai

Name: MAYUR A CHOUDHARY

Roll No: 2016037

Specialization: Finance

Batch: 2016-18

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3
 CERTIFICATE OF COLLEGE

This is to certify that the project entitled “Industry Research In the Global Capital Market”,
submitted to HK Institute of Management, Mumbai in the partial fulfillment of the requirements
for the award of the degree of Master in Management Studies of University of Mumbai
embodies the results of bonafide project work carried out by Mayur A Choudhary under my
guidance and supervision.

To the best of my knowledge the results embodied in this project have not been submitted to any
other university or institute for the award of Degree or Diploma. The assistance and help
received during the course of this investigation has been duly acknowledged.

Project Guide: Prof. Pooja patil Director:

Date:
Place: Mumbai

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 ACKNOWLEDGMENT

Working on “Industry Research in the Global Capital Market” report was a source of
immense knowledge for me. I express my sincere thanks to the Internship Guide of SriSattva
group of Advisors for the valuable guidance and support throughout the project. The supervision
and support that they gave me truly help the development and progression of Internship program.
The co-operation is much indeed appreciated.

I would also like to thanks Internal Guide Pooja Patil for her valuable insights.

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TABLE OF CONTENT
Executive summary …………………………………………………………………………….7
Investment Banking Industry …………………………………………………………………. 8
Introduction ……………………………………………………………………………………9
Background and Inception of the company …………………………………………………....12
Goal and Focus…………………………………………………………………………….…..14
Employees ………………………………………………………………………………….….15
Services …………………………………………………………………………………….…..16
Business Carried on by the SriSattva …………………………………………………………..23
List of Industries ……………………………………………………………………………….26
Sales Strategy ……………………………………………………………………………….….27
Work flow model ………………………………………………………………………………30
Research &Analysis …………………………………………………………………………....31
SWOT Analysis………………………………………………………………………………....56
Learning Experience ……………………………………………………………………………57
Conclusion ……………………………………………………………………………………...58
Bibliography …………………………………………………………………………………....59
Annexure ………………………………………………………………………………………..60

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 EXECUTIVE SUMMARY

I would like to thank the SriSattva team for giving me this opportunity.
The objective of the project is to understand the capital market of various countries. The project includes
countries such as:
 Fiji
 Sudan
 Yemen
 Nepal
 Nigeria
 United Arab Emirates
 Luxembourg
 Hungary
 Indonesia
 Bahamas

From the research we got to know the capital market conditions of above countries. It also
includes trading mechanism of capital market. The project includes market share, market size &
major players in this industry.

Report also states about the capital markets over rule of world which will give inside of future
global capital market.

It also covers the in depth study of SriSattva Company. This reports also discuss its new services
such as Quick reports, time bound reports. This will give idea about SWOT analysis of SriSattva
and also will give ideaabout the future of the company.

This report will help you to understand about the Global Capital Market & SriSattva Company.

Investment Banking Industry

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The first company to issue publicly traded stock was the Dutch East India Company (Verenigde
Oostindische Compagnie, or "VOC"), which traded on the Amsterdam Stock Exchange.

Investment banking has changed over the years, beginning as a partnership form focused on
underwriting security issuance, i.e. initial public offerings (IPOs) and secondary market
offerings, brokerage, and mergers and acquisitions, and evolving into a "full-service" range
including securities research, proprietary trading, and investment management. In the modern
21st century, the SEC filings of the major independent investment banks such as Goldman
Sachs and Morgan Stanley reflect three product segments:

1) Investment banking (fees for M&A advisory services and securities underwriting

2) Asset management (fees for sponsored investment funds

3) Trading and principal investments [broker-dealer activities including proprietary trading

("dealer" transactions) and brokerage trading ("broker" transactions)].

In the United States, commercial banking and investment banking were separated by the Glass–
Steagall Act, which was repealed in 1999. The repeal led to more "universal banks" offering an
even greater range of services. Many large commercial banks have therefore developed
investment banking divisions through acquisitions and hiring. Notable large banks with
significant investment banks include JPMorgan Chase, Bank of America, Credit
Suisse, Deutsche Bank, UBS, Barclays, and Wells Fargo. After the financial crisis of 2007–
08 and the subsequent passage of the Dodd-Frank Act of 2010, regulations have limited certain
investment banking operations, notably with the Volcker Rule's restrictions on proprietary
trading.

The traditional service of underwriting security issues has declined as a percentage of revenue.
As far back as 1960, 70% of Merrill Lynch's revenue was derived from transaction commissions
while "traditional investment banking" services accounted for 5%. However, Merrill Lynch was a
relatively "retail-focused" firm with a large brokerage network.

INTRODUCTION

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Management Consultant and Investment Banker Focus Areas of the organization are Structured
Finance, PE / VC Funding, Mergers & Acquisitions, Joint Ventures, Cross Border Growth
Strategies, International GAAP Advisory, Valuation & Strategy, Corporate Structuring and
Restructuring, Process Implementation, Market and Business Growth Strategy. We, Sri Sattva
Group of Advisors are headquartered at Bangalore and focus on corporate advisory. Our Senior
management comprises Chartered Accountants, Lawyers and finance professionals who carry a
rick experience with them that they have obtained from having worked with top multi-national
organizations, consulting firms and financial institutions. Our organization has also formed a
network of experts on various industries, M&A consultants, Fund Raising advisors, Corporate
Strategy Advisors, Chartered Accountants, Lawyers, Engineers, Company Secretaries,
Management Accountants and other professionals. Our team works to deliver customer specific
solutions with the endorsement of industry experts.

Specialties
PE / VC Funding, Mergers & Acquisitions, Business and Market Development Strategy,
Valuation & Restructuring Strategy

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 Established in 2009, SriSattva Group of Companies has
seen the entrepreneurial journey with startup enthusiasm,
SME stability and the constant growth forward. We grow
along with our clients and we view the entire ecosystem
from the viewpoint of an entrepreneur and not an advisor.
Nothing about us is conventional! Our HR System,
Working Policy, Team, Assignments, Client handling,
Client servicing, Office– Nothing is Conventional! We
approach every system and every assignment with a
refreshed approach and innovation.
Innovation, Time Saving, Minimal Redundancy,
Eliminating Duplication of Efforts, Maximizing the
Productivity, Integration all our clients under a single
ecosystem, Strengthened network, Pooling of Resource and
Output Driven Approach is our way of working!

We believe in the Sanskrit concepts of “Vasudevam Kutumbakam” (the world in one family) and
“Pratītyasamutpāda” (dependent origination or dependent arising). Our Global Network and
extremely customized team for every assignment ensures just not timely output but also is loaded
with value add from experts.

We strive towards placing ourselves as one stop destination for all finance and growth related
needs of an organization. Our range of services includes from playing the role of your
Company’s CFO, Sales Strategist, Growth Strategist, Restructuring Strategist, M&A Strategist
and the list goes on.
Approach - Every Company is different and so are their requirements, problems and solutions to
those problems. We do not work with pre-developed plan preloaded on a software. Our senior
team develops a specific tailor made execution plan aimed to solve the problems of the Company
towards successful completion of the plan and not just execute the plan.
Attitude - Even Gandhi and Lincoln didn't have attitude, then how can we? But, we do have an
attitude, an attitude to work alongside our customers by borrowing their knowledge and
integrating it with ours to come up with a new solution. Our attitude is “WE CAN and WE
WILL”!
Perspective - Number of perspectives in this world are directly proportional to the number living
beings. We wholeheartedly believe in viewing the situation from various perspectives (Primary
Stakeholders - Company, We as Advisors, Industry Experts, Competitors, Industry trendsetters,
Industry forecasters and the like) before concluding on the way forward.
Outlook - Simple, Loud and Clear! We definitely see things the way you do but with a difference
and that’s why we see that small thread in the piece of cloth which if removed or fixed can
strengthen the entire Fabric.

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Network - We have more than a 100 associate firms from across the globe who work with us on
various assignments. We have local experts in all top destinations across the globe in most of the
industries to work along with us to fulfill your requirements.
Focus - OUR CLIENTS and THEIR SUCCESS!

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 Background and Inception of the Company

Ms Aparna RamMohan leads SriSattva Group as the

Managing Director of the Group. She is a Chartered Accountant
(India), member of The Institute of Chartered Accountants of
India, Chartered Global Management Accountant (US),
Chartered Management Accountant (UK) and a member The
Chartered Institute of Management Accountants, London, UK.
She started her career with Price Waterhouse Coopers before she
began her entrepreneurial journey in 2009.
Highly motivated in dividual who spreads her enthusiasm to achieve and perform to her team.
Through her knowledge and capabilities to come up with innovative solutions has hauled many
Company out of distress and back on track. Her academic interests are as high as per
professional commitments. Her articles are published in various Global finance related
magazines and she is often invites to speak in various knowledge forums.
She plays role of an advisor, mentor and director in various Companies.

Mr K RamMohan heads the Legal, Risk and Compliance

division of the group. His education background includes MSc
(Chemistry), CAIIB, PGDBM and is a Lawyer by qualification
with 40 years of Senior Level Banking Experience. He retired
as Chief General Manager and Chief Vigilance Officer of
Punjab National Bank in 2015 and joined SriSattva Group. He
handles Corporate Risk Advisory, Risk Management, Forensic
Investigation, Fraud Risk & Vigilance Management, Corporate
Governance & Compliance and Corporate Growth Strategies.
He worked very closely with the Punjab National Bank Board in formation of policies and led
various teams to create risk rating and productivity measurement related models for the
organization. He served as Director in various organizations including, Everest Bank Nepal,
Experian India, Smera India, Assest Recovery Subsidiary of IFCI. He focuses on the legal and
compliance related activities for SriSattva Group.

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 Our team is spread across the globe and is a mix of
professionals from various domain including Chartered Accountants, Management Accountants,
Lawyers, MBAs, Engineers and industry experts. We have a very large team of industry experts
from across the globe who partner with us as team member for each of our assignment. We are a
large team of output oriented professionals.

We also have a very professional network of associate firms from across the globe who work
with us on various assignments. We have local experts in all top destinations across the globe in
most of the industries to work along with us to fulfil your requirements.

We are a large network of experts comprising of highly

experienced and qualified firms and professionals from
across the globe. We have local experts in all top
destinations across the globe covering most of the
industries to work along with us to fulfill your
requirements.

We believe that everyone can’t be an expert in everything

and everyone cannot be present everywhere. We practice the philosophy of working together but
also independently. We are in a continuous process of building our team of experts to increase
our productivity and success rate with each passing day. We have a very large and robust network
of experts from across the globe who join in our team as advisor, reviewer or as team leader to
suit the specific requirements of an assignment, as a part of a very much customized team of
experts.

We are also in the process of building a network of individual investors who would want to
become a part of our investor community.

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Goal and Focus

Our Goal is to provide effective solutions designed

to boost your business, be it small or a large
organization. Our team design solutions tailored
specifically to the needs of your business in order
to ensure you achieve your goals.

We offer a wide range of specialized and tailor

made professional services that meet the
immediate as well as the long-term business
needs of an organization. Our Focus is to
provide strategy to the Corporate Board to
enable long term growth.

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We harp on this not only to our clients but to each and every employee & professional associate
of SriSattva Group - Our Motto conveys it all, Success is all about value, quality and working
towards it with the uncompromising elements of hard work and smart work!

SriSattva Group believes in Innovation, Out of the Box Thinking and Boldly Differentiated
Ideas!

We believe in WORK! Efficient, smart, output oriented, value adding and ultimately work which
gives 100% client satisfaction. That’s all that we care! Our employees have high working
flexibility – work from home, work from office, part time, full time, assignment based. But, most
inflexible and zero compromising policy – every work should deliver quality and value add.

Our Interview and Selection Process is rigorous but once you are a part of our team, your regular
on job training and career development is our responsibility. We believe in work life balance
alongside 100% client satisfaction.

SERVICES
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At Your Service!
Our Motto conveys it all; Success is all about value, quality and working towards it with the
uncompromising elements of hard work and smart work!
Value is what customer looks at, quality makes our positions stronger, hard work has no
substitute and we help you work smarter to expedite your journey towards success. As a
professional services firm, we know that value and quality are also the secret ingredients for a
trustworthy relationship with a long term vision and it starts with the very first engagement.
We work along with the management to achieve the organizational goals in a smarter way within
defined timeless. We offer an integrated and a large basket of services. We are one stop
destination to all your finance related needs.
We are all that you need for financial and management strategy. We could be your accountant,
your CFO, your strategist, your M&A head, your growth planner, your Management Information
Reporter, your financial advisor, your cross border strategist, your fund raising advisor, your
legal and compliance advisor and all that you need from a Finance Director.

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Quick Reports!
We serve you “at once” to maximize your productivity
Loss of time is Loss of Productivity!
Every time Company’s management is in the middle of taking a very important decision, they
require quick information, reports and analysis. Management turns towards Company’s finance
head, who further turns towards their accountants to deliver the required analyzed data and
reports. Management is often met with situations of failure to deliver the required reports on time
due to existing work load or delivery of report with errors either out of lack of knowledge or lack
of time and the like. Such time lags or errors not only delays the significant decisions making
process but also adversely impacts the management decisions which could be the beginning of a
catastrophe.
We have used our learning curve and huge database of knowledge to develop automated models
and tools which when fed with relevant data provides the desired results. These results are
verified first level by our high qualified team and second level by our board of experts before it
is delivered to you. But, the delivery time is as short as 24 hours to a maximum of 48 hours
(reports prepared + analyzed + verified by professional + approved by experts).
We provide expert services at affordable costs and there is no fear of data loss due to employee
attrition. We at your choice could save the data and avoid duplication of work.

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TIME BOUND REPORTS
We deliver very quick analysis and reports to our clients facilitating them to take significant
decisions quickly and accurately. Our in-house designed automated modelingtools generate
reports which are verified by our experts.

WORK BOUND REPORTS

We take up special tasks based on your work specifications tailor made to suit your report
delivery time requirements. Our in-house designed automated modeling tools reduced our time
and your cost to deliver the reports.

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IMMEDIATE REPORT
Time is sometimes key and even 24 hours seems like a long time, you could simply key in your
data, follow our steps and get immediate results or reports through our in-house designed
automated modeling tools.

DON’T WANT TO PAY US YET

Everyone wants freebies and we would love to give a few freebies as well. We have a few online
tools with limited version put up online for your use. We won’t charge you for that but do let us
know if you find them useful.

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CORPORATE RESTRUCTURING
Unlike most of us think, ‘Restructuring’ is actually a positive term. Restructuring indicates the dedication
and desire of the management to uplift a falling business or restructuring their existing strategies towards
a faster growth and an upward curve.

GROWTH STRATEGY

With year on year growth in Equity Investments, everyone is in the race of raising funds. Well,
while we believe in the benefits of fund raise, we believe in stronger towards the basic principle
of business – increase top & bottom line & reinvestment of profits.

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STANDARD INDUSTRY REPORTS

Based on our team’s primary and secondary

research across sectors we have created certain
standard Industry Reports. You get to choose the
content you require in your report and you can
pay as per the content.

STANDARD BUSINESS PLANS

Our knowledge and database of Business Plans
on various industries & specific sectors over
time, gave birth to general business plans
focussed to assist Start Ups, SMEs & entry
decisions at content specific cost.

STANDARD VALUATION REPORT

Using our learning curve to our advantage, we
present to your general valuation reports for
various industries and sectors focussed to assist
Start Ups, SMEs & business entry decisions at
affordable cost.

STANDARD FEASIBILITY REPORTS

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Our research team regularly works on feasibility reports for various sectors across the globe. We
present to you, concise versions of such report at extremely affordable costs for your immediate
use and understanding.

OTHER STANDARD REPORTS

Our experts in accounting, finance, law, taxes
and Industry have prepared certain specific
reports. Our clients choose our reports rather
than redoing the entire gamut of seeking opinion
and investing time & cost.

Business Carried On By the SriSattva

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 We work along with the management of each
of our customer not as advisor but as one of the stakeholders. Every engagement we sign is the
beginning of a long term relation and a new investment for us. We do choose our investments but
once we get engaged, there is no turning back till the goal is achieved. Our list of clients ranging
from Start Ups to Listed Entities

Business can’t be done alone!

It is a coherent structure of provider and receiver. Well, we wish it was that easy, but it isn't! It’s a
very complex structure of What to Provide, Whom to Provide, When to Provide, Where to
Provide, How to Provide and With whom to Provide!
Competition and Dynamism in Industries is as complex an atmosphere revolving very closely
around expertise, knowhow, funds, supply chains, demography, skilled workers, accounting
standards, competitors, government policies, economic conditions, regulatory and environmental
factors.
For an organization to have the best of all industries and experts for each of the required skills is
a dream. We continuously strive to achieve this by bringing on board experts from various fields
and industries through our network of specialists with requisite business and technical skills,
experience and knowledge base to deliver customized solutions to our clients across the
Industries.
We don’t hire the “best” because “best” are not available for employment but we partner with
them to deliver the “best” for each of our client, so that they can continue doing what they are
finest at and also allow us to benefit from their proficiency.
Our industry-focused network is premeditated to anticipate and address your business needs.
Together, our people, deployed across 100+ countries can visualize the magnified picture and
minimize the steps involved to achieve them.

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 NEW TO THE INDUSTRY

All set to be an entrepreneur? Whether you have already

chosen your industry or in the process of choosing one,
our panel of experts will guide you and mentor you
through the journey of entrepreneurship. We work along
with the Start up as stakeholders

VETERANS IN THE INDUSTRY

Already an Industry Expert?

Then, allow us to tell you what is happening in your

industry across the globe. Our Industry Experts can
collaborate with you to design something new give
your business a fresh look to boost your top and
bottom line.

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 RESTRUCTURING INDUSTRY

You sure are in a booming business and your competitors

are minting money. But, something isn’t working for you
in terms of profitability. We will diagnose the issue,
restructure your business to integrate with the profitable
Industry.

EXPANSION PLANS

Cross border and Domestic Expansion is not a daunting

process. Our associate firms with local expertise will work
hand in hand with you to not only conceive the plan but
also executive it with you towards a successful beginning

GLOBAL KNOWLEDGE

Knowledge of Challenges and risks associated with

different entry options could make a difference. Interested
in knowing what is happening across the world in your
Industry?

The policies,taxations, investments, growth, profitability

and all about the industry, Scan our database on the
Industry or subscribe to our newsletter.

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 LIST OF INDUSTRIES

 Aero Space and Defense

 Automotive
 Banking
 Building & Construction
 Capital Projects
 Capital Markets
 Chemicals
 Education
 Energy
 Entertainment and Media
 Financial Services
 Government and Public Sector
 Healthcare
 Hospitality
 Industrial Manufacturing
 Infrastructure

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 Sales Strategy

World is shrinking with the digital connect. Shouldn’t that make selling easier? But, most of our
clients tend to believe that is one of the reasons making sales more difficult – growing
competition and ease of connecting. It magnifies customer awareness and improves his
bargaining power.
Selling is not directly proportional to the number of salesperson involved. Selling is all about
effective sales, quality of product, minimal cost of sales and maximum repeat customer. We
understand that not just as sales strategist but as entrepreneurs.
The most important part of sales is “to Sell”, but that’s also the most complicated part. Having a
large sales or marketing team but everything seems ineffective? What you need is the right kind
of direction and approach to plan your sales. Our team of sales experts who have decades of
experience as Sales Director and in other senior positions which chalk out a workable plan for
your sales team to multiply your sales are minimal cost of sales.
Our tailor made Sales Strategy revolves around traditional, digital, and integrated solutions based
on our experts’ research.
Just not sales strategies, but we also provide B2B Sales Services and work towards closing large
sales transaction through our B2B Network.

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 B2B SALES
Our sales experts work with our clients as one of
their sales person towards closing Business to
Business (B2B) Large Scale Sales Deals on a
regular basis on success fees pricing model.

SHARED SALES DIRECTOR

You have a sales team already but for various
reasons don’t want to hire a full time Sales
Director, then, we could help you with our
Shared Sales Director.

SALES MIS
Our Sales Management Information System or
Management Reports will give you better
understanding of your sales and help you alternate
your strategies towards profitability.

SALES STRATEGY

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All good about your business, saleable products and high demand in the Industry, our experts’
strategy will help improve your sales and help your geographic expansion.

SALES TRAINING
You have a good sales team, sales manager and
they have been doing well. But, you need
someone to train them regularly to keep them
motivated & up to date with sales strategies.

Work Flow Model

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 S riS
attva

C o m p le W ork to
ted b e D on e
W ork

W ork In In t
P rocess ern

R es
earc
h

From the above work flow model we can see the work flow process of the given work by the
SriSattva Company to the Interns.

The SriSattva Company gives work to the Interns through Emails & Asana App.

Then the Intern has to do Research & Analysis on the work given by the SriSattva Company. If
there is any query about the work, Intern can ask queries to the Internship Guide through Emails,
WhatsApp& Asana App and get them solved.

After the completion of the work, the completed work is submitted on the website of company or
Asana App.

Research & Analysis

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In research we studied about the Global Capital Market of Asian Countries, European Countries,
North American Countries, South American Countries, Australian Countries and African
Countries.

The Countries covered under research are:

 Fiji
 Sudan
 Yemen
 Nepal
 Nigeria
 United Arab Emirates
 Luxembourg
 Hungary
 Indonesia
 Bahamas

 We studied about the Capital Market and Size of Global Capital Market and Size of
Indian Capital Market.
 We studied about Capital Market conditions of each country.
 Brief detail on Capital Market trading mechanism
 Analysis of ten companies in each of the capital market country of research.
 Analysis of Indian Companies.
 Comparative analysis of capital market of Indian Companies and the companies of the
research countries.

What is Capital Market?

Capital markets are financial markets for the buying and selling of long-term debt or equity-
backed securities. These markets channel the wealth of savers to those who can put it to long-
term productive use, such as companies or governments making long-term investments. Capital
markets are defined as markets in which money is provided for periods longer than a year.
Financial regulators, such as the UK's Bank of England (BoE) or the U.S. Securities and

31
Exchange Commission (SEC), or India’s Stock Exchange Board of India (SEBI) oversee the
capital markets in their jurisdictions to protect investors against fraud, among other duties.

Examples of Capital Market Transactions

Capital Market:

Financial regulators overseas the capital market in their jurisdictions to protect investors against
fraud among others duties.

1. Capital markets are markets for buying and selling of stocks and bonds for medium and long
term duration.
2. The size of national capital market is directly proportional to the size of economy.
Primary Market:

1. Stocks and bonds are directly issues by the companies to investors, businesses, underwritten
and other institution.
2. It allows companies to raise capital before holding an IPO to make direct profit.
Secondary Market:

1. It takes place in stock market where investment banks other firms, private investors and
variety of others parties resell their equity and debt to investors
2. Where securities are resold in the secondary market the original seller does not make any
profit from sale.

Size of Indian Capital Market:

India Market Size has enormous potential to become a major global force to reckon with the
credit for having a huge market size in India is largely attributed to the fact that the India is the

32
second most populated country in the world. Owing to the liberal government policies, the India
Market Size has increased of late as it has witnessed the entry of new players to the Indian
market scene. It is very difficult to gauge the full extent of India Market Size due to the
extremely heterogeneous nature of the various elements within the country.

The Indian market size can be broadly classified into four components:

The Labor Market in India is among one of the cheapest in the world. Besides, there are a large
number of English knowing technically qualified workforce in the country. This increases the
India Market Size vastly and also makes India one of the favorite destinations for overseas
companies to set up branches. The labor market consists of workforce in the entire three sectors
primary, secondary and tertiary sector.

The Money Market in India deals with all the aspects related to the lending and borrowing of
funds. Since the India market size is huge, performance in the country's money market depends
on a variety of factors. The money market is closely connected to the foreign exchange market.

The Commodity Market comprises of exchange of goods that is estimated in terms of the
domestic currency. The wholesale market and the retail market are important components of the
commodity market.

Capital Market deals with all the assets of the country. Here both the government and public
companies can raise short term and long term funds, depending on their requirements. The bond
market and the share market come under the capital market.

Size of Global Capital Market:

Using primarily float-adjusted market values of established market indices, we estimate the total
size of the global invested capital market from an U.S. investor perspective to be USD $101.1

33
trillion at the end of June 30, 2013. We did not consider hedge funds as a separate asset class, as
they invest mostly in categories already covered (stocks, bonds, etc.) in our analysis. 3 Estimates
for private real estate (debt and equity) and private equity are as of December 31, 2012. 4 Global
Invested Capital Market | Investment Consulting Table 2 Asset Class/Category Market Size
(USD; Trillions) Proportion of Global Invested Capital Market (%) U.S. Equity ex REITs $18.19
18.0% Non-U.S. Equity (Developed) ex REITs 13.85 13.7 Emerging Markets Equity ex REITs
3.99 4.0 Frontier Markets Equity ex REITs 0.15 0.2 Private Equity 2.52 2.5 Private (Unlisted)
Infrastructure 0.24 0.2 Timberland 0.05 0.0 Private Real Estate Debt 5.80 5.7 Private Real Estate
Equity 4.20 4.2 Public Real Estate Equity 1.26 1.2 Commodities4 0.33 0.3 High Yield Bonds
1.85 1.8 Bank Loans 0.88 0.9 Emerging Market Bonds (Sovereign; USD) 0.55 0.5 Emerging
Market Bonds (Sovereign; Local Currency) 1.48 1.5 Emerging Market Bonds (Corporate; USD)
0.68 0.7 Insurance-Linked Securities 0.02 0.0 U.S. Bonds (Investment Grade) 15.34 15.2 Non-
U.S. Bonds (Developed) 22.65 22.4 Inflation-Linked Bonds 2.57 2.5 Money Market/Cash
Equivalents 4.49 4.4 Total Global Invested Capital Market including Hedge Funds $101.1
100.0% Total Global Invested Capital Market excluding Hedge Funds $98.66 97.6% Hedge
Funds 2.41 2.4 Total Global Invested Capital Market including Hedge Funds $101.1 100.0%

Capital Market Conditions in the Countries of Research

BAHAMAS

34
As recently as 1989, before the Wall came down, stock markets were painted by
Marxists/Leninists in general and Communists in particular, as the pre-eminent symbol of
capitalist greed and the continued dominance of the rich over the poor. Now ten years after the
collapse of the Soviet Union, development of capital markets have become a priority in many
developing countries including The Bahamas. The new emphasis on equity markets was driven
by the failure of past non-market based strategies and the realization of the potential role that
private initiative and capital markets could play. Capital markets have proved, in developed
countries, to be remarkably efficient at bringing savers and borrowers together. As a
consequence, many developing countries are also looking to local equity markets to provide
conditions conducive to attaining more efficient risk sharing and resource allocation as well as
mobilizing and improving the structure of domestic finance.

Such appears to be the case in The Bahamas, where there has been a flurry of new issues coming
to the market, and just as eagerly taken up by the local investing public. Although shares have
been available to the general public in The Bahamas as early as 1969, with the issue of New
Providence Development Company, they have only become popular as investment vehicles since
the Global Bahamas Holdings and the Bank of The Bahamas initial public offerings in 1994.
However, since that time, no fewer than 16 companies have come to market as well as three
domestic equity-based mutual funds and the first ever Paradise Island Bridge Bond Issue. Not
counting the mutual funds and the bond issue, these companies have raised in excess of $170
million, with the market value of those new issues alone exceeding $360 million As at end 1999,
the total capitalization of the “over–the-counter” (OTC) market in The Bahamas including new
as well as existing issues was estimated to have exceeded $1.3 billion. It is interesting to note
that this is the same as the combined value of the total of outstanding Bahamas Government
Registered Stock and Bahamas Government Treasury Bills. There is no reason to think that in the
near future, if current trends continue, that the market capitalization of equities will come to
dwarf that of the fixed income market.

The rapid development of this equity market has been in concurrence with the development of
specialized institutions to service this industry, new registrars and transfer agents and the
development of a local stock index. This index, “FINDEX”, created by Fidelity Capital Markets

35
Limited, one of two local brokerage houses, has measured the growth of the nascent market since
January 1994 and has shown an overall appreciation in excess of 20% each year since inception.

The emergence of the OTC market has coincided with, and in some cases helped accelerate
government initiatives to enact securities and mutual funds legislation, and the establishment of
create a Securities Board, now the Securities Commission, to oversee the development of capital
markets and to take steps necessary towards the establishment of a local stock exchange,
expected on stream in 2000.

There has been considerable discussion about this rapidly developing equities market in The
Bahamas. However, consensus has not yet been achieved in regards to several questions:

Is this development a product of evolving economic conditions, general financial liberalization

or liberalization of the banking sector in particular?

Will equity finance displace the traditional dominance of bank financing in The Bahamas?

Source: www.thebahamasinvestor.com

FIJI

Under the Capital Markets Decree (2009) the Reserve Bank of Fiji is responsible for the
regulation and development of Fiji’s Capital Markets.

36
 The word “market” refers to a public place or platform where buyers and sellers make
transactions, directly or through licensed intermediaries.

There are three different types of markets operating within the capital markets industry in Fiji
and each market operates on either the primary or secondary level or both:

i. Equity Market- in this market, the South Pacific Stock Exchange (SPSE) provides a market,
called a stock market, for trading of shares of companies listed on the stock exchange. There is
also an over-the-counter (OTC) registry for companies that are not listed on the stock exchange,
provided by Kontiki Stock Brokers.

ii. Debt Market- includes bonds and hybrid products such as convertible notes and other interest
bearing products issued by Government and companies; and

iii. Managed Funds Market– this includes the unit trust market provided by the Unit Trust of Fiji,
Fijian Holdings Unit Trust and Fijian Holdings Property Trust.

Each of these markets operates under two main broad level categories:

The Primary Market– At this level, companies raise funds directly from investors by issuing
shares, bonds and other securities such as convertible notes. Here, debt and equity securities are
created and bought by investors for the first time, this is referred to as an Initial Public Offering
(IPO). Investors who buy shares in a company are referred to as shareholders of the business.

The Secondary Market – Once a company has undertaken its IPO and issued securities (shares,
bonds or convertible notes) investors can trade (buy more or sell) their shares, bonds and other
securities with other investors on the secondary market by using a licensed broker. In Fiji, the
South Pacific Stock Exchange (SPSE) provides a secondary market for companies listed on the
stock exchange. For public companies that are not listed on the stock exchange, investors can
trade their shares directly with the company or by using an over-the-counter (OTC) facility if one
is provided. Companies like Fiji Gas, Data Bureau and Yatu Lau are examples of companies that
trade their shares on the OTC provided by licensed broking firm Kontiki Stockbrokers. Both the
SPSE and the Kontiki OTC are regulated by the Reserve Bank of Fiji.

37
The Unit Trust of Fiji (UTOF) and Fijian Holdings Unit Trust (FHUT) investment portfolios
include investments in listed companies, unlisted companies, bonds, term deposits and other
local and overseas managed funds. By investing in a managed fund like UTOF and FHUT, unit
holders get an opportunity to invest in a portfolio of investments that we could otherwise not
afford. A thriving and efficient capital markets can be a major contributor to equitable and
sustainable economic growth in any country. Developed and efficient capital markets assists in
the creation and expansion of businesses by channeling savings, or surplus funds, from savers to
businesses that require funds for development and growth. This in turn creates employment and
increases wealth including job creation through the creation of new businesses and expansion of
existing businesses, economic growth and technological innovation.

Members of the public who wish to participate and invest in the capital markets must ensure that
they deal only with licensed companies and individuals. The Reserve Bank licenses all
participants and intermediaries in the capital markets so members of the public are advised to
verify that the person that they are dealing with has been approved by the Reserve Bank before
parting with any of their funds.

HUNGARY

38
In order to promote the development and to improve the competitive edge of the capital market
on the international stage, to ensure that transparency is achieved, to improve regulations
pertaining to actors of capital markets, to improve the security of investments and the protection
of investors, and finally, to improve the efficiency of the supervision of capital markets, the
Parliament has adopted the following act:

Unless provided by treaty or international convention to the contrary, this Act shall apply

To securities issued in the Republic of Hungary as part of a series as well as to the marketing of
such securities by a Hungarian issuer in a foreign country and the listing of securities issued as
part of a series on a stock exchange operating in the territory of the Republic of Hungary;

To the acquisition of interest in the capital of any public limited liability company established or
registered in the Republic of Hungary;

To investment services and activities auxiliary to investment services, and commodity exchange
services provided in the Republic of Hungary;

To investment services and activities auxiliary to investment services, commodity exchange

services and investment fund management services provided by the foreign branch of an
investment service provider, commodities broker or investment fund manager that is established
or registered in the Republic of Hungary;

To any cross-border services provided by an investment service provider or a commodities

broker that is established or registered in the Republic of Hungary;

To investment fund management activities performed in the Republic of Hungary;

To any cross-border services provided by an investment fund manager that is established or

registered in the Republic of Hungary;

To exchange market operations performed in the Republic of Hungary;

To the activities of clearing houses and central depositories operating in the Republic of
Hungary;

39
To any cross-border services provided by an organization that is established or registered in the
Republic of Hungary and is engaged in providing clearing house and exchange market services;

To the Investor Protection Fund and to the insurance facilities it provides;

To supervisory activities of Hungarian authorities as laid down in this Act;

The supervision of the outsourcing service provider under the provisions of this Act.

To companies and mixed-activity holding companies - other than investment enterprises - with a
close link to investment enterprises or financial holding companies subject to supervision on a
consolidated basis.

Enterprises and mixed financial holding companies that have close links with investment firms
and mixed financial holding companies, other than financial institutions, which are subject to
supplementary supervision.

40
 INDONESIA

Indonesia's Stock Exchange (IDX) redoubled efforts in recent years to deepen the emerging
economy's capital markets. Access to funding through stocks and bonds is vital for local
businesses to grow stronger ahead of the launch of the ASEAN Economic Community (AEC).
Indonesia also needs to expand the local investor base to reduce the capital markets' exposure to
cross-border capital flows. In a bid to increase issuance, trading volumes and liquidity, IDX – in
cooperation with Indonesia's Financial Services Authority (OJK) – has been busying itself with
extending trading hours, improving trading mechanisms, simplifying issuance procedures,
allowing new investment products, standardizing reporting requirements, reinforcing corporate
governance and educating the public on the benefits of investing in listed securities. These efforts
have not been in vain. The number of listed companies, total stock market capitalization and
daily trading value are all on the rise. The growth of Indonesia's capital markets has not been lost
on global investment funds, but it is local players that have most to gain from the rising
momentum on their home turf, as the market's relatively low penetration with asset management
services points to ample scope for expansion.

IDX has witnessed considerable growth over the past few years in terms of securities issued. In
total, Rupiah-denominated funds worth 411.90 trillion RP were raised in 2014, up from 383.09
trillion RP the previous year and 270.66 RP in 2011. The increase was primarily due to the
growing issuance of government bonds and sukuk (See the Rise of the Sukuk in Indonesia’s
Islamic Finance Industry), with equities and corporate bonds displaying no conclusive trend.
IDX listed 506 equity issuers with a total capitalization of 5,228 trillion RP at the end of 2014,
up from 440 companies valued at 3,537 trillion RP three years earlier. The average daily stock
trading value also rose significantly, namely from 4.95 trillion RP in 2011 to 6.01 trillion RP in
2014. The devaluation of the Rupiah, however, did have some repercussions on the market in
2014, with trading volumes and the number of initial public offerings (IPO) declining compared
to the preceding year. At less than 50% of the country's annual GDP, Indonesia's stock market
capitalization remains relatively low. For instance, regional peers Malaysia and Singapore,
though much smaller than Indonesia in terms of population, have a greater number of listed
companies, and their combined market value of listed companies far exceeds national annual
GDP.

41
IDX recorded a record net inflow of foreign funds amounting to almost 43 trillion RP in 2014.
The government and IDX are encouraging Indonesians to invest in stocks and bonds in a bid to
alleviate the country's dependence on foreign funds and reduce the volatility of the Jakarta
Composite Index. Greater engagement of local investors in the capital market is also seen as
important to boost Indonesia's global competitiveness. For the time being, foreigners still control
a majority of the Indonesian capital market; holding 59% of IDX-traded securities at the end of
2014, which is down from 65% in 2011. Mutual funds have set out to change this and are finding
themselves in a highly attractive market, as Indonesians grow more comfortable with investing in
stock market securities (See Overview of Indonesia's Mutual Fund Industry). New technologies
such as online banking and mobile trading bring the stock market close to home, while the
internet also helps Indonesians educate themselves about investment products and how to get
started (See Improving Internet Access in Indonesia). Bareksa.com, for example, is an
Indonesian startup that affords visitors direct access to mutual funds from a growing number of
investment managers.

42
 LUXEMBOURG

Our team is made up of highly specialized and multilingual lawyers who have gained their
experience in leading international law firms and are used to manage complex international
finance transactions.With the aim of combining an extensive technical knowledge of both the
applicable laws and the relevant industries and a deal-driven and pragmatic approach, our team
intends to become a leading player on the Luxembourg market. We advise our clients on all
matters relating to Banking and Finance, Securitization, Equity and Debt Capital Markets. Our
expertise covers:

 Banking

 Secured (syndicated and non-syndicated) lending

 Leveraged finance

 Acquisition finance

 Asset finance

 Real estate finance

 Restructuring and insolvency

 Regulatory matters relating to the financial services industry

 Debt and equity capital markets

 Bond issues and debt issuance programmers

 Listing on the Luxembourg Stock Exchange

 Clearing and settlement

 Regulatory matters relating to the financial markets

 Securitization and structured finance

 Conventional and synthetic securitization

43
  Asset-backed securities

 Repackaging

 Securities lending

 Our team works in close relationship with both our tax and corporate departments in
order to offer our clients fully integrated advice and tax efficient solutions.

Source: www.luxemburgforfinace.com

UNITED ARAB EMIRATES

Emirates Capital is a financial service provider in Investment Management and Corporate

Finance. Emirates Capital is headquartered in Dubai and regulated by the Dubai Financial
Services Authority (DFSA).
As an Investment Manager, Emirates Capital provides investment management services to
Offshore/Foreign Funds. Emirates Capital utilizes its established track record and knowledge
base to raise and manage third party capital, which will primarily be structured through one or
more offshore Funds to be managed by Emirates Capital from the DIFC. This enhanced business
activity will focus on management of private equity funds, hedge funds, venture capital and other
alternativeinvestments.
The Funds managed by Emirates Capital will have an investment strategy based on opportunistic
minority or control investments in middle market regional and international companies operating
in targeted sectors, including: energy and infrastructure; consumer and retail; healthcare and
education; and business services. The investment management strategy is governed by the
Investment Committee. Emirates Capital is able to successfully leverage off its excellent local
and global relationships to assist in sourcing non-retail sophisticated/professional investors for
the Funds. Such investors are sought from the DIFC, the region and/or globally.
In Corporate Finance, the Firm’s primary focus is providing financial advisory and capital raising
services to middle market clients in the Middle East, Europe, North America and Southeast Asia.
Our services include mergers and acquisitions advice, private equity advisory, private placements
and public offerings of debt and equity. Typical transactions include the financing of business
expansion, either organically or through acquisitions, recapitalizations and public offerings of

44
debt and equity on regional exchanges.Emirates Capital’s clients primarily comprise of middle
market companies, private owners of businesses, private equity firms and providers of debt
capital. We are committed to the highest standards of service excellence by delivering the full
resources of our firm to every client. We differentiate ourselves by the depth and breadth of
experience of our senior professionals. We are uniquely qualified to serve the long term strategic
interests of our clients as a result of our extensive transaction experience and broad network of
relationships developed over decades with leading investment banks, private equity firms,
consulting firms and established industrial groups.

YEMEN

At the time of unification, South Yemen and North Yemen had vastly different but equally
struggling underdeveloped economic systems. Since unification, the economy has been forced to
sustain the consequences of Yemen's support for Iraq during the 1990–91 Persian Gulf
War: Saudi Arabia expelled almost 1 million Yemeni workers, and both Saudi Arabia
and Kuwait significantly reduced economic aid to Yemen. The 1994 civil war further drained
Yemen's economy. As a consequence, for the past 10 years Yemen has relied heavily on aid from
multilateral agencies to sustain its economy. In return, it has pledged to implement significant
economic reforms. In 1997 the International Monetary Fund (IMF) approved two programs to
increase Yemen's credit significantly: the enhanced structural adjustment facility (now known as
the poverty reduction and growth facility, or PRGF) and the extended funding facility (EFF). In
the ensuing years, Yemen's government attempted to implement recommended reforms—
reducing the civil service payroll, eliminating diesel and other subsidies, lowering defense
spending, introducing a general sales tax, and privatizing state-run industries. However, limited
progress led the IMF to suspend funding between 1999 and 2001.

In late 2005, the World Bank, which had extended Yemen a four-year US$2.3 billion economic
support package in October 2002 together with other bilateral and multilateral lenders,
announced that as a consequence of Yemen's failure to implement significant reforms it would
reduce financial aid by one-third over the period July 2005 through July 2008. A key component
of the US$2.3 billion package—US$300 million in concessional financing—has been withheld
pending renewal of Yemen's PRGF with the IMF, which is currently under negotiation. However,

45
in May 2006 the World Bank adopted an assistance strategy for Yemen under which it will
provide approximately US$400 million in International Development Association (IDA) credits
over the period FY 2006 to FY 2009. In November 2006, at a meeting of Yemen's development
partners, a total of US$4.7 billion in grants and concessional loans was pledged for the period
2007–10. At present, despite possessing significant oil and gas resources and a considerable
amount of agriculturally productive land, Yemen remains one of the poorest of the world's low-
income countries; more than 45 percent of the population lives in poverty. The influx of an
average 1,000 Somali refugees per month into Yemen looking for work is an added drain on the
economy, which already must cope with a 20 to 40 percent rate of unemployment. Yemen
remains under significant pressure to implement economic reforms or face the loss of badly
needed international financial support.

At unification, both the Yemen Arab Republic and the People's Democratic Republic of
Yemen were struggling underdeveloped economies. In the north, disruptions of civil war (1962–
1970) and frequent periods of drought had dealt severe blows to a previously prosperous
agricultural sector. Coffee production, formerly the North’s main export and principal form of
foreign exchange, declined as the cultivation of khat increased. Low domestic industrial output
and a lack of raw materials made the YAR dependent on a wide variety of imports.

46
 MYANMAR

The Myanmar Securities Exchange Centre (MSEC), located in Yangon, Myanmar, is the
country's only stock exchange. The exchange, a 50-50 joint venture between the state-
owned Myanmar Economic Bank and the Daiwa Securities Group, currently lists only two
securities, both of which are rarely traded. This over-the-counter (OTC) market is planned to be
replaced by the Yangon Stock Exchange by 2015.The MSEC is the country's second stock
exchange after the Rangoon Stock Exchange, which traded shares of a few British and American
stocks in the 1930s. The fledgling exchange, operated by seven European firms, was a secondary
OTC market with most of the quotes sourced from Calcutta and Bombay exchanges. It closed
down at the outbreak of World War II. The RSE was revived in the late 1950s to trade shares of
nine public-private joint-venture corporations. But this OTC market too died in the 1960s when
all the firms were nationalized by the military government that seized power in 1962.

Another military government came to power in 1988, and it allowed the state-owned Myanmar
Economic Bank to form a 50-50 joint-venture with Daiwa Securities in April 1996. The
Myanmar Securities Exchange Centre was formed with an authorized capital of 17 million USD
and paid-up capital of 3.4 million USD in June 1996. It listed two public-private joint-venture
firms: Forest Products Joint Venture Corporation and Myanmar Citizens Bank. The exchange
began its trading operations in December 1996.

Currently, the Myanmar exchange is dormant considering that no new companies are listing in
the bourse. Instead, the government plans to set up another bourse. No new companies have
signed up beyond the first two, and there is little trading. A 2011 Reuters report states that the

47
exchange had no trading floor, and had eight employees who handled over-the-counter
transactions and manually updated share prices, using a whiteboard, a marker pen and a stencil
whenever a customer dropped by. Indeed, most people do not even know that the market exists at
all. State-owned and private enterprises alike have chosen not to list. Their reasons include the
firm's fear of tax liability, fear of loss of control and unfamiliarity with the corporate culture.The
MSEC is slated to be replaced by a new full-fledged exchange. In 2011, the government of Thin
Seine selected Daiwa and Tokyo Stock Exchange to help set up a functioning stock market by
2015. With their assistance, the Central Bank of Myanmar drafted a "Securities Exchange Law",
which authorizes the Yangon Stock Exchange (YSE), and was signed into law on 31 July
2013.The Yangon Stock Exchange, expected to open by October 2015, will be run by Yangon
Stock Exchange Joint-Venture Company Limited, a joint venture company with Myanmar
Economic Bank (51%), the Daiwa Institute of Research Ltd of the Daiwa Securities
Group (30.25%), and Japan Exchange Group (18.75%). The new exchange still faces many
challenges. By one estimate, less than one-third of the approximately 70 local public companies
in the country are expected to qualify for listing. Even those that qualify may still not list for the
same reasons—especially the issue of taxes—that have prevented them from listing on the
MSEC in the first place. Moreover, the country's securities companies, accounting firms and law
firms are sufficient to support only a small capital market. A Daiwa executive estimates “between
five and 10” companies to list during the YSE’s first year of operation in 2015, with 10 to 20
listed by the end of 2017.

48
 NEPAL

The Nepal Stock Exchange Limited (abbreviated as NEPSE) is the only Stock Exchange of
Nepal. It is located in Singh Durbar Plaza, Kathmandu Nepal. On March 23, 2014 the equity
market capitalization of the companies listed on NEPSE was approximately US$7896 million.

The basic objective of NEPSE is to impart free marketability and liquidity to the government and
corporate securities by facilitating transactions in its trading floor through member, market
intermediaries, such as broker, market makers etc. NEPSE opened its trading floor on 13 January
1994. As on April 4, 2013, the numbers of listed companies are 334, which includes Commercial
Banks, Hydro Power Companies, Insurance Companies and Finance Companies among
others. The Exchange has 50 registered brokers as of April 2013. The NEPSE Index is primary
all equity market index of NEPSE.

It is regulated by the Securities Board of Nepal.

The history of securities market began with the floatation of shares by Biratnagar Jute Mills Ltd.
and Nepal Bank Ltd. in 1937. Introduction of the Company Act in 1964, the first issuance
of Government Bond in 1964 and the establishment of Securities Exchange Center Ltd. in 1976
were other significant development relating to capital markets.

Securities Exchange Center was established with an objective of facilitating and promoting the
growth of capital markets. Before conversion into stock exchange it was the only capital markets
institution undertaking the job of brokering, underwriting, managing public issue, market making
for government bonds and other financial services. Nepal Government, under a program initiated

49
to reform capital markets converted Securities Exchange Center into Nepal Stock Exchange in
1993.

NEPSE operates on the ‘NEPSE Automated Trading System ‘(NATS), a fully screen based
automated trading system, which adopts the principle of an order driven market. Purchase & Sell
of Physical as well as dematerialized securities is done through NATS.

The index-based circuit breaker system applies at 3 stages of the NEPSE index movement of 3%,
4% and 5%.These circuit breakers when triggered bring about a trading halt in all securities.

In case of 3% movement either way, there would be a market halt for 15 minutes if the
movement takes place during first hour of trading i.e. 13:00 PM. In case this movement takes
after 13:00 PM there will be no trading halt at this level and market shall continue trading.

In case of 4% movement either way, there would be a market halt for half an hour if the
movement takes place before 14:00 PM. In case this movement takes after 14:00 PM there will
be no trading halt at this level and market shall continue trading. In case of 5% movement in
either way, trading shall be halted for the remainder of the day. Members of NEPSE are
permitted to act as intermediaries in buying and selling of government bonds and listed corporate
securities. At present, there are 50 member brokers and 2 market makers, who operate on the
trading floor as per the Securities Act, 2007, rules and bye-laws.

50
 NIGERIA

The Nigerian Stock Exchange (NSE) was established in 1960 as the Lagos Stock Exchange. As
of December 31, 2013, it has about 200 listed companies with a total market capitalization of
about N12.88 trillion ($80.8 billion). All listings are included in the Nigerian Stock Exchange All
Shares index.

The Nigerian Stock Exchange was founded in 1960 as the Lagos Stock Exchange, on September
15, 1960, the stock exchange council was inaugurated. Operations began officially on August 25,
1961 with 19 securities listed for trading but informal operations had commenced earlier in June,
1961. Operations were initially conducted inside the Central Bank building with the exchange
having four firms as market dealers: In lakhs, John Holt, C.T. Bowring and ICON (Investment
Company of Nigeria) The volume for August, 1961, was about 80,500 pounds and it rose to
about 250,000 pounds in September of the same year with the bulk of the investments in
government securities. In December 1977 it became known as The Nigerian Stock Exchange,
with branches established in some of the major commercial cities of the country.

The NSE is regulated by the Securities and Exchange Commission, which has the mandate of
Surveillance over the exchange to forestall breaches of market rules and to deter and detect
unfair manipulations and trading practices. The Exchange has an automated trading System. Data
on listed companies' performances are published daily, weekly, monthly, quarterly and annually.

The Nigerian Stock Exchange has been operating an Automated Trading System (ATS) since
April 27, 1999, with dealers trading through a network of computers connected to a server. The

51
ATS has facility for remote trading and surveillance. Consequently, many of the dealing
members trade online from their offices in Lagos and from all the thirteen branches across the
country. The Exchange is in the process of establishing more branches for online real time
trading. Trading on The Exchange starts at 9.30 a.m. every business day and closes at 2.30 p.m.

In order to encourage foreign investment into Nigeria, the government has abolished legislation
preventing the flow of foreign capital into the country. This has allowed foreign brokers to enlist
as dealers on the Nigerian Stock Exchange, and investors of any nationality are free to invest.
Nigerian companies are also allowed multiple and cross border listings on foreign markets.

The Exchange maintains an All-Share Index formulated in January 1984 (January 3, 1984 =
100). Only common stocks (ordinary shares) are included in the computation of the index. The
index is value-weighted and is computed daily. The highest value of 66,371.20 was recorded on
March 3, 2008. Also, The Exchange has introduced the NSE-30 Index, which is a sample-based
capitalization-weighted index plus four sectorial indices. Similarly, five sectorial indices have
been introduced to complement existing indices. These are NSE-Food/Beverages Index, (Later
renamed NSE – Consumer Goods Index) NSE Banking Index, NSE Insurance Index, NSE
Industrial Index and NSE Oil/Gas Index.

52
 SUDAN

KSE is a fixed place where sale and purchase of Securities and Sukuk (Islamic Bonds) are
carried out according to supply and demand mechanism; these operations are governed by
specific regulations and laws, which oversees the operations of the new issuing (Primary Market)
and the transfer of ownership of securities (Secondary Market). Primary market: It means the
market where the issuance of securities is offered for public subscription under the prevailing
laws and regulations. Secondary market: It means the market place where trading of securities
previously issued in the primary market and the transfer of ownership. Securities and transfer of
ownership are traded in the secondary market where selling the holder’s rights in the public
shareholding companies or investment funds for an investor without prejudice to the origin of
wealth and without prejudice to the rights of others who may not wish to sell their shares; and
this market is easier for the investor to enter directly to the public.
KSE works in accordance with the principles of Islamic laws where there is a legitimate
oversight body in KSE which oversees the legitimacy of the deals; and therefore the securities or
financial instruments by a dealer.

The primary market started in October 1994 with the aim of keeping watch on the newly
established companies’ issues or the established companies interested to increase their capital.
Through the year 2012 the shares issues value reached 113.35 million $, in addition to the
primary market issues for each Government Musharaka Certificates (Shahama) Government
Investment Funds (Sukuks) and Investment Funds Sukuks the total value of primary market
issues through the year 2012 was 1.08 Billion $ .

53
The activity of trading in the regular market has started by 24 public companies registered after
fulfilling the listing requirements under the resolution No (94/5) of KSE laws and regulations.
Last year (2012) Albaraka Bank, Al-Ahali Bank were listed beside 2 investment funds and a
number of government Musharaka certificates (Shahama).

The listed status in KSE remains at 59 companies and the investment funds increased to 28 funds
in addition the (Shahama) certificates which increased to 39 reflecting the growth in the market
during the year 2012.

The volume of trading recorded a significant increase from last year from (2.56) billion to (3.07)
billion Sudanese pounds, the volume of trading this year about (696.9) million$.

 Contracts Executed

The transactions of last year realized an increase in the number of the executed contracts
compared with 2011. It has increased from (7,870) to (12,689) contracts; banks (400) contracts,
insurance (9), commercial (22), industrial (13), communications and multimedia (185), financial
services (11) and others sectors took (9) contracts, investment funds (668) contracts and
government certificates (11,372) contracts.

 Shares Traded

The shares traded last year recorded a significant increase from 2011, (172,581,304) shares
compared with (106,512,121) shares traded in 2011.

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 CAPITAL TRADING MECHANISM

Countries Trading platforms Websites

Fiji South Pacific Stock Exchange[SPSE] Religareonline.com
Reserve Bank Of Fiji TradeSmartonline.in

Bahamas Bahamas International Securities Exchanges Stockerants.com

[BIXS] Bahamasinvestor.com

Luxembourg Luxembourg Stock Exchange [LuxX] SureTrader.com

ig.com

Sudan Sogotrade Forextime.com

Vinson Financial Limited

Nepal Nepal Stock Exchange [NEPSE] Easymarkets.com

Sensitive

Nigeria Nigerian Stock Exchange (NSE) Meritrade.com

UAE Abu Dhabi Securities Exchange [A.D.X.] ig.com

Dubai Financial Market [DFM] Adsprime.com

Yemen Yemen Toronto Stock Exchange Sirixtrader.com

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 Indonesia Indonesian Stock Exchange [IDX] Protrader.com
Jakarta Stock Exchange Composite Index [JCI]

Hungary Budapest stock exchange [BUX] OANDA.com

Cmcmarkets.com

SWOT Analysis

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 Learning Experience

Things which I have learned SriSattva are as follows:

 Overview of Equity, Currency, Commodities Market in India and Global.

 Industry Analysis- what to do and how.
 Comparative Analysis of different markets.
 SWOT & other ways of industry analysis.
 How to find the source for the particular topic.
 How to read annual report.
 Fundamental Analysis for the Company.
 Valuation by FCFF and FCFE.
 How to use excel in efficient way to do any financial calculation.

SriSattva gives me a great opportunity to do “Industry Research in the Global Capital Market”
which helps me to improve my skills.

Following skills I developed during my tenure with SriSattva:

o Trading.
o Financial Modeling.
o Communication.
o Analytical.

CONCLUSION

Lack of an advanced vibrant capital market can lead to underutilization of financial resources.
The developed capital market also provides access to the foreign capital for domestic industry.
Thus capital market definitely plays a constructive role in the overall development of an
economy.

 Capital market conditions of various Countries.

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 Trading mechanism of capital market.

 Market share, market size & major players in this industry.

 In depth study of Srisattva company.

Bibliography

 www.investing.com

 http://www.nasdaqomxnordic.com/shares

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 http://www.nepalstock.com/company

 reuters.com

 www.moneycontrol.com

 www.bisxbahamas.com

 www.spse.com.

 www.Easymarkets.com

 www.kse.sd

 www.Sirixtrader.com

 www.nse.com.ng

 www.msecmyanmar.com

 www.wikipedia.com

 www.emirates-capital.com

 www.luxemburgforfinace.com

 www.gbgindonesia.com

 www.investing.com/markets/hungary

 www.rbf.gov.f

 www.thebahamasinvestor.com
Annexure

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GLOBAL: Print Average Issue Readership (AIR)

GLOBAL: TV Viewing, Web Use, Mobile Use

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GLOBAL: Web/Mobile Use

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