When an investor buys or sells a security, the order may get placed instantly. But the transaction is not fully complete at that moment. The actual exchange of money and securities happens later. That final completion day is called the Settlement Date. Key Takeaways The Settlement Date is the day when a trade is completed. […]

Introduction Corporate bonds play a vital role, offering investors a secure and stable way to earn returns. But, behind the scenes of every bond trade lies a critical process that ensures the smooth transfer of securities from one party to another—the settlement process. In India, this process has evolved over time, guided by regulations that […]

Introduction Buying or selling a bond does not end when the trade is confirmed. The money must reach the seller and the securities must reach the buyer’s demat account. Settlement Risk refers to the possibility that this exchange does not happen as expected. In India, clearing corporations and regulated settlement systems help reduce this risk. […]

Prices shown in financial markets do not always refer to the same point in time. One may apply to a transaction happening now, while another may relate to a future date. The Spot Price is the current cash-market value of an asset. It helps investors understand what a share, commodity, currency or bond is worth […]

Introduction It is the new year, you decide to get fit and lose the holiday weight you gained. On January 1st, you start going to the gym with determination. You begin with a 5kg biceps curl and feel a bit sore afterward. The next week, you continue to stick to your resolution and return to […]

The first time someone comes across a term sheet, it may look like one more finance document filled with formal words. But once it is read slowly, the idea is quite simple. A term sheet is a short note that captures the main points of a deal. It tells the reader what is being offered, […]

Introduction A Bond Public Issue, also known as Bond IPO, is a process through which a company raises funds by issuing bonds to the public. In a Bond IPO, the issuer sets the terms of the bond, including the interest rate and maturity date, and sells the bonds to institutional and individual investors through a […]

Introduction Here’s a fun fact: In 1970, a cup of coffee in India cost about 50 paise. Today, the same cup would cost you anywhere between ₹20 to ₹50, depending on where you buy it. That’s over a 4000% increase in price! Now, I know there’s nothing fun about this fact, but what’s undeniable is […]

Introduction The Great Indian Financial Market is colossal and serves as the backbone of the nation’s growth and development. While many are familiar with capital markets, which are one of its segments, there is another well-functioning arm of the financial market that operates in the background: the money market. Though not widely recognized by retail, […]