Primary dealers are registered entities with the RBI who have the license to purchase and sell government securities. Primary Dealers can also be referred to as Merchant Bankers for the Government of India as only they are allowed to underwrite primary issues of government. RBI issues government securities of the Government. A primary dealer buys…
A startup company as the name says is a company in the initial stages of business. The start-up companies might have shown promise for profits, but still need capital to develop products or grow. Funding sources for these companies include family and friends, venture capitalists, crowdfunding, and loans. In such cases, angel investors come into…
Capital market is a market for long-term debt and equity shares. The Debt Market is the market where fixed-income securities of various types and features are issued and traded. Debt Markets are, therefore, markets for fixed-income securities issued by the Central and State Governments, Municipal Corporations, banks, and financial institutions. A share may be bought…
The Reserve Bank of India on Monday issued revised instructions on Inoperative Accounts /Unclaimed Deposits in Banks. According to the revised guidelines, a savings/ current account shall be treated as inoperative, if for over two years there are no ‘customer-induced transactions’ in that account. Customer induced transactions are; (a) Financial transactions like debit/credit transactions in…
[This post elucidates what is a Government stock, who is all buyers of Government securities, why banks invest in Government securities beyond SLR requirement, advantages, and a brief on the issuance of Government Securities] What is G-sec? Government security (G-sec) is a form of security issued by the Government through a notification in the official…
Banks can be connected in several ways. The following are examples of the interconnectedness of Banks. UPI live members: A list of bank names live on UPI, whose customers can use UPI to transfer, pay, or collect money directly from one bank account to another bank account. This is the best example of the interconnectedness…
The story of the financial market is probably as old as the story of mankind. A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials, and precious metals, which are known in the financial markets as commodities.…
[Updated up to December 28, 2023, in terms of RBI circular dated 28.12.2023] MSME stands for Micro, Small and Medium Enterprises. MSMEs are businesses that produce, process, and preserve goods and commodities. The government of India (GoI), vide Gazette Notification S.O. 2119 (E) dated June 26, 2020, has notified new criteria for classifying the enterprises…
The holidays declared under the NI Act apply exclusively to the banks located within the administration area of a specific State or Union Territory. In other States and Union territories where it is not a holiday, banks remain open and allow normal banking transactions similar to any other working day. States and Union Territories of…
Market dynamics refer to the forces that change in the supply and demand curve and consequently, that influences the prices of a specific commodity or service in an economy. It is our common knowledge that market prices are determined via demand and supply. If the demand for a product is more than the supply, the…