What is Inter Bank Participation Certificate – IBPC?
Banks troubled with capital constraints sell their “excess baggage” of loan assets to other banks in the form of ‘Inter Bank Participation Certificate (IBPC). These IBPC transactions are aimed to fill the short-term requirements of banks and are typically bought back by the seller bank within three to four months, depending on the agreement. Reserve…
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What is Basis Point Value?
In the financial market many investors prefer for investments in bond portfolio which can provide them the decent yields with a lower level of volatility than equities. Further, the bonds issued by corporates offer with a higher income than the money market funds or bank instruments. However, the volatility in interest rate in the financial…
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WHAT IS DELIVERY VERSUS PAYMENT ?
Delivery versus payment (DvP) is the mode of settlement system that stipulates that cash payment must be made prior to or simultaneously with the delivery of the security. The system ensures that unless the funds are paid, the securities are not delivered and vice versa and it completely eliminates the settlement risk in transactions. The…
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Who are Gilt Account Holders (GAHs)?
‘Gilts’ is the short form for gilt-edged securities- so called because they carry no risk. Gilt Account Holder (GAH)/Constituent means an entity or a person including ‘a person resident outside India’ maintaining a “Gilt Account” with a Custodian.[“Custodian” is a primary member (PM) permitted by the Reserve Bank of India to open and maintain Constituent…
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What is corporate governance?
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests between companies and their stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the society. Corporate governance specifies the distribution of rights and responsibilities among different participants in the…
Venture capital and Various types of alternate investment Funds
Alternative Investment Fund or AIF refers to funds established or incorporated in India which is a privately pooled investment vehicle that collects funds from super-rich investors, whether Indian or foreign, for investing by a defined investment policy for the benefit of its investors. Category I AIF: * Venture capital funds (Including Angel Funds) * SME…
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