Finance

Foreign Investment in India – FDI and FPI

Syllabus part- Primary and Secondary Markets (Forex, Money, Bond, Equity, etc.), functions, instruments, recent developments. It refers to the investment from residents, investors or corporation of other countries into India. Foreign capital can help fill the gaps between domestic savings and investment requirements. Government of India classifies the investments made by the foreign bodies based …

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Structure of Indian Forex Market

Players in forex market The major players in India’s Forex market are: Reserve Bank of India Authorised Dealers/Banks Foreign exchange brokers who act as intermediaries Customers who may be individuals, Corporates who need foreign exchange. Authorised Dealers RBI delegates power to entities to deal with foreign exchange and foreign securities. Section 2(c) of Foreign Exchange Management …

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Terminology related to Bond market – Buyback, Short sale, When Issued, DvP

Buyback of Securities Repurchase or buyback of G-Secs is a process whereby the Government of India and State Governments buyback their existing securities, by redeeming them prematurely, from the holders. The objectives of buyback can be reduction of cost (by buying back high coupon securities), reduction in the number of outstanding securities and improving liquidity …

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