The rise of the Indian stock market Li Daogu analyzes the unknown secrets behind it

Mondo Entertainment Updated on 2024-01-30

As the second most populous country in the world, India's economic potential has been in the spotlight. In recent years, the rise of India** has attracted widespread attention and research. In this article, we will analyze the reasons for India's prosperity from many aspects, such as institutions, policies and regulations, such as the unknown secrets behind the **.

First of all, we would like to focus on the registration system implemented in India**. Since the introduction of the registration system in 1992, India has experienced a continuous period. This system stipulates that only companies that meet the requirements can be listed in India**, which ensures the quality of listed companies and provides a reliable guarantee for investors. Driven by the registration system, India** has successfully attracted a large number of high-quality companies to go public, further improving the confidence and stability of the market.

It is worth mentioning that the implementation of the registration system was not achieved overnight, but after 10 years of exploration and improvement. In the first 10 years, there was no significant rally in India, but after 10 years, it began to rise sharply. This shows that it will take some time for the registration system to operate effectively, but once it is established, its importance and impetus are obvious.

In addition to the registration system, India is also committed to improving the quality of listed companies. The Exchange Commission of India (SEBI) has established a set of rules and standards that require listed companies to disclose financial information, adhere to accounting standards and compliance requirements, and conduct rigorous supervision and auditing. These measures are intended to ensure that investors have access to accurate, complete and transparent information, thereby enhancing market confidence. By improving the quality assurance of listed companies, India** has further attracted more investors, driving the share price **.

Secondly, we should pay attention to the delisting system that is strictly enforced in India. According to Li Daogu, in 2004 alone, 974 companies in India were delisted. This move shows that India** has a zero-tolerance attitude towards bad companies and is determined to maintain the healthy operation of the market.

The strict implementation of the delisting system will help eliminate non-performing enterprises, reduce potential investment risks, and protect the rights and interests of investors. At the same time, India** has also established a robust post-delisting compensation mechanism to provide corresponding protection measures for affected investors. The operation of this system not only ensures a fair competition environment in the market, but also encourages the participation of investors and further promotes the stock price.

The strict implementation of the delisting system has provided a solid foundation for the healthy development of India. India's delisting regime is more pragmatic and effective than other countries. Under the escort of the delisting system, India** has been able to maintain a low default risk and bankruptcy rate, further enhancing the stability and reliability of the market. The operation of this system not only provides investors with more opportunities to participate, but also curbs market speculation to a certain extent, laying a solid foundation for the long-term development of the market.

Next, let's focus on India's crackdown on lawbreakers. India's legal system Xi from the United Kingdom, the establishment of the common law system, the legal system is relatively sound, the implementation of ** illegal acts "zero tolerance". This move not only serves as a deterrent to bad behavior in the market, but also further protects the rights and interests of investors.

Strict law enforcement and effective regulation in India have created a favorable environment for the fairness and impartiality of the market. In such an environment, investors are more confident and motivated to participate in the market, and are willing to hold for a long time, driving the stock price to maintain a stable trend. This fair and transparent market environment has also attracted domestic and foreign investors, laying a solid foundation for India's prosperity.

In addition to a sound legal system, India is also actively promoting transparency in information disclosure. India** requires regular and ad hoc disclosures from listed companies, including information on financial reporting, management discussion and analysis, corporate governance, and more. The disclosure of this information not only fully protects investors' right to know, but also provides more basis for decision-making. At the same time, India** has also established investor protection** and arbitration mechanisms to provide remedies for injured investors. These measures, in tandem, have contributed significantly to the prosperity of India by promoting fair competition in the market and protecting the rights and interests of investors.

We also need to pay attention to how India** has fared during the pandemic. It is worth noting that when the world** faced the impact of the epidemic, India** showed resilience and stability. In particular, the Reserve Bank of India (RBI) acted quickly to expand liquidity through monetary deflection, stabilizing the market and ensuring the stable operation of the economy.

During the pandemic, India** introduced a series of economic stimulus measures, including tax cuts, loans and subsidies. These measures have strongly stimulated consumer demand and investment activities, providing stable support for **. At the same time, the Reserve Bank of India (RBI) has maintained liquidity in the market by adjusting its monetary policy, avoiding panic selling and large market volatility. This series of measures and policies has made India relatively stable during the epidemic, and even took this opportunity to go further.

Through the analysis of the reasons for the rise of India, it is not difficult to find that its prosperity is not accidental, but depends on a series of rigorous policies and regulations. The implementation of the registration system has improved the quality assurance of listed companies, the strict implementation of the delisting system has ensured the healthy operation of the market, and the severe crackdown on violators has built a fair and transparent market environment.

For other countries, the experience of India can be Xi from the following aspects. First of all, establish a sound registration system to improve the quality assurance of listed companies. Second, we should strictly implement the delisting system, eliminate non-performing enterprises, and ensure the healthy operation of the market. Third, we will implement zero tolerance for violators, build a fair and transparent market environment, and protect the rights and interests of investors. Finally, when the market is turbulent, timely policy measures should be taken to stabilize market sentiment and maintain the stable operation of the economy.

As the world's second-largest economy, China is moving towards the goal of building a financial powerhouse. Given the success of India**, we can learn from its practices in the areas of listed company quality, market functioning and investor protection. While intensifying supervision, we also need to focus on creating a fair and transparent market environment, promoting institutional reform and innovation, attracting more high-quality enterprises to go public, and enhancing the vitality and competitiveness of the market. Only in this way will we be able to create a more prosperous and stable capital market that will provide strong support for economic development.

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