What Is Sensex? What Is Nifty?

The Sensex and Nifty are “indexes”, index is basically an indicator which captures the price movement of shares. The full form of Sensex is Sensitive Index and of NIFTY National Fifty. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. BSE (Bombay Stock Exchange) Index Or …

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What Are Treasury Bills (T-Bills)?

Treasury Bills, or more commonly knows as T-Bills, are the bonds issued by Government. It is a short term (less than one year) government zero coupon bond. It represent short-term borrowings of the Government, as T-bills are a way for Government to raise money from the public. They are exempt from local and state taxes. These are discounted securities and …

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What Is ELSS Scheme?

ELSS ( Equity Linked Saving Scheme ) is another tax saving instrument along with your regular LIC, PPF etc. It is a type of mutual fund which is qualified for tax exemption under section 80 C, this comes under the overall exemption limit of Rupees One Lakh. It is just like a diversified equity fund where fund managers invest in …

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What Is Speed Clearing?

Speed Clearing refers to collection of outstation cheques through local clearing. In simple words, speed clearing means processing of outstation cheques electronically and without movement of cheques from the presentation centre (city where the cheque is presented) to drawee centre (city where the cheque is payable). This facility enables customers to place there checks payable anywhere in the country to …

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What Is A Foreign Currency Convertible Bond (FCCB)?

Foreign Currency Convertible Bonds (FCCB) is a type of convertible bond that are issued in a currency different than the issuer’s domestic currency. It means bonds issued under FCCB are subscribed by a non-resident in Foreign currency. For example, If you buying an Indian FCCB in UK then it means you can invest using your pounds and they will be …

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What Are Special Drawing Rights (SDRs)?

Special Drawing Right (SDR), is an international financing instrument created by the International Mutual Fund (IMF), and acts as a supplemental reserve for national banking systems. It is created in response to concerns about the limitation of Gold and US Dollar as the principal currency of the word trade and financial development. In decades past, when gold was used as …

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What Is Bancassurance?

Bancassurance is used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products. Bancassurance simply means selling of insurance products by banks. In this arrangement, insurance companies and banks undergo a tie-up, thereby allowing banks to sell the insurance products to its …

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What Is Open Market Operations(OMO)?

Open market operation is the means of implementing monetary policy by which a central bank, such as Reserve Bank Of India (RBI) in India, controls the term interest rate and the supply of base money within the economy. Generally speaking, Open market operation is buying and selling of government securities by a central bank in the open market in order …

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Abbreviations Of Finance, Banking & Insurance Terms

ACH – Automated Clearing House AIBD – Association of International Bond Dealers APR – Annual Percentage Rate AYP – Annual Percentage Yield BPLR – Benchmark Prime Lending Rate CBS – Core Banking Solution CD – Certificate Of Deposit CDS – Credit Default Swap CFD – Contract For Difference CIBIL – Credit Information Bureau (India) Limited

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What Are Money Market Mutual Funds?

Money market mutual funds is a mutual funds that invest solely in money market instruments. Money market instruments are form of debts that mature in less than one year and are very liquid. So, mutual funds which invest in debt instruments of short term with the sole objective of earning interest for their shareholders are called as money market mutual …

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Tax Benefits On Self Employment In India

India has a well developed tax structure, wherein the authority is clearly segregated the Central and State Governments and Local bodies. Central government has the authority to levy taxes on income. Self employment tax (SET) is the tax primarily levied upon individuals who work for themselves – self-employed people i.e., the people engaged in business or commercial activity of some …

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What Is A Tariff?

A tariff is a tax levied on imports or exports or you can say tariff is a tax imposed on imported goods. The word is derived from the Arabic word taārif, meaning ‘fees to be paid’. It adds to the cost of imported goods and is one of several trade policies that a country can enact. Every country has separate …

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An Overview Of Private Equity Investments & Funds

Private Equity in finance, is an asset class consisting of equity securities that are not publicly traded on a stock exchange. Here investors make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from very wealthy individuals and institutional investors who commit large sums …

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Indian Budget 2011 Highlights

Finance Minister has started presenting his sixth Budget in the Lok Sabha. The Highlights of the federal budget 2011 are follows:- Highlights Service tax to cover hotel accommodation above Rs 1,000 per day, A/C restaurants serving liquor. Air-conditioned hospitals with more than 25 beds come under service tax regime. More services to will come into service tax net. Ship owners …

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Difference Between Copyright, Trademark & Patent

Some people confuse between patents, copyrights and trademarks. These are three main types of intellectual property protections which have some similarities among each other, but each type is used for a specific type of work and serve different purpose. Copyright Copyright is a form of protection provided to the authors for there original work. It includes Literature, dramatic, musical, artistic …

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What Is Wash Trading In Stock Market?

Wash Trading is an illegal form of stock manipulation in which an investor simultaneously sells and buys shares in order to artificially increase trading volume and thus the stock price. It is an unethical practice designed to make it appear that a purchase and sale has occurred even though no change in ownership occurred. It is considered to be highly …

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