The Clearing Corporation of India Ltd. (CCIL) was set up in 2001 commenced business operations in the securities market on February 15, 2002. CCIL provides an institutional infrastructure for the Clearing and Settlement of transactions by banks, financial institutions and primary dealers, in Government Securities, Money Market instruments, Foreign Exchange and other related products. The…
In a layman’s language, derivative means profit or loss derived from something. The most common derivative instruments used in financial markets are the forward contract, options, forward rate agreement, futures contract, interest rate swaps etc. The characteristic and value of these derivative instruments are derived from underlying assets like currencies, Interest rates, stocks indices, precious…
CFT is an acronym for Combating the Financing of Terrorism (CFT). Financing terrorism means providing financial support to terrorist or terrorist organizations intended to achieve political, religious, or ideological goals through violence and the threat of violence against civilians. The flow of funds may reach those terrorists from legitimate religious or cultural organizations or it…
Banks are required to periodically update their customers’ KYC details under Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002. As per latest review and directives of RBI, periodic full KYC exercise will be required to be done for…
A Non-Resident Ordinary (NRO) Account is required by many Non-Resident Indians (NRIs) to manage their deposits or income earned in India such as dividends, pension, rent, or to credit sale proceeds of immovable properties in India, etc.This account also allows you to remit funds from abroad either in Indian or foreign currency. You have to…
Section 8 of NI act provides that holder is any person who is entitled in his own name to the possession of negotiable instrument and has right to receive or recover the amount from the parties thereto.The word ‘entitled’ means that the person who claims to be holder should acquire the instrument in a lawful…
LLP is an acronym for the Limited Liability Partnership (LLP). LLP is an entity registered under the Limited Liability Partnership Act, of 2008. The liability of an LLP is restricted to its assets and the partner’s liability is limited to their share contributed in the partnership. Thus partner’s liability in LLP is similar to that…
In partnership businesses all the partners need not actively participate in the business activity of the firm. According to their involvement in the business they are called active partner/ managing partner and sleeping partner/ dormant partner. Active Partner or managing partner: An active partner is the capital investor in the partnership who actively involves himself…
The appearance of a smart card is akin to a credit card in size and shape. It is a plastic card embedded with microprocessor chip or memory chip. The microprocessor embedded under a gold contact pad on one side of the card can be compared to minicomputer. When the chip is processed by a chip…
Online submission of applications for loans under PMEGP is mandatory and no manual applications are allowed w.e.f. 01.05.2016. Individual loan applicants may submit PMEGP loan application to Khadi & Village Industries Commission under PMEGP scheme at following URL. https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp The non-individual entities such as Self Help Groups (registration of the SHGs not compulsory), Trust, Under…