Financial Market is a type of Market in which bonds and securities are traded. Price discovery is a process that determines market prices, mostly through interactions between buyers and sellers. Price discovery is a method for determining the spot price of a commodity through interactions between sellers and buyers – often referred to as a…
This article elucidates – Pension System and its Aspects – Pension Products – Different Types of Pension Schemes, – Employees Provident Funds Scheme – Public Provident Fund (PPF) Scheme **– Insurance Annuity Schemes – National Pension Scheme (NPS)– Atal Pension Yojana (APY).] The Royal Commission on Civil Establishments, in 1881, first awarded pension benefits to…
An annuity plan is an insurance contract between you (the annuitant) and an insurance company to provide you with a regular stream of 100% guaranteed pension for a lifetime after retirement. This helps you to secure your life goals and create a financial net for your family. The life insurance company invests your money and…
A retirement fund’s investments typically include a broad portfolio of stocks, bonds, mutual funds, and other assets. The primary goal is to gradually accumulate wealth; ensuring individuals have a sizeable nest egg to support a comfortable and financially secure retirement. Retirement mutual funds are focused funds for the golden years with a lock-in of at…
The Provident Funds Bill was introduced in the Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments. The Act is now referred to as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 which extends to the…
[The most popular swaps are Commodity Swaps, Currency Swaps, Interest rate Swaps, and Credit Default Swap (CDS)] In simple words, a Swap is an act of exchanging one thing for another. A financial derivative swap is an agreement between two counterparties (a buyer is a counterparty to a seller) to exchange financial instruments, cash flows,…
[This article explains what is a Derivative- History of Derivatives – The size of the Derivatives Market – Underlying Assets – Exchange Traded and Over-the-Counter Markets – Participants in the Derivatives Market, – Functions of Derivatives – Types of Derivatives – Forward Contracts– Futures – Options ] Definition: Derivative securities are those whose value depends…
A tradable form of loan is normally termed as a Debt Instrument. They are obligations of the issuer of such instrument as regards certain future cash flow representing Interest & Principal, which the issuer would pay to the legal owner of the Instrument. Debt Instruments are of various types. The distinctive types of the Debt…
Treasury bills or T-bills, are money market instruments issued by the Government of India. They are primarily short-term borrowing tools and are presently issued in three tenors, namely, 91 days, 182 days,s and 364 days. Funds collected through such tools are typically used to meet short-term requirements of the government and, hence, to reduce the…
On Thursday, February 8, 2024, the RBI Governor Shaktikanta Das in his Statement of development regulatory policy, announced, sets out various developmental and regulatory policy measures relating to (i) Financial Markets; (ii) Regulations; and (iii) Payment Systems and Fintech. Key Fact Statement (KFS): In the recent past RBI has announced several measures to foster greater…