http://www.subramoney.com/book-written-by-me/
What is a repo transaction? Every MBA student knows the word ‘Repo’ – however if you drill down and ask for its full form or what it means…you are in trouble!
So here is what an MBA student (Finance major) can say when confronted with the question – What is a repo transaction?
RE PO stands for [...]
If you have a financial planner with a ‘product sale’ mentality – especially who has sold loan products also in the past, there is a good chance that he would suggest leverage. Leverage means borrowing. So read on…
Financial planner: Borrowing sensibly is a good way to build wealth. Do a disciplined borrowing and you will [...]
I recently received the annual report of a financial services company. Like all financial services company this company also has an insurance business, a financial distribution company, a mutual fund, …the works.
A quick glance clearly shows that this company will NEVER make money in ANY of the abovementioned businesses during my life time. Surely over [...]
CSGL Account stands for Constituent Subsidiary General Ledger Account (phew!). Certain SGL holders like corporates, PF trusts, individuals, institutions, state governments, Nri, Ocbs, FIIs, – registered with Sebi/Rbi can open a CSGL account but not a SGL account.
It is a second SGL account at a PDO so that they can act as a custodian on [...]
For most Americans, Christmas has been Hijacked. Or whatever was left of Christmas after the dreaded R word, the non-bail out of the auto giants, but the top most question is: In the fraud dictionary,
Has Madoff replaced Ponzi?
Every year, I watch, good, honest, hard-working people go and lose a lot of money to some Ponzi [...]
No, this is not a class on futures and options, nor equity. However long term bonds also have a put and a call option.
An option that can be exercised by the issuer of the bond whereby the bond can be extinguished prior to the date of expiry is called a CALL option.
An option that can [...]
YOU may have heard of LIBOR – if you replace London by Mumbai, you will know what is MIBOR. A committee was set up for the development of debt market. According to their suggestion, NSE had developed MIBID (Mumbai Interbank Bid Rate) AND MIBOR (Mumbai Interbank Offer Rate) for the overnight market. This was launched [...]
If you have wondered what is a CDO, CMO, CP, CD…welcome to the first lesson. A commercial paper is a short term unsecured negotiable issuance promissory note instrument issued by corporate bodies to meet short term requirements of working capital.
It was issued for the first time (I think) in 1991 – maturity varies from 90 [...]
Now that you know what is the money market and debt markets, you will want to know who are the participants, won’t you?
Here they are:
Banks of all categories
Financial institutions
Primary Dealers (PDs)
Satellite dealers
Firms
Companies
Mutual funds, Insurance companies, FIIs, State governments, Nepal Rashtria Bank, Provident funds, trusts, research organisations, Individuals, Nris, OCBs, Intermediaries, brokers, RBI, and of course [...]
Cash Reserve Ratio (CRR) is a regulatory reserve requirement under section 42(1) of the Reserve Bank of India Act, 1934 which is to be maintained as CASH or CURRENT ACCOUNT balances with Reserve Bank of India, along with gold by all Scheduled Commercial Banks as a percentage of its Net Demand and Time Liabilities (NDTL).
The [...]