A loan is the most common method of obtaining the necessary funds. There are numerous ways to borrow money, but the two most common are bonds and debentures. These financial debt instruments have different functions and are issued to attract investment or money from you, i.e., the general public. All debentures are bonds, but not […]

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 […]

Picture this: you’re at a busy marketplace. But instead of food or clothes, you see companies offering a way for you to help them grow, simply by lending them your money. In return, they promise to pay you back—plus a little extra for your trouble. That’s the simple idea behind corporate bonds. Corporate bonds are […]

Introduction When it comes to India’s financial mechanisms, one instrument takes center stage for its crucial role in managing short-term cash dynamics—the Cash Management Bill (CMB). Exclusively issued by the central government, the CMB plays a pivotal role in addressing temporary cash flow imbalances. This exploration delves into the subtleties of cash management bills, unveiling […]

Glossary 1. Accrued Interest Accrued interest is the interest that accumulates on a bond between coupon payments. For example, if you buy a bond between its payment dates, you may owe the seller accrued interest for the time they held the bond. 2. Accretion of Bonds Accretion of bonds means that over time, the value […]

Introduction It’s remarkable how online shopping has seamlessly integrated into our lives. A decade ago, many were hesitant about making online purchases. Now, we buy everything from clothes to groceries, medicines, jewelry and even Gangajal online (yes, look it up). The advancement of technology and increased earning power, accelerated by the pandemic, has expedited this […]

Update: Form 15G & 15H are replaced by a unified Form 121 from 1 April 2026. 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 […]

A company may know that it will need a loan three months from now. What it may not know is the interest rate available on that date. A Forward rate agreement helps manage this uncertainty. It allows two parties to decide an interest rate today for a borrowing or lending period that begins later. Key […]

Bond SIP Meaning: What Exactly is a SIP in Bonds? A SIP in bonds is not a SIP in a debt mutual fund. When you invest through a debt fund, you own units of a pooled scheme and the fund owns the bonds. In a Bond SIP, you own the bonds themselves. Each one sits […]