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

The Rise in Police Brutality Essay example -- Papers Abuse Cops Author

The Rise in Police Brutality Police brutality and corrupt cop issues have increasingly risen. The problems posed by the illegal exercise of police power, which is an ongoing reality for individuals of a disfavored race, class, or sexual preference. There are innocent people beaten or put in jail or prison. They can be helped, but the ones beyond help are dead. There are good cops and there are bad cops. Under the law, article 7 states: ?No one shall be subjected to torture or to cruel, inhumane degrading treatment or punishment? (Amnesty 42). The definition of police brutality is the excessive use of deadly or physical force made by a police officer or officer of the law. By kicking, punching, using weapons, shooting, and killing innocent victims. If every cop followed the articles there would be no brutality. If the court systems barely help, if the police won?t do anything, and the media isn?t around. How can we prevent police brutality? With violence in America steadily rising you might support the fact that cops have to use physical force on criminals. But is excessive force needed for ?unarmed criminals Is it necessary to shoot at an ?unarmed? man 41 times because he made a suspicious move? Is it fair to have a man with no previous crime record to wait over 15 years on death row, while the legal system does nothing? While another man has a wooden stick shoved so far up his intestines that they ruptured. Instead of sitting down watching all this happen around you and just being glad it isn?t you. You can do something about it. Prevent police brutality; corrupt cops and the killing of innocent lives. The heinous, cruel and inhumane acts the following cops have done are by no means justified,... ....org/majfact.htm. February 22, 2000. Handbook of Policing the Police. California: Greenhaven Press, 1995. Leibovich, Lori. ?Rethinking Rodney King? March 13, 1998. [online] Available http://www.salon.com/news/1998/03/13news.html. February 29, 2000. Refuse and Resist. Who is Mumia Abu-Jamal. [online] Available http://mojo.calyx.net~refuse/mumia/051697brochure.html. February 22, 2000. Robinson, Bryan. ?Diallo Officers Self-Defense Case Hinges onLight and Autupsy Evidence. [online] Available -http://www.courttv.com/diallo/012800_background_ctv.htm. February 22, 2000. Rockwell, Robert. Police Brutality: More than A Few Bad Apples [online] Available http://mojo.calyxnet/~refuse/ndp/082497rockwell.html. February 26, 2000. Taylor, Stuart Jr. ?Guitly and Framed? [online] Available http://www.courttv.com/casefiles/mumia/guilty.html. October 25, 1999.

Making Scotch

Scotch whiskey is traditionally made with just barley and water.   Also referred to as malt whiskey, Scotch, in the beginning of the production process, requires barley grains to be steeped in water until they sprout.   The germinating barley is generally spread on the floor of a malting house where it continues to develop over the course of a week or two. The grains are turned over regularly during this malting period, using a â€Å"paddle† to allow air to get at them and to encourage even development.   The starch in the barley turns to sugar, and germination is stopped at the optimum time by placing the barley in an oven or kiln.   Traditionally, Scotch makers used peat fired ovens to give the Scotch its peaty, smoky taste.   Some distilleries continue to retain the peaty flavor of Scotch today by burning peat and blowing the smoke over the grain. Once the barley is dry, it is milled to produce a floury substance called â€Å"grist.†Ã‚   This substance is rich in sugar, and mixed with hot water to create a â€Å"mash.†Ã‚   The mash is placed in a large cylindrical metal vessel or container called a â€Å"mash tun.†Ã‚   In order to release the sugars, the contents of the mash tun are stirred regularly.   At the conclusion of this process, a liquid known as â€Å"wort† is produced.   This hot, sweet, non-alcoholic liquid is transferred to a large wooden â€Å"washback,† which is similar to a giant wooden pail that is commonly made from Oregon pine or Cypress, both of which are highly resistant to fungi. The yeast is added in the washback to begin the fermentation process.   During this process, the sugar in the wort is turned into alcohol as the solution bubbles and foams furiously before gradually slowing down.   The sugar is converted over a period of two to four days.   At the end of  this process, the alcohol content of the product is no more than approximately 8-9%.   The Scotch is not ready, and so the liquid wash must be distilled down to the required alcohol content. Distillation is the next major step in Scotch making.   This process takes place in copper pot stills that have a distinctive, swan-neck shape.   The shape of the stills and the length of the neck determine the character of the final product. Typically, there are two kinds of stills involved in the distillation process: the wash still and the spirit still.   The first is used to produce the first distillation, referred to as â€Å"low wines.†Ã‚   This product is distilled for the second time in the spirit still before it is collected as the strong distilled spirit.   This spirit is not useable, however.   Hence, it is diverted into a receiving tank.   The final product of the second distillation is not useable either.   But it is saved to be added to the next batch of low wines. The glass-fronted â€Å"spirit safe† is where the spirit is tested with a hydrometer as it leaves the pot stills.   In Scotland, this safe is heavily padlocked by the Customs & Excise to prevent any possibility of the distillery siphoning off the spirit in order to avoid the payment of legal duty on it. Following this formality, the final spirit is collected in the receiving tank.   It is now prepared to go into barrels for the next stage of the Scotch making process – maturation.   Scotch whiskey is normally stored in barrels that have been previously used.   It takes around three years at least to call it Scotch, however.   Maturation may take anything from three years to twenty years.   Before it is matured, the Scotch is simply referred to as spirit. During the process of maturation, around 2% of the spirit is lost each year due to evaporation.   Once the malt whiskey has been matured for the required time, it can be bottled and labeled.   However, if it is to be used as part of a blended whiskey, the master blender would â€Å"nose† each  whiskey to determine its characteristics and to ensure that the consistency of the specific blend is maintained. Blenders may include in the final blend as many as thirty or forty different malt and grain whiskeys.   The blender is also responsible for ensuring that a particular blend retains its consistency over a number of years.   For this reason, the blender’s nose must be skilled. Coloring is added at this point to the Scotch, and the drink is chill-filtered so as to remove the oils that cause cloudiness when ice is added.   The prepared whiskey, whether blended or not, is then transferred to the bottling plant where it is bottled using automated methods.   It is also noteworthy that some of the processes mentioned in the making of Scotch are now automated.   As an example, barley may be turned or â€Å"ploughed† with automatic paddles as opposed to manually during the grain germination process.   The chief fermentation and distillation processes, however, have largely remained unchanged in the last couple of hundred years. Bibliography 1.   Distillery Journey: Making Scotch Whiskey. (1998). Cocktail Times. Retrieved from http://www.cocktailtimes.com/distillery/making_scotch.shtml. (15 March 2007). 2. Making Scotch Whiskey: A Brief Explanation of the Traditional Method. (2005). Loch Lomond Distillers. Retrieved from http://www.lochlomonddistillery.com/making-scotch.htm. (15 March 2007).   

Materials, Tips, and Tools to Help you Learn French

Materials, Tips, and Tools to Help you Learn French Learning French is an ongoing and involved process. You cant learn how to speak French overnight, and you probably cant learn on your own, no matter how many books and CDs you buy. What you can do is use this free website to supplement your learning: to get another explanation of something you didnt understand, to get extra practice between classes, and to brush up on what you once learned but have now all but forgotten. Learn French Online Learn French at About.com offers hundreds of lessons and thousands of sound files to help you learn French. If you are just starting to learn French, begin with one of these: Learn French - hundreds of online French lessons, plus study tips and sound filesFrench e-course - Learn just the basics with this 7-day introductory email courseFrench for travelers - Learn greetings, numbers, food, and other practical vocabulary for a trip If you are looking for a particular French lesson, try my Find it! page.   Learn French Offline There are also plenty of offline tools that you can use to learn French: Beginning FrenchFrench audio tapes/CDsFrench dictionariesFrench for kidsFrench grammar booksFrench learning softwareFrench schools About Learning French Not sure yet whether you want to learn French? Keep reading: What is French? - Some facts and figuresWhy learn French - What is learning French good for?Learn French as an adult - Yes, it is possibleIs Spanish easier to learn than French? - Compare them and then decideWhat is the best way to learn French? - Figure yours out Practice your French Dont forget that you also need to practice the French you learn. Daily FrenchFrench practice ideasOvercoming speaking anxiety

Beowulf, an Epic Hero essays

Beowulf, an Epic Hero essays An epic hero is defined as a larger than life hero who embodies the values of a particular society. Commonly epic heroes have superior strength, have strong love for their people, are fearless of death, and are very ethical people. The epic poem Beowulf describes the most heroic man of the Anglo-Saxon times. The hero, Beowulf, is a seemingly invincible person with all the extraordinary traits required of an epic hero. Beowulf is a perfect example of an epic hero who is a representative of his time because of his super-human strength, his strong love for the people, his fearless of death, and his ethical personality including his strong moral characteristics common of his time. It is obvious that Beowulf has super-human strength because he kills Grendel with his own bare hands. Grendel had been terrorizing the Danes for twelve years and none of them could defeat Grenadel with weapons! During the battle with Grendel, Grendel notices Beowulfs extraordinary strength: [Grendel] Knew at once that nowhere on earth Had he met a man whose hands were harder; His mind was flooded with fear- but nothing could take his talons and himself from that tight Hard grip (p. 33, 433-437). To proclaim his victory and triumph over evil, Beowulf hangs an arm of Grendels, which he savagely ripped from the beast, from the ceiling. Later, Beowulf goes on to kill the Grendels mother, who is even more viscous than Grenadel. In the battle with Grendels mother there is yet another example of Beowulfs super-human strength when Beowulf lifts a huge, massive sword and kills Grendels mother with it. It is said that the sword was so massive that no ordinary man would have the strength to lift it. Beowulf also boasts of his strength many times throughout the poem. For example, in his argument with Unferth, But the truth is simple: No man swims in sea as I can, no strength is a match for mine (p. 28,...

Case study Example | Topics and Well Written Essays - 500 words - 63

Case Study Example Roys model of adaptation, the nursing process is a problem solving approach for data gathering, identifying needs of a person to adapt to the system, and selecting the best methods and implementing them with the individuals care plan and evaluating the care later on. This model will assist a nurse in the assessment of Eddie. A nurse would first be involved in assessment of Eddies behavior. This model would guide a nurse in the collection of data on Eddie, and see how likely he is to adapt to the system in each adaptive mode. The model would guide a nurse to identify both internal and external factors that or stimuli that influence Eddies adaptive behavior. A nurse would be able to identify the immediate stimuli that a person faces and guide them in planning their care. The nurse would be able to identify other stimuli that affect the existing ones and finally they would identify those factors that influence Eddie but are unclear. A nurse familiar with this model would be able to come up with appropriate nursing diagnosis, the nurse would be able to come up with statements that best describe the patients situation and that interpret the already gathered data about the Eddies adaptation status, including relevant stimuli and behavior. Roy’s model of adaptation has a great influence in guiding a nurse actions towards the care of an individual. This model would influence how a nurse would approach Eddie in promoting self concept. AS nurse will be able to understand what is needed in dealing with self concept. In the self concept mode a nurse would be able to assess how Eddie views himself in terms of his ability to meet his daily needs or goals and if he can assist his members. Eddie saw viewed himself as a liability as he had no work and could not get back to his old job and the pins in his legs prevented him from looking for a job. Eddie though he wished to visit his friend Joe he was not able to because his friend was hospitalized far away. Eddie had

An historical account of an ancient Greek city-state or colony Assignment

An historical account of an ancient Greek city-state or colony - Assignment Example The author draws heavily from the primary sources of information such as the Herodotus, Plutarch, and the Thucydides to explain the nature and structures of various Greek land engagements in the 500 century B.C. In essence, the author presents a formative domain in understanding the history of Western warfare. The map below is a representation of ancient Greece city states that had come into existence in the 500 century B.C. the map clearly shows the settlements in the ancient Greece and the surrounding natural features such as the seas and other natural landscapes. From the map, it can be observed that the Athens City is among the notable City-States that existed in the early 500 century B.C. and was surrounded by rival city states such as Thebes and Corinth. The author gives a critical overview of the birth of the Athens City State and cultural diversity. The author notes that Athens is located at latitude 37 58’ 20† N and longitude 23 43’ 9† on the Attica plains. At the heart of the Attica plain, there exists a range of hills (presently referred to as Tourko Vouni) that spread from the northeast to the south. The hills separate the Kephisos and ILissos valleys that are boards a spur to the south. The spur can be termed as the link to the Athens City states. It is worth noting that the highest point of Athens is known as Acropolis. From the book, it can be identified that Athens has experienced dramatic transformations since its existence. Currently, the city is occupied by people from diverse origins in terms of race, ethnic background and religious affiliations. As a result of the settlement of people from diverse origins, the city is characterized by a rich a dynamic culture. Different people have different cultural construction and, therefore, meeting of residents in a common place leads to cultural