Comparison of Equity Markets in India and the United Kingdom

By

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views and not essentially which are associated with university.

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ABSTRACT

This research study is an attempt to make a comparison between the equity markets of India and the United Kingdom. The stock market is considered to be an important aspect of the capital market and it encapsulate the conventions and mechanisms that are present for the issuance, investing and trading of market equity instruments that represents either the permanent or the semi-permanent capital of the companies (issuers). The stock market plays a crucial role in an economy. It offers capital continuously and the capital is for a long term period. This research study has adopted a quantitative and a secondary research approach in order to meet the aim and objectives of this dissertation. The results of the dissertation show that the Initial Public Offering and the prices of the stocks are directly related to one another and if one of it increases so will the other variable. The results also showed that the new capital raised by IPOs is significantly higher than that of the London Stock Exchange. Therefore, this means that the National Stock Exchange of India is progressing and is moving towards a better condition in comparison to the London Stock Exchange.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

LIST OF FIGURESVII

CHAPTER 01: INTRODUCTION1

1.1. Background of the Study1

1.2. Aim and Objectives2

1.3. Research Questions3

1.4. Significance of the Study3

1.5. Layout of the Dissertation3

CHAPTER 02: LITERATURE REVIEW5

2.1. Introduction5

2.2. Investigation of the Equity Markets5

2.3. Equity Investments6

2.4. Equity Market in India6

2.5. National Stock Exchange of India10

2.6. Equity Market in the United Kingdom11

2.7. London Stock Exchange15

2.8. Operations of the London Stock Exchange15

2.9. Previous Researches16

2.10. Summary19

CHAPTER 03: RESEARCH METHODOLOGY20

3.1. Introduction20

3.2. Research Method20

3.3. Overview of Secondary Research Method20

3.4. Overview of Quantitative Research Method22

3.5. Ethical Considerations22

3.6. Confidentiality23

3.7. Conclusion23

CHAPTER 04: DISCUSSION AND ANALYSIS24

4.1. Data Analysis of IPOs and Share Prices24

4.2. Secondary Data Analysis39

CHAPTER 05: CONCLUSION43

5.1. Recommendations for Future Research44

REFERENCES46

LIST OF FIGURES

Figure 1: Number of Listed Companies25

Figure 2: Domestic Market Capitalisation (In Dollar Million)26

Figure 3: Value of Shares Traded (Million Dollars)27

Figure 4: Average Daily Turnover (in Dollar Million)28

Figure 5: Average Value of Trades (in Dollar Thousands)28

Figure 6: New Capital Raise from Initial Public Offerings (in Dollar Million)29

Figure 7: New Capital Raise from Secondary Public Offerings (in Dollar Million)30

Figure 8: Number of Trading Days31

Figure ...