Regulations of Exchange Industry in India
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Resources – Exchange Industry
Industry Resources for Express Logistics Industry List of Resources to understand the Industry in detail. These reports together give a great start to understand the…
Growth Factors of Exchange Industry in India
Factors that indicate a healthy growth in the Exchange industry are
1. Increase in number of listed companies
2. Shift from physical assets to financial assets (eg. mutual funds)
3. Increase retail participation
4. Govt approval for EPFO to invest in equity market
5. Growth of data related business
6. Development of corporate bond market
7. Development of International Exchange
Variables for success in Exchange Industry in India
Stock Exchange
•Number of listed companies, ETF/Closed ended MF (leads to rise in one time & Annual subscription fee)
•Increase in Market capitalization
•Increase in Investors/Traders, brokers, intermediators & Data vendors
•Increase in velocity (turnover/free-float)
•Network Benefit (Liquidity within exchange)
Commodity Exchange
•Increase in products introduced
•Increase in market participants
•Volatility in prices of commodity
•Increase in volume/turnover by existing and new players
Regulations in AMC Industry in India
AMC Industry in India is regulated by SEBI under SEBI(Mutual Funds) Regulations, 1996. All the rules, regulations and actions for AMCs are monitored by SEBI. To operate in the space, adequate license needs to be obtained from SEBI. SEBI operates with the purpose of safeguarding investor interests.
Regulations of Credit Rating Industry in India
In India, CRAs are regulated by the Securities Exchange Board of India SEBI. CRAs need to comply with the SEBI (Credit Rating Agencies) Regulations, 1999 (‘CRA Regulations’).
Value Chain of Exchange Industry in India
Major Activities to be performed while operating an exchange business are as follows:
1. Manage Operators, other participants & shareholders
2. Trade execution, Delivery mechanism, clearing & settlement system
3. Warehousing, receipts & logistics (for commodity exchange)
4. Legal & Regulatory Compliance
5. Information Management & Data analytics
6. IT and systems management
7. Client Relationship management
Innovations in Exchange Industry in India
Major Innovations in the Exchange industry include the followings
1. New & alternate revenue streams (hosting platform, raw transactional feeds, analytical models etc)
2. ‘Retail-like’ customer experience
3. Enhanced & automated control
4. Run by augmented workforce
5. Focus on new age products
6. Supported by next generation scalable architecture
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