Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

M. Y. Khan

Abstract

The importance of unit trusts in the task of mobilisation of resources, particularly of the relatively small investors, was recognised as early as 1931 when the Indian Central Banking Enquiry Committee submitted its report. Stressing the need for setting up such institutions to fill in the gap in the institutional structure concerned with financial, industrial and other borrowers Manu Subedar rightly observed in the Minority Report.

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M. Y. Khan

Abstract

The creation of the machinery of the special financing institutions, more appropriately designated in economic literature as 'development banks', as an integral part of the deliberate and conscious attempt by the Government to orient the financial system to the requirements of planned economic development, has been, indeed, an outstanding institutional development in the emergence of an efficient industrial financing mechanism in India.

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M. Y. Khan

Abstract

Although underwriting of capital issues in India started as early as 1912 but before 1955 cases of underwriting occurred only sporadically. Most of the underwriting in early days pertained to issues of companies floated by the well-known managing agents and probably little difference would have occurred had these issues not been underwritten. There was no institution which made a regular business of underwriting.

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M. Y. Khan

Abstract

Among the institutional sources of industrial finance in India, commercial banks are by far the oldest and quantitatively vitally important. In terms of the orthodox view of the theory of deposit banking, bank credit should be restricted to the financing of seasonal and other temporary financial requirements of a self-liquidating nature i.e., for working capital requirements, the permanent needs being met from long-term sources.

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