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Aug 1st-Inflation, Money & Banking System - Coggle Diagram
Aug 1st-Inflation, Money & Banking System
Qualified Institutional Placement (QIP)
listed companies
to raise capital
without submit paperwork
to market regulator
QIP means
listed companies
can issue equity shares
fully and partly
convertible debentures
or any securities
other than warrants
which are convertible
to equity shares
to Qualified Institutional Buyers (QIB)
SEBI
QIP
prevent listed companies in India
from dependence on foreign capital
via Foreign Currency Convertible Bonds (FCCB)
and Global Depository Receipts (GDR)
to fulfil their needs
IPOs and Rights Issue
Invitation to existing shareholders
not obligated to exercise rights
purchase additional new shares
allocation additional shares
at specific price
within a specific period
Contingent Risk Buffer (CRB)
component of RBI´s economic capital
required to cover
monetary and financial stability
credit and operational risks
Bimal Jalan Committee
review
the economic capital framework (ECF) for RBI
MoF
wanted central bank
to follow global best practices
transfer more surplus to govt
ECF
provides methodology
for determining
the appropriate level of risk provisions
and profit distribution made
under Sec 47 of RBI Act, 1934
Recommended
target should include
total economic capital and
should maintained btw
20.8% to 25.4% of balance sheet
realized equity
form of CRB, must be maintained btw
5.5% to 6.5% of RBI´s balance sheet