Category: BANKING AND FINANCIAL MARKET

Merits and Demerits of Government securities

Dr. Toran Lal Verma

MERITS OF GOVERNMENT SECURITIES : Zero risk: Government securities are free from any risk as there are no chances of default and government assures payment of principal along with interest. interest is paid regularly: in government bonds interest is paid at regular intervals generally half yearly or quarterly. Liquidity: government securities can be bought and sold regularly and can be instantly converted Read More …

What are the functions of NSDL?

Dr. Toran Lal Verma

National Securities Depository Limited (NSDL) is a central securities depository of India with its office in Mumbai. It was established in August 1996 as the first electronic securities depository company in the country. NSDL is governed by the Depositories Act, 1996 and it works under the jurisdiction of the Securities and Exchange Board of India (SEBI). It has been promoted by the UTI, NSE, State Bank Read More …

FOREIGN DIRECT INVESTMENT

Dr. Toran Lal Verma

FOREIGN DIRECT INVESTMENT Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country. Thus,  if a foreign individual or institution invest in business interest in India, the investment will be known as FDI. It can be in the form of directly establishing a new business(greenfield investment) or in Read More …

TYPES OF UNDERWRITING

Dr. Toran Lal Verma

 TYPES OF UNDERWRITING different types of underwriting are as follows: Firm underwriting: Firm underwriting is an underwriting agreement where an underwriter agrees to buy a definite number of shares or debentures in addition to the shares or debentures he has already promised to  subscribe under the underwriting agreement. In firm underwriting, the underwriters are liable to take up the agreed number Read More …