Compare and Contrast early Ford Model T and Late model Ford Crown Essay

Compare and Contrast early Ford Model T and Late model Ford Crown Victoria - Essay Example With a front-mounted, 2.9 L, 4 cylinder motor in a block producing 20 horsepower for a top speed of 45 mph (72 km/h), the Model T had many qualities which would today be considered vintage, and yet ironically also had features that would be considered state of the art amongst the vehicles in the modern day. One such feature is that it had no clutch pedal, and shifting was instead accomplished by means of floor pedals with no clutching required. The Early Ford Model T was particularly light at only about 1 200 pounds, and yet incredibly powerful with such an engine under the hood. "Simple, sturdy, and versatile, the little car would excite the public imagination." ("Forbes"). By removing the twelve bolts on the top of the car off, the entire hood pulls away, exposing all four cylinders, all four pistons and all eight valves. "The crank case is oil tight and in addition to enclosing the crank shaft, forms the lower half of the housing of the transmission, fly-wheel, magneto and flexible joint, all of which are enclosed and operated in an oil bath. This form of construction makes dripping of oil impossible as all working parts are enclosed." ("Ford"). The Model T had high and low control speeds and an emergency brake by hand levers at the left of the driver. Spark and throttle gave it all speeds from 3 to 40 miles per hour. Ford reduction gear system, two sets of brakes: a service band brake on the transmission, and internal expanding brakes in the rear hub drums, artillery wood wheels, pneumatic tires, seating for four adults, and for a price of $850, the Ford Model T was classed as - and in fact still is - "The Car of the Century". It quickly became "one of the biggest-selling automobiles of all time." ("Encarta"). There are many similarities and certainly many more differences in the comparison of The Ford Model T to an automobile such as the Late Model Ford Crown Victoria. This model, also known as the "Crown Vic", was first produced in 1955, and did not outlast the 1950s. The Crown Victoria is often referred to as the "Dodge Monaco" of the 1990s and beyond, and is a universally popular automobile. "Some 90% of police cars in the US and Canada are Crown Victorias, since Ford was the only automaker still making sedans for police after the Chevrolet Caprice was phased out after 1996." ("Wikipedia"). "The Crown Vic is heavy, almost SUV-like heavy. It depends on this bulk to run suspects off the road should the need arise." ("Modern"). The Crown Victorias are popular for their impressive safety ratings, easily accessible entry and exit, quiet interior, and optional power-adjustable pedals - over 80 000 Crown Vics are sold in a single year. This luxury sedan is powered by a 4.6-liter V8 that produces 224 horsepower. "The base Crown Victoria ($23 620) comes standard with air conditioning, ABS, power windows, power door locks, power mirrors, an eight-way power adjustable driver's seat, tilt steering wheel,

Latinos and other races Essay Example for Free

Latinos and other races Essay Researchers did a study on bicycle helmet use in a rural Georgia town. They observed children riding bicycles during specified days and times over a five month period, both before and after incentive programs like free helmet distribution and bike safety education. Another â€Å"incentive† was that kids’ bicycles would be impounded if they were found riding without a helmet. Researchers canvassed the towns on Friday afternoons and most of the day Saturday, as these were determined to be the most popular riding times. They observed the riders indirectly and noted the child’s age, gender, race, and helmet use. Data was collected for children who were between the ages of 5 and 13, which are the ages that the helmet law covered. The researchers found that these measures increased helmet use from 0% to about 45%. Sampling for this study was somewhat difficult. Because the researchers were using only observation, and they did not track any individual riders or interact with them in any way, they were unable to guarantee that the riders were actually of the targeted age. This is especially true of older kids, between the ages of 10 and 13, as these kids have extremely varying sizes and presence or absence of secondary sexual characteristics, which were two of the determining factors in determining the child’s age. Sampling the older group was also difficult because not everyone in this age group actually received a helmet, since they went to a larger school that included children from another town. The results for this age group, then, are probably skewed and possibly not very valid. The town’s racial make up, too, was heavily slanted towards black children, with 75% black and 25% white children. Due to cultural differences between black and white children, researchers may need to repeat these studies in communities where racial make up is more heavily white, and communities which include Asians, Latinos, and other races. Each culture is individual and each would likely have a different reaction to the helmet laws and police enforcement. Within this community, the researchers probably should have used only the 5 – 10 years age group, as this group could be more carefully controlled. Researchers were aware that this age group, which attended elementary school, did all receive free helmets and bicycle education. They also would possibly have an easier time observing age, as size is more indicative in younger children rather than in older children. This study was somewhat valid. The researchers admit that they were unable to track individual riders, so when they had four observers canvassing the town at once, it was possible that certain riders may have been recorded several times (a possibility that the researchers themselves are aware of, but are not concerned with). Noting, as they said, â€Å"rides† instead of â€Å"riders† also is a limitation, although the researchers felt that their method of observation led to more accurate data than self-reported data via telephone or mail surveys. It is possible that the same group of children was observed multiple times during each session, and in fact overall helmet use was lower. This, too, depends on how the researchers define â€Å"rate of helmet use,† because number of rides where a helmet is used, and the number of riders who use a helmet is a different measure. Another issue with validity is that it was impossible for researchers to track how frequently individual riders wore their helmets. It is possible that some children always wore one, and other children rarely or occasionally wore one. A better measure of helmet use would have been to track individual children and to note how frequently they wore their helmets while riding their bikes. Police enforcement is another issue in this study. Every community who adopts a program of this type may choose a different kind of enforcement, or none at all. This community allowed parent citations (which were rarely used) and bike impoundment (parents had to go and pick the bike up at the police station, where they proved helmet ownership or were offered a free helmet, and they were also re-educated on bike safety). Other communities may rely more heavily on citations, or they may choose fines. Fines were not a good option for this community, as it was a rural community where a large minority lived below the poverty line. Another issue is that the police may be perceived differently in different areas. As the researchers noted, even the knowledge of police presence and enforcement was enough for many children to wear their helmets. This suggests a respect for the police force, which is common in rural areas. In other areas, especially urban, police may not be regarded so highly, and enforcement may become a larger problem. In an urban area, the sheer number of children would also possibly be prohibitive. This study was fairly reliable. Researchers followed up on the helmet use unofficially after 2 years and came up with similar results, which indicates both that helmet use was continuing and that the study was able to achieve the same results. Other studies, if they used the same observation methods, would probably also achieve similar results. This study is repeatable as written, despite its flaws. A better way to do this study would be to gather two groups of children: experimental and control. Both groups would be surveyed and observed for their helmet use at the beginning of the study, and these numbers would be compared. Then, the experimental group would be given the bicycle safety education and be offered free helmets. The second group would be told they should wear helmets but not offered extensive bicycle education or given free helmets. The researchers would then track individual riders through observation on at least a weekly basis to see how many in each group wore their helmets on a frequent basis. This would allow researchers to track â€Å"riders† instead of simply rides, and to make sure that each child was only counted once in their statistics. It would also show the effect of bicycle education and offering free helmets on helmet use. It is likely in this particular study that children only began to wear their helmets because they were offered free helmets. If they had been asked to go and buy helmets, cost would likely have been prohibitive in a rural, low socio-economic area. Therefore, providing the helmets was a key point in the plan. It may be interesting to do a study where children are provided with bicycle education and a list of resources on where to purchase helmets, but not actually provided with them. This study would best be done in a suburban area where the socio-economic status was higher, and would show the effect of bicycle education and possibly police enforcement on helmet use. Since further studies are possible and needed, and since the researchers themselves are aware of the study’s limitations, it would be prudent not to extend these results to all communities and situations. The study is ideal for the researchers’ purposes but has a highly limited scope. Overall, this research is very interesting. Regardless of the study’s limitations, introducing bike safety and helmets into the community resulted in statistically significant increases in helmet use, which purportedly resulted in fewer bike-related injuries and deaths. This is a step in the right direction, and although more research and more community programs are needed to both increase helmet use and decrease injuries, this study shows that programs are effective and change is possible.

Visual Information Essay -- Anatomy, The Retina

Visual information is seen because light passes through the cornea and is focused by the lens as an inverted image on the retina (Ellis, 2004). The retina is composed of photoreceptor cells; rods and cones with the greatest density of cones situated within the fovea, thus vision is sharpest for images and information projected to the fovea (Ellis, 2004). Subsequently visual information of lateralized foveal stimuli projects to the cerebral hemisphere within the brain. In the brain, the left visual hemifield projects to the right hemisphere and the right visual hemifield projects to the left hemisphere (Lavidor, Ellis, Shillcock & Bland, 2001). Generally for most individuals (in particular right handed), visual recognition of words and information is more efficient for display within the right visual field. However it is debated whether foveal information lateralized within the left or right visual field is double-projected to both hemispheres or unilaterally projected to the contrala teral hemisphere because the fovea is anatomically split and there is differential contribution of the two hemiretinae. Two theories have been put forward regarding how visual information is projected to the hemispheres. According to the split fovea theory, hemispheric division in processes occurs right up to the point of fixation. When the eyes are fixated within a written word visual information about the letters falling to the left of fixation initially projects to the right cerebral hemisphere, whilst visual information about the letters falling to the right of fixation project to the left cerebral hemisphere. Foveal processing is split so precisely at the vertical midline that all letters at either side of fixation project (unilaterally) to th... ...occurring in foveal vision away from the midline however this is not visible or obvious when recognition of visual information occurs. There is an overlap at the centre of the fovea where information projects simultaneously to both hemispheres, this being consistent with the bilateral theory. On the other hand, split fovea theory is an interesting theory of fixation effects that has been inspired by previous research unconnected with split fovea theory and thus incapable of providing appropriate evidence. More recently, split fovea theory has been based on experiments conducted specifically in its support but in which fixation locations were not monitored and stimuli exceeded foveal vision. It is good to see that research in the area is beginning to improve but it is difficult to be enthusiastic about any theory when there is no compelling evidence to support it.

To what extent does Soyinka present Jeroboam and his gullible congregation firstly as victims of social forces

To what extent does Soyinka present Jeroboam and his gullible congregation firstly as victims of social forces and secondly, as victims of their own greed and opportunism in The Trials of Brother Jero? â€Å"Human life cannot be represented in a fully or truthful manner without taking account of the pressures brought to bear upon the individual by his milieu, by the particularity of social situation and historical circumstance† John Cruickshank (1969) I have chosen the quote above as a starting point for my essay because I believe that Africa as a continent has seen such extremes of political and social upheaval that to overlook the importance of history, and its affects down the evolutionary scale on the people of Africa, in African literature and particularly in Soyinka's The Trials of Brother Jero would be very wrong. But how far can you make allowances for greed, selfishness and opportunism (which almost every character in the play attributes to) under the assumption that they are just products of the greed, selfishness and opportunism inflicted on the people when colonisation reared its ugly head? by the same token I feel that it is easy for an audience or reader of a play to put characters good or bad points purely down to their ‘character'. When a play write presents you with characters that are so easy to interpret then you have to ask yourself, why? Jero is a prophet, â€Å"by birth and inclination† and this is indeed the first thing we learn about him. The way Soyinka presents him to us is initially set out in the stage directions where Jero is described as â€Å"suave†. Jero's opening line â€Å"I am a prophet†, I feel, encourages the audience to think that maybe a real prophet would be more modest. Jero's direct speech to the audience employs a traditional African style of address that forces an audience to actively analyse Jero's speeches. That said Soyinka does not make it difficult for us to see that Jero is far from being a religious man as he informs us of his betrayal of his previous master for his own personal gain. So why would Soyinka use such a style of address if he did not want to us to analyse something more in the apparent openness of his characters speech? I feel that Soyinka has used this literary tool in order to encourage an audience not to see the truth in the characters (as this is very easy to see) but to think about why they have come to be the way they are. G. N. Ofor (1991) in his essay entitled The Urban Novel: A Historical Experience tells us about social realities of the time prior to colonisation: â€Å"African villagers were noted for their homogeneity and were guided by traditional beliefs and values. Members of the community were very closely bound together and the primacy of the community over the individual was emphasised† I think it is very important that G. N. Ofor chooses to specify that this state was what Africa was like before colonisation as this suggests that things have changed because of colonisation. Certainly in The Trials of Brother Jero the people are guided by traditional beliefs with the characters attending church regularly and Jero being something of an advisor (certainly to Chume anyway) but Jero himself is not guided by the hope of enlightenment or saviour after death, nor is he compelled to help people for the sake of being a kind and generous person. Everything he does, in some way, contributes to his own personal gain, gain of money or respect or personal favours. In the quotation below which is an excerpt from the play Jero finds out that Chume's wife is in fact also his creditor who he has been trying to avoid, and so allows him finally to beat her despite forbidding him not to up until this point. Jero says â€Å"he wants to beat his wife, but I won't let him. If I do, he will become contented, and then that's another of my flock gone for ever. Jero: Ah. That is the only way. But er†¦ I wonder really what the will of god would be in this matter. After all, Christ himself was not averse to using the whip when occasion demanded it. Chume (eagerly. ): No. He did not hesitate. Jero: In that case, since, brother Chume, your wife seems such a wicked, wilful sinner, I think†¦ Chume: Yes, Holy One†¦? Jero: You must take her home tonight†¦ Chume: Yes†¦ Jero: And beat her. You could easily conclude from this that Jero is presented as a victim of his own opportunism or that Jero is an opportunist, I suppose that to consider a character as a victim of anything suggests that we cannot or do not blame them for it; that, from a humanitarian point of view we can empathise with Jero's course of action. But Soyinka does not present to us any signal that Jero has suffered any sort of moral dilemma as he recurrently exploits his congregation. So we need to consider the social forces that might shape the attitudes of the characters in The Trials of Brother Jero The ideological view points detailed in the quotation by G. N. Ofer. Do not apply to the character Jero so Maybe Soyinka chooses not to present Jero in this idyllic image as a remark against such opinions saying that he does not agree that Colonisation is a reason that people in Africa have become more of a capitalist nation like in European society and is making the point that the image of Africans as a tight knit, un-selfish communism never completely existed. In the same essay I quoted from earlier and on the subject of the effects of colonisation, G. N. Ofer goes on to say that: Factors like taxation, a common portable currency, the desire for European goods, the need and the opportunity to make profits contributed immensely to the historic shift from a subsistence economy to a monetary economy. This loosened the co-operative ties binding the individual to his clan and lineage members. † If you read the above quote with reference to Soyinka's character Jero you could certainly see how, perhaps, Soyinka's character Jeroboam is presented as a victim of this new found ethic, catalysed by the influence of Africa's capitalist colonisers. In fact in Soyinka's own words, from an essay entitled from a common backcloth: A reassessment of the African literary Image he writes of â€Å"the European observer† that: â€Å"He still fights a rearguard today. It has grown subtler. Accommodation is his new weapon, not dictation† Soyinka (1988) Accommodation of the African continent or of the minds of the African masses perchance? Chume is another of Soyinka's main characters in the play, an un-educated, naive, gullible, hen-pecked man who relies completely on the ‘help' he gets from Jero. Looking at the play it is easy perceive that Soyinka has presented Chume as a victim. In the excerpt I have quoted below we can see how Chume goes to see brother Jero, desperate to find help for the mental torture he suffers by his nagging wife, Amope; Chume: My life is hell†¦ Jero: Forgive him, father, forgive him. Chume: This woman will kill me†¦ Jero: Forgive him, father, forgive him. Chume: Only this morning I†¦ Jero: Forgive him, father, forgive him. Chume: All the way on my bicycle†¦ Jero: Forgive†¦ Chume: And not a word of thanks†¦ Jero: Out Ashtoreth. Out Baal†¦ Chume: All she gave me was abuse, abuse, abuse†¦ All Chume wants is for Jero to allow him to beat her, just once, but Jero keeps him hanging on saying it is not the will of god. All Chume wants out of life is to have a peaceful relationship with his wife and to gain a better job. Chume is actually under a great deal of pressure to conform to the expectations of his wife and his peer. Amope says â€Å"A chief messenger in the local Government Office – do you call that work? Your old schools friends are now ministers, riding in long cars†¦ † while Jero mocks Chume for his â€Å"animal jabber† he goes on to say that he is â€Å"too crude, but then that is to my advantage. It means he would never set himself up as my equal. † you could argue that any characters desire for monetary gain or a materialistic attitude to life could be seen as a direct effect of the colonisation of Africa. As I have shown in earlier quotations and as I have read so far, it would seem that many of the people who write about the state of the African infrastructure have the opinion that colonisation has been a destructive factor because it imposed the materialistic, dog eat dog attitude of Europe. Many writers believe that the effect of Europe has caused a lack of solidarity between the African masses. It would seem, also that there have been many literary works which satirise this idea, Claude Wauthier (1978) in The literature and thought of modern Africa writes; The tone is just as sarcastic about Europe in the long free-verse poem by the Ugandan Okot p'Bitek, song of Lawino, the bitter-sweet lament of a black woman who is reproached by her husband for being illiterate and not knowing European social manners: My husband pours scorn On black people He behaves like a hen That eats its own eggs. Bearing this in mind it seems as though Soyinka has presented Chume as a victim of the social forces imposed by those around him. He fits perfectly into Eustace Palmer's view (quoted by G. N. Ofor in The essay The urban novel: a Historical Experience) of; â€Å"The rural innocent†¦ who is ignorant of the qualities needed to survive in the hot-house that is the city and who is quite often inadequately equipped, as far as education is concerned, to qualify for the lucrative jobs the city offers. † Palmer (1979) It is interesting to include that G. N. Ofor remarks on the above quote with: â€Å"However it is pertinent to note that without the creation of towns/cities by the colonial administration, there would have been no urban novel. † As for Chume's own greed and opportunism, I think it would be difficult for anyone to argue that a person could be said to be greedy for wanting to live harmoniously with their wife/husband or to want equality. All we know of the rest of brother Jero's congregation is the few people he mentions that he has convinced will become prime ministers of certain states, there is a woman who badly wants children and Jero tell us that the most popular of his prophesies is to tell people they will live until they are 80. As Jero says â€Å"if it doesn't come true, that man doesn't find out until he's on the other side. The last character we meet in the play is ‘member', who aptly becomes a member of Brother Jero's congregation by the end of the play. Jero, at first, attempts to speak to him by pretending he has prophesised the meeting between them. Shockingly the member turns away saying â€Å"Go and practise your fraudulences on another person of greater gullibility† and so for a second it seems as though there may be at least one character that will not fall for the charms of Brother Jeroboam – this is not the case. All it takes is for Jero to say what he wants to hear and he is hooked. Jero tempts him by saying â€Å"And at a desk, in a large gilt room, great men of the land awaited your decision. Emissaries of foreign nations hung on your word. And on the door leading into your office I read the words, minister for war†¦ † Asking god or brother Jero to help people become ministers or heads of state or merely to have a better job or more money seems to go against the true usages of religion, Which I had understood to be performing the will of God (of whichever denomination) and keeping unity between all the people within the culture. It seems to me that Soyinka may be trying to show that while every member of Jero's congregation is manipulated by him they themselves are not completely innocent in their reasons for their faith. Mineke Schipper (1982) in Oral Literature and Total Theatre says; â€Å"In traditional society the religious system determines the cultural unity of the people. Life forces bind man to his past, his present and his future and determine his relationships with gods, spirits, nature and natural phenomena. The unity tends to break down where western influence increases. † It is interesting that the subject of western influence is again considered to be the destructive factor in the lack of unity between the African people. The quotation above suggests that western influences have even meant a breaking down of the unity that religion brings. After having looked at The Trials of Brother Jero, and having discussed the idea of victimisation I can only conclude that human beings, from whatever culture or walk of life, all desire the same basic things – money and material possessions, respect, power and equality (though not necessarily in that order). The idea that has cropped up so often in my essay, that the social forces which work upon the individual and the nation as a whole are a direct effect of colonisation, is probably the most interesting point of all. You can indeed find reasoning within the text to assume that Soyinka may have intended for this theme to become apparent, whether or not you regard any of the characters as victims or even if you regard them as victims and perpetrators together at the same time. Below I have included a quotation from S. E. Ogude in his essay African Literature and the Burden of History: Some Reflections in which he talks about another African playwright, Chinua Achebe (1975) Saying: â€Å"He also reveals the weaknesses of the traditional society and the ease with which European capitalism and religion supported by gun powder and cannon balls successfully challenged the dominance of traditional culture. † If this is indeed true then it is a terrible, terrible shame.

Financial groups Essay

Today, Barclays is one of the most powerful financial groups in the world. But its origins can be traced back to a much more modest business, founded more than 300 years ago in premises close to the Group’s global headquarters in the heart of London’s financial district. In the late 17th century, the streets of the City of London were filled with goldsmith-bankers, who provided monarchs and merchants with the money they needed to fund their ventures around the world. One such business was founded by John Freame and his partner Thomas Gould in Lombard Street, London, in 1690. The name Barclay became associated with the company in 1736, when James Barclay – who had married John Freame’s daughter – became a partner. Private banking was common in the 18th century, bankers would keep their clients’ gold deposits secure and lend to credit-worthy merchants. By the 1890s there were some 100 private banks. In 1896, 20 of these companies came together to form a new joint-stock bank. The leading partners of the new bank, which was named Barclay and Company, were already connected by a web of family and business relationships. The new bank had 182 branches, mainly in the East and South East, and deposits of i 26 million – a substantial sum of money in those days. It expanded its branch network rapidly by taking over other banks, including Bolithos in Cornwall and the South West in 1905 and United Counties Bank in the Midlands in 1916. In 1918 the company – now Barclays Bank Limited – amalgamated with the London, Provincial and South Western Bank to become one of the UK’s ‘big five’ banks. By 1926 the bank had 1,837 outlets in its own name. The development of today’s global business began in 1925, with the merger of three banks in which Barclays held shares, the Colonial Bank, the Anglo Egyptian Bank and the National Bank of South Africa. The new Barclays Bank had businesses in much of Africa, the Middle East and the West Indies. Its name changed to Barclays Bank DCO in 1954, in response to changed economic and political conditions. It became Barclays policy to decentralise, away form London setting up locally-established banks, and 1985 called Barclays Bank. Today’s Barclays has tremendous global strength and a reputation for being first with innovative products and services. As of 30 June 2000, staff worldwide consisted of 70,300, of which 52,300 were in the UK. Today, Barclays has five business groupings that are managed as international businesses, reflecting changing customer needs and the developments taking place in global financial services. Barclays Barclays makes a direct and significant contribution to the well-being of the UK economy. The banking sector accounts for approximately 4. 2 per cent of the UK’s national output. In 1998, the financial industry contributed i 4. 6 billion to government revenues in mainstream corporation tax. Barclays alone paid a total of i 533 million in taxes in 1998. Around 30 million transactions are processed every day through UK clearing systems. The number of ways it is possible to access financial services is dramatically increasing for the benefit of customers. Telephone banking, increased accessibility to cash machines, means that millions of customers can use banking services 24 hours a day. Demand for these services is rising as an alternative to branch-based banking and, as a consequence of this the number of traditional branched will continue to decline. Due to the closure of branches there has been a decline in the number of jobs across the banking sector. Reasons for Change and Actions Taken The main reason for the change is the changing needs of the consumers. More people are working know, leading busier lives with longer days and travelling more and needing instant access to money without having to queue and wait. Customer tastes are becoming increasingly diverse, whilst some people want the immediacy of 24 hour electronic access to their money whilst others still prefer personal, face to face service from cashiers. Having seen that people want more instant access to their money Barclays have set up over 25,000 ATM’s, expanded their telephone banking service and offer the worlds leading internet banking service. They boast statistic of: â€Å"One million customers have signed up for our telephone banking service. Our call centres receive 25 calls every minute. † â€Å"The number of cash machined available to customers had more than trebled in the past five years. † â€Å"Barclays online banking has attracted more than 450,000 customers since it was launched in1996† Barclays has to keep its services in the public interest as they face serious competition from multinational banking corporation, supermarkets offering cash back, and even car manufactures can offer banking services. In the last six years the total number of credit card issuers has more than doubled. The recent advances in technology, particularly digital information, mean that many of the new competitors in the financial market do not need to maintain a nationwide chain of branches. It is possible, and much cheaper, to provide financial services over the telephone, PC or internet. Due to the increase of competition it has been important for Barclays to aim to lead the way for banking in the future, and also for them to be careful that they handle their customers needs and expectations. One of the biggest challenges for all financial services providers is to develop a new generation of more sophisticated, flexible products and services. Customers want and require straight forward easy access to their cash, whether it be through a cash machine, over that phone or the cash desk. At Barclays it is possible for customers to chose what kind of accounts they want, for example all in one accounts, such as those offered by Virgin One and Mortgage Trust or they can opt for savings accounts from building societies and insurance companies. Traditional banking providers are offering more advanced current accounts. The number of customers choosing Barclays more advanced current account is increasing. Services such as internet banking unheard of ten years ago, are now offered as standard by most banks. Barclays has a long history of innovation. They were the first bank in the world to install the cash dispenser, this was located at their Enfield branch in 1967 having previously launched the first credit card in Europe in 1966. In the 1980’s they introduced the UK’s first debit card. In October 1998, Barclays became the first bank to introduce instant banking, and to allow the credit card to offer customer access to their current account and credit card details over the phone. Barclays realises that to keep up with competition that they will have to continue their long history of investment in production and service innovation, increase the use of the technology available to them, ie the internet, e-commerce and telebanking. They also propose to provide business customers with full euro capabilities and offering their personal banking customers an even broader range of flexible savings, mortgage and loan plans. Barclays has spent over i 10 million on customer research programmes in 1999 to ensure that they have an in depth understanding of the needs of their customers and their expectations. In total they surveyed more than 1. 7 million personal customers during 1999. They found that customers were generally satisfied with their financial service provider. Customers said that they regarded Barclays as solid, safe and reliable in terms of the funds and business they entrusted in them. However it was noticed that customers wanted an improvement in the one to one service and for individual circumstances to be well received. Having heard this Barclays responded by launching a series of initiatives, many of these involved better use of customer data allowing them to anticipate customers needs and allowing them to pre-approve loans, overdrafts and mortgage arrangements. Barclays aims to make a contribution to the community, in September 1999 they announced proposals to contribute i 100 million to a new regional Venture Capital Fund, offering loans to growing businesses that are unable to gain conventional bank funding, this was part of Barclays aim to promote economic regeneration. Barclays has also developed three national sponsorship programmes, these include, Barclays New Futures, this is the largest educational sponsorship scheme worth i 8 million over eight years, run in conjunction with Community Service Volunteers. Barclays Sitesavers, this is the largest environmental regeneration sponsorship worth i 3 million over six years, this is a partnership scheme with Groundwork, they are aiming to turn derelict land into in to parks, gardens, play areas and sports grounds. Barclays Stage Partner aims to allow people who otherwise could not afford to go to the theatre, it will cost Barclays a total of i 4. 5 million over six years. However for Barclays to keep up with competition in the millennium it was necessary for them to widen their market and a merger with the Woolwich was proposed. Both the chief executive of Woolwich and Barclays realised that they had a shared philosophy, strategy and vision, as well as their views on the future of banking being similar. A deal between Woolwich and Barclays would double Barclays’ share of both the mortgage and savings market, provide access to the country’s second largest team of independent financial advisers and give it Open Plan, Woolwich’s all-in-one bank account, which was adding a further 8,000 customers a week. However, due to the merger taking place over 100 Woolwich branches were located within 100 metres of a Barclays, as these were now unnecessary these 100 Woolwich branches were closed, leaving the group with a combined total of 2,000 branches. Barclays said that the Woolwich name would be kept and would become the mortgage brand for Barclays products. The newly merged group now had more than 16 million customers, with both sets being able to attain the advantages from both Barclays and Woolwich. However Barclays continued closing banks, closing a further 171 branches across Britain. It was argued that to keep up with their plan and to advance in this world with new improved technology it was no longer necessary to have so many branches. If the bank was not to realise this and change its methods of banking it would go out of business. However as Britain’s second biggest bank it was still difficult for them to justify the closing of so many branches with little pre warning leaving 7,500 people with no job and over 40,000 customers, most from rural communities without there local banking service. Barclays said that even after the closure of the rural branches people living in those areas would still have a local branch within three miles. This however was not true as now many customers face round trips of twenty miles to alternative branches and fears have been raised for the safety of people carrying cash to be cashed into their accounts. In one case a 79 year old woman staged a sit in at their local Barclays Bank to protest against plans to close it. The locals were said to be ‘devastated and worried to be losing their local bank and the effect it would have on businesses. ‘ Protest groups across the country are planning sit ins and other forms of disruption to try to deter Barclays from closing their local branches. Barclays quickly picked up on the negative atmosphere towards them in the areas they had closed the branches and announced that they had agreed a deal allowing customers to pay cash and cheques and withdraw cash from their local post office. The bank arranged this in 155 of the 171 areas were they had closed the banks. Barclays said that they hoped that the deal with the post offices would help to keep them open in areas they were they too were under threat. However locals complained that the new service was no substitute for full time banking facilities. It is not just Barclays facing these problems, most banks have been closing their local branches and been changing to more modern methods of financial services and issuing money. With more people working, with less time to go to the banks it is necessary for them to be able to withdraw cash at any time of day of night. In the past, when less woman worked it was possible for the woman to go to the bank and to cash in cheques and withdraw money, however now, often with both members of the family working it leaves little time to get to the bank, thus the need for instant services, ie. Telephone, Internet banking and twenty- four hour cash dispensers. Though many jobs have been lost through the closure of all the branches a vast number of jobs have been opened up through telephone banking, with Barclays alone boasting more than twenty- five calls minute. It is often the people who are scared of change who resist to it, though it may inconvenience them at first, in the long run it will benefit them allowing them easier access to their money.

Ionic vs Covalent Bonds - Understand the Difference

Ionic vs Covalent Bonds - Understand the Difference A molecule or compound is made when two or more atoms form a  chemical bond, linking them together. The two types of bonds are ionic bonds and covalent bonds. The distinction between them has to do with how equally the atoms participating in the bond share their electrons. Ionic Bonds In an ionic bond, one atom essentially donates an electron to stabilize the other atom. In other words, the electron spends most of its time close to the bonded atom.  Atoms that participate in an ionic bond have different electronegativity values from each other. A polar bond is formed by the attraction between oppositely-charged ions.  For example, sodium and chloride form an ionic bond, to make NaCl, or table salt. You can predict an ionic bond will form when two atoms have different electronegativity values and detect an ionic compound by its properties, including a tendency to dissociate into ions in water. Covalent Bonds In a covalent bond, the atoms are bound by shared electrons. In a true covalent bond, the electronegativity values are the same (e.g., H2, O3), although in practice the electronegativity values just need to be close. If the electron is shared equally between the atoms forming a covalent bond, then the bond is said to be nonpolar. Usually, an electron is more attracted to one atom than to another, forming a polar covalent bond. For example, the atoms in water, H2O, are held together by polar covalent bonds. You can predict a covalent bond will form between two nonmetallic atoms. Also, covalent compounds may dissolve in water, but dont dissociate into ions. Ionic vs Covalent Bonds Summary Heres a quick summary of the differences between ionic and covalent bonds, their properties, and how to recognize them: Ionic Bonds Covalent Bonds Description Bond between metal and nonmetal. The nonmetal attracts the electron, so it's like the metal donates its electron to it. Bond between two nonmetals with similar electronegativities. Atoms share electrons in their outer orbitals. Polarity High Low Shape No definite shape Definite shape Melting Point High Low Boiling Point High Low State at Room Temperature Solid Liquid or Gas Examples Sodium chloride (NaCl), Sulfuric Acid (H2SO4 ) Methane (CH4), Hydrochloric acid (HCl) Chemical Species Metal and nometal (remember hydrogen can act either way) Two nonmetals Do you understand? Test your comprehension with this quiz. Key Points The two main types of chemical bonds are ionic and covalent bonds.An ionic bond essentially donates an electron to the other atom participating in the bond, while electrons in a covalent bond are shared equally between the atoms.The only pure covalent bonds occur between identical atoms. Usually, there is some polarity (polar covalent bond) in which the electrons are shared, but spend more time with one atom than the other.Ionic bonds form between a metal and a nonmetal. Covalent bonds form between two nonmetals.

A World Apart essays

A World Apart essays A world Apart is a film by Chris Menges ( 1988 ). The actress ( Diana Roth in the film ) won the price for best actress. The story takes place in 1963 in the residential suburbs of Johanesburg while apartheid was practiced. The apartheid consists in separating whites from blacks in public areas like schools, bus ... The main characters are Diana and her daughter Molly. Diana is a journalist and she is a white militant for the blacks cause, shes active in the ANC ( Africa National Congress ). Diana gets arrested when the police broke in their house without a search warrant while there was a party. The authorities legally used the 90 Days Detention Act under which you can keep a person in jail for up to 90 days without bringing charges against him. She is released and arrested again a few minutes later in the street. The second detention pressured a lot Diana who tried to commit suicide in jail after she wrote a letter in the first page of the bible to her husband Gus. She has been saved and released with the condition to have 24 hours surveillance of the house. Meanwhile, Molly stopped going to school for a while and had some trouble with schoolmates. She is brought by the mate ( Elsy ) to the black townships and then to the church were Solomon ( Elsys brother ) is arrested. When Diana is back home, the police enters the house for a check up. Diana and Molly made them leave after Diana understood that Molly checked over the secret place where she stored the bible and r ead the letter. Molly and her mother had an argument about the fact that Diana wanted to leave her family by committing suicide and that takes care of the black cause more than to her family. After all this, it is announced that Solomon died in detention. A demonstration takes place after his funerals, molly is up there with her mom. The police comes and begins shooting on the people. I think that its a very good movie. It shows u ...

How to structure a winning executive summary for your bid

How to structure a winning executive summary for your bid How to write a winning executive summary for your bid The executive summary of your bid, tender or proposal is the most important part of the entire document. And how you structure your executive summary is key to how well it works. However well-written the rest of your bid or sales proposal is, many people will only have the time (or motivation) to read the executive summary. More than this, these readers will often be key decision-makers. This could be a problem, as often this crucial section ends up being something of an afterthought: a few paragraphs or pages that get dashed off when the author is already exhausted from writing the real proposal. And doing that could be a costly mistake. So how do you summarise a carefully argued document – which can sometimes run to dozens of pages – into a one or two page executive summary? The secret is to keep one idea in mind: Your executive summary is a journey. Your executive summary is like a miniature version of your entire bid or proposal. Like your bid or proposal, its a way of guiding your client from where they are now to where they need to be – and making it clear why they need your help in getting there. This article will walk you through each stage of this journey, so that by the end youll know how to write executive summaries that give your bid the best possible chance of winning. Situation First things first: you need to start your summary somewhere safe and non-controversial. Begin with where your prospect is now, giving a summary of their present situation. Dont be contentious – its important to begin from a place of consensus between you and your prospect. Why things must change After outlining your clients position, you need to make it clear you understand why things need to change. Ask yourself: Why did your client put this out to bid or tender in the first place? An organisation issues an ITT or RFP because they have a particular set of problems to address or important needs to be met. Now is your chance to convincingly show you really understand them and can sum them up clearly. Research is key to really nailing this part of the summary. Dont skip it. Theres no way to effectively understand how your client sees their problems without going out and learning more about them. Learn everything you can about the prospects problems as they understand them. You want to be writing about the problem in their terms, using their language, so you can show you understand the problem exactly as they do. If you or one of your colleagues knows the client (such as someone else in sales or account management), talk to them to learn more. If you have any emails where the client has talked about their problems and challenges, read them. And if you have an opportunity to talk to the client yourself, take it. What your proposed solution is Next comes your proposal. This will outline how your solution can solve the problems your prospect faces. The most important ideas to include here are win themes – the areas that youve identified as being the most important things to communicate to your client. Should you emphasise that you are the most experienced provider? The cheapest? The most secure? Do you offer an approach to the solution that will particularly resonate with your client? Use what you think they regard as most important to guide you on this: dont assume or just stress what youre proud of. When youre highlighting win themes, make sure to back them up with something concrete. To take our example proposal (below), we dont just say we take a systematic approach. Instead, we talk about how we take a systematic approach, giving specific information about our writing analysis. Reassurance Its only after youve shown a clear understanding of your prospects situation that you should offer some information about your company. You want to make it clear that youre a capable organisation who can handle the problem (and that your client isnt going to regret choosing you!). Talking about your own company earlier than this point sends the message that youd sooner talk about yourself than explain your solution to your prospect. Indeed, its a very common mistake to talk too much about your own company and not much about your client. To avoid it, try this rule of thumb: if youve mentioned your own company more than youve mentioned your client, you need to go back and check if youre really making your bid or proposal about your clients needs (and not about how great your organisation is). What it looks like in practice: example executive summary You can download an example of an executive summary and see this structure in practice here. And if youd like to see it in action on your own bids or proposals, check out our Bid, tender and sales-proposal writing course for individuals and for teams. Style But how can you condense dozens of pages into one or two? First, youll need to ensure your written style is clear and concise. Have a look at our articles on keeping it short and simple and using the active voice for more. You can also cut down on space by using bullet points, or if you have a particularly compelling graphic, you can use that too. Getting it right The executive summary is the part of your bid or proposal that most readers will read – and it could be the only part that key decision-makers look at. It can take time to distil everything down into a few pages. But get it right and youll take your reader on a simple, persuasive journey through your arguments – a journey which has the best possible chance of ending in your bid getting the thumbs up. Image credit: Michal Bednarek / Shutterstock hbspt.cta.load(2645537, '11b393b8-dbd1-433f-bb2a-6f80c47a0f2c', {});

Analyse the performance of the components (C, I, G & NX) of Australias Essay

Analyse the performance of the components (C, I, G & NX) of Australias GDP since 2005 - Essay Example In the following table the estimates of different components are represented quarter-wise. The data covers the time period from the first quarter of 2005 and the final quarter of 2008. Here the five components are given. The components are: private consumption expenditure, gross private investment, inventory investment and the net export (obtained by subtracting the import from the export of the corresponding year). Private investment is obtained by summing up dwelling investment, buildings and structures investment, equipment investment and other investments. The inventory investment is obtained by summing up private non-firm inventories and other inventories. In the above figure we can show the rate of consumption growth over different quarters from 2005 March to 2008 December. The growth reached highest in December 2006 and in June 2008 the growth rate in consumption became negative. That implies a decline in consumption. That is perhaps due to the recession due to the global credit crisis. Further the consumption growth revived in the next quarter and then again it showed a decline in the last quarter of 2008. In the above diagram the trend of the growth of private investment is shown quarter-wise from the first quarter of 2005 to last quarter of 2008. It is found that the private investment became negative in March 2006 and the growth rate became lower than -1% in September 2006. In the next two quarters there had been a sharp rise in the private investment and again it started to decline sharply till December 2007. In the first two quarters there was a rise in growth rate of private investment and again it declined in the last two quarters of the year 2008 i.e. that is the period of global recession. The above table shows that since the first quarter of the year 2007 Australia has been facing balance of trade crisis. The situation has improved little in the last quarter of the year 2008. That was due to the global

U04d1 Critique Case Essay Example | Topics and Well Written Essays - 500 words

U04d1 Critique Case - Essay Example rtant that the boards focus on testing and challenging the various strategic options before choosing the options and stepping in blindly into the options. The reason being, the architecture of the organizations are unique in their own ways and it is essential to note that the strategy that might work on one organization may not work as effectively on other firms as well. The firms need to work towards building a successful rapport between the employees and management as well as the suppliers and management as well. Also the customers and the network of the firm need to also be constantly engaged in the firm and the related activities as well (Velasquez, 2006). As explained well by Prahlad, it is clear that the strategic architecture’s blue print needs to be discussed with complete focus on the functionalities and the inclusion of newer competencies and the improvements of the interface with the customers. Together all the aspects of the business can build up and become a success. Another important explanation by Prahlad also explains, â€Å"A core competence is a bundle of skills and technologies that enables a company to provide a particular benefit to customers† (Hamel & Prahalad, 1996). The core competencies are a gateway to the successful future and the continuous improvements of the investments and also the company growth. Hence it is very important to consider these and to work towards improving these aspects of the business as well (Mill, 1995). Also a few other questions that need to ba answered and to be considered for the case include the following. What is the foresight for the development of various external factors for the company? The main justification for this question is to realize that a successful business is one which concentrates not only on the sales and revenues but equally on the various factors that enclave it. What is the importance that is given to the governing boards on the issues of the ethical boundaries? It is important to

Developing yourself and others Coursework Example | Topics and Well Written Essays - 1000 words

Developing yourself and others - Coursework Example I always wanted to be a leader, and therefore, I attempted to make some sort of headway in this regard as well, but I failed miserably due to my raw nature of the communication skills. I am looking to have a career in human and social sciences, and in those fields, one has to have great interpersonal skills before he or she can professionally thrive and develop. The goal of this plan is to develop my powers to influence others, and I want to accomplish my goals and objectives through them. The manager has to be a leader as well in the modern times. I will however not go behind traditional jobs, and I am planning to be an entrepreneur in the industry of fast food2. The prices of meals are increasing with the passage of time, and therefore, even in America, people are finding it hard to keep their bellies full. The capitalistic mindset is robbing people from their competencies in order to fulfill fiscal goals and objectives that hardly qualify as ethically and humanly right, but the world is running to create profit all the time. The humanistic values are dying out, and I want to make a difference in this world by providing the poor with food and beverages at a lower cost. The customers are going to be able to open credit lines with the store so that they can pay at the end of each month. In this way, they will never experience hunger as a result of empty pocket. The evolution of entrepreneurship into a socialistic notion needs the people like me in order to expand deep and wide in the nations of the world because social workers do not work to earn a living, but they do that in order to serve the humanity3. The business professionals have to exert themselves so that they can attain some kind of higher purpose in life, and when they succeed in this regard then, they will attain the lower on es as well. The businesses have to go beyond the requirement of

Market Imperative and Popular culture Essay Example | Topics and Well Written Essays - 500 words

Market Imperative and Popular culture - Essay Example So how is it connected with market imperative And what really is market imperative Market imperative is basically an economic concept that states that the consistent need of producers to seek new markets forces them to cross national boundaries and exploit foreign markets. In other words, the need to seek new frontiers might push national boundaries to the extent that there is little difference left in national and foreign markets. When a country's producers push their own boundaries, they create new boundaries and thus embrace foreign land into their own scope of influence. This is a logical concept but due to rapid globalization, this concept has become a curse for the world. America stands at the very center of this heated debate about national boundaries extension. If a country that seeks to extend its control to other countries chooses to market its products and services to foreign lands, it automatically gains access to their social and moral fabric. And while it may be trying to only sell its products but it intentionally or unintentionally also manages to sell its values and norms to other countries thus triggering a process of homogenous culture.

The evaluation of Coca Cola Company Corporate Sustainability Report Essay

The evaluation of Coca Cola Company Corporate Sustainability Report 2012-13 against the Global Reporting Initiative 3.1 Guidelines - Essay Example The consumers and employees are very much concerned about social and environmental issues. So the company gets involved in performing all these activities to satisfy its customers and employees. CSR plays an important role in the growth and success of the company. Strategies of corporate sustainability focus on green product and services. Coca Cola’s strategies of corporate sustainability have changed over time as per its business needs and requirements. The concept of corporate sustainability is based on two vital principles. One principle focuses on increasing the resource of the company by benefiting society or environment. Another principle of corporate sustainability focuses on reducing risk of the company by increasing its business opportunities. This essay focuses on value creation process of the company by performing various sustainable approaches. According to GRI guidelines CR reporting must serve the needs of company’s stakeholders. It helps them to gain credibility. In the present time the stakeholders are using multiple channels to reach maximum number of people. The companies merge information of CR in their annual report. GRI guideline is gaining its popularity in recent years. To increase CR reporting programs GRI is putting a huge effort to promote its guidelines throughout the world. For example US and China are presently focusing more on connecting traditional standard setter with GRI program like SEC, IIFAC etc. GRI is launching a new guideline to make improvement in its standards. CR reporting will be benefited by improving global standard and performance of CR activities. Presently 80% of G 250 companies and 69% of N100 companies are following GRI guidelines and standards in developing their CR Report. Earlier these percentages were very low. According to GRI guidelines CSR reporting is an

Market Imperative and Popular culture Essay Example | Topics and Well Written Essays - 500 words

Market Imperative and Popular culture - Essay Example So how is it connected with market imperative And what really is market imperative Market imperative is basically an economic concept that states that the consistent need of producers to seek new markets forces them to cross national boundaries and exploit foreign markets. In other words, the need to seek new frontiers might push national boundaries to the extent that there is little difference left in national and foreign markets. When a country's producers push their own boundaries, they create new boundaries and thus embrace foreign land into their own scope of influence. This is a logical concept but due to rapid globalization, this concept has become a curse for the world. America stands at the very center of this heated debate about national boundaries extension. If a country that seeks to extend its control to other countries chooses to market its products and services to foreign lands, it automatically gains access to their social and moral fabric. And while it may be trying to only sell its products but it intentionally or unintentionally also manages to sell its values and norms to other countries thus triggering a process of homogenous culture.

Article summary Example | Topics and Well Written Essays - 1250 words - 1

Summary - Article Example Humor and laughter are closely related however these are not synonymous. One can laugh without a humorous stimulus and similarly one can experience humor without laughter. Historically humor history is perceived to be 35000 years old. Almost every culture spends appreciable time communicating in a humorous context. No single humor theory is universally accepted however, three essential themes, are repeatedly observed in the majority of humor theories: 1) humor reflects a set of incongruous conceptualizations, 2) humor involves repressed sexual or aggressive feelings, and 3) humor elevates social status by demonstrating superiority or saving face. It has been discussed that animals also show response to humorous behavior. With respect to genetics, it has been observed that women laugh 126% more than men during conversations with each other. Brain damage, particularly in the frontal lobes, causes deficits of humor appreciation. The elucidation of the neurobiology of humor has benefited from two approaches: 1) observing the effects of various brain lesions on humor perception and 2) functional magnetic resonance imaging (fMRI) studies, which monitor brain activity in normal subjects while perceiving humor. Despite language and cultural barriers, humor in traditional societies is generally comprehensible to visiting anthropologists. Two humor phenomena especially standout in the anthropological literature: joking relationships and clowns. There is no way to know with certainty when humor evolved relative to language although it would appear that at least sophisticated humor must have succeeded language. The credible range for the origins of language lands between a few hundred thousand years to about 2-4 million years ago. There is increasing evidence that a new level of symbolic thought was achieved around 50,000 years ago. A figurine integrating the head of a lion with the legs of a person dated around 32,000 years old is among the earliest evidence for symbolic art. Humor can perhaps be framed as an incongruent social concept â€Å"violating† the essence of a congruent social concept. Dunbar (1993) has put forward a theory that, in primates, neocortical size is proportional to group size and that language ultimately replaced grooming as the primary social bond .Humor is a fascinating cognitive function. The relative ease in how we use it belies its considerable complexity. To conclude humor appears to be a function of Homo sapiens’ augmented social abilities and as an extension of language, could perhaps be the most complex cognitive function in the animal kingdom. The origins of language, spirituality, hominid group size and animal teasing may have particular relevance to humor. A number of humankind’s higher cognitive functions could well be inextricably rooted in humor’s evolutionary history, thus making this subject worthy of further exploration. Works Cited Polimeni & P.Riess , â€Å"The First Joke: Explor ing the Evolutionary Origins of Humor†, Evolutionary Psychology human-nature.com/ep – 2006. 4: P347-366,JPReiss@cc.umanitoba.ca Web 23 Mar 2011, http://www.epjournal.net/filestore/ep04347366.pdf [Professor’s Name] [Writer’s Name] [Course Title] [Date] Laughter; A scientific investigation Laughter is part of universal human vocabulary, produced and recognized by all people of all cultures. Laughter is instinctive behavior programmed by our genes, not by vocal community in which we grow up. Laughter can

Nrega Scheme a Success Essay Example for Free

Nrega Scheme a Success Essay Is NREGA(National Rural Employment Guarantee Act) a success or a failure? The NREGA is an Indian Job Guarantee scheme, enacted by the legislation on Aug 25,2005. The scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household at a wage of Rs 120 per day. So almost after five years of its commencement can NREGA be considered a success ? This essay will consider a number of explanations for concluding the impact of NREGA. My argument would be that definitely NREGA has been a success. First of all we need to remember that NREGA is a programme without precedent. No other employment programme has even come close to being implemented on such a large scale. So the output can’t be compared to that of any other programmes. Taking into account the success story of the Pandurni village in the Nanded district of Maharastra which won the award for the best performance in implementing the Rural Employment Guarantee Scheme for 2009-2010, we can see that around 1500 people from the village are registered under this scheme from which around 800 have been benifited from it. Pandurni has completed over 100 irrigation projects. Of these projects one that has been remarkable is the rocky bund built by around 200 villagers, to prevent soil erosion. Officials claim that implementation of the scheme on such a large scale here has prevented the migration of labourers to other districts. Similar success stories have also been reported from various villages of Rajasthan. NREGA has created more work for rural people than any other programme since independence. If we look at the coverage of the scheduled caste and scheduled tribe, if we look at the participation of women, if we look at the financial inclusion that we have achieved about more than 10 crore bank accounts and post office accounts that have been opened for NREGA workers then a lot can be said in terms of its achievements. It can be agreed to a fact that nothing in this world is an unmixed blessing. I agree if the NREGA has good side, it has a bad side also. But the ill effects have been largely due to corruption in our country. Its because of that only the ‘aam admi’(ordinary people) are not able to avail the proper benifits of the scheme. NREGA is a scheme which if implemented properly can benefit the labour class of our country.

Innovative Financial Instruments

Innovative Financial Instruments Methodology Collection of secondary data: Historical data from sites of NSE, BSE, SEBI etc Getting Data from newspapers Getting data from the Various Research papers published. Collecting data from various Books available on the topic. Review of Previous Management Research Reports Getting Access to Instruments available in India from SEBI websites. Findings and Conclusions In India financial market majorly denotes equity markets. Indian debt market is not well developed and still 80% of market is under Government securities. Securitization has to be done on assets held by Banks. Bond market needs a great consideration in terms of junk bonds An effort can be made to develop Carbon Emission and National growth index. Commodities Options should be developed in India. Credit derivatives should be developed with consideration of all the possible types of Credit derivatives. In a country with major income from Agriculture, Weather derivatives should be introduced to protect the interest of various involved parties. To mitigate the Catastrophe hazards new technique for risk management should be introduced. Financial development Index to measure the developments in various parameters to conclude growth in real terms. Conclusion Despite the accelerated industrial growth experienced this decade from recent economic reforms, most major investors around the globe do not yet see India as an ideal country for foreign investment. The competition for global capital will only get tougher in the years to come, and unless the political, judicial and economic environments are right, India will lag behind many other emerging nations. More importantly, the rising expectations of the middle-class, widening income and wealth inequalities between the haves and have-nots, require efficient initiatives from Government and corporate to attract and accommodate the funds available. Variety of financial products like mutual funds, insurance, shares, debentures, derivative instruments, etc. are available in India. However, the reach of these products is very limited and the features of many of these products are very basic in nature. Further development and innovation in these products would be faster if they are accessed by all classes of investors in urban as well as rural areas. The thrust lies mainly on the development of new financial products to deepen the improvements in the product distribution itself. The responsibility of ensuring these improvements vests with all the stakeholders in the financial services industry. ABSTRACT The Indian financial market has been primarily divided into three categories namely: Equity; Debt; Derivatives. Every category has its own importance in the development of financial markets. In most of the developed nations after the development of Equity now the major focus is on Debt and Derivatives market. The reason for this focus can be many supportive benefits which accrue to a market by development of double D market. Surprisingly in financial market is used as a synonym for equity market which has completely under deployed Debt and derivative markets. The importance and potentials of debt market are still under a doubtful impression in India and no major revolution has been brought to this effect in the recent periods. Focus of more and more to just equity markets has created saturation in Indian stock market. So willingly or unwillingly now the focus has to be shifted towards other possible avenues. Some of the possible avenues have been categorized during this research conducted on various instruments which are globally available but cannot find place in Indian markets. Now these instruments are also categorized in the various forms and accrue to a specific market. Firstly the focus is laid on so called Backbone of Indian Financial system Vis the Indian equity market, which has incorporated every possible instrument which can be accommodated in Indian family of Equity instruments. Few instruments has been recognized which can be absorbed in Indian market, which can be Indian Depository Receipt (IDR), Non-Voting Shares, Cumulative convertible preference shares (CCPS), Debt-equity swap. Secondly it comes the most awaited Debt market which needs great development especially in case of corporate bonds. In India 80% of bonds are Govt. issued and 80% of remaining by institutional investors. So there has to happen lot of work by GOI (Government of India). In this few instruments which can be of utmost importance for Indian environment can be Inflation linked bonds (ILB), junk bonds, Specialized debt fund for infrastructure funding, securitization of debt. Thirdly it comes to the funds of masses i.e. pension funds and retirement schemes which are always backed by government and also has gained support from the government. In this case one of the major innovative works can be on New Pension Scheme. Fourthly, it comes to mutual funds which has the role of UTI, SEBI, RBI, AMFI and other such authorities which are regulating the workings of mutual funds in India. One of New Direction in mutual funds can be Investment funds in international Markets. Fifthly it comes to the derivatives market, which can be divided in two major forms futures and options. In future major development can be in the newly arrived concepts which can become, Instruments of masses. These include Futures on the Index of Industrial and Economy growth and Index and futures for Carbon Emission in the country. Further option market again has a lot of scope for improvements in the fields of Weather derivatives, Commodity Options, Credit derivatives. Last but not the least there is an open category which also has few innovative instruments to be captured. These can be Index for Natural Disaster and risk Management and Financial development Index. Important consideration to be noticed here is that India is a great Economy with tremendous growth opportunities has to cater with ongoing global competition in terms of capital and Money markets developments. Another important issue here is that India has to balance its Financial market with the equitable share of debt and equity. It should be open for latest and innovative types of instruments suitable for the growth and development of financial system. New concepts like Carbon Emission index should be a given a proper research and find out the ways to develop and implement it. INTRODUCTION INTEGRATION OF GLOBAL CAPITAL MARKETS In this age of globalization and liberalization domestic markets alone cannot cater to the growing needs of corporate and individuals. As a result of which there is a need of finance from various new sources which has led to the integration of world markets. As a result we have seen development of various financial products in past few years. Financial globalization has brought considerable benefits to economies and to investors and has also changed the structure of markets, creating new risks and challenges for market participants and policymakers. Globalization has also increased the scope of many new financial products. Two decades ago, someone building a new factory would probably have been restricted to borrow from a domestic bank. Today it has many more options to choose from. It can also shop around the world for loan with lower interest rate and can borrow in foreign currency if foreign-currency loans offer more attractive terms than domestic-currency loans; it can issue stocks or bonds in either domestic or international capital markets. The evolution of new financial products has increased the size of global capital markets considerably over the years. Market capitalization and year to date turnover of twenty major stock exchanges is given below : THE INDIAN CAPITAL MARKET A capital market is a place where both government and companies raise long term funds to trade securities on the bond and the stock market. It consists of both the primary market where new securities are issued among investors, and the secondary markets where already existent securities are traded. In the capital market, commodities, bonds, equities and other such investment funds are traded. There are 22 stock exchanges in India, first being the Bombay Stock Exchange (BSE), which began formal trading in 1875. Over the past few years, there has been a swift change in the Indian capital markets, especially in the secondary market. In terms of the number of companies and total market capitalization in share market, the Indian equity market is considered large relative to the countrys stage of economic development. CONVENTIONAL PRODUCTS IN INDIAN CAPITAL MARKETS EQUITY Equity shares are issued by the companies in primary market to raise capital from public and corporate houses. It provides a share in the earnings of the company and the equity shareholder can participate in decision making of the company also. There are three basic types of equity: Common stock or ordinary shares [1] Common stock, as it is known in the United States, or ordinary shares, according to British terminology, is the most important form of equity investment. An owner of common stock is part owner of the enterprise and is entitled to vote on certain important matters, including the selection of directors. Common stock holders benefit most from improvement in the firms business prospects. But they have a claim on the firms income and assets only after all creditors and all preferred stock holders receive payment. Some firms have more than one class of common stock, in which case the stock of one class may be entitled to greater voting rights, or to larger dividends, than stock of another class. This is often the case with family owned firms which sell stock to the public in a way that enables the family to maintain control through its ownership of stock with superior voting rights. Preferred stock [2] Also called preference shares, preferred stock is more akin to bonds than to common stock. Like bonds, preferred stock offers specified payments on specified dates. Preferred stock appeals to issuers because the dividend remains constant for as long as the stock is outstanding, which may be in perpetuity. Some investors favor preferred stock over bonds because the periodic payments are formally considered dividends rather than interest payments, and may therefore offer tax advantages. The issuer is obliged to pay dividends to preferred stock holders before paying dividends to common shareholders. If the preferred stock is cumulative, unpaid dividends may accrue until preferred stock holders have received full payment. In the case of non cumulative preferred stock, preferred stock holders may be able to impose significant restrictions on the firm in the event of a missed dividend. Warrants [3] Warrants offer the holder the opportunity to purchase a firms common stock during a specified time period in future, at a predetermined price, known as the exercise price or strike price. The tangible value of a warrant is the market price of the stock less the strike price. If the tangible value when the warrants are exercisable is zero or less the warrants have no value, as the stock can be acquired more cheaply in the open market. A firm may sell warrants directly, but more often they are incorporated into other securities, such as preferred stock or bonds. Warrants are created and sold by the firm that issues the underlying stock. In a rights offering, warrants are allotted to existing stock holders in proportion to their current holdings. If all shareholders subscribe to the offering the firms total capital will increase, but each stock holders proportionate ownership will not change. The stock holder is free not to subscribe to the offering or to pass the rights to others. In t he UK a stock holder chooses not to subscribe by filing a letter of renunciation with the issuer. RECENT DEVELOPMENT IN EQUITY MARKET Free pricing- The abolition of office of the controller of capital issue resulted in the emergence of new era in primary markets. All controls on designing, pricing and tenure were abolished. The investors were given the freedom to price an instrument. Entry Norms- Hitherto no restrictions for a company to tap the capital markets. This resulted in massive surge of small cap issues. The need for transparent free entry was felt by SEBI. Disclosures- the quality of disclosure in the offer document was really poor. A lot of vital adverse information was not disclosed. SEBI stringent discloser norms were introduced. Book Building- It is the process of price discovery. One of the drawbacks of free pricing was price mechanism. The issue price has to be decided around 60-70 days before the opening at issue. Introduction to price building has overcome the limitation of price mechanism. Streamlining the procedures- all the procedures was streamlined. Many aspects of the operations have been made transparent. SCOPE OF FURTHER EQUITY INSTRUMENTS INDIAN DEPOSITORY RECEIPTS (IDR) After the success of American Depository Receipts and Global Depository Receipts the Indian regulatory body, SEBI also allowed foreign companies to raise capital in India through INDIAN DEPOSITORY RECEIPTS (IDRs). IDRs can be understood as a mirror image of well-known ADRs/GDRs. In an IDR, foreign companies issue the shares to an Indian Depository, which would, issue Depository Receipts to investors in India. The Depository Receipts would be listed in Indian stock exchanges and would be freely transferable. The actual shares of the IDRs would be held by an Overseas Custodian, who shall authorize the Indian Depository to issue the IDRs. The Overseas Custodian must be a foreign bank having business in India and needs approval from the Finance Ministry for acting as a custodian while the Indian Depository needs to be registered with the SEBI. Following rules were established by SEBI for listing through IDR: ISSUERS ELIGIBILITY CRITERIA: [4] Must have an average; turnover of US$ 500 million during the previous 3 financial years. Must have capital and free reserves which must aggregate to at least US$100 million. Must be making a profit for the previous 5 years and must have declared a dividend of 10% in each such year. The pre issue debt-equity ratio must be not more than 2:1. Must be listed in its home country. Must not be prohibited by any regulatory body to issue securities Must have a good track record with compliance with securities market regulations. Must comply with any additional criteria set by SEBI REASONS FOR DORMANCY IN ISSUE OF IDR: Stringent rules set by SEBI made foreign companies stay away from Indian market. The rules were made more stringent after the Global economic crisis. Availability of easy funds in foreign markets. Rate of interest in foreign banks is also less which made them prime source of funds for companies. Uncertainty of subscription in Indian markets. Indian companies have been highly active in foreign markets by raising funds through ADR and GDR but till date no foreign company has raised money through IDRs. Standard Chartered is the first company to allow its plan to issue IDR and has received the clearance from RBI also. The bank has yet to announce the size of the IDR issue, though the figures are expected to vary from Rs 2,500 to Rs 5,000 crore. Non -Voting Shares A non- voting share is more or less similar to the ordinary equity shares except the voting rights. It is different from a preference share in the sense that in case of a possible winding up of the company, the preference shareholders get their shares of dividends repaid before the owners of the non-voting shareholders. The companies with the constant track record and a strong dividend history can issue these kinds of instruments. They are basically focused to small investors who are normally not interested in the management of the firm. Hence non promoting share are a good tool for the promoters of the company to increase the share capital without diluting the control. However if the company does not fulfill the commitment of higher dividend then these shares are automatically converted to shares with voting rights. Hence it is very important for the companies to assess the characteristics of future cash flow and determine whether paying a higher rate of dividend is practicable for them or not. Debt for equity and equity for debt swaps Adebt for equity swapis not an instrument but a situation where a company offers its shareholders and creditors debt in exchange for equity or stock. The value of the stock is determined on current market rates. The company may, however, offer a higher value to attract more shareholders and debt holders to participate in the swap. Equity for debt swapis the opposite of the above process. In this swap, the creditors to the company agree to exchange the debt for equity in the business. How do creditors benefit Creditors such as banks and other financial institutions provide capital to large businesses. If the business gets into financial trouble, it may sometimes not be a good idea to allow the company to close down and go bankrupt. In these situations, these creditors find it easier to allow the business to take the form of going concern and become the shareholders in this business. The debt or the assets of the company may be so big that there would be no any profit or advantage to the banks in seeking its closure. At times, the company may also be seeking a restructuring of its capital for certain reasons. These include meeting contractual obligations, taking advantage of current stock valuation in the market or to avoid making coupon and face value payments. How debt for equity swap takes place Let us assume that a shareholder or investor of some company has $1000 worth of stock. The company offers the option to swap equity withdebtat a rate of 1:1. This means that for $1000 worth of stock, the investor would get $1000 worth of debt or bonds in the company. At times, the company may offer a ratio of 1:2 to attract more stock for its debt. This could mean an additional gain in the form of $1000 worth of stock for the investor. But it is also important to note that the investor would lose their rights as a shareholder, the moment he swaps his stock orequity for debt. Original shareholders often find themselves deprived of their voting rights when such swaps take place. DEBT MARKET Traditionally, the Indian capital markets are more synonymous with the equity markets both on account of the common investors preferences and the huge capital gains it offered no matter what the risks involved are. On the other hand, the investors preference for debt market has been relatively a recent phenomenon an outcome of the shift in the economic policy, whereby the market forces have been accorded a greater leeway in influencing the resource allocation. If we talk about the Indian debt market bond market has formed its own place in the financial systems. All the recent developments are accrued to bonds market in India. Size of debt market If we look at worldwide scenario, debt markets are three to four times larger than equity markets. However, the debt market in India is very small in comparison to the equity market. This is because the domestic debt market has been deregulated and liberalized only recently and is at a relatively nascent stage of development. Interest rate deregulation The last two decades witnessed a gradual maturing of Indias financial markets. Since 1991, key steps were taken to reform the Indian financial markets. With the introduction of auction systems for rising Government debt in the 1990s, along with the decision to put an end to the monetization of Government deficits, started the gradual process of deregulation of interest rates. While the immediate effect of deregulation of interest rates was associated with rising interest rates, deft debt management policy by the RBI and the improvements in the market micro structure saw a gradual decline in the interest rates. Abolition of tax deduction at source Tax deduction at source (TDS) used to be major barrier to the development of the government securities market in India. Recognizing this, the RBI convinced the Government to abolish it. The removal of TDS on Government securities was apparently a small but a major reform in removing pricing distortions for Government securities. Introduction of auctions For Auctions a major policy shift from administered interest rate regime to a market based regime, the choice of auction system needed to be carefully drawn, in order to give a comfort level to the government as a borrower as also to moderate the risks that might be faced by the uninitiated market participants. Accordingly, it was decided to begin with the sealed bid auction system with a post bid reserve price (since the RBI as an agent to government participates in the auctions as a non-competitive bidder.) Banks investments in Government securities valuation/accounting norms Concomitantly, regulatory initiatives in introducing international best practices in valuation/accounting norms for the banks investment portfolios (comprising mainly government securities) also necessitated the banks to mark to market their investment portfolios and forced them to actively trade. This gave an added impetus to the incipient trading activity. Consolidation of stocks Primary issuance strategy was further fine tuned towards issuance of benchmark securities to improve liquidity. Alignment of coupon payment dates for the new issuances has been consciously attempted to promote stripping of government securities (STRIPS), which if once materializes, can facilitate the establishment of zero coupon yield curve and also can take care of the segmental needs in terms of asset liability matching. Zero coupon curve for pricing[5] To bring further improvements in the pricing mechanism in debt market, a need was felt to promote a zero coupon yield curve (ZCYC). As indicated earlier, STRIPS (Separate Trading of Registered Interest and Principal of Securities) can facilitate a ZCYC. This curve is being used for pricing NSEs interest rate futures transactions. FIMMDA/PDAI, publishes a monthly ZCYC for the market participants to value their government securities portfolios. However, the ZCYC based pricing has not been popular with the Indian market participants. SCOPE OF INNOVATIONS IN BOND MARKET Inflation linked bonds (ILB)[6] The recent Monetary Policy released by RBI laid its thrust on controlling the spiraling inflation, especially the food price inflation. One of the reasons behind the CRR hike was to curtail the rising inflationary expectations (higher expected price trends) In the past RBI has been concerned about the fact that a common man does not have any protection against rising prices, Vis No Inflation Hedge. The common man has to rely on traditional but inefficient methods to hedge the real inflation risks, such as Gold and real assets such as commodities or real estate or even excessive stocking of goods In developed markets like US, the government has issues Treasury Inflation Protected Securities known as TIPS. Globally more than USD 1 trillion worth inflation linked bonds must be outstanding. Inflation linked bonds (ILB) securities give an opportunity to market participants and investors to hedge against inflation. The coupon (interest rate) of ILB is fixed but the underlying principal would move in tandem with the inflation levels in the country. At redemption of the securities the higher of the value (adding inflation) thus arrived or face value is paid off. Banks and Financial Institutions usually buy wholesale and create retail market for such securities. With right access retail investor can easily buy such securities to protect himself from inflation and this could have following advantage to investors and the government. The inflation linked bonds can make the governments accountable for higher inflation since the cost of borrowings will be linked to inflation (if coupon paid is inflation hedged). Rising inflation will also raise the repayment of inflation linked bonds. It will help government to broaden the investor base by offering inflation linked bonds at the retail level, where the participation now is minimal. Government can diversify the debt service costs in a deflationary (falling prices) scenario. It is very likely that the existence of inflation linked bonds might reduce the inflation risk premium embedded in government bonds. For the inflation linked bonds to be an effective hedge GOI should ensure that the underlying inflation index is representative of real or actual inflation on the streets. RBI can precisely quantify control the inflationary expectations embedded in the economy as well as in the markets. RBI can use inferences from trading in such bonds in formulating its monetary policy stance The onus on monetary policy tools such as interest rates, to contain inflation will reduce if RBI can guide or influence the inflationary expectations through the demand/supply of inflation linked bonds and with an excellent communication policy. For Investors in general, inflation linked bonds would provide distinct advantages: It allows investors to hedge the purchasing power (inflation) risk. The capital is inflation risk protected and the income (coupon) can be structured that way too. Inflation linked bonds universally are regarded as a separate asset class would provide diversification benefits to a portfolio due to its negative co relation with returns from traditional asset classes. Such bonds provide positive risk reward relationship too. Inflation linked bonds are effective vehicle for hedging risks for institutional investors, where the long term liabilities are inflation linked or linked to future wage levels or banks who face the inflation risk on their assets side due to their GOI Bond holdings. Access of FIIs to the inflation linked bonds can allow them to hedge their inflation risks in India which are currently expressed in the currency markets. The USD/INR (currency) volatility can hence come down hence. Junk bonds Sharp movements in the Indian equity market may be par for the course. But when it comes to the market for corporate bonds, its constantly stagnant. The reason is, we dont have a corporate bond market. But this is overwhelmingly dominated by government securities (about 80% of the total). Of the remaining, close to 80% again comprises privately placed debt of public financial institutions. An efficient bond market helps corporate reduce their financing costs. It enables companies to borrow directly from investors, bypassing the major intermediary role of a commercial bank. One of the important instruments in corporate market is Junk Bonds which could be great source of financing for countries like India where markets are not much regulated. A speculative bond rated BB or below. Junk bonds are generally issued by corporations of questionable financial strength or without proven track records. They tend to be more volatile and higher yielding than bonds with superior quality ratings.Junk bond funds emphasize diversified investments in these low-rated, high-yielding debt issues. Thus, these are high-yielding, high-risk securities issued by companies with less robust finances.[7] Need for Junk Bonds in India The major issue amongst Indian bond markets has been how companies with poorer ratings can raise funds. At times the banks and FIs are reluctant to invest in even the AAA-rated companies. In fact for progress of a developing nation like India, this would give a wonderful opportunity for the smaller companies to get funds and implement their ideas. However, a proper regulatory mechanism also needs to be set-up to avoid high risk of default in the case of junk bonds. Currently, there are only two instruments that FIIs can invest in India, i.e., equity and debt. The cap on FII debt investment varies from time to time between $1.5 billion and $2 billion. The Asset Reconstruction Company of India Ltd. (ARCIL), Indias first asset reconstruction company, has vied for permitting FIIs to invest in a new instrument in India distressed assets. ARCIL has recommended SEBI, RBI and the Finance Ministry to allow FII investment in a new category, which is neither equity nor debt but a separate lucrative instrument security receipts with underlying distressed assets. Proposed Junk Bond Market in India Scenario (Optimistic Realistic) Anoptimistic scenariowould be having junk bonds in the market ideally for funding by FIIs and Institutions for financing the small Indian companies. However, considering the risk associated with these bonds it might not be possible in near future because economy is still in its nascent phase and on a fast development track.So any move which is risky and can affect future inflows of foreign funds and investor confidence would not be ideal. The only way an investor should invest in junk bonds is by diversifying. A selection of at least half a dozen issues will afford the investor some protection. High risk is inherent in high yield bonds. Nevertheless, your portfolio may well have a place for some of these securities if you are not risk-averse. By having junk bond markets, it would in fact signify deepening and maturing of Indian debt markets. In India, companies are hamstrung by the fact that investment relaxations may come in only when the debt markets get deeper, so that insurance companies can increase their portfolio yield without exposing themselves to risk for long tenures by investing in junk bonds. Impact of Junk Bonds on Indian Economy[8] A well-functioning corporate bond market allows firms to tailor their assets and liability profiles. If companies fear they will not be able to raise long-term resources, they are likely to stay away from long-term investments or entrepreneurial ventures that have a long-term payoff. In the long run, this can affect economic growth. The corporate bond and the junk bond market could fill this vacuum. In the absence of a corporate bond market, a large part of debt funding comes from banks. In the process, banks assume a significant amount of risk due to maturity mismatch between short-term deposits that can be readily withdrawn and relatively long-term illiquid loan assets resulting in high NPAs. An active and efficient bond market gives companies an alternative means of raising debt capital in the event of a credit crunch. It also leads to better pricing of credit risk (since expectations of all market participants are incorporated into bond prices). FIIs are major players in the equities market. However, thanks to the ceiling on their investment in the debt market (currently, there is a cumulative sub-ceiling of $0.5 bn on investment in corporate debt), they are present only in a limited way in the bond market. Pension funds and the insurance sector could be another constituency, but the absence of pension funds and low insurance penetration has meant limited demand for lon Innovative Financial Instruments Innovative Financial Instruments Methodology Collection of secondary data: Historical data from sites of NSE, BSE, SEBI etc Getting Data from newspapers Getting data from the Various Research papers published. Collecting data from various Books available on the topic. Review of Previous Management Research Reports Getting Access to Instruments available in India from SEBI websites. Findings and Conclusions In India financial market majorly denotes equity markets. Indian debt market is not well developed and still 80% of market is under Government securities. Securitization has to be done on assets held by Banks. Bond market needs a great consideration in terms of junk bonds An effort can be made to develop Carbon Emission and National growth index. Commodities Options should be developed in India. Credit derivatives should be developed with consideration of all the possible types of Credit derivatives. In a country with major income from Agriculture, Weather derivatives should be introduced to protect the interest of various involved parties. To mitigate the Catastrophe hazards new technique for risk management should be introduced. Financial development Index to measure the developments in various parameters to conclude growth in real terms. Conclusion Despite the accelerated industrial growth experienced this decade from recent economic reforms, most major investors around the globe do not yet see India as an ideal country for foreign investment. The competition for global capital will only get tougher in the years to come, and unless the political, judicial and economic environments are right, India will lag behind many other emerging nations. More importantly, the rising expectations of the middle-class, widening income and wealth inequalities between the haves and have-nots, require efficient initiatives from Government and corporate to attract and accommodate the funds available. Variety of financial products like mutual funds, insurance, shares, debentures, derivative instruments, etc. are available in India. However, the reach of these products is very limited and the features of many of these products are very basic in nature. Further development and innovation in these products would be faster if they are accessed by all classes of investors in urban as well as rural areas. The thrust lies mainly on the development of new financial products to deepen the improvements in the product distribution itself. The responsibility of ensuring these improvements vests with all the stakeholders in the financial services industry. ABSTRACT The Indian financial market has been primarily divided into three categories namely: Equity; Debt; Derivatives. Every category has its own importance in the development of financial markets. In most of the developed nations after the development of Equity now the major focus is on Debt and Derivatives market. The reason for this focus can be many supportive benefits which accrue to a market by development of double D market. Surprisingly in financial market is used as a synonym for equity market which has completely under deployed Debt and derivative markets. The importance and potentials of debt market are still under a doubtful impression in India and no major revolution has been brought to this effect in the recent periods. Focus of more and more to just equity markets has created saturation in Indian stock market. So willingly or unwillingly now the focus has to be shifted towards other possible avenues. Some of the possible avenues have been categorized during this research conducted on various instruments which are globally available but cannot find place in Indian markets. Now these instruments are also categorized in the various forms and accrue to a specific market. Firstly the focus is laid on so called Backbone of Indian Financial system Vis the Indian equity market, which has incorporated every possible instrument which can be accommodated in Indian family of Equity instruments. Few instruments has been recognized which can be absorbed in Indian market, which can be Indian Depository Receipt (IDR), Non-Voting Shares, Cumulative convertible preference shares (CCPS), Debt-equity swap. Secondly it comes the most awaited Debt market which needs great development especially in case of corporate bonds. In India 80% of bonds are Govt. issued and 80% of remaining by institutional investors. So there has to happen lot of work by GOI (Government of India). In this few instruments which can be of utmost importance for Indian environment can be Inflation linked bonds (ILB), junk bonds, Specialized debt fund for infrastructure funding, securitization of debt. Thirdly it comes to the funds of masses i.e. pension funds and retirement schemes which are always backed by government and also has gained support from the government. In this case one of the major innovative works can be on New Pension Scheme. Fourthly, it comes to mutual funds which has the role of UTI, SEBI, RBI, AMFI and other such authorities which are regulating the workings of mutual funds in India. One of New Direction in mutual funds can be Investment funds in international Markets. Fifthly it comes to the derivatives market, which can be divided in two major forms futures and options. In future major development can be in the newly arrived concepts which can become, Instruments of masses. These include Futures on the Index of Industrial and Economy growth and Index and futures for Carbon Emission in the country. Further option market again has a lot of scope for improvements in the fields of Weather derivatives, Commodity Options, Credit derivatives. Last but not the least there is an open category which also has few innovative instruments to be captured. These can be Index for Natural Disaster and risk Management and Financial development Index. Important consideration to be noticed here is that India is a great Economy with tremendous growth opportunities has to cater with ongoing global competition in terms of capital and Money markets developments. Another important issue here is that India has to balance its Financial market with the equitable share of debt and equity. It should be open for latest and innovative types of instruments suitable for the growth and development of financial system. New concepts like Carbon Emission index should be a given a proper research and find out the ways to develop and implement it. INTRODUCTION INTEGRATION OF GLOBAL CAPITAL MARKETS In this age of globalization and liberalization domestic markets alone cannot cater to the growing needs of corporate and individuals. As a result of which there is a need of finance from various new sources which has led to the integration of world markets. As a result we have seen development of various financial products in past few years. Financial globalization has brought considerable benefits to economies and to investors and has also changed the structure of markets, creating new risks and challenges for market participants and policymakers. Globalization has also increased the scope of many new financial products. Two decades ago, someone building a new factory would probably have been restricted to borrow from a domestic bank. Today it has many more options to choose from. It can also shop around the world for loan with lower interest rate and can borrow in foreign currency if foreign-currency loans offer more attractive terms than domestic-currency loans; it can issue stocks or bonds in either domestic or international capital markets. The evolution of new financial products has increased the size of global capital markets considerably over the years. Market capitalization and year to date turnover of twenty major stock exchanges is given below : THE INDIAN CAPITAL MARKET A capital market is a place where both government and companies raise long term funds to trade securities on the bond and the stock market. It consists of both the primary market where new securities are issued among investors, and the secondary markets where already existent securities are traded. In the capital market, commodities, bonds, equities and other such investment funds are traded. There are 22 stock exchanges in India, first being the Bombay Stock Exchange (BSE), which began formal trading in 1875. Over the past few years, there has been a swift change in the Indian capital markets, especially in the secondary market. In terms of the number of companies and total market capitalization in share market, the Indian equity market is considered large relative to the countrys stage of economic development. CONVENTIONAL PRODUCTS IN INDIAN CAPITAL MARKETS EQUITY Equity shares are issued by the companies in primary market to raise capital from public and corporate houses. It provides a share in the earnings of the company and the equity shareholder can participate in decision making of the company also. There are three basic types of equity: Common stock or ordinary shares [1] Common stock, as it is known in the United States, or ordinary shares, according to British terminology, is the most important form of equity investment. An owner of common stock is part owner of the enterprise and is entitled to vote on certain important matters, including the selection of directors. Common stock holders benefit most from improvement in the firms business prospects. But they have a claim on the firms income and assets only after all creditors and all preferred stock holders receive payment. Some firms have more than one class of common stock, in which case the stock of one class may be entitled to greater voting rights, or to larger dividends, than stock of another class. This is often the case with family owned firms which sell stock to the public in a way that enables the family to maintain control through its ownership of stock with superior voting rights. Preferred stock [2] Also called preference shares, preferred stock is more akin to bonds than to common stock. Like bonds, preferred stock offers specified payments on specified dates. Preferred stock appeals to issuers because the dividend remains constant for as long as the stock is outstanding, which may be in perpetuity. Some investors favor preferred stock over bonds because the periodic payments are formally considered dividends rather than interest payments, and may therefore offer tax advantages. The issuer is obliged to pay dividends to preferred stock holders before paying dividends to common shareholders. If the preferred stock is cumulative, unpaid dividends may accrue until preferred stock holders have received full payment. In the case of non cumulative preferred stock, preferred stock holders may be able to impose significant restrictions on the firm in the event of a missed dividend. Warrants [3] Warrants offer the holder the opportunity to purchase a firms common stock during a specified time period in future, at a predetermined price, known as the exercise price or strike price. The tangible value of a warrant is the market price of the stock less the strike price. If the tangible value when the warrants are exercisable is zero or less the warrants have no value, as the stock can be acquired more cheaply in the open market. A firm may sell warrants directly, but more often they are incorporated into other securities, such as preferred stock or bonds. Warrants are created and sold by the firm that issues the underlying stock. In a rights offering, warrants are allotted to existing stock holders in proportion to their current holdings. If all shareholders subscribe to the offering the firms total capital will increase, but each stock holders proportionate ownership will not change. The stock holder is free not to subscribe to the offering or to pass the rights to others. In t he UK a stock holder chooses not to subscribe by filing a letter of renunciation with the issuer. RECENT DEVELOPMENT IN EQUITY MARKET Free pricing- The abolition of office of the controller of capital issue resulted in the emergence of new era in primary markets. All controls on designing, pricing and tenure were abolished. The investors were given the freedom to price an instrument. Entry Norms- Hitherto no restrictions for a company to tap the capital markets. This resulted in massive surge of small cap issues. The need for transparent free entry was felt by SEBI. Disclosures- the quality of disclosure in the offer document was really poor. A lot of vital adverse information was not disclosed. SEBI stringent discloser norms were introduced. Book Building- It is the process of price discovery. One of the drawbacks of free pricing was price mechanism. The issue price has to be decided around 60-70 days before the opening at issue. Introduction to price building has overcome the limitation of price mechanism. Streamlining the procedures- all the procedures was streamlined. Many aspects of the operations have been made transparent. SCOPE OF FURTHER EQUITY INSTRUMENTS INDIAN DEPOSITORY RECEIPTS (IDR) After the success of American Depository Receipts and Global Depository Receipts the Indian regulatory body, SEBI also allowed foreign companies to raise capital in India through INDIAN DEPOSITORY RECEIPTS (IDRs). IDRs can be understood as a mirror image of well-known ADRs/GDRs. In an IDR, foreign companies issue the shares to an Indian Depository, which would, issue Depository Receipts to investors in India. The Depository Receipts would be listed in Indian stock exchanges and would be freely transferable. The actual shares of the IDRs would be held by an Overseas Custodian, who shall authorize the Indian Depository to issue the IDRs. The Overseas Custodian must be a foreign bank having business in India and needs approval from the Finance Ministry for acting as a custodian while the Indian Depository needs to be registered with the SEBI. Following rules were established by SEBI for listing through IDR: ISSUERS ELIGIBILITY CRITERIA: [4] Must have an average; turnover of US$ 500 million during the previous 3 financial years. Must have capital and free reserves which must aggregate to at least US$100 million. Must be making a profit for the previous 5 years and must have declared a dividend of 10% in each such year. The pre issue debt-equity ratio must be not more than 2:1. Must be listed in its home country. Must not be prohibited by any regulatory body to issue securities Must have a good track record with compliance with securities market regulations. Must comply with any additional criteria set by SEBI REASONS FOR DORMANCY IN ISSUE OF IDR: Stringent rules set by SEBI made foreign companies stay away from Indian market. The rules were made more stringent after the Global economic crisis. Availability of easy funds in foreign markets. Rate of interest in foreign banks is also less which made them prime source of funds for companies. Uncertainty of subscription in Indian markets. Indian companies have been highly active in foreign markets by raising funds through ADR and GDR but till date no foreign company has raised money through IDRs. Standard Chartered is the first company to allow its plan to issue IDR and has received the clearance from RBI also. The bank has yet to announce the size of the IDR issue, though the figures are expected to vary from Rs 2,500 to Rs 5,000 crore. Non -Voting Shares A non- voting share is more or less similar to the ordinary equity shares except the voting rights. It is different from a preference share in the sense that in case of a possible winding up of the company, the preference shareholders get their shares of dividends repaid before the owners of the non-voting shareholders. The companies with the constant track record and a strong dividend history can issue these kinds of instruments. They are basically focused to small investors who are normally not interested in the management of the firm. Hence non promoting share are a good tool for the promoters of the company to increase the share capital without diluting the control. However if the company does not fulfill the commitment of higher dividend then these shares are automatically converted to shares with voting rights. Hence it is very important for the companies to assess the characteristics of future cash flow and determine whether paying a higher rate of dividend is practicable for them or not. Debt for equity and equity for debt swaps Adebt for equity swapis not an instrument but a situation where a company offers its shareholders and creditors debt in exchange for equity or stock. The value of the stock is determined on current market rates. The company may, however, offer a higher value to attract more shareholders and debt holders to participate in the swap. Equity for debt swapis the opposite of the above process. In this swap, the creditors to the company agree to exchange the debt for equity in the business. How do creditors benefit Creditors such as banks and other financial institutions provide capital to large businesses. If the business gets into financial trouble, it may sometimes not be a good idea to allow the company to close down and go bankrupt. In these situations, these creditors find it easier to allow the business to take the form of going concern and become the shareholders in this business. The debt or the assets of the company may be so big that there would be no any profit or advantage to the banks in seeking its closure. At times, the company may also be seeking a restructuring of its capital for certain reasons. These include meeting contractual obligations, taking advantage of current stock valuation in the market or to avoid making coupon and face value payments. How debt for equity swap takes place Let us assume that a shareholder or investor of some company has $1000 worth of stock. The company offers the option to swap equity withdebtat a rate of 1:1. This means that for $1000 worth of stock, the investor would get $1000 worth of debt or bonds in the company. At times, the company may offer a ratio of 1:2 to attract more stock for its debt. This could mean an additional gain in the form of $1000 worth of stock for the investor. But it is also important to note that the investor would lose their rights as a shareholder, the moment he swaps his stock orequity for debt. Original shareholders often find themselves deprived of their voting rights when such swaps take place. DEBT MARKET Traditionally, the Indian capital markets are more synonymous with the equity markets both on account of the common investors preferences and the huge capital gains it offered no matter what the risks involved are. On the other hand, the investors preference for debt market has been relatively a recent phenomenon an outcome of the shift in the economic policy, whereby the market forces have been accorded a greater leeway in influencing the resource allocation. If we talk about the Indian debt market bond market has formed its own place in the financial systems. All the recent developments are accrued to bonds market in India. Size of debt market If we look at worldwide scenario, debt markets are three to four times larger than equity markets. However, the debt market in India is very small in comparison to the equity market. This is because the domestic debt market has been deregulated and liberalized only recently and is at a relatively nascent stage of development. Interest rate deregulation The last two decades witnessed a gradual maturing of Indias financial markets. Since 1991, key steps were taken to reform the Indian financial markets. With the introduction of auction systems for rising Government debt in the 1990s, along with the decision to put an end to the monetization of Government deficits, started the gradual process of deregulation of interest rates. While the immediate effect of deregulation of interest rates was associated with rising interest rates, deft debt management policy by the RBI and the improvements in the market micro structure saw a gradual decline in the interest rates. Abolition of tax deduction at source Tax deduction at source (TDS) used to be major barrier to the development of the government securities market in India. Recognizing this, the RBI convinced the Government to abolish it. The removal of TDS on Government securities was apparently a small but a major reform in removing pricing distortions for Government securities. Introduction of auctions For Auctions a major policy shift from administered interest rate regime to a market based regime, the choice of auction system needed to be carefully drawn, in order to give a comfort level to the government as a borrower as also to moderate the risks that might be faced by the uninitiated market participants. Accordingly, it was decided to begin with the sealed bid auction system with a post bid reserve price (since the RBI as an agent to government participates in the auctions as a non-competitive bidder.) Banks investments in Government securities valuation/accounting norms Concomitantly, regulatory initiatives in introducing international best practices in valuation/accounting norms for the banks investment portfolios (comprising mainly government securities) also necessitated the banks to mark to market their investment portfolios and forced them to actively trade. This gave an added impetus to the incipient trading activity. Consolidation of stocks Primary issuance strategy was further fine tuned towards issuance of benchmark securities to improve liquidity. Alignment of coupon payment dates for the new issuances has been consciously attempted to promote stripping of government securities (STRIPS), which if once materializes, can facilitate the establishment of zero coupon yield curve and also can take care of the segmental needs in terms of asset liability matching. Zero coupon curve for pricing[5] To bring further improvements in the pricing mechanism in debt market, a need was felt to promote a zero coupon yield curve (ZCYC). As indicated earlier, STRIPS (Separate Trading of Registered Interest and Principal of Securities) can facilitate a ZCYC. This curve is being used for pricing NSEs interest rate futures transactions. FIMMDA/PDAI, publishes a monthly ZCYC for the market participants to value their government securities portfolios. However, the ZCYC based pricing has not been popular with the Indian market participants. SCOPE OF INNOVATIONS IN BOND MARKET Inflation linked bonds (ILB)[6] The recent Monetary Policy released by RBI laid its thrust on controlling the spiraling inflation, especially the food price inflation. One of the reasons behind the CRR hike was to curtail the rising inflationary expectations (higher expected price trends) In the past RBI has been concerned about the fact that a common man does not have any protection against rising prices, Vis No Inflation Hedge. The common man has to rely on traditional but inefficient methods to hedge the real inflation risks, such as Gold and real assets such as commodities or real estate or even excessive stocking of goods In developed markets like US, the government has issues Treasury Inflation Protected Securities known as TIPS. Globally more than USD 1 trillion worth inflation linked bonds must be outstanding. Inflation linked bonds (ILB) securities give an opportunity to market participants and investors to hedge against inflation. The coupon (interest rate) of ILB is fixed but the underlying principal would move in tandem with the inflation levels in the country. At redemption of the securities the higher of the value (adding inflation) thus arrived or face value is paid off. Banks and Financial Institutions usually buy wholesale and create retail market for such securities. With right access retail investor can easily buy such securities to protect himself from inflation and this could have following advantage to investors and the government. The inflation linked bonds can make the governments accountable for higher inflation since the cost of borrowings will be linked to inflation (if coupon paid is inflation hedged). Rising inflation will also raise the repayment of inflation linked bonds. It will help government to broaden the investor base by offering inflation linked bonds at the retail level, where the participation now is minimal. Government can diversify the debt service costs in a deflationary (falling prices) scenario. It is very likely that the existence of inflation linked bonds might reduce the inflation risk premium embedded in government bonds. For the inflation linked bonds to be an effective hedge GOI should ensure that the underlying inflation index is representative of real or actual inflation on the streets. RBI can precisely quantify control the inflationary expectations embedded in the economy as well as in the markets. RBI can use inferences from trading in such bonds in formulating its monetary policy stance The onus on monetary policy tools such as interest rates, to contain inflation will reduce if RBI can guide or influence the inflationary expectations through the demand/supply of inflation linked bonds and with an excellent communication policy. For Investors in general, inflation linked bonds would provide distinct advantages: It allows investors to hedge the purchasing power (inflation) risk. The capital is inflation risk protected and the income (coupon) can be structured that way too. Inflation linked bonds universally are regarded as a separate asset class would provide diversification benefits to a portfolio due to its negative co relation with returns from traditional asset classes. Such bonds provide positive risk reward relationship too. Inflation linked bonds are effective vehicle for hedging risks for institutional investors, where the long term liabilities are inflation linked or linked to future wage levels or banks who face the inflation risk on their assets side due to their GOI Bond holdings. Access of FIIs to the inflation linked bonds can allow them to hedge their inflation risks in India which are currently expressed in the currency markets. The USD/INR (currency) volatility can hence come down hence. Junk bonds Sharp movements in the Indian equity market may be par for the course. But when it comes to the market for corporate bonds, its constantly stagnant. The reason is, we dont have a corporate bond market. But this is overwhelmingly dominated by government securities (about 80% of the total). Of the remaining, close to 80% again comprises privately placed debt of public financial institutions. An efficient bond market helps corporate reduce their financing costs. It enables companies to borrow directly from investors, bypassing the major intermediary role of a commercial bank. One of the important instruments in corporate market is Junk Bonds which could be great source of financing for countries like India where markets are not much regulated. A speculative bond rated BB or below. Junk bonds are generally issued by corporations of questionable financial strength or without proven track records. They tend to be more volatile and higher yielding than bonds with superior quality ratings.Junk bond funds emphasize diversified investments in these low-rated, high-yielding debt issues. Thus, these are high-yielding, high-risk securities issued by companies with less robust finances.[7] Need for Junk Bonds in India The major issue amongst Indian bond markets has been how companies with poorer ratings can raise funds. At times the banks and FIs are reluctant to invest in even the AAA-rated companies. In fact for progress of a developing nation like India, this would give a wonderful opportunity for the smaller companies to get funds and implement their ideas. However, a proper regulatory mechanism also needs to be set-up to avoid high risk of default in the case of junk bonds. Currently, there are only two instruments that FIIs can invest in India, i.e., equity and debt. The cap on FII debt investment varies from time to time between $1.5 billion and $2 billion. The Asset Reconstruction Company of India Ltd. (ARCIL), Indias first asset reconstruction company, has vied for permitting FIIs to invest in a new instrument in India distressed assets. ARCIL has recommended SEBI, RBI and the Finance Ministry to allow FII investment in a new category, which is neither equity nor debt but a separate lucrative instrument security receipts with underlying distressed assets. Proposed Junk Bond Market in India Scenario (Optimistic Realistic) Anoptimistic scenariowould be having junk bonds in the market ideally for funding by FIIs and Institutions for financing the small Indian companies. However, considering the risk associated with these bonds it might not be possible in near future because economy is still in its nascent phase and on a fast development track.So any move which is risky and can affect future inflows of foreign funds and investor confidence would not be ideal. The only way an investor should invest in junk bonds is by diversifying. A selection of at least half a dozen issues will afford the investor some protection. High risk is inherent in high yield bonds. Nevertheless, your portfolio may well have a place for some of these securities if you are not risk-averse. By having junk bond markets, it would in fact signify deepening and maturing of Indian debt markets. In India, companies are hamstrung by the fact that investment relaxations may come in only when the debt markets get deeper, so that insurance companies can increase their portfolio yield without exposing themselves to risk for long tenures by investing in junk bonds. Impact of Junk Bonds on Indian Economy[8] A well-functioning corporate bond market allows firms to tailor their assets and liability profiles. If companies fear they will not be able to raise long-term resources, they are likely to stay away from long-term investments or entrepreneurial ventures that have a long-term payoff. In the long run, this can affect economic growth. The corporate bond and the junk bond market could fill this vacuum. In the absence of a corporate bond market, a large part of debt funding comes from banks. In the process, banks assume a significant amount of risk due to maturity mismatch between short-term deposits that can be readily withdrawn and relatively long-term illiquid loan assets resulting in high NPAs. An active and efficient bond market gives companies an alternative means of raising debt capital in the event of a credit crunch. It also leads to better pricing of credit risk (since expectations of all market participants are incorporated into bond prices). FIIs are major players in the equities market. However, thanks to the ceiling on their investment in the debt market (currently, there is a cumulative sub-ceiling of $0.5 bn on investment in corporate debt), they are present only in a limited way in the bond market. Pension funds and the insurance sector could be another constituency, but the absence of pension funds and low insurance penetration has meant limited demand for lon