Derivatives meaning – Forward, Futures, Option & Swap Explained

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Derivatives meaning A derivative is a financial instrument that derives its value/ price from the value of another asset, known as an underlying asset. The common underlying assets are stocks, bonds, commodities, currencies, interest rates, etc. The basic types of derivatives are forward, futures, options,  and swap. Forward A forward contract is a contract between …

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Applications of the Blockchain technology in India

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The blockchain is the technology behind bitcoins. Though, people are divided on the opinion about the future of bitcoin, the technology behind it can have applications in many areas and have profound implications for commerce. Blockchain can be used to record and verify transactions, ownership etc without the involvement of any intermediary. (Read: Bitcoin & Blockchain- What …

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What are Offshore Derivative Instruments or Participatory Notes?

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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

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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?

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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

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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

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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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