India and Capital Account Convertibility: Some Facts

Whatever the apparent theoretical benefits of capital account convertibility, they have not yet been vindicated by the actual empirical evidence; rather, the experience of the countries in the developing world that have experimented with capital account convertibility has been that of increased market volatility and financial crises. Moreover, at least a part of the large inflows of capital into India are a consequence of the recessionary conditions elsewhere. The country’s macroeconomic fundamentals, though better than before, are not good enough to warrant long-lasting confidence from foreign investors. The reform process is not proceeding with adequate speed, banks are saddled with large volumes of non-performing assets, the financial system is not deep or liquid enough and the country ranks high in the list of corrupt nations. Once the conditions in the rest of the world improve, and the interest rate differentials between India and the rest of the world narrow further, Continue reading

Campaign Management Process

The very concept of a campaign in marketing is focused on a time bound effort to design a strategy for various objectives as per the client requirements. The business objectives which can be the drivers for a campaign are considering an effective launch for a range of products, follow-up and may be increase market share sometimes. The process of campaign management involves an understanding of what are the expected benefits of the campaign, budgeting and costing of the campaign while ensuring that all needful resources are met and finally evaluating the effect of the campaign on the target market. There could be various kinds of campaigns and depending on the objectives of the campaign the basic principle can vary while some core processes remain the same. Some campaigns perform more than one of the functions which may include product launch in the first stage and then go on to brand Continue reading

Indian banking system: Development banks: Small scale Industrial Development Bank of India (SIDBI)

The Small scale Industrial Development Bank of India (SIDBI) was set up in October 1989 under the Act of parliament as a wholly owned subsidiary of the IDBI. It is the central or apex or principal institution which oversees, co-ordinates and further strengthens various arrangements for providing financial and non-financial assistance to small-scale, tiny, and cottage industries. SIDBI objectives are: To initiate steps for technological up gradation and modernization of existing units To expand channels for marketing of SSI sector products in India and abroad To promote employment-oriented industries in semi-urban areas and to check migration of population to big cities. It operates two funds: Small Industries Development Fund and Small Industries Development Assistance Fund. The operation of the former and of National Equity Fund which were earlier looked by IDBI is now handled by the SIDBI. Its financial assistance is channeled through the existing credit delivery system comprising NSIC, Continue reading

Security Analysis Phase in Investement Portfolio Management

Security Analysis in Portfolio Management There are different types of securities are available to an investor for investment. In Indian stock exchanges shares of more than 7000 companies are listed. Traditionally, the securities were classified into ownership such as equity shares, preference shares, and debt as a debenture bonds etc. Recently companies to raise funds for their projects are issuing a number of new securities with innovative feature. Convertible debenture, discount bonds, Zero coupon bonds, Flexi bond, floating rate bond, etc. are some of these new securities. From these huge group of securities the investors has to choose those securities, which he considers worthwhile to be included in his investment portfolio. So for this detailed security analysis is most important. The aim of the security analysis in portfolio management is to find out intrinsic value of a security. The basic value is also called as the real value of a Continue reading

Incentive Types – Most Important Types of Incentive Plans

Incentives can be defined as monetary or non-monetary reward offered to the employees for contributing more efficiency. Incentive can be extra payment or something more than the regular salary or wage. Incentive acts as a very good stimulator or motivator because it encourages the employees to improve their efficiency level and reach the target. The two common types of incentives are: 1. Monetary or Financial Incentives The reward or incentive which can be calculated in terms of money is known as monetary incentive. These incentives are offered to employees who have more physiological, social and security need active in them. The common monetary incentives are: Pay and allowances. Regular increments in salary every year and grant of allowance act as good motivators. In some organizations pay hikes and allowances are directly linked with the performance of the employee. To get increment and allowance employees perform to their best ability. Profits Continue reading

Feasibility Analysis in System Development Process

Most organizations find it beneficial to use a set of steps, called a system development methodology, to develop and support their information system. Like many processes, the development of information system often follows a life cycle. The Systems Development Life Cycle (SDLC) is a common methodology for system development in many organizations, featuring various phases that mark the progress of the system analysis and design effort. Read More : System Development Life Cycle Analysis is the third phase of Systems Development Life Cycle (SDLC). During this phase, the analysis has several sub-phases which can be discussed as given below; The first is requirements determination. In this sub-phase, analysts work with users to determine the expectations of users from the proposed system. This sub-phase usually involves a careful study of current systems, manual or computerized that might be replaced or enhanced as part of this project. Next, the requirements are studied Continue reading