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Reverse book building is an electronic screen-based bidding process employed by a company, proposing to voluntarily delist its securities, to discover the fair price for repurchasing its shares. The promoter appoints merchant banker and a trading member for placing bids Continue Reading
Commodity margin money is the amount that a trader has to deposit with his broker before trading in commodities. It is expressed as a percentage of the contract value and depends on the traded commodity and the exchange platform. The Continue Reading
Mutual funds are required to maintain voluminous records of investors’ transactions on a day-to-day basis. Registrar and transfer agents (RTAs) are trusts or institutions that register and maintain detailed records of such transactions to help mutual funds save Continue Reading
A private placement is an offer by a company to private investors to subscribe to its securities (such as equity and debentures) u/s 42 of the Companies Act, 2013. The invitation is made through issue of offer letter to the investors. Continue Reading
An asset management company (AMC) is a company registered with SEBI, which makes asset management decisions for the mutual fund and is also involved in its daily administration. They acts as an investment advisors to the fund and invest their Continue Reading
Share buy-back is a process whereby a listed company utilises its excess cash reserves to repurchase shares from the existing shareholders, usually at a price near to or higher than the prevailing market price. A buyback can be done either Continue Reading
An employee stock ownership plan (ESOP) is an employee benefit plan under which the employees are given the right, called stock options, to acquire the shares of their employer company at a predetermined exercise price. The exercise price, also called Continue Reading
Delisting of securities means removal of securities of a listed company from a stock exchange. After delisting, the securities of that company would no longer be traded on that stock exchange. Delisting can be of two types- Voluntary Delisting and Continue Reading
External Commercial Borrowings (ECBs) are commercial loans raised by resident borrowers from recognised non-resident entities. ECBs should conform to regulatory parameters such as minimum maturity period, permitted end-use of funds, maximum all-in-cost ceilings etc. ECBs instruments include commercial bank loans, Continue Reading
Foreign Portfolio Investment (FPI) is investment by non-residents in Indian securities such as listed equity shares, government securities, T-Bills, Commercial Papers, Corporate bonds etc. through the capital market route. FPI is distinct from FDI and comprises of foreign institutional investors ( Continue Reading
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