Monitoring of Transactions under KYC norms
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…
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Wire Transfers, Other Operations – Regulations
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…
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Documentation for Derivatives explained
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…
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Overview : Credit Default Swaps (CDS)
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…
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Explained: Eligibility Norms for Making Capital Issues
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,…
View: Qualified Institutional Placement (QIP)
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…
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