Indian Economy

What are Offshore Derivative Instruments or Participatory Notes?

Offshore Derivative Instruments (ODIs), also known as Participatory notes (p-notes) are instruments used by the foreign investors to invest in India’s securities markets without getting registered with the SEBI. Securities include shares, bonds and derivatives. In the article on foreign investment, we learnt that Foreign Institutional Investors (FII) and their sub-accounts have to register themselves with SEBI to …

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India Jumps to 100th Rank In Ease of Doing Business Report

India moved up 30 ranks in the World Bank’s ‘Ease of Doing Business’ report for 2018. It ranks 100th out of 190 countries, up from 130 in the 2017 report. India’s distance to frontier score has also improved to 60.76 from 56.05. The distance to frontier is an absolute measure that shows how far a country …

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What is driving India’s stock market to record highs?

The stock market indices- BSE Sensex and NSE Nifty- have been rising continuously since the beginning of 2017.  Sensex and Nifty are supposed to be the indicators of the economic health of a country. (Read: What is Sensex and how is it calculated?) So the question is, why are the stock markets booming despite slowing GDP …

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Foreign Exchange Reserves of India – Explained

The Foreign Exchange Reserves of India rose past $400 billion for the first time ever in September 2017. India has the world’s eighth largest foreign exchange reserves. This list is headed by China and Japan. Foreign exchange (FOREX) reserves are the assets held by a Central Bank of a country in foreign currencies. The Central …

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The Bank Recapitalisation Bond- Explained

In an announcement made on 24th October 2017, the Government decided to infuse Rs. 2.11 lakh crore capital into the public sector banks (PSBs) over the next 2 years. Since the Government is the majority shareholder in the public sector banks, it has to provide equity capital if the banks are struggling. This injection of capital is …

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Types of Foreign Investment- Decoded- FDI, FII, FPI and QFI

There are different types of foreign investment. Foreign investors can invest in India either through Foreign Direct Investment (FDI) or Foreign Institutional Investment (FII). Types of Foreign Investment 1) Foreign Direct Investment Foreign direct investment (FDI) is when a foreign company or individual makes an investment in India that involves either (i) establishing new business …

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Interconnection Usage Charges IUC cut by TRAI- Explained

The Telecom Regulatory Authority of India (TRAI) has slashed Interconnection Usage Charges (IUC) from 14 paise per minute to 6 paise per minute from Oct 1, 2017. TRAI has also decided to abolish the IUC regime completely by 2020 and move to a Bill and Keep (BAK) regime. What is Interconnection Usage Charges (IUC)? IUC …

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