Glossary Terms

03

Dec'17

Hard or international reserve currency

Hard currency is a currency used as medium of exchange in international transactions. Theoretically, hard currency is the currency whose …

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03

Dec'17

Foreign Currency Assets

Foreign Currency Assets (FCA) that is the most important component of the RBI’s foreign exchange reserve are the assets like …

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03

Dec'17

American Depository Receipts (ADR)

An American depositary receipt (ADR) is a negotiable security that represents the underlying securities of a non-U.S. company that trades …

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03

Dec'17

Depository Receipts

Depository receipts represent a company listing its securities (shares, bonds etc) in a foreign stock exchange and mobilizing funds from …

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03

Dec'17

Rupee denominated bonds (RDBs)

A rupee denominated bond is a bond issued by an Indian/recognized entity in foreign markets and the interest payments and …

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03

Dec'17

Foreign Currency Convertible Bond (FCCB)

Foreign Currency Convertible Bond (FCCB)is a foreign currency denominated convertible bond issued by an Indian company abroad, which the holder …

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03

Dec'17

External Commercial Borrowings (ECBs)

External Commercial Borrowings are borrowings by Indian entities especially the corporate from overseas markets (foreign financial institutions like banks). ECB …

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03

Dec'17

Foreign Direct Investment (FDI)

FDI is investment by foreign entities like MNCs to carryout business operations in India with management of investment, production of …

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03

Dec'17

Qualified Foreign Investor

QFI is an individual, group or association which is a resident in a foreign country, making portfolio investment in India. …

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03

Dec'17

Foreign Institutional Investor

FII is an institution like a mutual fund, insurance company, pension fund etc. According to SEBI, “an FII is an …

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