ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by L C GuptaSubscribe to L C Gupta

Indian Securities Depository System

Unknowingly and unintentionally, the share depository system is adversely affecting millions of small investors and also hurting the equity market's growth by causing such investors to gradually withdraw from the market. This paper attempts to explain how this has come about and what corrective action is needed.

Return on Indian Equities, 1980-99

This study examines the long-term rates of return on a representative portfolio of 30 Indian companies of the BSE Sensex over 1980-99. It compares the rate of return over various holding periods and decomposes it into capital appreciation and dividend. The study finds that the only lasting effect on equity portfolio returns is that of growth in earnings per share, which latter have been growing since 1990 as a result of liberalisation.

What Ails the Indian Capital Market

The evidence presented in This paper suggests that an important factor underlying the withdrawal of retail investors from the capital market is the erosion of investors' confidence in Corporate India. The government has shown little seriousness in creating the necessary confidence by stricter regulation to ensure that Corporate India behaves more responsibly towards investors. On the contrary, some of the government's proposals, incorporated in the Companies Bill pending before parliament, are bound to reduce corporate managements' accountability to shareholders. Corporate managements' accountability to shareholders is the central problem.

Challenges before Securities and Exchange Board of India

Board of India L C Gupta In its critical assessment of the regulatory effectiveness of the Securities and Exchange Board of India, the author finds the stock market still plagued by price-rigging, opaqueness of trade and a ubiquitous sub-broker system. Even the guidelines designed to protect investors' interests fail in their objective. The SEBI can ensure effectiveness by instituting collective decision-making in its functioning and by insisting on better monitoring of corporate governance.

Long-Term Rates of Return on Industrial-Equities in India

Equities in India L C Gupta This study presents data on rates of return in India on investments in quoted equity shares. It shows both the 'portfolio rates of return on suck investment and the individual-share rates of return. The returns are overall returns, including dividends and capital appreciation, after adjusting for bonus and 'rights' shares issued. They have been computed for holding periods of various lengths, upto a maximum of 16 years.

Development Banking An Intimate View

a violation of the law of value. In any case, let us try to understand his reasoning. 'Does the Marxist theory of ground rent apply to the sphere of mining?' He thinks not, for "mining presents some obvious special features". The first of these is the non- renewability of the resources to be exploited. Mining capitalists therefore must be sure to put aside an amount sufficient to enable them to continue their activities, at the same rate of profit, when the mines they are working become exhausted. Thus, the mining capitalists devote part of their apparent gross profit (actually, this part is a cost) to exploration for new reserves, both in the area conceded to them and elsewhere. The second specific feature of mineral production is of a historical order. Mineral production appears and develops wth the development of captalism, whereas agricultural production pre-dated capitalism. Amin now puts forward a class-struggle-theory of mining rent. As the bourgeoisie of the Third World took shape as a class, and it embarked on the path of import substituting industrialisation, it demanded mining rent, and thus rent entered into the international price structure. Previously, when bourgeoisie was practically non-existent, and when imperialism was in alliance with the landlords in the Third World, there was no mining rent, but only ground rent. "In short, mining rent emerges because Algeria and Iran are industrialising themselves (even if only in a dependent way), and not vice versa"

Financing Patterns

Financing Patterns L C Gupta Report,on a Study of the Debt-Equity Ratio Norms by B K Madan; The Management Development Institute. New Delhi, 1978; pp x +

Financial Assets, Institutions and Markets

nationalism. As it is, the book holds out no conceptual ray of hope to the non-Buddhist Tamils and others, and no beam of guiding light to those Sri Lankans who today want to work to wards a national equilibrium of culture in a multi-lingual, multi-religious, raulti-communal society which, in the verbal declarations of all parties and groups, has accepted the socialist ideal as something worth striving for.

Professionalising Management of Business in India-Problems and Prospects

in India Problems and Prospects L C Gupta This paper has a three-fold task. Firstly, it argues, perhaps contrary to popular belief, that the most important requirement

Tandon Committee Revisited

L C Gupta The din and noise over the Tandon Study Group's suggestions having died down and some experience of implementing the suggestions having been gained, it is now an appropriate time to re-examine some of the important issues which seem to require further thinking.

Stock Market Liquidity How Much For Whom

For Whom?
L C Gupta J K Rohatgi This paper raises certain fundamental issues about the functioning of the stock market, with particular reference to the market for equities. It advocates an entirely new and more rational approach to the whole concept of stock market liquidity and suggests an empirical method for developing quantitative norms relating to the desirable levels of speculative transactions in securities.

Development Rebate, Capital - Intensity and Employment

Development rebate, it has been suggested, creates a tendency towards adoption of techniques of higher capital intensity and thus works against the objective of permitting employment. It has been con- tended, on this ground, that tax concessions linked to investment of capital are inappropriate in a labour surplus and capital scarce economy like ours.


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