Financial Markets-2 Flashcards
Sebi permitted commodity derivatives to introduce — on indices.
True of false-
Ownership of derivative also means ownership of the underlying asset.
Futures.
-False- It does not mean ownership of the asset.
-A derivative is a contract between two or more parties whose value is based on an
agreed- upon underlying financial asset (like a security) or set of assets (like an index).
-Common underlying instruments include
bonds, commodities, currencies, market
indexes, stocks etc.
-Derivatives include futures, options, swaps etc.
Earlier, —- was permitted in commodity derivative markets.
The option— is the total amount that investors pay for an option.
Commodity options.
Premium
-Major commodity trading exchanges in India include: Multi Commodity Exchange, National Commodity and Derivatives Exchange, National Multi Commodity Exchange etc.
P-notes investment- —- and hit a — in dec 19.
— since —.
Reasons for decline-
declined and 11- year low- Declining since 2017.
-Tightening of rules on P-notes
• Liberalised norms for foreign portfolio
investors (FPIs) based on recommendations
of H.R. Khan committee
• Declining equity inflows
• Profitability of Indian corporates has
worsened over the last decade.
P-notes- offshore derivative instruments of underlying — and issued by —-. dont have to register with — directly. serves as — money and saves money.
Indian assets- FPIs- Sebi.
quick money
Bilateral netting was proposed in —-. Agreement to offset claims to determine a single net payment obligation.—- and — are netted off.
Budget 2020.
Payables and recievables are netted off.
Bilateral netting - —-
Multilateral netting through a single counterparty- —
Not allowed.
Allowed.
An —- market is a decentralized market in which market participants trade stocks, commodities, currencies or other instruments directly between two parties and —-a central exchange or broker. —-markets do not have physical locations; instead, trading is conducted —.
over-the-counter (OTC)- without.
Over-the-counter - Electronically.
Without bilateral netting-
Bilateral netting will-
Global regulatory bodies also support it.
Banks have
had to set aside higher capital against their
trades in the over-the-counter (OTC) market,
which impacts their ability to participate in the
market. Moreover, it also increases the
systemic risk during defaults.
- help reduce hedging
costs and liquidity needs and will also help devlp corporate default swaps market.
Govt announced creation of AIF with the corpus of — for —–. AIF is —- pooled investment vehicle, both — and — allowed with a defined investment policy.
25,000 crore- completion of stalled housing projects.
Privately.
Indian and private investors.
AIFs are under — regulation and categorised into- Cat I —–, Cat II —–, Cat III ——,
Sebi.
Category I (venture capital funds, SME
funds, social venture funds etc.);
Category II (real estate funds, private equity funds, funds for distressed assets, etc.) and
Category III (hedge funds, PIPE Funds, etc.)
NIIF of India and —-invested 600 million dollars through NIIF master fund for investment in —— with focus on—–.
Canada pension plan invest board (CPPIB) - Core infrastructure sectors in India, with a focus on transportation,
energy and urban infrastructure.
NIIF is an — under —. Raises debt to invest in the —–. Acts like banker’s bank in — and govt owns — of it.
AIF-SEBI- equity of infrastructure finance companies.
Infra financing- 49%
SAT i.e. Securities appellate trib- —- body under—-. Hears appeals against orders passed by—–, –, —.
Statutory body- SEBI act, 1992.
SEBI, Pension fund regulatory and devlp authority and IRDAI.
Data lake project by —. to keep tab on —-.
SEBI- tab on possible market manipulations.
A data lake is a centralized repository that allows anyone to
store all structured and
unstructured data at any scale.
Insider trading is prohibited under — and —.
SEBI ACT 1992 and companies act 2013.
