Capital Markets

AN ANCIENT INSTITUTION

Centuries ago, back in the 14th century, before our time, banking institutions were non-existent. Instead, trading relied on the barter system. The origins of bartering can be traced back to Mesopotamian tribes around 6000 BC. These ancient societies exchanged goods like food, weapons, and spices through barter. India, in the 12th century, developed its own form of currency known as “hundi,” which has a rich history dating back at least to that period. Hundi, a financial instrument, was crafted in Medieval India for facilitating trade and credit transactions. As time progressed, there arose a demand for coin conversion and money exchange, leading to the establishment of the first capital markets in the early 14th and 15th centuries, notably in Antwerp, Belgium, a hub of international trade. This initial marketplace primarily dealt in promissory notes and bonds. The earliest known bank, the Bank of State George in Italy, was founded in 1407. India, boasting a capital market history of nearly two centuries, stands as one of Asia’s oldest. The American Civil War of 1861–1865 catalyzed the organization of the capital market, with a group of brokers congregating in Bombay’s Dalal Street in 1874 to commence securities trading, spurred by opportunities resulting from the ban on American cotton imports. So, what exactly is a capital market? It’s a platform where investors deploy surplus funds in potentially lucrative ventures, expecting substantial returns, and where financial securities are traded between buyers and sellers. Though still fundamentally a form of trade, the modern capital market operates in a more sophisticated manner compared to its counterparts in the 12th and 14th centuries

Our Practise

The capital market is the barometer of any country’s economy and provides a mechanism for capital formation. Across the world, there was a transformation in financial intermediation from a credit based financial system to a capital market based system, which was partly due to a shift in financial policies from financial repression (credit controls and other modes of primary sector promotion) to financial liberalization. This led to an increasing significance of capital markets in the allocation of financial resources. Our Firm has positioned itself as a leading advisor in the Asian Markets. Our Capital Market team advises on matters relating to IPO (Initial Public Offerings), SME IPOs, FPO (Follow-on Public Issues), QIPs (Qualified Institutional Placements), OFS (Offer for Sale) with listing on Indian courses such as NSE, BSE and MCX. Takeover of listed companies, Buyback of Shares, Delisting and Domestic Debt/Bond Issues such as Non-Convertible Debentures (NCDs) for companies spread across various sectors. Our Firm has the experience and expertise to undertake legal diligence and prepare offer documents for public offers in compliance with Indian regulations.

Our Firm has represented issuer companies, promoters, merchant bankers and underwriters in various public offerings. Our Firm assists issuers and merchant bankers in dealing with queries raised by the regulators, to enable smooth completion of the public issue and listing of shares on the courses. Our Firm also liaises with nomads and overseas stock exchanges for international offerings. In addition to the above, our Firm offers advice on investigations and proceedings initiated by SEBI for violation of securities market regulations and non-compliances and represents clients before SEBI officials and SAT.

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Banking and Finance
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204-207, Krishna Chambers
59, New Marine Lines,
Mumbai 400020, India

Tel: +91 (22) 4096 1000
Fax: +91 (22) 4096 1010

Email: info@rajaniassociates.net

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