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

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Indian Exchange Traded Funds

This paper seeks to model the long-run relationship between Indian exchange traded funds or ETFs and their underlying indices. The findings indicate that the relationship fails to fully explain the price dynamics of Indian ETFs. In other words, Indian ETFs serve as an imperfect hedge for investors who have exposure to respective underlying indices.

Funding Urban Infrastructure: From Government to Markets

This paper argues for a role for newer financial instruments like 'municipal-bonds' for financing urban infrastructure. The paper also argues that for these initiatives to be successful, a thick and efficient secondary market in this segment of the debt market is crucial. It will impart liquidity and create an incentive for individual agents to invest in the muni-bonds.

Demutualisation of Stock Exchanges

The basic objective of demutualisation of stock exchanges should be to do away with the involvement of brokers in the management of the exchanges and to convert the exchanges into business entities so that they are professionally managed. This basic objective can be achieved in the Indian context without getting into all the legal complications of first converting the exchanges into limited liability tax-paying entities and then separating their ownership from the trading rights of brokers. The necessary changes can be effected quickly and without any hassles by exercise of the powers that SEBI already enjoys to reconstitute the governing boards of the stock exchanges.

Stock Exchanges: Behind the Ruse of Demutualising

The finance minister has announced the government's intention to demutualise the stock exchanges. This is expected to remove the deficiencies of the present structure of the exchanges. In fact demutualisation will not address the basic issue which is to put an end to brokers' control of the management of the exchanges.

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