Bullying Essay - 739 Words

Bullying mentally and physically affects peoples well being. This abuse occurs not only in schools around us, but also worldwide. Bullying is a problem, and people need to figure out ways to solve it. There are a lot of different types of bullying: such as, cyber, verbal, social, and physical. Every year nearly 48% of students are bullied. Bullying itself cannot be resolved, but there are ways to help prevent it from happening. High School bullying is very common, and causes a lot of conflicts with fellow students and also teachers. In today’s society individuals think it is ok to just take their feelings out on others through a series of different ways. Bullying is an individuals way of feeling better about themself. This has been one†¦show more content†¦I first hand have witnessed someone that was bullied to her breaking point. Her and I were friends, she always seemed happy and never seemed to be worried about what people thought about her. She had one bad day in particular that she had told me everything about her bullies and I informed her that I would be there for her more. A week later she was gone. It is real, bullying has real effects on people that takes them to the point of wanting to end their lives. In todays society bullying is just another thing, but it is a major problem and should not be forgotten about. How help someone being bullied? If it is witnessed, tell an adult, stand up to the bully. Individuals being bullied should have someone to talk to, and the people bullying them should be disciplined.There should be harsher punishments for those who victimize others. Although, I believe there should be help involved for them too. Not only are they bullying, but there more or less is a reason they are doing it. The bullies as well should have someone to talk to, someone to reassure them that everything will be okay for them too. 90% of the time an individual that physically or mentally abuses someone is either down on themselves, has a hard time at home, or is jealous of the individual they harass. People need to stick up for the adolescents in these situations, offer them some kind of support. Bullying is a very common thing in high schools, and affects teenage individuals bothShow MoreRelatedArgumentative Essay : Bullying And Bullying756 Words   |  4 PagesRita Bullock July 3, 2015 Essay on Bullying In 2-3 pages, according to the Dignity for All Act, what is the legal responsibility of the teacher and the school when a student claims that he or she is being harassed, intimidated, or discriminated by another student(s)? What happens to a student who bullies, and what happens to the victim? School bullying can occur during every stage of development from Kindergarten through High school. Students suffer harmful effects when they are emotionallyRead MoreBullying Essay631 Words   |  3 PagesDiana Vanessa Alba Writing Level 5 Cause and Effect Essay BULLYING IS TAKING OUR CHILDREN LIVES Have you ever bullied or been bullied? Bullying behavior can occur for many reasons, some of which are TV violence, families in poverty, mis-teachings, lack of parent’s attention and also kids under bad influence. Teens often begin bullying because they want to control those who are weaker than they are. Bullying gives you people an identity, they become well known in school, they want to be popularRead MoreEssay on Bullying In America989 Words   |  4 PagesBullying is an act that is an everyday occurrence in some people’s lives. Bullying can be direct or indirect. What this means, is that bullying can be in the form of violence such as hitting and kicking or in the form of verbal abuse such as name calling and teasing. Manipulation and exclusion are also forms of bullying. Bullying can be taken into consideration as a minor assault but any form should be taken seriously. Whether it is taken to an extreme, done over a long or short period of time, orRead MoreEssay Bullying1404 Words   |  6 PagesBullying What is bullying? We might have seen it every day, and we still do not know what it is. In the short story â€Å"Black Boy,† Richard Wright shows how he was bullied as a young African American boy. However, bullying is not limited to one type of person living in one time period. It still exists today in the form of young people getting bullied on the streets, and at school. It could be very harmful, and could lead to serious damages, but sometimes it could help  by making people stand  up forRead More Bullying Essay567 Words   |  3 PagesBullying Bullying has been a growing problem in the world but more prominently has this become an issue in America. In Ann Hulberts article â€Å"Elephant in the Room† of Slate Magazine, she takes a position regarding anti-bullying programs that are being made to reduce this crisis. The way parents, teachers and victims have dealt with bullies has generally been a step in the wrong direction. We have always been told to ignore people that do not respect you, when really the problem is that theseRead Morebullying Essay794 Words   |  4 Pagesï » ¿1. What is the main idea presented in Lee Tunstalls article? (2marks) The main idea in Lee Tunstalls article is how bullying impacts our society. Tunstall given information on bullying in school, cyberbullying and in the workplace. Lee Tunstall explains how important bullying is as a crime and how people are constantly affected by bullying. 2. Overall, is Lee Tunstalls article biased? If you think it is, describe how you know they are biased. If you think it isnt, describe how Tunstall avoidsRead MoreBullying Essay876 Words   |  4 PagesEffects of Bullying Bullying has sustained as a significant issue in both adolescence and adulthood. To some, it can lead to depression while others may have the mental capacity to tolerate the issue and overcome the challenge. The problem regarding harassment arises from the fact that some individuals have no understanding of the different forms of victimization. Mostly, a person does not know what he or she is putting others through when they call them names intentionally or unintentionally.Read MorePersuasive Essay On Bullying1374 Words   |  6 PagesESSAY ON BULLYING I stood up and I watched the people eyes filled with tears and the environment impregnated with cry of mothers, fathers, cousins and relatives while I looked in awe and shamed, this was the same guy that tried to start a conversation with me three weeks ago that I ignored because other people labeled him a wanker and a weirdo. I had nothing against him after all its not a crime to be selective in choosing one’s friends so why should I neglect that moral logic and principle and moreoverRead MoreBullying Argumentative essay970 Words   |  4 PagesWriting Argumentative Essay 25 November 2013 Bullying Have you ever seen or experienced bullying and the dramatic effects it has on its victims? Unfortunately nine out of every ten students have experienced bullying in school or online. Many people believe that bullying is a part of growing up and kids do not know any better. Bullies are intentionally causing mental and or physical damage to their victims, which will affect them for the rest of their lives. Bullying has shown that it canRead MoreBullying Essay804 Words   |  4 PagesBullying 1. Bullying is constant harassment that is either physical, mental, cyber or social bullying. An example of physical bullying is if someone consistently hits you such as if every day at school they hit you that can be classed as physical bullying. A form of mental or emotional bullying is if someone calls you names and is derogatory towards you. These words will make you sad and possibly feel unwanted. Cyber bullying is when someone messages you things either on your phone or some messaging

Whole Food Essays - 1163 Words

Industry Analysis Dominant Industry Characteristics Since going public in 1991, Whole Foods has focused on acquiring other small owner-managed natural and organic food stores as well as opening new stores of their own. However in 2002-2006, they decided that instead of making acquisitions, Whole Foods growth strategy would be based on opening new stores. Whole Foods chooses upscale, urban metropolitan areas to place their stores. These locations are high traffic shopping locations, some are freestanding, some are in strip centers, and some are in high-density mixed-use projects. By the end of 1991 fiscal year Whole Foods had 10 stores and by the end of 2007 they had 276 stores. By 2008, Whole Foods had stores in 36 states.†¦show more content†¦This shows that the industry is still in early development because farmers that are not growing organic crops are becoming interested and attracted to organic farming. Being able to charge a higher price and bring in more profit is an eye opener and it encourages farmers to start organic farming. Another industry characteristic in the organic and natural food industry is number of rivals. An important industry driving force is marketing innovations. In October 2002 the U.S. Department Agriculture (USDA) officially established labeling standards for organic products, overriding both the patchwork of inconsistent state regulations for what could be labeled as organic and the different rules of some 43 agencies for certifying organic products. By establishing labeling standards for organic products concerning what could be called organic insures that people are receiving pure organic products. The new labeling program was not intended as a healthy or safety program (organic products have not been shown to be more nutritious than conventionally grown products, according to the American Dietetic Association), but rather as marketing solution. By creating stricter standards it made it harder for growers, processors, exporters, importers, shippers and merchants to prove that their product wereShow MoreRelatedWhole Foods : The Whole Food Markets Essay1369 Words   |  6 Pag esâ€Å"Whole Food Markets† Week #6 If you were to ask people if they enjoy going to work on Monday, I am sure most of them would give you a funny look, and say â€Å"No†. Americans dislike of their jobs is very evident. To see the magnitude of this just look on social media. On Fridays, there are vast amounts of thank god it’s Friday (TGIF) memes indicating how happy they are that they are done with work for the week. Many American simply do not enjoy working. However, a select few actually do. They enjoyRead MoreWhole Foods955 Words   |  4 PagesStrategy for Whole Foods Market Current Strategic Issues 1. How does Whole Foods sustain positive growth in sales? 2. How does Whole Foods cope with the downturn in the economy? 3. How does Whole Foods achieve sustainable competitive advantage? Rationale for Issues One of Whole Foods main strategic issues is how it should sustain positive growth in sales. Sales growth in 2008 was 0.8%, compared to sales growth increase of 8.2% in 2007. However, much of these low sales growth figuresRead MoreWhole Foods Essay990 Words   |  4 PagesWhole Foods 1. Using the ABC model of an attitude, analyze what John Mackey’s online comments about Wild Oats reveal about his attitudes. The Affect of Mackey’s attitude can be seen in his statement to Perry Odak, the owner of Wild Oats, stating that â€Å"I’m going to destroy you†. The Affects can also be seen in Rahodeb’s online posted when he stated that â€Å"[Wild Oats management] clearly doesn’t know what it is doing. It has to future and no value. The verbal statement about Mackey’s feelingsRead MoreWhole Foods1871 Words   |  8 Pages1. (a) Whole Foods operates in the organic, or natural and specialty foods retail industry. Leading the industry, Whole Foods Market is the world s most successful natural foods grocery chain. Having recently acquired one of its main competitors, Wild Oats Market, Whole Foods currently competes with two other large grocery chainsÂâ€"Kroger and Trader Joe s. The company also acquired Amrion, a company specializing in nutraceuticals (natural supplements with pharmaceutical-type benefits), creatingRead MoreWhole Foods Case980 Words à ‚  |  4 PagesWhole Foods Market Case Whole Foods Market has evolved into one of the largest retailers of natural and organic foods. This company s rapid growth and market success has to do with being a mission-driven company. Whole Foods is highly selective about what they sell and are dedicated to their core values. Whole Food s integrated strategy consists of growth, differentiation, merchandising, and customer service. This strategic plan was aimed at expanding its operations to offer high quality andRead MoreMarketing Plan For Whole Foods1429 Words   |  6 Pages Grocery shopping has become more diversified than ever before. Whole Foods Market and Trader Joe’s have become household names in the consumer arena. Markets such as Roots, and Common Market are also in the game even though they operate on a smaller scale. Despite comparable size in terms of locations, each store’s growth has operated using a very different model. As Whole Foods has increased the number of retail centers that it operates, it has suffered accompanying growing pains in the distributionRead MoreWhole Foods Market Inc.1231 Words   |  5 PagesINDUSTRY EVOLUTION Whole Foods Market Inc. is a service provider in the grocery industry, which report in the US economy under the North American Industry Classification System NAICS 42441, General-line groceries merchants wholesalers, by the time the company started operations in 1980 supermarkets had a history of 51 years. Supermarkets unlike other type of retail is considered truly American in origin, self service grocery stores are traced back to 1912 in Memphis Tennessee, and it was in 1930Read MoreWhole Foods1021 Words   |  5 PagesWhole Foods Market in 2010 Core Values and Strategy Wilmington University Name: Whitney Newman Date 1/13/13 Overview: Provide a brief overview of the company. Include such details as its history, present day situation, and any other pertinent information you think is helpful in understanding the company (points 5) * Whole Foods Market was founded in 1980 working with natural and healthy foods in Austin, Texas; it’s one of the world’s largest of natural and organic foods supermarkets. InRead MoreWhole Foods Strategy1168 Words   |  5 PagesThe company I will be presenting is Whole Foods, case number seven. Whole Foods is a supermarket chain based in Austin, Texas which emphasizes natural and organic products. As of September 2009[update], the company operates 302 stores: 291 stores in 38 U.S. states and the District of Columbia; six stores in Canada; and five stores in the United Kingdom. External assessment: There are over one hundred thousand grocery stores in the United States, with a wide variety of types. Stores range fromRead MoreWhole Foods Markets1582 Words   |  7 Pagespaper examines the published case study Whole Foods Markets, 2005: Will There Be Enough Organic Food to Satisfy the Growing Demand? (Hitt, Ireland and Hoskisson, 2007, p. C534). Although the published study addresses numerous aspects of Whole Foods Market’s business as a leading international retailer of â€Å"natural† organic foods, the analysis provided herein is focused on Whole Foods Market’s ability to meet future growth demands. This paper explores Whole Foods Market’s basic internal environment

The Truth behind the ADHD/ADD Fraud free essay sample

Many children today are being branded as mentally ill just because they don’t behave like other children in the classroom. When a child constantly squirms in his seat, when he speaks out when it’s not his turn to speak or when he makes careless mistakes, his teacher can immediately advice his parents to take him to a psychiatrist because he may have ADD or ADHD. However, it is clear based on many evidences that are supported by science that ADD or ADHD doesn’t exist and that it is not a real medical diagnosis (Rosemond Ravenel, 2008, p.4). Every day in the US, millions of children are given prescription medications before they can go to school or start their daily activities (Breggin, 2001, p.4). Many of them are taking dangerous drugs like Ritalin and other amphetamines to control their supposedly abnormal behavior. Medical professionals have given these children psychiatric prescriptions for ADD or ADHD, a psychiatric illness in epidemic proportions that don’t exist and seems to be a tool of pharmaceutical companies to make tons of money (Conrad, 2006, p. 15). Attention-deficit hyperactivity disorder (ADHD) or Attention-deficit disorder (ADD) is a neurobehavioral disorder that has something to do with the development of human beings. Symptoms appear in children before 7 years of age and include various behaviors showing inattention and impulsiveness. Some studies show that it is more common in boys than in girls (Pomere, 2007, p.7). In general, ADHD is a chronic disorder that persists into adulthood. However, people who have ADHD usually develop coping mechanisms to counter their symptoms. The illness was formerly called ADD but the term was changed because of recent versions of the DSM. Pharmaceutical companies today are recommending various amphetamines for many illnesses, especially ADHD. These drugs couldn’t be more dangerous and ineffective in solving the real problem. The calming effect of amphetamines on neurological disorders was just accidentally discovered in 1937 when a physician administered amphetamines to children who had headaches. The amphetamine which he administered did not really cure the children’s headache but it did make them docile (Shorter, 2005, p.34). From then on, pharmaceutical companies have been prescribing these dangerous medications to people for the littlest of reasons. Today, the amphetamine Ritalin is the champion of pharmaceutical companies against the epidemic of ADHD. The growth of the disease and the corresponding use of amphetamines by children are unbelievable. In 1970, more than 200,000 children were already on amphetamines even without tests to confirm the real abnormality behind the perceived disease. In 1985, the epidemic grew to more than 500,000 cases and now currently stands at 6 million cases (Baughman, et al. 2006, p.72). Brain scans are currently used by experts to validate the existence of disease in children. Results supposedly show that the brains of children suffering from ADHD are 10% smaller than the brains of healthy children. However, most children whose brains are scanned take the amphetamine stimulant drug, Ritalin. Amphetamines have long been found to cause brain shrinkage in people. Therefore, results of these brain scans are deceptive because they may be measuring brain shrinkage caused by Ritalin and not by ADHD (Baughman, et al. 2006, p.180). The effects of an ADHD are immediate and cruel. Once a child is diagnosed with ADHD, he will not be treated normally by his family, friends, and most people around him. He gets stigmatized as the amphetamine that he takes poisons his bodies. He then has to go through a very difficult life filled with emotional and physical stress. Diagnosis of ADHD can’t be more dubious. According to experts, ADHD is possible to diagnose using interview methods. If you go to your doctor for an examination of your child who may have ADHD, the doctor will admit that no single can test can validate the disease. The diagnosis is simply based on an interview with questions regarding your child’s behavior (Stein, 2001, p.52). Your child may be diagnosed with ADHD if he has exhibited six or more of the following inattention symptoms for more than six months: (1) he often makes careless mistakes in school or doesn’t give enough attention to details, (2) he finds it difficult to carry on tasks or sustain play, (3) he often doesn’t follow instructions and finish his school activities, (4) he’s not good in organizing activities and tasks, (5) he doesn’t like tasks that require constant mental activity, (6) he often looses his school things, such as books, pencils and toys, (7) he gets easily distracted, and (8) he exhibits forgetfulness in his daily activities (Stevens, 2000, p.9). Aside from inattention symptoms, your child may also be diagnosed with ADHD if he shows six or more of the following hyperactivity-impulsivity symptoms for more than six months: (1) he often squirms in his seat or fidgets with his feet and hands, (2) he often leaves his seat during class, (3) he often climbs or runs about when it’s inappropriate to do so, (4) he finds it difficult to quietly do activities, (5) he’s very talkative, (6) he blurts out his answers before questions are even completed, (7) he finds it difficult to wait for his turn, and (8) he always intrudes on or interrupts others (Stevens, 2000, p.9). All the behaviors listed above may be frustrating to teachers, parents, and other people, but they are normal behaviors that children who have different personalities may exhibit. Some children do require more discipline and attention than others but this fact doesn’t make them mentally abnormal. Note that the diagnosis of ADHD is purely subjective (Baughman, et al. 2006, p.70). Teachers or doctors observe the behaviors of children, and based on their judgment on what constitutes normal and abnormal behavior, they group children into healthy and mentally ill human beings. How could one rely on such diagnosis if judgments differ from one person to another depending on their personal background? Many issues rise from the relatively quick diagnosis of ADHD among schoolchildren. Some schools in the country are understaffed and underfunded. These schools don’t have enough resources and tools to manage children of different behaviors and characteristics (Jensen, 2004, p.4). It would be easier for these schools to teach and control schoolchildren if they all followed instructions like zombies. With the introduction of amphetamine drugs such as Ritalin, differences in the personalities of schoolchildren can be avoided. Since the drug makes them all docile, understaffed and underfunded schools can make them all stay in one place while the teachers do their work. The drug though doesn’t make the children any smarter. It shrinks the brain while making them eerily docile.

Daily Transactional and Transformational Leadership

Question: Discuss about the Daily Transactional and Transformational Leadership. Answer: Introduction: As stated by Hamstra et al., (2014), leadership is the most important factor that contributes to the well being of an organization. The transformational and the transactional leadership theories happen to be most prominent leadership theories among the various leadership theories. Scholars agree on the fact that transformational and transactional leadership are dissimilar in concepts and practice. In the view point of Odumeru and Ogbonna, (2013), transformational leadership significantly augments transactional leadership. A transformational leader is one who inspire and stimulates the followers in order to get unexpected outcomes. He is responsible to look at the developmental needs of those who follow the leaders and always keep a trace of any kind of problem or issue faced by them. A transformational leader is responsible to enhance morale, motivation and performance of the followers incorporating a number of mechanisms. In this respect, Breevaart et al., (2014) commented that a transformational leader is the one who becomes a role model for the followers and inspire them to undertake the authority of their work. The leader is also responsible to understand the strengths and weaknesses of the followers and then aligning them with the most suitable roles and duties. This automatically enhances the ability of followers or employees. Martin Luther King, Steve Jobs are the excellent examples of transformational leaders. Jeff Bezos of Amazon also show his transformational leadership characteristics in his major business activities. Transactional leadership always focuses on the overall task of the supervision and team performance. It is the form of leadership, where the leaders promote conformity of the followers by the means of rewards and penalties. Hamstra et al., (2014) pointed out that unlike the transformational leaders, the transactional leaders do not look to change in near future and they spend time to find faults and deviation in the followers. This type of leadership is effectual for an organization, especially when their remains a consistency in the project. A transactional leader uses reward for positive actions and penalty for the negative. They are more concern with the process and flow of work rather than forward-thinking ideas. Leaders like Bill Gates, Howard Schultz are renowned for their transactional leadership style. The four major components of transformational leadership style are idealised influence where the leaders behave in an admirable manner and display his convictions and set clear set of values. They act as the role model for their followers (Odumeru Ogbonna, 2013). The way, the leader motivates the team inspire them with optimistic goals and offers better knowledge for the current tasks in operation. On the other hand, transactional leaders maintain a primarily passive nature in the business activity. Their criteria are always associated for rewarding the followers and maintaining a status quo. In this respect, McCleskey, (2014) stated that Douglas McGregors Theory X and Theory Y can be compared with these styles of leadership. Theory X can be put side by side with the transactional leadership where the leaders rule by fear and consequences; while Theory Y and the transformational leadership are comparable in nature because this style focuses on the idea where managers are responsible to encourage their employees. References: Breevaart, K., Bakker, A., Hetland, J., Demerouti, E., Olsen, O. K., Espevik, R. (2014). Daily transactional and transformational leadership and daily employee engagement.Journal of occupational and organizational psychology,87(1), 138-157. Hamstra, M. R., Van Yperen, N. W., Wisse, B., Sassenberg, K. (2014). Transformational and transactional leadership and followers achievement goals.Journal of Business and Psychology,29(3), 413-425. McCleskey, J. A. (2014). Situational, transformational, and transactional leadership and leadership development.Journal of Business Studies Quarterly,5(4), 117. Odumeru, J. A., Ogbonna, I. G. (2013). Transformational vs. transactional leadership theories: Evidence in literature.International Review of Management and Business Research,2(2), 355.

The Sun Also Rises Essays (2591 words) - English-language Films

The Sun Also Rises The Hemingway Hero Prevalent among many of Ernest Hemingway's novels is the concept popularly known as the Hemingway hero, an ideal character readily accepted by American readers as a man's man. In The Sun Also Rises, four different men are compared and contrasted as they engage in some form of relationship with Lady Brett Ashley, a near-nymphomaniac Englishwoman who indulges in her passion for sex and control. Brett plans to marry her fiancee for superficial reasons, completely ruins one man emotionally and spiritually, separates from another to preserve the idea of their short-lived affair and to avoid self-destruction, and denies and disgraces the only man whom she loves most dearly. All her relationships occur in a period of months, as Brett either accepts or rejects certain values or traits of each man. Brett, as a dynamic and self-controlled woman, and her four love interests help demonstrate Hemingway's standard definition of a man and/or masculinity. Each man Brett has a relationship with in the novel possesses distinct qualities that enable Hemingway to explore what it is to truly be a man. The Hemingway man thus presented is a man of action, of self-discipline and self-reliance, and of strength and courage to confront all weaknesses, fears, failures, and even death. Jake Barnes, as the narrator and supposed hero of the novel, fell in love with Brett some years ago and is still powerfully and uncontrollably in love with her. However, Jake is unfortunately a casualty of the war, having been emasculated in a freak accident. Still adjusting to his impotence at the beginning of the novel, Jake has lost all power and desire to have sex. Because of this, Jake and Brett cannot be lovers and all attempts at a relationship that is sexually fulfilling are simply futile. Brett is a passionate, lustful woman who is driven by the most intimate and loving act two may share, something that Jake just cannot provide her with. Jake's emasculation only puts the two in a grandly ironic situation. Brett is an extremely passionate woman but is denied the first man she feels true love and admiration for. Jake has loved Brett for years and cannot have her because of his inability to have sex. It is obvious that their love is mutual when Jake tries to kiss Brett in their cab ride home: 'You mustn't. You must know. I can't stand it, that's all. Oh darling, please understand!', 'Don't you love me?', 'Love you? I simply turn all to jelly when you touch me' (26, Ch. 4). This scene is indicative of their relationship as Jake and Brett hopelessly desire each other but realize the futility of further endeavors. Together, they have both tried to defy reality, but failed. Jake is frustrated by Brett's reappearance into his life and her confession that she is miserably unhappy. Jake asks Brett to go off with him to the country for bit: 'Couldn't we go off in the country for a while?', 'It wouldn't be any good. I'll go if you like. But I couldn't live quietly in the country. Not with my own true love', 'I know', 'Isn't it rotten? There isn't any use my telling you I love you', 'You know I love you', 'Let's not talk. Talking's all bilge' (55, Ch. 7). Brett declines Jake's pointless attempt at being together. Both Brett and Jake know that any relationship beyond a friendship cannot be pursued. Jake is still adjusting to his impotence while Brett will not sacrifice a sexual relationship for the man she loves. Since Jake can never be Brett's lover, they are forced to create a new relationship for themselves, perhaps one far more dangerous than that of mere lovers - they have become best friends. This presents a great difficulty for Jake, because Brett's presence is both pleasurable and agonizing for him. Brett constantly reminds him of his handicap and thus Jake is challenged as a man in the deepest, most personal sense possible. After the departure of their first meeting, Jake feels miserable: This was Brett, that I had felt like crying about. Then I thought of her walking up the street and of course in a little while I felt like hell again (34, Ch. 4). Lady Brett Ashley serves

Weber Carl Maria Von essays

Weber Carl Maria Von essays Carl Maria von Weber, a cousin of Mozart's wife Constanze, was trained as a musician from his childhood, the son of a versatile musician who had founded his own travelling theatre company. He made a favourable impression as a pianist and then as a music director, notably in the opera-houses of Prague and Dresden. Here he introduced various reforms and was a pioneer of the craft of conducting without the use of violin or keyboard instrument. As a composer he won a lasting reputation with the first important Romantic German opera, Der Freischtz. The opera Der Freischtz (The Marksman), first staged in Berlin in 1821, blends many of the ingredients typical of German Romanticism, simple peasant virtues mingling with the magic and latent evil of the forest, where the hero's magic bullets are forged at midnight. The grand heroic-Romantic opera Euryanthe is better known for its overture as is the opera Oberon, written for London in 1826. Weber's two concertos and the concertino for clarinet were written for the clarinettist Heinrich Baermann. Weber also wrote two piano concertos and a Konzertstck for piano and orchestra for his own use, as well as a useful Horn Concertino and Bassoon Concerto. His Aufforderung zum Tanze (Invitation to the Dance) is well known in an orchestral version of a work originally written for piano. Recommended Recordings Clarinet Concertos Nos. 1 Dances and Marches from Die Drei Pintos, Turandot Weber's chamber music includes a Clarinet Quintet and a Grand Duo Concertant for clarinet and piano, successors to the concertos and concertino for Baermann. Recommended Recording ...

Fossil Inc. clothing and accessorys Legal Structure Essay

Fossil Inc. clothing and accessorys Legal Structure - Essay Example a  partnership  ran by two or more people.  Also, another option is an incorporated company where business activities  are incorporated  into a company, which bestows  life  on business as a separate legal person (Mancuso 4). The Fossil inc. Clothing and Accessory is a  design, development, marketing and distribution, company that focuses on consumer products predicated on fashion and  value  such as sunglasses, watches, and leather goods among others, for retail sale on an international basis. Fossil Inc. is an incorporated  business  since it  is formed  on a corporation. Incorporating a business provides a liability  protection  and  considerable  tax advantages. The business can  move  on despite the death or bankruptcy of shareholders or  management. Moreover, it offers the best  means  of  expansion  and the provision of  outside  investors. Fossil Inc.  is under the ownership  of two brothers; Tom and Kosta Kartsotis who own about 30% of Fossil stock. In 1993, the Fossil Inc. sold 20% of the company to investors, but Tom retained 40.5% control over the  company  while his brother retained 18.8% ownership. According to Richardson (1), initial public offering of  stock  (public ownership) yielded $19 million, which Fossil Inc. used half of it to reduce the company’s  debt  and the other half to be kept as working capital. Additionally, in 1993, Fossil Inc. had  several  subsidiaries in Europe, led by Fossil Europe GmbH i.e. the company’s  primary  European  operation  in Germany. Other subsidiary companies of Fossil Inc. included Fossil Italia SRL and Fossil France SARL, which served as Fossil’s marketing, as well as distribution entities in those countries.  In addition, Fossil B.V., formed in 1993, stood as a company holding for the three European subsidiaries, where Texas-based Fossil Inc. controlled 70 per cent of the newly formed European holding Company (International Directory of Company Histories 1). In 1994, Fossil Inc. was able

Tourism in the Republic of Cyprus Research Paper

Tourism in the Republic of Cyprus - Research Paper Example This leads to one thing; sustainable tourism. Sustainable tourism is defined to as the move towards making less impact on the environment and culture in a given country while at the same time benefiting economically from it. The main objective is to develop tourism to the point where can continually have a great experience from the sector (Trejos & Chiang, 2009). Different countries have varied policies towards sustainability in tourism. The height of the problems coming from tourism guides policy making in every country. In this paper, we take the case study of Cyprus and the policies that they have adopted towards sustainability in tourism. Cyprus continues to experience growth in the number of tourists visiting the region every year (Gunn & Var, 2002). Its impeccable sites and beauty has made it experience an exponential growth to the number of tourists visiting the region every year. For example in the year 1975, they had close to 47000 thousands of tourists visiting the region. This number is nothing comparable to the 2.25 million tourists visiting the region in the year 2000 (Gunn & Var, 2002). The number has continued to grow in the recent decade, raising environmental concerns. While one can not dispute the economic benefits of such a growth, mass tourism has taken a toll on the environment in Cyprus. For example, in the year 1988, the income from the tourism sector estimated at 880 dollars. Today, the sector accounts for 20% of the overall income in the country (Gunn & Var, 2002). Features such as resorts for various groups, water parks with dolphins gracing them and archeological sites attract millions of people all over the world. The enormous numbers of people have had an impact on both on the culture of the people and the environment as a whole. For one, the noise from the tourists has been unbearable

Advanced Practice Legal Considerations Case Study

Advanced Practice Legal Considerations - Case Study Example Basically, there are six types of torts—a few of which will be discussed here, and how those specific laws apply to Luann’s situation. There are intentional torts against persons, which deal with very specific charges that are incurred when one person injures another. Other categories of torts similarly deal with different types of wrongs committed, including: unintentional torts (negligence); and special negligence doctrines, including negligent infliction of emotional distress among others. Finally, defenses against negligence—as well as strict liability—will be examined, especially as it regards whether confidentiality issues were breached when the lab tech used personal information to make a decision about informing someone about someone else’s health, a one person who was not supposed to be privy to that information as that person was a third party. Herein are analyses of some aspects of torts, some of which may not be torts which necessarily a lign with this particular case, but which should be mentioned nonetheless. II. Misappropriation of the Right to Publicity According to Frackman et. al. (1996), â€Å"The right of publicity makes it unlawful to use another's identity for commercial advantage without permission. In recent years, that right has grown to encompass the potential misappropriation of voice, performance style, former names, and maybe, as contended in a case recently filed in Indiana regarding the race horse Cigar, . . . the image of an animal† (pp. 1). Misappropriation of the right to publicity basically means that someone’s privacy is being invaded in some way, shape, or form. Others’ privacy should be guarded well. III. Invasion of the Right to Privacy An invasion of the right to privacy is a direct intrusion on someone’s personal space. This â€Å"invasion of privacy,† so to speak, is not legislated per se. However, confidentiality agreements—such as the one the lab tech Luann signed—should be honored, and are honored, in a court of law. However, various celebrities and other personalities of note have invoked the invasion of the right to privacy in court cases. Using the name or likeness of a person can also get one into trouble in regard to the invasion of privacy. This is a bit like intellectual property law, where someone’s image is protected. Interference with the First Amendment can be a cause of torts. In the case of invasion of the right of privacy, this applies occasionally. IV. Unintentional Torts (Negligence) a) Duty of Care Duty of care basically means that a reasonable person has a duty to another person to make sure that he or she does not have any kind of trouble. This means that anyone should act reasonably according with to the situation at hand. For example, one example of duty of care is that, if an oncoming car is about to hit a pedestrian, and a passersby had the chance to save the person, this is called t he person’s duty of care. Any reasonably-acting person would have tried to get the pedestrian out of the way of the oncoming car. In Luann’s case, she had the duty of care to protect the confidentiality of her client’s name and condition. She did not abide by the confidentiality agreement set forth when hired, and this is what got her into a lot of trouble with the courts. V. Breach of Duty Breach of duty occurs when a person has a duty to perform for a person, but he or she does not do it. For instance, in the previous example with the car about to hit the pedestrian, the onlooker would have performed a breach of duty by not rescuing the

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