Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business. An investor who buys a corporate bond is effectively lending money to the company in return for a series of…
The Monetary Policy Committee (MPC) met on the 6th, 7th, and 8th February 2024 and decided to keep the policy repo rate at 6.50 percent and other key policy rates also remained unchanged for the 6th straight time. RBI also left the policy stance unchanged with a focus on the withdrawal of accommodation. Withdrawal of…
Fixed-income securities are investments where the cash flows are according to a predetermined amount of interest, paid on a fixed schedule. The following are the different types of fixed-income securities Getting the targeted amount at the exact time is a possibility of an investment in a fixed-income product. Fixed interest rate securities are those in…
STRIP is an acronym that is commonly used to denote ‘Separate Trading of Registered Interest and Principal of securities’. This is a complex-sounding term however, in reality, the meaning is quite simple. STRIPS are the securities created by way of separating the cash flows associated with a regular G-Sec i.e. each semi-annual coupon payment and…
The Fixed Income Money Market and Derivatives Association of India (FIMMDA), is an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers, and Insurance Companies. It is a voluntary market body for the Fixed Income, Money, and Derivatives Markets, incorporated as a company under section 25 of the Companies Act 1956. Functions of FIMMDA:…
Market integration and price transmission, in the case of a large producing and consuming country like India; depend on the geographical dispersion or concentration of production. A shared online market platform for agriculture commodities: While consumers are spread throughout the country, the production and marketed surplus is less spread out, particularly for agricultural commodities. If…
Merchant bankers are called by different names across the world. In the USA they are called Investment bankers and in the UK they are called ‘accepting and issuing houses’. In India, National Grindlays Bank initiated merchant banking services in 1969. Then Citibank joined the financial service in 1970. The State Bank of India was the…
Market integration is defined as the unification of different markets into one, allowing for the free movement of goods and services. This process is facilitated by reducing barriers, such as tariffs or quotas, between countries. There are several types of market integration, including: Horizontal Integration: Horizontal integration happens when two or more companies having the…
The financial markets and their roles include the stock market, the bond market, forex, commodities, and the real estate market, among others. Financial markets can also be broken down into capital markets, money markets, primary vs. secondary markets, and listed vs. OTC markets, etc. Market participants: Heterogeneity is a word that signifies diversity. Heterogeneous market…
The Reserve Bank of India today cautioned members of the public against fraud in the name of KYC updation. The modus operandi of such frauds, the RBI said, usually involves customers receiving unsolicited communications, including phone calls, SMS (short messaging service), and emails, through which victims are manipulated into revealing personal information, account details, or…