What is the meaning of ready forward deal?
2.6. A repo is also sometimes called a ready forward transaction as it is a means of funding by selling a security held on a spot (ready) basis and repurchasing the same on a forward basis.
What is SGL and BR in banking?
All the transactions put through by a bank, either on outright basis or ready forward basis and whether through the mechanism of Subsidiary General Ledger (SGL) Account or Bank Receipt (BR), should be reflected on the same day in its investment account and, accordingly, for SLR purpose wherever applicable.
Which is the only active money market Centre in India?
Answer: However, Mumbai is the only active money market centre in India with money flowing in from all parts of the country. 1) Organized Sector : The organised sector of the money market consists of the Reserve Bank of India, commercial banks, co-operative banks, regulated financial intermediaries etc.
What is a Reporate?
Repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Central bank of our country i.e Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures.
What’s the difference between a future and a forward?
A forward contract is a private and customizable agreement that settles at the end of the agreement and is traded over-the-counter. A futures contract has standardized terms and is traded on an exchange, where prices are settled on a daily basis until the end of the contract.
What is the mean of forward?
toward or at a place, point, or time in advance; onward; ahead: to move forward; from this day forward; to look forward.
What is difference between SGL and Br?
Often, as is the prevailing practice, a Bank Receipt (BR) is issued in place of securities or the SGL form. The buyer bank issues a cheque to the seller against the BR (or SGL) and the investment account of the bank is credited with the quantity of security received.
Who controls money market in India?
The Reserve Bank derives statutory powers to regulate market segments from specific provisions of the Reserve Bank of India Act, 1934. The prudential guidelines issued to eligible market participants form the broad regulatory framework for Government securities, money market and interest rate derivatives.
How many types of NPA are there?
Banks are required to classify nonperforming assets into one of three categories according to how long the asset has been non-performing: sub-standard assets, doubtful assets, and loss assets. A sub-standard asset is an asset classified as an NPA for less than 12 months.
What happens if RBI cuts repo rate?
Repo rate is the interest at which RBI lends money to commercial banks in the country. Every time this rate reduces, it means that other banks can now borrow money from RBI at a much lower interest rate. However, this will come into effect only if banks decide to pass on the benefit to their customers.
Why is future contract better than forward?
The Forward contracts include a high counter party risk and there is also no guarantee of asset settlement till the maturity date. The Futures contract involves a low counterparty risk and the value is based on the market rates and is settled daily with profit and loss.
What are the two kinds of options?
There are two types of options: calls and puts.
How do you explain forward?
toward or at a place, point, or time in advance; onward; ahead: to move forward; from this day forward; to look forward. toward the front: Let’s move forward so we can hear better. into view or consideration; out; forth: He brought forward several good suggestions. toward the bow or front of a vessel or aircraft.
Where do we use forward?
Examples of forward in a Sentence She took a small step forward. The narrative moves backward and forward in time. The technology has taken a big step forward. Verb Your letter will be forwarded to the appropriate department.
Where is Harshad Mehta today?
And currently, he is practicing in Mumbai High Court as well as Supreme Court. To clear his brother’s name, he fought several court cases and paid nearly ₹1,700 crores to banks. He was constituted as attorney of Harshad. After the death of Harshad Mehta in 2001, the case against him was soon abated.
Who betrayed Harshad Mehta?
Outbreak of 1992 securities fraud On 23 April 1992, journalist Sucheta Dalal exposed illegal methods in a column in The Times of India. Mehta was dipping illegally into the banking system to finance his buying.