What are the roles of SEBI?

Security Exchange Board of India  (SEBI) was established as the regulator for the Stock and Security market in India under the Securities and Exchange Board of India Act 1992. The main object of SEBI is to protect the interests of investors in securities and promotes the development of the securities market through appropriate regulations. The…

RRBs are allowed to issue PDI

The Reserve Bank of India vide. Circular No. DOR.RRB.No.21/31.01.001/2019-20 dated November 1, 2019, permitted RRBs (Regional Rural Banks) to issue Perpetual Debt Instruments (PDI) eligible for inclusion as Tier 1 capital so as to maintain prescribed CRAR. The Perpetual Debt Instruments (PDI) is issued by way of bonds or debentures in Indian Rupees only. The…

What is Basis Point Value?

In the financial market many investors prefer for investments in bond portfolio which can provide them the decent yields with a lower level of volatility than equities.  Further, the bonds issued by corporates   offer with a higher income than the money market funds or bank instruments. However, the volatility in interest rate in the financial…

Convertible bonds, floating rate bonds and negative bonds

Convertible Bonds: Convertible bonds are exceptional securities that have features of both bonds and equity options. The holders of convertible bonds have the opportunity to convert bonds held by them into specified number of company’s equity shares during validity period for options mentioned in the bonds. The bond holder also receives the coupon payment till…

What are depository receipts –ADR, GDR and IDR?

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…