* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project
BUILDING AFRICAN FINANCIAL MARKETS Country’s eco-system & its impact on the development of its exchange Nomura Research Institute Financial Technologies India September 2015 Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. 1 About Nomura Research Institute Nomura Research Institute Limited is a leading provider of consulting service & system solutions, founded in 1965. Headquartered in Tokyo, NRI provides innovative, cross-asset, front-end financial consultancy and IT solutions for investment banks, asset managers, banks and insurance providers. The company has been listed on the Japan Stock Exchange since 2001 and has a current market cap of over USD 8.8 billion (JPY 1055.25 billion) Consecutively for four years ranked in top 10 by the American Banker FinTech100 Nomura Research Institute Financial Technologies India Private Limited is a wholly owned subsidiary of NRI Group Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Leading and Transforming Capital Markets NRI is the backbone of capital market in Japan. We support significant part of securities processing and management at various financial firms. Not only financial solutions but also NRI proposes opinions to regulatory offices and capital markets’ participants as a thought leader. NRI’s solutions have been chosen by 50 ~70% of the Japanese capital markets’ participants Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. NRI’s solutions are processing and supporting about 80% NRI solutions are managing about 50% of the Japanese mutual funds of Tokyo Stock Exchange’s trading volume. (T-STAR & BESTWAY) (STAR& I-STAR) Theme of the presentation This presentation is divided 3 phases. Phase I Phase II Phase III The impact of Macro Economic Policy on Market Micro Structure. Gap Analysis of few sample African Countries Prescription to bridge the Gaps. Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Market Micro Structure Macro Economic Policy Efficient transmission mechanism Market microstructure studies the process by which investors' latent demands Market microstructure studies the process are ultimately translated into by which investors' latent demands are prices and volumes. “Market microstructure is the study of the process and outcomes of exchanging assets under explicit trading rules.” ultimately translated into prices and volumes -- Maureen O’Hara, former President of the American Finance Association Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Market Micro Structure Market microstructure studies the process by which investors' latent demands are ultimately translated into prices and volumes. Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Interlinkage between policy measures and capital market Fiscal measures Executive measures Prudential measures Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Instruments Types Market Association Liquidity Exchanges Volume Clearing Entities Service providers IMPACTS Exchange rate policy measures Regulatory measures IMPACTS Monetary measures Market measures Regulatory Body Listings Transparency Buy Side Firm Participation Sell Side Firm Hedging Risk Technology Information Economic Development Greater macro-economic stability More stable financial sector Better developed manufacturing and service sectors Increased productivity and capital growth Lower unemployment rates with higher real wage growth Micro-economic effects Macro-economic effects Valuable effects of Developed Capital Markets Easier and cheaper access to long-term capital Flexible financing for enterprises Improved governance structures Higher research & development power Increased mergers & acquisition power Increased “entrepreneurial spirit” Wealth creation for private investors Poverty reduction A reliable, efficient, liquid and safe capital market is essential to provide African companies with an additional access to finance Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Levers for development and effective functioning of Capital Market • The regulator and securities enforcement, • Adequacy of judicial system, • Accounting and auditing standards, • Corporate Governance (CG), For effective functioning and development of capital market key constituents required are: • Efficient fund transfer system, • Bankruptcy and insolvency law, • Political and macroeconomic stability, • Active and well developed domestic investor base; • Electronic trading and settlement infrastructure; • Real-time availability of market information; and • Transparency (including accounting, auditing, corporate governance, etc.) Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Regulation Common Securities Regulator with explicit authority Modern Legal Framework Effective Enforcement Accounting rules and principles aligned to global standards Settlement guarantee mechanism with appropriate risk Adopt market-based due management framework diligence system and risk-based capital Free Trade in Securities Tax Measures to Facilitate Access to Global Capital Markets Deeper and Broader Domestic Markets Innovative Research Improving Investor Base & Information Based Securities Sound Governance with Creating Greater Opportunity Proportionate, Principles - Strong Market Integrity Enhanced Regulatory Efficiency Building an Efficient Capital Market Ecosystem for Africa Developing a sound institutional investor base Financial Literacy Modernizing market infrastructure KYC obligation on FI’s Effective Disclosure framework Competitive Capital Markets Increased Investment Employment Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Income Prosperity Theme of the presentation Phase II Gap Analysis of few sample African Countries Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Methodology for selection of Market Systems We have created a case analysis of 9 market systems which includes 1 Developed market and 8 markets in different stages of development; and one of such market is a Financial Centre / Tax Haven country. South Africa Egypt Kenya Nigeria Angola Ethiopia Ghana Morocco Mauritius Assessment of the above-mentioned countries is on the following parameters: Regulatory & Policy Environment Political Environment & Development Framework Financial Inclusion Capital Markets Products Available Thereafter, a few structural and regulatory gaps have been identified which can be resolved through policy enablers, thus opening the floodgates for development and growth For this purpose, we have considered the South African market system as a benchmark since South Africa is the most developed market in Africa Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. State of the World – South Africa Parameter Description Regulatory & Policy Environment National Treasury revised its budget deficit target for 2015-16 to 3.9% of GDP from 3.6%. Treasury still expects the debt/GDP ratio to rise in the medium term to 47.6% of GDP from 46.2% in 2014-15 Easing of exchange controls on domestic investors, institutional investors and larger allowances for individuals. Exchange restrictions can be eased for non-residents as well. South Africa has tax-treaties with many countries and investors enjoy reduction in withholding taxes due to such tax-treaties The Rand is the signalling/pegging currency for many South African nations Multi-party state; Very stable – but concerns on the nationalisation of mines and its effect may pose a challenge in political stability thus leading to negative impact on capital inflows National Development Plan implemented with emphasis on structural reforms in Public Private Partnerships, consistent monetary policy, relaxation of trade barriers and promoting conducive investment environment Political Environment & Development Framework Financial Inclusion IMF GlobalFindex – 54% of adults formally banked; 98% of SME are banked (as of 2012) Unique “twin-peaks” regulatory regime; significantly high equity capitalisation-to-GDP ratio; co-location services, data centre services and lowest latency connectivity Assess migration to T+2 settlement system for bonds & equity from present T+3 Bond market predominantly OTC; Qualified CCP status – only country in Africa to be awarded QCCP Well developed commodity derivative markets and warehousing infrastructure Equity segment – equities, warrants & exchange-traded instruments, ETFs Derivatives segment – equity & equity-linked, commodities, currency and interest rates. Interest rate segment also trades spot products Capital Markets Products Available Gaps Liquidity predominated by extraction companies and agri-commodities – needs to broad-base to attract other sectors as well Encourage Public Private Partnerships for introduction of FMIs, SME platform; capital markets outreach and capacity building Copyright © 2015 Nomura Research Institute, Ltd. Futures market sizeable – Options market relatively smaller – illiquidity a major concern for option writers All rights reserved. Need for structural reforms for introduction of Trade Data Repository and Designated Swap Dealers State of the World – Nigeria Parameter Description Regulatory & Policy Environment CBN’s budget deficit target for 2015-16 is 0.8% versus 1. 2% last year – revision desired at current oil prices. Significant borrowing strength as external debt is only around 11% of GDP. CBN operates a managed floating exchange rate regime; currency may be further devalued owing to oil price Foreign ownership allowed except oil companies & defense – approval laws apply on mines, banks, insurance etc Political Environment & Development Framework Multi-party state; Generally stable with exception of terrorist activities in certain parts of country “Vision 20:2020” aims at addressing constraints to growth, competitiveness, structural transformations and creating conducive environment that enables growth and development Financial Inclusion IMF GlobalFindex – 30% of adults formally banked (as of 2012) Equity market 3rd largest in Africa by market capitalisation – aims to achieve USD1tn in market cap FX Forwards not really liquid (T+2/T+Tenor settlement) & Options are not allowed – hedging positions are entered offshore due to lack of domestic legal and contractual frameworks T-Bills and bonds are very liquid with PD & market-maker participation; very few corporate & muni bonds - illiquid market; State government and supranational bonds very popular Popular destination for issuance of Euro-bond and Dollar-bonds; however, very high transaction cost market –brokerage plus SEC levy, stamp duty & VAT – detrimental for launching new products, SBLO & short-selling Capital Markets Products Available Gaps Equity segment – equities, warrants, Exchange Traded Funds, REITs FX – only spot; Forwards not liquid; Options not allowed Rates – normal as well as Shari'áh; traded OTC as well as on exchange Secondary market – illiquid – high transaction cost is a deterrent – amendments necessary for the uniformity and reduction Derivatives – no exchange traded, FX relatively illiquid; Restructuring of the commodity markets; corporate bond markets revival Policy level encouragement for the Public Private Partnership in development of FMIs, products, capacity building etc. Strengthening of Copyright © 2015 Nomura Research Institute, Ltd. infrastructure for combatting terrorism financing and AML All rightsregulatory reserved. No CCP – need for structural reforms for introduction of CCP & Trade Data Repository State of the World – Egypt Parameter Description Regulatory & Policy Environment CBE revised budget deficit target for 2015-16 at 11.5% of GDP from 12%. Treasury still expects the debt/GDP ratio to rise in the medium term to 47.6% of GDP from 46.2% in 2014-15 Exchange controls tightened on account of prevention of FX speculation; restrictions imposed on any bank’s FX positions – long & short – may hamper dynamic risk management Currency depreciated by CBE on account of EUR weakening; further depreciation expected due to large external imbalances Political Environment & Development Framework Multi-party state; Transitional state; “Egypt: Vision 2030” aims at achieving average GDP growth of 7% y-o-y, reducing inflation within 3-5% from 9-10%, lowering unemployment to 5%, easing fiscal deficit to 5% of GDP Financial Inclusion IMF GlobalFindex – 10% of adults formally banked (as of 2012) Capital Markets Equity market 2nd largest in Africa by market capitalisation FX Forwards are restricted unless approved by CBE & Options are banned – both poses significant risk for bank T-Bills and bonds auctioned only through PDs, but not incentivised with market making schemes; Euro-bonds & Dollar-bonds released only to local banks & FIIs; Sovereign bonds market moderately liquid– mostly HTM portfolio; very few corporate bonds & illiquid market “Egyptian Exchange Proposed Strategy 2013-2017” identifies structural weaknesses, legislative rigidity, a dearth of market instruments, modest liquidity and a weak secondary bond market Products Available Secondary market – highly illiquid – trading often limited to select stocks representing bulk of market capitalisation; turnover ratios also very low; corporate bond market almost non-existent – activity is also impeded by payment and settlement systems; FMIs to adopt international best practices Scope for policy reforms and incentives for increasing role of private sector in financial institutions, markets and instruments Copyright © 2015no. Nomura Researchbrokerages Institute, Ltd. – consolidation to lead to capital infusion & bigger market participation – liquidity through prop trading Large of small All rights reserved. No CCP – need for structural reforms for introduction of CCP & Trade Data Repository Gaps Equity segment – equities, warrants FX – only spot; Forwards halted; Options not permitted Commodity – only spot; policy guidelines for derivatives – no markets as yet State of the World – Kenya Parameter Regulatory & Policy Environment Description CBK’s budget deficit target for 2015-16 is 7.3% of GDP. CBK operates a managed floating exchange rate regime; accumulating FX reserve against short-term shocks, but the Shilling likely to remain under pressure as a result of a stronger USD and weaker tourism & exports Repatriation allowed freely with nominal withholding tax Political Environment & Development Framework Multi-party state; Stable with exception of terrorist activities – leading to severe impact on tourism “Vision 2030” aims at addressing constraints to growth, competitiveness, structural transformations and to help mitigate the impact of potential exogenous shocks Financial Inclusion IMF GlobalFindex – 42% of adults formally banked; 88% of SME are banked (as of 2012) Markets are the largest in East Africa; equities and bond market mostly mature Capital Markets Master Plan (2014-23) outlines strategy for short-term & long-term growth – including new products, Shari'ah products, self-listing, abolishing caps on foreign portfolio investment, implementation of GEMS SME platform for medium/small companies T-Bills are illiquid but bonds are relatively liquid; very few corporate bonds & illiquid market Part of the regional integration through cross listing at East & Southern Africa based exchanges Equity segment – equities; Exchange Traded Funds & REITs (to be launched) FX – Forwards liquid; Options allowed but moderately liquidity Rates – normal as well as Shari'áh; traded OTC as well as on exchange Derivatives – OTC & exchange traded Capital Markets Products Available Gaps Secondary bond market – illiquid and corporate bond market almost non-existent Multiple supervisors for financial markets – amendments for consolidation & formation of Super Regulator New products need to be developed and introduced including Shari'ah compliant products Copyright © 2015 Nomura Research Institute, Ltd. reserved. Commodity derivatives market along with the warehousing infrastructure needs to be developed All rights No CCP – need for structural reforms for introduction of CCP & Trade Data Repository State of the World – Ghana Parameter Description Economic growth slowed markedly in 2014 Bank of Ghana’s (BoG) main policy objective is to ensure price stability, which is determined by the government’s inflation target. Sharp currency depreciation pushed inflation to well above the target range by end 2014 when it reached 17.0% y/y. Expected downward trend inflation may result in policy easing in H215. Ghana maintains a managed floating exchange rate regime. Ghana’s fiscal strategy is based on its three-year Medium Term Development Plans, which have been developed using the Ghana Shared Growth and Development Agenda II, (2014-2017). Constitutional democracy; Ghana remains one of Africa’s most stable democratic states following several successful and peaceful transitions in power. Economy highly dependent on Cocoa production and export In the industrial space, investment into roads, rail, electricity, renewable energy and telecoms has been planned. IMF Global Findex – 29% of adults formally banked; 82% of SME are banked (as of 2012) Capital markets have a moribund corporate debt market, though the government bond market is more active Capital Markets Foreign investors in listed stocks and all fixed income instruments with an original tenor of three years or more can remit capital, profits and related income freely. Interest on government bonds is exempt from withholding tax. Products Available Equity, Treasury Bills, Treasury Notes, Treasury Bonds Regulatory & Policy Environment Political Environment Development Framework Financial Inclusion Gaps Secondary markets – illiquid; corporate bond, commodity derivatives, FX derivatives market – non-existent Inadequate financial literacy; Scope for policy reforms and incentives for increasing role of private sector in financial institutions, markets, instruments and Copyright © 2015 Nomura Research Institute, Ltd. demutualisation of exchanges All rights reserved. Commodity exchange yet to begin its operation – likely to commence in June 2016. State of the World – Morocco Parameter Description Fiscal consolidation remains on track with the budget deficit falling to 5% of GDP in 2014 against 5.5% in 2013. It should narrow slightly further in 2015 The main objective of the Bank Al Maghrib’s (BAM) monetary policy is to ensure price stability. To that effect, the BAM adopted a multicriteria approach as a framework for assessing inflationary risks. Morocco’s fiscal policy is enshrined in the country’s annual budget law. The fiscal deficit declined in 2014 to 4.9% of GDP, down from 5.2% of GDP in 2013, reaching the authorities’ objective. Exchange controls are being administered by The Foreign Exchange Office Parliamentary constitutional monarchy; Following the constitutional amendments of July 2011, the prime minister is selected from the party that receives the most votes in elections, rather than chosen by the king. Political Environment Development Framework Morocco’s Mission 2030 initiative is in the process of being prepared and is at the stage of scenario planning, according to the Higher Planning Commission (HCP). The Government's strategic priorities mirror the principles, changes, and actions prescribed by the new Constitution. Financial Inclusion IMF Global Findex – 39% of adults formally banked; 86% of SME are banked (as of 2012) Morocco currently has five outstanding Eurobonds, the USD750mn 2042 and the USD1.5bn 2022, both issued in December 2012, the EUR1.0bn 2020 issued in 2010, the EUR1.0bn 2024 issued in 2014, and the rarely traded EUR500mn 2017, issued in 2007. Equity Bond, Corporate bond, commodity derivatives, FX derivatives market – non-existent incentives for increasing role of private sector in financial institutions, markets, instruments and demutualisation of exchanges; financial inclusion; capacity building etc Regulatory & Policy Environment Capital Markets Products Available Gaps Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Scope for policy reforms and State of the World – Ethiopia Parameter Regulatory & Policy Environment Description Political Environment Development Framework Financial Inclusion Capital Markets Products Available Gaps Economic growth amongst the highest in Africa – 10% p.a. over past decade Objectives of the National Bank of Ethiopia’s (NBE) monetary policy is the maintenance of price and exchange rate stability; has a history of currency devaluations, with four devaluations since 2009. Also, has a history of high inflation though tight monetary policy has succeeded in reducing it to single digit. Local market is characterised by a large current account deficit and low FX reserves. Fiscal Policy - largely driven by The Growth and Transformation Plan (GTP). objective of being a middle-income country by 2025. Federal Republic type of Govt.; Ethiopia has a very active political environment though it stabilised after the 2005 elections, which was marred by post-election violence. Long-term development framework is underpinned by GTP, which is a five year ongoing development plan with the aim to improve growth and preserve macroeconomic stability. In the industrial space, investment into roads, rail, electricity, renewable energy and telecoms has been planned. Global Findex – 22% have account (bank/mobile); 14% formal savings; 7% have formal borrowing Issued its maiden Eurobond worth USD1bn at the end of 2014 - earmarked for infrastructure spending At present has no Capital Market to transact stocks (equity) and bonds (debt instruments) in secondary markets. strong indication for the establishment of stock market in Ethiopia is the recent privatization of public enterprises, where the government’s Privatization Commodity spot markets Equity – no products available yet FX – interbank market exists Equity, corporate bond, commodity derivatives, FX derivatives market – non-existent Lack of adequate financial literacy; Copyright © 2015 Nomura Research Institute, Ltd. Scope for development of equity and debt market instruments in secondary market; All rightsreserved. Ranks relatively low at Mo Ibrahim Index of African Governance at 32 out of 52. State of the World – Angola Parameter Description Economy depends heavily on Oil; accounts for over 98% of total exports – low oil prices in 2015 a concern. Inflation prospects are clouded by the depreciation pressure on the currency as a result of low oil prices Fiscal Policy - main source of revenues remains oil though there are attempts to diversify the revenues stream National Bank of Angola manages and supervises exchange controls. Despite growing discontent about poverty, unemployment and corruption, there is a political stability. Political Environment Development Framework Angola is still recovering from its 27-year civil war with the government gradually rebuilding infrastructure. In 2012, the Govt. adopted a medium-term National Development Plan (2013-2017), which focuses on support for trade by developing basic infrastructure, poverty reduction, promoting entrepreneurship and economic diversification, and better access to education (World Bank). Financial Inclusion IMF Global Findex – 39% of adults formally banked; 86% of SME are banked (as of 2012) Angola plans to start the Angola Stock Exchange trading in 2016. Capital Markets BODIVA (Angola Securities and Debt Stock Exchange, in English) received the secondary public debt market and it is expected to start the corporate debt market by 2015 Products Available Govt. and corporate bonds Regulatory & Policy Environment Gaps Ranks quite low at Mo Ibrahim Index of African Governance at 44 out of 52; Copyright 2015 Nomura Research Institute, Ltd. © The economy highly dependent on oil exports; All rights reserved. Angola yet to commence stock and debt instrument trading; yet to develop FX market State of the World – Mauritius Parameter Regulatory & Policy Environment Political Environment Development Framework Financial Inclusion Capital Markets Products Available Gaps Description Economy continues to disappoint amid still weak demand from Europe. BoM primary goals are to maintain price stability and promote orderly and balanced economic development. In the implementation of its monetary policy, the BoM relies on a ‘hybrid inflation-targeting’ approach. BoM operates a managed-float regime, intervening in the foreign exchange rate market intermittently. Annual budget is formulated on a medium-term expenditure framework. The three-year framework envisages a gradual narrowing in the fiscal deficit from an estimated 3.5% of GDP in 2013 to 2.5% by 2016. Republic Govt.; Mauritius ranks as among Africa’s most stable and vibrant democracies and has topped the rankings of the Ibrahim Index of African Governance for the past few years. Also, known for its shifting political landscape. Economic Reconstruction and Competitiveness Programme which aims to reduce vulnerability to Europe by diversifying the economy. IMF Global Findex – 80% of adults formally banked; 97% of SME are banked (as of 2012) FX Forwards – moderately liquid, Options are illiquid; FX Swap markets are growing Bonds - fairly liquid primary issuance market; liquidity in secondary market remains a challenge; demand for corporate bonds growing Commodity derivative markets exist – underlying markets do not exist (market paradox!) Equity, Treasury Bills, Treasury Bonds, Corporate Bonds, Commodity Futures, Currency Futures Financial derivatives non existent; Secondary markets – illiquid No explicit deposit insurance scheme – no public safety net; though generally strong rule of law, legal proceedings can take an extended Copyright © 2015 Nomura Research Institute, Ltd. period All rights reserved.of time to complete Scope for policy level initiatives for development of underlying as well as derivative markets Summary of Gaps • Liquidity : Not Broad base in some country and in some not there. • Government Security Market: in primary market , needs to put effort to develop secondary market • Needs to develop credit market and corporate bond market • Commodity derivatives market along with the warehousing infrastructure needs to be developed 1 2 3 • Encourage Public Private Partnerships for introduction of FMIs, SME platform; capital markets outreach & capacity building • No CCP – need for structural reforms for introduction of CCP & Trade Data Repository • Large no. of small brokerages – need consolidation to lead to capital infusion & bigger market participation 6 7 8 Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. • Need proper regulation and control for Risk management Products 4 • More financial and regulatory reforms required…and also integration of regulatory reforms across the continent . 9 5 • Enhance Financial Inclusion 10 Theme of the presentation Phase III Prescription to bridge the Gaps. Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Bridging the Gap – The Way Forward Regulatory agencies to develop a STRATEGY ROADMAP keeping in mind the policy, resources and economic needs A suitable roadmap should include at minimum: Design an appropriate regulatory framework aligning market segments with aspirations of the regional infrastructure, resources and economic growth needs. Setting up of a suitable policy and regulatory framework for setting up of the exchange, corporate governance regime, capitalisation, its rules-by laws-regulations, risk management framework, etc. Designing appropriate and suitable enablers for functional supervision of OTC spot as well as derivative markets Availability of suitable derivative contracts encompassing different products for the purpose of effective price signalling and price risk management. Suitable changes in regulations/policies in migrating markets from shorter-end contracts to longer horizon contracts. Setting up of a suitable clearing, settlement and delivery regime for both the spot and the derivative markets (if applicable). Aligning exchange operations with that of warehousing and delivery infrastructure operators. Suitable business development and outreach strategy to reach out to all the regional stakeholders to make spot & derivative exchange a widely participated price discovery platform. And finally, a robust financial inclusion programme jumpstarts the development of a market system and in the long-run guarantees its success. Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Cause-Effect Linkages & Sequences – Robust accounting, auditing and tax collection systems Efficient debt management & optimal debt issuance policies High confidence in the judicial system Reliable disclosure system Optimal reserve management structure, fledging monetary policy framework & sound bank supervision Comprehensive regulatory & supervisory framework Optimal trading, settlement custody & registrar systems Efficient and effective regulation Complete equitization process Effective Regulation Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. Regular distribution of Government Securities in the primary market Vibrant Repo market Robust interbank market & even distribution of banking liquidity Issue of all duration papers within structured primary market Many listed companies Active and sizable Derivative market Efficient secondary market of Govt securities High confidence in issuers & high risk premium Incentives available for financing in the regulated capital market Negligible counterparty credit risk Liquid market and effective price discovery Developed Capital Markets (Money, Govt Debt, Corporate/Subnational debt, Equity, etc.) Coherent structure design of the financial industry at MOF, Central Bank and Market Regulator Sufficient financial statistics and information sharing among policymakers Adequate technical (and financial) resources Policy, Ecosystem & Capital Markets Coherent research with wide coverage Competitive domestic production and strong export Effective monetary policies Substantial medium- and long-term risk capital raising Well-traded and reliable yield curve More and more IPOs & fresh listings Efficient transmission mechanism Availability of long-term Investment instruments Effective and prudent fiscal policies Efficient reallocation of resources in the economy Growing foreign investment and foreign reserve Contact Name Dr. Chiragra Chakrabarty Designation Chief Executive Officer Financial Consultancy & Technology Tel: +91 98214 02036 Email [email protected] Address 401, 4th Floor, Gladdiola Building, Plot No.5, Hanuman Road, Vile Parle (East) Mumbai – 400 057, INDIA http://www.nrifintech.com/ Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved. http://fis.nri.co.jp/en/index.html www.nrifintech.com Copyright © 2015 Nomura Research Institute, Ltd. All rights reserved.