Integrated Treasury operation in Banks explained

The treasury management (or treasury operations) can be explained as the management of the best possible use of surplus funds, maintain liquidity, reduce the overall cost of funds, and mitigate operational and financial risk. Traditionally, banks used to have two separate departments for treasury operations of a bank namely the domestic treasury/investment operations of a…

Hereafter participants can settle the ACU transactions in ACU Dollar or ACU Euro or in ACU Japanese Yen

In the settlement system under the Asian Clearing Union (ACU) Mechanism, all instruments of payments are required to be denominated in Asian Monetary Unit. The Asian Monetary Unit is the common unit of account of ACU and is equivalent in value to one U.S.Dollar. Hitherto, the Asian Monetary Unit was denominated only as ACU dollar.[…

Who is an FVCI?

FVCI stands acronym for Foreign Venture Capital Investor’ (FVCI).  FVCIs are investors incorporated and established outside India and registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000. They can make an investment in India in terms of schedule 7 of FEMA…

What is meant by Foreign Investment, Foreign Direct Investment, and Foreign Portfolio Investment?

This article distinguishes amongst foreign investment, Foreign Direct Investment, Foreign Portfolio investments, Qualified Foreign Investor (QFI), Foreign Institutional Investor (FII), etc. Foreign Investment: Any investment made by a person resident outside India on a repatriable basis in capital instruments of an Indian company or to the capital of a Limited Liability Partnership (LLP) is known…

RBI permits Inter-bank dealings beyond on-shore market hours

The Reserve Bank of India added the following section to Part C (Inter-Bank Foreign Exchange Dealings) of the Master Direction- Risk Management and Inter-Bank Dealings. “Transactions with person residents outside India, through their foreign branches and subsidiaries may also be undertaken beyond onshore market hours.” The RBI notification issued by RBI on Monday (January 6)…