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…
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?…
Stock Exchange: A stock exchange is an organized and regulated financial market where securities (bonds, derivatives, shares) are bought and sold on behalf of the investors at prices governed by the demand and supply for the specific stock. The Stock exchanges provide clearing house facilities for netting payments and securities delivery. The Clearinghouse guarantees all…
Updated 31.12.2023 A Depository refers to a place or entity that holds financial securities in a dematerialized form. In the Indian capital market, this term has a lot of relevance where they hold securities in dematerialized (Demat*) form. In demat form, all physical share certificates were converted into electronic form and the same was deposited…
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?…
The equity market represents the trading of equities known as stock market or share market. Debt market is basically a market where fixed income instruments/securities traded. The debt instruments are issued by the central and state governments, Municipal corporations, Banks, financial institutions and corporate. The nature of equity and debt instruments are vastly different with…
When a company plans to raise money from the public, it needs to provide the offer document (prospectus) containing detailed information about the business and financials of the company including details about its promoters, reason for raising money, how the money will be used, risks involved with investing in the company and so on. The…
Debentures are issued by corporates including NBFCs to raise resources for their upcoming expenses or their business expansions. In other words, debentures are unsecured loans taken by companies from the public (other than accepting deposits) by issuing instruments of debt, acknowledging money lent, and guaranteeing repayment with interest. The investors subscribe to debentures only based…
[This article explains the meaning of yield based and price based auction with the illustrations of yield based auction and auction Sale (Re-issue) of Government Securities] The Government securities are issued by way of auctions conducted by the RBI on the electronic platform called the NDS – Auction platform. The banks, Insurance Companies, Mutual Funds,…