RTGS System

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RTGS stands for Real Time Gross Settlement. For an authoritative FAQ check HERE a RBI FAQ.
For Wikipedia article, which contains a wider perspective Check HERE.
The Wikipedia Article contains points which makes it an important topic for preparation. Check here Economic Times article of this year.

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Indian Depository Receipt

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Indian Corporate World and Capital Market have witnessed historic events this year. Two of the major events which definitely demands attention from the aspirants of Civil Services for General Studies Main Examination are the first listing of an IDR of a foreign bank-Standard Charter Bank in India. Second is the entry of Bharti Airtel in Africa. No doubt, the Indian corporate world had been buying foreign companies and name of TATA Sons companies had hogged the lime light in the recent years. However, Bharti Airtel entry into 18 African countries is an historic event in itself. In addition to that a new financial product in form of ETF is another important issue.

Any how, IDR or Indian Depository Receipt is a topic which must be included into the probable questions.

A relevant link is on Wikipedia and for that click HERE.

In addition to that, it is useful to make notes on ADR (Click HERE for American Depository Receipt) and GDR (Global Depository Receipt Click Here).

For ETF download a highly simplified PDF for NSE website. For detailed explanation from the NSE site Click HERE. A general description in pdf format can also be downloaded for which Click HERE.

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Maharatna Status to Steel Authority of India (SAIL)

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The following report has a brief description of the Maharatna Status, a fresh status to SAIL. There are 19 Navaratna PSUs.

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Make a note of the following link and its contents:
Moneycontrol.com - Govt gives 'maharatna' status to PSU giants

Who is an Anchor Investor?

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Anchor Investor: SEBI introduced the anchor investor concept in June 2009. In this the investor gets firm allotment of shares, as opposed to the proportionate allotment that other QIB constituents would. The minimum amount the anchor investor can apply for is INR 10 crore.

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A related news item at
First Time Anchor Investors

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For a Detailed View: Use the followings:
Anchor Investor: Business Line (Highly Recommended)
Economic Times: First Report
Economic News: A Substantiating Point

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Different Dimensions of US-India Civil Nuclear Cooperation

Bloomberg.com: India & Pakistan

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From the above report, following extract has been derived.

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President Bush has signed the US-India Civil Nuclear Cooperation Agreement on October 8, 2008.

The general electric co. now can sell nuclear fuel and technology to India which has tremendous demand for energy.

The law passed is US-India Civil Nuclear Cooperation Agreement. The Senate passed the legislation allowing the India nuclear accord on Oct. 1 by a vote of 86-13. The House approved the measure by a vote of 298-117 on Sept. 27.


India needs energy in great amount in order to sustain its 8% economic growth annually. For that, it is estimated that there is scope of 175 billion dollar business with India.

However, even when the legislation has been passed and now becomes an act, there is still opposition against the cooperation with India.

The agreement signed by President Bush is governed by U.S. Atomic Energy Act.

The opponents to the agreement in US feel that India will abuse the cooperation extended by US to India in order to develop her energy producing nuclear facilities. The main susceptible group is Arms Control Association and Centre of Arms Control and Non-Proliferation.

Before the agreement, India was benefited when India got waiver from the NSG and allowed to buy nuclear fuel and technology. India has yet to sign the Non-Proliferation Treaty.

The agreement will also be beneficial to the U.S. It will create nearly 2.5 lakh jobs in U. S.

The U. S. companies which may trade with India in field of nuclear technologies and goods are General Electric co, Areva SA, Westinghouse Electric co and Rosatom Corp.

The India first reactor was build with the technology of General Electric Co. in 1961.

However, the opponent of the agreement feel that India would again indulge in nuclear arms prolification. They emphasis that as per the US Atomic Energy Act, in such an eventuality, if India again indulge in nuclear arm prolification, then she will invite ban again. This has been imposed in 1974 and it is nearly after 34, that it has been raised now.

State Bank of Saurashtra merges with SBI

Moneycontrol >> News >> Business >> State Bank of Saurashtra merges with SBI

State Bank of Saurashtra merges with SBI. There are news since long that all the subsidiaries will merge with SBI. However, it is the first merger of that sort and now there remains six subsidiaries of the SBI.

However, State Bank of Saurashtra had a history. An extract from the moneycontrol.com has been reproduced below which has affinity with the nature of this blog.

"State Bank of Saurashtra traces its history to the princely Bhavnagar Darbar Bank, which was established in 1902. When the princely states were integrated to form Saurashtra in 1948, the four Darbar Banks - Rajkot State Bank, Porbandar State Bank, Palitana Darbar Bank and Vadia State Bank - were merged, and on July 1, 1950, when State Bank of Saurashtra was born.

In 1960, SBS became a subsidiary of SBI at the suggestion of the All-India Rural Credit Survey Committee."

Lehman Brothers Holding Inc. Crisis

Lehman Brothers an Introduction:

Lehman Brothers Holdings Inc. (Lehman Brothers) serves the financial needs of corporations, governments and municipalities, institutional clients and high-net-worth individuals worldwide. The Company provides an array of services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. The Company operates three business segments: Capital Markets, Investment Banking and Investment Management. Lehman Brothers generates client-flow revenues from institutional, corporate, government and high-net-worth clients by advising on and structuring transactions; serving as a market maker and/or intermediary in the global marketplace, including having securities and other financial instrument products; originating loans for distribution to clients in the securitization or principals market; providing investment management and advisory services, and acting as an underwriter to clients.

The Crisis:
Throughout the year 2008, the Lehman Brothers has reported losses. It has suffered from subprime lending rates. Gradually, its shares have started falling at world capital market. It has given rise to rumours that the management is trying to find buyers to help them come out this crisis. It is one of the major financial institution of America. If some things go wrong with it, it will push the capital market into crises and its repercussions will also appear in Indian Capital Market.

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Sources:
Google Finance

Wikipedia

Subprime Mortgage: Wikipedia

Pink Slips on Increase in IT Industry

Satyam fires 400 employees- Software & Services-News-Indiatimes - Infotech

The four IT majors of Indian Job and Capital Market, Infosys, TCS, Wipro and Satyam, (in that order), are relieving their employees for one reason or the other. Some of the reasons are: Rise of Dollar in relation to European currencies, possibility of reduced contract from America the major client in IT industry are the two main one.

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The Blogger strongly believes that Capital Market and IT Industry have started place in GS Prelims. The aspirants must develop liking for keeping tap on Indian Industry as a separate heading. The Economy Heading will continue separately. There is a need to collect notes under new heading.