Besides overnight call money and repo market, there is another market called collateralized borrowing and lending obligation (CBLO). The CBLO is a tradable repo, available in the form of discounted instrument in electronic book entry form. There are some difference in repo trading and CBLO trading. In repo trading, it is obligatory on the part…
The partnership firms can be commonly distinguished as a general partnership and limited liability partnership (LLP). The General Partnership can be further divided into three groups’ viz. partnership at will, particular partnership and fixed term partnership. The agreement for PARTNERSHIP AT WILL is formed for carrying on general business and it does not specify the…
Constitution of the partnership In simple words, a partnership is that two or more people jointly carry on a business and share its profit or loss. The person who joined the partnership may be a natural person (individual) or a legal person (corporates). However, an HUF (Hindu Undivided Family) is not treated as a person…
A Cheque is a specially printed paper form issued by the banks to their customers to draw money or pay monies to third parties from their running account like SB/Current Account, Cash Credit Account etc. that contains following features. When you look at a cheque, you find the name of the bank and address of…
[This article distinguishes on General rule and Garner v Murray rule, in sharing of deficiency of capital on account of insolvency of the partner(s)] Capital deficiency means that one or more partner has a debit balance in his/their capital account at the point of final cash distribution. The capital deficiency may arise from liquidation losses,…
There are two possibilities in a bank account maintained by a customer viz. (i) a deposit account is opened in a bank with a valid nomination or with the survivorship clause like ‘either or survivor’, or ‘anyone or survivor’, or ‘former or survivor’ or ‘latter or survivor’ etc. (ii) A deposit account is opened in…
There are two possibilities in a bank account maintained by a customer viz. (i) a deposit account is opened in a bank with a valid nomination or with the survivorship clause like ‘either or survivor’, or ‘anyone or survivor’, or ‘former or survivor’ or ‘latter or survivor’ etc. (ii) A deposit account is opened in…
[This article explains the meaning of yield based and price based auction with the illustrations of yield based auction and auction Sale (Re-issue) of Government Securities] The Government securities are issued by way of auctions conducted by the RBI on the electronic platform called the NDS – Auction platform. The banks, Insurance Companies, Mutual Funds,…
The bills of exchange are a kind of negotiable instruments generally arising out of trade transactions. Demand bills, Usance bills, Clean bills, Documentary Bills, Accommodation bills, etc. are the examples of bills of exchange in usage for different types of trade transactions. A cheque is also a kind of bill of exchange. However, cheque has some…
Section 5 of the NI Acts 1881 defines a bill of exchange as under “A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money to, or to the order of, a certain person or the bearer…