Sebi grade a 2020

RBI
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Types of Market Structures

There are quite a few different market structures that can characterize an economy. However, if you are just getting started with this topic, you may want to look at the four basic types of market structures first: perfect competition, monopolistic competition, oligopoly, and monopoly. Each of them has its own set of characteristics and assumptions, which in turn affect the decision making of firms and the profits they can make.It is important to note that not all of these market structures exist in reality; some of them are just theoretical constructs. Nevertheless, they are critical because they help us understand how competing firms make decisions.

1. PERFECT COMPETITION

Perfect competition describes a market structure, where a large number of small firms compete against each other. In this scenario, a single firm does not have any significant market power. As a result, the industry as a whole produces the socially optimal level of output, because none of the firms can influence market prices.The idea of perfect competition builds on several assumptions: (1) all firms maximize profits (2) there is free entry and exit to the market, (3) all firms sell completely identical (i.e., homogenous) goods, (4) there are no consumer preferences. By looking at those assumptions, it becomes quite obvious that we will hardly ever find perfect competition in reality. That is an essential aspect because it is the only market structure that can (theoretically) result in a socially optimal level of output.Probably the best example of a market with an almost perfect competition we can find in reality is the stock market. If you are looking for more information on perfect competition, you can also check our post on perfect competition vs. imperfect competition.

2. MONOPOLISTIC COMPETITION

Monopolistic competition also refers to a market structure, where a large number of small firms compete against each other. However, unlike in perfect competition, the firms in monopolistic competition sell similar, but slightly differentiated products. That gives them a certain degree of market power, which allows them to charge higher prices within a certain range.Monopolistic competition builds on the following assumptions: (1) all firms maximize profits (2) there is free entry, and exit to the market, (3) firms sell differentiated products (4) consumers may prefer one product over the other. Now, those assumptions are a bit closer to reality than the ones we looked at in perfect competition. However, this market structure no longer results in a socially optimal level of output because the firms have more power and can influence market prices to a certain degree.An example of monopolistic competition is the market for cereals. There is a huge number of different brands (e.g., Cap’n Crunch, Lucky Charms, Froot Loops, Apple Jacks). Most of them probably taste slightly different, but at the end of the day, they are all breakfast cereals.

3. OLIGOPOLY

An oligopoly describes a market structure that is dominated by only a small number of firms. That results in a state of limited competition. The firms can either compete against each other or collaborate (see also Cournot vs. Bertrand Competition). By doing so, they can use their collective market power to drive up prices and earn more profit.The oligopolistic market structure builds on the following assumptions: (1) all firms maximize profits, (2) oligopolies can set prices, (3) there are barriers to entry and exit in the market, (4) products may be homogenous or differentiated, and (5) there is only a few firms that dominate the market. Unfortunately, it is not clearly defined what a “few firms“ means precisely. As a rule of thumb, we say that an oligopoly typically consists of about 3-5 dominant firms.To give an example of an oligopoly, let’s look at the market for gaming consoles. This market is dominated by three powerful companies: Microsoft, Sony, and Nintendo. That leaves all of them with a significant amount of market power.

4. MONOPOLY

A monopoly refers to a market structure where a single firm controls the entire market. In this scenario, the firm has the highest level of market power, as consumers do not have any alternatives. As a result, monopolies often reduce output to increase prices and earn more profit.The following assumptions are made when we talk about monopolies: (1) the monopolist maximizes profit, (2) it can set the price, (3) there are high barriers to entry and exit, (4) there is only one firm that dominates the entire market.From the perspective of society, most monopolies are usually not desirable, because they result in lower outputs and higher prices compared to competitive markets. Therefore, they are often regulated by the government. An example of a real-life monopoly could be Monsanto. This company trademarks about 80% of all corn harvested in the US, which gives it a high level of market power. You can find additional information about monopolies in our post on monopoly power. 


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Hi Guys, If anyone is willing to buy/share edutap or anuj jindal material for sebi and rbi for under 2000. Please let me know on [email protected].

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World Happiness Index 2020

Link: https://gkmojo.com/world-happiness-report-2020/

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Hi Puys. Today Edutap had conducted a common scholarship test for SEBI Grade A, RBI GradeB and EPFO EO 2020. Top 100 students have been given a coupon code to avail a discount of 50% on any individual or combo 2020 courses. I had given the exam and have secured under 100 rank. I had already purchased the Edutap's SEBI Grade A course before this schoolarship test. Therefore, I am willing to give the 50% discount coupon code to desirous students. Please message me personally who all are interested. The coupon code is valid till 28/04/2020. 

Take care and happy preparations!!!

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Hello Aspirants 

Covid19 has impacted every section of society, we Civil service and government job aspirants are not exceptions to this.

Let us not Panic, everything will be normal and as usual.

Keep your focus on studies and use this extra time very well.

Government might take measures like increasing age limit of examinations, or re-scheduling Exams.

We will update you all about these Government notification on your mobile numbers through SMS and Emails.

We are trying to do whatever is possible from our side to lessen the panic and uncertainties  amongst the Aspirants.


Please register on the below link so that we can give you all the updated notifications and news related to UPSC,MPSC, Bank Exams, and all Other Exams.

www.rashtrawadirojgar.org 


Stay home Stay Safe.

This initiative is in social interest.

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 COSTING-- Total Productive Maintenance (TPM)

Total Productive Maintenance (TPM) is a process or technique. This technique was first introduced by Japanese in 1952. This is an extension to TQM. Total Productive Maintenance is a well-defined and organized program which eliminates the losses caused by break-down of machines and equipments by identifying and attacking all causes of equipment break downs and system down time.Total Productive Maintenance here in after referred as TPM. TPM is a cost-effective technique.Through this technique it is possible to maintain the plant, machinery/equipment and tools in productive state in least cost. Well maintained machines lead to productivity. There is a relation between cost of maintenance and cost of quality. We can’t think quality outputs without quality inputs and one of the important input is TPM. Cost incurred to maintain equipment is considered as a quality cost. It is possible to achieve stated quality through conscious efforts put by everyone who is directly or indirectly involved in the production and maintenance system by implementing TPM technique. Europeans and Americans thought that production is low status work and maintenance has below status than production because maintenance does not take part directly in revenue generation rather it is treated as system overhead. But Japanese have proved that production and maintenance has high status. Productivity encompasses cost, quality, quantity, efforts, time, rework, scrap, working environment and competitiveness of the organization. Every manufacturing organization wants to achieve productivity and TPM plays major role in it. This study is concerned with the assessment of TPM as tool to improve organization’s performance.
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Mutual Funds and Role Of SEBI

India is going through a phase of Demographic Dividend, where the working population forms nearly 65% of total population, the venture of investments in the Bond market like Mutual Fund (MF) provides for ample opportunities of growth in India’s financial sector.However, due to the recent Franklin Templeton Crisis, the Mutual Fund industry is currently experiencing a state of flux. This incident could well trigger a systemic crisis of confidence for investors and there are concerns over its possible ripple effects on the overall financial market.


Franklin Templeton Mutual Fund Crisis

§ Franklin Templeton Mutual Fund has decided to wind up six debt schemes that held more than Rs 27,000 crore.§ The fund house held that investors will not be able to redeem their investments for the time being as the fund§ house has barred both purchases and redemptions.§ This decision was taken as the value of Mutual funds was getting eroded following the lack of liquidity on account of the Covid-19 impact on markets.§ The Reserve Bank of India’s decision to open a special facility to ensure the availability of adequate liquidity for the mutual fund industry is a timely move in signalling to investors that the central bank is alert to the need to preserve financial stability in these challenging times.§ RBI has assigned ₹50,000 crore exclusively for commercial banks to lend to mutual funds. With this step, RBI wants to contain any liquidity crunch in the mutual fund market.


SOLUTION


§ SEBI should revise rules to crack down on mis-labelling and mis-selling, and segregate debt funds run for institutional and retail investors.§ Regulatory reforms, such as a simplified KYC to make onboarding hassle-free; making Aadhar interchangeable with PAN; and allowing investments on the basis of Bank KYC, should be taken.§ Technology will be the biggest enabler for growth as mutual funds are already noticing increasing traction from online channels like fintech platforms, mobile apps and websites.§ There is a need to fix the accountability of credit-rating companies and fund companies.o This can be done by linking their income to returns and/or certain outcomes.There is a need to engage domestic investment in India’s financial market. This will reduce dependence on the foregin investment (hot money), which in turn, will curb volatility and provide stability to Indian financial market. 


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Functions of Management: Planning

Planning is the most basic and pervasive process involved in management. Planning is the function of determining in advance what actions to take and when and how to take them. This implies setting goals in advance and developing a way of achieving them efficiently and effectively. Planning cannot prevent problems, but it can predict them and prepare contingency plans to deal with them if and when they occur.

ORGANISING

Organising is the formal grouping of people and activities to facilitate the achievement of firm’s objectives. It involves the function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. The organising function examines the activities and resources required to implement the plan. Organising involves the grouping of the required tasks into manageable departments or work units and the establishment of authority and reporting relationships within the organisational hierarchy.

STAFFING

It is the process of finding the right people for the right job. This is also known as the human resource function and it involves activities such as recruitment, selection, placement and training of personnel.

DIRECTING

It involves leading, influencing and motivating employees to perform the tasks assigned to them. Motivation and leadership are two key components of direction.

  • Motivating workers means simply creating an environment that makes them want to work.
  • Leadership is influencing others to do what the leader wants them to do.

A good manager directs through praise and criticism in such a way that it brings out the best in the employee

CONTROLLING

It is the process of monitoring organizational performance towards the attainment of organisational goals. The task of controlling involves establishing standards of performance, measuring current performance, comparing this with established standards and taking corrective action where any deviation is found 



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Characteristics of Monopoly:

The main features of monopoly are as follows:1. Under monopoly, there is one producer or seller of a particular product and there is no differ­ence between a firm and an industry. Under monopoly a firm itself is an industry.2. A monopoly may be individual proprietorship or partnership or joint stock company or a co­operative society or a government company.3. A monopolist has full control on the supply of a product. Hence, the elasticity of demand for a monopolist’s product is zero.4. There is no close substitute of a monopolist’s product in the market. Hence, under monopoly, the cross elasticity of demand for a monopoly product with some other good is very low.5. There are restrictions on the entry of other firms in the area of monopoly product.6. A monopolist can influence the price of a product. He is a price-maker, not a price-taker.7. Pure monopoly is not found in the real world.8. Monopolist cannot determine both the price and quantity of a product simultaneously.9. Monopolist’s demand curve slopes downwards to the right. That is why, a monopolist can increase his sales only by decreasing the price of his product and thereby maximise his profit. The marginal revenue curve of a monopolist is below the average revenue curve and it falls faster than the average revenue curve. This is because a monopolist has to cut down the price of his product to sell an additional unit. 


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Characteristics of Monopoly:

The main features of monopoly are as follows:1. Under monopoly, there is one producer or seller of a particular product and there is no differ­ence between a firm and an industry. Under monopoly a firm itself is an industry.2. A monopoly may be individual proprietorship or partnership or joint stock company or a co­operative society or a government company.3. A monopolist has full control on the supply of a product. Hence, the elasticity of demand for a monopolist’s product is zero.4. There is no close substitute of a monopolist’s product in the market. Hence, under monopoly, the cross elasticity of demand for a monopoly product with some other good is very low.5. There are restrictions on the entry of other firms in the area of monopoly product.6. A monopolist can influence the price of a product. He is a price-maker, not a price-taker.7. Pure monopoly is not found in the real world.8. Monopolist cannot determine both the price and quantity of a product simultaneously.9. Monopolist’s demand curve slopes downwards to the right. That is why, a monopolist can increase his sales only by decreasing the price of his product and thereby maximise his profit. The marginal revenue curve of a monopolist is below the average revenue curve and it falls faster than the average revenue curve. This is because a monopolist has to cut down the price of his product to sell an additional unit. 


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IMPORTANT TOPIC FOR SEBI COSTING 2020




Five S of Kaizen


“Five S” of Kaizen is a systematic approach which leads to foolproof systems, standard policies, rules and regulations to give rise to a healthy work culture at the organization. You would hardly find an individual representing a Japanese company unhappy or dissatisfied. Japanese employees never speak ill about their organization. Yes, the process of Kaizen plays an important role in employee satisfaction and customer satisfaction through small continuous changes and eliminating defects. Kaizen tools give rise to a well organized workplace which results in better productivity and yield better results. It also leads to employees who strongly feel attached towards the organization.


Let us understand the five S:


1. SEIRI - SEIRI stands for Sort Out. According to Seiri, employees should sort out and organize things well. Label the items as “Necessary”, ”Critical”, ”Most Important”, “Not needed now”, “Useless and so on. Throw what all is useless. Keep aside what all is not needed at the moment. Items which are critical and most important should be kept at a safe place.


2. SEITION - Seition means to Organize. Research says that employees waste half of their precious time searching for items and important documents. Every item should have its own space and must be kept at its place only.


3. SEISO - The word “SEISO” means shine the workplace. The workplace ought to be kept clean. De-clutter your workstation. Necessary documents should be kept in proper folders and files. Use cabinets and drawers to store your items.


4. SEIKETSU-SEIKETSU refers to Standardization. Every organization needs to have certain standard rules and set policies to ensure superior quality.


5. SHITSUKE or Self Discipline - Employees need to respect organization’s policies and adhere to rules and regulations. Self discipline is essential. Do not attend office in casuals. Follow work procedures and do not forget to carry your identity cards to work. It gives you a sense of pride and respect for the organization.


Kaizen focuses on continuous small improvements and thus gives immediate results.


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SEBI ECONOMICS---TOPIC


MONITARY POLICY


The primary aim of monetary policy in India is to maintain price stability while keeping in mind the objective of economic growth.

TYPES OF MONETARY POLICY

There are three common types of monetary policy. These are:

1. Expansionary Monetary Policy

2. Contractionary Monetary Policy

3. Unconventional Monetary Policy

EXPANSIONARY MONETARY POLICY

Expansionary monetary policy is the monetary policy which seeks to increase aggregate demand and economic growth in the economy. It involves increasing the money supply and lowering the interest rates. The lower interest rate encourages the borrowers to buy more which increases the economic activity. The increased economic activity leads to more employment opportunities thus decreasing unemployment. It also increases the inflation as more money is available to buy goods and services.

It is also known as Easy Money Policy or Loose Money Policy as central banks seeks to increase the money supply by lowering the interest rates.

CONTRACTIONARY MONETARY POLICY

Contraction monetary policy is the monetary policy which is used to fight the inflation in economy. It involves decreasing the money supply and increasing the interest rates. As reduction in money supply increases the interest rates, the borrowers will be reluctant to borrow the money due to higher borrowing cost which ultimately reduces the economic activity. It leads to decrease in inflation, increase in unemployment and slowdown in economy.

It is also known as tight money policy as central banks seeks to reduce the money supply by restricting credit by increasing interest rates.

UNCONVENTIONAL MONETARY POLICY

Unconventional monetary policy is pursued by central banks when their traditional instruments of monetary policy cease to achieve their goals. The one such unconventional monetary policy was employed us United States after the financial crisis of 2007 in the form Quantitative Easing (QE).

INSTRUMENTS OF MONETARY POLICY IN INDIA

The Reserve Bank of India employs various instruments of monetary policy in India to achieve the objectives of price stability and higher economic growth. Some of the important instrument or tools of monetary policy in India are:

· Open Market Operations (OMO)

· Cash Reserve Ration (CRR)

· Statutory Liquidity Ratio (SLR)

· Liquidity Adjustment Facility (LAF)

· Selective Credit Control

· Moral Suasion

Open Market Operations (OMO)

It is the process of buying and selling of government securities, bond or Treasury Bills (T-Bills) to regulate the money supply in economy. If government wants to reduce money supply, it issues these bonds. The money is consumed to buy these bonds thus it reduced the monetary base of the economy. Similarly to increase the money supply, the government sells these bonds thereby increasing the monetary base of the economy. In India, the open market operations are conducted by Reserve Bank of India through its core banking solution e-Kuber.

Cash Reserve Ratio (CRR)

It refers to the cash which banks have to maintain with the Reserve Bank of India as percentage of Net Demand and Time Liabilities (NDTL). An increase in CRR makes it mandatory for banks to hold large portion of their deposits with the RBI. Therefore it reduces their deposit available for credit and they lend less which affect their profitability and also reduces the money supply in economy.

Statutory Liquidity Ratio (SLR)

Apart from CRR, the banks in India are required to maintain liquid assets in the form of gold, cash and approved securities. The increase/decrease in SLR affects the availability of money for credit with banks.

Liquidity Adjustment Facility (LAF)

Under Liquidity Adjustment Facility (LAF) the banks purchase money from RBI on repurchase agreements.

· Repo Rate: It is the interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF)

· Reverse Repo Rate: The (fixed) interest rate at which the Reserve Bank absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the LAF

Marginal Standing Facility

Under SF, the scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a limit at a penal rate of interest. This provides a safety valve against unanticipated liquidity shocks to the banking system

Bank Rate

It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers.

Selective Credit Control

Under this method, the central influence the credit growth in country through following techniques:

· Specifying the margin requirements and differential rate of interests

· Regulating the credit for consumer durables

Moral Suasion

The central persuades the commercial banks to regulate the credit growth through oral and verbal communication.

WHY MONETARY POLICY IS INEFFECTIVE IN INDIA?

There are many reasons for monetary policy not able to achieve its intended objectives. Some of the reasons are:

· Higher proportion of Non-Bank Credit The credit market in India is largely occupied by non-bank credit providing institutions like money lenders, cooperatives, relatives, friends etc. This large segment is not affected by monetary policy instrument.

· Introduction of new financial instruments Mutual Fund, Venture Capital, IPO etc. have influence on overall liquidity in the economy. The monetary policy intervention by Reserve Bank of India is insignificant in these segments of financial system.

· High currency-deposit ratio The rural economy in India has more inclination towards the usage of cash. Thus there is high currency-deposit ratio. The monetary policy only touches the deposit section. Thus any intervention by way of monetary policy has meager effect on economy.


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Important questions for sebi exam https://youtu.be/tNkYAC6epUY

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 Role of Incentives in Building up Morale--MANAGEMENT TOPIC



Incentive is an act or promise for greater action. It is also called as a stimulus to greater action. Incentives are something which are given in addition to wagers. It means additional remuneration or benefit to an employee in recognition of achievement or better work. Incentives provide a spur or zeal in the employees for better performance. It is a natural thing that nobody acts without a purpose behind. Therefore, a hope for a reward is a powerful incentive to motivate employees. Besides monetary incentive, there are some other stimuli which can drive a person to better. This will include job satisfaction, job security, job promotion, and pride for accomplishment. Therefore, incentives really can sometimes work to accomplish the goals of a concern. 


The need of incentives can be many:-

  1. To increase productivity,
  2. To drive or arouse a stimulus work,
  3. To enhance commitment in work performance,
  4. To psychologically satisfy a person which leads to job satisfaction,
  5. To shape the behavior or outlook of subordinate towards work,
  6. To inculcate zeal and enthusiasm towards work,
  7. To get the maximum of their capabilities so that they are exploited and utilized maximally.


Therefore, management has to offer the following two categories of incentives to motivate employees:

  1. Monetary incentives- Those incentives which satisfy the subordinates by providing them rewards in terms of rupees. Money has been recognized as a chief source of satisfying the needs of people. Money is also helpful to satisfy the social needs by possessing various material items. Therefore, money not only satisfies psychological needs but also the security and social needs. Therefore, in many factories, various wage plans and bonus schemes are introduced to motivate and stimulate the people to work.
  2. Non-monetary incentives- Besides the monetary incentives, there are certain non-financial incentives which can satisfy the ego and self- actualization needs of employees. The incentives which cannot be measured in terms of money are under the category of “Non- monetary incentives”. Whenever a manager has to satisfy the psychological needs of the subordinates, he makes use of non-financial incentives. Non- financial incentives can be of the following types:-Security of service- Job security is an incentive which provides great motivation to employees. If his job is secured, he will put maximum efforts to achieve the objectives of the enterprise. This also helps since he is very far off from mental tension and he can give his best to the enterprise.
    Praise or recognition- The praise or recognition is another non- financial incentive which satisfies the ego needs of the employees. Sometimes praise becomes more effective than any other incentive. The employees will respond more to praise and try to give the best of their abilities to a concern.
    Suggestion scheme- The organization should look forward to taking suggestions and inviting suggestion schemes from the subordinates. This inculcates a spirit of participation in the employees. This can be done by publishing various articles written by employees to improve the work environment which can be published in various magazines of the company. This also is helpful to motivate the employees to feel important and they can also be in search for innovative methods which can be applied for better work methods. This ultimately helps in growing a concern and adapting new methods of operations.
    Job enrichment- Job enrichment is another non- monetary incentive in which the job of a worker can be enriched. This can be done by increasing his responsibilities, giving him an important designation, increasing the content and nature of the work. This way efficient worker can get challenging jobs in which they can prove their worth. This also helps in the greatest motivation of the efficient employees.
    Promotion opportunities- Promotion is an effective tool to increase the spirit to work in a concern. If the employees are provided opportunities for the advancement and growth, they feel satisfied and contented and they become more committed to the organization.
    The above non-financial tools can be framed effectively by giving due concentration to the role of employees. A combination of financial and non- financial incentives help together in bringing motivation and zeal to work in a concern.
POSITIVE INCENTIVES

Positive incentives are those incentives which provide a positive assurance for fulfilling the needs and wants. Positive incentives generally have an optimistic attitude behind and they are generally given to satisfy the psychological requirements of employees. For example-promotion, praise, recognition, perks and allowances, etc. It is positive by nature.

NEGATIVE INCENTIVES

Negative incentives are those whose purpose is to correct the mistakes or defaults of employees. The purpose is to rectify mistakes in order to get effective results. Negative incentive is generally resorted to when positive incentive does not works and a psychological set back has to be given to employees. It is negative by nature. For example- demotion, transfer, fines, penalties. 


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Hello , I am going to start preparing for SEBI grade A exam . I have a serious confusion to whether getting the Anuj jindals course or Edutap .

I am from Btech-MBA integrated background , not so good hold at managment subjects and in the last year.

Pls help !

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SEBI grade A company law topic wise test How to access test https://play.google.com/store/apps/details?id=com.trigrexam.www Step 1- download the app Step 2-search examkeeda Step 3-go to SEBI grade A company law Step 4- give the test Test 1- prospectus and allotment of securities is free