Question

Assume you are the Director of the Financial Markets Department of the Central Bank and you are tasked by the Board to formulate a Capital Market Development Plan for execution over the next (3) years with the following 3 objectives (1. Creation of Investment opportunities), 2. Broadening of Investors base and 3. Improving of market access, efficiency & transparency?

Answer 1

Capital market development plan for next three years would be as follows-

A. It would be including flexible terms and conditions for investment into the economy and it will also be providing with lesser rules and regulations so that investors are attracted.

B. There should be an adequate management of regulations for proper disclosure regarding investments so that a transparency could be maintained into the system.

C.investment requirements should be lowered in order to broaden the investor base which are investing into the overall economy.

D.To provide them with hybrid instruments and othe Lucrative form of instruments, which can increase their overall rate of return so a large number of investors can switch from financial sectors to investment sectors in order to maximize their return.

E. Market access should be made through online process rather than physical process and requirements related to submission of document should be lowered.

F. Capital requirements into investment regarding various security must be lowered so that a large number of investor can have access to those securities.

Overall there should be a focus on such formulation of policies which will be attracting a large number of investors into to the market and the money flow can be diverted into the investments.