Negotiable instrument
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. Negotiable instruments are often defined in legislation. For example, according to the Section 13 of the Negotiable Instruments Act, 1881 in India, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. So, in India, there are just three types of negotiable instruments such as promissory note, bill of exchange and cheque. Cheque also includes Demand Draft [Section 85A]
Source(s) -
http://en.wikipedia.org/wiki/Negotiable_instrument#Bill_of_exchange
Public debt office
What is a public debt office?
A public debt office or a debt management office is an autonomous government agency which acts as the investment banker to the government and raises capital from the markets for the government. It formulates the borrowing calendar for the government and decides upon the maturities of the securities to be issued on behalf of the government. A public debt office works separately from the central bank and has nothing to do with the formulation of the monetary policy or setting interest rates.
Source(s) -
http://articles.economictimes.indiatimes.com/2011-04-19/news/29447269_1_debt-management-public-debt-interest-rates
What is Market Stabilization Scheme?
To understand this we need to take a look at the year 2004 when FIIs (Foreign Institutional Investors) started bringing in dollars to buy Indian stocks. This has resulted in an oversupply of US dollars in the Indian market. RBI bought dollars, thus creating an equivalent amount of rupees. This dollar buying raised forex reserves from $100 bn in January 2004 to about $300 bn by 2007-08. Thus there was a liquidity overhang that was caused by the inflow of dollars. This has forced the government to mop up the rupees by creating the MSS bonds.
MSS was introduced by way of an agreement between the government and the Reserve Bank of
India (RBI) in early 2004. Under the scheme, RBI issues bonds on behalf of the government and the money raised under bonds is impounded in a separate account with RBI. The money does not go into the government account. As on October 22, 2008 the balance under MSS stood at Rs 1,71,317 crore.
Source(s) -
http://discover-it.blogspot.in/2008/10/what-is-market-stabilization-scheme.html
Bridge Loan
A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing.It is usually called a bridging loan in the United Kingdom, also known as a "caveat loan," and also known in some applications as a swing loan.
A sum of money lent by a bank to cover an interval between two transactions, typically the buying of one house and the selling of another is known as Bridge loan.
Source(s) -
http://en.wikipedia.org/wiki/Bridge_loan
Term Loan
A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.
Source(s) -
http://en.wikipedia.org/wiki/Term_loan
Call Money/ Notice Money Market
If the borrowing is 1 day OR less, it is called Call Money Market.
If the borrowing is > 1 day and upto 14 days, then it is called Notice Money Market.
If the call money rates fall, this means there is a rise in the liquidity and vice versa.
Over Night MIBOR
MIBOR refers to Mumbai Interbank Offer Rate. It is the average of the call money rates offered by a set of specific banks on a given day. MIBOR is calculated by the NSE after taking quotes from a specific set of Banks. MIBOR serves as a benchmark to which various entities in the market benchmark their short term interest rates.
Source(s) -
http://www.gktoday.in
WHAT ARE AMERICAN DEPOSITORY RECEIPTS AND GLOBAL DEPOSITORY RECEIPTS?
For example, let's say you have Company A, which is an Indian company and listed on the Bombay stock exchange. The company has 100 shares outstanding.
A bank buys 10 shares on the BSE and then, with the company's permission, floats a security on another stock market - let's say London. This is called a Global Depository Receipt (GDR). Often, the GDR has a 1:1 ratio of GDR to shares, so they - for all intents and purposes - act like owning the share directly. When the shares are listed in the US, they are called ADRs. Likewise, here in Singapore, they are called SDR's. The practice of renaming the depository receipts into the local market is not universal. Most just call them GDRs.
Source(s) - csanda, http://answers.yahoo.com
