Emerging Trends in capital Market
Date: 3rd October 1999
Guest Lecturer: Mr. P. Chandra Sekhar
What Is Capital Market?
To a common person it is a place to make money. It is a place where all kinds of buying and selling transactions take place. A capital can be termed ass the resources required for any purpose. In a capital market people look for Financial Capital, as well as Physical Capital. However the new emerging trend is of Intellectual Capital.
What Is Intellectual Capital?
Now days Capital Marketing is not only buying and selling of products or services. It also involves auctioning a person’s intellectual abilities. By this we mean Selling of ideas and thought processes of individuals, to obtain profit. Its is the process of using Intellectual resources to obtain physical (financial) profits. For example www.monster.com
This form of marketing is practiced by Bill Gates and other info-tech companies world wide. It is due to these practices that today shares of info-tech sectors are overpriced.
Every Market is getting technologically aware. Mr. Charles ,who is an Internet based broker , does virtual trading of shares.
Today markets are basically of two types:-
- Primary market: In such a market Money is raised to set up ventures and put ideas into place.
- Secondary market: It is a market where trade takes place. All kinds of buying and selling transactions take place here e.g. Dalal Street.
Main Technologies trends are telecom and communication:- Internet, Media , and computers.
India has major market in these sectors in the present as well as the future.
Indians are Very protective in nature and always want to be secured. Therefore they have formed regulatory bodies like S.E.B.I (Security Exchange Body of India). These bodies protect individual interest like preventing a broker from over trading. They delegate tasks to institutions or to exchanges to regulate brokers.
However such regulatory Institutions or security institutions which are owned by the Government have a great chance on incurring losses which will finally have to be borne by the government like in the Harshad Mehta case.
CRISIL and CARE are some of the credit rating institutions. They rate the company as per their credibility which help the public to know the actual standards of the company. Further telling them whether to invest in the company or not.
Central Depository Companies (Stock Hold Cooperation’s) like I.C.I.C.I and I.D.B.I are somewhat like depositary organizations (banks) where people can deposit their shares ( DEMAT their shares) and then trade them like cash .
Today’s Major Trends is like Integration of the Mind where ideas are conceptualized and then implemented to obtain maximum output. Like Sammer Bhatia who setup the free World Wide Web e-mail service, Hotmail.com .Ideas are no ones property till they are not implemented.
Private Venture capitalist are people who are ready to take risks. They are ready to accept new Ideas and conceptualized them. There are readily back up such ideas which show prospective profits .