Friday, 24 August 2018

Depository Receipts like ADR, GDR

ADRs –American Depository Receipts
American Depository Receipts are Receipts or Certificates issued by US
Bank representing specified number of shares of non-US Companies. Defined as under:
These are issued in capital market of USA alone. These represent securities of companies of other countries.
These securities are traded in US market. The US Bank is depository in this case. ADR is the evidence of ownership of the underlying shares. Unsponsored ADRs
It is the arrangement initiated by US brokers. US Depository banks create
such ADRs. The depository has to Register ADRs with SEC (Security
Exchange Commission). Sponsored ADRs
Issuing Company initiates the process. It promotes the company‟s ADRs in
the USA. It chooses single Depository bank. Registration with SEC is not
compulsory. However, unregistered ADRs are not listed in US exchanges. GDRs – Global Depository Receipts
Global Depository Receipt is a Dollar denominated instrument with
following features:
1. Traded in Stock exchanges of Europe. 2. Represents shares of other countries. 3. Depository bank in Europe acquires these shares and issues
“Receipts” to investors. 4. GDRs do-not carry voting rights. 5. Dividend is paid in local currency and there is no exchange risk for
the issuing company. 6. Issuing Co. collects proceeds in foreign currency which can be used
locally for meeting Foreign exchange requirements of Import. 7. GDRS are normally listed on “Luxembourg Exchange “ and traded
in OTC market London and private placement in USA. 8. It can be converted in underlying shares.
IDRs – Indian Deposits Receipts
Indian Depository Receipts are traded in local exchanges and represent
security of Overseas Companies. CDF (Currency Declaration Form)
CDF is required to be submitted by the person on his arrival to India at the
Airport to the custom Authorities in the following cases:
1. If aggregate of Foreign Exchange including foreign currency/TCs
exceeds USD 10000 or its equivalent. 2. If aggregate value of currency notes (cash portion) exceeds USD
5000 or its equivalent. Form A1 and
Form A2
Form A1 is meant for remittance abroad to settle imports obligations. It is
not required if value of imports is up to USD 5000. Form A2 is meant for remittance abroad on account of any purpose other
than Imports. It is not required if remittance is up to USD 25000. LIBOR Rate London Interbank Offering rate is the rate fixed at 11 am (London time) at
which top 16 banks in London offer to lend funds in interbank markets.

LIBERALISED REMITTANCE SCHEME (LRS) FOR RESIDENT INDIVIDUALS

LIBERALISED REMITTANCE SCHEME (LRS) FOR RESIDENT INDIVIDUALS
RBI introduced LRS on Feb 04, 2004. Major changes were made by RBI in LRS w.e.f. 01.06.2015 (based
on Govt. notification 15.05.15). Eligibility: All resident individuals including minors and non-individuals are eligible. Remittances under the facility can be consolidated in respect of family members
subject to individual family
members complying with the terms and conditions.
It is mandatory to have PAN number to make remittances. Forex can be purchased from authorised person which indude AD Category-1 Banks, AD Category-2 and
Full Fledged Money Changers. Capital Accounts transactions Remittances up to USD 250,000 per financial year
can be allowed for
permissible capital account transactions as under: I) opening of foreign currency
account abroad; ii)
purchase of property abroad;
ill) making investments abroad;
iv) setting up Wholly owned subsidiaries and Joint Ventures abroad;
v) loans including in Indian Rupees to Non-resident Indians relatives as defined in
Companies Act, 2013. Current account transactions • : All facilities (Including private/business visits) for
remittances have been
subsumed under overall limit of USD 250,000/FY.

Facilities for Individuals
1. Individuals can avail of forex facility for the following purposes within the limit of USD
250000. Additional
remittance shall require prior approval of RBI. 1. Private visits to a country (except Nepal & Bhutan)
2. Gift or donation. 3. Going abroad for employment or immigration. 4. Maintenance of close relatives abroad
5. Travel for business, or attending a conference or specialized training or for meeting
medical expenses, or
check-up abroad, or for accompanying as attendant to a patient going abroad for
medical treatment/ check-up. 7. Expenses for medical treatment abroad
B. Studies abroad
9. Any other current account transaction
Exception : For immigration,medical treatment and studies abroad, the individualmay
avail of exchange facility in
excess of LRS limit if required by a country of emigration,medical institute offering
treatment or the university, respectively. Facilities for persons other than individual The following remittances shall require RBI
approval:
(i) Donations beyond 1%of forex earnings in previous 3 FY or USD 5000000, whichever is less, for:
a) creation of Chairs in reputed educational institutes, b) contribution to funds (not being an investment fund) promoted by educational
institutes; and
c) technical institution/body/ association in the field of activity of the donor Company. (ii) Commission, per transaction, to agents abroad for sale of residential flats or
commercial plots in India exceeding
USD 25,000 or 5%of inward remittance whichever ismore. (iii) Remittances exceeding USD 10000000 per project for any consultancy services for
infrastructure projects and
USD 1,000,000 per project, for other consultancy services procured fromoutside India. (iv) Remittances exceeding 5%of investment brought into India or USD 100,000
whichever is higher, by an entity in
India by way of reimbursement of pre-incorporation expenses. Mode of remittance: The Scheme can be used for outward remittance in the formof 'a
DD either in the resident
individual's own name or in the name of beneficiary with whomhe intends putting
through the permissible transactions
at the time of private visit abroad, can be effected, against self declaration of the
remitter in the format prescribed. Loan facility : Banks should not extend any kind of credit facilities to resident
individuals to facilitate remittances under
the Scheme. Remittances not available under the scheme:

i. Remittance for any purpose specifically prohibited under Schedule-I (like purchase of
lottery/sweep stakes,
tickets, prescribedmagazines etc.) or itemrestricted under Schedule II of FEMA
(Current A/c Transactions) Rules, 2000.
ii. Remittancesmade to Bhutan,Nepal,Mauritius or Pakistan.
iii. Remittancesmade to countries identified by the Financial Action Task Force (FATF)
as "non co-operative
countries and territories" as available on FATF website (viz Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines and Ukraine) or as notified by RBI.
iv. Remittances to individuals and entities identified as posing significant risk of
committing acts of terrorismas advised
separately by RBI to the banks. Reporting of the transactions: The remittancesmade will be reported in the R-Return
in the normal course. The
ADsmay also prepare and keep on record dummy FormA2, in respect of remittances
exceeding USD 5000. With effect from01.07.13, the banks are required to upload the data inOnline Return
Filing System(OAFS) on a
monthly basis, by 5th of the followingmonth to which it relates.Where there is no
information, 'nil' figure is to be
uploaded. Rules related to release / remittance of foreign exchange to residents
ADbanks can release forex to residents in India as per Rules framed u/s Sec 5 of
FEMA. Forex cannot be released for
Schedule I transactions. For Schedule II transactions,Govt. permission is required. For
Schedule III transactions, forex
can be released up to specified limit byADbanks. Beyond that limit, approval of RBI is
required. Ceilings on release of amount by ADs without RBI approval are given above, under
LRS. Nepal & Bhutan - Forex for any kind of travel to or for any transactionwith persons
resident inNepal andBhutan cannot
be released. Any amount of Indian currency can be used.Highest denomination of
currency note can beRs.100. Up to Rs.25000, any denomination is allowed. Form of foreign currency: 1. Coins, currency notes and traveller's cheques. Currency
notes/coins can be up to US$
3000. The balance can be traveller's cheque or banker's draft. 2. For Iraq and Libya currency notes and coins can be obtained up toUS$ 5000 or its
equivalent. 3. For Iran, Russian Federation, and other Republics of Commonwealth of Independent
Countries, no ceiling. Mode of purchase: In cash up toRs.50,000/-.Above this, payment byway of a crossed
cheque/banker's cheque/pay
order/demand draft / debit card / credit card only.

Surrender of unused forex: Currency notes and travellers' cheques within 180 days of
return. Retention of unused forex : US$2,000 or its equivalent. There is no restriction on
residents for holding foreign
currency coins. Use of International Credit Card (ICC): Use of the ICCs / ATMs/ Debit Cards can be
made for personal
payments and for travel abroad for various purposes, only up to specified limits. Export / Import of Indian currency by Residents or non-residents : Up to Rs. 25000
each to or from
any country other than Nepal or Bhutan (Pakistan & Bangladesh Rs.10000).
Import of Foreign exchange from abroad: Any amount subject to declaration on CDF. Mandatory CDF : Where total amount exceeds US$ 10,000 (or its equivalent) and/or
value of foreign
currency notes exceeds US$ 5,000, declaration should be made to the Customs
Authorities through
Currency Declaration Form (CDF), on arrival in India. Application for purchase of FC : Form A2. It is not required up to $ 25000. A2 to be
preserved by banks for one
year for verification by Auditors. endorsement on Passport : It is not mandatory for
Authorised Dealers to
endorse the amount of foreign exchange sold for travel abroad on the passport of the
traveller. However, if
requested by the traveller, AD may record under its stamp, date and signature, details
of foreign exchange sold
for travel



IMPORTANT DAYS

Date Day Theme
11th July World Population Day 'Family Planning is a Human Right'.

1 st July ‘GST Day’

7 th July International Day of Cooperatives ‘Sustainable societies through cooperation’

21st June 4th International Yoga Day "Yoga for Peace".
International Widows' Day is a global awareness day that takes place annually on 23rd June.
26th June International Day against Drug Abuse &
Illicit Trafficking.
"Listen First - Listening to children & youth is the
first step to help them grow healthy & safe."

29th June National Statistics Day ‘Quality Assurance in Official Statistics’
20th June World Refugee Day ‘Now More Than Ever, We Need to Stand with
Refugees’
14th June World Blood Donors Day ‘Be there for someone else. Give blood. Share life’.
12th June World Day Against Child Labour -
8
th June World Ocean Day
5
th June World Environment Day "Beat Plastic Pollution"
RBI chosen customer protection as a theme for Financial Literacy Week which was conducted between 4th & 8th June.
3
rd June World Bicycle Day 1
st official World Bicycle Day was celebrated
31st May World No Tobacco Day "Tobacco & heart disease."
29th May International Day of UN-Peacekeepers ‘UN Peacekeepers: 70 Years of Service & Sacrifice’.
21st May Anti Terrorism Day -
17th May World Telecommunication & Information
Society Day
"Enabling the positive use of Artificial Intelligence
for All".
15th May International Day of Families ‘Families & inclusive societies’
12th May International Nurses Day “Nurses A Voice to Lead – Health is a Human
right” for IND 2018.
11th May National Technology Day “Science & Technology for a Sustainable Future”.
8
th May World Red Cross Day “Memorable smiles from around the world”
3
rd May World Press Freedom Day ‘Keeping Power in Check: Media, Justice & The
Rule of Law’
1
st May International Labour Day “Uniting Workers for Social & Economic
Advancement”
26th April World Intellectual Property Day 'Powering change: Women in innovation &
creativity'
25th April World Malaria Day ‘Ready to beat Malaria’
24th April National Panchayati Raj Diwas
23rd April World Book & Copyright Day World Book Capital for 2018 is Athens, Greece.
22nd April World Earth Day (WED) 'End Plastic Pollution'
18th April World Heritage Day 'Heritage for Generations'
17th April World Haemophilia Day 'Sharing Knowledge Makes Us Stronger'
10th April World Homeopathy Day Evolve, Progress: Exploring Science since 40 years
7
th April World Health Day (Slogan: Health for All) Universal health coverage: everyone, everywhere.
5
th April 55th National Maritime Day ‘Indian Shipping – An Ocean of opportunity’.
2
nd April World Autism Awareness Day "Empowering Women & Girls with Autism".
27th March World Theatre Day
24th March World Tuberculosis Day “Wanted: Leaders for a TB-free world”
22nd March World Water Day Nature for Water
20th March World Sparrow 'I Love Sparrows'
20th March International Day of Happiness "Share Happiness"

Different Organisations Report title Organisation... Just for knowledge

Asian Development Outlook ADB (Asian Development bank)
Global Money Laundering Report FATF (Financial Action Task Force)
Nuclear Technology Review IAEA (International Atomic Energy Agency)
Ease of Doing Business IBRD (World Bank)
World Development Report IBRD (World Bank)
Safety Reports ICAO (International Civil Aviation Organization)
Global Hunger Index report IFPRI (International Food Policy Research Institute)
World Employment & Social Outlook ILO (International Labour Organization)
World of Work Report ILO (International Labour Organization)
World Economic Outlook IMF (International Monetary Fund)
Global Innovation Index Cornell University INSEAD & the World Intellectual Property
Organization (WIPO)
World Energy Outlook (WEO) International Energy Agency
World Oil Outlook OPEC (Organization of the Petroleum Exporting Countries )
World Happiness Report Sustainable Development Solutions Network (SDSN)
Global Corruption Report (GCR) Transparency International
Levels & Trends in Child Mortality Report UN Inter-agency Group
World Investment Report UNCTAD (United Nations Conference on Trade & Development)
Actions on Air Quality UNEP (United Nations Environment Programme )
Global Environment Outlook UNEP (United Nations Environment Programme )
Global education monitoring Report UNESCO (United Nations Educational, Scientific & Cultural Organization)
World Cities Report UN-Habitat
The Global Report UNHCR (United Nations High Commissioner for Refugees )
Report on Regular Resources UNICEF (United Nations Children’s Emergency Fund )
Industrial Development Report UNIDO (United Nations Industrial Development Organization)
World Drug Report UNODC (United Nations Office on Drugs & Crime)
Global Information Technology Report WEF (World Economic Forum)
Travel & Tourism Competitiveness Report WEF (World Economic Forum)
Global Competitiveness Report (GCR) WEF (World Economic Forum)
World Intellectual Property Report (WIPR) WIPO (World Intellectual Property Organization)

Mutual funds short notes1

Chapter 1
• Mutual fund is a vehicle to mobilize moneys from investors, to invest in
different markets and securities, in line with the investment objectives
agreed upon, between the mutual fund and the investors. In other words,
through investment in a mutual fund, a small investor can avail of
professional fund management services offered by an asset management
company.
• Mutual funds perform different roles for different constituencies.
• The mutual fund structure, through its various schemes, makes it possible
to tap a large corpus of money from diverse investors.
• It is possible for mutual funds to structure a scheme for any kind of
investment objective.
• The money that is raised from investors, ultimately benefits governments,
companies or other entities, directly or indirectly, to raise moneys to invest
in various projects or pay for various expenses.
• As a large investor, the mutual funds can keep a check on the operations of
the investee company, and their corporate governance and ethical
standards.
• The mutual fund industry itself, offers livelihood to a large number of
employees of mutual funds, distributors, registrars and various other
service providers.
• Mutual funds can also act as a market stabilizer, in countering large inflows
or outflows from foreign investors. Mutual funds are therefore viewed as a
key participant in the capital market of any economy.
• Under the law, every unit has a face value of Rs. 10. (However, older
schemes in the market may have a different face value). The face value is
relevant from an accounting perspective. The number of units multiplied by
its face value (Rs. 10) is the capital of the scheme – its Unit Capital.
Investments can be said to have been handled profitably, if the following
profitability metric is positive:
(A) +Interest income
(B) + Dividend income
(C) + Realized capital gains
(D) + Valuation gains
(E) – Realized capital losses
(F) – Valuation losses
(G) – Scheme expenses
• When the investment activity is profitable, the true worth of a unit goes
up; when there are losses, the true worth of a unit goes down. The true
worth of a unit of the scheme is otherwise called Net Asset Value (NAV) of
the scheme.
• The relative size of mutual fund companies is assessed by their assets
under management (AUM). When a scheme is first launched, assets under
management would be the amount mobilized from investors. Thereafter, if
the scheme has a positive profitability metric, its AUM goes up; a negative
profitability metric will pull it down.
• Advantages of Mutual Funds for Investors are:
a. Professional Management
b. Affordable Portfolio Diversification
c. Economies of Scale
d. Liquidity
e. Tax Deferral
f. Tax benefits
g. Convenient Options
h. Investment Comfort
i. Regulatory Comfort
j. Systematic Approach to Investments
• Limitations of a Mutual Fund
a. Lack of portfolio customization
b. Choice overload
c. No control over costs
• Open-ended funds are open for investors to enter or exit at any time, even
after the NFO.
• The on-going entry and exit of investors implies that the unit capital in an
open-ended fund would keep changing on a regular basis.
• Close-ended funds have a fixed maturity. Investors can buy units of a close-
ended scheme, from the fund, only during its NFO. The fund makes
arrangements for the units to be traded, post-NFO in a stock exchange. This
is done through a listing of the scheme in a stock exchange. Such listing is
compulsory for close-ended schemes.

• Since post-NFO, sale and purchase of close-ended funds units happen to or
from counter-party in the stock exchange – and not to or from the mutual
fund – the unit capital of the scheme remains stable or fixed.
• Depending on the demand-supply situation for the units of the close-ended
scheme on the stock exchange, the transaction price could be higher or
lower than the prevailing NAV.
• Interval funds combine features of both open-ended and close-ended
schemes. They are largely close-ended, but become open-ended at pre-
specified intervals. For instance, an interval scheme might become open-
ended between January 1 to 15, and July 1 to 15, each year. The benefit for
investors is that, unlike in a purely close-ended scheme, they are not
completely dependent on the stock exchange to be able to buy or sell units
of the interval fund. However, between these intervals, the Units have to
be compulsorily listed on stock exchanges to allow investors an exit route.
Minimum duration of an interval period in an interval scheme/plan is 15
days. No redemption/repurchase of units is allowed except during the
specified transaction period (the period during which both subscription and
redemption may be made to and from the scheme). The specified
transaction period will be of minimum 2 working days, as per revised SEBI
Regulations.
• Actively managed funds are funds where the fund manager has the
flexibility to choose the investment portfolio, within the broad parameters
of the investment objective of the scheme. Since this increases the role of
the fund manager, the expenses for running the fund turn out to be higher.
Investors expect actively managed funds to perform better than the
market.
• Passive funds invest on the basis of a specified index, whose performance
it seeks to track. Thus, a passive fund tracking the BSE Sensex would buy
only the shares that are part of the composition of the BSE Sensex. The
proportion of each share in the scheme’s portfolio would also be the same
as the weightage assigned to the share in the computation of the BSE
Sensex. Thus, the performance of these funds tends to mirror the
concerned index. They are not designed to perform better than the market.
Such schemes are also called index schemes. Since the portfolio is
determined by the index itself, the fund manager has no role in deciding on
investments. Therefore, these schemes have low running costs.

• Schemes with an investment objective that limits them to investments in
debt securities like Treasury Bills, Government Securities, Bonds and
Debentures are called debt funds.
• Hybrid funds have an investment charter that provides for investment in
both debt and equity.
• Gilt funds invest in only treasury bills and government securities, which do
not have a credit risk (i.e. the risk that the issuer of the security defaults).
• Diversified debt funds on the other hand, invest in a mix of government
and non-government debt securities such as corporate bonds, debentures
and commercial paper. These schemes are also known as Income Funds.
• Junk bond schemes or high yield bond schemes invest in companies that
are of poor credit quality. Such schemes operate on the premise that the
attractive returns offered by the investee companies makes up for the
losses arising out of a few companies defaulting.
• Fixed maturity plans are a kind of debt fund where the investment
portfolio is closely aligned to the maturity of the scheme. Further, being
close-ended schemes, they do not accept moneys post-NFO.
• Floating rate funds invest largely in floating rate debt securities i.e. debt
securities where the interest rate payable by the issuer changes in line with
the market. For example, a debt security where interest payable is
described as‘5-year Government Security yield plus 1%’, will pay interest
rate of 7%, when the 5-year Government Security yield is 6%; if 5-year
Government Security yield goes down to 3%, then only 4% interest will be
payable on that debt security. The NAVs of such schemes fluctuate lesser
than debt funds that invest more in debt securities offering a fixed rate of
interest.
• Liquid schemes or money market schemes are a variant of debt schemes
that invest only in debt securities where the moneys will be repaid within
60-days.
• Diversified equity fund is a category of funds that invest in a diverse mix of
securities that cut across sectors.
• Sector funds however invest in only a specific sector. For example, a
banking sector fund will invest in only shares of banking companies. Gold
sector fund will invest in only shares of gold-related companies.
• Thematic funds invest in line with an investment theme. For example, an
infrastructure thematic fund might invest in shares of companies that are

into infrastructure construction, infrastructure toll-collection, cement,
steel, telecom, power etc. The investment is thus more broad-based than a
sector fund; but narrower than a diversified equity fund
• Equity Income / Dividend Yield Schemes invest in securities whose shares
fluctuate less, and the dividend represents a larger proportion of the
returns on those shares. The NAV of such equity schemes are expected to
fluctuate lesser than other categories of equity schemes.
• Arbitrage Funds take contrary positions in different markets / securities,
such that the risk is neutralized, but a return is earned.
• Gold Exchange Traded Fund, which is like an index fund that invests in
gold, gold-related securities or gold deposit schemes of banks.
• Gold Sector Fund i.e. the fund will invest in shares of companies engaged in
gold mining and processing.
• Monthly Income Plan seeks to declare a dividend every month. It therefore
invests largely in debt securities. However, a small percentage is invested in
equity shares to improve the scheme’s yield. Another very popular
category among the hybrid funds is the Balanced Fund category. The
balanced funds can have fixed or flexible allocation between equity and
debt.
• Capital Protected Schemes are close-ended schemes, which are structured
to ensure that investors get their principal back, irrespective of what
happens to the market. This is ideally done by investing in Zero Coupon
Government Securities whose maturity is aligned to the scheme’s maturity.
• International Funds are funds that invest outside the country. For instance,
a mutual fund may offer a scheme to investors in India, with an investment
objective to invest abroad. An alternative route would be to tie up with a
foreign fund (called the host fund). If an Indian mutual fund sees potential
in China, it will tie up with a Chinese fund. In India, it will launch what is
called a feeder fund. Investors in India will invest in the feeder fund. The
moneys collected in the feeder fund would be invested in the Chinese host
fund. Thus, when the Chinese market does well, the Chinese host fund
would do well, and the feeder fund in India will follow suit.
• The feeder fund was an example of a fund that invests in another fund.
Similarly, funds can be structured to invest in various other funds, whether
in India or abroad. Such funds are called fund of funds.

• AUM of the industry, as of July 31, 2013 has touched Rs 760,833 crore from
1172 schemes offered by 44 mutual funds.

Retail Banking

RETAIL BANKING : An Introduction

 "Retail Banking is a banking service that is geared primarily toward individual consumers. Retail banking is usually made
available by commercial banks, as well as smaller community banks. Unlike wholesale banking, retail banking focuses
strictly on consumer markets. Retail banking entities provide a wide range of personal banking services, including offering
savings and checking accounts, bill paying services, as well as debit and credit cards. Through retail banking, consumers may
also obtain mortgages and personal loans. Although retail banking is, for the most part, mass-market driven, many retail
banking products may also extend to small and medium sized businesses. Today much of retail banking is streamlined
electronically via Automated Teller Machines (ATMs), or through virtual retail banking known as online banking."
 "Retail Banking deals with lending money to consumers. This includes a wide variety of loans, including credit cards,
mortgage loans and auto loans, and can also be used to refer to loans taken out at either the prime rate or the subprime
rate."
 "Retail banking refers to banking in which banking institutions execute transactions directly with consumers, rather than
corporations or other entities".
 Retail Banking refers to "the part of a bank's operations providing services at its branches for small (in bank terms) account
holders."
 "Banking services offered to individual customers such as savings accounts, personal loans, remittance services etc.,"
 "Pure retail banking is generally conceived to be the provision of mass market banking services to private individuals. It has
been expanded over the years to include in many cases services provided to small- and medium sized businesses. Some
banks may also include their "private banking" business (i.e. services to high net worth individuals) in their definition of
retail banking".
Features of Retail Banking:
 Retail Banking is a banking service that is geared primarily toward individual consumers.
 Retail banking is usually made available by commercial banks, as well as smaller community banks.
 Retail banking focuses strictly on consumer markets.
 Retail banking is, generally mass-market driven but many retail banking products may also extend to small and medium
sized businesses.
 It is focused towards mass market segment covering a large population of individuals.
 It offers different liability, asset and a plethora of service products to the individual customers.
 The delivery model of retail banking is both physical and virtual i.e. services are extended through branches and also through technology
driven electronic off site delivery channels like ATMs, Internet Banking and Mobile Banking.
 It may be extended to small and medium size businesses.
Advantages of Retail Banking
Client base will be large and therefore risk is spread over large customer base.
Customer Loyalty is strong and customers generally do not change from one bank to another.
There are attractive interest spreads, since customers are too fragmented to bargain effectively;
Credit risk tends to be well diversified; as loan amounts are relatively small.
There is less volatility in demand compared to large corporates.
Large numbers of clients can facilitate marketing, mass selling and the ability to categorise/select clients using scoring systems/data
Constraints in Retail Banking
There are problems in managing large numbers of clients, particularly if IT systems are not sufficiently robust.
Rapid evolution of products and change in product lines can lead to IT complications.
The costs of maintaining branch networks and handling large numbers of low-value transactions tend to be relatively high. However, this can be
reduced through cheaper distribution channels, such as ATMs, the telephone or mobile or internet. Branches should be used for higher ended
value transactions.
Higher level of defaults especially in unsecured retail loans and credit card receivables.
Retail Banking as a Business Model
Capgemini, ING and the European Financial Management Marketing Association (EFMA have studied the global Retail banking market with theaim of providing insights to financial services community through the World Retail Banking Report (WRBR). The study conducted in 2006 covered
142 banks in 20 countries covering the geographies of Europe-eurozone (Austria, Belgium, France, Germany, Ireland, Italy, Netherlands, Portugal,
Spain), Europe-non eurozone (Czech Republic, Norway, Poland, Slovakia, Sweden, Switzerland, UK), North America and Asia Pacific (Australia,
Canada, China, US). Its findings are related to (i) Pricing of Banking Services and (ii) Delivery Channels
Findings on Pricing of Banking Services : The average price of banking services increased by over 3%. However this trend had marked
differences between zones, especially between North America, where prices went down and the euro zone where they rose. Price were
converging slowly in the euro zone even as price differences between countries — including neighbours — remained high. This trend will
continue as a result of central initiatives such as the Single Euro Payments Area (SEPA). The SEPA initiative aims to create a domestic payments
market across the euro zone by 2010 and will result in competition, price transparency and homogeneity and will affect the revenue
structure of the banks.
The pricing indices were developed based on three usage patterns viz., less active, active and very active users. Usage pattern for
particular products vary significantly between countries, leading to major differences between global and local prices.
The average price of basic banking services based on the local active customer profile was 76 Euros in 2005.
In a given region, prices varied according to usage pattern, with a ratio of up to one to 4.6 between prices paid by very active and
less active users.
Although similar prices observed within a given region, they were the result of very different pricing models.
Fierce competition (US) and evolving retail banking markets (Eastern Europe, China) have prompted changing price structures.
Banks are reducing remote channel prices in order to drive greater customer use.
Price of seldom-used products have steadily increased over the past two years.
Banking services follow the standard industrial development pattern in which prices decline with maturity.
Delivery Channel Strategies
The emergence of the new remote channels has changed the distribution paradigm of banks and strategies are to be in place to take
on the multi channel challenges.
Traditional retail banks are including direct sales and service into their channel strategies and continue to invest in alternative channels to keep up
with market developments and customer demand.
There are two aspects in multi channel management. First to develop remote channels and reposition branches to create more value for
customer segment. Second to increase customer satisfaction and differentiate themselves from the competition while also improving the
productivity of the multi channel model.
Important findings of the study by Capgernini are summarised below:
 The distribution of sales among channels is an important factor in the channel strategies. Selling through the branch channel is the main
format but over the years the volumes have dropped. (94% of sales in 2000 to 67% in 2010). On the other hand, sales through the Web has
increased (2% in 2000 to 17% in 2010). Sales through phone has moved from 4% in 2000 to 13% in 2010.
 There is a rapid migration of sales from the direct channels to remote channels over the past five years and the likely more
aggressive movement in the coming years.
 The distribution of services among channels is another important factor in channel strategies. Percentage of transactions through branch
dropped from 70% in 2000, to 42% in 2005 and likely to drop to 30% in 2010. The transactions through Web increased from 4% in 2000 to
18% in 2005 and likely to reach 28% in 2010. Phone Banking transaction usage also moved up from 5% in 2000 to 9% in 2005 and to reach
12% in 2010.
 Therefore, remote channels have recorded higher growth over direct channels and further increase in the coming years.
 The banks expect their remote channels to deliver 33% of their sales in 2010 up from 6% in 2000. This trend holds good for all kind of
products from simple current accounts to more complex mortgages and insurance products.
 Among the remote channels, though ATMs were the early leader, the Internet is emerging stronger.
 The rise in usage of remote channels will result in advisory role for branches in selling and staff will be trained as Advisors to handle the
customers across multiple channels and their business enquiries.
Retail Banking in US
Traditional Image: (i) office on Main Street (ii) the branch manager understands the local market (iii) the manager has strong
customer relationships.
Impact of technology and regulatory changes in the 1990s:
 challenged the bricks-and-mortar business model (branch).
 Automated teller machines (ATMs) proliferated after the national ATM networks dropped a ban on surcharges in 1996; by
2002, there were 352,000 machines in the United States.
 The Internet gave customers electronic access to their accounts and even gave rise to "virtual" banking organizations; in
2000, forty Internet banks were in operation.
 Banks also developed centralized call centers to handle customer service issues and to initiate transactions, including

deposits and loans.
 Many banks shifted some activities like small-business loan approval from branch to regional or Head Offices.
 The role of the traditional bank branch reduced in the delivery of retail banking services.
Impact of Deregulation and the Riegle-Neal Act of 1994 & Gramm-Leach-Bliley Act 1999
 It allowed banks to branch and merge across state lines
 It contributed to bank consolidation that focused on reducing costs to boost profits.
 The number of US banks and Thrifts fell from about 12,500 in 1994 to a little more than 9,000 at the end of
 2003 but the number of bank and thrift branches actually rose. From 1993 to 2002, the number of bank branches climbed
8.6 percent.
 The Gramm-Leach-Bliley Act of 1999 allowed branches to distribute the insurance and securities products.-
 The declining number of banks and rising number of branches have resulted in greater consolidation of branches and
deposits in the nation's larger banks.
 The institutions with the widest geographic reach have branches in about half the states.
 The consolidation of branches into large branch networks affected bank customers and the banks themselves.
 Larger banking organizations tend to charge higher fees than smaller _institutions. Branch-dependent customers could
face additional costs as branches are increasingly consolidated into the larger branch networks.
 Large branch networks offer the convenience of many points of contact with the institution.
 The research indicates that depositors value geographic reach (branches in many states and municipalities) and local
branch density (many branches of an institution in a given area) when selecting an institution.
 Market surveys also suggest that customers place a premium on convenience i.e. location when choosing a bank.
 For the banks, the consolidation of branches within large branch networks has implications in terms of cost, business
focus, and profitability.
Retail Banking in Europe
Europe's largest economy, Germany was considered as Europe's economic powerhouse.
The German banking industry is dominated by universal banks that combine the functions of commercial and investment banks, including the
securities business and these banks contribute to over 75% of the industry's total business volume.
In Germany, there is high number of banks and the dense branch network-. There are over 2,300 banks in Germany with over 46,000 branches.
Around 1,500 of the banks are very small in size with a business volume of less than €1 billion. Germany's five large private banks, account for
a significantly smaller share of the sector. As per Bundesbank, Central Bank of Germany, the top five banks together hold 12% of
the consumer lending market. In face of the current financial crises, Germans are preferring savings banks to keep their savings safe.
The lack of competitiveness of co-operative banks has been a cause of concern both for the German authorities and business.
Germany still hosts the most number of banks in Europe and exhibits the most fragmented market in the region. Savings and co-operative banks
account for more than 50% of the country's deposit base and close to 70% of the savings deposits.
Competition is intense in the German retail banking sector. Foreign banks such as Citi and Santander are established banks in the highly
competitive consumer finance segment. Direct players such as 1NG DiBa, an online subsidiary of ING Bank of Netherlands, have a strong
presence in deposits and mortgage lending. ING DiBa has very successfully increased its customer base from I million in 2002 to over 6 million
in 2010.
Another key player in the retail banking segment is Deutsche Bank which purchased Norisbank, a consumer bank and Berliner
Bank, an up-market retail bank in 2006.
The direct banking model has proved highly successful in Germany. ING DiBa offers solely via phone, Internet, and a large network of ATMs and
has the third largest number of customers in the country. The financial services subsidiaries of German car makers such as Volkswagen also
operate as direct banks.
In Germany another banking business model is the cooperation of retailers and banks. Big German fashion retailer C&A founded its
own bank in the beginning of 2007 and started offering consumer credits online as well as in its stores.
Investment in technology among banks is very high, not only among the top tier players but smaller banks as well. Adoption of technology by
customers is high too, as is evident from "the popularity of direct banks. At Postbank, over 65% of its customer base uses online banking. In 2007,
with iBanking, Postbank was the first bank in Germany to make it possible to use the iPhone for banking.
Analyst firm, Forrester estimates that 39% of Germans now bank online and this percentage will go up to 47% by 2012. The main drivers of this
trend will be users' confidence in the channel, banks' robust security measures, and strong competition for retail banking customers. Broadband
connectivity too plays a key role in encouraging online banking usage.
Retail Banking in Russia (Based on a study in 2007)
The top ten banks accounted for 63% of retail loans. Overdue retail loans were at 75.5bn roubles.
Overdue auto loans were growing faster than the market.Profitability of retail portfolios was between 23-50%.

The share of retail loans in the loan portfolios increased at a stable rate and was over 24% in the first quarter of 2007. Interest
margins on rouble retail loans had come down from the beginning of 2006 but remained higher than for other loans. This decline was due
to the higher cost of resources and a general fall in interest rates. The retail loan market grew by 75% from the beginning of 2006.
Auto loans, credit cards and mortgages were the fastest growing segments.
Among the banks with the largest loan portfolios are those that entered the retail loan market in 2006, which showed the market
had a large capacity and was not saturated.
Sberbank was the number one in retail banking with a market share of 37% followed by Russian Standard Bank with a market
share of 8%. Other banks had market share of below 5%.
Retail Banking in Asia and South Pacific:
In Korea, household credit accounts for about half of the total outstanding bank loans.
In China, mortgage and consumer credit grew by 70 percent in 2001 and reached 10 percent of the total bank loan outstanding.
Korea, Thailand, Malaysia, Taiwan and Philippines experienced growth in credit cards in the range of 20 percent in 2002 and
China's credit card market is expected to grow by 75 percent to 100 percent in the next three years.
Retail Banking in India : The evolution of retail banking in India can be traced back to the entry of foreign banks.
In Public Sector Banks (PSBs) there was no specific demarcation as retail and non retail activities. Customer and Industry
segmentation was adopted within the overall business plan of banks.
Foreign banks operating in India came out with their consumer banking models with hybrid liability and asset products specifically targeted at the
personal segment in the late 1970 and early 1980s.
Standard Chartered Bank and Grindlays Bank were the pioneers in introducing retail banking products.
State Bank of India and some public sector banks like Indian Overseas Bank, Bank of India, Bank of Baroda and Andhra Bank
developed and marketed asset products and card products to cater to retail segment.Bank of Baroda and Andhra Bank were two
early players in the credit card business among public sector banks.The entry of new generation private sector banks in early 1990s created
a new approach to retail banking by banks. With the advantage of technology right from start, these banks had a clear positioning for retail banking
and aggressively strategised for creating new markets for the retail segment.
PSBs also redefined business model for retail had aggressively entered the retail market space thereafter.
Presently, the retail segment has become an important component in the business design of the banks in India and almost all players
in the foreign, public and private (old and new) space are in this.
Reasons for emergence of retail banking business in India:
Strong economic fundamentals, growing urban population, higher disposable incomes, rise in young population,
emergence of new customer segments, rise in the mass affluent space, explosion of service economy in addition to manufacturing
space,opportunities across geographies and customer segments,huge untapped potential for retail banking in India whereas till recently
retail banking was confined only to the top and higher middle end of the customer segment.
Non Banking Finance Companies (NBFCs) have also aggressively entered in this 'Bottom of the Pyramid' segment and posing a big
threat to the conventional banking players.
Statistics relating to Retail Banking in India : Total asset size of the retail banking industry grew at a rate of 120% to reach a value of $66 billion in
2005. Retail Banking was expected to grow at above 30% and retail assets were expected to reach $300 billion by 2010.
The contribution of retail assets to Gross Domestic Product (GDP)B India is 6% and is comparatively lesser than that of other Asian counterparts like
China (15%), Malaysia (33%), Thailand (24%) and Taiwan (52%). This indicates the lower level of penetration of retail banking in India.
Findings from report by McKinsey & Company on 'Emerging Challenges to the Indian Financial System' (April 2007)
There is huge potential available for personal financial services
Three forces are shaping the personal financial services (PFS) in Asia - the continuing surge of new customers entering the banking system, the
explosive growth of consumer credit at 30 per cent per annum and the emerging need for wealth management due to increasing affluence. These
forces can shift the current focus of banking needs from traditional banking products and services(e.g., deposits, mortgages) to advanced
investment, credit and advisory products and services(mutual funds, unsecured personal loans). With rising income levels, India is becoming an
increasingly attractive market for retail financial products.
In addition to consumer credit, payment products such as credit and debit cards will drive growth,depending on issuers' ability to penetrate second
tier towns and segments such as self employed.
By 2010, the number of high net worth individuals (annual income greater than US $1 million) will grow to 400,000.
In wealth management, local banks have primary relationships and branch networks, but these may not be key buying factors for
more sophisticated consumers.
Success in private banking will require an extensive product range consisting of debt, equities, investment funds, alternative assets and a range of
ancillary services, with an expert advisory process.
To maintain leadership in the emerging sectors, Indian banks will have to develop talent, product and advisory skills within a short


time.
Despite credit and deposits growth in India, banking access remains limited to a few sections of the population and there is great disparity in the
penetration of banking products among the different classes.
Findings from McKinsey study of 2004: Penetration of Credit cards & Auto Loans
Type of Household Credit card
penetration
Auto loan
penetration
Urban Mass household (income between 25,000 to Rs 2 lac p.a.) 4% negligible
mass affluent households (Income between Rs.2 lac to Rs 5 lac p.a. 22% 5%
affluent households (Income between Rs.5 lac to Rs 10 lac) 34% 14%
Performance of Different Segments of Retail Banking from 2004 to 2009
Retail Banking was under strain during 2009 due to financial turmoil across the globe.
The retail asset growth slided down to 4% in 2009. The segments which suffered most were Consumer Durable Loans and Auto
Loans.
The percentage of retail assets to total assets which was at 25.5% in 2006 had came down to 21.3% in 2009.
The number of ATMs as on March 2009 was at 43651 as against the total number of bank branches at 64608.The number of ATMs as a
percentage of bank branches was at 67% as on March 2009 indicating the approach of the banks in customer migration from branches to
electronic mode.
The percentage of branches covered under CBS was 69% offering across geography banking solutions to customers and not restricting to the
branch where the account is held. This gives tremendous opportunities for banks to devise an integrated approach to retail banking. In most of
the commercial banks, there is almost 100% branches under CBS at present. •
The concept of electronic remittance mechanism is picking up fast and this trend offers potential to package a remittance product
as a add on in bank's retail banking package to the customers.
The most affected segment in the retail liabilities space was in the CASA which refers to Current Accounts and Savings Accounts.
Growth in CASA deposits declined to 13.4% in 2009 from 20.2% in 2008.
The share of interest income had almost remained steady at about 84% and the share of non interest income also is almost stable at around
16°A.This indicates that there were no serious efforts by banks to increase the non interest income through fee based product and third party
distribution models.
Status of Retail Banking - Findings by Boston Consulting Group
Retail segment brings in nearly 60% of the total banking revenues worldwide. It is expected that retail banking will remain the
dominant source of revenue for banks worldwide.
Retail banks are facing tougher competition and continuously declining margins and, banks have to develop winning business models
and requisite skills.
Retail Banking segment had picked up momentum during the early 2000s and peaked during 2006 and 2007 but was affected due to the financial
turmoil across the globe from 2008. Though India was insulated-
from the financial turmoil to a great extent due to regulatory discipline, the retail
banking space suffered some setback taking a hit in credit card, housing and consumer loans.
Global Trends in Retail Banking
The retail banking objectives of any bank would mainly focus on the following: Generating superior returns on assets.
Acquiring sufficient funding
Enhancing risk management
Understanding customers and regaining their trust.
Coping with increased demands regarding product transparency and overall service levels.
Achieving multi channel excellence with fully integrated banking channels.
Moving toward higher levels of industrialization (which is mandatory for rapid innovation and deployment.

NISM certification FAQs

1. Who can take NISM Certification Examinations?
NISM conducts certification examination for various Securities Market Participants and Intermediaries as mandated by Securities and Exchange Board of India (SEBI). However, anyone who is keen on learning about the Indian Securites Markets may also take the exam. There is no eligibility requirement with regards to age as well as educational qualification to take the NISM exam.

2. How to register for the NISM Certification Examinations?
To register for any of the NISM exams, one needs to fill in the prescribed Online Registration Form available on the NISM Online Certification System.

3. How to enroll for the NISM Certification Examinations?
After completing the registration process, one needs to choose the exam which one wishes to take, the Testing Centre, Exam date and time slot of their choice on the NISM Online Certification System and fill in the enrolment form. Once the enrolment form is filled and submitted, the candidate is enrolled for that specific exam.

4. What is the validity period of the Candidate’s enrolment?
Validity period of Candidate's enrolment for an examination shall be 180 days from the time of enrolment.

5. Can a candidate choose to reschedule the chosen exam date and time?
Yes, if you wish to modify the exam slot, NISM Online Certification System would allow for one modification request, if made at least 15 days prior to the exam date.

6. Where and when to take the test?
When a candidate enrolls for an Examination, the candidate has to choose the exam, the exam date, the exam time and the test centres. If registered and enrolled through NISM, one can take the exam at NISM, BSE and MCX-SX test centres.

7. How to prepare for the test?
Once a candidate enrols for a particular exam and pays the fee, the candidate would be able to download the soft copy of study material developed to assist the candidates in preparing for the NISM certification examination by logging into NISM Certification Portal. . While NISM certification examination is largely based on the study material provided, NISM does not guarantee that all questions in the examination will be from the study material. Candidates are advised to check the latest circulars and changes in the regulations,if any, that have been covered in any examinations.

8. How to take the Examination?
When the candidate arrives at the designated testing centre to take the exam, the Invigilator will verify his/ her identity by checking the Identity card, which can be either the candidates PAN card, Driving License, Passport, College ID card, Employee ID card, UID etc. On being satisfied after verifying the documents, the Invigilator lets the candidate take the exam.
The exams are online, where for each question, alternative answers are provided. The candidate needs to click on the alternative which he presumes to be correct. For Example,

Q. NISM is the acronym for
National Institute of Stock Market
National Institute of Securities Market
Nations Institute of Securities Market

If the candidate thinks that alternative 'b' is the correct answer to this question, then click the mouse in the radio button provided against the alternative ‘b’ in order to highlight it. You can edit your answer by clicking on any other alternative.
Practice exams are also available on the NISM website to help candidates get accustomed to the pattern of the question paper.

9. How are results declared for the tests?
Only the candidates who have produced their Income Tax Permanent Account Number (PAN Card) during registration would receive the Passing Email Certificate for NISM Certification exam within two weeks of appearing for the examination at their registered email address. Candidates who produced other identification proofs will not receive the certificate. They would receive only the Scorecard at the end of the examination.

10. I have not provided my PAN information at the time of taking the certification examination. How do I obtain the certificate now?
Candidates who have not provided their PAN information during registration may furnish their PAN details to NISM, if enrolled through NISM Online Certification System.
After receiving and verifying PAN details, the candidate will receive the certificate from NISM, if enrolled through NISM Online Certification System. No additional payments are required for obtaining the certificate.

11. What is the fee structure for the NISM exams?
The all inclusive fees for all mandatory NISM Certification Examination is Rupees One Thousand Five Hundred Only (Rs. 1500/-) except NISM-Series-V-B: Mutual Fund Foundation Certification Examination i.e. Rs. One Thousand Two Hundred Only (Rs. 1200/- ). However, for all non mandatory NISM Certification Examinations the all inclusive fees is Rupees One Thousand Seven Hundred and Twenty Five Only (Rs.1725/-).

12. What is the assessment structure of the NISM exams?
The examination has to be completed in 2 hours. There shall be negative marking of 25% for each wrong answer of the marks assigned to a question. However for NISM-Series-V-A: Mutual Fund Distributors Certification Examination, NISM-Series-V-B: Mutual Fund Foundation Certification Examination and NISM Series XII: Securities Markets Foundation Certification Examination there is no negative marking. The passing score for the examination varies from the different examinations NISM conducts.Fee Structure & Validity

13. What is the Validity period of the Certificate?
The validity of the certificate which the candidate on successful completion of the NISM exam is 3 years.

14. How can I receive the study material for NISM Certification Examinations?
You will receive a soft copy of the workbook/study material free of cost after enrolment for the examination. Candidate can buy NISM workbooks online through Taxmann Publications Private Ltd. Visit: www.taxmann.com to place your orders for NISM workbooks. If you prefer to order by phone , please call your nearest store directly to place your order.

15. Do I have to pay for the study material?
You will receive a soft copy of the workbook/study material free of cost after enrolment for the examination. In case if you want to purchase a hardcopy of the workbook, you may contact Taxmann at Web Address: www.taxmann.com

16. What is the procedure to revalidate the certificate after 3 years when the certificate expires?
The certificate shall be revalidated for a period of three years when the candidate completes a programme of Continuing Professional Education (CPE) as specified by NISM.

About Demat account

What do you mean by demat account?
A demat account holds all the shares that you purchase in electronic or
dematerialized form. ... Like the bank account, a demat account holds the
certificates of your financial instruments like shares, bonds, government
securities, mutual funds and exchange traded funds (ETFs).
Why is demat account?
A Demat Account is an account that allows investors to hold their shares in an
electronic form. Stocks in Demat account remain in dematerialized form.
Dematerialization is the process of converting physical shares into electronic
format. ... A demat account can be opened with no balance of shares.
What is demat account and how to use it?
A demat or 'dematerialised' account holds shares in electronic form, thus saving
you the bother of holding shares in paper form. A depository is similar to a bank.
It holds shares, which belong to investors, in electronic form. The investor has to
open an account with the depository, through a Depository Participant.
How do demat account work?
Theoretical Explanation: In India, shares and securities are held electronically in
a dematerialized or Demat account, instead of the investor taking physical
possession of certificates. A Dematerialized account is opened by the investor
while registering with an investment broker (or sub-broker).
What is the benefit of opening demat account?
The benefits of demat are as follows:
Easy and convenient way to hold securities.
Immediate transfer of securities.
No stamp duty on transfer of securities.

Safer than paper-shares (earlier risks associated with physical certificates
such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated)
Is it compulsory to open a trading account with demat account?
Demat accounts have been made mandatory for trading in stocks in India. ... A
demat account can be opened with any brokerage house such as Angel Broking
Pvt Ltd, Stock market investment and trading. To invest in the stock market and
buy equity,
What is my demat account number?
CDSL: -They follows their own Method of Creating Demat account with 16 digits
which means First 8 Digits of DP(Depository ID) represent the Demat account
Service Provider and other 8 digits is your Beneficiary ID(also called Client ID)
which identify your Individual Demat account number.
What are the advantages of having a demat account?
Benefits of a demat account. ... A demat or 'dematerialised' account holds shares
in electronic form, thus saving you the bother of holding shares in paper form.
DEPOSITORY FUNCTIONS. A depository is similar to a bank. It holds shares,
which belong to investors, in electronic form.
Is it necessary to have demat account for SIP?
Demat Account is mandatory for trading in the stock market. It is not required for
Mutual Fund investments of any kind including SIP. For Mutual Funds the
mandatory requirement is filling up a Know Your Customer or KYC.
What is the procedure to open a demat account?
Step 1: To open a demat account, you have to approach a depository participant
(DP), an agent of depository, and fill up an account opening form.
Step 2: Along with the account opening form, you must enclose photocopies of

some documents for proof of identity and proof of address.
Is it necessary to have demat account for mutual funds?
While stocks sold via exchanges need to be held compulsorily in the demat
format, for mutual funds (MFs), this is not so. You can buy MFs through a
distributor, directly through a fund house's website or through your broker on
stock exchanges. Earlier, to buy through an exchange, a demat account was
necessary.
What are the documents required to open a demat account?
1.KYC form (account opening form )
2.PAN card
3.AADHAR card
4.six months Bank statement or passbook xerox
5.two passport size photos
6.cancelled cheques

Current Affairs on August 24th 2018

Today's Headlines from www:

*Economic Times*

📝 Railways aims to wrap up Rs 50,000 crore projects ahead of 2019 elections

📝 Rs 5,500 cr FAME II finalised; all EVs to get subsidy support

📝 Ayushman Bharat scheme credit positive for insurers: Moody's

📝 RInfra defaults on Rs 133 crore NCD redemption payment

📝 SBI yet to recalibrate 18,135 ATMs for new notes: RTI

📝 Resurgent, Adani, JSW & Vedanta eye stressed power projects at half of cost

📝 India needs 3-4 global sized banks: NITI VC Rajiv Kumar

📝 Toshiba Carrier sets up new joint venture for commercial ACs

*Business Standard*

📝 L&T's board approves Rs 90-billion share buyback proposal at Rs 1500 apiece

📝 Cognizant to acquire Noida-based salesforce consulting firm SaaSfocus

📝 Govt imposes standard green clearance norms for as many as 25 sectors

📝 Alibaba Group's sales soar to four-year high on free-spending ways

📝 MF industry AUM to hit Rs 50 trillion in next 5 years: Deepak Parekh

📝 SBI fixes resolution plans for six stressed power assets; RBI deadline ends Monday

📝 Shareholders want Maruti Suzuki to explore entry into luxury car segment

📝 Infosys opens tech hub in North Carolina, hired 4,700 Americans since 2017

*Financial Express*

📝 Force Motors to acquire MAN Trucks’ Pithampur facility

📝 CreditAccess Grameen lists 8.8% below issue price

📝 Reliance Power unit wins $56 million international arbitration award

📝 Raymond looking to sell Thane land to cut debt

📝 Ruchi Soya lenders approve Adani Wilmar’s Rs 6,000 crore bid

📝 Global recycled lead battery market to touch USD 12 billion by 2022

📝 Household savings rate fell 16.3% in FY12-FY17

*Mint*

📝 Britannia Industries to split stock in 1:2 ratio

📝 RIL first Indian company to cross ₹ 8 trillion market cap

📝 RCom sells assets worth Rs 2,000 crore to Reliance Jio

📝 Volkswagen to invest $4 billion by 2025 to build digital businesses, software

📝 Elon Musk hires Morgan Stanley to Help Take Tesla Private

📝 Banks look to oust Lanco Devihalli from road project to recover loans

📝 Panel asks govt to announce 5G spectrum policy by Dec-end

📝 Avantura aims to tap India’s cruiser motorcycle segment.

Credit management mcqs

CREDIT MANAGEMENT 65 mcqs
01. Statutory corporations are controlled by which act for credit management.
a) Indian contract act
b) Company act
c) Act that created them
d) Indian partnership act
e) Indian trust act and public act
Ans: c
02. Which one of the following is not a non fund base credit?
a) Letter of credit
b) Bill discounting
c) Co-acceptance of bills
d) Forward contract
e) Derivatives
Ans: b
03. Mr. Shyam has a house in a rural village, very near to Agra. His house is very old and
required some repairing work. So, Mr. Shyam visited Agra main branch for a loan, how much
amount of loan he can avail from bank under housing finance.
a) 1 lakh
b) 2 Lakh
c) 5 Lakh
d) 10 Lakh
e) 20 Lakh
Ans: a
04. Small enterprises advance and export credit does not financed by both public sector and
PSU (export does not comes under priority sector advance) what percentage of small
enterprises advance and export credit is supposed to be given ___ and ___ respectively.
a) 40 and 32 %
b) 18 and 10%
c) 10 and 12%
d) No target and 12%
e) 10% and no target
Ans: c
05. RBI to free the landing rates of scheduled commercial banks for credit limit over ___.
a) 01 Lakh
b) 02 Lakh
c) 05 lakh
d) 10 Lakh
e) 20 Lakh
Ans: b
06. BPLR system of lending rates replaced by base rate system it was effected from ____.
a) 01 Jun 2010
b) 01 Jul 2011
c) 01 Jan 2010
d) 01 Jul 2010
e) 01 Jul 2003

Ans: d
07. No penal interest should be charged with effect from 10 Oct 2000 to borrower�s loan
under priority sector up to Rs _____.
a) 10000
b) 20000
c) 25000
d) 50000
Ans: c
08. No collateral security is required loan under MSME both manufacturing and production and
providing or rendering of services up to Rs ___.
a) 1 lakh
b) 2 lakh
c) 5 lakh
d) 10 lakh
e) 20 lakh
Ans: C
09. Which accounting standard makes it mandatory for some enterprises to prepare cash Flow
Statement for the accounting period?
a) AS-1
b) AS-3
c) AS-9
d) AS-17
Ans: b
10. Industries & business enterprises whose turnover for the accounting period exceeds Rs.
50 crore has to submit segment-wise reporting as per _____.
a) AS-3
b) AS-7
c) AS-17
d) AS-21
e) AS-22
ANS: C
11. MR. Rohit want to invest some money in XYZ co., he want to purchase some stocks of this
co. How Mr. Rohit can assess to financial statement of the XYZ co.
a) By balance sheet
b) By EPS
c) By financial statement
d) all
Ans: d (EPS- earning per Share)
12. Basic concept used in preparing of financial statements is given below pick up the odd
one.
a) Entity concept
b) Money market concept
c) Going concern concept
d) Dual aspect concept
e) Accrual concept
ANS: b


13. As per company act the maximum period of financial period is 15 months, MR Charles is
GM of ABC co. due to some contingency he is unable to prepare his Financial statement so he
want to extend his financial to another 03 months i.e. 18 months maximum period of financial
statement so MR Charles has to approach to whom for such extension.
a) Income Tex office
b) Reserve bank of India
c) Accountant general of region
d) Registrar of company
Ans: d
14. The companies Act classifies liabilities which shown on the left side of the horizontal form
pick up the odd one.
a) Share capital
b) Reserve & surplus
c) Miscellaneous expenditure
d) Secured & unsecured loans
e) Current liability & provisions
Ans: c
15. Revenue reserve represents accumulated retained earnings from the profits of normal
business operations. These are held in various forms that are given below pick up odd one
___.
a) General reserve
b) Investment allowance reserve
c) Advance payment received
d) Capital redemption reserve
e) Dividend equalization reserve
Ans: c
16. 17. Current liabilities and provisions as per classification under the co. act consist of the
following except one given below.
a) Advance payments received
b) Accrued expenses
c) Pre-paid expenses
d) Unclaimed dividend & dividends
e) Provisions for taxes
f) Gratuity and pensions
Ans: c
17. Which committee has prescribed inventory norms for various industries?
a) Narasimham committee
b) Raghawan committee
c) Tandon committee
d) Chakraborty committee
Ans: c
18. ____ % of small enterprises advances should go to micro enterprises in case of foreign
banks.
a) 20
b) 40
c) 60
d) 80

Ans: c
19. In order to avoid the problem in delay in realization of bills, bank may take advantage of
improved computer/communication network ___.
a) GUI
b) SFMS
c) ETF
d) SWIFT
ANS: b
20. Bank guarantee should normally have a maturity of more than ___.
a) 5 years
b) 10 years
c) 15 years
d) 20 years
e) 25 years
Ans: b
21. The conduct of LC business is governed by����..
a) RBI
b) IRDA
c) UCPDC 600
d) AMFA
e) GOI
Ans: c
22. What should bank do if the owner of the collateral security is someone other than the
borrower?
a) Reject the loan
b) Transfer security to the name of borrower
c) He should become first guarantor of the loan and create charge over the security
d) Security should be hypothecated to the banker
Ans: c
23. What bank should do to avoid asset-liability maturity mismatch that may arise out
extending long tenor to infrastructure projects.
a) Return on investment
b) break- even analysis
c) Liquidity support from IDFC
d) Take-out financing arrangement
e) Sensitivity analysis
Ans: d
24. Frequency of review should vary depending on the magnitude of risk for the average risk
account.
a) 01 month
b) 03 months
c) 06 Months
d) 12 Months
Ans: c
25. In case of company, the charge should be registered with ROC within ___ days from the
date of execution of documents.

a) 15 days
b) 30 days
c) 45 days
d) 2 m
Ans: b
26. What is Priority sector target of Direct & Indirect Agriculture for Domestic banks?
a) 13.5% of ANBC or Off Balance Sheet Items whichever is higher. 4.5% for Indirect Agri.
b) 10% of anbc or 6% for indirect agri
c) 12% of anbc or 4.5% for indirect agri
d) No target
Ans: a (it is 18% in total 13.5 % is direct Ans 4.5% is indirect agric)
27. What are targets and sub-targets of DRI advances?
a) 1% of total outstanding advances of previous year
b) Out of which 40% should go to SC/St
c) 2/3rd must route though Rural and Semi Urban branches
d) All of these
ANS: d
28. What are prudential norms for individuals and Groups as per RBI guidelines? Pick up odd
one.
a) Individuals Groups General 15% of Capital Funds
b) 40% of Capital Funds of borrower group
c) Infrastructure 20% of Capital Funds single borrower
d) 50% of Capital Fund to gp infrastructure project
e) Oil Companies 25% of Capital Funds
f) All correct
ANS: f
29. Monetary and Credit policy is issued by RBI how many times in a year?
a) Monetary Policy is issued annually
b) With quarterly review
c) Credit Policy twice a year
d) All of these
Ans: d
30. RBI has restricted bank to finance against/to _______________.
a) Bank�s own shares
b) Relatives of Directors and Senior Officers
c) Sensitive commodities under selective control measures
d) FDRs of other banks, CDs, Companies for buy back of shares and Industries consuming
Ozone Depleting Substance (ODS)
e) All of these
Ans: e
31. Explain Delivery of credit for WC limits of 10 crore and above.
a) CC component -20% & WCTL component-80%
b) WCTL component-80% & CC Components-20%
c) WCTL components-50% & CC Components-50%
d) CC Components-15% & WCTL components-85%
ANS: a- The proportion is not fixed but is flexible according to requirement of borrower.
32. What are provisioning norms for Standard Assets? Pick up odd one.
a) Direct SME and Direct Agriculture 0.25%
b) Others 0.40%
c) Commercial Real Estate 1%
d) Teaser Housing Loans 2%
e) None of these
Ans: e (It is Classification Rate of provision)
33. In how many years, Foreign banks with 20 branches and above in India need to achieve
PS target of 40%?
a) 2 years
b) 3 years
c) 4 years
d) 5 years
e) 7 years
Ans: d -starting from 1.4.2013 up to 1.4.2018.
34. What is ANBC?
a) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + Investment
in Non-SLR bonds under HTM category + other investments eligible to be treated as PS
b) Bank Credit in India + Investment in Non-SLR bonds under HTM category + other
investments eligible to be treated as PS
c) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + Investment
in Non-SLR bonds under HTM category
d) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + other
investments eligible to be treated as PS.
Ans: b
(Now amended) as per http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7460&Mode=0
35. Base Rate is determined in each bank by ___.
a) ALCO
b) BPLR
c) ALM
d) DSCR
e) SFMS
Ans: a (Asset Liability Management Committee)
36. The target given for advances to weaker sections in percentage of ANBC is ___.
a) 10% for domestic banks
b) 12% for foreign banks
c) No target for domestic banks
d) 10% for foreign banks
Ans: a
37. Mark the incorrect statement.
a) No target is given to domestic banks for small enterprise advances
b) No target is given for agriculture advances in for foreign banks
c) Export credit does not form a part of priority sector for domestic banks
d) Export credit does not form a part of priority sector for foreign banks
Ans: d
38. Gain on revaluation of asset is a ____.

a) General reserve
b) Investment allowance reserve
c) Capital reserve
d) Revenue reserve
Ans: c
39. Banks can file a civil suit for recovery of their dues in civil courts. This option is used for
dues ____.
a) Up to 5 lacs
b) Up to 10 lacs
c) Above 10 lacs only
d) Above 20 lacs only
Ans: c
40. What are provisioning norms for NPAs? Classification of assets Provision on Secured
Provision on Unsecured
a) Sub-Standard 15% 25%
b) Doubtful (D1) 25% 100%
c) Doubtful (D2) 40% 100%
d) Doubtful (D3) 100% 100%
e) Loss Assets 100% 100%
f) All correct
Ans: f
41. You are a loan in charge of ABC one of your a/c of personal loan in the name of Mr.
subhash is not paying his dues in time lots of reminder have been send by you for recovery ,
you have approached him for rehabilitation, he has agreed for that. What will be next step?
a) Rescheduling/restructuring
b) Legal action
c) Exit from the account
d) Compromise
e) Write off
Ans: d
42. Lok adalat (peoples� court) at present resoling issue of NPAs, the enhanced limit from
Aug 2004 is ___.
a) 5 lakh
b) 10 lakh
c) 20 lakh
d) 25 lakh
e) 25 lakh above
Ans: 20
43. Banks and FIs for expediting the recovery cases to DRTs (Debt Recovery Tribunals) for
NPAs value in excess of ___.
a) 05 lakh
b) 10 lakh
c) 20 lakh
d) 25 lakh
e) 25 lakh above
Ans: b
44. SARFAESI Act 2002 has been extended to cover co-operative banks by notitification dated

___.
a) 21 June 2002
b) 21 Jul 2002
c) 21 Jul 2010
d) 28 Jan 2003
e) 01 Jan 2003
Ans: d
45. CDR is a ____ mechanism.
a) Statutory
b) Non-statutory
c) Core
d) None of these
Ans: b (Corporate Debt Restructuring)
46. Define Small Business on the basis of annual Turnover?
Ans. Whose Annual turnover is less than 50 crore.
47. How will you define Retail Customers?
Ans. Borrowers with exposure of more than 5.00 crore
48. What is Priority sector target of Direct & Indirect Agriculture for Domestic banks?
Ans. 13.5% of ANBC or Off Balance Sheet Items whichever is higher. 4.5% for Indirect Agri.
49. What are targets and sub-targets of DRI advances?
Ans. 1% of total outstanding advances of previous year. Out of which 40% should go to SC/St
and 2/3rd must route though Rural and Semi Urban branches.
50. Priority Sector Target For Housing Loan
Ans. Housing Loan ----Rs. 25 lac for Metro stations having population 10.00 lac and above. Rs.
15 Lac for other cities.
For Repair-----------up to 2.00 (Rural and SU) and Rs. 5.00 lac (Urban and Metro)
51. Define Small and Marginal farmer.
Ans. Farmers having land up to 1 hector are Marginal Farmers and others having land up to 2
Hector are Small Farmers.
52. Define Micro, Small and medium for manufacturing and service units.
Ans. Investment in Plant and Machinery for Manufacturing Units
Investment in Equipment For Service Units
Micro Up To Rs. 25 lac Up To Rs. 10 lac
Small Up To Rs. 5.00 crore Up to Rs. 2.00 crore
Medium Up To Rs. 10.00 crore Up To Rs. 5.00 crore
53. What are provisioning norms for NPAs?
Classification of assets Provision on Secured Provision on Unsecured
Sub-Standard 15% 25%
Doubtful (D1) 25% 100%
Doubtful (D2) 40% 100%
Doubtful (D3) 100% 100%
Loss Assets 100% 100%
54. What are Prudential norms for individuals and Groups as per RBI guidelines?
Ans. Individuals Groups
General 15% of Capital Funds 40% of Capital Funds
Infrastructure 20% of Capital Funds 50% of Capital Funds
Oil Companies 25% of Capital Funds


55. How much amount of loan can be sanctioned to Agriculture and SME without Collateral?
Ans. Agriculture --------------1.00 lac
SME----------------------10.00 lac
56. Monetary and Credit policy is issued by RBI how many times in a year?
Ans. Monetary Policy is issued annually with quarterly review and credit Policy twice a year.
57. RBI has restricted bank to finance against/to _______________?
Ans.
1. Bank�s own shares
2. Relatives of Directors and Senior Officers.
3. Sensitive commodities under selective contro measures.
4. FDRs of other banks, CDs, Companies for buy back of shares and Industries consuming
Ozone Depleting Substance (ODS)
58. Explain Delivery of credit for WC limits of 10 crore and above.
Ans. CC component --------20%
WCTL component-----80%
The proportion is not fixed but is flexible according to requirement of borrower.
59. What are provisioning norms for Standard Assets?
Ans. Classification Rate of provision
Direct SME and Direct Agriculture 0.25%
Others 0.40%
Commercial Real Estate 1%
Teaser Housing Loans 2%
60. What are PS targets for Micro and Small Enterprises?
Ans. All MSE loans will be treated as PS. But sub-targets within overall MSE loans are as
under:
40% 20% 40%
Manufacturing units
having Investment in Plant and Machinery
Up to Rs. 5.00 lac
Above 5.00 up Rs. 25.00 lac
Above 25.00 lac
Service Units having Investment in Equipment
Up to Rs. 2.00 lac
Above Rs. 10.00 lac
Above Rs. 10.00 lac
61. What are PS targets for Foreign Banks having less than 20 branches in India?
Ans. Total Priority Sector 32% of ANBC or Off Balance Sheet Items (Higher)
Agriculture No specific target but forms part of Total PS
MSE units No specific target but forms part of Total PS
Export No specific target but forms part of Total PS
Weaker sector No specific target but forms part of Total PS
62. In how many years, Foreign banks with 20 branches and above in India need to achieve
PS target of 40%?
Ans. 5 years starting from 1.4.2013 up to 1.4.2018.
63. What are PS targets of weaker sector for Domestic banks and Foreign banks having 20
and above branches in India?
Ans. 10% of ANBC or Off Balance Sheet Items whichever is higher.
64. What is ANBC?
Ans. Bank Credit in India + Bills Rediscounted with RBI/other approved institutions +
Investment in non-SLR bonds under HTM category + other investments eligible to be treated

as PS.
65. Base Rate is determined in each bank by ____.
Ans. Asset Liability Management Committee (ALCO)Top of Form

Thursday, 23 August 2018

CONCEPT AND ROLE OF A MUTUAL FUND

1.1 Introduction
1.1.1 Concept of Mutual Fund
Mutual fund is a vehicle to mobilize moneys from investors, to invest in different markets
and securities, in line with the investment objectives agreed upon, between the mutual fund
and the investors. In other words, through investment in a mutual fund, a small investor can
avail of professional fund management services offered by an asset management company.
1.1.2 Role of Mutual Funds
Mutual funds perform different roles for different constituencies.
Their primary role is to assist investors in earning an income or building their wealth, by
participating in the opportunities available in various securities and markets. It is possible
for mutual funds to structure a scheme for any kind of investment objective. Thus, the
mutual fund structure, through its various schemes, makes it possible to tap a large corpus
of money from diverse investors.
Therefore, the mutual fund offers schemes. In the industry, the words ‘fund’ and ‘scheme’
are used inter-changeably. Various categories of schemes are called “funds”. In order to
ensure consistency with what is experienced in the market, this Workbook goes by the
industry practice. However, wherever a difference is required to be drawn, the scheme
offering entity is referred to as “mutual fund” or “the fund”.
The money that is raised from investors, ultimately benefits governments, companies or
other entities, directly or indirectly, to raise moneys to invest in various projects or pay for
various expenses.
As a large investor, the mutual funds can keep a check on the operations of the investee
company, and their corporate governance and ethical standards.

The projects that are facilitated through such financing, offer employment to people; the
income they earn helps the employees buy goods and services offered by other companies,
thus supporting projects of these goods and services companies. Thus, overall economic
development is promoted.
The mutual fund industry itself, offers livelihood to a large number of employees of mutual
funds, distributors, registrars and various other service providers.
Higher employment, income and output in the economy boost the revenue collection of the
government through taxes and other means. When these are spent prudently, it promotes
further economic development and nation building.
Mutual funds can also act as a market stabilizer, in countering large inflows or outflows from
foreign investors. Mutual funds are therefore viewed as a key participant in the capital
market of any economy.
1.1.3 Why Mutual Fund Schemes?
Mutual funds seek to mobilize money from all possible investors. Various investors have
different investment preferences. In order to accommodate these preferences, mutual
funds mobilize different pools of money. Each such pool of money is called a mutual fund
scheme.
Every scheme has a pre-announced investment objective. When investors invest in a mutual
fund scheme, they are effectively buying into its investment objective.
1.1.4 How do Mutual Fund Schemes Operate?
Mutual fund schemes announce their investment objective and seek investments from the
public. Depending on how the scheme is structured, it may be open to accept money from
investors, either during a limited period only, or at any time.
The investment that an investor makes in a scheme is translated into a certain number of
‘Units’ in the scheme. Thus, an investor in a scheme is issued units of the scheme.
Under the law, every unit has a face value of Rs. 10. (However, older schemes in the market
may have a different face value). The face value is relevant from an accounting perspective.
The number of units multiplied by its face value (Rs. 10) is the capital of the scheme – its
Unit Capital.
The scheme earns interest income or dividend income on the investments it holds. Further,
when it purchases and sells investments, it earns capital gains or incurs capital losses. These
are called realized capital gains or realized capital losses as the case may be.
Investments owned by the scheme may be quoted in the market at higher than the cost
paid. Such gains in values on securities held are called valuation gains. Similarly, there can

be valuation losses when securities are quoted in the market at a price below the cost at
which the scheme acquired them.
Running the scheme leads to its share of operating expenses (to be discussed in Chapter6).
Investments can be said to have been handled profitably, if the following profitability metric
is positive:
(A) +Interest income
(B) + Dividend income
(C) + Realized capital gains
(D) + Valuation gains
(E) – Realized capital losses
(F) – Valuation losses
(G) – Scheme expenses
When the investment activity is profitable, the true worth of a unit goes up; when there are
losses, the true worth of a unit goes down. The true worth of a unit of the scheme is
otherwise called Net Asset Value (NAV) of the scheme. The concept of NAV is elaborated in
Chapter6.
When a scheme is first made available for investment, it is called a ‘New Fund Offer’ (NFO).
During the NFO, investors may have the chance of buying the units at their face value. Post-
NFO, when they buy into a scheme, they need to pay a price that is linked to its NAV.
The money mobilized from investors is invested by the scheme as per the investment
objective committed. Profits or losses, as the case might be, belong to the investors. The
investor does not however bear a loss higher than the amount invested by him.
Various investors subscribing to an investment objective might have different expectations
on how the profits are to be handled. Some may like it to be paid off regularly as dividends.
Others might like the money to grow in the scheme. Mutual funds address such differential
expectations between investors within a scheme, by offering various options, such as
dividend payout option, dividend re-investment option and growth option. The implications
of each of these options are discussed in Chapter7. An investor buying into a scheme gets to
select the preferred option also.
The relative size of mutual fund companies is assessed by their assets under management
(AUM). When a scheme is first launched, assets under management would be the amount
mobilized from investors. Thereafter, if the scheme has a positive profitability metric, its
AUM goes up; a negative profitability metric will pull it down.
Further, if the scheme is open to receiving money from investors even post-NFO, then such
contributions from investors boost the AUM. Conversely, if the scheme pays any money to

the investors, either as dividend or as consideration for buying back the units of investors,
the AUM falls.
The AUM thus captures the impact of the profitability metric and the flow of unit-holder
money to or from the scheme.
1.1.5 Advantages of Mutual Funds for Investors
Professional Management
Mutual funds offer investors the opportunity to earn an income or build their wealth
through professional management of their investible funds. There are several aspects to
such professional management viz. investing in line with the investment objective, investing
based on adequate research, and ensuring that prudent investment processes are followed.
Affordable Portfolio Diversification
Units of a scheme give investors exposure to a range of securities held in the investment
portfolio of the scheme. Thus, even a small investment of Rs. 500 in a mutual fund scheme
can give investors a diversified investment portfolio.
As will be seen in Chapter12, with diversification, an investor ensures that all the eggs are
not in the same basket. Consequently, the investor is less likely to lose money on all the
investments at the same time. Thus, diversification helps reduce the risk in investment. In
order to achieve the same diversification as a mutual fund scheme, investors will need to set
apart several lakhs of rupees. Instead, they can achieve the diversification through an
investment of less than thousand rupees in a mutual fund scheme.
Economies of Scale
The pooling of large sums of money from so many investors makes it possible for the mutual
fund to engage professional managers to manage the investment. Individual investors with
small amounts to invest cannot, by themselves, afford to engage such professional
management.
Large investment corpus leads to various other economies of scale. For instance, costs
related to investment research and office space get spread across investors. Further, the
higher transaction volume makes it possible to negotiate better terms with brokers, bankers
and other service providers.
Thus, investing through a mutual fund offers a distinct economic advantage to an investor as
compared to direct inve
Sting in terms of cost saving.


Current Affairs on August 23th 2018

Today's Headlines from www:

*Economic Times*

📝 US-China trade war hits $100 billion in goods

📝 Colgate-Palmolive picks Bombay Shaving Company for first Indian investment

📝 Reliance General registers 30% rise in Q1 net profit at Rs 57 crore

📝 P&G Q4 net profit down 43% to Rs 44.55 crore

📝 Centrum set to buy L&T Finance's supply chain business

📝 Gross premium collection of non-life insurers grows 20pc in July

📝 Government imposes restrictions on import of bio-fuels

📝 Indian Oil Corporation to invest over Rs 37,000 cr in TN

*Business Standard*

📝 Curbing piracy could help India's music industry touch Rs 20 bn by 2022

📝 Kerala flood hits spice market as shortage in supply pushes up prices

📝 Fuelled by steel production, coking coal imports may climb to 58 mt by 2023

📝 Finmin asks PSU bank CEOs to check frauds in NPAs or face penal action

📝 Rupee likely to appreciate thanks to relief rally in emerging markets

📝 40% firms failing to file returns under MCA lens, may get deregistered

📝 Sebi planning to add more stocks to additional surveillance mechanism

*Financial Express*

📝 Ramky Infrastructure to sell NAM Expressway to Cube Highways

📝 Analysts concerned about Bajaj Auto profitability

📝 Kharif oilseed sowing up by 8 lakh hectares

📝 Mobile handset production in India to be worth Rs 1.65 lakh crore by 2019: ICEA

📝 Alinz, Petrocard tie up to make portable petrol pumps in India

📝 SC rules in favour of NIA over right to reject insurance claim

📝 Jet Airways to discuss turnaround at Monday board meeting

*Mint*

📝 Haier Appliances to invest ₹3,069 crore to set up manufacturing units in Greater Noida

📝 Flipkart launches 2GUD, new e-commerce portal for refurbished goods

📝 Fed suggests interest rate hike could come soon

📝 22 MFs participated in Reliance Jio’s ₹1,500 crore fundraise via NCDs

📝 P&G June-quarter net profit drops 43% on higher promotional expenses

📝 Singapore’s GIC buys 49% stake in Mumbai-based Provenance Land

📝 Coal India’s CCL says 17 coal mining projects facing delays.

Wednesday, 22 August 2018

Current Affairs on August 22nd 2018

Today's Headlines from www:

*Economic Times*

📝 New global alliance aims to create 50 million jobs in India by 2030

📝 Government unveils draft UDAN scheme for international routes

📝 Tax dept allots 1.96 crore PAN in January-March 2018 quarter

📝 DBS raises India's GDP estimate to 7.4% for FY19

📝 Wind tariffs rise in NTPC's 1200 mw auction

📝 GE Power bags Rs 220-crore order for HPCL's Vizag refinery

📝 India's small renewables firms fighting consolidation wave

📝 French cement company Vicat plans to invest Rs 1,735 cr to boost capacity

*Business Standard*

📝 Glaxo seeks mid-Sept bids for $4 billion Indian Horlicks unit: Report

📝 No GST on petrol, diesel in near future as Centre, states fear revenue loss

📝 Private shipyards knock on govt door for Rs 50-billion working capital

📝 WhatsApp to trace the origin of fake messages, set up servers in India

📝 India, a rich repository, saw imports of minerals, ores going up in FY17

📝 CII plans to launch a new index to judge the quality of fiscal deficit

📝 Payment solutions firm AGS Transact Technologies files Rs 10-bn IPO papers

📝 Market capitalisation of BSE listed firms hits a new high of Rs 157 trn

*Financial Express*

📝 Government asks ONGC to list overseas arm OVL

📝 Sequoia India closes sixth fund at $695 m

📝 Adani Power’s 660 MW Kawai unit shut due to coal shortage

📝 Auto part firms post robust growth in Q1

📝 Kerala floods: Insurers see claims crossing Rs 1,000 crore

📝 NPS goes subscriber-friendly with new PoP norms

📝 Focus on ready-to-sell inventory helps DLF post healthy booking numbers

*Mint*

📝 Ultratech gets CCI nod to acquire Century cement business

📝 Nokia maker HMD aims to double India revenues in four-six months

📝 Flipkart acquires speech recognition platform Liv.ai, eyes more tech buyouts

📝 HDFC AMC profit rises 25% to ₹205.26 crore in June quarter

📝 Government may house Air India debt, non-core assets in SPV

📝 I-T dilutes move to cap appeals based on monetary value

📝 Sebi extends deadline for FPIs to provide list of beneficial owners

📝 GMR Airports in talks to raise funds before IPO.