Introduction The ever-changing financial landscape necessitates the continuous updating of financial regulations. Therefore, the Union Budget 2023 has introduced a notable modification that impacts investors involved in listed debt securities. From April onwards, Tax Deduction at Source (TDS) will be applicable to interest income earned from listed bonds. This move is aimed at increasing transparency, […]

Retirement planning is an often overlooked aspect of wealth management, with a significant number of Indians failing to adequately prepare for their post-work years. The India Retirement Index Study (IRIS), conducted by Kantar on behalf of Max Life Insurance Company, reveals that 37% of individuals have not made any investments for their retirement thus far. […]

Mr. Grover recently purchased a bond from a company. The bond promises to pay him a fixed amount of interest every six months, with payments due on the 30th of June and the 31st of December. He enjoys these regular payments and he’s also aware that he can sell the bond to another investor at […]

The international bond market presents a compelling opportunity for various entities seeking to raise funds for specific foreign projects. Firstly, the international bond market provides access to a potentially vast and diverse investor base, expanding the pool of potential funding sources. This broader reach can enhance the likelihood of securing financing for projects that may […]

In the realm of structured finance, credit enhancement is a term used to describe a set of techniques employed by financial institutions to reduce the credit risk associated with a particular transaction or asset. There are two types of credit enhancement: internal and external. External credit enhancement, particularly the credit enhancement guarantee, has gained popularity, […]

In one of the previous articles, we learned about how the government issues g-secs to fulfill its fiscal requirements. Similarly, state governments issue bonds, commonly known as State Development Loans (SDLs), to meet their budgetary needs. State development loans are debt instruments issued by state governments in India to fund its developmental activities. In the […]

In this world nothing can be said to be certain, except death and taxes. –Benjamin Franklin This quote reflects the inevitability of these two things in life. Death is inevitable for all living beings and taxes are a necessary part of modern society. Taxes are a way for the government to collect revenue, which is […]

Investors are perplexed by the most recent amendments in the bond market. Following the elimination of the indexation benefits for bond funds, individuals may find themselves uncertain about where to invest their money, specifically in bonds or bond funds. However, do not fret, as this article will provide valuable insights into the age-old debate of […]

The fixed deposit represented the quintessential example of the Indian investor’s behavior. It meets all the requirements that an average Indian seeks – safety, predictable returns and the assurance of receiving their money back on time. However, in the early 1990s, deep discount bonds emerged as a challenge to the established order. Investors were attracted […]