Professional Documents
Culture Documents
- Helps the issuer to hedge the loss from interest rate fluctuations
- Issued with a cap or a floor
periods
Underwriter who will be prepared to pick up the lot if it is not fully sold
After 91 days the stocks will be redeemed and reauctioned. - Treasury bill rate bench mark rate - Enables raising long- term funds at short- term rates
- Option to sell back the SPN to the company after the lock in period if this option excersise no interest paid on redemption
If the holder holds it further then at the time of redemption decided by company the interest is paid
Secured Zero Interest Partly convertible debentures with detachable and separately tradable warrants
- Two parts : Part A : Convertible
Differential Shares
- Shares with differential rights to voting and dividend - Introduced through the Companies( Second Amendment) Act, 2000 - Positioned between equity shares and preference shares - Rules for issue : Approved in general making : Companies should not have defaulted : Dividends for three consecutive years - Benefits : Majority of investors favour higher dividend entitlement : Flexibility to promoters : Helps in leveraging capital structure
Securitised Paper
-Meaning: Illiquid assets packaged and converted into tradeable securities known as pass through certificates (PTCs) -Process:(1) Securities identified on the basis of creditworthiness (2) Rated by a credit rating agency (3) Pool sold to SPV-a trust which then issues asset-backed securities (4) Securities listed and traded on NSE
Municipal Bonds
Issued by Municipal Corporations to finance infrastructure projects. AMC-the first municipal corporation to raise funds through these bonds.