Anchor investors or cornerstone investors, are institutional investors, like mutual funds and pension funds, who are offered shares in an IPO a day before the offer opens. They ‘anchor’ the issue by agreeing to subscribe to shares at Continue Reading
Assets under management (AUM) are the overall market value of assets that a mutual fund holds. The fund manager manages these assets and takes investment decisions on behalf of investors. AUM is an indicator of the size and success of Continue Reading
Offer for Sale (OFS) is an electronic platform based mechanism to help promoters of listed companies dilute their stake. The bidders include individuals, companies, qualified institutional buyers and foreign institutional investors. The facility is available on the BSE and NSE. Continue Reading
Public credit registry (PCR) is a single point information repository that will capture all relevant information about individual and corporate borrowers in one place. It will also allow the borrowers to access their own credit history. PCR will enable banks Continue Reading
Supplementary Demands for Grants are additional grants sought by the government to meet its expenditure. No expenditure in excess of the sums authorised by Parliament can be incurred without its sanction. Whenever a need arises to incur extra expenditure, a Continue Reading
Commercial paper (CP) is an unsecured money market instrument issued by eligible companies (minimum tangible networth of Rs 4 crore) to raise short term funds for their operations. They are issued either in the form of a promissory note or in Continue Reading
The inter-creditor agreement (ICA) is a government initiative to facilitate faster resolution of bad loans. It covers all corporate borrowers with loans of Rs. 50 crore or more under consortium lending. The lenders under the ICA jointly appoint a lead lender ( Continue Reading
Preferential Allotment is allotment of fully paid up specified securities (such as equity shares, fully or partly convertible debentures) by a listed company, to a select group of investors. on a preferential basis u/s 62 of the Companies Act, 2013. Preferential Continue Reading
A government security (G-Sec) is a tradable debt instrument issued by the government. Short term G-Sec are called Treasury bills (T-bills) with maturities of less than one year, while long term G-Sec are called government bonds or dated securities with Continue Reading
Open market operations are conducted by the RBI by way of sale or purchase of Government securities (G-secs) and Treasury Bills (T-Bills) to adjust the rupee liquidity conditions in the market on a durable basis. The objective of OMO is Continue Reading
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