According to IMF e-Library, Financial Leasing is defined as “A financial lease is an arrangement, for the provision of a capital good, between a lessor who provides the initial finance and a lessee who has the use of the asset without initially legally owning it”. The following characteristics are typical under a financial lease arrangement.…
Bond valuation is a technique for determining the theoretical fair value of a particular bond. Bond valuation comprises calculating the present value of future interest payments and face value to determine a bond’s theoretical fair value. The bond’s future interest payments also known as its cash flow, and the bond’s value upon maturity also known…
Government Security (G-Sec) is a tradable instrument issued by the Central Government or the State Governments. The Government concerned acknowledges the Government’s debt obligation. G-Secs is a collective term for T-bills (Treasury Bills) and bonds or dated securities. The instrument’s maturities of less than 1 year are called T-bills and those of more than one…
Corporate bonds are debt securities issued by private and public companies in the market to raise funds from investors. These bonds provide fixed payments of interest and these bonds are less risky investments compared to stocks. The bond market is the collective name given to all trades and issues of debt securities and includes corporate,…
Corporates with a short-term surplus can place their deposits with Inter Corporate Deposits based on the ongoing rates of collateralised borrowing and lending obligation (CBLO), and Call Rates in the Money Market. The minimum period of deposits should be starting from a minimum of 7 days in the form of Inter Corporate Deposits (ICD). In…
As per Merriam-Webster, Infra- means “below;” so the infrastructure is the “underlying structure” of a country and its economy, the fixed installations it needs to function. These include roads, bridges, dams, water and sewer systems, railways and subways, airports, and harbours. There is no clear definition for infrastructure financing stated anywhere. However, it is common…
Enhanced Access & Service Excellence (EASE) was conceptualized to improve Risk assessment, NPA management, deepening financial inclusion, enhancing Customer service, initiating Digital transformation, Retail and MSME Credit off-take, developing Analytical capabilities, HR transformation and Governance, etc. The Government of India and Public Sector Banks (PSBs) jointly committed to and launched a common PSB Reforms Agenda…
A bad bank is simply an Asset Reconstruction Company (ARC) designed to absorb bad loans or NPA accounts of banks that are written off or deemed by banks as doubtful or lost assets. These are the assets against which banks have already set aside money by way of provisions to cover the losses. Banks sell…
The Securities and Exchange Board of India was constituted as a non-statutory body on April 12, 1988, through a resolution of the Government of India and was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force…
Pension Fund Regulatory and Development Authority (PFRDA) is a regulatory body established in 2003 with its headquarters in New Delhi. PFRDA was initially designed for government employees exclusively, but its services were subsequently expanded to include all Indian nationals and NRIs, including self-employed persons. On 23rd August 2003, the Interim Pension Fund Regulatory & Development…