Banks in India with a net worth of `100 crore and above can undertake credit card business either departmentally or through a subsidiary company set up for the purpose. They can also undertake domestic credit card business by entering into tie-up arrangements with one of the banks already having arrangements for the issue of credit…
A Credit card holder is the customer, or consumer, who is using the card for payment or cash withdrawal. Credit card holders can also add authorized users to their account. The authorized user can make purchases, but the primary holder is still responsible for the debt. Credit card issuer: Financial institutions, usually banks and NBFCs,…
CRA 2010 is an Act to consolidate the law to regulate the acceptance and utilisation of foreign contributions or foreign hospitality by certain individuals or associations or companies and prohibit acceptance and utilisation of foreign contributions or foreign hospitality for any activities determinantal to the national interest and matters connected therewith or incidental thereto. This…
Monitoring of Transactions under KYC norms is a process that involves tracking customer transactions to identify suspicious activity and potential fraud. The customer risk profile is created at the time of opening a bank account and is used to monitor their transactions. Transaction monitoring provides enterprises with the tools to detect unusual transactional activity using…
Banks use wire transfers as an expeditious method for transferring funds between banks. The Reserve Bank of India (RBI) has several regulations for wire transfers, including transactions occurring within the national boundaries of a country or from one country to another. As wire transfers do not involve the actual movement of currency, they are considered…
Derivatives are financial instruments whose value is derived from the underlying assets, such as commodities, stocks, bonds, currencies, or interest rates. Common types of derivatives include futures, options, swaps, and forwards. Futures contracts are available on Equities, Indices, Currency and Commodities. Derivatives can be traded over-the-counter (OTC) or through a regulated exchange. Derivative contracts generally…
The Reserve Bank of India (RBI) revised guidelines for credit default swaps (CDS which is effective from May 9, 2022. CDS is a contract in which a counterparty (seller) commits to compensate the other counterparty (buyer) for the loss in the value of an underlying debt instrument.As per RBI guidelines,CDS directions of Central Bank will…
The Issuer of Initial Public Offering (IPO) should be a company incorporated under the Companies Act 1956 / 2013 in India. A company with a profitable track record (in the last 3 financial years), a net worth of Rs. 3 crore, a debt-to-equity ratio below 2:1, and a pre-IPO market cap of Rs. 100 crore,…
Qualified Institutional Placement (QIP) may be defined as the allotment of securities by a listed company to Qualified Institutional buyers on a “private placement basis”. Private Placement means an offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) through the…
The primary market is where companies and governments issue securities, such as Shares, and Bonds, for the first time, and sell them directly to investors. The primary market is also known as the new issues market. The primary market is where companies offer their shares for the first time to the general public, the offer…