An upgrade of India’s sovereign rating right in the middle of one of our history’s toughest economic reform programs is clearly a shot in the arm. It is a booster shot for global sentiment on India, capital raising exercises by government and companies, and domestic sentiment. This will further speed…
* This post was updated on 30 November 2020 An Introduction As banking systems in multiple countries evolved, the need to have an international agreement that bound them arose. The idea was to addresses regulation, supervision, and risk management for banks across the globe. The Basel Committee on Bank…
Indians don’t fancy financial products much. A mutual fund, ETF, or ULIP is supposedly meant for investors who don’t have any idea about equities. If one can’t choose the right stocks, he is perceived as a candidate for a mutual fund scheme. Investors genuinely believe that these products don’t have…
What are non-convertible debentures and why are they issued? A company can raise capital either by offering an ownership stake (equity) or by borrowing money (debt). Debt is primarily issued in the form of loans, bonds, or debentures. Debentures are corporate debt instruments. Some may be converted into equity shares.…
Every market opens up newer investment opportunities. There will always be businesses that nobody wants to own. Or at least, only a few people would seek to venture into them. Businesses that are shunned often drift in valuations, until they reach extremely attractive levels. Then, an event or news or…
The RBI first issued 8% bonds in 2003. As the name suggests, they pay 8% interest per annum and the interest income is taxable. Investors need to invest a minimum of Rs. 1,000 there is no ceiling or limit on the investment amount. Normally, the bonds have a maturity of six years.…
Markets have a habit of surprising investors. The surprise tends to vary in intensity and impact. How markets react to surprises, determines the extent. When the intensity is strong, the impact is likely to be high. Markets always tend to be unprepared for surprises. This is ironic considering that markets…
54 EC Bonds are popularly known for the tax benefits they provide under Section 54 EC of the Income Tax Act. These bonds are typically issued by the Power Finance Corp (PFC), Rural Electrification Company (REC), and the National Highways Authority of India (NHAI).