What is Mibor?
MIBOR stands acronym for ‘Mumbai Inter- bank Outright Rate’, the benchmark of the Indian call money market. It is the rate at which banks borrow unsecured funds from one another in the inter bank market. The bid rate on how much interest banks would pay to borrow money on a short-term basis from other institutions…
Read article
What is a strategic alliance?
A strategic alliance is an agreement between two or more independent organizations that agree to share resources to undertake a specific, mutually beneficial objective. The strategic alliance is akin to partnership project, the relation fall short of legally banded partnership. The agreement may be formal or informal in nature, but each party’s responsibilities must be…
Read article
What are depository receipts –ADR, GDR and IDR?
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…
Read articleWhat is a Participatory Note?
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…
Read article
What is a scheduled Commercial bank?
Scheduled Commercial Banks in India are those banks which are included in the second schedule to Reserve Bank of India Acts 1934. Scheduled Commercial Banks in India are categorised in five different groups according to their ownership and/or nature of operation. These bank groups are: (i) State Bank of India (ii) Nationalised Banks, (iii) Regional…
Who is Registrars to an Issue?
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?…
Read article