Different types of SWAP derivatives and RBI guidelines on CDS contract
[The most popular swaps are Commodity Swaps, Currency Swaps, Interest rate Swaps, and Credit Default Swap (CDS)] In simple words, a Swap is an act of exchanging one thing for another. A financial derivative swap is an agreement between two counterparties (a buyer is a counterparty to a seller) to exchange financial instruments, cash flows,…
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Complete guide on derivatives and Derivatives Market
[This article explains what is a Derivative- History of Derivatives – The size of the Derivatives Market – Underlying Assets – Exchange Traded and Over-the-Counter Markets – Participants in the Derivatives Market, – Functions of Derivatives – Types of Derivatives – Forward Contracts– Futures – Options and Swaps ] Definition: Derivative securities are those whose…
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Debt Market: Definition, instruments and features explained
A tradable form of loan is normally termed as a Debt Instrument. They are obligations of the issuer of such instrument as regards certain future cash flow representing Interest & Principal, which the issuer would pay to the legal owner of the Instrument. Debt Instruments are of various types. The distinctive types of the Debt…
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Meaning and features of Treasury Bills:
Treasury bills or T-bills, are money market instruments issued by the Government of India. They are primarily short-term borrowing tools and are presently issued in three tenors, namely, 91 days, 182 days,s and 364 days. Funds collected through such tools are typically used to meet short-term requirements of the government and, hence, to reduce the…
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Now it is mandatory to provide a Key Fact Statement to the retail and MSME borowers
On Thursday, February 8, 2024, the RBI Governor Shaktikanta Das in his Statement of development regulatory policy, announced, sets out various developmental and regulatory policy measures relating to (i) Financial Markets; (ii) Regulations; and (iii) Payment Systems and Fintech. Key Fact Statement (KFS): In the recent past RBI has announced several measures to foster greater…
RBI plans to enhance robustness of AePS, secure framework for digital currency and digital payments
In the Statement of Development Regulatory Policy announced on Thursday, the Governor of RBI sets out various developmental and regulatory policy measures relating to Payment Systems and Fintech. Aadhaar Enabled Payment System: In 2023, more than 37 crore users undertook Aadhaar Enabled Payment System (AePS) transactions, which points to the important role played by AePS…
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