New Issue Market

1. INTRODUCTION :- 

                It refers to the set-up which helps the industry to raise the funds by issuing different types of securities. These securities are issued directly to the investors (both individuals as well as institutional) through the mechanism called primary market or new issue market. The securities take birth in this market.

2. FUNCTIONS :-

                The main function of new issue market is to facilitate transfer resources from savers to the users. It plays an important role in mobilizing the funds from the savers and transferring them to the borrowers. The main function of new issue market can be divided into three service functions:

i) Origination : It refers to the work of investigation, analysis and processing of new project proposals. Origination starts before an issue is actually floated in the market. It includes a careful study of the technical, economic and financial viability to ensure the soundness of the project and provides advisory services.

ii) Underwriting : It is an agreement whereby the underwriter promises to subscribe to a specified number of shares or debentures in the event of public not subscribing to the issue. Thus it is a guarantee for the marketability of shares. Underwriters may be institutional and non-institutional.

iii) Distribution : It is the function of sale of securities to ultimate investors. Brokers and agents who maintain regular and direct contract with the ultimate investors, perform this service.

3. METHODS OF FLOATING NEW ISSUES :-

                The various methods which are used in the floating of securities in the new issue market are: Public issues Offer for sale Placement Right issues

a) Public issues or Initial public offering (IPO) The issuing company directly offers to the general public/institutions a fixed number of securities at a stated price or price band through a document called prospectus. This is the most common method followed by companies to raise capital through issue of the securities.

b) Offer of sale It consists in outright sale of securities through the intermediary of issue houses or share brokers. It consists of two stages: the first stage is a direct sale by the issuing company to the issue house and brokers at an agreed price. In the second stage, the intermediaries resell the above securities to the ultimate investors. The issue houses purchase the securities at a negotiated price and resell at a higher price. The difference in the purchase and sale price is called turn or spread.

c) Right Issue When a listed company proposes to issue securities to its existing shareholders, whose names appear in the register of members on record date, in the proportion to their existing holding, through an offer document, such issues are called ‘Right Issue’. This mode of raising capital is the best suited when the dilution of controlling interest is not intended.

d) Private placement It involves sale of securities to a limited number of sophisticated investors such as financial institutions, mutual funds, venture capital funds, banks, and so on. It refers to sale of equity or equity related instruments of an unlisted company or sale of debentures of a listed or unlisted company.

e) Preferential Issue An issue of equity by a listed company to selected investors at a price which may or may not be related to the prevailing market price is referred to as preferential allotment in the Indian capital market. In India preferential allotment is given mainly to promoters or friendly investors to ward off the threat of takeover.

f) E-IPO The companies are now allowed to issue capital to the public through the on-line system of the stock exchanges. For making such on-line issues, the companies should comply with the provisions contained in Chapter 11A of SEBI( Disclosure and Investor Protection) Guidelines, 2000.

g) Green Shoe Option It denotes ‘an option of allocating shares in excess of the shares included in the public issue’. SEBI guidelines allow the issuing company to accept over subscriptions, subject to a ceiling, say 15% of the offer made to public. It is extensively used in international IPOs to stabilized the post-listing price of new issued shares.

h) Pricing of Issues The companies eligible to make public issue can freely price their equity shares or any security convertible at a later date into equity shares as per SEBI guidelines 2000. The issuer can fix-up issue price in consultation of with merchant banker, subject to giving disclosures of the parameters which have considered while deciding the issue price.

i) Fixed Price Process The price which has been fixed by the company for its securities before issue is brought to the market. The price at which the securities are offered/allotted is known in advance to the investor. Demand for the securities offered is known only after the closure of the issue. Payment is made at the time of subscription whereas refund is given after allotment.

j) Book-Building/Price Band It is a process used for marketing a public offer of equity shares of a company. Book building is a process wherein the issue price of a security is determined by the demand and supply forces in the capital market The Price at which securities will be allotted is not known in advance to the investor. Only an indicative price range is known. (Also called price band and it should not be more than 20% of the floor price).

k) Lock-in Period Lock-in indicates the freeze on transfer of shares. SEBI (Disclosure and Investor Protection) Guidelines, 2000 have stipulated lock-in requirements as to specified percentage of shares subscribed by promoters with a view to avoid unscrupulous floating of securities and to ensure the promoters involved in the issue continue have controlling a interest in the company, which can be subjected to legal compliances.

l) Offer Documents An offer document means ‘prospectus’ in case of public issue or an offer for sale and ‘letter of offer’ in case of right issue, which is required to be filed with the Registrar of Companies (ROC) and Stock Exchanges. An offer document covers all the relevant information to help an investor in making wise investment decisions.

m) Kinds of Offer Documents Draft Prospectus Draft Letter of Offer Prospectus Abridged Prospectus Shelf Prospectus Information Memorandum Red-Herring Prospectus

n) Listing of Securities Listing means admission of the securities to dealings on a recognized stock exchange. The securities may be of any public limited company, central or state government, quasi governmental and other financial institutions/corporations, municipalities etc.

Capital Market In India

The Role of Capital Market in The Economic Development of Anation : -

*INTRODUCTION :~ Capital market is the market for leading and borrowing of medium and long term funds.~ The demand for long-term funds comes from industry, trade, agriculture and government (central and state).~ The supply for funds comes from individual savers, corporate savings, banks, insurance companies, specialized financial institutions and government.~ Capital market has three different categories:-i) Government securities market:^ It is also called Gilt-edged market.^ It deals in interest bearing and dated government securities.^ This market is regulated by the RBI. ii) Corporate Debt Market This market deals in :^ Binds floated by public sector units, nationalized banks and financial institutions.^ Debentures floated by corporates.iii) The Equity Market:^ Corporate raise preference / equity share capital in this market.^ These shares can be sold / purchased and thus provide liquidity to markets.*SIGNIFICANCE:~ A sound and efficient capital market is extremely vital for the economic development of a nation.~ So, the significance of capital market has increased.~ The following points clearly bring out the role and significance of capital market in India. i)CAPITAL FORMATION:~ Capital market encourages capital formation as it ensures speedy economic development. The process of capital formation includes collection of saving effective mobilization of these savings for productive investment.~ Thus three distinctive inter-related activities i.e. collection of savings, mobilization of savings and investment lead to capital formation in the country.~ The volume of capital formation depend s on the efficiency and intensity with which these activities are carried on. ii) ECONOMIC GROWTH:~ Capital market plays a vital role in the growth and development of an economy by channelizing funds in developmental and productive investments.~ The financial intermediaries channel funds into those investments that are more important for economic development.iii) INDUSTRIAL DEVELOPMENT:~ Capital market promotes industrial development and motivates industrial entrepreneurship.~ It provides cheap, adequate and diversified funds for industrial purposes such as expansion, modernization, technological up gradation, establishment of new units, etc.~ It also provides services like provision of underwriting facilities, participation in equity capital, credit-rating, consultancy services, etc.vi) MODERNISATION AND REHABILITATION OF INDUSTRIES:~ Capital markets also contribute towards modernization and rehabilitation of industries.

 ~ Developmental financial institutions like IDBI, IFCI, ICICI, etc provide finance to industries to adopt modern techniques and new upgraded machinery.~ They also participate in the equity capital of industries. v) RIVIVAL OF SICK UNITS:~ Commercial and financial institutions provide adequate funds to viable sick unit to overcome their industrial sickness.~ Bank and FIs may also write off a part of the loan or re-schedule the loan to offer payment flexibility to weak units.vi) TECHNICAL ASSISTANCE:~ The financial intermediaries in the capital market stimulate industrial entrepreneurship by providing technical and advisory services like preparation of feasibility reports, identifying growth potential, and training entrepreneurs in project management.~ This promotes industrial investment and leads to economic development.vii) DEVELOPMENT OF BACKWARD AREAS:~ Capital markets provide funds for projects in backward area and facilitate their economic development.~ Long-term funds are also provided for development projects in backward / rural areas.

viii) EMPLOYMENT GENERATION:~ Capital markets provide Direct Employment in capital market related activities like stock markets, banks and financial institutions.~ Indirect Employment is provided in all the sectors of the economy through various funds disbursed for developmental projects. ix) FOREIGN CAPITAL:~ Capital markets make it possible to generate foreign capital by enabling Indian firms to raise capital from overseas market through bonds and other securities.~ Such foreign exchange funds have a great impact on the economic development of the nation.~ Moreover, foreign direct investments (FDIs) also bring in foreign capital as well as foreign technology that leads to greater economic development. x) DEVELOPMENT OF STOCK MARKETS:~ Capital markets lead to development of stock markets by encouraging investors to invest in shares and debentures and to trade in stocks.~ FIIs are also allowed to deal in Indian stock exchange. xi) FINANCIAL INSTITUTIONS:~ Financial institutions play a major role in capital markets.

~ They provide medium / long term loan to industrial and other sectors and also undertake project feasibility studies and surveys.~ They refinance commercial banks and rediscount their bills of exchange.~ They provide merchant banking services.~ They subscribe to equity capital of the firms.xii) INVESTMENT OPPORTUNITY:~ Capital markets provide various alternative sources of investment to the people.~ People can invest in shares and debentures of public companies and earn good returns. xiii) INVESTMENT IN INDUSTRIAL SECURITIES:~ Secondary market in securities encourage investors to invest in industrial securities by providing facilities for continuous, regular and ready buying and selling of these securities.~ This facilitates industries to raise substantial funds from various sectors of the economy.xiv) RELIABLE GUIDE TO PERFORMANCE:~ Capital market serves as a reliable guide to the performance of corporate institutions.

~ It values companies accurately and thus promotes efficiency.~ This leads to efficient resource allocation and economic development.*CONCLUSION:~ Thus we can say that capital markets play a crucial role in the economic development of a nation.~ A sound and efficient capital market is one of the most instrumental factors in the development of a nation

Indian Financial System

1. Indian Financial System,

2. Financial System Existence of a well organized financial system Promotes the well being and standard of living of the people of a country Money and monetary assets Mobilize the saving Promotes investment

3. Financial System Financial System of any country consists of financial markets, financial intermediation and financial instruments or financial products Suppliers of funds (Mainly households) Flow of financial services Incomes , and financial claims Seekers of funds (Mainly business firms and government) Flow of funds (savings)

4. Indian Financial System Non- Organized Organized Money lenders Local bankers Traders Landlords Pawn brokers Chit Funds Regulators Financial Institutions Financial Markets Financial services

5. Evolution of Financial System Barter Money Lender Nidhi's/Chit Funds Indigenous Banking Cooperative Movement Societies Banks Joint-Stock Banks

6. Consolidation Commercial Banks Nationalization Investment Banks Development Financial Institutions Investment/Insurance Companies Stock Exchanges Market Operations Specialized Financial Institutions Merchant Banking Universal Banking

7. Financial System Savers Lenders Households Foreign Sectors Investors Borrowers Corporate Sector Govt. Sector Un-organized Sector Economy Interrelation--Financial system & Economy

8. Organized Indian Financial System Money Market Instrument Capital Market Instrument Forex Market Capital Market Money Market Credit Market Primary Market Financial Instruments Financial Markets Financial Intermediaries Secondary Market Regulators

9. Financial Markets Mechanism which allows people to trade Affected by forces of supply and demand Process used In Finance, Financial markets facilitates

10. Why Capital Markets Exist Capital markets facilitate the transfer of capital ( i.e. financial) assets from one owner to another. They provide liquidity. Liquidity refers to how easily an asset can be transferred without loss of value. A side benefit of capital markets is that the transaction price provides a measure of the value of the asset.

11. Role of Capital Markets Mobilization of Savings & acceleration of Capital Formation Promotion of Industrial Growth Raising of long term Capital Ready & Continuous Markets Proper Channelization of Funds Provision of a variety of Services

12. Indian Capital Market - Historical perspective Stock Market was for a privileged few Archaic systems - Out cry method Lack of Transparency - High tones costs No use of Technology Outdated banking system Volumes - less than Rs. 300 cr per day No settlement guarantee mechanism - High risks

13. Indian Capital markets - Chronology 1994-Equity Trading commences on NSE 1995-All Trading goes Electronic 1996- Depository comes in to existence 1999- FIIs Participation- Globalization 2000- over 80% trades in Demat form 2001- Major Stocks move to Rolling Sett 2003- T+2 settlements in all stocks 2003 - Demutualisation of Exchanges

14. Capital Markets - Reforms Each scam has brought in reforms - 1992 / 2001 Screen based Trading through NSE Capital adequacy norms stipulated Dematerialization of Shares - risks of fraudulent paper eliminated Entry of Foreign Investors Investor awareness programs Rolling settlements Inter-action between banking and exchanges

15. Reforms / Initiatives post 2000 Corporatisation of exchange memberships Banning of Badla / ALBM Introduction of Derivative products - Index / Stock Futures & Options Reforms/Changes in the margining system STP - electronic contracts Margin Lending Securities Lending

16. MARKET STRUCTURE (JULY 31, 2005) 22 Stock Exchanges, Over 10000 Electronic Terminals at over 400 locations all over India. 9108 Stock Brokers and 14582 Sub brokers 9644 Listed Companies 2 Depositories and 483 Depository Participants 128 Merchant Bankers, 59 Underwriters 34 Debenture Trustees, 96 Portfolio Managers 83 Registrars & Transfer Agents, 59 Bankers to Issue 4 Credit Rating Agencies

17. Indian Capital Market Market Instruments Intermediaries Primary Secondary Equity Debt Hybrid Regulator Brokers Investment Bankers Stock Exchanges Underwriters SEBI Players Corporate Intermediaries CRA Banks/FI FDI /FII Individual

18. Stock Exchanges in INDIA Mangalore Stock Exchange Hyderabad Stock Exchange Uttar Pradesh Stock Exchange Coimbatore Stock Exchange Cochin Stock Exchange Bangalore Stock Exchange Saurashtra Kutch Stock Exchange Pune Stock Exchange National Stock Exchange OTC Exchange of India Calcutta Stock Exchange Inter-connected Stock Exchange (NEW) Madras Stock Exchange Bombay Stock Exchange Madhya Pradesh Stock Exchange Vadodara Stock Exchange The Ahmedabad Stock Exchange Magadh Stock Exchange Gauhati Stock Exchange Bhubaneswar Stock Exchange Jaipur Stock Exchange Delhi Stock Exchange Assoc Ludhiana Stock Exchange

19. The role of the stock exchange Raising capital for businesses Mobilizing savings for investment Facilitate company growth Redistribution of wealth

20. The role of the stock exchange Corporate governance Creates investment opportunities for small investors Government raises capital for development projects Barometer of the economy

21. Growth Pattern of the Indian Stock Market Sl.No. As on 31st December 1946 1961 1971 1975 1980 1985 1991 1995 1 No. of Stock Exchanges 7 7 8 8 9 14 20 22 2 No. of Listed Cos. 1125 1203 1599 1552 2265 4344 6229 8593 3 No. of Stock Issues of Listed Cos. 1506 2111 2838 3230 3697 6174 8967 11784 4 Capital of Listed Cos. (Cr. Rs.) 270 753 1812 2614 3973 9723 32041 59583 5 Market value of Capital of Listed Cos. (Cr. Rs.) 971 1292 2675 3273 6750 25302 110279 478121 6 Capital per Listed Cos. (4/2) (Lakh Rs.) 24 63 113 168 175 224 514 693 7 Market Value of Capital per Listed Cos. (Lakh Rs.) (5/2) 86 107 167 211 298 582 1770 5564 8 Appreciated value of Capital per Listed Cos. (Lak Rs.) 358 170 148 126 170 260 344 803

22. Capital Market Instruments ADR / GDR Equity Debt Equity Shares Preference Shares Debentures Zero coupon bonds Deep Discount Bonds Hybrid

23. Factors contributing to growth of Indian Capital Market Establishment of Development banks & Industrial financial institution. Legislative measures Growing public confidence Increasing awareness of investment opportunities

24. Factors contributing to growth of Indian Capital Market Growth of underwriting business Setting up of SEBI Mutual Funds Credit Rating Agencies

25. Indian Capital Market deficiencies Lack of transparency Physical settlement Variety of manipulative practices Institutional deficiencies Insider trading

26. Money Market Market for short-term money and financial assets that are near substitutes for money. Short-Term means generally period upto one year and near substitutes to money is used to denote any financial asset which can be quickly converted into money with minimum transaction cost

27. Money Market It is a place for Large Institutions and government to manage their short-term cash needs It is a subsection of the Fixed Income Market It specializes in very short-term debt securities They are also called as Cash Investments

28. Defects of Money Market Lack of Integration Lack of Rational Interest Rates structure Absence of an organized bill market Shortage of funds in the Money Market Seasonal Stringency of funds and fluctuations in Interest rates Inadequate banking facilities

29. Money Market Instruments Treasury Bills Commercial Paper Certificate of Deposit Money Market Mutual Funds Repo Market

30. Segment Issuer Instruments Government Central Government Zero Coupon Bonds, Coupon Bearing Bonds, Capital Index Bonds, Treasury Bills. Public Sector Government Agencies / Statutory Bodies Govt. Guaranteed Bonds, Debentures Public Sector Units PSU Bonds, Debenture, Commercial Paper Private Corporate Debentures, Bonds, Commercial Paper, Floating Rate Bonds, Zero Coupon Bonds, Inter-Corporate Deposits Banks Certificate of Deposits, Bonds Financial Institutions Certificate of Deposits, Bonds

31. Financial Regulators

32. Financial Regulators Securities and Exchange Board of India (SEBI) Reserve Bank of India Ministry of Finance

33. Security Exchange Board of India (SEBI) Securities and Exchange Board of India (SEBI) was first established in the year 1988 Its a non-statutory body for regulating the securities market It became an autonomous body in 1992

34. Functions Of SEBI Regulates Capital Market. Checks Trading of securities. Checks the malpractices in securities market.

35. Functions Of SEBI It enhances investor's knowledge on market by providing education. It regulates the stockbrokers and sub-brokers. To promote Research and Investigation

36. Objectives of SEBI It tries to develop the securities market. Promotes Investors Interest. Makes rules and regulations for the securities market.

37. The Recent Initiatives Undertaken Sole Control on Brokers For Underwriters For Share Prices For Mutual Funds

38. Reserve Bank of India Established on April 1, 1935 in accordance with the provisions of the RBI Act, 1934. The Central Office of the Reserve Bank has been in Mumbai. It acts as the apex monetary authority of the country.

39. Functions Of RBI Monetary Authority: Formulation and Implementation of monetary policies. Maintaining price stability and ensuring adequate flow of credit to the Productive sectors. Issuer of currency: Issues and exchanges or destroys currency and coins. Provide the public adequate quantity of supplies of currency notes and coins.

40. Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations Maintain public confidence, protect depositors' interest and provide cost-effective banking services. Authority On Foreign Exchange: Manages the Foreign Exchange Management Act, 1999. Facilitate external trade, payment, promote orderly development and maintenance of foreign exchange market. Functions Of RBI

41. Developmental role: Performs a wide range of promotional functions to support national objectives. Related Functions: Banker to the Government: performs merchant banking function for the central and the state governments. Maintains banking accounts of all scheduled banks. Functions Of RBI

42. Monetary Measures (a) Bank Rate: The Bank Rate was kept unchanged at 6.0 per cent. (b) Reverse Repo Rate: The Repo rate is around 7 per cent and Reverse repo rate is around 6.10 per cent. (c) Cash Reserve Ratio: The cash reserve ratio (CRR) of scheduled banks is currently at 5.0 per cent.

43. Reforms in the Financial System Pre-reforms period Steps taken Objectives Conclusion

44. Pre-Reforms Period The period from the mid 1960s to the early 1990s. Characterized by: Administered interest rates Industrial licensing and controls Dominant public sector Limited competition High capital-output ratio

45. Pre-Reforms Period Banks and financial institutions acted as a deposit agencies. Price discovery process was prevented. Government failed to generate resources for investment and public services. Till 90s it was closed, highly regulated, and segmented system.

46. Steps Taken Economic reforms initiated in June 1991. The committee appointed under the chairmanship of M Narasimham. He submitted report with all the recommendations Government liberalized the various sectors in the economy. Reform of the public sector and tax system.

47. Objectives Reorientation of the economy Macro economic stability To Increase competitive efficiency in the operations To remove structural rigidities and inefficiencies To attain a balance between the goals of financial stability & integrated & efficient markets

48. Recommendations Reduce the level of state ownership in banking Lift restrictions on foreign ownership of banks Spur the development of the corporate-bond market Strengthen legal protections

49. Recommendations Deregulate the insurance industry Drop proposed limits on pension reforms Increase consumer ownership of mutual-fund products Introduce a gold deposit scheme

50. Recommendations Speed up the development of electronic payments. Separate the RBI's regulatory and central-bank functions Lift the remaining capital account controls Phase out statutory priority lending and restrictions on asset allocation

51. Conclusion The financial system is fairly integrated, stable, efficient. Weaknesses need to be addressed. The reforms have been more capital centric in nature. Foreign capital flows and foreign exchange reserves have increased but absorption of foreign capital is low.

52. Thank you

Total Quality Management (TQM)

Total Quality Management / TQM is an integrative philosophy of management for continuously improving the quality of products and processes.

TQM is based on the premise that the quality of products and processes is the responsibility of everyone involved with the creation or consumption of the products or services which are offered by an organization, requiring the involvement of management, workforce, suppliers, and customers, to meet or exceed customer expectations.

Cua, McKone, and Schroeder (2001) identified nine common TQM practices:

Cross-functional product design

Process management

Supplier quality management

Customer involvement

Information and feedback

Committed leadership

Strategic planning

Cross-functional training

Employee involvement

Total Quality Management is formally defined in BS 7850-1, paragraph 3.1, as management philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization.

Total quality management can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement. It uses strategy, data, effective communications and involvement of all level employees to integrate the quality discipline into the culture and activities of the organization.

•Customer-focused. The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement—training employees, integrating quality into the design process, upgrading computers or software, or buying new measuring tools—the customer determines whether the efforts were worthwhile or not.

•Total employee involvement. All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when empowerment has occurred, and management has provided the proper environment. High-performance work systems integrate continuous improvement efforts with normal business operations. Self-managed work teams are one form of empowerment.

•Process-centered. A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (again, either internal or external). The steps required to carry out the process are defined, and performance measures are continuously monitored in order to detect unexpected variations in the process.

•Integrated system. Although an organization may consist of many different functional specialties often organized into vertically structured departments, it is the horizontal processes interconnecting these functions that are the focus of TQM. ◦Micro-processes add up to larger processes, and all processes aggregate into the business processes required for defining and implementing strategy. Everyone must understand the vision, mission, and guiding principles as well as the quality policies, objectives, and critical processes of the organization. Business performance must be monitored and communicated continuously. ◦An integrated business system may be modeled after the Baldrige National Quality Program criteria and/or incorporate the ISO 9000 standards. Every organization has a unique work culture, and it is virtually impossible to achieve excellence in its products and services unless a good quality culture has been fostered where everyone works for the quality. Thus, an integrated system connects business improvement elements in an attempt to continually improve and exceed the expectations of customers, employees, and all other stakeholders.

•Strategic and systematic approach. A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission, and goals. This process, called strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a core component.

•Continual improvement. A major thrust of TQM is continual process improvement. Continual improvement drives an organization to be both analytic and creative in finding ways to become more competitive and more effective at meeting stakeholder requirement and expectations.

• Fact-based decision making. In order to know how well an organization is performing, data on performance measures are necessary. TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history.

•Communications. During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. Communications involve strategies, method, and timeliness.

These elements are considered so essential to TQM that many organizations define them, in some format, as a set of core values and principles on which the organization is to operate.

Check out Implementing Total Quality Management to learn how each of these essential Primary Elements come together to form the foundation of a successful TQM implementation.

ISO 9001

ISO 9001:2008 Quality management systems — Requirements is a document of approximately 30 pages which is available from the national standards organization in each country. It is supplemented by two other standards: ISO 9000:2005 Quality management systems — Fundamentals and vocabulary and ISO 9004:2009 Managing for the sustained success of an organization — A quality management approach. Only ISO 9001 is directly audited against for third party assessment purposes. The other two standards are supplementary and contain deeper information on how to sustain and improve quality management systems; they are therefore not used directly during third party assessment. Outline contents for ISO 9001 are as follows:

iv: Foreword

v to vii: Section 0 Intro

1 to 14: Requirements

Section 1: Scope

Section 2: Normative Reference

Section 3: Terms and definitions (specific to ISO 9001, not specified in ISO 9000)

Section 4: Quality Management System

Section 5: Management Responsibility

Section 6: Resource Management

Section 7: Product Realization

Section 8: Measurement, analysis and improvement

15 to 22: Tables of Correspondence between ISO 9001 and other standards

23: Bibliography

Before the certification body can issue or renew a certificate, the auditor must be satisfied that the company being assessed has implemented the requirements of sections 4 to 8. Sections 1 to 3 are not directly audited against, but because they provide context and definitions for the rest of the standard, their contents must be taken into account.

The standard specifies that the organization shall issue and maintain the following six documented procedures:

Control of Documents (4.2.3)

Control of Records (4.2.4)

Internal Audits (8.2.2)

Control of Nonconforming Product / Service (8.3)

Corrective Action (8.5.2)

Preventive Action (8.5.3)

In addition to these procedures, ISO 9001:2008 requires the organization to document any other procedures required for its effective operation. The standard also requires the organisation to issue and communicate a documented quality policy, a Quality Manual (which may or may not include the documented procedures) and numerous records, as specified throughout the standard.

===Numbering

4.2 Documentation requirements

5 Management responsibility

5.1 Management commitment

5.2 Customer focus

5.3 Quality policy

5.4 Planning

5.5 Responsibility, authority and communication

5.6 Management review

6 Resource management

6.1 Provision of resources

6.2 Human resources

6.3 Infrastructure

6.4 Work environment

7 Product realization

7.1 Planning of product realization

7.2 Customer-related processes

7.3 Design and development

7.4 Purchasing

7.5 Production and service provision

7.6 Control of monitoring and measuring equipment

8 Measurement, analysis and improvement

8.1 General

8.2 Monitoring and measurement

8.3 Control of nonconforming product

8.4 Analysis of data

8.5 Improvement

Cipla Ltd Announces Firm Offer To Cipla Medpro South Africa Ltd To Acquire 100% Equity Stake

Cipla Ltd announced that its Board of Directors at its meeting held February 27, 2013,have decided to make and have made a firm offer to the Board of Directors of Cipla Medpro South Africa Ltd to acquire (either through itself or through its nominated subsidiary) 100% of the ordinary shares of Medpro at a price of ZAR 10.00 per share, and to settle all outstanding share options therein. Based on Medpro’s current shares and share options outstanding, the total consideration payable by Cipla or its nominated subsidiary would be approximately $512 million. The Board of Directors of Medpro have recommended to its shareholders to vote in favour of the offer. Also, the independent expert appointed by the Independent board of Medpro is of the opinion the offer is fair and reasonable to the Medpro shareholders. 

Money Market In India

                     

 The Indian money market is "a market for short-term and Long term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money." It is diversified and has evolved through many stages, from the conventional platform of treasury bills and call money to commercial paper, certificates of deposit, repos, FRAs and IRS more recently.

The Indian money market consists of diverse sub-markets, each dealing in a particular type of short-term credit. The money market fulfills the borrowing and investment requirements of providers and users of short-term funds, and balances the demand for and supply of short-term funds by providing an equilibrium mechanism. It also serves as a focal point for the Central Bank's intervention in the market.

The Indian money market consists of the unorganized sector: moneylenders, indigenous bankers, chit funds; organized sector: Reserve Bank of India, private banks, public sector banks, development banks and other Non Banking Financial Companies(NBFCs) such as Life Insurance Corporation of India (LIC), Unit Trust of India (UTI), the International Finance Corporation, IDBI, and the co-operative sector.

·                  Call money market :-

·                                            The call money market deals in short term finance repayable on demand, with a maturity period varying from one day to 14 days. S.K. Muranjan commented that call loans in India are provided to the bill market, rendered between banks, and given for the purpose of dealing in the bullion market and stock exchanges. Commercial banks, both Indian and foreign, co-operative banks, Discount and Finance House of India Ltd.(DFHI), Securities trading corporation of India (STCI) participate as both lenders and borrowers and Life Insurance Corporation of India (LIC), Unit Trust of India(UTI), National Bank for Agriculture and Rural Development (NABARD)can participate only as lenders. The interest rate paid on call money loans, known as the call rate, is highly volatile. It is the most sensitive section of the money market and the changes in the demand for and supply of call loans are promptly reflected in call rates. There are now two call rates in India: the Interbank call rate ‘and the lending rate of DFHI. The ceilings on the call rate and inter-bank term money rate were dropped, with effect from May 1, 1989. The Indian call money market has been transformed into a pure inter-bank market during 2006–07.  The major call money markets are in Mumbai, Kolkata, Delhi, Chennai, Ahmadabad.

         Treasury bill market  :-

                             Treasury bills are instrument of short-term borrowing by the Government of India, issued as promissory notes under discount. The interest received on them is the discount which is the difference between the price at which they are issued and their redemption value. They have assured yield and negligible risk of default. Under one classification, treasury bills are categorized as ad hoc, tap and auction bills and under another classification it is classified on the maturity period like 91-days TBs, 182-days TBs, 364-days TBs and two types of 14-days TBs. In the recent times (2002–03, 2003–04), the Reserve Bank of India has been issuing only 91-day and 364-day treasury bills. the auction format of 91-day treasury bill has

changed from uniform price to multiple price to encourage more responsible bidding from the market players. the bills are two kinds- Adhoc and regular. the adhoc bills are issued for investment by the state governments, semi government departments and foreign central banks for temporary investment. they are not sold to banks and general public. The treasury bills sold to the public and banks are called regular treasury bills. they are freely marketable. commercial bank buy entire quantity of such bills issued on tender . they are bought and sold on discount basis.

         Ready forward contract (Repos) :-

                                   Repo is an abbreviation for Repurchase agreement, which involves a simultaneous "sale and purchase" agreement. When banks have any shortage of funds, they can borrow it from Reserve Bank of India or from other banks. The rate at which the RBI lends money to commercial banks is called repo rate, a short term for repurchase agreement. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.

·                Money market mutual funds :-

·                           Money market mutual funds invest money in specifically, high-quality and very short maturity-based money market instruments. The RBI has approved the establishment of very few such funds in India. In 1997, only one MMMF was in operation, and that too with very small amount of capital.

         Reserve Bank of India :-

                      The influence of the Reserve Bank of India's power over the Indian money market is confined almost exclusively to the organised banking structure.It is also considered to be the biggest regulator in the markets. There are certain rates and data which are released at regular intervals which have a huge impact on all the financial markets in INDIA. The unorganized sector, which consists mostly of indigenous bankers and non-banking financial companies, although occupying an important position in the money market have not been properly integrated with the rest of the money market