ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Future of Development Finance

The financial model of the typical development finance institution has become obsolete, but the need that it fulfilled, i e, getting new enterprises across the broad swathe of industrial and service sectors, has not. We need a new model to replace the old, something that will combine a reasonable degree of efficiency in managing the risks of its loan portfolio with a nurturing orientation towards small and medium enterprises, while they grow towards the market.

Indian Capital Market Reforms, 1992-96-An Assessment

An Assessment Subir Gokarn This paper uses a conceptual framework that draws on the theory of regulation on the one hand and the new political economy on the other to make an assessment of the wide-ranging reforms that have been initiated in the Indian stock market over the past four years. Based on the framework, the various reforms are classified into categories reflecting their regulatory effectiveness and/or their impact on sources of market failure. The paper arrives at a generally positive assessment of the reforms, but points out three areas of concern: the lack of a fixed term appointment for the regulators; the persistence of non-competitive conditions in the market; and the excessive entry of new scrips into the market, although in recent days, some steps have been taken to address this problem as well Introduction THE reform of the regulatory framework governing the Indian stock market began in the late 1980s with the establishment of the Securities and Exchange Board of India (SEBI), but it gained significant momentum with the consolidation of all regulatory authority with SEB! in 1992. Since then a large number of reforms have been initiated, relating to virtually every aspect of the market's functioning. Given that such sweeping reforms have been carried out, how is one to assess the effectiveness of the reform package?

Deregulation and Industrial Performance-The Indian Cement Industry

The Indian Cement Industry Subir Gokarn Rajendra Vaidya In this paper an attempt is made to evaluate the performance of the cement industry after decontrol. We find that the structure of the industry has undergone a qualitative change. The industry, after decontrol, is characterised by a competitive outcome in terms of price and profit performance. An enquiry into the nature of inter-firm heterogeneities suggests that major differences arise out of technical factors. The performance of firms across strategic groups is different, with firms operating relatively new and large plants appearing to have an advantage. The persistence of this performance differential is likely to depend on how quickly the strategies adopted by these firms is matched by the other firms.

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