Tamil Nadu - Tiruchi

Recent trends in capital markets discussed

TIRUCHI: Debt Market, Equity Market, Derivatives Market, Mutual Funds, Capital Market regulations, Corporate Governance, Investors Education and Grievances, and Financial Innovations were among the topics discussed during the two-day international seminar on ‘Recent trends in capital markets and financial innovations (RET CAM FIN – 2009),’ organised by the Department of Commerce and Financial Studies, Bharathidasan University, recently.

Sankaran Venkateswar from Trinity University, Texas, detailed on the scope for Mumbai to emerge as an international financial centre like New York, London and Tokyo.

Delivering a special lecture on ‘Evaluation of Mumbai as international financial centre’, Dr. Sankaran pointed out that India with a high human capital endowment had four strengths to accord Mumbai a competitive edge over Shanghai, Singapore and Dubai. Those were extensive use of English; generations of experience with entrepreneurship, speculation, trading in securities and derivatives, risk taking and accounting; strong skills in information technology and quantitative thinking, and prominent role of individuals of Indian origin in global financial firms that can act as intermediaries in the development of Mumbai as a financial centre.

Sakthi Mahenthiran from Butler University observed that firms involved in fraudulent financial reporting had significantly poor corporate governance structures whereby the audit quality was lower and outside directors seem overcommitted.

However, there is no evidence that a firm’s political connection factor or the level of board independence plays a significant role in the potential for fraudulent financial reporting.

Hamid Saremi of Department of Accounting, Islamic Azad University of Torbatjum, (Ex-Vice Chancellor, Islamic Azad University of Torbatjum), Iran, spoke on ‘Iranian stock exchange: challenges and opportunities.’ He said the financial crisis, being endemic, affected the stock exchanges throughout the world.

Earlier, inaugurating the conference, Vice-Chancellor M. Ponnavaikko called upon teachers and scholars to innovate financial instruments for developing agricultural sector, and to take the support of the Confederation of Indian Industry to develop capital market in villages.

Prof. Ponnavaikko released a souvenir consisting of abstracts of the papers received for presentation. M. Selvam, Reader and Head, Department of Commerce and Financial Studies, listed the strengths of the department, particularly on the fronts of library facility and research.

Delivering the valedictory address, Dhakshinamurthy, Assistant General Manager, Security Exchange Board of India, Chennai, said the statutory objectives of SEBI were to protect the interests of investors in securities; promote development of the securities market, and regulate the securities market. He said transformation of Indian capital market had been rapid due to large number of reforms undertaken by the SEBI in consultation with the Government.

Mr.Dhakshinamurthy explained the several changes in mutual fund operations like gold exchange traded fund, mutual fund investment in overseas market, and disclosure documents.

The SEBI, he said, was working continuously for market development and to bring in further efficiency and transparency in the securities market while protecting the interest of investors in securities.

Registrar T. Ramaswamy presided over the valedictory function.

Twenty delegates from eight countries, including the US, Canada, Bangladesh, Ethiopia, Ghana, Iran and Sri Lanka participated. There were 400 delegates from all over the country. Around 250 research papers were presented.

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