Management vision2020

Credit Rating             Credit rating system organised in the US in 70’s. The high levels of default which occurred after the Great Depression, in the US Capital market gave the impetus for the growth of credit rating. The default of $82 million of commercial paper by Penn Central in the year 1970 and the consequent panic of investors in commercial papers resulted in massive default and liquidity crisis. This prompted the capital issuers to get their commercial paper programs rated by independent credit rating agencies. Moreover, regulatory agencies in the US made rating mandatory for institutions such as Govt. Pension Funds and Insurance companies, who could not buy securities rated below a particular grade. In addition, investors themselves became aware of the rating mechanism and started using rating extensively as a tool for risk management. Merchant bankers, underwriters and other intermediaries involved in the debt i...

Depository Services Depository             In the traditional mode of purchase and sale of securities, there is physical movement of securities, which invariably proved to be a long drawn ordered for an investor. Many problems are encountered in the market both by the individual and the institutional investors because of these physical movements like: ·          Time consuming process of transfer of shares. ·          Heavy paper work ·          Risk due to transition like loss of certificates etc. ·          Forgery, theft, mutilation etc. Depository provides an answer to these problems. Depositories provide an electronic transfer of securities. It provides scipless transfer of ownership, maintaining beneficial holdings on behalf of individual investors, prov...