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

V Ravi AnshumanSubscribe to V Ravi Anshuman

FII Trading Activity and Intraday Volatility

This paper investigates whether the trading activity of foreign institutional investors adversely affects (intraday) volatility in the Indian stock markets. It reports that aggregate trading activity of FIIs dampens market volatility whereas aggregate trading activity of domestic investors exacerbates volatility. Further, the paper finds that positive shocks in aggregate trading activity have a greater impact than negative shocks; this asymmetry is stronger for aggregate domestic trades. Using a proprietary data set, the paper also relates individual stock volatility to tick-by-tick transaction volume, conditional on trader type and transaction type. The intraday results show that trading among FIIs does not increase stock volatility, but when FIIs sell to domestic clients or when domestic clients trade amongst themselves, volatility increases.

A Framework for a Securities Market Database in India

This paper presents a framework for developing a reliable, transparent and flexible network to disseminate Indian financial market data and analysis to the global financial community. The analysis that this network would support is valuable to policymakers, academics and market participants in the areas of accounting, banking, economics, finance, management and public policy. The proposed database has the following features: (a) research friendly focus, (b) web enabled single window access, (c) multiple data set coverage (company, industry, security, investor and institutional data), and (d) data manipulation utilities

Liquid Secondary Markets for Corporate Debt

The extent of liquidity of financial claims (in particular, that of corporate bond markets) in an economy affects its ability to withstand systemic risk. What mechanisms are available to improve liquidity in the secondary market for corporate debt securities?

How Contemporary Are IIMs?

A unique benchmarking methodology is used to examine how the core curriculum at the Indian Institutes of Management (Ahmedabad, Bangalore, and Calcutta) compares with the business curricula of the world's best business schools. The evidence presented here indicates that the IIMs are facing difficulty in adjusting to the new paradigm that requires specialisation and close cooperation with the innovating enterprises aiming to world-class performance rather than with planners and administrators. Curriculum change in the IIMs seems to be based on feasible incremental change rather than on new knowledge, the needs of the students or the demands of an increasingly globalised and interconnected business world. With a greater focus on integration and knowledge creation along with changes in internal systems and processes, the IIMs can match the best business schools in the world.

Disinvestment of PSUs

The Securities and Exchange Board of India (SEBI) takeover regulations state that bidders acquiring control of a public limited company are mandated to make a public offer for an additional 20 per cent of the outstanding shares at a predetermined (offer) price. We show that the takeover guidelines could cause a transfer of wealth from the majority shareholders to the minority shareholders. As a result, lower proceeds (than otherwise) are raised in disinvestments involving strategic sale of PSUs with a public float. The magnitude of this problem is discussed by analysing TCS's acquisition of CMC in 2001. Further, we also present a framework that can be used to mitigate the wealth transfer. In the TCS acquisition of CMC, we show that a simple implementation of the framework could have raised the proceeds by as much as 6 per cent, and possibly more.
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