The proactive measures undertaken by Reserve Bank of India (RBI) helped to develop the government securities market and added depth and liquidity. The proprietary deals constitute the largest part of the dealing in Government securities market. Commercial Banks offer constituent services to...

India's choice to control its markets was executed in two stages: one for each phase of the country's industrial strategy and philosophy towards resource allocation and market functioning. Between 1950 and 1991, the first phase was defined by a socialist ideology exhibited via a mixed economy...

In recent years, there has been renewed interest in the yield curve as a predictor of future economic activity. In this paper, we re-examine the evidence for this predictor for the Indian market. The paper tries to indicate how the yield curve spread in a government securities market may be used...

This paper examines the effect of new financial technologies by examining the role of portfolio insurance in the stock market crash of 1987, and by modeling insurance as an asset enhancement technology that it is not available to all market participants. We examine the implications for the...

The present study examines empirically the day of the week effect anomaly in the Indian equity market for the period from 1999 to 2003 using both high frequency and end of day data for the benchmark Indian equity market index Samp;P CNX NIFTY. Using robust regression with biweights and dummy...

Computing accurate volatility is an important element in market safety. Investigating the volatility pattern using high frequency data has become a popular area. Six different types of volatility have been estimated for Indian market for the period from January '99 to December '03 using high...

This paper examines the welfare implications of different libel law standards as applied to newspapers in publishing stories. Our work extends the current literature by permitting private and public incentives to deviate, giving rise to an agency problem, and by formulating a two-stage decision...

Using data with trader identities for all transactions in SENSEX-index stocks on the Bombay Stock Exchange over seven years, we identify individual day traders (IDT) to be “noise traders”, who play an important role in market microstructure models in the literature.IDT contribute 10% to...