RBI revises norms for issuance of commercial Papers(CP) and Non-Convertible Debentures (NCD)
The Reserve Bank of India (RBI) in its Notification No.FMRD.DIRD.10/14.02.001/2023-24 dated January 03, 2024, introduced certain changes in the Master Direction norms relating to Commercial Paper and Non-Convertible Debentures of original or initial maturity up to one year. The new direction is effective from April 1, 2024. Commercial Paper (CP) is an unsecured money market…
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Role of Primary Dealers (PDs) in India
Primary dealers are registered entities with the RBI who have the license to purchase and sell government securities. Primary Dealers can also be referred to as Merchant Bankers for the Government of India as only they are allowed to underwrite primary issues of government. RBI issues government securities of the Government. A primary dealer buys…
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Know all about Angel Investors and Angel Funds
A startup company as the name says is a company in the initial stages of business. The start-up companies might have shown promise for profits, but still need capital to develop products or grow. Funding sources for these companies include family and friends, venture capitalists, crowdfunding, and loans. In such cases, angel investors come into…
Read article What is a Capital Market?
Capital market is a market for long-term debt and equity shares. The Debt Market is the market where fixed-income securities of various types and features are issued and traded. Debt Markets are, therefore, markets for fixed-income securities issued by the Central and State Governments, Municipal Corporations, banks, and financial institutions. A share may be bought…
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What are G-sec/Government securities?
[This post elucidates what is a Government stock, who is all buyers of Government securities, why banks invest in Government securities beyond SLR requirement, advantages, and a brief on the issuance of Government Securities] What is G-sec? Government security (G-sec) is a form of security issued by the Government through a notification in the official…
Benefits and risks of Interconnectedness of Banks
Banks can be connected in several ways. The following are examples of the interconnectedness of Banks. UPI live members: A list of bank names live on UPI, whose customers can use UPI to transfer, pay, or collect money directly from one bank account to another bank account. This is the best example of the interconnectedness…
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