Updated guidelines on raising loans through External Commercial Borrowing (ECB)

The revised guidelines on External Commercial Borrowing are as per the updated circular of RBI as of December 22, 2023. External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. The framework for…

Interconnectedness of money market

One of the important components of the international financial markets is the money market. Money Market is concerned with the issue and trading of securities with short-term maturities or quasi-money instruments. The Instruments traded in the money market are Treasury Bills, Certificates of Deposits (CDs), Commercial Paper (CPs), Bills of Exchange, and other such instruments…

Terminologies used in Foreign exchange dealings and fundamental of forex market

Originally posted on 8.11.2014 and Updated on 06.01.2024 [This post contains fundamental aspects of foreign exchange; and forex markets;  as well as over 100  terminologies used in  forex dealings such as direct and indirect Quote; buying rate, selling rate, forward exchange rate, swap rate, spot rate, cross rate, transaction date, value date, Spread, premium, discount,…

RBI revises norms for issuance of commercial Papers(CP) and Non-Convertible Debentures (NCD)

The Reserve Bank of India (RBI) in its Notification No.FMRD.DIRD.10/14.02.001/2023-24 dated January 03, 2024, introduced certain changes in the Master Direction norms relating to Commercial Paper and Non-Convertible Debentures of original or initial maturity up to one year. The new direction is effective from April 1, 2024. Commercial Paper (CP) is an unsecured money market…