Explained: Corporate Bond Market
Corporate bonds are debt securities issued by private and public companies in the market to raise funds from investors. These bonds provide fixed payments of interest and these bonds are less risky investments compared to stocks. The bond market is the collective name given to all trades and issues of debt securities and includes corporate,…
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What is an Inter-corporate deposit?
Corporates with a short-term surplus can place their deposits with Inter Corporate Deposits based on the ongoing rates of collateralised borrowing and lending obligation (CBLO), and Call Rates in the Money Market. The minimum period of deposits should be starting from a minimum of 7 days in the form of Inter Corporate Deposits (ICD). In…
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Basic concepts on ‘EASE’ explained
Enhanced Access & Service Excellence (EASE) was conceptualized to improve Risk assessment, NPA management, deepening financial inclusion, enhancing Customer service, initiating Digital transformation, Retail and MSME Credit off-take, developing Analytical capabilities, HR transformation and Governance, etc. The Government of India and Public Sector Banks (PSBs) jointly committed to and launched a common PSB Reforms Agenda…
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Definition of Bad Banks and NARCL in India
A bad bank is simply an Asset Reconstruction Company (ARC) designed to absorb bad loans or NPA accounts of banks that are written off or deemed by banks as doubtful or lost assets. These are the assets against which banks have already set aside money by way of provisions to cover the losses. Banks sell…
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Functions of the Securities and Exchange Board of India-SEBI
The Securities and Exchange Board of India was constituted as a non-statutory body on April 12, 1988, through a resolution of the Government of India and was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force…
Role of Pension Fund Regulatory and Development Authority (PFRDA)
Pension Fund Regulatory and Development Authority (PFRDA) is a regulatory body established in 2003 with its headquarters in New Delhi. PFRDA was initially designed for government employees exclusively, but its services were subsequently expanded to include all Indian nationals and NRIs, including self-employed persons. On 23rd August 2003, the Interim Pension Fund Regulatory & Development…
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