Transformation of Foreign exchange market in India
Before the 1991 reforms, the foreign exchange market was virtually absent. Exchange earners were required to buy and sell foreign currencies through Authorised Dealers at the Reserve Bank reference rate. In this highly regulated system, very few transactions used to take place among the authorised dealers, and trades were required to be squared off by…
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Transformation of Government securities market
Government security (G-sec) is a form of security issued by the Government through a notification in the official Gazette. These securities are created by the Government to raise loans from the public or for any other purposes. A Government Promissory Note (GPN) payable to or to the order of a certain person; a bearer bond…
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Transformation of Capital market in India
The Securities and Exchange Board of India (SEBI) was set up in 1988 and made the regulator of the capital market under the SEBI Act, 1992. In May 1992, the Government abolished the Capital Issues Control Act, and the functions of the capital issues controller were entrusted to SEBI. As a regulator of the Capital…
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Transformation of Credit market in India
Broadly, a credit market is a market for borrowing money in the form of bank loans, bonds, etc. The credit market is also known as the debt market since it deals in fixed-income instruments like bonds, treasury bills, commercial paper, and debt offerings such as notes and securitized obligations, collateralized debt obligations (CDOs)/(mortgage-backed securities), and…
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Transformation of Payment systems in India
The Payment and Settlement System (PSS) Act, 2007 provides for the regulation and supervision of payment systems in India and designates the Reserve Bank of India (Reserve Bank) as the authority for that purpose and all related matters. The rapid developments in Payment Systems and technology have led to the implementation of major reforms of…
Explained: Trading of Repo in Corporate Debt Securities
‘Corporate Debt Security’ means non-convertible debt securities, which create or acknowledge indebtedness, including debentures, bonds, and such other securities of a company or a body corporate constituted by or under a Central or State Act, whether constituting a charge on the assets of the company or body corporate or not, but does not include debt…
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