Non-performing assets (NPAs) have been a cause of concern for the banking sector across the world and have invited a lot research interest, especially for emerging economies. In India, the NPAs grew many folds and reached alarming levels in 2013. The available mechanisms, such as Corporate Debt Restructuring Scheme, were not adequate to address this issue. The Central Reserve Bank of India with the Government of India introduced various guidelines, schemes and regulations like framework for revitalizing distressed assets to tackle NPAs during the period 2013-2017. Taking the case of India, the purpose of this paper is to examine policy initiatives and analyse the impact of regulatory shocks on the equity market returns and the systematic risk of individual banking stocks using an extended version of the market model.,In this study, the authors design the experiment to explore the reaction of banking stocks to the various regulatory measures and also measure the change in systematic risk for these stocks as a result of the regulatory changes. Following the approach suggested by Soraokina and Thornton (2015), the authors use the extended market model to test the reaction of banking company stocks to the regulatory measures.,The study finds that banking stocks did not earn significant abnormal returns on the announcement of these measures. However, the systematic risk of the banking index reduced significantly on the introduction of regulatory measures, and this risk reduction has been primarily in the stocks of private sector banks.,This paper provides insights on the equity market's short-term reaction to the reform initiatives introduced by the government. The scope of the paper is with respect to one emerging economy, India, which underwent a series of regulatory reforms to tackle the banking NPA problem.,The paper fills an important research gap where the impact of schemes and regulations is captured for an emerging economy like India. It tries to bring forth the importance of these reforms and how an investor perceives the same. This paper tests for changes in systematic risk as measured by market beta as well as measures cumulative abnormal returns associated with important events in the process of regulatory reforms happening in India from 2013 to 2017.

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股市对监管改革的反应：以印度银行为例

不良资产（NPA）一直是全球银行业关注的原因，并引起了很多研究兴趣，尤其是对于新兴经济体。在印度，NPA增长了许多倍，并在2013年达到惊人的水平。可用的机制（如公司债务重组计划）不足以解决此问题。印度中央储备银行与印度政府共同推出了各种指南，计划和法规，例如在2013-2017年期间振兴不良资产以应对不良资产的框架。以印度为例，本文的目的是使用扩展版本的市场模型来研究政策举措，并分析监管冲击对股票市场回报和单个银行股票的系统风险的影响。作者设计了该实验，以探索银行股票对各种监管措施的反应，并测量由于监管变化而导致这些股票的系统风险的变化。根据Soraokina和Thornton（2015）提出的方法，作者使用扩展市场模型来测试银行公司股票对监管措施的反应。研究发现，银行公司股票在宣布这些措施后并未获得显着的异常收益。措施。但是，通过采取监管措施，银行业指数的系统性风险显着降低，而这种降低风险主要发生在私营部门银行的股票上。本文提供了有关证券市场对改革举措的短期反应的见解。由政府介绍。本文的范围针对一个新兴经济体印度，印度进行了一系列监管改革以解决银行业不良资产问题。该论文填补了重要的研究空白，其中捕捉了计划和法规对新兴经济体的影响像印度。它试图提出这些改革的重要性以及投资者如何看待这些改革。本文测试了通过市场beta衡量的系统风险的变化，以及衡量与2013年至2017年印度发生的监管改革过程中的重要事件相关的累积异常收益。该论文填补了一个重要的研究空白，在该空白中，计划和法规对诸如印度这样的新兴经济体产生了影响。它试图提出这些改革的重要性以及投资者如何看待这些改革。本文测试了通过市场beta衡量的系统风险的变化，以及衡量了2013年至2017年印度发生的监管改革过程中与重要事件相关的累积异常收益。该论文填补了一个重要的研究空白，在该空白中，计划和法规对诸如印度这样的新兴经济体产生了影响。它试图提出这些改革的重要性以及投资者如何看待这些改革。本文测试了通过市场beta衡量的系统风险的变化，以及衡量与2013年至2017年印度发生的监管改革过程中的重要事件相关的累积异常收益。