This thesis adopts an empirical approach to examine various market microstructure issues, using data from the National Stock Exchange of India (NSE). Whilst the respective empirical analyses may be considered as self-contained investigations, they are primarily linked through the common objective of understanding the mechanics of the pricing process as it occurs on actual markets, using the NSE as exemplar. The first major focus of the dissertation is non-synchronous trading: empirical evidence of nonsynchronicity is obtained by testing for predictability as between indices of different levels of liquidity. A simple test of the analysis of trading-break returns is proposed to infer whether predictability may be mainly attributable to non-synchronous trading or whether it constitutes a delayed adjustment of traders' expectations. The second question tackled in the thesis is whether volatility on the NSE may be considered as justified or excessive. Rathert han adopting the established methodology of comparing stock price changes to information about expected dividends, the research question is split up into two subsidiary ones. The first question is whether volatility is related to information flows, whilst the second related questionc oncernst he relationship betweenv olatility and returns. Three sources of excessive volatility are pin-pointed. Monday effects are found in index data but not in the underlying stocks-indicating index fluctuations which are not information-related. A second indicator of excessive price movements is the pronounced volatility which coincides with the fiscal year end of quoted companies but which is not accompanied by a similar increase in long-term returns. A third indication of unjustified price fluctuations is that volatility seems unrelated to returns when considering a long-term time series. The third topic of the thesis relates to the efficacy of opening and closing call auctions. This issue may be considered as the crux of the dissertation and it is tackled by analysing the effects of the suspension of a call auction system on NSE. Changes in volatility, efficiency and liquidity following the suspension are analysed, and an event study is presented. The relationship between call auctions and long-term volatility is also investigated. The findings suggest that the expected benefits of call auctions may not always materialise, possibly due to an inappropriately structured auction, or because a liquidity threshold for stocks must be surpassed for the expected benefits to accrue.

Infrastructure is one of the top priorities of the South African Government. Substantial amounts will be invested by the Government in infrastructure between 2014 and 2016 as good infrastructure plays a pivotal role in the growth of the South African economy. Government does not have sufficient resources to meet its infrastructure goals and is therefore dependent on the private construction sector to provide assistance. Discrepancies were noted between the judgment laid down in CSARS v South African Custodial Services (Pty) Ltd (SACS) and the interpretations from the relevant sections contained within the Income Tax Act governing the normal tax treatment of construction contractors. The aim of this study was to determine whether reliance could be placed on the judgement laid down in CSARS v South African Custodial Services (Pty) Ltd in order to determine the nature and deductibility of expenditure incurred by construction contractors in future. It is crucial that tax legislation should be correctly interpreted and applied in determining the taxable income of taxpayers as it is evident that tax consequences influence the behaviour of South African taxpayers. A literature study of prior case law, sections of the Income Tax Act governing the normal tax treatment of construction contractors as well as other relevant literature was performed in order to determine the correct application of sections governing the normal tax position of construction contractors. The negative tax consequences suffered by SACS as a main contractor due to judgement laid down in CSARS v South African Custodial Services (Pty) Ltd could influence the willingness of the private construction sector to provide assistance to Government in future. Based on the literature study performed it was found that the court's application of Section 22(2A) of the Income Tax Act was correct. It was further found that the Court erroneously applied Section 11 (a), and as a result incorrectly determined the normal tax position of SACS. In response to this it is recommended that no reliance should be placed on the judgement laid down in CSARS v South African Custodial Services (Pty) Ltd in respect of determining the nature and deductibility of fees paid to subcontractors by construction contractors, as this could result in negative tax planning consequences. / MCom (South African and International Tax), North-West University, Potchefstroom Campus, 2015

Infrastructure is one of the top priorities of the South African Government. Substantial amounts will be invested by the Government in infrastructure between 2014 and 2016 as good infrastructure plays a pivotal role in the growth of the South African economy. Government does not have sufficient resources to meet its infrastructure goals and is therefore dependent on the private construction sector to provide assistance. Discrepancies were noted between the judgment laid down in CSARS v South African Custodial Services (Pty) Ltd (SACS) and the interpretations from the relevant sections contained within the Income Tax Act governing the normal tax treatment of construction contractors. The aim of this study was to determine whether reliance could be placed on the judgement laid down in CSARS v South African Custodial Services (Pty) Ltd in order to determine the nature and deductibility of expenditure incurred by construction contractors in future. It is crucial that tax legislation should be correctly interpreted and applied in determining the taxable income of taxpayers as it is evident that tax consequences influence the behaviour of South African taxpayers. A literature study of prior case law, sections of the Income Tax Act governing the normal tax treatment of construction contractors as well as other relevant literature was performed in order to determine the correct application of sections governing the normal tax position of construction contractors. The negative tax consequences suffered by SACS as a main contractor due to judgement laid down in CSARS v South African Custodial Services (Pty) Ltd could influence the willingness of the private construction sector to provide assistance to Government in future. Based on the literature study performed it was found that the court's application of Section 22(2A) of the Income Tax Act was correct. It was further found that the Court erroneously applied Section 11 (a), and as a result incorrectly determined the normal tax position of SACS. In response to this it is recommended that no reliance should be placed on the judgement laid down in CSARS v South African Custodial Services (Pty) Ltd in respect of determining the nature and deductibility of fees paid to subcontractors by construction contractors, as this could result in negative tax planning consequences. / MCom (South African and International Tax), North-West University, Potchefstroom Campus, 2015

This work deals with the usage of neural network for the purpose of stock market prediction. A basic stock market theory and trading approaches are mentioned at the beginning of this work. Then neural networks and their application are discussed with their deeper description. Similar approaches are referred and finally two new prediction systems are designed. These systems are utilized by proposed trading model and tested on selected data. The results are compared to human and random trading models and new development steps are devised at the end of this work.