GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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public, private
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private, public
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cooperative, NBFC
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none of the above
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Detailed explanation-1: -The RBI issues bonds on behalf of the government of India to finance the fiscal deficit. Over the past few years, the bonds were issued to large market participants like companies, commercial banks and financial institutions.
Detailed explanation-2: -A stock market is a place where investors go to trade equity securities (e.g., shares) issued by corporations. The bond market is where investors go to buy and sell debt securities issued by corporations or governments.
Detailed explanation-3: -Approach to the operation. First, the company talks to the bank and explains its need for financing. Rating analysis and documentation preparation. -Presentations to investors, the ‘roadshow’ -The bond is placed on the market. -Allocation process and bond pricing.