Why in News? The Company Law Committee has recommended decriminalizing 12 offences under the Limited Liability Partnership(LLP) Act. It has also said that LLPs should be allowed to issue non-convertible debentures(NCDs) to raise funds. It will help them in improving the ease of doing business for LLP firms. Facts: Limited Liability Partnership(LLP): It is an… Continue reading Decriminalisation of offences under LLP Act
Tag: ECO_6
Green bonds
Why in News? According to the Reserve Bank of India(RBI), the cost of issuing green bonds in India has generally remained higher compared to other bonds. It is largely due to asymmetric information. About Green Bonds: It is a debt instrument just like any other normal bond, issued by an issuer for raising funds. The only difference is that these instruments are designed… Continue reading Green bonds
SEBI moots entry norms to set up stock exchanges
News: Securities and Exchange Board of India (SEBI) has proposed a new framework for ownership of Market Infrastructure Institutions(MII) to facilitate new entrants to set up stock exchanges and depositories. Facts: What is Market Infrastructure? It is a system administered by a public organisation or other public instrumentality, or a private and regulated association or entity, that… Continue reading SEBI moots entry norms to set up stock exchanges
What are Municipal Bonds?
Source: The Indian Express News: Vadodara Municipal Corporation(VMC) is expected to launch municipal bonds and will become the third Urban Local Body(ULB) in Gujarat to use municipal bonds to raise money. Facts: Ahmedabad was the first city in South Asia to launch a municipal bond in 1998 which was completely subscribed. The Surat Municipal Corporation was… Continue reading What are Municipal Bonds?
Zero-coupon bonds: Innovative govt tool to fund PSBs, keep the deficit in check
Zero-coupon bonds: Source: The Indian Express News: The government has used Zero-Coupon Bonds to recapitalize Punjab & Sind Bank by issuing the lender Rs 5,500-crore worth of non-interest bearing bonds valued at par. Facts: What are Traditional Zero-Coupon Bonds? These are debt security that does not pay interest but instead trades at a deep discount, rendering a… Continue reading Zero-coupon bonds: Innovative govt tool to fund PSBs, keep the deficit in check
India and UN-Based Better Than Cash Alliance organizes learning on fintech solutions
Source: Click here News: India and UN-Based Better Than Cash Alliance organized a joint Peer learning exchange on fintech solutions for responsible digital payments at the last mile. Facts: Better Than Cash Alliance: It was created in 2012 as a partnership of governments, companies and international organizations that accelerates the transition from cash to responsible digital payments. Launched… Continue reading India and UN-Based Better Than Cash Alliance organizes learning on fintech solutions
Exclusive arbitration body for financial disputes
Context: India needs a special arbitration body for financial disputes. Why financial institutions resort to litigation instead of arbitration for settling disputes? Courts are more powerful: Litigation, offers a more potent forum for recovery of money and resolving financial disputes as the judges are vested with stronger powers than an arbitrator. such as interim measures,… Continue reading Exclusive arbitration body for financial disputes
Explained: What are Negative Bond Yields?
News: The demand for negative yield bonds is on rise in the global market. Source: Click Here Facts: Negative-yield bonds: These are debt instruments that offer to pay the investor a maturity amount lower than the purchase price of the bond. These are generally issued by central banks or governments and investors pay interest to the borrower… Continue reading Explained: What are Negative Bond Yields?
RBI sets up Reserve Bank Innovation Hub(RBIH)
News: Reserve Bank of India(RBI) has announced the setting up of an Innovation Hub under the chairmanship of Kris Gopalakrishnan.It has also selected two entities for testing products under regulatory sandbox structure. Facts: Aim: To create an ecosystem that would focus on promoting access to financial services and products and will also promote financial inclusion. Features: The… Continue reading RBI sets up Reserve Bank Innovation Hub(RBIH)
Divestment in fossil fuels
What do you mean by Divestment movement in Fossil fuels? Divestment is the process by which money put into stocks and bonds of certain companies is withdrawn. A divestment is the opposite of an investment. For example, recently Goldman Sachs announced that it would no longer finance new oil drilling in the Arctic National Wildlife… Continue reading Divestment in fossil fuels
