A strategic alliance is an agreement between two or more independent organizations that agree to share resources to undertake a specific, mutually beneficial objective. The strategic alliance is akin to partnership project, the relation fall short of legally banded partnership. The agreement may be formal or informal in nature, but each party’s responsibilities must be…
A depository receipt or depositary receipt (DR) is a negotiable financial instrument that represents a foreign company’s (issuing company which is incorporated outside India) publicly traded debt or equity in domestic exchanges. The depository receipts (DRs) which are created by a Domestic Depository bank against the underlying equity shares of the issuing company are termed…
P-Notes or PNs are acronym to Participatory Notes. These instruments are issued to overseas buyers by the foreign institutional investors (FII) who are registered with SEBI. These notes are actually Overseas Derivative Instruments that have Indian stocks as their underlying assets. The foreign institutional investors (FII) who have registered with SEBI issue these instruments to…
Scheduled Commercial Banks in India are those banks which are included in the second schedule to Reserve Bank of India Acts 1934. Scheduled Commercial Banks in India are categorised in five different groups according to their ownership and/or nature of operation. These bank groups are: (i) State Bank of India (ii) Nationalised Banks, (iii) Regional…
A registrar is the SEBI approved entity, usually a bank or trust company. The Registrar to issue process share and debenture allocation. Further, the Registrar keeps the records of bondholders and shareholders when the issuer sells securities to the public. Click below to know; Who are Foreign Institutional Investors (FIIs)? What is Universal Banking?…
The selling of Insurance products by banks to their established customers is known as Bancassurance. Banks and insurance company come up with an arrangement wherein the bank sells the insurance products of specific Insurance companies (Life and or general Insurance companies) with whom they have tied up. In this arrangement, both banks and insurance companies…
Foreign Institutional Investors are SEBI authorised foreign based institutions. They invest in the Indian equity market and debt market through stock exchanges. Foreign Institutional investors most notably include hedge funds, insurance companies, pension funds and mutual funds. Click below to know; What is Universal Banking? What is Bancassurance? What is Stock Exchange and stock broker?…
Reserve Bank Notification No. FEMA 5/2000-RB, [dated May 3, 2000AP (DIR SERIES) (2002-2003)] 2. RBI circular No. 5 dated 15-7-2002, and 3. A.P. (DIR Series) Circular No. 45, dated May 14, 2002 give guidelines on various debits and credits allowed in NRE accounts. The following are the permitted debits and credits allowed in NRE accounts.…
Debt market is basically a market where fixed income instruments/securities issued by the central and state governments, Municipal corporations are traded. The fixed reimbursement securities may also be issued by commercial banks, financial institutions as well as corporate bodies. Regulators: The Government securities and bonds issued by banks and financial institutions are regulated by RBI.…
The fair practices code for debt collection framed by the banks is revolved around dignity and respect to customers. The codes are outlined based on recommendations of the Working Group on Lenders’ Liability Laws constituted by the Government of India. Banks security repossession policies were aimed at recovery of dues in the event of default…
