1. Conventionally, the treasury function was confined to funds management, covering which of the following (which is not correct):

Size: px
Start display at page:

Download "1. Conventionally, the treasury function was confined to funds management, covering which of the following (which is not correct):"

Transcription

1 1. Conventionally, the treasury function was confined to funds management, covering which of the following (which is not correct): a) Maintaining adequate cash balances to meet day-to-day requirements b) Deploying surplus funds generated in the operations c) Sourcing funds to bridge occasional gaps in cash flow d) Lending to large corporates 2. With regard to Banking Treasury functions which of the following statements are correct? a) Treasury function is liquidity management and considered as a service centre b) Treasury is responsible to hold with RBI minimum cash balances as per CRR requirements c) Treasury s responsible to invest funds in approved securities as per SLR requirements 3. From an organizational point of view Treasury is considered to be; a) Investment Centre b) Fund Management department c) Service Centre 4. The scope of treasury has expanded considerably due to; a) Economic reforms, economic development, declining disintermediation b) Deregulation of markets, economic reforms competition c) Competition, increasing intermediation, economic conditions 5. Owning to the interface with markets, managing market risk for the entire bank has become an integral part of Treasury? a) True b)false 6. Which of the following has become part of the Integrated Treasury and added a new dimension to treasury activity?

2 a) Foreign exchange business b) Investment in securities c) a and b both d) only b 7. Which of the following was not a function of treasury in the earlier days? a)maintenance of adequate cash balance b)deploying surplus funds c)maintaining CRR and SLR d)selling hedging products to customers 8. Treasury essentially deals with short term funds-flow but which of the following are exceptions? a) Part of SLR requirement is held till maturity exceeding one year b) Investment in some securities is held till maturity exceeding one year c) Both of the above d) B only 9. Risk Management covers underlying assets and liabilities across (a) short term maturities (b) Medium term maturities (c) Long term maturities a) a and b only b) a and c only c) b and c only d) a, b, c only 10. Integrated treasury refers to integration of which of the following (which is not correct)? a) Money market b) Securities market c) Foreign exchange operations d) Credit appraisal 11. In Indian context, integrated treasury is the direct result of which reforms?

3 a) Deregulation of interest rates b) Partial convertibility of rupee c) b only d) a and b only 12. Which of the following statement is not correct? a) Rupee is freely convertible on current account b) Rupee is not freely convertible on capital account c) Rupee is to a large extent, also convertible on capital account d) Rupee is not freely convertible on current account 13. Rupee is convertible on capital account due to which of the following relaxations by RBI (which is not true)? a) Foreign direct investment b) Overseas direct investment by Indian Corporates c) Foreign currency operations of Resident Indians d) Speculative Investments on stock markets abroad 14. To-day s treasury is a: a) service centre b) Accounting centre c) Profit centre 15. Banks look for interest arbitrage across the currency markets and are in a position to; a) Shift swiftly a placement in Rupee denominated commercial paper to lending in USD in Global Inter-bank market b) Source funds in Global market and swap the funds into domestic currency or vice-versa c) b only d) a and b both 16. Banks have gained wider access to foreign currency funds through which of the following?

4 a) Deposits maintained by NRIs b) Cash balances in EEFC accounts of exporters c) Float funds from external commercial borrowings 17. The banks distinguish between rupee cash flows and foreign currency cash flows and an integrated cash flow has become the basis for treasury operations? a) True b) False 18. With the instant Payment and Settlement Systems, the funds can be transferred easily; a) form long term to short-term investments b) Form securities market to money market c) From one currency to another currency 19. Integrated treasury is in a position to operate across the sectors and across the currency markets in search of; a) Higher returns b) Mobilizing low cost funds for liquidity needs c) a only d) Both of the above 20. Cash flow is a cash flow irrespective of the currency in which it is denominated? True/ False 21. Which of the following is false? a) Interest changes globally have no impact on interest rates domestically b) Proprietary positions facilitate treasury to do: True/ False 22. A Treasury transaction with customers is known as; a) Merchant banking business

5 b) Trading business c) Investment business 23. Many corporate customers have their own treasury departments and they expect to receive an integrated service from the bank in which of the following areas (which is not true)? a) Hedging export receivable b) Raising foreign currency loans c) Overseas investments d) Arranging funds for them in overseas markets 24. Which is the driving force for integrated treasury (a) Interest arbitrage (b) Investment opportunities (c) Risk Management a) a and b only b) a and c only c) b and c only d) a, b, c only 25. Which of the following are functions of Integrated Treasury (a) Meeting reserve requirements (b) Efficient merchant services (c) Global cash management (d) credit management a) a and d only b) a and c only c) b and d only d) a, b, c only 1.d 2.d 3.c 4.b 5.a 6.c 7.d 8.c 9.d 10.d 11.d 12.d 13.d 14.c 15.d 16.d 17.b 18.d 19.d 20.a 21.a 22.a 23.d 24.d 25.d 1. Profit may be optimized exploiting market opportunities in (which one is not true); a) Forex market

6 b) Money market c) Stock exchange speculative market d) Securities market 2. Globalization is the process of integrating domestic market with global markets, characterized by free capital flows and minimum regulatory requirements? a)true b) False 3. Which of the following is less in treasury operations? a) Interest rate risk b) Credit risk c) Price risk 4. Which of the following statement is not correct? a) The Capital flows represent direct and indirect investments b) Ultimate motive of Capital flows is investing returns on investments within India c) Capital flows involve transfer of wealth 5. Which department of RBI has been renamed w.e.f. Jan 2004? a) Foreign Exchange Department b) Exchange Control Department c) None of the above d) Both of the above 6. Which Act relating to foreign exchange, has replaced the earlier one? a) Foreign Exchange Management Act b) Foreign Exchange Regulation Act c) Both of the above

7 7. Globalization process in India has influenced directly, which of the following? a) Interest rates b) Exchange rates c) Both of the above 8. Which of the following are not used to hedge currency and interest rate risks? a) Securitization b) Forward c) Option d) Swaps 9. Which of the following have contributed to deepening the debt market and eliminating counterparty risks in treasury dealings? a) Mutual funds b) Domestic Investment Institutions c) Foreign Investment Institutions 10. Which of the following involves interest arbitrage? a) Buying securities with a view to sell later at a higher price b) Borrowing in one currency and lending in another currency 11. Which Payment and settlement system, is working in India, comparable to any Global system? a) Clearing Corporation of India Ltd b) National Securities Depository Corporation Ltd c) a and b both d) a only 12. Payment and Settlement System has greatly facilitated which of the following transactions of treasury?

8 a) Foreign exchange, money market, commodity market b) Money market, forex market, securities c) Securities market, commodity market 13. Equity Derivatives such as futures and options have become popular with investors, although thebank treasuries have as yet not been permitted to use Equity Derivatives? a) True/False 14. RBI has permitted banks to borrow and invest through their overseas correspondents in foreign currency subject to which of the following ceiling? a) 25% of their Tier-1 Capital b) 25% of their Tier-1 Capital or USD 10 million c) 25% of their Tier-1 Capital or USD 10 million which ever is higher d) 25% of their Tier-1 Capital or USD 10 million which ever is lower 15. The process of globalization is in no way confined only to banks having overseas branches, but is equally applicable to all other banks that have a full fledged treasury activity? a) True/ False 16. Which of the following statement is not true? a) Treasury operates in markets with high credit risk b) Treasury activity is highly leveraged, with return on capital being very high c) Operational costs in treasury are low as compared to branch banking 17. Which of the following is a major risk in speculative trading? a)operational risk b)credit risk c)price risk d)none of the above

9 18. The Treasury is run by a few specialist staff, engaged in high-value transactions, per transaction size generally not being below; a) Rs)10 million b) Rs)25 million c) Rs.50 million 19. Buying and selling foreign currency to customers constitutes a major source of fee-based income for the banks? a) True/ False 20. Which of the following statements is true? a) The banks buy foreign currency from customers (Mainly Importers) b) The banks sell foreign currency to customers (Mainly Exporter) c) The banks sell foreign currency in the inter-bank market 21. Banks generally maintain a stock of foreign currency for the purpose of merchant business, as it is not convenient to buy and sell from inter-bank market? a) True/ False 22. The difference between buying and selling rate is called; a) Spread b) Profit c) b only d) a and b both 23. What is Open Position? a) Any residual position of a bank at the end of the day-overbought b) Any residual position of a bank at the end of the day-oversold c) None of the above d) a and b both

10 24. Which if the following is true? a) RBI permits trading subject to certain conditions b) A dealer can deal both in secondary and primary markets 25. Open position involves Exchange Risk, as the value of foreign currency may change may change overnight? a) True/ False 1. c 2.a 3.b 4.b 5.b 6.a 7.c 8.a 9.d 10.b 11.c 12.b 13.a 14. c 15.a 16.a 17.c 18.c 19.a 20.c 21.b 22.d 23.d 24.a 25.a 1. Conventional banking operation in money market pertained to (a) Lending surplus funds (b) Borrowing funds when required (c) Interest on funds lent in the market being source of income a) a and b only b) a and c only c) b and c only d) a, b, c only 2. Till recently-even five years back-banks were circumspect in borrowing money market funds only for the purpose of lending with a profit? a) True/False 3. Which of the following statements is not correct? a) Banks have always been investing in Govt. Securities being risk-prone b) Banks have been investing in strategic investments- such as Subsidiary and Associate companies c) Banks have been investing in Govt. Securities to satisfy SLR requirement 4. Which of the following is not the primary source of income for bank treasury? a) Buying and selling of foreign exchange b) Interest on loans and advances

11 c) interest on money market lending 5. Treasury profits are increasingly derived from market operations involving (which one is not true. a) Buying and selling of securities b) Borrowing and lending of securities c) Investing in loans 6. Which of the following is not true? a) Mid office is not responsible for settlements b) Back office does not monitor balances in Nostro accounts 7. Treasury operates across the currency and security markets and hence in a position to find out where the interest differentials are in its favour? a) True/ False 8. Interest Arbitrage cannot be got from which of the following? a) The treasury may borrow in one currency and lend in another currency or vice-versa depending on the domestic and foreign interest rates b) The treasury may borrow in money market and invest short-term in commercial paper or T-bills c) Banks with good credit standing may borrow large amounts in money market and lend to other banks at rates marginally lower than those rates 9. Trading is not a speculative activity where profits arise out of favorable price movements during the interval between buying and selling? a True/ False 10. Treasury has an Open position which is also called as; a) Trading position b) Propriety position

12 c) A only d) a and b both 11. While trading in currencies and securities, treasuries are open to which of the following risks? a) Market risk b) Price risk c) b only d) a and b both 12. The treasuries may incur loss while trading in currencies and securities if; a) Price of the currency (Exchange rate) moves adversely b) Price of the security move adversely c) Any of the above 13. Which of the following is caused by delay in settlement? a) Operational risk b) Credit risk c) Reputation risk 14. For what purpose, a company buts a Forward Rate agreement from Treasury to fix interest rate for commercial paper? a) To reduce interest cost b) To reduce exchange risk c) b only d) a and b both 15. Traditionally the cost of funds was accounted only as interest cost, ignoring; a) Interest rate b) Maturity mismatch between sources and uses of funds c) b only

13 d) Both the above 16. In the context of integrated treasury operations, which of the following form of organization is preferred? a) Treasury Department b) Treasury Specialized branch c) None of the above 17. Treasury plays an important role in transfer pricing i)e) allocation of costs to various departments/ branches of the bank on a rational basis? a)true b) False 18. Treasury Specialized Branch has which of the following features? a) It functions with its own accounting system b) It can act as Authorized Dealer for foreign exchange c) It can participate in clearing and settlement systems directly 19. The Treasury is headed by a Senior Management Person of the Bank normally; a) General Manager b) Dy. Gen. Manager c) Vice-President d) Any of the above 20. Which of the following is not true? a)mid office and back office report to one Head b) Treasury operations are subject to RBI guidelines 21. The treasury has which of the following divisions? a) Dealing Room, accounting cell, back office b) Bank Office, dealing room, accounting office c) Middle Office, dealing room, back office

14 d) dealing room and back office only 22. Dealing Room has which of the following dealers? a) Chief Dealer, security dealer, retail dealer b) Specialized dealer, Chief dealer, corporate Dealer c) Corporate Dealer, security dealer d) any of the above 23. Which of the following statement is correct? a) Each dealer specializes in one of the markets, i.e. (Foreign Exchange), Money Market and Securities Market b) The Dealers are generally familiar with all the markets in an Integrated Treasury c) It is common to have a separate Corporate Dealer exclusively to attend to major corporate customers 24. What are the features of Dealing Room (which one is not correct)? a) It buys and sells directly in the market b) Each dealer specializes in all the markets c) It is a Front office 25. The Securities market is divided in which of the following markets? a) Primary market and secondary market b) Secondary Market and developed markets c) Primary market and forex market 1. d 2.a 3.a 4.b 5.c 6.b 7.a 8.c 9.b 10.d 11.d 12.c 13.c 14. d 15.d 16.b 17.a 18.d 19.d 20.a 21.c 22.b 23.d a

15 1. The Securities Dealer deals with which of the following markets? a) Primary market b) Secondary market c) Both of the above 2. Spot settlement relates to settlement: a) Two days from trade date b) Two working days from trade date c) Three days from trade date d) Three working days from trade date 3. The securities dealer deals in (which one is false); a) Buying and selling of securities already available in the market b) Auction of Govt. securities c) Auction of shares by companies 4. Which of the following statements is not correct? a) Primary market issues are subscribed by Investment Department b) Investment department is situated outside the Dealing room c) Investment department is not part of Treasury 5. Why Investment department is situated outside the Dealing Room, but as part of Treasury (a) Primary issues need appraisal of credit risk (b) Through examination of issue terms (c) Documentation for secured debt (Through a Trustee) a) a and b only b) a and c only c) b and c only

16 d) a, b, c only 6. Back up Office is responsible for verification and settlement of the deals concluded by the Dealers? a) True/ False 7. The deals are verified from which of the following sources (which is not correct)? a) Deal slips prepared by the Dealers b) Confirmation received from the counterparties c) Over phone with the counterparties through the brokers only 8. Back office deals with which of the following? a) Maintaining Nostro accounts b) Maintaining funding and security accounts with RBI c) Maintaining Demat Accounts with SEBI 9. Which of the following is false? a) Exchange rates under TOD and TOM settlement are generally favourable to the buyer b) All exchange rate under quoted on the screen are for spot settlement unless otherwise stated 10. Settlement refers to receipt and payment of amounts following deals made by dealers in respect of; a) Sale and purchase of foreign currency b) Lending and borrowing c) Sale and purchase of securities 11. Which of the following statement is not correct about Settlement? a) All payments and receipts must take place on value date b) Delay in settlement may result in financial gain or loss to the bank

17 c) Any delay in payment is considered a default by the bank 12. Middle office is created exclusively to provide information to the management (MIS) and to implement risk management systems? a) True/ False 13. Middle Office acts performs the following function (which is not correct); a) To fix exposure limits b) To stop loss limits of Treasury c) Reporting to the management on key parameters of performance 14. Minimum marketable investment is normally; a) Rs.5 Crore b) Rs.10 Crore c) Rs.15 Crore d) Rs.20 Crore 15. Which are other Departments in Treasury, mainly administrative in nature? a) Accounts and administration b) Systems Administration c) Remittances (SWIFT/ RTGS etc) 16. Which of the following is not false? For making available foreign currency loans to domestic borrowers: a) Prior clearance is required from treasury for funds availability b) Treasury has no role in deciding the cost of such loans 17. In smaller banks, Middle Office may also function as ALM Support Group, as the balance sheet risk management is closely connected to Treasury risk management? a) True/ False

18 18. Foreign Exchange Market is the most liquid market as free currencies cannot be readily bought and sold? a)true b) False 19. Which among the following is not the free currency in the Foreign Exchange market? a) USD b) Rupee c) EUR 20. Free currencies belong to those countries; whose markets are; a) Underdeveloped b) Highly developed c) Developing 21. Currencies which are not fully convertible have which of the following features? a) Have unlimited demand b) May not be traded actively c) Does not enjoy high liquidity 22. Foreign Exchange Market is the most transparent in that the exchange rate movements are reflected on the screen from moment to moment, even when the trade has taken place in far off markets? a) True/ False 23. Which of the following statements is not correct is Spot Trades? a) Spot Settlement takes place 3 working days from the trade date b) Currency may be bought and sold, with settlement in the same day

19 c) All exchange rates quoted on the screen, or in the print, are for spot trade unless otherwise mentioned 24. Notice money refers to: a) Accepting deposits payable after getting notice of withdrawal from the depositors b) Lending to customers, repayable after serving a fixed period notice c) A type of borrowing and lending in the call money market 25. Which of the following statements is not correct relating to TOD and TOM? a) Rates are generally quoted at a discount to the spot rate b) Rates are less favorable to the buyer of the currency c) Rates are generally quoted at a premium to the spot rate 1.b 2.b 3.c 4.c 5.d 6.a 7.c 8.c 9.a 10.d 11.b 12.a 13.a 14.a 15.d 16.a 17.a 18.b 19.b 20.b 21.b 22.a 23.a 24.c 25.c 1. The customers who expect payments or receipts in foreign currency, cover their currency risk by entering into forward contracts with their respective banks? a) True/ False 2. Forward exchange rates are arrived (a) On the basis of interest rate differentials of two currencies (b) Differential to be added to the spot exchange rate (c) Differential to be deducted from the spot exchange rate a) a and b only b) a and c only c) b and c only d) a, b, c only 3. The interest rate differential is added to the spot rate of;

20 a) Low interest Yielding currency b) High interest yielding currency c) b only 4. Which of the following statement is incorrect that Forward rates fully reflect interest rate differentials only in; a) Perfect markets b) Non-convertible currencies c) Highly liquid markets 5. Buying of USD (with rupees) in the spot market and selling same in forward market or vice versa is called; a) Spot transaction b) Forward transaction c) Swap transaction 6. In which of the following credit risk is very low? a) Term loan to customers b) Cash credit loan to customers c) Discounting of foreign currency bills d) Rediscounting of foreign currency bills 7. Foreign exchange surpluses of the bank arise out from which of the following (which is not true)? a) Profits from treasury operations b) Forex lending in overseas/ domestic market c) Profits from overseas branch operations

21 8. Which of the following avenues are available to the treasury for investment of forex surpluses? a) Inter-bank loans b) Short-term investments c) Nostro accounts 9. Which of the following statements is not correct? a) Balances held in Nostro accounts do not earn any interest b) Treasury is able to earn nominal interest on idle funds in the Nostro accounts c) Balances held in Nostro accounts earn interest 10. Which of the following is not correct? a) Treasury is involved in credit appraisals b) Treasury is not involved in disbursements c) Treasury is not involved in credit appraisals 11. Clearance is sought as to the availability of foreign currency funds and cost of funds, prior to sanction of foreign currency advances? a) True/ False 12. Which of the following statements is not correct that rediscounting of foreign bills is ; a) An inter-bank advance b) Treasury product c) Is priced slightly lower than market placements 13. Treasury bills are issued by a) Government of India b) State Governments

22 c) a and b d) Corporates 14. Though rediscounting of foreign bills is an inter-bank exposure, RBI has allowed banks to include it in their credit portfolio? a) True/ False 15. Money markets refer to raising and deploying short-term funds with maturity of generally; a) Not exceeding one year b) Not exceeding two years c) Not exceeding five years 16. Inter-bank market is not related to which of the following? a) Call Money b) Notice Money c) Term Money d) In the money 17. Call Money refers to placements of funds? a) For five days b) Overnight c) For two days d) For three days 18. Notice Money refers to placement of funds for periods not exceeding; a) 5 days b) 7 days c) 14 days d) 15 days 19. Term money refers to placement of funds for period not exceeding;

23 a) 1 year b) 2 years c) 3 years d) 5 years 20. Which of the following is not false? a) Commercial Paper can be issued only by banks b) Banks can invest in commercial papers 21. Inter-bank market is considered to be risk-free market, though in reality, the banks do carry counterparty risk? a) True b) False 22. Bank treasuries deal in which of the following? a) Inter-bank markets b) Short term investment paper issued by Govt. c) Short term investment paper issued by companies in Public & Private Sector 23. Treasury bills are issued by whom? a) RBI b) State PSUs c) Govt. of India 24. Treasury bills are issued for maturities of; a) 15 days to 30 days b) 30 days to 45 days c) 45 days to 90 days d) 91 days to 364 days

24 25. Which of the following is not correct that the interest on treasury bills is by way of; a) Discount b) Premium c) Implicit yield 1.a 2.d 3.a 4.b 5.c 6.d 7.b 8.d 9.c 10.a 11.a 12.c 13.a 14.a 15.a 16.d 17.b 18.c 19.a 20.b 21.a 22.d 23.c 24.d 25.b 1. Each issue of 91 days T-Bills is for; a) Rs.100 Crore b) Rs. 250 Crore c) Rs. 400 Crore d) Rs.500 Crore 2. Which of the following is not true? a) Certificate of deposit is long term product b) Certificate of deposit can be transferred by endorsement and delivery 3. Auction of 91-days Treasury bills is conducted on; a) Weekly basis b) Fortnightly c) Monthly 4. Each issue of 364 days T-Bills is for; a) Rs.500 Crore b) Rs.750 Core c) Rs.1000 Crore d) Rs.1500 Crore

25 5. Auction of 364 days T-Bills is conducted on; a) Weekly basis b) Fortnightly c) Monthly d) Bimonthly 6. Treasury bills are open for investment by whom (a) Corporate (b) High Net worth Individuals (c) NRIs a) a and b only b) a and c only c) b and c only d) a, b, c, only 7. T-Bills being sovereign paper and preferred investment of banks, the implicit yield of T-Bills is accepted as a benchmark for term money lending? True/ False 8. Notice Money refers to placement of funds for periods not exceeding; a) 5 days b) 7 days c) 14 days d) 15 days 9. Term money refers to placement of funds for period not exceeding; a) 1 year b) 2 years c) 3 years d) 5 years 10. Which of the following is not false? a) Commercial Paper can be issued only by banks b) Banks can invest in commercial papers

26 11. Inter-bank market is considered to be risk-free market, though in reality, the banks do carry counterparty risk? a) True/ False 12. Bank treasuries deal in which of the following? a) Inter-bank markets b) Short term investment paper issued by Govt. c) Short term investment paper issued by companies in Public & Private Sector 13. Treasury bills are issued by whom? a) RBI b) State PSUs c) Govt) of India 14. Treasury bills are issued for maturities of; a) 15 days to 30 days b) 30 days to 45 days c) 45 days to 90 days d) 91 days to 364 days 15. Which of the following is not correct that the interest on treasury bills is by way of; a) Discount b) Premium c) Implicit yield 16. Each issue of 91 days T-Bills is for; a) Rs. 100 Crore b) Rs. 250 Crore

27 c) Rs. 400 Crore d) Rs.500 Crore 17. Which of the following is not true? a) Certificate of deposit is long term product b) Certificate of deposit can be transferred by endorsement and delivery 18. Auction of 91-days Treasury bills is conducted on; a) Weekly basis b) Fortnightly c) Monthly 19. Each issue of 364 days T-Bills is for; a) Rs.500 Crore b) Rs.750 Core c) Rs.1000 Crore d) Rs.1500 Crore 20. Auction of 364 days T-Bills is conducted on; a) Weekly basis b) Fortnightly c) Monthly d) Bimonthly 21. Treasury bills are open for investment by whom (a) Corporate (b) High Net worth Individuals (c) NRIs a) a and b only b) a and c only c) b and c only d) a, b, c, only

28 22. T-Bills being sovereign paper and preferred investment of banks, the implicit yield of T-Bills is accepted as a benchmark for term money lending? True/ False 23. Which of the following statements is not correct about Treasury Bills? a) T-bills cannot be traded in secondary market b) It is I Electronic form c) It is to be held in SGL account maintained by banks with RBI 24. Which of the following statements is not correct? a) Yielding interest on T-bills is higher than the call money market b) T-bills is a convenient way of parking short-term surpluses in risk-free investment c) It is not possible to trade T-bills in secondary market 25. Which of the following is not false? a) Reverse repo is not used for infusing liquidity in the financial system b) Under bill rediscounting, the lending bank gets its liquidity strengthened 1. d 2.a 3.a 4.c 5.b 6.d 7.a 8.c 9.a 10.b 11.a 12.d 13.c 14. d 15.b 16.d 17.a 18.a 19.c 20.b 21.d 22.a 23.a 24.c 25.a 1. Commercial paper is issued by; a) RBI b) Corporate c) Commercial bank d) Central Govt. 2. Commercial paper is issued with a maximum maturity period of ; a) Five years

29 b) Three years c) Two years d) One years 3. The minimum maturity period of Commercial Paper is; a) 60 days b) 45 days c) 15 days d) 7 days 4. The issue of Commercial paper should be for a minimum amount of; a) Rs)50 lakh b) Rs)25 lakh c) Rs)10 lakh d) Rs)5 lakh 5. Which of the following statements is not correct? a) Issuing company of CP should have a minimum credit rating of P2 b) Banks can invest in CP only if it is in Demat form c) Issue of CP is governed by guidelines issued by Finance Ministry 6. Commercial paper does not have which of the following characteristic? a) It carries no credit risk b) It is issued in the form of promissory note c) It is issued for discounted amount 7. Which of the following statement is correct? a) CP is not a negotiable instrument b) CP does not have a fairly active market

30 c) CP is to be compulsorily in D-mat form 8. Government securities can be issued for a period ranging from : a) 7 days to 1 year b) Overnight to 1 year c) 1 month to 1 year d) 1 year to 10 years e) 1 year to 30 years 9. The price of CP is quoted for the face value of ; a) Rs)100 b) Rs)500 c) Rs)1000 d) Rs) Banks tend to invest in CPs through the treasury due to which of the following (a) Credit risk is relatively low and limited to a short period (b) Yield is higher than Inter-bank money market yield (c) It being a tradable instrument, there is not liquidity risk a) a and b only b) a and c only c) b and c only d) a, b, c only 11. Certificates of Deposit is a debt instrument and issued by; a) RBI b) Banks c) Corporate 12. Which of the following statements is not correct? a) CD is not a negotiable instrument

31 b) CD is issued against deposit of funds c) It is more expensive as the CD attracts stamp duty 13. Which of the following characteristics relate to Certificates of Deposit? a) It is meant primarily for high net worth individuals b) It generally bears interest rates higher than regular deposits of the bank c) Period of maturity may range between 7 days and 1 year 14. Minimum amount of the CD is; a) Rs)1 lakh b) Rs)2 lakh c) Rs)5 lakh d) Rs)10 lakh 15. Which of the following securities are actively traded by the Treasury? a) HTM b) AFS c) HFT 16. Which of the following statements is not correct about Repo Transaction? a) It is a security transaction b) It is used for lending and borrowing money market funds c) It refers to sale of securities with a commitment to repurchase the same at a later stage 17. Whether the statement is correct that the margin in case of Repo transaction is called Hair cut as the principal amount exchange against the securities is lower than the market value of securities? a) True/ False 18. Which of the following have been permitted to enter into Repo transactions?

32 a) Bank s financial institutions and high net worth individuals b) Corporates, high net worth individuals c) Financial institutions, banks, corporates d) Banks, Corporates, High net worth individuals 19. Whether the statement is correct that once the Non-bank Financial Institutions withdraw totally from the call money market, they would need to resort to Repos for raising/ deploying short-term funds? a) True/ False 20. Treasury discounts bills of exchange, of short term nature, with a tenure of; a) 1 to 3 months b) 3 to 6 months c) 6 to 9 months d) 9 to 12 months 21. In case of bills rediscounting, the borrowing banks is able to infuse liquidity from out of assets and at the same time improves its liquidity ratio as the bills are taken out of credit portfolio and added to the inter-bank liability? a) True/ False 22. Which of the following is not false? a) In CBLO, CCIL is the common counter party b) As per RBI instructions, banks are not permitted to make investments in equity shares of listed companies 23. Government securities are issued by; a) Central Finance Ministry b) RBI c) State Bank of India d) None of above 24. Cash management bills have maturity of; a) Less than one year

33 b) Less than 91 days c) Less than 76 days d) Less than 60 days 25. The basis points value is associated with; a) risk pricing b) risk measurement c) risk mitigation d) risk control 1.b 2.d 3.d 4.d 5.c 6.a 7.c 8.e 9.a 10.d 11.b 12.a 13.d 14.a 15.c 16.d 17.a 18.c 19.a 20.b 21.a 22.a 23.b 24.b RBI issues govt. bonds for various maturities ranging from; a) 1 year to 30 years b) 1 year to 40 years c) 1 year to 45 years 2. RBI issues bonds with which of the following features? a) Step-up coupons b) Coupons linked to inflation index c) Floating rate of coupons 3. Corporate Debt Paper includes which of the following? a) Medium-term bonds debentures only b) Long-term bonds and debentures only c) Long-term bonds and medium term bonds d) Medium and long term bonds and debentures

34 4. Which of the following is not false? a) Credit availed through banks increases M3 b) Ensuring stability of financial market is not the aim of monetary policy 5. Which of the following is false? a) Reserve money is the same as Reserve asset b) CRR is part of reserve money 6. The yield on bonds and debentures issued by corporates is lower than Govt. Securities? a) True/ False 7. Which of the following statements is correct in case of bonds/ debentures issued by Corporates? a) Banks are allowed to invest only in D-Mat securities b) Global ratings are necessary if such debt papers are issued in International market c) Higher the credit risk, higher is the yield on such debt papers 8. Debentures are governed by; a) Law of contracts b) Company Law c) Negotiable Instruments Act 9. Bonds are transferable only by registration? a) True/ False 10. Debentures and bonds may be issued with different structures in order to enhance the marketability of the instruments as also to reduce the cost of the issue) The variations include which of the following (a) Zero coupon bonds (b) Deep discount bonds (c) Put/ Call or convertibility options a) a and b only b) a and c only

35 c) b and c only d) a, b, c only 11. Debenture and bond-holders, like other creditors, have prior legal claim over the equity and a) preference stock-holders, on the assets of the company? True/ False 12. Which of the following is not true? a) RBI cannot increase CRR beyond a ceiling b) RBI cannot increase SLR beyond a ceiling 13. Daily cash balances of banks with RBI for the purpose of CRR should not fall below % of average CRR to be maintained by it. a) 50% b) 60% c) 70% d) 80% 14. Indian Stock market is one of the oldest in Asia with well developed institutional structure and the regulator is; a) RBI b) Govt. of India c) SEBI d) None of these 15. Major investors in domestic stock market are which of the following? a) Mutual funds and private companies b) Insurance companies and securitization companies c) private fund mangers and large companies d) mutual fund, insurances companies and private fund mangers 16. Which of the following have been introduced in the market as Derivative products? a) Index Futures

36 b) Index options c) Stock futures/ options 17. Foreign currency funds are converted into rupees for portfolio investment and rupees funds with profits are reconverted into foreign currency for repatriation? a) True b) False 18. Who is the Note Issuing Authority in India? a) Govt. of India b) State bank of India c) RBI 19. Broad Money or M3 includes which of the following (which is not correct)? a) Currency I circulation b) Demand deposits with banks c) Time deposits with banks d) Borrowing and refinancing by banks 20. Which of the following is correct? a) RBI pays a modest interest of 3% on CRR balances kept by banks b) The CRR to be kept is calculated on fortnightly basis 21. Which of the following is incorrect? a) LAF has no connection with Repo b) RBI provides automatic repo to banks in case of shortfall of funds for meeting RTGS commitments 22. Broad money is funded by which of the following? a) Credit availed by the public and the Govt. b) Net foreign currency assets of RBI

37 c) Banking system (Sources of money) 23. The monetary policy of RBI is aimed at controlling the rate of inflation and ensuring stability of financial markets? a) True/ False 24. Which is the indicator of money supply that has not been absorbed by the real economy? a) Surplus funds available with banks b) Currency/ Notes with RBI c) Funds held with the Govt. 25. A shortage of liquidity may result in high interest rates and depreciation of rupee exchange rate and an excess of liquidity may lead to inflation? a) True/ False 1.a 2.d 3.d 4.a 5.a 6.b 7.d 8.b 9.b 10.d 11.a 12.a 13.c 14.c 15.d 16.d 17.a 18.c 19.d 20.b 21.a 22.d 23.a 24.a 25.a 1. The minimum and maximum levels or CRR are prescribed at which percentage of demand and time liabilities of the banks? a) prescribed by RBI b) 3% and 20% c) 4% and 15% d) 5% and 25% 2. The minimum and maximum levels of SLR are prescribed at which percentage of DTL of banks? a) 10% and 25% b) 15% and 30% c) 20% and 35%

38 d) RBI discretion and 40% 3. Which of the following is not correct? a) Under RTGS, there is floor for customer remittances b) Under NDS OM, the identity of the bidder is automatically revealed to the other party 4. Which of the following is not false? a) Deals done outside NDS need not be reported through NDS b) Fx clear is not a system developed by RBI 5. Which of the following statements is correct? a) CRR is governed by Banking Regulation Act of 1949 b) SLR is governed by RBI Act of 1934 c) RBI is authorized to increase or decrease the CRR and SLR at its discretion within prescribed ceiling 6. CRR and SLR are to be maintained on; a) Weekly basis b) Fortnightly basis c) Monthly basis 7. What is the effect of any shortfall in meeting the CRR/ SLR requirements? a) Serious penalties are attracted from RBI only b) capacity of the bank to undertake business is affected only c) a only d) a and b all 8. Which of the following is not a component of Demand and Term Liabilities of the banks? a) Demand deposits b) Term deposits

39 c) Foreign outward remittances in transit d) Loans and advances 9. Which of the following liabilities are not excluded from the CRR stipulation? a) Paid up capital and reserve b) Refinance availed fro RBI and Apex Financial Institutions c) Funds borrowed from other banks 10. Bank has to maintain cash balances with RBI to meet the prescribed CRR on average during the fortnight, subject to daily cash balances not falling below of which percentage of the amount required for CRR? a) 50% b) 60% c) 70% d) 75% 11. Which of the following is true? a) CCIL settles inter-bank USD/INR deals on gross basis b) In the equity secondary market deals, settlement risk is eliminated 12. Which of the following is not false? a) NEFT is meant only for inter-bank transfers b) Interbank fund transfers are not settled through SWIFT 13. RBI pays interest on the cash balances in excess of which of the following to the bank of their NDTL? a) 3% b) No payment c) 5% d) 6% 14. RBI pays interest on cash balances to the bank;

40 a) Fortnightly b) no payment c) Quarterly d) Half yearly 15. SLR is to be maintained in which of the following form? a) Cash balances b) Gold c) Approved securities valued as per norms prescribed by RBI d) Cash with RBI in CRR account 16. SLR is to be maintained on which of the following of NDTL of the banks? a) Daily balances b) Weekly balances c) Fortnight balances d) Monthly balances 17. RBI has imposed which of the following ceiling over call money lending and borrowing by banks of their net worth respectively? a) 10% and 5% b) 25% and 10% c) 50% and 20% d) 100% and 25% 18. Which of the following statement is true about payment and settlement system? a) All security dealings take place through Negotiated Dealing system b) All inter-bank payments and high value customer payments are settled instantly under RTGS system c) Banks accounts with all the branch offices of RBI are integrated under SWIFT 19. Which of the following is not true?

41 a) For entering into high value transactions in the forex market treasury needs to have funds in advance b) In treasury transactions, the trades made by the dealers are not vetted by any other official) 20. Which of the following is true? a) Volatility has not role in creating market risk b) Price of security does not change in the same directions as interest rate moves 21. The Institute for Banking Research and Technology (IBRDT) has developed the Indian Financial Network (INFINET) as a secure communication backbone for the banking and financial sectors? a) True/ False 22. In banks other than the larger banks, the Treasury does not have which of the following? a) Front office b) Middle office c) Back office 23. Which of the following statements is not true? a) Back office of a Treasury checks and validates deal-wise information form accounting point of view b) Middle office of a Treasury is responsible for overall risk management and MIS c) Front office validates and confirms the deals 24. Which of the following is not responsible to ensure that treasury complies with the exposure limits meticulously? a) Front office b) Middle office c) Back office

42 25. The banks fix exposure limits under Treasury functions, for which of the following counter parties? a) Banks, security brokers, borrowers b) Mutual funds, sponsor banks, borrowers c) Security brokers only d) Banks, mutual funds, security brokers 1.a 2.d 3.b 4.b 5.c 6.b 7.d 8.d 9.c 10.c 11.b 12.b 13.b 14.b 15.d 16.c 17.d 18.c 19.a 20.b 21.a 22.b 23.c 24.a 25.d 1. Exposure limits are fixed for counter parties on the basis of their a) Net worth & market reputation only b) Market reputation and track record only c) Track record and market reputation only d) Track record, net worth and market reputation only 2. Which of the following is true? a) Funding risk has the effect of increasing the cost b) Setting up exposure limit is not a preventive measure, but a post risk management measure 3. Which of the following is true? a) A dealer has bought 1 million USD and sold 2 million USD in the market at 10)30 am) The position of 1 million USD he has, is known as long position) b) Both long and short positions have potential to create risk 4. Which of the following is trading limit (a) Limits on deal size (b) Limits o open positions (c) Stop-loss limits a) a and b only b) a and c only c) b and c only d) a, b, c only

43 5. Stop-loss limits prevent the dealer from waiting indefinitely and limit the losses to a level which is acceptable to the management? a) True b) False 6. Stop loss limits are prescribed (which one is false) a) Per deal b) Per day c) Per month d) Per annum 7. Real Time Gross Settlement System has which of the following features (which is not correct) a) Banks need to maintain adequate funds throughout the day due to instant payment system b) All inter-bank payments are settled within a pre-given time interval c) Bank account with all the branch offices of RBI are integrated 8. Liquidity Adjustment Facility has which of the features (which is not correct)? a) It is applicable to Repo transactions with RBI and with other banks b) It is used to monitor day to day market liquidity c) With the mechanism RBI lends funds top Banking sector trough Repo instrument 9. Which of the following features relate to Negotiated Dealing System: a) All inter-bank Money Market deals are done under this system b) Physical delivery of instruments not required c) Securities clearing against assured payment is handled by CCI 10. Which of the following is not true? a) Day light limit will always be lower than the overmight limit.

44 b) Overnight position is not less risky than the day light limit 11. Overnight position limit is to be approved by: a) The head of treasury operations b) Investment committee c) Chief dealer d) RBI 12. Demand deposits, being component of DTL, in case of CRR calculation, do not consists, which of the following? a) Deposits in current and savings account b) Margin money for LCs or bank guarantees c) Overdue fixed deposits d) Term deposits to mature within the same financial year 13. Which of the following come under exempted categories where only minimum CRR is to be met irrespective of actual CRR? a) Net inter-bank borrowings/ deposits with maturity not exceeding 14 days b) Credit balances in ACU (Us$) accounts c) DTL in respect of their Offshore Banking Units (OBUs) 14. Bank office does not have which of the following characteristics? a) It obtains independent confirmation of each and every deal from the counterparty b) It generates deals c) It settles the deal only if it is within the exposure limits allowed to the counterparty 15. Back office is responsible for compliance with various risk limits imposed by the management and RBI, as well as for accuracy and objectivity of the transaction detail? a) True/ False 16. Middle Office has which of the following characteristics?

45 a) It monitors liquidity and interest rates closely b) It is a bridge between front office and the back office c) It maintain the overall risk profile of treasury 17. All the exposure limits are revieweda) Once in a Quarter b) Once in a Half Year c) Once in a Year 18. Gap refers to: a) The time difference between buying a currency and selling the same in the market b) The difference between the buying price and selling price of the currency c) The difference in delivery period of the currency 19. Which of the following is true? a) Since treasury is a profit centre, the dealer has to ensure that in each transaction he makes a profit b) If the bond is traded at a price lesser than its face value, the current yield on the bond will be more 20. While the exposure limits are generally left to the bank s direction, RBI has imposed which ceiling of total business in a year with individual brokers? a) 2% b) 5% c) 10% d) 15% 21. Market risk is a confluence of (a) liquidity risk (b) Equity risk (c) Commodity risk a) a and b only b) a and c only

46 c) b and c only d) a, b, c only 22. Value at risk (VAR) is the most probable loss that we may incur in normal market conditions over a given period due to volatility of; a) Commodity prices b) Exchange rates c) Interest rates 23. The probability of loss is expressed as a percentage-var at 99% level implies probability of loss as; a) 1% b) 100% c) 101% 24. Which of the following approach is to calculate the VaR (a) Parametric approach (b) Monte Carlo approach (c) Historical approach (d) Altman s Z approach: a) a and b only b) a and c only c) d and c only d) a, b, c only 25. The effective return on a bond based on which of the following is known as yield? a) Coupon rate b) Market price c) Residual maturity 1. d 2.a 3.b 4.d 5.a 6.d 7.b 8.a 9.d 10.a 11.d 12.d 13.d 14.b 15.a 16.d 17.c 18.c 19.b 20.b 21.d 22.d 23.a 24.d 25.d

47 1. The exposure limit for individual brokers is: a) 5% b) 10% c) 12% d) 15% of the total business during the year 2. If the overnight VaR for a currency is 25bp at 95% confidence level, it means that the chances of the currency fluctuating beyond 25bp is: a) More b) Less 3. Which of the following statements is incorrect? a) Yield and price of a bond move in inverse proportion b) If the rises, price of a bond falls c) If the yield falls, price of a bond also falls 4. Duration is a measure widely used in; a) Investment business b) All assets where interest rate risk is present c) All liabilities where interest risk is present 5. Ability of a business concern to borrow or build up assets on the basis of a given capital, is called; a) debt service coverage ratio b) goodwill c) reputation d) leverage

48 6. The leverage is expressed in the form of in case of companies and as ---- in the case of banks a) debt service coverage ratio, capital adequacy ratio b) debt equity ratio, capital adequacy ratio c) capital adequacy ratio, capital to risk assets ratio d) total liabilities to net worth ration, capital fund ratio 7. Treasury operations take place over phone and these are confirmed later on in writing between to of the counterparties: a) front office, front office b) front office, back office c) back office, front office d) back office, back office 8. When one account (funding account) is debited and another account (security account) is credited at the same time in case of security purchase, this is called; a) payment and settlement b) settlement (vs) delivery c) delivery (vs) payment d) payment (vs) delivery 9. Which of the following is correct? a) A derivate product has an independent value b) A derivative product need not be OTC product only 10. Interest cost of funds locked in a trading position is called; a) swap b) pre-settlement c) carry d) speculation 11. Items like interest swaps that do not appear in the balance sheet, are called;

49 a) contingent assets b) liabilities c) off-balance sheet items d) swap items 12. The line where the yields of risk free securities for different maturities at a give point of time are graphically plotted is called; a) yield curve b) price line c) indifference curve d) yield maturity 13. Degree of fluctuation of markets with reference to variable such as interest rates and exchange rates, measured as standard deviation from the mean of the variable is called; a) mark to marked b) fluctuation curve c) volatility d) speculation 14. Valuation of trading positions applying current market value as at the end of the day, is called; a) mark to marked b) fluctuation curve c) volatility d) speculation 15. Which of the following is false? a) In a OTC product, margin has to be maintained b) In a exchange traded product, counter party risk is not present 16. When duration is divided with the interest rate, it is called; a) duration

50 b) mean duration c) standard duration d) modified duration 17. The the duration, the ---- is the sensitivity of the bond price to change in interest rates; a) longer, greater b) shorter, smaller c) longer, smaller d) shorter, greater is the weighted average measure of life a bond, where the time of receipt of a cash flow is weighted by the present value of the cash flow: a) gap b) maturity c) duration d) value at risk (VaR) is an estimate of potential loss, necessarily for a given period, at a given confidence level: a) gap b) maturity c) duration d) value at risk (VaR) 20. Which of the following statements is incorrect? a) The bonds carry a coupon rate of interest which is payable on 100% value of the bond b) Bonds may be treaded at a premium c) Bonds may not be traded at a discount 21. Which of the following is correct?

TREASURY MANAGEMENT

TREASURY MANAGEMENT TREASURY MANAGEMENT 1. Fund management has been the primary activity of treasury, but treasury is also responsible for Risk Management & plays an active part in ALM. 2. D-mat accounts are maintained by

More information

CAIIB Risk Management Module C TREASURY MANAGEMENT

CAIIB Risk Management Module C TREASURY MANAGEMENT CAIIB Risk Management Module C TREASURY MANAGEMENT It is necessary to understand and appreciate the three distinct roles Treasury is expected to play: a. Liquidity Management: Treasury is responsible for

More information

CERTIFICATE COURSE ON FOREIGN EXCHANGE & TREASURY MANAGEMENT

CERTIFICATE COURSE ON FOREIGN EXCHANGE & TREASURY MANAGEMENT CERTIFICATE COURSE ON FOREIGN EXCHANGE & TREASURY MANAGEMENT The Certificate Course is an advanced course on Treasury Management (including Forex Treasury) for Chartered Accountants organized by Committee

More information

CERTIFICATE COURSE ON FOREX AND TREASURY MANAGEMENT

CERTIFICATE COURSE ON FOREX AND TREASURY MANAGEMENT CERTIFICATE COURSE ON FOREX AND TREASURY MANAGEMENT The Certificate Course is an advanced course in Treasury Management (including Forex Treasury) Participants are presumed to have advanced theoretical

More information

BANK FINANCIAL MANAGEMENT

BANK FINANCIAL MANAGEMENT BANK FINANCIAL MANAGEMENT Q1. If the daily volatility of stocks is 0.2%, what is its 10-day volatility? 1) 0.63 2) 2.00 3) 0.75 4) 0.68 Q2. Given that Tier I capital is Rs. 500 crores and Tier II capital

More information

CENTRE DEBT MARKET IN INDIA KNOWLEDGE. Introduction. Which sectors are covered by the Index?

CENTRE DEBT MARKET IN INDIA KNOWLEDGE.   Introduction. Which sectors are covered by the Index? DEBT MARKET IN INDIA Introduction Indian debt markets, in the early nineties, were characterised by controls on pricing of assets, segmentation of markets and barriers to entry, low levels of liquidity,

More information

contents PAGe Foreword I-3 Recommended Reading I-5 Syllabus I-7 Chapter-heads I-11 PaPer i ChaPTer 1 : FInanCIal markets

contents PAGe Foreword I-3 Recommended Reading I-5 Syllabus I-7 Chapter-heads I-11 PaPer i ChaPTer 1 : FInanCIal markets contents PAGe Foreword I-3 Recommended Reading I-5 Syllabus I-7 Chapter-heads I-11 ChaPTer 1 : PaPer i Treasury & InvesTmenT management FInanCIal markets 1.1 An Overview of Markets and Functions 3 1.2

More information

GURUJI24.COM EXPOSURES NORMS. Exposure

GURUJI24.COM EXPOSURES NORMS. Exposure Exposure EXPOSURES NORMS Exposure includes credit exposure (funded and non-funded credit limits) and investment exposure (including underwriting and similar commitments). The sanctioned limits or outstanding,

More information

Seminar on Central Statutory Audit of Banks. Issues in Treasury Operations and Regulatory Requirements thereof. D h a n a n j a y J.

Seminar on Central Statutory Audit of Banks. Issues in Treasury Operations and Regulatory Requirements thereof. D h a n a n j a y J. Seminar on Central Statutory Audit of Banks Issues in Treasury Operations and Regulatory Requirements thereof Organi sed & Hosted by SIRC of ICAI D h a n a n j a y J. G o k h a l e P a r t n e r M / s.

More information

Post - Graduate Diploma in Security Analysis & Trading (2 nd Semester Examination)

Post - Graduate Diploma in Security Analysis & Trading (2 nd Semester Examination) Post - Graduate Diploma in Security Analysis & Trading (2 nd Semester Examination) Paper 206 FIMMDA Debt Market (Basic) Maximum Marks: 100 Time Allowed: 3 hours Roll No. Name. INSTRUCTIONS: 1. This Question

More information

Treasury - Regulatory Perspective & Risk Management in Banks. Yogesh Satpute, FCA. 15 th December 2018

Treasury - Regulatory Perspective & Risk Management in Banks. Yogesh Satpute, FCA. 15 th December 2018 54 th BFSICM Roundtable WIRC, ICAI Towers, Mumbai. Treasury - Regulatory Perspective & Risk Management in Banks Satpute@icai.org 15 th December 2018 1 Presentation For ensuring the alignment of session

More information

Home >> FAQs - Display Date: 17/10/2014

Home >> FAQs - Display Date: 17/10/2014 http://www.rbi.org.in/commonman/english/scripts/faqs.aspx?id=711#23 Home >> FAQs - Display Date: 17/10/2014 Government Securities Market in India A Primer 1. What is a Government Security? 1.1 A Government

More information

RBI/ /90 IDMD.PCD.5 / / July 1, 2011

RBI/ /90 IDMD.PCD.5 / / July 1, 2011 RBI/ 2011-12/90 IDMD.PCD.5 /14.01.03/2011-12 July 1, 2011 The Chairmen / Chief Executives of All Scheduled Banks (excluding RRBs and LABs) and All-India Term Lending and Refinancing Institutions Dear Sir/Madam,

More information

Money and Capital Markets

Money and Capital Markets Money and Capital Markets DISCUSSION TOPICS Financial Markets Money Markets Capital Markets Money Market Instruments Capital Market Instruments Fixed Income Equity Financial Risk Management Description

More information

Y V Reddy: Developing debt markets in India review and prospects

Y V Reddy: Developing debt markets in India review and prospects Y V Reddy: Developing debt markets in India review and prospects Remarks by Dr Y V Reddy, Governor of the Reserve Bank of India, at a meeting of Central Bank Governors of Asia, Latin America and the Caribbean,

More information

RBI/ /46 DBOD.No.FID.FIC.1/ / July 2, Master Circular - Resource Raising Norms for Financial Institutions

RBI/ /46 DBOD.No.FID.FIC.1/ / July 2, Master Circular - Resource Raising Norms for Financial Institutions RBI/2012-13/46 DBOD.No.FID.FIC.1/01.02.00/2012-13 July 2, 2012 The CEOs of the All-India Term Lending and Refinancing Institutions (Exim Bank, NABARD, NHB and SIDBI) Dear Sir, Master Circular - Resource

More information

FOREIGN EXCHANGE RISK MANAGEMENT

FOREIGN EXCHANGE RISK MANAGEMENT FOREIGN EXCHANGE RISK MANAGEMENT 1 RISKS BEING COVERED Foreign Exchange Risk Management primarily tries to mitigate the Exchange rate risk arising out on the risk of an investment's value changing due

More information

2. Statutory disclosures as per RBI Provisions and contingencies recognised in the Profit and Loss Account comprise of:

2. Statutory disclosures as per RBI Provisions and contingencies recognised in the Profit and Loss Account comprise of: NOTES forming part of the financial statements for the year ended 31 March, 2016 (Currency: In Indian Rupees) 1. The shareholders of the Bank at the 20 th Annual General Meeting held on 27 June, 2014,

More information

Course Outline: Treasury & Capital s Equity s Trading & Operations Equity s - Types of s Classification - Primary and Secondary markets. Cycle A brief outline of the life cycle of an equity share - from

More information

Internal Audit of NBFCs

Internal Audit of NBFCs Internal Audit of NBFCs Introduction to NBFC Meaning of NBFC A company registered under the Companies Act, 2013 engaged in: the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities

More information

Financial Derivatives

Financial Derivatives Derivatives in ALM Financial Derivatives Swaps Hedge Contracts Forward Rate Agreements Futures Options Caps, Floors and Collars Swaps Agreement between two counterparties to exchange the cash flows. Cash

More information

CHAPTER 29 DERIVATIVES

CHAPTER 29 DERIVATIVES CHAPTER 29 DERIVATIVES 1 CHAPTER 29 DERIVATIVES INDEX Para No TOPIC Page No 29 Introduction 3 29 1 Foreign Currency Option 3 29 2 Foreign Currency Rupee Swaps 4 29 2 1 SWAPS 5 29 2 2 Currency Swaps 5 29

More information

UNIT 10 FINANCIAL MARKETS

UNIT 10 FINANCIAL MARKETS UNIT 10 FINANCIAL MARKETS Introduction : Financial Market is a market for creation and exchange of financial assets like share, bonds etc. It helps in mobilising savings and channelising them into the

More information

NISM-Series-I: Currency Derivatives Certification Examination

NISM-Series-I: Currency Derivatives Certification Examination SAMPLE QUESTIONS 1) The market where currencies are traded is known as the. (a) Equity Market (b) Bond Market (c) Fixed Income Market (d) Foreign Exchange Market 2) The USD/CAD (US Canadian Dollars) currency

More information

Chapter 6 : Money Markets

Chapter 6 : Money Markets 1 Chapter 6 : Money Markets Chapter Objectives Provide a background on money market securities Explain how institutional investors use money markets Explain the globalization of money markets 2 Why so

More information

Government Cash Balances - Linkages with Liquidity

Government Cash Balances - Linkages with Liquidity Amol Agrawal amol@stcipd.com +91-22-6622234 Government Cash Balances - Linkages with Liquidity We have been releasing reports in the nature of primers on RBI s operations and accounts (Refer Guide to Weekly

More information

Master Circular - Resource Raising Norms for Financial Institutions Date: 1 st July 2013

Master Circular - Resource Raising Norms for Financial Institutions Date: 1 st July 2013 1. Introduction The process of reforms in the Indian financial sector since the early nineties has had profound implications for the resource raising of all India Financial Institutions (FIs). With the

More information

Financial Markets Quiz 1

Financial Markets Quiz 1 Financial Markets Quiz 1 1. Which of the following are key functions of financial markets? a. Raise capital for companies b. Allocate capital efficiently c. Transfer risk from risk averse to risk seeking

More information

Treasury & Risk Management - Guidelines. -Vinay Advani

Treasury & Risk Management - Guidelines. -Vinay Advani Treasury & Risk Management - Guidelines -Vinay Advani CONTENTS S No. Particulars 1. Treasury in Banks Basics & Functions 2. Sections of Treasury Department 3. Internal Control Guidelines 4. Hedging for

More information

FOREIGN EXCHANGE TRANSACTIONS

FOREIGN EXCHANGE TRANSACTIONS FOREIGN EXCHANGE TRANSACTIONS Sl Subject Page No. 1. General 2. Export bills purchased/ discounted/ negotiated: 2.1 Foreign Currency Bill 2.2 Rupee Bill 3 2.3 Bill sent to another bank in India 2.4 Indemnity

More information

UBS AG, Mumbai Branch (Scheduled Commercial Bank) (Incorporated in Switzerland with limited liability)

UBS AG, Mumbai Branch (Scheduled Commercial Bank) (Incorporated in Switzerland with limited liability) Contents 1. Background 2. Scope of Application 3. Capital Structure 4. Capital Adequacy- Capital requirement for credit, market and operational risks 5. Risk Management and Control Framework Overview 6.

More information

Clearcorp Dealing Systems (India) Limited FACTBOOK 2017

Clearcorp Dealing Systems (India) Limited FACTBOOK 2017 Clearcorp Dealing Systems (India) Limited FACTBOOK 2017 CLEARCORP DEALING SYSTEMS (INDIA) LIMITED The Clearcorp Dealing Systems (India) Limited was set up as a 100% subsidiary of CCIL to manage the various

More information

Financial Market in India. Samir K Mahajan

Financial Market in India. Samir K Mahajan Financial Market in India Financial Market Financial Market is a mechanism which enables participants to deal in financial claims. It s a platform to in which lender and borrower of funds interact to determine

More information

MONEY & BANKING. Samir K Mahajan

MONEY & BANKING. Samir K Mahajan MONEY & BANKING MONEY: MEANING AND FUNCTIONS Money is regarded any object which is generally accepted as: medium of exchange unit of account i.e. common measure of value standard of deferred payment store

More information

Wholesale Debt Market Segment 5

Wholesale Debt Market Segment 5 Wholesale Debt Market Segment 5 60 Wholesale Debt Market Segment 5 The Exchange started its trading operations in June 1994 by enabling the Wholesale Debt Market (WDM) segment of the Exchange. This segment

More information

Monetary Policy and Role of Banks

Monetary Policy and Role of Banks Monetary Policy and Role of Banks February 2015 The Federal Reserve has been pumping in huge amounts into the US economy by way of Open Market Operations (OMOs) for the last few years. It bought securities

More information

Summary of Reserve Bank of India s New Guidelines for NBFCs

Summary of Reserve Bank of India s New Guidelines for NBFCs Summary of Reserve Bank of India s New Guidelines for NBFCs CA Rajesh Pabari D r e a m O p t i m u s C o n s u l t i n g 1 8 0, G r o u n d F l o o r, R a g h u l e e l a M a l l, K a n d i v a l i ( W

More information

News from the Reserve Bank of India RBI circulars can be accessed through the link:

News from the Reserve Bank of India RBI circulars can be accessed through the link: News from the Reserve Bank of India RBI circulars can be accessed through the link: http://www.rbi.org.in/scripts/notificationuser.aspx RETAIL LIABILITIES Issue of Term Deposit Receipt Query Banks during

More information

A monthly publication from South Indian Bank. To kindle interest in economic affairs... To empower the student community...

A monthly publication from South Indian Bank.  To kindle interest in economic affairs... To empower the student community... To kindle interest in economic affairs... To empower the student community... Open YAccess www.sib.co.in ho2099@sib.co.in A monthly publication from South Indian Bank SIB STUDENTS ECONOMIC FORUM Experience

More information

Risk Management - CAIIB

Risk Management - CAIIB UNIT 1: COMPONENTS OF ASSETS AND LIABILITIES IN BANK S BALANCE THEIR MANAGEMENT SHEET AND ALM encompasses the analysis and development of goals and objectives, the development of long term strategic plans,

More information

RBI/ /69 DBR.No.FID.FIC.1/ / July 1, Master Circular - Resource Raising Norms for Financial Institutions

RBI/ /69 DBR.No.FID.FIC.1/ / July 1, Master Circular - Resource Raising Norms for Financial Institutions RBI/2015-16/69 DBR.No.FID.FIC.1/01.02.00/2015-16 July 1, 2015 All-India Term Lending and Refinancing Institutions (Exim Bank, NABARD, NHB and SIDBI) Dear Sir, Master Circular - Resource Raising Norms for

More information

VALUATION UPDATE. *Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

VALUATION UPDATE. *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 29th October 2018 VALUATION UPDATE On 8th September 2018 ICRA downgraded long and short-term ratings of Infrastructure Leasing and Financial Services Limited (IL&FS). Rating was downgraded to below investment

More information

Vendor: ACI. Exam Code: 3I Exam Name: ACI DEALING CERTIFICATE. Version: Demo

Vendor: ACI. Exam Code: 3I Exam Name: ACI DEALING CERTIFICATE. Version: Demo Vendor: ACI Exam Code: 3I0-008 Exam Name: ACI DEALING CERTIFICATE Version: Demo QUESTION 1 How many USD would you have to invest at 3.5% to be repaid USD125 million (principal plus interest) in 30 days?

More information

Consultants Pvt. Ltd.

Consultants Pvt. Ltd. RBI/2014-15/102 DBOD.No.FID.FIC.1/01.02.00/2014-15 July 1, 2014 The CEOs of the All-India Term Lending and Refinancing Institutions (Exim Bank, NABARD, NHB and SIDBI) Dear Sir, Master Circular - Resource

More information

Debt Market. Introduction

Debt Market. Introduction NATIONAL STOCK EXCHANGE OF INDIA LTD. Ind. Sec. Mkt. Rev. (2002) INDIAN SECURITIES MARKET - A REVIEW http://www.nseindia.com Debt Market Introduction The debt market in India comprises of two main segments,

More information

Bombay Chamber s Presentation before Dr. D.Subbarao, Governor, Reserve Bank of India. October 10, 2011

Bombay Chamber s Presentation before Dr. D.Subbarao, Governor, Reserve Bank of India. October 10, 2011 Bombay Chamber s Presentation before Dr. D.Subbarao, Governor, Reserve Bank of India at the Pre-Policy Consultation Meeting on NBFC issues October 10, 2011 Suggestions on proposed change in RBI NBFC Prudential

More information

Introduction to Masala Bonds. B S Rathi Director Sumedha Fiscal Services Ltd /

Introduction to Masala Bonds. B S Rathi Director Sumedha Fiscal Services Ltd / Introduction to Masala Bonds by B S Rathi Director Sumedha Fiscal Services Ltd 9867751705/022 40332400 bs_rathi@sumedhafiscal.com 1 Agenda Origination of Masala Bonds Masala Bonds Key Features Overseas

More information

Ch. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM

Ch. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM Ch. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM To "finance" something means to pay for it. Since money (or credit) is the means of payment, "financial" basically means "pertaining to money or credit." Financial

More information

SLR Requirements. RBI Guidelines on valuation of securities

SLR Requirements. RBI Guidelines on valuation of securities SLR Requirements RBI Guidelines on valuation of securities Maintenance of Statutory Liquidity Ratio (SLR) Reserve Bank can prescribe the SLR for Scheduled Commercial Banks in specified assets. The value

More information

Half Yearly Report on Management of Foreign Exchange Reserves

Half Yearly Report on Management of Foreign Exchange Reserves Half Yearly Report on Management of Foreign Exchange Reserves April-September 2016 Reserve Bank of India Department of External Investments and Operations (DEIO) Central Office, Mumbai Report on Management

More information

18th Year of Publication. A monthly publication from South Indian Bank.

18th Year of Publication. A monthly publication from South Indian Bank. To kindle interest in economic affairs... To empower the student community... Open YAccess www.sib.co.in ho2099@sib.co.in A monthly publication from South Indian Bank 18th Year of Publication SIB STUDENTS

More information

Wholesale Debt Market Segment 5

Wholesale Debt Market Segment 5 Wholesale Debt Market Segment 5 64 Wholesale Debt Market Segment 5 The Exchange started its trading operations in June 1994 by enabling the Wholesale Debt Market (WDM) segment of the Exchange. This segment

More information

A primary dealer is a firm which buys government securities directly from a government, with the intention of reselling them to others, thus acting

A primary dealer is a firm which buys government securities directly from a government, with the intention of reselling them to others, thus acting PRIMARY DEALERSHIP AND AUDIT OF PRIMARY DEALERSHIP MEANING A primary dealer is a firm which buys government securities directly from a government, with the intention of reselling them to others, thus acting

More information

Market Risk Management Framework. July 28, 2012

Market Risk Management Framework. July 28, 2012 Market Risk Management Framework July 28, 2012 Views or opinions in this presentation are solely those of the presenter and do not necessarily represent those of ICICI Bank Limited 2 Introduction Agenda

More information

The Branch does not have any interest in insurance entities.

The Branch does not have any interest in insurance entities. Basel II Pillar 3 disclosures Background The disclosures and analysis provided herein below are in respect of the Mumbai branch ( the Bank ) of Credit Suisse AG which is incorporated in Switzerland with

More information

MiFID II: Information on Financial instruments

MiFID II: Information on Financial instruments MiFID II: Information on Financial instruments A. Introduction This information is provided to you being categorized as a Professional client to inform you on financial instruments offered by Rabobank

More information

CONCEPT MAPPING: CHAPTER 10 FINANCIAL MARKETS 8Marks

CONCEPT MAPPING: CHAPTER 10 FINANCIAL MARKETS 8Marks CONCEPT MAPPING: CHAPTER 10 FINANCIAL MARKETS 8Marks Key Concepts in nutshell: CONCEPT OF FINANCIAL MARKET: It refers to the market which creates and exchanges financial assets. FUNCTIONS OF FINANICIAL

More information

NBFC Prudential Norms & Compliances Important Aspects

NBFC Prudential Norms & Compliances Important Aspects NBFC Prudential Norms & Compliances Important Aspects Bombay Chartered Accountants Society CA Bhavesh Vora Coverage Existence of NBFCs Last Decade of NBFC Banks Vs. Non-Banks Meaning of NBFCs Major Changes

More information

Futures. June Product Disclosure Statement. Issuer: BBY Limited ABN AFSL

Futures. June Product Disclosure Statement. Issuer: BBY Limited ABN AFSL Futures Product Disclosure Statement June 2011 http://www.bby.com.au Issuer: BBY Limited ABN 80 006 707 777 AFSL 238095 Section 1 Important Information Purpose of this PDS This Product Disclosure Statement

More information

Capital Adequacy Compliance

Capital Adequacy Compliance Capital Adequacy Compliance Objectives of Capital Adequacy Requirement Fundamental objective for holding adequate capital by banks Strengthen the soundness of banks Stability of the banking system Provide

More information

Administrative Notice No. 7 Implementation of the Capital Adequacy Directive for Credit Institutions

Administrative Notice No. 7 Implementation of the Capital Adequacy Directive for Credit Institutions No. 7 Implementation of the Capital Adequacy Directive for Credit Institutions Date of Paper : 23 January 1998 Revised 5th May 2006 Version Number : V1.02 File Location : document2 Table of Contents Preface...

More information

ADDENDUM Invesco India Dynamic Equity Fund I nv esco India Mid Cap Fund Invesco India Contra Fund Invesco India Infrastructure Fund

ADDENDUM Invesco India Dynamic Equity Fund I nv esco India Mid Cap Fund Invesco India Contra Fund Invesco India Infrastructure Fund Invesco Management (India) Pvt. Ltd. (Formerly known as Religare Invesco Management Company Pvt. Ltd.) (CIN No: U67190MH2005PTC153471), 2101-A, 21 st Floor, A Wing, Marathon Futurex, N. M. Joshi Marg,

More information

Interest Rates & Credit Derivatives

Interest Rates & Credit Derivatives Interest Rates & Credit Derivatives Ashish Ghiya Derivium Tradition (India) 25/06/14 1 Agenda Introduction to Interest Rate & Credit Derivatives Practical Uses of Derivatives Derivatives Going Wrong Practical

More information

Kotak Mahindra Mutual Fund

Kotak Mahindra Mutual Fund Kotak Mahindra Mutual Fund 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai - 400 021 KEY INFORMATION MEMORANDUM & APPLICATION FORMS CONTINUOUS OFFER: Unit of all s available at prices related to Applicable

More information

DESIGNING AN UNBIASED REFERENCE RATE 1

DESIGNING AN UNBIASED REFERENCE RATE 1 DESIGNING AN UNBIASED REFERENCE RATE 1 Golaka C Nath 2 Introduction: using polling. Companies like Thomson Reuters are globally discontinuing benchmark calculation Reference Rates are benchmarks for the

More information

BASEL II - DISCLOSURES

BASEL II - DISCLOSURES Disclosure 1 Scope of Application BANK OF AMERICA N.A. (INDIA BRANCHES) BASEL II - DISCLOSURES The Basel II disclosures contained herein relate to Bank of America, N.A. India Branches herein referred to

More information

Answer to PTP_Intermediate_Syllabus 2012_Jun2014_Set 3

Answer to PTP_Intermediate_Syllabus 2012_Jun2014_Set 3 Paper-14: ADVANCED FINANCIAL MANAGEMENT Time Allowed: 3 Hours Full Marks: 100 The figures in the margin on the right side indicate full marks. Answer Question No. 1 which is compulsory. From Section A:

More information

UBS AG, Mumbai Branch (Scheduled Commercial Bank) (Incorporated in Switzerland with limited liability)

UBS AG, Mumbai Branch (Scheduled Commercial Bank) (Incorporated in Switzerland with limited liability) Basel II Pillar 3 Disclosures for the period ended 31 March 2010 Contents 1. Background 2. Scope of Application 3. Capital Structure 4. Capital Adequacy- Capital requirement for credit, market and operational

More information

Need for Treasury Market. No return from holding excess reserves for a bank. Treasury investments yield returns for the holding period.

Need for Treasury Market. No return from holding excess reserves for a bank. Treasury investments yield returns for the holding period. Treasury Markets Need for Treasury Market No return from holding excess reserves for a bank. Treasury investments yield returns for the holding period. Treasury investments provide maximum safety as they

More information

NOTICE-CUM-ADDENDUM No. 04 of LIC MF BALANCED FUND (contd.)

NOTICE-CUM-ADDENDUM No. 04 of LIC MF BALANCED FUND (contd.) 7) LIC MF Growth Fund 8) LIC MF Government Securities Fund 9) LIC MF Index Fund - Nifty Plan 10) LIC MF Index Fund - Sensex Plan 11) LIC MF Infrastructure Fund 12) LIC MF Liquid Fund NOTICE IS HEREBY GIVEN

More information

Guidelines for Asset Liability Management (ALM) System in Financial Institutions (FIs)

Guidelines for Asset Liability Management (ALM) System in Financial Institutions (FIs) Guidelines for Asset Liability Management (ALM) System in Financial Institutions (FIs) In the normal course, FIs are exposed to credit and market risks in view of the asset-liability transformation. With

More information

Solved questions on Indian capital market

Solved questions on Indian capital market Solved questions on Indian capital market 1. In private placement, issuance is done to. (2 marks) (a) more than 50 persons (b) less than 100 persons (c) less than 50 persons (d) less than 10 persons 2.

More information

RE 9: Second Level Regulatory Examination: Securities And Instruments

RE 9: Second Level Regulatory Examination: Securities And Instruments COMPLIANCE MONITORING SYSTEMS CC RE 9: Second Level Regulatory Examination: Securities And Instruments Alan Holton December 2009 All representatives performing financial services in relation to category

More information

INTERNATIONAL DIVISION

INTERNATIONAL DIVISION I. EXPORTS 1. (A) Bills Purchased / Discounted / Negotiated (a) Processing Charges for Foreign Currency Export Bills (b) Processing Charges for each Rupee Export Bills (c) Forwarding Export Document on

More information

2011 Annual Basel II Pillar 3 Information Disclosure Bank of China Limited, Bangkok Branch as of Dec 31, 2011

2011 Annual Basel II Pillar 3 Information Disclosure Bank of China Limited, Bangkok Branch as of Dec 31, 2011 2011 Annual Basel II Pillar 3 Information Disclosure Bank of China Limited, Bangkok Branch as of Dec 31, 2011 Bank of China Limited, Bangkok Branch (hereinafter the BOCBKK) hereby discloses 2011 annual

More information

PPFAS Mutual Fund. Valuation Policy. Investment Valuation for Securities and Other assets

PPFAS Mutual Fund. Valuation Policy. Investment Valuation for Securities and Other assets PPFAS Mutual Fund. Investment Valuation for Securities and Other assets SEBI vide Gazette Notification no. LAD-NRO/GN/2011-12/38/4290, dated February 21, 2012 amended Regulation 25, 47 and the Eighth Schedule

More information

CHAPTER 10 Financial Market

CHAPTER 10 Financial Market CHAPTER 10 Financial Market A financial market refers to a market where the creation and exchange of financial assets (such as shares and debentures) takes place. Allocative Function of Financial Market

More information

GUIDELINES / CLARIFICATIONS FOR VALUATION OF INVESTMENTS

GUIDELINES / CLARIFICATIONS FOR VALUATION OF INVESTMENTS 1 ANNEXURE GUIDELINES / CLARIFICATIONS FOR VALUATION OF INVESTMENTS The market participants should ensure that the valuation of their investment portfolio is in accordance with the directions / guidelines

More information

Wealth Sets You Free. Particulars of Modification Name of scheme Investment Objective

Wealth Sets You Free. Particulars of Modification Name of scheme Investment Objective CIN : L65910MH1995PLC220793 Registered Office: Reliance Centre, 7th Floor South Wing, Off Western Express Highway, Santacruz (East), Mumbai - 400 055 April 09, 2018 Dear Investor, Re.: Change in the fundamental

More information

Financial Markets I The Stock, Bond, and Money Markets Every economy must solve the basic problems of production and distribution of goods and

Financial Markets I The Stock, Bond, and Money Markets Every economy must solve the basic problems of production and distribution of goods and Financial Markets I The Stock, Bond, and Money Markets Every economy must solve the basic problems of production and distribution of goods and services. Financial markets perform an important function

More information

Operational Guidelines for Reckoning the Market Value of Collateral in Repo/Reverse Repo transactions with RBI

Operational Guidelines for Reckoning the Market Value of Collateral in Repo/Reverse Repo transactions with RBI 1 Annex I Operational Guidelines for Reckoning the Market Value of Collateral in Repo/Reverse Repo transactions with RBI 1. The guidelines mentioned hereunder will be applicable to all types of Repo/Reverse

More information

2012 Annual Basel II Pillar 3 Information Disclosure Bank of China Limited, Bangkok Branch as of Dec 31, 2012

2012 Annual Basel II Pillar 3 Information Disclosure Bank of China Limited, Bangkok Branch as of Dec 31, 2012 2012 Annual Basel II Pillar 3 Information Disclosure Bank of China Limited, Bangkok Branch as of Dec 31, 2012 Bank of China Limited, Bangkok Branch (hereinafter referred to as BOCBKK ) hereby discloses

More information

Axis Corporate Debt Fund. (An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds)

Axis Corporate Debt Fund. (An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds) Axis Corporate Debt Fund (An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds) Macro economic indicators are showing signs of stability Indicator Current* Outlook Inflation

More information

Module 4. Investments

Module 4. Investments Module 4 Investments Types of investors Arbitrageurs Hedgers Investors Speculators Financial Markets Equities Equities in companies traded on a stock exchange Private shares traded OTC Debt Capital

More information

IBPS PROBATIONARY OFFICERS BANKING KNOWLEDGE

IBPS PROBATIONARY OFFICERS BANKING KNOWLEDGE IBPS PROBATIONARY OFFICERS BANKING KNOWLEDGE RBI Rates as on 30 th September 2014 RBI's fourth bi-monthly monetary policy statement of 2014-15. Bank Rate: 9% CRR (Cash Reserve Ratio): 4% Repo Rate: 8%

More information

RESERVE BANK OF INDIA Foreign Exchange Department Central Office Mumbai RBI/ /613 June 20, 2012

RESERVE BANK OF INDIA Foreign Exchange Department Central Office Mumbai RBI/ /613 June 20, 2012 RESERVE BANK OF INDIA Foreign Exchange Department Central Office Mumbai - 400 001 RBI/2011-12/613 June 20, 2012 A.P. (DIR Series) Circular No.133 To All Category - I Authorised Dealer Banks Madam / Sir,

More information

EDELWEISS ASSET MANAGEMENT LIMITED. Valuation Policy & Procedures

EDELWEISS ASSET MANAGEMENT LIMITED. Valuation Policy & Procedures EDELWEISS ASSET MANAGEMENT LIMITED Valuation Policy & Procedures A. Background The Securities and Exchange Board of India ( SEBI ) has vide its circular No. Cir/IMD/DF/6/2012 dated February 28, 2012 issued

More information

RS Official Gazette, No.129/2007 and 63/2008

RS Official Gazette, No.129/2007 and 63/2008 RS Official Gazette, No.129/2007 and 63/2008 Pursuant to Article 21, paragraph 1 of the Law on the National Bank of Serbia ( RS Official Gazette, No. 72/2003 and 55/2004) and Article 21, paragraph 3, Article

More information

Valuation Policy & Procedure

Valuation Policy & Procedure CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED Valuation Policy & Procedure Page 1 of 10 A. Background CANARA ROBECO MUTUAL FUND Valuation Policy & Procedure SEBI has amended Regulation 47 and the Eighth

More information

CPW2A THEORY OF MONEY AND BANKING. Unit : I

CPW2A THEORY OF MONEY AND BANKING. Unit : I THEORY OF MONEY AND BANKING Unit : I Unit: I Introduction to money Kinds functions and significance Demand for and supply of Money Monetary standards Gold standard Bimetallism and paper currency systems

More information

18th Year of Publication. A monthly publication from South Indian Bank.

18th Year of Publication. A monthly publication from South Indian Bank. To kindle interest in economic affairs... To empower the student community... Open YAccess www.sib.co.in ho2099@sib.co.in A monthly publication from South Indian Bank 18th Year of Publication SIB STUDENTS

More information

Global Banking Service. Report on India

Global Banking Service. Report on India Arctic Circle This report provides helpful information on the current business environment in India. It is designed to assist companies in doing business and establishing effective banking arrangements.

More information

Investment Valuation Policy & Procedure

Investment Valuation Policy & Procedure Investment Valuation Policy & Procedure Index Sr. No. Particulars Page No. 1. Introduction...1 2. Objectives...1 3. Valuation methodologies...1 4. Exceptional circumstances...1 5. Deviation from the policy,

More information

CHAPTER 5 DETERMINANTS OF FORWARD PREMIA INTERPRETATION OF. Only those who see the invisible can do the impossible Anonymous

CHAPTER 5 DETERMINANTS OF FORWARD PREMIA INTERPRETATION OF. Only those who see the invisible can do the impossible Anonymous 119 CHAPTER 5 DETERMINANTS OF FORWARD PREMIA INTERPRETATION OF QUESTIONNAIRE RESPONSES Only those who see the invisible can do the impossible Anonymous 5.1 INTRODUTION Forward premia are determined by

More information

Roles & Functions of Reserve Bank of India GK Notes for Bank & SSC in PDF

Roles & Functions of Reserve Bank of India GK Notes for Bank & SSC in PDF Roles & Functions of Reserve Bank of India GK Notes for Bank & SSC in PDF During your preparation for various Government Recruitment Exams, it is important that you study & get well-versed with Current

More information

Overview of Risk Management. Laxmikant Gupta Sr.V.P. Risk Management & Compliance

Overview of Risk Management. Laxmikant Gupta Sr.V.P. Risk Management & Compliance Overview of Risk Management Laxmikant Gupta Sr.V.P. Risk Management & Compliance 1 5 Basic Risks : Credit Risk the most centralised risk mgt Market Risk / Portfolio Risk Settlement Risk / Counterparty

More information

REVISED FOREX SERVICE CHARGES. Schedule I Export Transactions

REVISED FOREX SERVICE CHARGES. Schedule I Export Transactions REVISED FOREX SERVICE CHARGES Annexure I Sr 01 02 Schedule I Export Transactions Particular Export Bills on collection/ s Purchase/ Discount/Negotiation Processing charges for granting Postshipment Advance

More information

1. Scope of Application

1. Scope of Application 1. Scope of Application The Basel Pillar III disclosures contained herein relate to American Express Banking Corp. India Branch, herein after referred to as the Bank for the period July 1, 2014 September

More information

Online. Professional. Futures and Derivatives Product Disclosure Statement. JUNE 2012

Online. Professional. Futures and Derivatives Product Disclosure Statement. JUNE 2012 Online Professional Futures and Derivatives Product Disclosure Statement JUNE 2012 http://www.bby.com.au This product disclosure covers futures contracts and derivatives, both exchange traded and over-the-counter

More information

Wealth Sets You Free. Particulars of Modification Type of the Scheme

Wealth Sets You Free. Particulars of Modification Type of the Scheme CIN : L65910MH1995PLC220793 Registered Office: Reliance Centre, 7th Floor South Wing, Off Western Express Highway, Santacruz (East), Mumbai - 400 055 April 09, 2018 Dear Investor, Re.: Change in the fundamental

More information