Non-performing assets are bad loans. Any asset, including a leased asset, becomes non performing when it ceases to generate income for the bank. As per the guidelines issued by the Reserve Bank of India (RBI), banks classify an account as NPA only if the interest due and charged during any quarter is not serviced fully within 90 days from the end of the quarter.
The ordinary man confuses the finance minister's budget speech for the annual budget. Bit as laid down in the constitution, the budget actually refers to the annual statement tabled in Parliament along with the 13-15 other documents. Divided into three parts -- Consolidated Fund, Contingency Fund and Public Account -- it has a statemant of receipts and expenditure each.
What are the participatory (commonly known as P-notes) are instruments used by foreign funds and investors who are not registered with the Securities and Exchange Board of India (SEBI) but are interested in taking exposure in Indian securities. Participatory notes are generally issued overseas by the associates of India- based foreign brokerages and domestic institutional brokerages. They are, in fact, offshore derivative instruments issued by foreign institutional investors and their sub-accounts against underlying Indian securues. Participatory notes are issued where the underlying assets are securities listed on the Indian bourses. Foreign institutional investors who do not wish to register with the SEBI but would like to take exposure in Indian securities also use participatory notes. Brokers buy or sell securities on behalf of their clients on their proprietary account and issue such notesd in favour of such foreign investors.
A maiden public issue of shares by a company is termed as an Initial Public Offering (IPO). It is often trated as a milestone in a company's lifecycle and usually marks the transition from a small closely-held company to a listed entity. Most IPOs are also done by smaller, younger companies which need capital to expand their business. However, often they are done by large privately-owned companies looking to become publicly-traded. The new investors who come in the company by way of owning shares, through the IPO become members of the family of existing shareholders.
Foreign Institution Investor (FII) means "an institution established or incorporated outside India which proposes to make investment in India in securities, real pro[erty amd other investment assets". In India Foreign Institutional Investor (FII) refers to outside companies invwsting in the Indian Financial Markets.
CIBIL is the country's credit information bureau owned by banks and lending institutions. It collects commercial and consumer credit-related data and collates such data to create and distribute credit Reports to members. Accessing to such data is crucial for lenders to assess the credit worthiness of a borrower.