Doubt Clearance Thread: UPSC 2021
"When in doubt, observe and ask questions. When certain, observe at length and ask many more questions."
Created this thread as a one stop solution for all members so that all the doubts wherein any conceptual clarification is required can be solved here.
sstarrr,LetsGetThisBread
@LetsGetThisBreadi think yes. earlier there was a limit of 6% on FPI investment in Gsec, but recently, on some specified gsec, rbi has eliminated the limit and 100% Foreign investment can be made
i guess you are talking about the VRR scheme for FPI's correct ??
My brain cells are working on limited capacity and my test scores make me feel dumb 👉🏻👈🏻
see go to basics, bonds/debt instruments and Equity diff. Now FDI is always in Equity and shares :) FPI can be in both debt and equity
Hope it clears your doubt !!
@LetsGetThisBreadi think yes. earlier there was a limit of 6% on FPI investment in Gsec, but recently, on some specified gsec, rbi has eliminated the limit and 100% Foreign investment can be made
I just got a question wrong in a test series, but they didn’t really give a clear explanation why, so googling told me that FPI is permissible, so it makes me think that the test series was considering the difference between fpi and fdi and therefore an incorrect option. Splitting hairs at this point
Dionysus,Is FDI allowed in purchase of g-secs?Gsec are bonds :P now answer this yourself
My brain cells are working on limited capacity and my test scores make me feel dumb 👉🏻👈🏻
see go to basics, bonds/debt instruments and Equity diff. Now FDI is always in Equity and shares :) FPI can be in both debt and equity
Still not quite there yet… 😬
Is FDI allowed in purchase of g-secs?Gsec are bonds :P now answer this yourself
My brain cells are working on limited capacity and my test scores make me feel dumb 👉🏻👈🏻
see go to basics, bonds/debt instruments and Equity diff. Now FDI is always in Equity and shares :) FPI can be in both debt and equity
Still not quite there yet… 😬
wait read this
FDI is done in equity and shares . Now reason for FDI to come in a country is economic growth . THey want management control for decisions.
FPI's are for quick money making . They invest in both Debt papers,bonds/ Equity shares . WHy so beocz bonds me they can sell it as soon as they fetch higher price in market . Equity me they will get good return due to booming economic growth .
FPI invests in gsec's subject to 6% upper bracket and 2% in SDLs
wait read this
FDI is done in equity and shares . Now reason for FDI to come in a country is economic growth . THey want management control for decisions.
FPI's are for quick money making . They invest in both Debt papers,bonds/ Equity shares . WHy so beocz bonds me they can sell it as soon as they fetch higher price in market . Equity me they will get good return due to booming economic growth .
FPI invests in gsec's subject to 6% upper bracket and 2% in SDLs
Now you have confused me. Do we really have to make a difference as like FPI and FDI while talking about foriegn invetsments in g-secs. Foreign investment is foriegn investment. I think the difference b/w FPI and FDI is mainly due to the how much one invests in the company and would make no sense here. (10% or the above rule)
One more doubt : when talking about foriegn invetsments, are all the FPI's allowed to investment in G-secs w/o limit or there is difference b/w NRI's and others.
Is FDI allowed in purchase of g-secs?Gsec are bonds :P now answer this yourself
My brain cells are working on limited capacity and my test scores make me feel dumb 👉🏻👈🏻
see go to basics, bonds/debt instruments and Equity diff. Now FDI is always in Equity and shares :) FPI can be in both debt and equity
Still not quite there yet… 😬
wait read this
FDI is done in equity and shares . Now reason for FDI to come in a country is economic growth . THey want management control for decisions.
FPI's are for quick money making . They invest in both Debt papers,bonds/ Equity shares . WHy so beocz bonds me they can sell it as soon as they fetch higher price in market . Equity me they will get good return due to booming economic growth .
FPI invests in gsec's subject to 6% upper bracket and 2% in SDLs
Wow this is really helpful. Thank you :)
wait read this
FDI is done in equity and shares . Now reason for FDI to come in a country is economic growth . THey want management control for decisions.
FPI's are for quick money making . They invest in both Debt papers,bonds/ Equity shares . WHy so beocz bonds me they can sell it as soon as they fetch higher price in market . Equity me they will get good return due to booming economic growth .
FPI invests in gsec's subject to 6% upper bracket and 2% in SDLs
Now you have confused me. Do we really have to make a difference as like FPI and FDI while talking about foriegn invetsments in g-secs. Foreign investment is foriegn investment. I think the difference b/w FPI and FDI is mainly due to the how much one invests in the company and would make no sense here. (10% or the above rule)
One more doubt : when talking about foriegn invetsments, are all the FPI's allowed to investment in G-secs w/o limit or there is difference b/w NRI's and others.
Foreign investment in Indian , you may talk about the total foreign investment
When talking about Gsec its only FPIs , think naa how can you invest as FDI (equity one) in gsecs (which is a debt /bond instrument). There is difference between FDI /FPI ( company one which you have stated ) . here you can say FDI/FPI both can invest in equity / shares . however as debt / bond only FPIs can invest .
Yes all are allowed to invest but there is cap for non Indian . However the new scheme stated early as VRR route gives a room to increase the limit for FPIs to invest more than prescribed limit given few cavets. (No need to remember this for UPSC , but if ur interested to know just search VRR scheme for FPIs .)
Hope this helps. Also a suggestion if you get confused with above explanation just omit this discussion else you'll waste time . JUST read the basic concepts that would suffice for exam. :)
sstarrr,
which charter act threw open civil services to indians - 1833 or 1853?
1833.
"The section 87 of the Charter Act of 1833, declared that “no native of the British territories in India, nor any natural born subject of “His majesty” therein, shall by any reason only by his religion, place of birth, descent, colour or any of them be disabled from holding any place, office or employment under the company”.
^from upsc website
@AyeRamadhirin spectrum it's given that theoretically 1833 act opened it but practically it didn't happen for long and first Indian civil servant could be appointed only in 1860s after passage of civil servant act 1861. So I'm confused.
Lakshmikant says that 1833 act ATTEMPTED to open it, but this provision was neglected.
Lakshmikant further says that 1853 threw open covenant civil services etc...
Dionysus,
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