INDIAN FINANCIAL SYSTEM

AFTERSCHO☺OL
– DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

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 INDIAN FINANCIAL SYSTEM
Dr. T.K. Jain.
AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk
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 Financial markets – components
• Money market -
• Includes short term market – where you may
borrow for a short time period. (includes
inter-bank market, call money market, CD
(certificate of deposit), CP (commercial
paper, Treasury bill etc.)
• Capital market –
• Includes stock markets and other
markets,where you get money for long
period.

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How to improve securities market ?
• Establish international linkages (this will
make it global)
• Standardised products and services (as
markets develop, standardised products and
services develop – for example derivatives
are also available in India – these improve
the market).
• Increased participation – if investors,
hedgers, speculators increase, the depth and
width of the market improve.

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 Reforms…
• Opening of banking and insurance areas
for private sector.

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 Indian market – key features..
• Restrictions..
• Few financial institutions and players
• Lack of knowledge among investors
• Dependence on others

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 Regulatory system…
• SEBI Act 1992
• Securities Contract (regulation) Act 1956
• Depositories Act 1996 (important
depositories are CDSL and NDSL).
• Department of Economic Affairs (DEA)

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 SEBI
• The Securities and Exchange Board of
India, set up in 1988 under an
administrative arrangement, given
statutory powers with the enactment of
SEBI Act, 1992
• Capital Issue control Act and controller of
capital issue were also scrapped.

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 Regulation on advertisments by
companies..
• SEBI introduces a code of advertisement
for public issues for ensuring fair and
truthful disclosures
• There is also a format for advertisement
(as regulated by RBI) for seeking public
deposits.

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 IPO advertisements
• New reforms by SEBI in the primary
market include improved disclosure
standards, introduction of prudential
norms and simplification of issue
procedures. Companies required to
disclose all material facts and specific risk
factors associated with their projects while
making public issues.

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 Clause 49 etc.
• Listing agreements of stock exchanges
amended to require listed companies to
furnish annual statement to the stock
exchanges showing variations between
financial projections and projected utilisation
of funds in the offer document and at actuals,
to enable shareholders to make comparisons
between performance and promises.
Quartely compliance reports are also
required – all these ensure better
management by companies – corporate
governance practices.

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 Reforms……
• - easier imports - From the restricted list of
imports many items were removed. Raw
materials, components and capital goods
were freely allowed under open general
licence (OGL) subject to certain
exceptions (you can import them without
RBI permission).

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 Privatisation…
• Privatisation of Public Sector was
approved as a policy. Disinvestment of
Government shares in PSEs initiated.
Companies like Maruti, CMC, VSNL,
Hindustan Zinc etc. have been handed
over to the private sector.

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 Mutual funds…
• The Government opened up mutual fund
industry to the private sector subject to
certain guidelines and regulations. Setting up
of offshore mutual funds was also allowed
leading to substantial developments of
mutual funds. Dividends earned and capital
gains by offshore mutual funds were given
special dispensation with a flat tax rate of
10%. Money market mutual funds are also
permitted. (from just one - UTI, today we have
many mutual funds)
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 Tax reforms. …
• FDI (foreign direct investment) / FlIs (foreign
institutional investors) were permitted to
make direct investments in the listed
companies upto 24, 49 and 74, 100% of
issued capital (total holdings by all
registered FlIs in any one company, subject
to a limit of 20% for each FlI without
attracting lock-in period. Personal income tax
was reduced from 50% to 40%. The ceiling
rate of customs duty has also been reduced.

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 India going abroad to raise money
• Large Indian companies are permitted to
issue equity (for example – ADR, GDR..)
or convertible debentures or other
international finance instruments
(including External commercial borrowings
– ECB etc.) to investors abroad. The
dividend earned and capital gains on
these instruments became eligible to avail
of a flat tax rate of 10%.
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 Chellaiah committee
recommendations..
• As per the Chellaiah Committee Report,
exemption from wealth tax was accorded
to shares, securities, bonds, bank deposits
etc.

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 Scrapping of MRTPC
• Substantial expansion, setting up of new
undertakings, mergers and
amalgamations by large business houses
were allowed by abolishing monopoly-
oriented restrictions under the MRTP Act.
New act – competitions act is being
implemented, with liberal law.

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 Delicensing
• Except for a select list of low priority
industries, most of the industries were
delicensed and control procedures
through license were removed.

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 Capital markets – components
• Primary market – (includes IPOs, further
issues (rights issue), PE (private equity),
direct investment by FII, mutual funds etc.
• Secondary Market – (includes securities
markets - stock exchanges, OTC (over
the counter market ) etc.

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 ABOUT AFTERSCHO☺OL
Afterschoool conducts three year integrated PGPSE
(after class 12th along with IAS / CA / CS) and 18
month PGPSE (Post Graduate Programme in Social
Entrepreneurship) along with preparation for CS / CFP /
CFA /CMA / FRM. This course is also available online
also. It also conducts workshops on social
entrepreneurship in schools and colleges all over India –
start social entrepreneurship club in your institution
today with the help from afterschoool and help us in
developing society.

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 Why such a programme?
• To promote people to take up entrepreneurship
and help develop the society
• To enable people to take up franchising and
other such options to start a business / social
development project
• To enable people to take up social development
as their mission
• To enable people to promote spirituality and
positive thinking in the world

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 Who are our supporters?
• Afterschoolians, our past beneficiaries,
entrepreneurs and social entrepreneurs
are supporting us.
• You can also support us – not necessarily
by money – but by being promotor of our
concept and our ideas.

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 About AFTERSCHO☺OL PGPSE – the
best programme for developing great
entrepreneurs
• Most flexible, adaptive but rigorous programme
• Available in distance learning mode
• Case study focused- latest cases
• Industry oriented practical curriculum
• Designed to make you entrepreneurs – not just
an employee
• Option to take up part time job – so earn while
you learn
• The only absolutely free course on internet
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 Workshops from
AFTERSCHO☺OL
• IIF, Delhi
• CIPS, Jaipur
• ICSI Hyderabad Branch
• Gyan Vihar, Jaipur
• Apex Institute of Management, Jaipur
• Aravali Institute of Management, Jodhpur
• Xavier Institute of Management, Bhubaneshwar
• Pacific Institute, Udaipur
• Engineering College, Hyderabad

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 Flexible Specialisations:
• Spiritualising business and society
• Rural development and transformation
• HRD and Education, Social Development
• NGO and voluntary work
• Investment analysis,microfinance and inclusion
• Retail sector, BPO, KPO
• Accounting & Information system (with CA / CS /CMA)
• Hospital management and Health care
• Hospitality sector and culture and heritage
• Other sectors of high growth, high technology and social
relevance

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 Salient features:
• The only programme of its kind (in the whole world)
• No publicity and low profile course
• For those who want to achieve success in life – not just a
degree
• Flexible – you may stay for a month and continue the rest of
the education by distance mode. / you may attend weekend
classes
• Scholarships for those from poor economic background
• Latest and constantly changing curriculum – keeping pace
with the time
• Placement for those who are interested
• Admissions open throughout the year
• Latest and most advanced technologies, books and study
material

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 Components
• Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)
• Meditation, spiritualisation, and self development
• EsGotitial softwares for business
• Business plan, Research projects
• Participation in conferences / seminars
• Workshops on leadership, team building etc.
• Written submissions of research projects/articles / papers
• Interview of entrepreneurs, writing biographies of entrepreneurs
• Editing of journals / newsletters
• Consultancy / research projects
• Assignments, communication skill workshops
• Participation in conferences and seminars
• Group discussions, mock interviews, self development diaryng
• Mind Power Training & writing workshop (by Dr. T.K.Jain)

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 Pedagogy
• Case analysis,
• Articles from Harvard Business Review
• Quiz, seminars, workshops, games,
• Visits to entrepreneurs and industrial visits
• PreGotitations, Latest audio-visuals
• Group discussions and group projects
• Periodic self assessment
• Mentoring and counselling
• Study exchange programme (with institutions out of
India)
• Rural development / Social welfare projects
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 Branches
• AFTERSCHO☺OL will shortly open its
branches in important cities in India
including Delhi, Kota, Mumbai, Gurgaon
and other important cities.
Afterschooolians will be responsible for
managing and developing these branches
– and for promoting social entrepreneurs.

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 Case Studies
• We want to write case studies on social
entrepreneurs, first generation
entrepreneurs, ethical entrepreneurs.
Please help us in this process. Help us to
be in touch with entrepreneurs, so that we
may develop entrepreneurs.

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Basic values at AFTERSCHO☺OL
• Share to learn more
• Interact to develop yourself
• Fear is your worst enemy
• Make mistakes to learn
• Study & discuss in a group
• Criticism is the healthy route to mutual support
and help
• Ask fundamental questions : why, when, how &
where?
• Embrace change – and compete with yourself
only
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 www.afterschoool.tk
social entrepreneurship for better
society

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