ASSIGNMENT FILE OF SEMINAR ON

IMPLICATIONS OF ICT ON BUSINESS EDUCATION

SUBMITTED TO: SUBMITTED BY:

PROF. NAVNEET KAUR AMRITPAL SINGH
ASSISTANT PROFESSOR B.COM(HONS) III
P.G. DEPT. OF COMMERCE 245564
MATA GUJRI COLLEGE SESSION- 2024 - 25
 What is Securities Market

Securities market is an economic institute within which takes place the sale and purchase
transactions of securities between subjects of the economy, on the basis of demand and
supply. Also we can say that securities market is a system of interconnection between all
participants (professional and nonprofessional) that provides effective conditions: to buy and
sell securities, and also
 to attract new capital by means of issuance new security (securitization of debt),
 to transfer real asset into financial asset,
 to invest money for short or long term periods with the aim of deriving profitability.
 commercial function (to derive profit from operation on this market)
 price determination (demand and supply balancing, the continuous process of prices
movements guarantees to state correct price for each security so the market corrects
mispriced securities)
 informative function (market provides all participants with market information about
participants and traded instruments) regulation function (securities market creates the
rules of trade, contention regulation, priorities determination)
 Recent Trend & Dev. in Indian Securities Market

Well-developed securities markets are the backbone of any financial system. Apart from
providing the medium for channelizing funds for investment purposes, they aid in pricing of
assets and serve as a barometer of the financial health of the economy.
Over a period, the Indian securities market has undergone remarkable changes and grown
exponentially, particularly in terms of resource mobilisation, intermediaries, the number of
listed stocks, market capitalisation, turnover and investor population.
The Recent Trends and Development in Indian Securities Market Since 1992 are as
following:
1. Corporate Securities Market: With the objectives of improving market efficiency,
enhancing transparency, preventing unfair trade practices and bringing the Indian market up
to international standards, a package to develop the securities market was introduced.
 The issuers complying with the eligibility criteria were allowed freedom to issue the
securities at market determined rates. The secondary market overcame the
geographical barriers by moving to screen based trading.
 Trades enjoyed counter-party guarantee. The trading cycle shortened to a day and
trades are settled within 2 working days, while all deferral products were banned.
Physical security certificates almost disappeared. A variety of derivative products
were permitted.

2. SEBI Act, 1992: It created a regulator (SEBI), empowered it adequately and assigned it
with the responsibility for
(a) Protecting the interests of investors in securities,
(b) Promoting the development of the securities market, and
(c) Regulating the securities market.
 Enactment of SEBI Act is the first attempt towards integrated regulation of the
securities market.

3. Screen Based Trading: Prior to setting up of NSE, the trading on stock exchanges in India
was based on an open outcry(objection) system. The system was inefficient and time
consuming because of its inability to provide immediate matching or recording of trades. In
order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line
fully automated screen based trading system (SBTS) on the CM segment on November 3,
1994.

4. Reduction of Trading Cycle: Earlier, the trading cycle for stocks, based on type of
securities, used to vary between 14 days to 30 days and the settlement involved another
fortnight.
 The Exchanges, however, continued to have different weekly trading cycles, which
enabled shifting of positions from one Exchange to another.
 It was made mandatory for all Exchanges to follow a uniform weekly trading cycle in
respect of scrips not under rolling settlement. In December 2001, all scrips were
moved to rolling settlement and the settlement period was reduced progressively from
T+5 to T+3 days.
 From April 2003 onwards, T+2 days settlement cycle is being followed.

5. Equity Derivatives Trading: In order to assist market participants in managing risks better
through hedging, speculation and arbitrage, SC(R) A was amended in 1995 to lift the ban on
options in securities. Trading in derivatives, however, took off in 2000 with index futures
after suitable legal and regulatory framework was put in place. The market presently offers
index futures, index options, single stock futures and single stock options.

6. Risk Management: Market integrity is the essence of any financial market. To pre-empt
market failures and protect investors, the regulator/exchanges have developed a
comprehensive risk management system, which is constantly monitored and upgraded. It
encompasses capital adequacy of members, adequate margin requirements, limits on
exposure and turnover, indemnity insurance, on-line position monitoring and automatic
disablement, etc. They also administer an efficient market surveillance system to curb
excessive volatility, detect and prevent price manipulations.
 To effectively address this issue, NSE introduced the concept of a novation, and set
up the first clearing corporation, viz. National Securities Clearing Corporation Ltd.
(NSCCL), which commenced operations in April 1996.
 The NSCCL assures the counterparty risk of each member and guarantees financial
settlement. Counterparty risk is guaranteed through a fine tuned risk management
system and an innovative method of on-line position monitoring and automatic
disablement. NSCCL established a Settlement Guarantee Fund (SGF). The SGF
 provides a cushion for any residual risk and operates like a self-insurance mechanism
wherein the members contribute to the fund. In the event of failure of a trading
member to meet his obligations, the fund is utilized to the extent required for
successful completion of the settlement. This has eliminated counterparty risk of
trading on the Exchange

7. Short Selling: Short selling is defined as selling a stock which the seller does not own at
the time of trade.
 Pursuant to the recommendations of the Secondary Market Advisory Committee
(SMAC) of SEBI and the decision of the SEBI Board, it was decided to permit all
classes of investors to short sell.
 It increases liquidity in the market, and makes price discovery more efficient. Besides,
it curbs manipulation of stocks as informed investors are able to go short on stocks
they feel are higher than fair value. This facility was available to non-institutional
investors. Vide a circular in February 2008; SEBI permitted all classes of investors,
viz., retail and institutional investors to short sell. It, however, does not permit naked
short sales and accordingly, requires participants to mandatorily honor their obligation
of delivering the securities at the time of settlement.

8. Cross Margining: An offsetting position where market participants are able to transfer
excess margin from one account to another account whose margin is under the
required maintenance margin. So a Reliance Future position at Rs. 880 (Lot size: 250) could
need a 20% margin, or Rs. 176×250 = Rs. 44,000 per lot. But if you have bought a put option
on Reliance at 900, then the downside is protected, so your margin requirements can be
brought down substantially. NSE will offset the two and ask for a lower margin, of say Rs.
15,000 per lot. This saves you cash.
Many trading members undertake transactions on both the cash and derivative segments of
an Exchange. They keep separate deposits with the exchange for taking positions in two
different segments.
 In order to improve the efficiency of the use of the margin capital by market
participants and as in initial step towards cross margining across cash and derivatives
markets SEBI allowed Cross Margining benefit in May 2008.
 For Cross margining the stock positions of the institutions in capital market segment
after confirmation by the custodian on T+1 day shall be compared with the stock
 futures position of the same institution in derivative segment based on the CP code of
the institution at the end of the day. The position shall be considered for cross
margining only if the position in the capital market segment off set the position in the
derivative segment.

9. Market Infrastructure: As part of the ongoing efforts to build debt market infrastructure,
two new systems, the Negotiated Dealing System (NDS) and the Clearing Corporation of
India Limited (CCIL) commenced operations on February 15, 2002.
 NDS facilitates screen based negotiated dealing for secondary market transactions in
government securities and money market instruments, online reporting of transactions
in the instruments available on the NDS and dissemination of trade information to the
market. Government Securities (including T-bills), call money, notice/term money,
repos in eligible securities, Commercial Papers and Certificate of Deposits are
available for negotiated dealing through NDS among the members.
 CCIL facilitates settlement of transactions in government securities (both outright and
repo) on Delivery versus Payment (DVP-II) basis which provides for settlement of
securities on gross basis and settlement of funds on net basis simultaneously. It acts as
a central counterparty for clearing and settlement of government securities
transactions done on NDS.

10. Research in Securities Market: In order to deepen the understanding and knowledge about
Indian capital market, and to assist in policy-making, SEBI has been promoting high quality
research in capital market. It has set up an in-house research department, which brings out
working papers on a regular basis. In collaboration with NCAER, SEBI brought out a
‘Survey of Indian Investors’, which estimates investor population in India and their
investment preferences. SEBI has also tied up with reputed national and international
academic and research institutions for conducting research studies/projects on various issues
related to the capital market.
The objective of this initiative is to foster research, which can support and facilitate-
(a) stock exchanges to better design market micro-structure,
(b) participants to frame their strategies in the market place,
(c) regulators to frame regulations,
(d) policy makers to formulate policies, and
(e) expand the horizon of knowledge. The Initiative has received tremendous response.
11. Testing and Certification:
 A testing and certification mechanism that has become extremely popular and is
sought after by the candidates as well as employers is unique on-line testing and
certification programme called National Stock Exchange’s Certification in Financial
Markets (NCFM).
 It is an on-line fully automated nation-wide testing and certification system where the
entire process from generation of question paper, testing, assessing, scores reporting
and certifying is fully automated - there is absolutely no scope for human
intervention. It allows tremendous flexibility in terms of testing centers, dates and
timing and provides easy accessibility and convenience to candidates as he can be
tested at any time and from any location.
 It tests practical knowledge and skills, that are required to operate in financial
markets, in a very secure and unbiased manner, and certifies personnel who have a
proper understanding of the market and business and skills to service different
constituents of the market.

12. Demutualisation: Historically, stock exchanges were owned, controlled and managed by
the brokers. In case of disputes, integrity of the stock exchange suffered. NSE, however, was
set up with a pure demutualised governance structure, having ownership, management and
trading with three different sets of people. Currently, all the stock exchanges in India have a
demutualised set up.

13. Dematerialisation: As discussed before, the old settlement system was inefficient due to
(i) the time lag for settlement and
(ii) the physical movement of paper-based securities.
 To obviate these problems, the Depositories Act, 1996 was passed to provide for the
establishment of depositories in securities with the objective of ensuring free
transferability of securities with speed and accuracy.
 There are two depositories in India, viz. NSDL and CDSL. They have been set up to
provide instantaneous electronic transfer of securities.
14. Clearing Corporation: The anonymous electronic order book ushered in by the NSE did
not permit members to assess credit risk of the counter-party and thus necessitated some
innovation in this area.
 To address this concern, NSE had set up the first clearing corporation, viz. National
Securities Clearing Corporation Ltd. (NSCCL), which commenced its operations in
April 1996.

15. Investor Protection: In order to protect the interest of the investors and promote
awareness, the Central Government (Ministry of Corporate Affairs 1) established the Investor
Education and Protection Fund (IEPF) in October 2001.
 With the similar objectives, the Exchanges and SEBI also maintain investor
protection funds to take care of investor claims. SEBI and the stock exchanges have
also set up investor grievance / service cells for redress of investor grievance. All
these agencies and investor associations also organise investor education and
awareness programmes.

16. Globalization: Indian companies have been permitted to raise resources overseas through
issue of ADRs, GDRs etc. Further, FIIs have been permitted to invest in all types of
securities, including government securities and tap the domestic market. The investments by
FIIs enjoy full capital account convertibility. They can invest in a company under portfolio
investment route upto 24% of the paid up capital of the company. The Indian stock exchanges
have been permitted to set up trading terminals abroad. The trading platform of Indian
exchanges is now accessible through the Internet from anywhere in the world. RBI permitted
two-way fungibility for ADRs / GDRs, which means that the investors (foreign institutional
or domestic) who hold ADRs / GDRs can cancel them with the depository and sell the
underlying shares in the market.

17. Launch of India VIX 2: Volatility index is a measure of market’s expectation of volatility
over the near term. It measures the amount by which an underlying Index is expected to
fluctuate in the near term, based on the order book of the underlying index options. India’s
first volatility index, India VIX (based on the Nifty 50 Index Option prices) was launched by
NSE in April 2008.
18. Direct Market Access: In April 2008, SEBI allowed the direct market access (DMA)
facility to the institutional investors. DMA allows brokers to offer their respective clients,
direct access to the Exchange trading system through the broker’s infrastructure without
manual intervention by the broker.

19. Launch of Securities Lending & Borrowing Scheme: In April 2008, the Securities
Lending & Borrowing mechanism was allowed. It allows market participants to take short
positions effectively with less cost.

20. Launch of Currency Futures: On August 29, 2008, NSE launched trading in currency
future contracts in the USD-INR pair for the first time in India. Trading in other currency
pairs like Euro – INR, Pound Sterling – INR and Japanese Yen was further made available
for trading in March 2010.

21. Launch of Interest Rate Futures: On August 31, 2009, futures on interest rate were
launched on the National Stock Exchange.

22. ASBA: Application Supported by Blocked Amount (ASBA) is a major primary market
reform. It enables investors to apply for IPOs / FPOs and rights issues without making a
payment. Instead, the amount is blocked in investors’ own account and only an amount
proportionate to the shares allotted goes out when allotment is finalized.

23. Issue of Capital and Disclosure Requirements (ICDR) Regulations 2009: In August 2009,
the SEBI issued Issue of Capital and Disclosure Requirements (ICDR) Regulations 2009,
replacing the Disclosure and Investor Protection (DIP) Guidelines 2000. ICDR Regulations
2009 would govern all disclosure norms regarding issue of securities.
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to NAVNEET KAUR, [ASSISTANT

PROFESSOR], for their invaluable guidance and support throughout the course of this
project. Their expertise and insight greatly contributed to the success of this work. I would
also like to thank my family, and friends for their encouragement and assistance.

Additionally, I am thankful to [MATA GUJRI COLLEGE] for providing the necessary

resources and a conducive environment for the completion of this project.

Finally, I extend my appreciation to everyone who directly or indirectly helped make this
project a success.
 DECLARATION

I hereby declare that the project titled " IMPLICATIONS OF ICT ON BUSINESS EDUCATION" is
my original work, conducted under the guidance of [PROF. NAVNEET KAUR] at [MATA
GUJRI COLLEGE, FATEHGARH SAHIB].

This project has not been submitted for any other degree or award, and all sources of
information have been duly acknowledged.

Date: 16 October 2024

Name: AMRITPAL SINGH

Signature: AMRITPAL SINGH

 INDEX

S.NO CONTENT PAGE NO.

1 INTRODUCTION 5
2 ICT AND CHANGING NATURE OF BUSINESS 6
EDUCATION
3 ENHANCED LEARNING METHODS 7

4 GLOBAL COLLABORATION AND 8

LEARNING
5 ICT IN BUSINESS RESEARCH AND 9
ANALYSIS
6 ACCESS TO ONLINE LEARNING AND 10
RESOURCES
7 CHALLENGE OF ICT IN BUSINESS 11
EDUCATION
8 ROLE OF ICT IN BUSINESS EDUCATION 12
TRAINING
9 ICT AND ENTREPRENEURIAL 13
SKILL DEVELOPMENT
10 EMERGING TECHNOLOGIES SHAPING 14,15
BUSINESS EDUCATION
11 ETHICAL CONSIDERATIONS AND 16,17
CHALLENGES OF ICT IN BUSINESS
EDUCATION
12 CASE STUDIES OF ICT INTEGRATION IN 18, 19
BUSINESS SCHOOLS
13 RECOMMENDATION FOR 20
EDUCATIONAL INSTITUTIONS
14 CONCLUSION 21

BIBLIOGRAPHY

 https://www.wikipedia.org/
 CONCLUSION

The recent trends and developments in the security market highlight a significant shift
towards advanced technologies, such as artificial intelligence, machine learning, and cloud-
based solutions. As cyber threats evolve, organizations are prioritizing proactive security
measures, including real-time threat detection and response capabilities. Additionally, the
growing importance of data privacy regulations is driving investment in compliance-focused
security solutions. Overall, the security market is increasingly characterized by a holistic
approach that integrates physical and cybersecurity, emphasizing collaboration, resilience,
and adaptive strategies to safeguard against emerging threats.