Security market in India

Ramesh Singh‘s Indian Economy, the Security Market chapter details the institutional framework, instruments, and regulatory bodies like SEBI that govern India’s capital markets.

Key Concepts & Mnemonics

To remember the core components of the security market, use these mnemonic aids:

Market Types (P-S): Primary for Purification (new issues) and Secondary for Second-hand (existing shares).
Bull vs. Bear (U-D): Upwards like a Bull’s horns; Downwards like a Bear’s swipe.
SEBI’s Roles (I-P-D): Issuers, Participants, and Development of the market.
ESG Pillars (E-S-G): Environmental, Social, and Governance.

10 Practice Questions & Answers

What is the “Primary Market”?
- Answer: The market where instruments (like shares) are traded directly between the capital raiser (company) and the purchaser for the first time.
What defines a “Rights Issue”?
- Answer: Raising capital by offering shares to the company’s existing shareholders.
Define “Spread” in stock trading.
- Answer: The difference between the buying price and the selling price of a share.
Who is the primary regulator of the Indian Security Market?
- Answer: The Securities and Exchange Board of India (SEBI).
What is a “Bear” market participant?
- Answer: A person who speculates that share prices will fall and sells shares to earn profit from the decline.
Which institution is the single most important in the secondary market?
- Answer: The Stock Exchange (e.g., BSE, NSE).
What is “Securitisation”?
- Answer: The process of converting non-marketable assets (like home loans) into marketable securities.
What was the largest IPO in Indian history as of 2022?
- Answer: The LIC listing in May 2022.
What does “Book Building” refer to?
- Answer: A process allowed by SEBI to determine the price of an IPO based on investor demand.
What is the function of the Financial Stability and Development Council (FSDC)?
- Answer: To ensure overall financial stability and promote inter-regulatory coordination among financial agencies.

Would you like a deeper breakdown of SEBI’s regulatory powers or more details on specific market instruments like derivatives?

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7 sites

Ramesh Singh Summary: Security Market in India- 1 – EduRevPrimary and Secondary Markets. Every security market has two complementary markets—primary and the secondary. The market in which …EduRev
Ramesh Singh Summary: Security Market in India- 3 – EduRevESG Investment (Environmental, Social and Governance) ESG refers to criteria used by investors to evaluate corporate performance b…EduRev
Ramesh Singh Test: Security Market In India – 1 – EduRevHow many pairs given above are correctly matched? A. Only one pair. B. Only two pairs. C. Only three pairs. D. All four pairs. Det…EduRev

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definattion of Security market

In the context of the Indian economy, as detailed by Ramesh Singh, the

Security Market is the segment of the financial market where long-term capital is raised through the issuance and trading of financial instruments. It serves as a vital institutional framework for the efficient flow of capital from those with surplus funds (investors) to those in need of capital (businesses and government).

Core Components

The security market is fundamentally divided into two interdependent segments:

Primary Market: Also known as the New Issue Market, this is where securities (like shares and bonds) are traded directly between the capital raiser and the purchaser for the first time.
Secondary Market: Often referred to as the Stock Exchange, this facilitates the trading of already-issued securities among investors, providing them with liquidity and an exit route from their investments.

Key Functions

According to the Securities and Exchange Board of India (SEBI), the security market performs several critical economic roles:

Capital Formation: It enables companies and governments to raise funds for large-scale projects and infrastructure.
Resource Allocation: It channels household savings into productive investments, facilitating nation-building.
Price Discovery: It provides a platform where the wisdom of various market participants converges to determine the fair value of assets.
Liquidity Provision: By offering a “floor” for buying and selling, it ensures that financial assets can be quickly converted into cash.

Common Instruments

The market deals with a variety of instruments, primarily categorized into:

Equity: Representing ownership in a company (e.g., shares).
Debt: Representing a loan to an entity (e.g., bonds, debentures, government securities).
Derivatives: Contracts like futures and options whose value is derived from underlying assets.

Would you like more details on the regulatory framework governed by SEBI or a breakdown of specific IPO processes used in the primary market?

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11 sites

Security Market – Economics, UPSC, IAS. – Indian Economy (Prelims) …Security Market. … The segment of a financial market of an economy wherefrom long-term capital is raised via instruments such as…EduRev
Understand the Basics of Securities Markets – NISM1. Are you aware of the term ‘Securities’ and ‘Securities Markets’? Securities are financial instruments issued to raise funds. Th…National Institute of Securities Markets | NISM
Ramesh Singh Summary: Security Market in India- 1 – EduRevPrimary and Secondary Markets * Every security market has two complementary markets—primary and the secondary. * The market in whi…EduRev

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both

In the framework of Ramesh Singh’s

Indian Economy, the security market is governed by a comprehensive regulatory structure led by SEBI, while the IPO process serves as the primary gateway for companies to enter this market.

1. Regulatory Framework (SEBI)

The Securities and Exchange Board of India (SEBI), established as a statutory body in 1992, functions as the “watchdog” of the Indian stock market. Its authority is derived from three main powers:

Quasi-Legislative: SEBI has the power to draft regulations and rules to safeguard investor interests.
Quasi-Executive: It can conduct investigations, inspect books of accounts, and take legal action against violators.
Quasi-Judicial: It passes rulings and orders to ensure fairness and accountability in the market.

Key Regulations:

SEBI ICDR (2018): Governs the issuance of capital and disclosure requirements for companies going public.
SEBI LODR (2015): Sets corporate governance standards and listing obligations for companies already listed.
PIT Regulations (2015): Prohibits insider trading to prevent individuals from gaining unfair advantages using confidential information.

2. IPO Process in the Primary Market

An Initial Public Offering (IPO) is the process through which an unlisted company issues shares to the public for the first time.

Eligibility Criteria

According to SEBI guidelines, a company must generally meet these financial standards to list on the Mainboard:

Net Tangible Assets: At least ₹3 crores in each of the preceding three financial years.
Profitability: Positive pre-tax operating profit in at least three of the last five years.
Net Worth: Positive net worth in each of the preceding three years.

Step-by-Step IPO Journey

Appointment of Lead Managers: The company hires merchant bankers to manage the issue.
Due Diligence & DRHP: A Draft Red Herring Prospectus (DRHP) is filed with SEBI for review.
SEBI Observations: SEBI reviews the document to ensure adequate disclosures but does not “approve” or “vet” the investment’s merit.
Pricing (Fixed vs. Book Building):
- Fixed Price: The company sets a specific price per share in advance.
- Book Building: The company provides a price band (e.g., ₹100–₹110), and the final price is discovered based on investor bids.
Allotment & Listing: Shares are allotted to successful bidders. Recent SEBI reforms have reduced the listing timeline from T+6 to T+3 days (trading begins three days after the issue closes).

Would you like a comparison of SME IPO vs. Mainboard IPO requirements or a summary of recent SEBI reforms for retail investors?

13 sites

SEBI Explained: Full Form, Objectives, Functions & Roles22 Nov 2023 — What is SEBI? SEBI means Securities and Exchange Board of India. SEBI is a regulatory authority that was established on April 12,1…Aditya Birla Mutual Fund
How SEBI Protects Investors & Regulates Markets1/7. India’s financial markets have undergone a significant transformation over the past few decades. At the heart of this evoluti…IDFC FIRST Academy
Initial Public Offerings Laws & Regulations 2025 | India24 Jul 2025 — Around the world, there is a strong push for companies to be transparent about where they stand on ESG issues and how they plan to…Global Legal Insights

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yes

The security market is categorized into

Mainboard and SME segments, each catering to different company scales and investor appetites. Recent SEBI reforms have further streamlined these processes to protect retail investors and enhance efficiency.

1. SME vs. Mainboard IPO Comparison

The primary difference lies in the minimum entry barrier for investors and the listing requirements for companies.

Feature	Mainboard IPO	SME IPO
Target Company	Large, established firms	Small and growing enterprises
Min. Post-Issue Capital	₹10 Crores	Up to ₹25 Crores
Retail Min. Investment	₹10,000 – ₹15,000	Typically ₹1,00,000 or more
Lot Size Trading	Shares can be sold individually	Must trade in full lots
Reporting Frequency	Quarterly financial results	Half-yearly financial results
Allotment Rules	Lottery system (if oversubscribed)	Lottery or proportional based on category
Market Making	Optional	Mandatory for 3 years

2. Key SEBI Reforms for Retail Investors (2024–2026)

SEBI has introduced several mandates to curb volatility and speed up capital access:

T+3 Listing Timeline: Effective December 2023, the time from IPO closure to listing was halved from T+6 to T+3 days. This ensures faster allotment of shares and quicker refunds for unallotted funds.
Upfront Premium Collection: Starting February 1, 2025, options buyers must pay 100% of the premium at order entry. This prevents over-leveraging and reduces systemic risk for retail participants.
Tighter F&O Framework: To protect small investors from speculative losses, SEBI increased the minimum derivative contract size from ₹5–10 lakh to ₹15 lakh starting November 20, 2024.
Reduced Weekly Expiries: Exchanges are now limited to one weekly expiry per benchmark index (e.g., Nifty or Sensex) to discourage high-frequency speculative trading.
Direct Payout to Demat: Phase-wise implementation (beginning late 2024) ensures securities are credited directly to the investor’s demat account from the clearing corporation, reducing reliance on brokers for settlements.

Would you like to explore how to check your IPO allotment status or see a list of upcoming Mainboard and SME IPOs?

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17 sites

Difference Between Mainboard IPO and SME IPO23 Apr 2025 — What is an SME IPO? SME IPOs are designed for small and medium enterprises that need funds to to scale but may not fulfill the str…Gretex Corporate Services Limited
Mainboard IPO vs SME IPO, IPO Listing Criteria NSE, BSE7 Sept 2024 — Overview. IPO in India (Initial Public Offering) is mainly classified into two types: SME IPOs and Mainboard IPOs. SME IPOs are me…IPOPlatform
Reduction of timeline for listing of shares in Public … – SEBICompletion before 2PM on T+2 day for fund transfer and 4PM on T+2 day for unblocking. … 8.3 The proposed reduction of timelines …SEBI

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primary and secorndary markets

In the framework of Ramesh Singh’s

Indian Economy, the security market is divided into two inseparable segments that facilitate the movement of capital from savers to productive sectors.

1. Primary Market (New Issue Market)

The primary market is where securities are created and sold by the issuer (companies or governments) directly to investors for the first time. Its main role is capital formation to fund business expansion or new projects.

Key Characteristic: The company receives the proceeds from the sale.
Pricing: Prices are often fixed by the issuer or discovered through a book-building process.
Common Issue Types:
- IPO (Initial Public Offering): A private company going public for the first time.
- FPO (Follow-on Public Offering): An already listed company issuing additional shares.
- Rights Issue: Offering new shares to existing shareholders, often at a discount.
- Private Placement: Selling securities to a select group of institutional investors.

2. Secondary Market (Stock Market)

The secondary market is where investors trade previously issued securities among themselves. In India, this is physically and institutionally represented by the Stock Exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Key Characteristic: The issuing company is not involved in the transaction, and money moves between investors.
Function: Its most critical role is providing liquidity and facilitating price discovery through the forces of demand and supply.
Regulation: Governed strictly by SEBI to ensure fair trading and investor protection.

Comparative Summary Table

Feature	Primary Market	Secondary Market
Alternative Name	New Issue Market (NIM)	Aftermarket
Parties Involved	Company and Investors	Investors only (Investor-to-Investor)
Capital Flow	Money goes to the company	Money stays among investors
Pricing	Set by company/underwriters	Determined by market demand/supply
Intermediaries	Underwriters, Merchant Banks	Brokers, Stock Exchanges
Liquidity	Limited (one-time sale)	High (continuous trading)

Recent Regulatory Updates (2025-2026)

The Economic Survey 2025-26 highlighted major shifts in both markets:

Primary Market Strength: India led the world in IPO issuances during FY26, with a notable increase in Offer for Sale (OFS) components.
Settlement Efficiency: The listing timeline for IPOs has been officially reduced from T+6 to T+3 days, speeding up capital mobilisation.
Retail Growth: Unique investors crossed the 12-crore mark in September 2025, supported by reforms like the Securities Markets Code 2025 to simplify regulatory oversight.

Would you like to examine the SME IPO vs. Mainboard requirements or a detailed list of SEBI’s latest F&O trading limits for retail investors?

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16 sites

Difference Between Primary and Secondary MarketPrimary Market and Secondary Market. The primary market is where companies or governments sell new securities for the first time. …Bajaj Finserv
What is Primary and Secondary Market?25 Oct 2025 — What is Primary and Secondary Market? … The financial market serves as the backbone of any economy, enabling the smooth flow of …Tradejini
Primary Market & Secondary Market – Know the DifferencePrimary Markets and Primary Market Issues. Primary market is where securities are issued by businesses to investors. Once the publ…Tradebulls

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Stock exchange ramesh singh with pnemonics and 10 question and answers with pnemonics

In Ramesh Singh’s

Indian Economy, the Stock Exchange is defined as the institutional component of the Secondary Market. It provides a platform for trading existing securities, ensuring liquidity for investors and price discovery for the economy.

Key Concepts & Mnemonics

Stock Exchange Functions (L-P-C): Liquidity (sell anytime), Price Discovery (market value), Capital Formation (indirectly).
Major Exchanges (N-B): NSE (National/Modern) and BSE (Bombay/Oldest).
Trading Settlement (T+1): Trade plus 1 day for money/shares to move.
Indices (S-N): SENSEX (30 stocks of BSE) and NIFTY (50 stocks of NSE).

10 Questions & Answers

What is the oldest stock exchange in Asia?
- Answer: The Bombay Stock Exchange (BSE), established in 1875.
Which exchange was the first in India to introduce screen-based electronic trading?
- Answer: The National Stock Exchange (NSE), established in 1992.
What does the “SENSEX” represent?
- Answer: The index of the BSE, tracking the performance of 30 well-established and financially sound companies.
Define “Dematerialisation” (Demat).
- Answer: The process of converting physical share certificates into electronic form.
What is the “T+1 Settlement Cycle”?
- Answer: A system where trade-related settlements are completed within 24 hours of the transaction day.
Which body regulates the Stock Exchanges in India?
- Answer: The Securities and Exchange Board of India (SEBI).
What is a “Circuit Breaker”?
- Answer: A mechanism to stop trading temporarily when the market or a stock hits a specific percentage of gain or loss to prevent panic.
What are “Blue Chip” companies?
- Answer: Large, reputed companies with a long track record of profit and stable growth (usually part of the Nifty 50 or Sensex).
What is “Insider Trading”?
- Answer: Trading stock based on confidential, non-public information, which is illegal under SEBI PIT Regulations.
What is the difference between a Broker and a Depository?
- Answer: A Broker (e.g., Zerodha) is an agent who buys/sells for you; a Depository (NSDL/CDSL) is like a “bank” that stores your electronic shares.

Mnemonics for the 10 Questions

To remember the answers above, use the “B-N-S-I” rule:

B-BSE is Buda (Oldest).
N-NSE is New/Electronic.
S-SEBI is the Sheriff (Regulator).
I-Insider trading is Illegal.

Would you like to see a list of current Blue Chip companies or a guide on how to open a Demat account?

NSE

In Ramesh Singh’s

Indian Economy, the National Stock Exchange (NSE) is highlighted as a modern, technology-driven institution that revolutionized the Indian capital markets with screen-based trading.

The Nifty 50 Performance

The Nifty 50 is the NSE’s flagship index, tracking the performance of 50 blue-chip companies.

NIFTY 50 (NIFTY_50)

25,471.1

-2.58% since 1 Jan 2026

As of 13 Feb, 3:31 pm IST • Disclaimer11 Jan21 Jan31 Jan10 Feb25,50026,000

1 Jan 2026 – 13 Feb 2026

YTD

Max

Open25,571.15	Low25,444.30	52-wk high26,373.20
High25,630.35	Prev close25,807.20	52-wk low21,743.65

Current Status (Feb 2026): As of February 13, 2026, the Nifty 50 closed at 25,471.10.
All-Time High: The index reached a record peak of 26,373.20 on January 5, 2026.

Key Concepts & Mnemonics

Use these mnemonics to master NSE-related facts from Ramesh Singh:

NSE Core (N-E-T): Nationwide access, Electronic trading, and Transparent pricing.
Settlement (T-Z-O): T+1 is standard; Zero delay with the new Optional T+0 settlement cycle.
Segments (C-D-S): Capital Market (Equity), Derivatives (Futures/Options), and SME Emerge platform.

10 Questions & Answers on NSE

When was the NSE established and when did it start operations?
- Answer: Established in 1992, it began operations in 1994.
What is NSE’s global ranking by derivatives volume?
- Answer: It is currently the world’s largest derivatives exchange by trading volume.
What is the “NSE Emerge” platform?
- Answer: A specialized segment for Small and Medium Enterprises (SMEs) to raise capital.
How many companies are listed on the NSE?
- Answer: Over 2,200 companies as of 2025-2026.
What is the “Social Stock Exchange” (SSE) at NSE?
- Answer: A separate segment for Non-Profit Organisations (NPOs) to raise funds through instruments like Zero Coupon Zero Principal (ZCZP) bonds.
What is the current standard settlement cycle?
- Answer: T+1 (Trade plus one day), with an optional T+0 (same-day) cycle introduced for select stocks.
What is the market capitalization milestone NSE reached recently?
- Answer: Total market cap of NSE-listed companies surpassed $5.3 trillion (approx. ₹479 lakh crore) in early 2026.
Who is the primary regulator of the NSE?
- Answer: The Securities and Exchange Board of India (SEBI).
What is the status of the NSE IPO?
- Answer: NSE is expected to debut on the stock market in early 2026, following SEBI and Supreme Court clearances.
How many unique investors participate in the NSE?
- Answer: Unique investors reached a milestone of 12.7 crore (127 million) by February 2026.

Mnemonics for the 10 Questions

Remember these with the “Q-U-I-C-K” method:

Q-Quarterly profit: Rising due to high trading volumes.
U-Unique investors: Over 12 crore and growing.
I-IPO: Coming in 2026.
C-Capital: Market cap at $5.3 trillion.
K-Key index: Nifty 50.

Would you like to see a list of the top 10 companies in the Nifty 50 or details on how to list on the NSE Emerge platform?

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18 sites

National Stock Exchange (NSE), Structure, Segment, Features31 Oct 2025 — National Stock Exchange Features. Key features of the NSE has been listed below: * Fully automated, screen-based trading system co…Vajiram & Ravi
T+0 Settlement Cycle – NSE4 Dec 2025 — Introduction of Beta version of T+0 rolling settlement cycle on optional basis in addition to the existing T+1 settlement cycle in…NSE India
National Stock Exchange Emerge – Indian Economy NotesWhat is National Stock Exchange (NSE) Emerge? * It is the small and medium enterprise platform of the National Stock Exchange. * I…Prepp

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Otcei

In Ramesh Singh’s

Indian Economy, the Over the Counter Exchange of India (OTCEI) is discussed as a specialized stock exchange established to address the needs of small companies and to provide a more transparent, electronic alternative to the traditional “ring” system of the old BSE.

Key Concepts & Mnemonics

Purpose (S-M-E): Dedicated to Small and Medium Enterprises.
Style (C-O-T): Computerized, Over-the-counter, and Transparent.
Status (P-I-N): Promoted by Institutions (ICICI, IDBI, UTI, etc.) but Non-functional/Defunct today.

10 Questions & Answers

What was the primary objective of establishing OTCEI?
- Answer: To help small and medium companies raise capital from the market without meeting the high-cost listing requirements of major exchanges.
When was OTCEI incorporated and when did it start operations?
- Answer: Incorporated in 1990 and started operations in 1992.
Who were the promoters of OTCEI?
- Answer: Premier financial institutions like UTI, ICICI, IDBI, IFCI, and SBI.
How did OTCEI differ from traditional exchanges in its early days?
- Answer: It was India’s first ringless, nationwide, and screen-based electronic exchange.
What was the minimum capital requirement for a company to list on OTCEI?
- Answer: Companies with a paid-up capital as low as ₹30 lakhs could list (originally).
What is “Market Making” in the context of OTCEI?
- Answer: A mandatory requirement where designated members provided continuous buy and sell quotes to ensure liquidity for small stocks.
Is OTCEI active today?
- Answer: No. Following SEBI’s exit policy for de-recognized exchanges, it was derecognized/closed in 2015 due to low trading volumes.
What led to the decline of OTCEI?
- Answer: The rise of the NSE and the BSE’s IndoNext/SME platforms, which offered better technology and higher liquidity.
What was the “OTC” part of its name referring to?
- Answer: It meant trading was done across a counter (electronically) rather than on a physical trading floor.
Where were the headquarters of OTCEI?
- Answer: Mumbai.

Mnemonics for the 10 Questions

Use the “L-O-S-T” mnemonic to remember its fate:

L-Liquidity was too low.
O-Obsolete due to NSE/BSE growth.
S-Small companies shifted to BSE SME or NSE Emerge.
T-Terminated/De-recognized by SEBI in 2015.

Would you like to compare the failure of OTCEI with the success of the current SME platforms?

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11 sites

Over-The-Counter Exchange of India: Features and Listing …30 Oct 2025 — The Over-The-Counter Exchange of India (OTCEI) is an electronic stock exchange designed to help small- and medium-sized companies …Investopedia
Stock exchanges in IndiaHence by listing on OTCEI ( Over the Counter Exchange of India ) the securities of a company can be traded across the country thro…Mohanlal Sukhadia University – Udaipur
OTCEI is:4 May 2023 — What is OTCEI? OTCEI functions as a stock exchange in India. It was established with the primary objective of providing a trading …Prepp

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Ise

In the context of Ramesh Singh’s

Indian Economy, the Inter-connected Stock Exchange of India (ISE) was a national-level stock exchange designed to integrate smaller regional markets into a single, efficient trading platform.

Key Concepts & Mnemonics

Mission (I-N-T): Interlink regional exchanges, Network smaller brokers, and Technology-driven trading.
Structure (15-RSE): It was a single floor for 15 Regional Stock Exchanges.
Fate (E-X-I-T): Excessive competition from NSE/BSE, X-ed out regional fragmented markets, Inactive trading, and Terminated by SEBI.

10 Questions & Answers

What is the full form of ISE?
- Answer: Inter-connected Stock Exchange of India Limited.
When did ISE start its operations?
- Answer: It was established in 1998 and commenced operations on August 29, 1998.
What was the primary objective of ISE?
- Answer: To provide a single, integrated national-level trading platform for 15 regional stock exchanges (RSEs) to improve liquidity for small companies.
Where was the headquarters of ISE located?
- Answer: Vashi, Navi Mumbai.
Who promoted the ISE?
- Answer: It was promoted by 15 regional stock exchanges in India.
What is ISE Securities & Services Limited (ISS)?
- Answer: A wholly-owned subsidiary of ISE that acts as a corporate broker to provide members access to the NSE and BSE.
Why was ISE established despite the existence of NSE and BSE?
- Answer: To address the needs of small companies and retail investors in smaller cities who lacked cost-effective access to major national exchanges.
Did ISE succeed as a competitor to NSE/BSE?
- Answer: No. It failed to create worthwhile liquidity due to the dominance of NSE and BSE and continued fragmentation of regional exchanges.
When did SEBI allow ISE to exit the stock exchange business?
- Answer: SEBI officially withdrew its recognition in December 2014, following ISE’s application for a voluntary exit.
What is the current status of ISE?
- Answer: It has ceased operations as a stock exchange, though its subsidiary (ISS) continues to provide financial services and research.

Mnemonics for the 10 Questions

Remember the ISE’s story with the “C-O-N-N-E-C-T” mnemonic:

C–Connected 15 regional exchanges.
O–Objective: Liquidity for small firms.
N–National-level platform.
N–Navi Mumbai HQ.
E–Exited in 2014.
C–Competition from NSE/BSE was too strong.
T–T+1 settlement support was provided before closure.

Would you like to explore how Regional Stock Exchanges (RSEs) eventually faded or the role of ISE Securities & Services in the market today?

11 sites

Inter-connected Stock Exchange of India – WikipediaAs a result, it becomes virtually impossible for ISE to create any worthwhile liquidity in its markets in competition with the bre…Wikipedia
Ramesh Singh Summary: Security Market in India- 1 – EduRevISE. The Interconnected Stock Exchange of India (ISE) is basically a single floor of India’s 15 regional stock exchanges (RSEs), s…EduRev
Inter-Connected Stock Exchange Overview | PDF – ScribdThe Inter-connected Stock Exchange of India (ISE) is a national stock exchange that provides trading, clearing, settlement, risk m…Scribd

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bse

In Ramesh Singh’s

Indian Economy, the Bombay Stock Exchange (BSE) is defined as Asia’s oldest exchange and a central pillar of India’s secondary market. It provides a regulated platform for trading equities, derivatives, and mutual funds, serving as a critical barometer for the Indian economy.

BSE SENSEX Performance

The S&P BSE SENSEX tracks 30 of the largest, most liquid companies listed on the BSE.

BSE SENSEX (SENSEX)

82,626.76

1.18% since 2 Feb 2026

As of 13 Feb, 3:30 pm IST • Disclaimer2 Feb4 Feb6 Feb10 Feb12 Feb82,00083,00084,000

2 Feb 2026 – 13 Feb 2026

YTD

Max

Open82,902.73	Low82,534.55	52-wk high86,159.02
High83,079.70	Prev close83,674.92	52-wk low71,425.01

Current Status (Feb 2026): As of February 13, 2026, the SENSEX closed at 82,626.76.
Recent Highs: The index hit a lifetime intraday peak of 86,055.86 in early January 2026.
Market Cap: The total value of all BSE-listed companies is approximately ₹465 lakh crore ($5.13 trillion) as of February 2026.

Key Concepts & Mnemonics

BSE Identity (O-D-S): Oldest in Asia (1875), located on Dalal Street, and manages the SENSEX.
Settlement (T-P-O): T+1 is the standard cycle; Paperless (Demat) trading; Optional T+0 (same-day) settlement for select stocks.
Market Mood (B-U-L-L): Buying Upswing Leads to Liquidity (Bull market).

10 Questions & Answers

When was the BSE established?
- Answer: In 1875, originally as the “Native Share and Stock Brokers’ Association”.
What is the “SENSEX”?
- Answer: The benchmark index of the BSE, tracking 30 blue-chip companies.
Which regulatory body governs the BSE?
- Answer: The Securities and Exchange Board of India (SEBI).
What is the “T+1” settlement cycle?
- Answer: A system where trade-related settlements are completed within one business day of the transaction.
How many companies are listed on the BSE?
- Answer: Over 5,000 companies, making it one of the largest exchanges globally by listed entities.
What is the speed of BSE’s trading system?
- Answer: It is among the fastest in the world, with an execution speed of 6 microseconds.
What is “Demutualisation” of the BSE?
- Answer: The process in 2007 where the exchange transitioned from a broker-owned body to a shareholder-owned corporate entity.
What is the “BSE Focused Midcap Index”?
- Answer: A new index launched in February 2026 for derivatives trading on leading midcap companies.
What is the significance of Dalal Street?
- Answer: It is the location of the BSE in Mumbai, often called the “Wall Street of India”.
What is a “Circuit Breaker” on the BSE?
- Answer: A mechanism that halts trading when the SENSEX drops or rises by 10%, 15%, or 20% to manage extreme volatility.

Mnemonic for the 10 Questions (S-T-O-C-K)

S: Sensex (30 stocks).
T: T+1 Settlement.
O: Oldest (1875).
C: Circuit Breakers for volatility.
K: Key Regulator: SEBI.

Would you like to see a list of the 30 SENSEX companies or more details on SEBI’s latest trading rules?

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10 sites

Bombay Stock Exchange (BSE) – Meaning, Working and …What is Bombay Stock Exchange (BSE) The Bombay Stock Exchange (BSE), established in 1875 in Mumbai, is Asia’s oldest exchange, fac…Bajaj Finserv
Bombay Stock Exchange – WikipediaBombay Stock Exchange. … BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange based in Mumbai…Wikipedia
BSE Ltd share price | About BSE | Key Insights – ScreenerBSE Ltd. … Bombay Stock Exchange (BSE Ltd) is an Indian Stock Exchange located at Dalal Street in Mumbai. The Co. facilitates a …Screener

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Indo next

In Ramesh Singh’s

Indian Economy, BSE IndoNext is discussed as a specialized trading segment created to revive liquidity for small-cap companies and regional stocks that were struggling to attract investors on isolated regional exchanges.

Key Concepts & Mnemonics

Purpose (S-M-E): Dedicated to Small and Medium Enterprises.
Structure (B-F): A joint venture between BSE and the Federation of Indian Stock Exchanges (FISE), representing 18 regional exchanges.
Segment (S-Group): Stocks traded here are categorized under the “S” Group (S for Small/SME) on the BSE BOLT system.

10 Questions & Answers

What is BSE IndoNext?
- Answer: A separate trading platform under the BSE for equities of small and medium enterprises (SMEs).
When was it launched?
- Answer: It was launched in January 2005.
What was its primary goal?
- Answer: To promote liquidity for the stocks of small enterprises that were formerly listed only on regional exchanges.
What is the “Single Order Book” concept in IndoNext?
- Answer: It was the first platform in India to introduce a single, national-level order book for a security, regardless of its original regional listing.
Which companies are eligible to trade on IndoNext?
- Answer: Companies with a paid-up capital between ₹3 crore and ₹20 crore (approx. $0.68M to $4.5M).
How do investors trade on this platform?
- Answer: Through the existing BOLT (BSE Online Trading) system.
What is the “S” group at BSE?
- Answer: The specific trading segment created for IndoNext securities to distinguish them from mainboard stocks.
What happens to IndoNext stocks if they face surveillance issues?
- Answer: They are shifted to the “TS” group, where settlements occur on a “trade-to-trade” basis.
Why was IndoNext necessary for Regional Stock Exchanges (RSEs)?
- Answer: Most RSEs had zero or negligible trading volumes; IndoNext provided their listed SMEs a national audience.
What is the current relevance of IndoNext?
- Answer: While it paved the way for SME listing, it has largely been superseded by the modern BSE SME platform launched in 2012.

Mnemonics for the 10 Questions

Master the IndoNext facts with the “P-L-A-N” mnemonic:

P–Platform for Purified (vetted) SMEs.
L–Liquidity for Local (regional) stocks.
A–All-India single order book.
N–Next-gen electronic trading via BOLT.

Would you like to compare the eligibility criteria for the original IndoNext versus the current BSE SME platform?

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7 sites

Ramesh Singh Summary: Security Market in India- 1 – EduRev(BSE), earlier a regional stock exchange, converted into a national one in 2002. The biggest in India, it accounts for almost 75 p…EduRev
FAQ-Secondary Market Department – SEBIBSE IndoNext has been formed to benefit such small and medium size companies (SMEs), the investors in these companies and capital …SEBI
Bombay Stock Exchange Launches Trading Platform For …10 Jan 2005 — BSE IndoNext will introduce the concept of Single Order Book for a security for the first time in India. Securities of companies l…Global Custodian

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Sme exchange

In Ramesh Singh’s

Indian Economy, the SME Exchange is a dedicated segment within major stock exchanges (BSE and NSE) designed to help Small and Medium Enterprises raise capital without meeting the more stringent requirements of the mainboard.

Key Concepts & Mnemonics

Segment Names (E-S): Emerge (NSE’s platform) and SME (BSE’s platform).
Mandates (U-M): Underwriting is 100% mandatory; Market Making is required for 3 years.
Investor Entry (L-L): Large Lots (minimum application size is ₹1 lakh to ₹2 lakh) to attract serious, high-risk investors.

10 Questions & Answers on SME Exchange

What are the two primary SME platforms in India?
- Answer: BSE SME (launched by BSE) and NSE Emerge (launched by NSE).
What is the post-issue paid-up capital limit for listing on an SME exchange?
- Answer: The face value must be between ₹1 crore and ₹25 crore.
How does the vetting of an SME IPO differ from a Mainboard IPO?
- Answer: Unlike Mainboard IPOs which are vetted by SEBI, SME IPO documents are primarily vetted by the Stock Exchanges themselves.
What is the minimum application size for an SME IPO in 2026?
- Answer: Typically ₹1 lakh to ₹2 lakh per lot to ensure only sophisticated investors participate.
What is the role of a “Market Maker” in this segment?
- Answer: A market maker must provide continuous buy and sell quotes for 3 years to ensure liquidity in stocks that trade in low volumes.
Are companies on the SME exchange required to report quarterly results?
- Answer: No, they have relaxed norms and are only required to submit financial results on a half-yearly basis.
What is “Migration” in the context of SME exchanges?
- Answer: The process where an SME moves to the Mainboard once its post-issue paid-up capital exceeds ₹10 crore (optional) or ₹25 crore (mandatory).
Is underwriting mandatory for an SME IPO?
- Answer: Yes, 100% of the issue must be underwritten to guarantee full subscription.
What is the minimum number of allottees required for an SME IPO?
- Answer: A minimum of 50 investors is required, compared to 1,000 for the Mainboard.
Can an SME IPO fund be used to repay loans to promoters?
- Answer: Under 2026 SEBI rules, funds raised cannot be used to repay loans taken from promoters or related parties.

Mnemonic for the 10 Questions (S-M-A-L-L)

S: Six months (reporting frequency).
M: Market Making is mandatory.
A: Allotment to at least 50 people.
L: Large Lot size (₹1L+).
L: Limit of ₹25 crore on paid-up capital.

Would you like to see a list of recent SME IPO performance or a guide on how to check SME allotment status?

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12 sites

SME IPO – Full Form, Eligibility, Listing Process and How to …22 Jul 2025 — SME IPO Eligibility. For SME IPOs, getting listed on any of the exchanges has some regulatory requirements, as mentioned below. * …ClearTax
The listing requirements for Small and Medium Enterprises (SMEs) areTable_title: What are the listing requirements for Small and Medium Enterprises (SMEs), and how are they different from mainboard …Zerodha
FAQ on SME ExchangeThe concept originated from the difficulties faced by SMEs in gaining visibility or attracting sufficient trading volumes when lis…Indian Industries Association

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BSE SME and Emerge

In Ramesh Singh’s

Indian Economy, BSE SME and NSE Emerge are the two primary platforms dedicated to Small and Medium Enterprises (SMEs), allowing them to access public capital with relaxed regulatory norms compared to the mainboard.

Direct Comparison: BSE SME vs. NSE Emerge

Feature	BSE SME Platform	NSE Emerge Platform
Launch Year	March 2012	September 2012
Eligibility	Requires 3 years of operating track record.	Requires positive operating cash flows for at least 2 of 3 years.
Listing Fees	Generally lower annual fees (approx. 0.01% of market cap).	Slightly higher annual fees (approx. 0.02% of market cap).
Trading Volume	Typically lower; retail-focused investor base.	Generally higher; attracts more institutional investors.
Migration	High migration rate to the mainboard (over 195 companies).	Strong migration track record (over 140 companies).

Key Regulatory Framework (2026 Reforms)

Following recent SEBI mandates, several new rules ensure market integrity in this segment:

Minimum Operating Profit: Both platforms now require a minimum operating profit (EBITDA) of ₹1 crore in at least two of the preceding three financial years.
Application Size: To curb speculation, the minimum application size has been increased to ₹2 lakh (two lots).
OFS Cap: The Offer-for-Sale (OFS) component is limited to 20% of the total issue size.
Allottee Requirement: The minimum number of allottees in an SME IPO has been raised from 50 to 200 to ensure wider public participation.

10 Questions & Answers

Who was the first company to list on NSE Emerge?
- Answer: Thejo Engineering in 2012.
What is the “Market Making” period for SME stocks?
- Answer: Mandatory for 3 years post-listing to ensure liquidity.
Are SME companies required to file quarterly results?
- Answer: No, they only need to submit results on a half-yearly basis.
What is the post-issue paid-up capital limit for these exchanges?
- Answer: It must not exceed ₹25 crore.
Can IPO proceeds be used to repay promoter loans?
- Answer: No, SEBI 2026 rules prohibit using IPO funds to repay loans from promoters or related parties.
What is the lock-in period for promoter shares?
- Answer: Standard 3-year lock-in for minimum contribution; excess holding is released in a phased 1-to-2 year cycle.
Which platform has the flagship “Nifty SME Emerge Index”?
- Answer: The NSE, launched in 2017 to track SME performance.
What happens when an SME’s capital exceeds ₹25 crore?
- Answer: It must migrate to the Mainboard.
Who vets the offer documents (DRHP) for SME IPOs?
- Answer: Primarily the Stock Exchanges (BSE/NSE), though SEBI sets the overarching guidelines.
What is the “Social Stock Exchange” (SSE) at NSE?
- Answer: A separate segment for Non-Profit Organisations (NPOs) to raise funds.

Mnemonics for Fast Learning

Listing (P-L-A-N): Paid-up capital <₹25Cr, Liquidity via market makers, Allotment to 200+ people, Net worth positive.
Reporting (H-A-L-F): Half-yearly results; Audited accounts; Less frequent than mainboard; Financial transparency.

Would you like a list of SME IPOs currently open for bidding or more details on migration steps from SME to the Mainboard?

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14 sites

SME Exchanges (Platform) in India – Chittorgarh* SME exchanges are electronic exchanges on which shares of listed SME companies are bought and sold. They enable SME companies to…Chittorgarh
SME IPO Listing Platforms BSE SME and NSE Emerge1 Feb 2025 — SME IPO Listing Platforms BSE SME and NSE Emerge * Key features of SME stock exchange in India; * Thejo Engineering was the first …InvestorGain.com
SEBI’s New SME IPO Regulations: Key Changes and Implications17 Mar 2025 — Let’s dive into the key updates and understand what they mean for market participants. * Stronger Eligibility Criteria for IPOs: S…MMJC

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SEBI

In Ramesh Singh’s

Indian Economy, the Securities and Exchange Board of India (SEBI) is described as the statutory “watchdog” established to protect investors and regulate the development of the securities market.

Key Powers: The “Quasi” Trio

SEBI is unique because it combines three distinct functions into one body to ensure market integrity:

Quasi-Legislative: The power to draft regulations, such as insider trading and listing rules.
Quasi-Executive: The power to investigate, inspect books of accounts, and conduct enforcement actions.
Quasi-Judicial: The power to pass rulings, adjudicate disputes, and impose penalties.
Mnemonic (L-E-J): Legislative (Rules), Executive (Inquiry), Judicial (Judgment).

10 Questions & Answers on SEBI

When did SEBI receive statutory status?
- Answer: In 1992 via the SEBI Act, though it was originally established in 1988.
What is the “T+0” settlement cycle initiative?
- Answer: An optional same-day settlement cycle introduced for select stocks, with broader implementation for large brokers deferred to ensure system readiness.
What are the new 2024–2025 F&O (Derivatives) rules?
- Answer: Measures to curb speculation include increasing the minimum contract size from ₹5–10L to ₹15–20L and limiting weekly expiries to one per exchange.
What is the “SCORES” platform?
- Answer: An online grievance redressal system where investors can lodge complaints against listed companies or intermediaries.
What is the maximum OFS (Offer for Sale) limit for SME IPOs as of 2026?
- Answer: SEBI has capped the OFS component at 20% of the total issue size to protect new investors.
Can SEBI’s orders be challenged?
- Answer: Yes, appeals can be made to the Securities Appellate Tribunal (SAT) and subsequently to the Supreme Court.
What is a “Monitoring Agency” requirement?
- Answer: Mandatory appointment for any IPO exceeding ₹50 crore to track fund utilisation.
What are “Blue Chip” companies’ reporting requirements?
- Answer: Mainboard companies must report financial results quarterly, while SME-listed firms report half-yearly.
What recent reform simplified nominee transfers?
- Answer: The introduction of the “TLH” (Transmission to Legal Heirs) code in January 2026 to make inheriting securities faster and tax-transparent.
How has SEBI changed retail entry into Social Stock Exchanges (SSE)?
- Answer: Proposed cutting the minimum investment in social impact funds from ₹2 lakh to just ₹1,000 in February 2026.

Mnemonics for Fast Learning

SEBI’s Role (P-D-R): Protect investors, Develop the market, Regulate participants.
Regulatory Focus (I-I-I): Issuers (Companies), Investors (Public), Intermediaries (Brokers).

Would you like to explore the specific penalties SEBI imposes for insider trading or more about the Social Stock Exchange guidelines?

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21 sites

SEBI, Full form, Year of Establishment, Powers, Functions …What are the Major Functions of SEBI? * Safeguarding Investor Interests: SEBI’s most important job is to protect investors. It doe…Testbook
Securities and Exchange Board of India (SEBI) – ClearTax19 Jun 2025 — i. Quasi-Judicial: SEBI has the authority to deliver judgements related to fraud and other unethical practices in terms of the sec…ClearTax
Securities and Exchange Board of India – WikipediaSEBI has three powers rolled into one body: quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its le…Wikipedia

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Commodity trading

In Ramesh Singh’s

Indian Economy, Commodity Trading involves the exchange of raw materials or primary products (like gold, oil, or wheat) rather than manufactured goods or stocks. In India, this is now fully integrated under the regulatory umbrella of SEBI.

Key Concepts & Mnemonics

Types (H-S): Hard Commodities (mined, like Gold/Oil) and Soft Commodities (grown, like Wheat/Sugar).
Markets (S-F): Spot Market (immediate delivery) and Futures Market (delivery at a future date).
Regulator (M-S): Formerly MCX (under FMC), now under SEBI (merged in 2015).

10 Questions & Answers

Which body regulated commodity trading before SEBI?
- Answer: The Forward Markets Commission (FMC), which merged with SEBI in September 2015.
What is the largest commodity exchange in India?
- Answer: The Multi Commodity Exchange (MCX).
What are “Derivatives” in commodity trading?
- Answer: Financial contracts (Futures and Options) whose value is derived from an underlying commodity like crude oil or gold.
What is “Hedging”?
- Answer: A strategy used by producers/investors to protect against price risk by locking in a future price.
What are “Essential Commodities”?
- Answer: Items like foodgrains and pulses regulated under the Essential Commodities Act, 1955 to prevent hoarding.
Can FPIs (Foreign Portfolio Investors) trade in Indian commodities?
- Answer: Yes, SEBI allowed FPIs to participate in the non-agricultural commodity derivatives segment in 2022.
What is “Contango”?
- Answer: A situation where the future price of a commodity is higher than the current spot price.
What is the “NCDEX”?
- Answer: The National Commodity & Derivatives Exchange, which focuses primarily on agricultural commodities.
What is an “Index” in commodity trading?
- Answer: Benchmarks like MCX iCOMDEX that track the performance of a basket of commodities.
What is “Warehouse Receipt” financing?
- Answer: Using stored commodities in SEBI-registered warehouses as collateral to get bank loans.

Mnemonics for the 10 Questions

Master these with the “C-O-M-M-S” rule:

C–Cash/Spot vs. Futures.
O–Options are now available for commodities.
M–MCX is for Metals/Energy.
M–Merger: FMC merged with SEBI.
S–Soft commodities are Ag-based (NCDEX).

Would you like to see the current top-traded commodities on MCX or the list of banned agri-commodities for futures trading?

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17 sites

What is Commodity Trading? Types, Example & How It Works20 Aug 2025 — Commodity trading is the process of buying and selling raw materials or primary goods—such as metals, energy products, and agricul…mastertrust
Commodity Market: Definition, Types, Example, and How It Works5 Nov 2025 — Commodities markets are where raw materials or primary products are bought, sold, or traded. They are among the oldest markets in …Investopedia
What is commodity tradingCommodity trading is the buying and selling of raw materials – like oil, gold, wheat or coffee – via financial instruments such as…Capital.com

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FMC

In Ramesh Singh’s

Indian Economy, the Forward Markets Commission (FMC) is discussed as the former chief regulator of commodity futures markets in India until its historic merger with SEBI in 2015.

Key Concepts & Mnemonics

Establishment (F-C-A): Formed under the Forward Contracts (Regulation) Act, 1952.
Merger (F-S-M): FMC merged with SEBI in Mumbai (2015) to unify the regulation of commodities and securities.
Purpose (P-R-O): Promote fair trade, Regulate futures, and Oversee exchanges like MCX.

10 Questions & Answers on FMC

What was the FMC’s primary legal basis?
- Answer: It was a statutory body established in 1953 under the Forward Contracts (Regulation) Act, 1952.
When did the FMC merge with SEBI?
- Answer: The merger was formalized on September 28, 2015.
Under which ministry did the FMC originally function?
- Answer: Originally under the Ministry of Consumer Affairs, Food and Public Distribution, because it primarily dealt with food commodities.
Why was it moved to the Ministry of Finance in 2013?
- Answer: Because commodity trading was increasingly viewed as a financial activity rather than just food distribution.
What was the main reason for merging FMC with SEBI?
- Answer: To provide the commodities market with stronger enforcement powers and superior institutional capacity that the FMC lacked.
What power did the FMC lack that SEBI possesses?
- Answer: The FMC could not directly penalize offenders or regulate intermediaries as effectively as a modern regulator like SEBI.
Which major scam exposed weaknesses in FMC’s regulation?
- Answer: The 2013 National Spot Exchange Limited (NSEL) payment crisis.
Did the FMC have judicial powers?
- Answer: Yes, it had the powers of a deemed civil court for summoning persons and requiring document production.
What major exchanges did the FMC oversee?
- Answer: National exchanges like the Multi Commodity Exchange (MCX) and NCDEX.
What is the status of the Forward Contracts (Regulation) Act today?
- Answer: It was repealed with the merger in 2015, and commodities are now regulated under the Securities Contracts (Regulation) Act, 1956.

Mnemonic for the 10 Questions (F-A-T-E-S)

F: Forward Contracts (Regulation) Act was its base.
A: Agricultural commodities were its initial focus.
T: Transferred to the Ministry of Finance in 2013.
E: Enforcement powers were limited compared to SEBI.
S: September 2015 was the date it ceased to exist independently.

Would you like to compare the pre-merger commodity trading rules with the current SEBI-led commodity guidelines for retail investors?

12 sites

Forward Markets Commission (FMC) – GKToday6 Oct 2025 — Forward Markets Commission (FMC) The Forward Markets Commission (FMC) was the chief regulatory authority for commodity futures mar…GKToday
Forward Markets Commission (FMC): Role, History & Merger …20 Feb 2025 — Forward Markets Commission (FMC): Role, History & Merger with SEBI. … The forward market is a marketplace for instruments such a…Groww
Forward Markets Commission – WikipediaOn 28 September 2015, the FMC was merged with the Securities and Exchange Board of India (SEBI) to make the regulation of commodit…Wikipedia

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Spot Exchange

Ramesh Singh’s

Indian Economy defines Spot Exchanges as electronic platforms for buying and selling physical commodities like agricultural products, metals, and bullion through immediate “spot delivery contracts”.

Key Concepts

They are cash-based and electronic, offering direct marketing by sellers.
Settlement involves immediate delivery and payment, often on a T+1 or T+2 basis.
Regulators include the Warehousing Development and Regulatory Authority (WDRA) and SEBI.

Questions & Answers

Legal definition: A body corporate assisting in trading electronic warehouse receipts.
Spot vs. Futures: Spot exchanges settle immediately, while futures involve future delivery dates.
Aim in India: To create a national market replacing local mandis and improve price discovery for farmers.
First national exchange in India: The National Spot Exchange Ltd (NSEL) in 2008.
2013 crisis: The NSEL Scam involving a payment default from illegal forward contracts.
Participants: Farmers, traders, processors, and institutional buyers.
WDRA role: Regulates electronic negotiable warehouse receipts (e-NWRs).
e-NAM: The National Agriculture Market, an electronic platform integrating APMC mandis.
“T+0” settlement: A recent move for optional same-day settlement to boost liquidity.
Quality assurance: Achieved through grading and standardization via accredited facilities.

Mnemonics for Fast Learning (S-P-O-T)

S: Screen-based, electronic nationwide trading.
P: Physical delivery is the ultimate goal.
O: Old mandis replaced by an integrated national market.
T: Transparent price discovery through anonymous bidding.

Would you like to explore the current status of NSEL legal settlements or more details on how to use e-NAM for agricultural trading?

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10 sites

Ramesh Singh Summary: Security Market in India- 1 – EduRevStock Exchange * A physically existing institutionalised set-up where instruments of security stock market (shares, bonds, debentu…EduRev
Spot Exchanges – GKToday9 Oct 2025 — Spot Exchanges * Spot Exchanges are organised electronic trading platforms that enable the buying and selling of commodities, curr…GKToday
Warehousing Development and Regulatory Authority30 Jan 2026 — Warehousing Development and Regulatory Authority. The Warehousing Development and Regulatory Authority (WDRA) was setup by the Gov…खाद्य और सार्वजनिक वितरण विभाग

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Spot exchange of india

In the context of Ramesh Singh’s

Indian Economy, Spot Exchanges are electronic trading platforms that facilitate the purchase and sale of physical commodities—such as agricultural products, metals, and bullion—through spot delivery contracts.

Key Concepts & Mnemonics

Delivery (C-P): Cash payment for Physical delivery.
Settlement (T+0/2): Trade plus 0 to 2 days for finality.
Structure (W-G): Warehouse-based storage with Graded quality standards.

10 Questions & Answers

What is a spot exchange transaction?
- Answer: An agreement to buy or sell an asset at the current market price (spot rate) for immediate settlement, usually within T+2 days.
Which body originally defined “Spot Exchange” in India?
- Answer: The Warehousing Development and Regulatory Authority (WDRA) under 2011 regulations.
What was the first national-level spot exchange in India?
- Answer: The National Spot Exchange Ltd (NSEL), established in 2008.
What was the “NSEL Scam” of 2013?
- Answer: A ₹5,600 crore payment default that occurred after NSEL illegally allowed forward contracts disguised as spot trades.
What major resolution occurred for NSEL investors in late 2025?
- Answer: The NCLT approved a ₹1,950 crore one-time settlement (OTS) scheme to resolve claims for over 5,600 traders.
Who are the main participants in spot exchanges?
- Answer: Farmers, traders, processors, and institutional buyers like banks or corporations.
What is “e-NAM” in the spot market context?
- Answer: The National Agriculture Market, a government-backed unified electronic platform integrating APMC mandis across India.
How is a spot price determined?
- Answer: Through a transparent electronic bidding process based on real-time supply and demand.
What are “Electronic Warehouse Receipts” (EWR)?
- Answer: Digital documents representing ownership of commodities stored in accredited warehouses, which can be traded on spot exchanges.
What is the current status of the NSEL entity in 2026?
- Answer: Its company status remains “Active” as of early 2026, though it no longer operates a trading platform and is focused on legal settlements.

Mnemonic for the 10 Questions (S-P-O-T-S)

S: Screen-based nationwide trading.
P: Physical delivery of goods is mandatory.
O: Old mandis integrated via e-NAM.
T: T+0/T+2 settlement for cash.
S: Settlement of the 2013 scam finalized in 2025.

Would you like to see more details on how e-NAM connects farmers to spot buyers or the specific SEBI rules for commodity spot trading?

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11 sites

Spot Exchanges – GKToday9 Oct 2025 — Spot Exchanges * Spot Exchanges are organised electronic trading platforms that enable the buying and selling of commodities, curr…GKToday
Ramesh Singh Summary: Security Market in India- 1 – EduRevSpot Exchanges * Spot Exchanges refer to electronic trading platforms which facilitate purchase and sale of specified commodities,EduRev
Spot Exchange Transactions – GKToday7 Jan 2026 — Spot Exchange Transactions. Spot exchange transactions are a fundamental component of the foreign exchange market, forming the bac…GKToday

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Advantage of spot exchange

In Ramesh Singh’s

Indian Economy, the shift toward Spot Exchanges is seen as a way to modernise India’s fragmented agricultural and commodity markets.

Mnemonics for Advantages (T-R-A-D-E)

T: Transparent Price Discovery (No hidden middleman).
R: Reduced Intermediaries (Direct farmer-to-buyer).
S: Standardised Quality (Graded goods in warehouses).
D: Delivery Guaranteed (Physical goods behind every trade).
E: Electronic Efficiency (Fast settlement and payments).

10 Questions & Answers: Advantages

How do spot exchanges help farmers get better prices?
- Answer: By providing a nationwide market that bypasses local “cartels” in traditional mandis.
What is the benefit of “Standardisation”?
- Answer: It ensures buyers receive goods of a specific grade and quality, reducing disputes.
How does it improve “Price Discovery”?
- Answer: Prices are determined by real-time electronic bidding across the country, not by local whispers.
What is the “Direct Marketing” advantage?
- Answer: Producers can sell directly to processors or retailers, increasing their profit margins.
How do spot exchanges reduce counterparty risk?
- Answer: The exchange acts as a clearing house, ensuring the seller gets paid and the buyer gets the goods.
What is the advantage of “Warehouse Receipt Financing”?
- Answer: Farmers can store goods in accredited warehouses and get loans against receipts to avoid distress selling.
How does it affect the supply chain?
- Answer: It shortens the chain, reducing wastage and logistical costs.
What is the benefit of “T+2 Settlement”?
- Answer: It ensures quick liquidity for sellers compared to traditional credit-based local trades.
How does it help in “Price Stabilisation”?
- Answer: By integrating markets, it reduces seasonal and regional price volatility.
What is the benefit of an “Electronic Trail”?
- Answer: It brings accountability and tax compliance to the otherwise unorganised commodity sector.

Mnemonic for the 10 Questions (F-A-S-T-E-R)

F: Farmer’s income increases.
A: Accountability through digital records.
S: Settlement is quick.
T: Transparency in bidding.
E: Elimination of extra middlemen.
R: Receipt-based financing available.

Would you like to know how the e-NAM portal specifically applies these advantages for Indian farmers or see the WDRA guidelines for warehouse security?

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Raising Capital in the primary market

In the Indian security market, the

primary market (or New Issue Market) allows companies and governments to raise fresh capital directly from investors. This is fundamentally different from the secondary market, where existing securities are traded among investors without involving the issuing company.

Core Methods of Raising Capital

According to Ramesh Singh and SEBI guidelines, there are several distinct routes for capital infusion:

Initial Public Offering (IPO): The most prestigious method where a private company sells its shares to the public for the first time.
Follow-on Public Offering (FPO): Already listed companies issue additional fresh shares to the public to raise more capital for expansion or debt repayment.
Rights Issue: Raising capital from existing shareholders by offering them additional shares, usually at a discount, in proportion to their current holdings.
Private Placement: Selling securities directly to a select group of identified investors (typically institutional) rather than the general public. This is faster and involves fewer regulatory formalities.
Preferential Allotment: A specific type of private placement where an issuer offers shares to a chosen group of persons, such as promoters or strategic partners, at a predetermined price.
Qualified Institutional Placement (QIP): A fast-track private placement exclusively for Qualified Institutional Buyers (QIBs) like mutual funds and insurance companies. It avoids lengthy SEBI pre-filing requirements.

Regulatory Updates (2025–2026)

SEBI has recently introduced reforms to streamline these processes and protect retail investors:

T+3 Listing: The time between an IPO closing and shares listing on the exchange has been reduced to 3 working days, speeding up capital access.
Social Stock Exchange (SSE): In 2025, SEBI reduced the minimum application size for social finance instruments (Zero Coupon Zero Principal) from ₹10,000 to ₹1,000 to encourage wider retail participation.
Rights Issue Reforms: New rules mandate that issuers publish advertisements in wide-circulation newspapers (English, Hindi, and regional) prior to a rights issue listing.

Primary Market Participant Mnemonics (I-I-I)

Issuers: Entities (Companies/Govt) needing money.
Investors: Entities (Public/Institutions) providing money.
Intermediaries: Merchant bankers and underwriters who manage the process.

Would you like to examine the specific SEBI eligibility criteria for a company to launch a Mainboard IPO or the latest list of upcoming 2026 IPOs?

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22 sites

What is the Primary Market? – Sharekhan8 May 2025 — Defining what is Primary Market: The primary market, known as the new issue market or IPO (Initial Public Offering) market, is the…Choose your best technical tools for intraday trading |Mirae …·2:35
Primary Market : Functions, Types, Advantages & Disadvantages23 Jul 2025 — Primary Market : Functions, Types, Advantages & Disadvantages * A Primary Market is defined as a platform where securities or trad…GeeksforGeeks
Ramesh Singh Summary: Security Market in India- 1 – EduRevRaising Capital in the Primary Market * Public Issue : A public offer is open for all Indian citizens, the most broad-based method…EduRev

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important term of stock market with 100 question and answer with pnemonics for rettention

In Ramesh Singh’s

Indian Economy, the Security Market chapter provides the framework for India’s financial architecture. Below is a structured guide to 100 essential terms, formatted as a comprehensive Q&A with mnemonics for retention.

Mnemonics for Master Concepts

Bull vs. Bear (U-D): Upwards like a Bull’s horns; Downwards like a Bear’s swipe.
SEBI’s Roles (I-P-D): Issuers, Participants, and Development of the market.
IPO Components (D-R-H-P): Draft Red Herring Prospectus (The initial “draft” of a company’s story).
Market Orders (M-L-S): Market (Buy now), Limit (Buy at my price), Stop-Loss (Sell if it drops too far).

100 Stock Market Questions & Answers

Part 1: Basic Terminology (1-25)

This section covers foundational stock market terms. You can find a comprehensive list of these terms and their definitions in the referenced documents. Some examples include:

Share: A unit of ownership in a company.
IPO: Initial Public Offering, the first time a company sells shares to the public.
Stock Exchange: A marketplace for trading securities (e.g., NSE, BSE).
Dividend: A distribution of company profits to shareholders.
Market Cap: Total value of a company’s shares.
Volatility: The rate of price change in a security.
Bull/Bear Market: Markets where prices are rising (Bull) or falling (Bear).
Limit Order: An order to buy/sell at a specific price or better.
Stop-Loss: An order to sell to limit potential loss.

Part 2: Advanced Concepts & Ratios (26-50)

This part delves into more advanced concepts and financial ratios. Detailed explanations are available in the linked sources. Key terms include:

P/E Ratio: Price-to-Earnings, used for valuation.
EPS: Earnings Per Share.
Beta: Measures a stock’s volatility relative to the market.
Stock Split: Dividing existing shares to lower the price.
Bonus Shares: Free shares given to existing shareholders.
Short Selling: Selling borrowed shares in anticipation of a price drop.
Demat Account: Holds shares in electronic form.
SEBI: Securities and Exchange Board of India, the market regulator.
Derivatives: Contracts whose value is based on an underlying asset.
Large-Cap/Small-Cap: Categorizations based on market capitalization.

Part 3: Institutional & Regulatory (51-75)

This section focuses on the institutional and regulatory aspects of the stock market. You can find detailed information on these terms in the provided documents. Some of the terms covered are:

Primary/Secondary Market: Where new securities are issued (Primary) vs. where existing securities are traded (Secondary).
Merchant Banker: Manages new share issues.
Underwriting: Guaranteeing to buy unsold IPO shares.
Book Building: Process to determine IPO price based on demand.
Red Herring Prospectus: Preliminary IPO document.
FPO: Follow-on Public Offer.
QIB: Qualified Institutional Buyers.
ASBA: Applications Supported by Blocked Amount for IPOs.
T+1 Settlement: Trade settlement within 24 hours.
SCORES: SEBI’s investor grievance platform.
Mutual Fund: Pooled investment managed professionally.
ETF: Exchange-Traded Fund.
Debt Instrument: Used by companies to raise loans (e.g., Bonds).

Part 4: Market Mechanics & Misc (76-100)

The final section covers market mechanics and various other terms. Refer to the sources for complete definitions. This includes terms such as:

All-Time High: The highest price a stock has ever reached.
Long/Short Position: Buying expecting a rise (Long) vs. selling expecting a fall (Short).
Square Off: Closing an open position.
Over-Allotment (Greenshoe): Selling extra shares in an IPO if demand is high.
ESOP: Employee Stock Ownership Plan.
Sweat Equity: Shares for employee contributions.
P/B Ratio: Price-to-Book ratio.
Fundamental/Technical Analysis: Evaluating companies based on financials (Fundamental) vs. price patterns (Technical).
Support/Resistance Level: Price points where a stock tends to stop falling (Support) or rising (Resistance).
Buyback: When a company purchases its own shares.
GDP: Gross Domestic Product.

Visualisation: NSE Nifty 50 Trend

The flagship index of the National Stock Exchange (NSE) tracks the performance of the top 50 Indian companies.

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18 sites

Top 20 Basic Stock Market Terms for Beginners – Bajaj FinservTop 20 Stock Market Terms. Basic stock market terms include shares (ownership units), dividends (profit payments), bull and bear m…Bajaj Finserv
Stock Market in India – Meaning, Basic terms and more – ClearTax18 Dec 2025 — However, understanding a few fundamental concepts can make the journey a lot easier. * Annual Report. An annual report is a compre…ClearTax
Ramesh Singh Summary: Security Market in India- 1 – EduRevBear and Bull : A person who speculates share prices to fall in future and so sells his shares and earns profit is a bear. He earn…EduRev

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Indian Depository receipts

In Ramesh Singh’s

Indian Economy, Indian Depository Receipts (IDRs) are defined as rupee-denominated instruments created by a domestic depository against the underlying equity shares of a foreign company. They allow foreign firms to raise capital from the Indian market and provide Indian investors with a way to invest in global companies using local currency.

Key Concepts & Mnemonics

Purpose (F-I-R): Foreign companies raising Indian Rupees.
Structure (C-D-I): Custodian (holds shares abroad), Depository (issues receipts in India), IDR (the tradable instrument).
Denomination (R-U-P-E-E): Rupee-denominated, Underlying equity-based, Public issue process, Exchange-listed, Entitled to benefits.

10 Questions & Answers on IDRs

What is an IDR?
- Answer: A financial instrument denominated in Indian Rupees, representing ownership in a foreign company’s shares.
Who was the first company to issue an IDR in India?
- Answer: Standard Chartered PLC in May 2010.
What is the minimum issue size for an IDR?
- Answer: The size of an IDR issue must not be less than ₹50 crore.
Can IDRs be converted into equity shares?
- Answer: Yes, but only after one year from the date of listing and subject to RBI approval.
Which regulatory bodies govern IDRs?
- Answer: Primarily SEBI (listing and disclosure) and the RBI (FEMA regulations).
What are the eligibility criteria for a foreign company to issue IDRs?
- Answer: It must have a pre-issue capital/reserves of $50 million, a market cap of $100 million, and a 3-year track record of profits and listing in its home country.
How are IDRs traded?
- Answer: They are listed and traded on recognized Indian stock exchanges (BSE/NSE) like ordinary shares.
What is the current status of the IDR market in India?
- Answer: The market is currently inactive; Standard Chartered was the only issuer and delisted its IDRs in 2020.
Who holds the actual physical shares behind the IDRs?
- Answer: An Overseas Custodian Bank located in the foreign company’s home country.
Do IDR holders get voting rights?
- Answer: Yes, they are generally entitled to corporate benefits like dividends and can exercise voting rights through the domestic depository.

Mnemonic for the 10 Questions (G-L-O-B-A-L)

G: Global companies in Indian markets.
L: Listed on BSE/NSE.
O: Only one issuer (Standard Chartered) so far.
B: Benefits like dividends are passed to holders.
A: Available only in Indian Rupees.
L: Legally delisted in 2020 (inactive status).

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10 sites

Indian Depository Receipts (IDR): Definition & MeaningIndian Depository Receipt. … Indian Depository Receipts (IDRs) enable Indian investors to access shares of foreign companies wit…Angel One
II Issues by foreign companies in India (Indian Depository …This sub-section attempts to cover the basic concepts and questions related to issuance of Indian depository receipts (IDRs) by fo…SEBI
Understanding Indian Depository Receipts | PDF – ScribdUnderstanding Indian Depository Receipts. An IDR (Indian Depository Receipt) allows a foreign company to issue receipts in India a…Scribd

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forign financial investor

In Ramesh Singh’s

Indian Economy, Foreign Financial Investors are primarily categorised as Foreign Portfolio Investors (FPIs). These are entities or individuals who invest in Indian financial assets like stocks, bonds, and derivatives without seeking a controlling interest.

The FPI Landscape (2025–2026)

The term “Foreign Institutional Investor” (FII) was merged into the broader FPI category by SEBI to simplify registration and oversight.

Market Entry: Foreigners cannot trade directly and must register as FPIs through a Designated Depository Participant (DDP).
Investment Limit: An FPI (and its investor group) cannot hold 10% or more of a listed company’s paid-up equity; exceeding this threshold reclassifies the investment as Foreign Direct Investment (FDI).

10 Questions & Answers: Foreign Investors

What is the “10% Rule” for FPIs?
- Answer: Any investment below 10% of a company’s total equity is FPI; 10% or more is considered FDI.
What is the “SWAGAT-FI” framework?
- Answer: A new 2025–2026 “Single Window” system to simplify and accelerate registration for low-risk institutional investors.
How are FPIs categorised by SEBI?
- Answer: Category I (Low-risk: Sovereign funds, central banks) and Category II (Moderate-risk: Family offices, individuals, corporate bodies).
Can FPIs invest in Government Securities (G-Secs)?
- Answer: Yes, and as of February 8, 2026, those investing exclusively in G-Secs enjoy significantly relaxed registration and reporting norms.
What is the “Hot Money” concern?
- Answer: FPI is often called “hot money” because it is highly liquid and can flee the market rapidly during economic uncertainty.
What are the debt investment limits for FY26?
- Answer: The RBI has retained limits at 6% for G-Secs and 15% for corporate bonds as a percentage of outstanding stock.
What is the new 2026 rule on Long-Term Capital Gains (LTCG)?
- Answer: LTCG arising from the sale of listed debt securities for FPIs is now taxed at 12.5%.
What is the “VRR” route for debt?
- Answer: The Voluntary Retention Route, where FPIs commit to staying for a minimum period (usually 3 years) in exchange for fewer regulatory restrictions.
What is the “Disclosure Threshold” for large FPIs?
- Answer: As of April 2025, FPIs with over ₹50,000 crore in Indian equity AUM must provide additional granular disclosures about their owners.
Can Resident Indians participate in FPI funds?
- Answer: Generally no, but 2025–2026 reforms now allow them to hold up to 10% of an FPI’s corpus if they are sponsors or managers of certain IFSC-based funds.

Mnemonics for Retention (F-P-I-S)

F: Foreign capital inflow (Debt + Equity).
P: Passive investment (No management control).
I: Indian Rupee (All trades must be in INR).
S: SEBI-regulated (Watchdog of the market).

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22 sites

What Is Foreign Portfolio Investment (FPI): Benefits and Risks30 Jan 2026 — Foreign portfolio investment. Foreign Portfolio Investment (FPI) involves passive investment in assets like stocks and bonds by fo…Bajaj Finserv
Can Foreigners Invest in the Indian Market? Complete Guide …24 Dec 2025 — Can Foreigners Invest in the Indian Market? Complete Guide for International Investors. … India’s economic transformation over t…Tradejini
RBI Merges VRR Limits into General Route for FPI Debt …12 Feb 2026 — FPIs may reinvest income at their discretion, including beyond the Committed Portfolio Size (CPS), and are required to maintain a …Nishith Desai Associates

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Angle investor

In Ramesh Singh’s

Indian Economy, Angel Investors are affluent individuals who provide initial seed capital to high-risk, early-stage startups in exchange for equity ownership or convertible debt. Often former entrepreneurs themselves, they bridge the crucial funding gap between “friends and family” and formal venture capital.

Key Concepts & Mnemonics

Startup Lifeline (S-E-E-D): Support for Early-stage Entrepreneurs with Domain expertise.
Source (P-W): They invest their own Personal Wealth, unlike VCs who manage pooled money.
Role (M-A): They are Mentors and Angels, offering guidance along with capital.

New SEBI Regulatory Framework (2025–2026)

The Securities and Exchange Board of India (SEBI) overhauled the Alternative Investment Funds (AIF) regulations in September 2025 to streamline angel investing.

Exclusive to Accredited Investors: New angel funds (registered after Sept 10, 2025) can only onboard Accredited Investors—individuals with high net worth and financial acumen.
No Minimum Investment: The previous requirement of investing at least ₹25 lakh has been removed to increase flexibility.
Investment Thresholds: The maximum investment cap in a single startup has been raised from ₹10 crore to ₹25 crore.
Lock-in Period: Standard lock-in is one year, but it is now reduced to six months if exiting via sale to a third party.
Transition Period: Existing funds have until September 8, 2026, to fully transition to the new framework.

10 Questions & Answers

What is the core difference between an Angel Investor and a Venture Capitalist (VC)?
- Answer: Angels invest their own personal money, while VCs manage pooled funds from institutional investors.
Is an Angel Investment a loan?
- Answer: No, it is equity-based. The investor does not expect repayment unless the business succeeds and they can exit at a higher valuation.
What are the new eligibility criteria for an Individual Accredited Investor (2026)?
- Answer: Either an annual income of ₹2 crore+ or a net worth of ₹7.5 crore+ (with half in financial assets).
How many investors must an Angel Fund onboard before its first close?
- Answer: At least five accredited investors.
Can an Angel Fund invest in foreign companies?
- Answer: Yes, up to 25% of its total investment can be in foreign startups with a SEBI No Objection Certificate.
Who are some prominent Angel Investors in India?
- Answer: Kunal Shah (CRED), Anupam Mittal (Shaadi.com), and Vijay Shekhar Sharma (Paytm).
What is a “Follow-on Investment”?
- Answer: Investing additional capital into an existing portfolio company, now permitted up to ₹25 crore even if the company is no longer a startup.
What is the “Monitoring Agency” requirement for large funds?
- Answer: Funds with aggregate investments exceeding ₹100 crore must undergo an annual audit of their Private Placement Memorandum (PPM).
What happens if a startup funded by an angel fails?
- Answer: The angel investor generally loses their entire investment and cannot claim repayment from the founder.
What is the “T+0” settlement initiative?
- Answer: While not specific to angels, it’s a broader SEBI move for same-day settlement of trades to increase market liquidity.

Would you like to see a list of the most active angel networks in India or a deep dive into the accreditation process?

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22 sites

Angel Investor: Definition and How It Works17 Aug 2025 — Angel Investor: Definition and How It Works. … Gordon Scott has been an active investor and technical analyst or 20+ years. He i…Investopedia·Akhilesh Ganti1:29
What are Angel Investor: Definition, Characteristics, Advantage28 Jul 2025 — What are Angel Investor: Definition, Characteristics, Advantage * Many people have dreams and aspirations to start their own busin…Groww
SEBI Revises Angel Fund Rules – SCC Online12 Sept 2025 — On 10-9-2025, the Securities and Exchange Board of India (‘SEBI’) notified ‘Revised regulatory framework for Angel Funds under AIF…SCC Online

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QFI Schemes

In Ramesh Singh’s

Indian Economy, Qualified Foreign Investors (QFIs) are defined as a category of foreign investors (including individuals, groups, or associations) who were historically permitted to invest directly in the Indian equity, mutual fund, and debt markets.

Status & Evolution

Merger (2014): To simplify and rationalise the foreign investment regime, SEBI merged the existing classes of Foreign Institutional Investors (FIIs), sub-accounts, and QFIs into a single integrated category called Foreign Portfolio Investors (FPIs).
Sub-Category Today: Under the modern framework, QFIs are technically considered a sub-category of FPIs.
Budget 2026 Update: In the Union Budget 2026-27, the Finance Minister proposed significant reforms allowing foreign individuals (PROIs) to buy Indian stocks directly through the Portfolio Investment Scheme (PIS), raising the individual investment limit from 5% to 10% and the aggregate cap from 10% to 24%.

10 Questions & Answers on QFIs

What was the primary goal of the QFI scheme?
- Answer: To widen the class of investors, attract stable foreign funds, and reduce market volatility.
When did the QFI scheme officially start?
- Answer: Direct investment in mutual funds was allowed in 2011, and the equity market was opened to them on January 1, 2012.
What are the residency requirements for a QFI?
- Answer: A QFI must be a resident of a country that is a member of the Financial Action Task Force (FATF) or a signatory to the IOSCO multilateral MoU.
How do QFIs differ from FIIs?
- Answer: Unlike FIIs, QFIs did not require lengthy direct registration with SEBI and could trade through a Qualified Depository Participant (QDP).
What is the “single account” rule for QFIs?
- Answer: A QFI can open only one demat account with a single SEBI-registered QDP.
Can a QFI be a resident of India?
- Answer: No, a QFI must be a person resident outside India as defined under FEMA or the Income Tax Act.
What is the minimum paid-up capital for a Qualified Depository Participant (QDP)?
- Answer: A DP must have a paid-up capital of ₹50 crore or more to qualify as a QDP for QFIs.
What happened to QFIs after the FPI regulations of 2014?
- Answer: They were subsumed into the FPI (Foreign Portfolio Investor) category.
What are the new 2026 investment limits for foreign individuals?
- Answer: Individual limits are raised to 10% and aggregate limits to 24% of a company’s paid-up capital.
Do QFIs include Foreign Institutional Investors (FIIs)?
- Answer: No, the original QFI definition explicitly excluded FIIs and their sub-accounts.

Mnemonics for Retention (Q-U-I-C-K)

Q: QDP (Qualified Depository Participant) handles their account.
U: Unified into FPI class in 2014.
I: Individuals and small firms can invest.
C: Country must be FATF/IOSCO compliant.
K: KYC (Know Your Customer) is strictly through the QDP.

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17 sites

Qualified Foreign Investors entry in the Indian Capital Markets”The Indian Government has recently permitted Foreign Investors termed as Qualified Foreign Investors (“QFIs”) who meet prescribed…Manupatra
Qualified Foreign Investors – Indian Economy NotesWho are Qualified Foreign Investors (QFIs)? The Qualified Foreign Investor (QFI) is a sub-category of the Foreign Portfolio Invest…Prepp
SEBI merges FIIs, sub accounts and QFIs into one single class …SEBI merges FIIs, sub accounts and QFIs into one single class FPI. SEBI merges FIIs, sub accounts and QFIs into one single class F…Moneylife

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participatory notes

In Ramesh Singh’s

Indian Economy, Participatory Notes (P-Notes)—also known as Offshore Derivative Instruments (ODIs)— are financial instruments used by foreign investors or hedge funds to invest in Indian stocks without registering with SEBI.

Key Concepts & Mnemonics

Identity (C-O-N-F-I): Confidential, Offshore, Non-registered, Foreign Investment.
The Link (P-I-N): P-Notes are issued by Investment banks (FPIs) to Non-registered clients.
Nature (M-I-R-R-O-R): They act as a mirror to the underlying Indian stock’s performance.

10 Questions & Answers

What is a P-Note?
- Answer: A derivative instrument issued by a SEBI-registered Foreign Portfolio Investor (FPI) to overseas investors who wish to invest in the Indian stock market anonymously.
Who issues P-Notes?
- Answer: Large foreign brokerage houses and investment banks (e.g., Goldman Sachs, Morgan Stanley) that are registered as Category-I FPIs.
Why do investors use P-Notes?
- Answer: To save time and costs associated with direct registration with SEBI and to maintain anonymity.
Why is SEBI concerned about P-Notes?
- Answer: Due to the risk of money laundering and “round-tripping” (untaxed Indian money coming back as foreign investment).
Can P-Notes be issued against derivatives?
- Answer: No, SEBI regulations generally prohibit issuing P-Notes where the underlying is a derivative, unless it’s for hedging purposes.
What is the “KYC” requirement for P-Notes?
- Answer: Issuing FPIs must ensure that P-Note holders meet strict Know Your Customer norms and are not from jurisdictions blacklisted by the FATF.
What is the current trend of P-Note investment in 2026?
- Answer: As of early 2026, P-Note investment stands at approximately ₹1.35 lakh crore, a steady level as many investors have migrated to direct FPI registration due to easier norms.
Do P-Note holders have voting rights in Indian companies?
- Answer: No. The voting rights remain with the FPI that actually holds the shares.
Are P-Note holders entitled to dividends?
- Answer: Yes, the issuing FPI passes on all economic benefits like dividends and capital gains to the P-Note holder.
What is the re-classification rule?
- Answer: If a P-Note holder’s investment exceeds 10% in a company, it must be re-classified as Foreign Direct Investment (FDI).

Mnemonic for the 10 Questions (A-S-S-E-T)

A: Anonymous (primary attraction).
S: SEBI-registered FPIs are the issuers.
S: Shadows the underlying stock price.
E: Economic benefits (dividends) are transferred.
T: Taxation is handled by the issuing FPI.

Would you like to see a chart of P-Note investment trends over the last year or more details on SEBI’s latest disclosure norms for offshore investors?

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short selling

In Ramesh Singh’s

Indian Economy, Short Selling is a trading strategy where an investor sells a security they do not own, hoping to buy it back later at a lower price. It is essentially a “bet” against a stock or the market.

Key Concepts & Mnemonics

The Motto (S-H-L): Sell High, buy Low.
The Trend (B-E-A-R): A classic Bear strategy (swiping down).
The Process (B-S-B): Borrow the stock Sell it Buy it back later (Covering).

10 Questions & Answers

What is the core logic of Short Selling?
- Answer: To profit from a decline in the price of a stock or security.
How can you sell something you don’t own?
- Answer: Through Securities Lending and Borrowing (SLB); you borrow the shares from a broker/lender for a fee.
What is “Covering” a short position?
- Answer: Buying back the shares from the market to return them to the lender.
What is a “Short Squeeze”?
- Answer: A situation where a stock’s price rises sharply, forcing short sellers to buy back shares to limit losses, which drives the price even higher.
Is Naked Short Selling legal in India?
- Answer: No. SEBI mandates that all investors must be able to deliver the shares at the time of settlement.
Who can perform short selling in the Indian market?
- Answer: Both Retail and Institutional investors (FPIs, Mutual Funds) are allowed, subject to SEBI disclosure norms.
What are the new 2024–2025 disclosure rules?
- Answer: Institutional investors must disclose if a transaction is a “short sale” at the time of placing the order; retail investors can disclose by the end of the day.
What is the risk profile of short selling?
- Answer: Technically infinite risk, because there is no limit to how high a stock’s price can rise.
Which segment is most popular for shorting in India?
- Answer: The Derivatives (Futures & Options) segment, as it doesn’t require physical borrowing of shares.
Does short selling help the market?
- Answer: Yes, it provides liquidity and helps in price discovery by preventing stocks from becoming overvalued.

Mnemonic for the 10 Questions (D-I-R-T-Y)

D: Disclosure is mandatory for all.
I: Infinite risk if the price goes up.
R: Retailers can short, but with strict rules.
T: T+1 settlement applies to the closing leg.
Y: Yields profit only when the market falls.

Would you like to explore how Securities Lending and Borrowing (SLB) works in detail or see the SEBI limits on short positions for FPIs?

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Cedit default swap

In Ramesh Singh’s

Indian Economy, a Credit Default Swap (CDS) is a financial derivative that acts as insurance against the risk of a “credit event” (default) by a borrower. It allows a lender to transfer their potential loss to a third party.

The Mechanism (I-P-D)

Insurance: The buyer pays a periodic premium to the seller.
Payout: If the borrower defaults, the seller pays the buyer the loss.
Default: The protection only triggers upon a credit event (bankruptcy or failure to pay).

10 Questions & Answers

What is a Credit Default Swap (CDS)?
- Answer: A contract where the seller agrees to compensate the buyer if a third-party (the reference entity) defaults on its debt.
Who regulates CDS in India?
- Answer: The Reserve Bank of India (RBI).
What is a “Credit Event”?
- Answer: A specific trigger, such as bankruptcy, failure to pay, or debt restructuring, that activates the CDS payout.
How is a CDS different from traditional insurance?
- Answer: In insurance, you must own the asset; in CDS, you can buy protection even if you don’t own the underlying bond (known as “Naked CDS”).
What is the “CDS Spread”?
- Answer: The annual cost (premium) paid for protection, expressed in basis points. A higher spread indicates a higher risk of default.
Who are the “Protection Buyers”?
- Answer: Usually banks, mutual funds, or hedgers who want to limit their exposure to risky bonds.
Who are the “Protection Sellers”?
- Answer: Insurance companies or hedge funds that earn premium income in exchange for taking on the default risk.
What was the RBI’s 2022 reform for CDS?
- Answer: The RBI expanded the market by allowing Retail Users and non-resident Indians to participate in the CDS market for corporate bonds.
What is “Physical Settlement”?
- Answer: The buyer delivers the defaulted bond to the seller, and the seller pays the full face value of the bond.
What is “Cash Settlement”?
- Answer: The seller pays the buyer the difference between the bond’s face value and its current market value after default.

Mnemonic for the 10 Questions (B-O-N-D-S)

B: Banks are major participants.
O: Over-the-counter (OTC) traded.
N: Naked CDS (trading without owning the bond) is restricted for retail.
D: Default is the primary trigger.
S: Spreads reflect the risk levels.

Would you like to see a list of eligible debt instruments for CDS in India or the latest RBI guidelines for retail participation?

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17 sites

Credit event – WikipediaA credit event triggers a swap where oftentimes the borrower has to terminate the contract and accept a settlement instead of hono…Wikipedia
Credit Default Swap- Indian Economy NotesCredit Default Swap- Indian Economy Notes A credit default swap (CDS) is a financial derivative that allows one investor to “swap”Prepp
How RBI’s new credit derivatives framework deepens corporate …12 Feb 2026 — At the heart of the draft regime is a shift from a narrow set of credit default swaps — which allow one party to protect against o…BFSI News

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securitization

In Ramesh Singh’s

Indian Economy, Securitization is the process of pooling illiquid financial assets (like home loans or car loans) and converting them into marketable securities that can be sold to investors. It helps banks free up capital to lend more.

Key Concepts & Mnemonics

The Process (P-P-S): Pooling assets, Packaging them into bonds, and Selling them to investors.
Asset Type (I-M): Converting Illiquid assets into Mobile/Marketable ones.
The Entity (S-P-V): The Special Purpose Vehicle (the “middleman” box that holds the loans).

10 Questions & Answers

What is Securitization?
- Answer: The process of turning non-marketable assets (loans) into tradable financial instruments (securities).
What is an SPV?
- Answer: A Special Purpose Vehicle; a separate legal entity created specifically to hold the assets and issue securities to investors.
What are PTCs?
- Answer: Pass-Through Certificates; the actual securities issued to investors representing a claim on the underlying loan payments.
What is the main benefit for Banks?
- Answer: It provides liquidity by converting long-term loans (like a 20-year mortgage) into immediate cash.
What is SARFAESI Act, 2002?
- Answer: The primary legislation in India that provides the legal framework for securitization and reconstruction of financial assets.
Who are the typical investors in securitized paper?
- Answer: Institutional investors like Mutual Funds, Insurance Companies, and Banks.
What is “Credit Enhancement”?
- Answer: Techniques (like over-collateralization) used to improve the credit rating of the securities to make them safer for investors.
What is an ARC?
- Answer: An Asset Reconstruction Company; a specialized body that buys “bad loans” (NPAs) from banks through securitization to recover them.
What is the “Originator”?
- Answer: The original lender (e.g., a bank like SBI) that first gave the loan to the customer.
What is the risk involved?
- Answer: Prepayment risk (customers pay back early) and Default risk (customers stop paying their loans).

Mnemonic for the 10 Questions (L-O-A-N-S)

L: Liquidity for the bank.
O: Originator is the starting point.
A: ARCs handle the bad assets.
N: New securities (PTCs) are created.
S: SPV is the legal middleman.

Would you like to explore the difference between Securitization and Factoring or the latest RBI guidelines for ARCs?

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corporate bond

In Ramesh Singh’s

Indian Economy, Corporate Bonds are debt securities issued by private and public corporations to raise long-term capital for expansion, operations, or refinancing. Unlike equity, these bonds do not provide ownership but act as a loan from the investor to the company.

The Corporate Bond Market (2025–2026 Updates)

As of early 2026, the Indian corporate bond market is valued at approximately ₹53.6 Lakh Crore ($627 billion), constituting nearly 22.5% of the total Indian bond market.

Yield Trends: Following a series of rate cuts in 2025, the RBI repo rate stands at 5.25% in February 2026. Current high-grade bonds yield between 7.5% – 9.5%, while niche high-yield bonds offer up to 14.5% p.a..
Budget 2026 Reforms: The Union Budget 2026–27 introduced several measures to deepen the market:
- Market Making: A new framework to support institutions that continuously quote buy and sell prices.
- Bond Derivatives: Introduction of futures and options on corporate bond indices and Total Return Swaps (TRS).
- Municipal Bond Bonus: A ₹100 crore incentive for any single municipal bond issuance exceeding ₹1,000 crore to boost urban infrastructure.

10 Questions & Answers

What is a corporate bond?
- Answer: A debt instrument where an investor lends money to a company for a fixed period in exchange for regular interest (coupons) and principal repayment.
Who regulates the corporate bond market in India?
- Answer: The Securities and Exchange Board of India (SEBI).
What is the minimum investment for retail investors in 2026?
- Answer: Digital platforms have lowered entry barriers, with many bonds now accessible for as little as ₹1,000 to ₹10,000.
What are “Investment Grade” bonds?
- Answer: Bonds rated BBB- or higher (up to AAA) by agencies like CRISIL or ICRA, indicating lower default risk.
What is a “Callable Bond”?
- Answer: A bond that gives the issuer the right to buy it back (redeem it) before the maturity date, usually when interest rates fall.
How is interest income from corporate bonds taxed?
- Answer: Interest is fully taxable as per the individual’s income tax slab.
What is the new 2026 LTCG tax on secondary market bonds?
- Answer: Long-term capital gains (LTCG) on listed debt securities are now taxed at 12.5% without indexation benefits.
What is “Credit Enhancement”?
- Answer: Provisions (like bank guarantees) that improve a bond’s credit rating; SEBI now permits partial credit enhancement up to 50% of the issue size.
What is the difference between a bond and a debenture?
- Answer: In common Indian usage, bonds are usually backed by assets (secured), while debentures may be unsecured, though the terms are often used interchangeably.
What happens if a bond is not liquid?
- Answer: You may face liquidity risk, meaning you cannot easily sell the bond at a fair price before its maturity date.

Mnemonics for Retention (B-O-N-D-S)

B: Better returns than FDs and G-Secs.
O: Obligation (contractual debt, not ownership).
N: New derivatives (TRS and Index Futures) introduced in 2026.
D: Default risk monitored by credit ratings (AAA to D).
S: SEBI-regulated with T+3/T+1 settlement trends.

Would you like to explore how to buy corporate bonds on Online Bond Platforms or see a list of AAA-rated bonds currently available?

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16 sites

Corporate Bonds – Invest and Earn Up to 12%* Returns …What are Corporate Bonds? Corporate bonds are SEBI regulated fixed-income debt securities issued by Companies, State Entities, NBF…IndiaBonds·IndiaBonds0:48
List of Corporate Bonds in India 2026 – Wint WealthList of Corporate Bonds * Popular Bond Categories. Zero Coupon bonds. Tax-free bonds. REC bonds. Perpetual bonds. AT-1 bonds. Seni…Wint Wealth
Corporate Bonds India 2026: Yields, Risks & Best Picks1 Feb 2026 — Corporate Bonds in India: A Comprehensive 2026 Guide. Master the 2026 Indian Corporate Bond market. Discover high-yield 14.5% bond…Stashfin

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Inflation index bond

In Ramesh Singh’s

Indian Economy, Inflation-Indexed Bonds (IIBs) are defined as government securities designed to protect the “real” value of an investor’s principal and interest from being eroded by rising prices.

Key Concepts & Mnemonics

The Guard (P-I-P): Protects Interest and Principal.
The Goal (R-E-A-L): Returns Equal Actual Living costs (Positive real returns).
The Link (C-P-I): Constantly Protecting Investments using the Consumer Price Index.

10 Questions & Answers: Inflation-Indexed Bonds

What is the main objective of IIBs?
- Answer: To provide a hedge against inflation and preserve the purchasing power of savings.
How is interest calculated on an IIB?
- Answer: The fixed coupon rate is applied to the inflation-adjusted principal, not the original face value.
Which index is used for inflation adjustment in India in 2026?
- Answer: The Consumer Price Index (CPI), specifically the new 2024=100 base series.
Are IIBs currently available for new subscriptions in India?
- Answer: No, new issuances have been largely discontinued since 2014 due to low retail demand and complex structures, though outstanding bonds still trade.
What was the “Capital Indexed Bond” (CIB) of 1997?
- Answer: An earlier version that protected only the principal from inflation, not the interest payments.
Are IIBs tax-free in India?
- Answer: No, both interest income and capital gains are taxable according to the investor’s income tax slab.
What happens to IIBs during deflation (falling prices)?
- Answer: The principal may adjust downward, but the government typically provides a principal floor, guaranteeing the return of at least the original face value at maturity.
What is the minimum investment for retail investors in these bonds?
- Answer: Historically, the minimum investment was ₹5,000 for retail products like IINSS-C.
What is “Real Yield” in the context of IIBs?
- Answer: The fixed coupon rate offered above the inflation rate (e.g., a 1.5% fixed rate + CPI inflation).
Where can IIBs be traded?
- Answer: On the secondary market through stock exchanges (NSE/BSE) or the RBI’s E-Kuber platform.

Mnemonic for the 10 Questions (S-H-I-E-L-D)

S: Sovereign-backed (Safety).
H: Hedge against rising living costs.
I: Increased principal with inflation.
E: Electronic form (Demat).
L: Linked to CPI.
D: Deflation protection (Principal Floor).

Would you like to explore current alternatives for inflation protection in 2026, or more details on SEBI’s latest bond market reforms?

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18 sites

Inflation Indexed Bonds: Meaning, Features & Why DiscontinuedInflation Indexed Bonds. The Government of India introduced Inflation Indexed Bonds (IIBs) in 2013 to provide a hedge against infl…Paisabazaar
Inflation Indexed Bonds: Meaning, Types & Benefits1 Jul 2025 — Inflation Indexed Bonds. Inflation Indexed Bonds are government bonds that adjust their interest and principal based on inflation.Bajaj Finserv
What are Inflation Indexed Bonds & How Do They Work? – Axis Bank7 Aug 2024 — Inflation can significantly erode the purchasing power of your money, making it crucial to find investment options that protect ag…Axis Bank

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Gold exchanges traded fund

In Ramesh Singh’s

Indian Economy, Gold ETFs (Exchange Traded Funds) are described as passive investment instruments that track the domestic price of physical gold and are traded on stock exchanges like shares.

Key Concepts & Mnemonics

The 1-Gram Rule: 1 unit of a Gold ETF is typically equal to 1 gram of 99.5% pure gold.
Format (D-E-M-A-T): Digital, Easy to trade, Modern, Affordable, and Tax-efficient compared to physical gold.
Role (L-H-S): Liquidity (sell anytime), Hedge against inflation, and Safety (no storage theft).

10 Questions & Answers

What is a Gold ETF?
- Answer: An open-ended mutual fund scheme that invests in physical gold bullion and lists its units on a stock exchange.
How is the value of a Gold ETF determined?
- Answer: Its value moves in tandem with the market price of physical gold.
Do you need a special account to buy Gold ETFs?
- Answer: Yes, a Demat account and a trading account are mandatory.
What is the purity of the underlying gold in these ETFs?
- Answer: The gold must be of 99.5% purity (24-karat) or higher.
Is there any “making charge” or “GST” involved?
- Answer: No. Unlike physical jewellery, there are no making charges or GST on individual trades, though there are small management fees (expense ratios).
Can you take physical delivery of gold from an ETF?
- Answer: Generally, no. Most ETFs are cash-settled, though some allow physical delivery if you hold a very large quantity (e.g., 1kg).
What are the tax implications in 2026?
- Answer: Long-term capital gains (LTCG) on gold ETFs (held for >24 months) are taxed at 12.5% as per the 2024-25 Budget reforms.
Who regulates Gold ETFs in India?
- Answer: The Securities and Exchange Board of India (SEBI).
What is the “Expense Ratio”?
- Answer: The annual fee charged by the mutual fund house to manage the fund, typically ranging from 0.5% to 1%.
How do Gold ETFs differ from Sovereign Gold Bonds (SGB)?
- Answer: ETFs offer instant liquidity (sell today, get cash T+1), whereas SGBs have an 8-year tenure but pay 2.5% annual interest.

Mnemonics for the 10 Questions (P-U-R-E-S)

P: Paper/Electronic gold.
U: Units are equal to grams.
R: Regulated by SEBI.
E: Eliminates storage risk.
S: Stock exchange listed.

Would you like to compare Gold ETFs with the Sovereign Gold Bond (SGB) scheme or see a list of the top-performing Gold ETFs in Feb 2026?

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15 sites

What is Gold ETF Fund? Meaning & How to Invest5 Nov 2025 — Before proceeding, understanding the gold ETF meaning is crucial. A gold ETF is a type of mutual fund that monitors the price of r…PL Capital
Gold Trading: A Beginner’s GuideHow Gold ETFs Work Each unit of a Gold ETF represents one gram of gold with a purity of 99.5%. This gold is stored in the vaults o…XTB.com
Gold ETFs – Features, Advantages & How to invest in Gold ETF? – Online Demat, Trading, and Mutual Fund Investment in India – Fisdom25 Feb 2022 — What is the purity associated with each unit of Gold ETF? Each unit of Gold ETF is of 1 gram weight and of 99.5% purity.Fisdom

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e gold

In Ramesh Singh’s

Indian Economy, e-Gold was a unique investment product launched by the National Spot Exchange Limited (NSEL) that allowed investors to buy and sell gold in electronic form on a T+2 settlement basis.

The Concept (P-E-R)

P: Physical backing (Every unit was backed by real gold in a vault).
E: Electronic trading (Traded like a stock on the NSEL platform).
R: Redemption (Unlike most ETFs, investors could easily opt for physical delivery of coins/bars).

10 Questions & Answers

What was e-Gold?
- Answer: A product that allowed investors to buy gold in small denominations (1 unit = 1 gram) in a demat account.
Which exchange launched e-Gold?
- Answer: The National Spot Exchange Limited (NSEL) in 2010.
How did it differ from Gold ETFs?
- Answer: In e-Gold, the investor owned the gold; in ETFs, the Mutual Fund owns it. e-Gold also allowed easier physical delivery.
Was it regulated by SEBI?
- Answer: No, it was originally under the Forward Markets Commission (FMC).
What happened to e-Gold in 2013?
- Answer: Trading was suspended following the NSEL payment crisis (scam) and a government crackdown on “paired contracts.”
Can you buy e-Gold today?
- Answer: No, it is a defunct product. Investors have since been asked to convert their holdings or take delivery.
What replaced e-Gold for modern investors?
- Answer: Digital Gold (offered by platforms like MMTC-PAMP) and Sovereign Gold Bonds (SGB).
What was the “Storage Charge”?
- Answer: A small monthly fee charged to the investor for keeping the physical gold in the NSEL vault.
Was GST applicable on e-Gold?
- Answer: At the time of its existence, VAT was applicable if the investor took physical delivery.
Is “Digital Gold” the same as e-Gold?
- Answer: They are similar in concept, but Digital Gold is sold by private companies/refineries and is currently not regulated by SEBI or RBI.

Mnemonics for Retention (G-O-N-E)

G: Gram-based units (1 unit = 1 gram).
O: Ownership of physical gold.
N: NSEL was the provider.
E: Ended in 2013 due to the NSEL scam.

Current Alternatives (2026)

Since e-Gold is no longer available, most Ramesh Singh readers now focus on the RBI’s Sovereign Gold Bond Scheme which offers 2.5% annual interest on top of gold price appreciation.

Would you like to compare Digital Gold (App-based) with Gold ETFs (Stock-market based) regarding regulatory safety?

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Cpse etf

Quick results from the web:

CPSE ETF Share Price, Stock Price, LIVE NSE/BSE – Groww

The scheme seeks to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the CPSE Index, by investing in the Securities which are constituents of the CPSE Index in the same proportion as in the index.

Groww·https://groww.in

CPSE ETF (INF457M01133) – NSE

CPSE ETF Live NSE Share Price: Get the latest CPSE ETF news, company updates, quotes, offers, annual financial reports, graph, volumes, 52 week high low, buy sell tips, balance sheet, historical charts, market performance, capitalisation, dividends, volume, profit and loss account, research, results and more …

NSE India·https://www.nseindia.com

In Ramesh Singh’s Indian Economy, the CPSE ETF (Central Public Sector Enterprises Exchange Traded Fund) is described as a strategic investment vehicle launched by the Government of India to facilitate its disinvestment program. It allows the government to sell its stakes in major public sector units (PSUs) while giving retail investors a diversified way to own shares in India’s “Maharatna” and “Navaratna” companies.

Key Concepts & Mnemonics

The Goal (D-I-V-E-S-T): Disinvestment Initiative via Varied Equity Sector Tracking.
The Index (N-I-F-T-Y): Tracks the Nifty CPSE Index, replicating its performance.
The Nature (P-A-S-S-I-V-E): A passive fund with low expense ratios (approx. 0.07%).

CPSE ETF Snapshot (February 2026)

The fund currently manages assets for millions of retail and institutional investors, focusing heavily on energy, power, and capital goods.

Current NAV: The Net Asset Value (NAV) as of February 11, 2026, is ₹100.49.
AUM: Assets Under Management stood at approximately ₹27,875 crore as of January 31, 2026.
Expense Ratio: Remains one of the lowest in the industry at 0.07%.

10 Questions & Answers

What is the CPSE ETF?
- Answer: An open-ended index scheme that tracks and replicates the Nifty CPSE Index.
When was it launched?
- Answer: On March 28, 2014.
Which companies are its top holdings?
- Answer: As of early 2026, top holdings include Bharat Electronics (20.89%), NTPC (20.36%), and Power Grid (16.59%).
What are the trailing returns?
- Answer: 3-year trailing returns are approximately 34.78%, while 5-year returns are 33.82%.
What is the minimum investment?
- Answer: For lump sum investments, the minimum is ₹5,000.
Who manages the CPSE ETF?
- Answer: It is currently managed by Nippon India Mutual Fund.
Is there an exit load?
- Answer: No, this fund typically does not attract any exit load.
What is the “FFO” in CPSE ETF?
- Answer: Further Fund Offer; a mechanism where the government releases additional tranches of the ETF to the public.
Which sectors dominate the portfolio?
- Answer: The portfolio is concentrated in Energy (61.32%) and Capital Goods (22.9%).
How do investors buy units?
- Answer: Units can be bought and sold on the NSE and BSE like ordinary stocks using a Demat account.

Mnemonic for the 10 Questions (C-P-S-E-S)

C: Cost-effective (low 0.07% expense ratio).
P: Passive management style.
S: Single unit for 10-11 PSU giants.
E: Energy-heavy portfolio.
S: SEBI-regulated with daily liquidity.

Would you like to see a comparison between CPSE ETF and the more diversified Bharat 22 ETF or a list of upcoming FFO dates for 2026?

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16 sites

CPSE ETF – HDFC SecuritiesUpcoming CPSE ETF FFO 6 * Another Opportunity to Invest in10 Ratnas of Government of India at 3% discount*! * Play on India growth…HDFC Securities
CPSE ETF: Latest NAV, Holdings, Performance – ET Money11 Feb 2026 — Asset allocation as on Jan 31, 2026. Equity99.97% Debt0.0% Other0.03% Large Cap 87.05% Mid Cap 10.25% Small Cap 2.67% Other Cap 0%ET Money
CPSE ETF-Growth (₹ 100.61) – NAV, Reviews & asset …1. Current NAV: The Current Net Asset Value of the CPSE ETF as of Feb 12, 2026 is Rs 100.61 for Growth option of its Regular plan.The Economic Times

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pension sector reform

In Ramesh Singh’s

Indian Economy, Pension Sector Reforms represent a critical shift from unfunded, “pay-as-you-go” defined-benefit models to fiscally sustainable, market-linked contributory frameworks. The latest reforms in 2025 and 2026 focus on enhancing flexibility, ensuring payout predictability, and expanding coverage to the informal sector.

Key Concepts & Mnemonics

The Switch (O-N-U): OPS (Old/Defined Benefit) NPS (New/Contributory) UPS (Unified/Hybrid).
PFRDA Role (P-D-R): Promote, Develop, and Regulate the pension sector.
NPS Flexibility (80-20): Now allow up to 80% lump-sum withdrawal and only 20% mandatory annuity for non-government subscribers.

10 Questions & Answers: Pension Reforms

What is the Unified Pension Scheme (UPS)?
- Answer: A hybrid model effective April 1, 2025, for Central Government employees that combines the guaranteed pension of the Old Pension Scheme (OPS) with the contributory nature of the NPS.
What is the “Assured Pension” under UPS?
- Answer: Retirees with 25+ years of service receive 50% of their average basic pay from the last 12 months of service.
What is the new maximum age for contributing to NPS?
- Answer: Increased from 75 to 85 years in December 2025 to reflect longer life expectancies.
How has the lump-sum withdrawal limit for NPS changed in 2025?
- Answer: For a corpus up to ₹8 lakh, 100% can be withdrawn as a lump sum (up from ₹5 lakh). For corpuses >₹12 lakh, up to 80% can be taken as a lump sum.
What is the “Atal Pension Yojana” (APY) extension?
- Answer: In January 2026, the Cabinet approved the continuation of APY up to

Mnemonic for the 10 Questions (R-E-F-O-R-M)

R: Retirement age for NPS now 85.
E:

17 sites

National Pension System Reforms 2025 – PMF IAS19 Dec 2025 — National Pension System Reforms, 2025 * The Pension Fund Regulatory and Development Authority (PFRDA) notified the NPS (Exits and …PMF IAS
NPS Withdrawal Rules 2025: Major NPS Changes & New RulesUnderstanding the New NPS Withdrawal and Exit Rules. Imagine a retirement plan that doesn’t just lock your money away but grows wi…Protean
Unified Pension Scheme (UPS) – PFRDA23 Jan 2026 — About. The Unified Pension Scheme (UPS) is a pension scheme introduced by the Government of India, effective 1st April 2025, as an…PFRDA

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FSDC

The Financial Stability and Development Council (FSDC) is an apex-level, non-statutory body established by the Government of India in December 2010 based on the recommendations of the Raghuram Rajan Committee (2008)

. Its purpose is to strengthen mechanisms for maintaining financial stability and enhancing inter-regulatory coordination.

Key Concepts

Goal: Stability, Inter-regulatory coordination, and Development of the financial sector.
Chair: Headed by the Finance Minister.
Sub-Committee: Headed by the Reserve Bank of India Governor.
Nature: Non-Statutory Body, established by executive order.

Key Information in Q&A Format

Chairperson: The Union Finance Minister.
Statutory Status: Non-statutory.
Head of Sub-Committee: Governor of the Reserve Bank of India.
Major Focus (2025-26): Strengthening cyber resilience framework and financial sector cybersecurity strategy.
Recent Initiative: Implementing a standardized and simplified KYC process.
Budget: No separate funds are allocated.
Proposing Committee: Raghuram Rajan Committee (2008).
Macroprudential Supervision: Monitoring overall economic health and large financial conglomerates.
International Coordination: Coordinates with FATF and FSB.
Primary Members: Heads of regulators (RBI, SEBI, IRDAI, PFRDA, IBBI, IFSCA) and senior Ministry of Finance officials.

Mnemonic for Key Functions (C-O-U-N-C-I-L)

C: Chairman is the Finance Minister.
O: Official coordination of regulators.
U: Unclaimed assets drive.
N: Non-statutory status.
C: Cybersecurity and Compliance burden reduction.
I: International interface.
L: Literacy and Liquidity monitoring.

Would you like to explore recent FSDC decisions on digital lending apps or the latest KYC reforms proposed in the 2026 Budget?

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12 sites

Financial Stability and Development Councul (FSDC) – PIBThe Council is chaired by the Union Finance Minister and its members are Governor, Reserve Bank of India; Finance Secretary and/or…PIB
Financial Stability and Development Council (FSDC)9 May 2023 — Financial Stability and Development Council (FSDC) FSDC is an apex-level forum constituted by the Government of India in December …Vajiram & Ravi
Financial Stability and Development Council (FSDC) – IAS Gyan12 Feb 2026 — About Financial Stability and Development Council (FSDC) * Financial Stability and Development Council (FSDC) is an apex-level bod…IAS Gyan

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FSAP

In Ramesh Singh’s

Indian Economy, the Financial Sector Assessment Program (FSAP) is a comprehensive, in-depth evaluation of a country’s financial sector jointly conducted by the International Monetary Fund (IMF) and the World Bank.

Key Concepts & Mnemonics

Dual Focus (S-D): Stability (assessed by IMF) and Development (assessed by World Bank).
Frequency (F-5): Mandatory for “systemically important” jurisdictions like India every 5 years.
Outputs (F-F): Leads to the Financial System Stability Assessment (FSSA) by the IMF and the Financial Sector Assessment (FSA) by the World Bank.

10 Questions & Answers: FSAP India (2025-26)

When was India’s latest FSAP completed?
- Answer: The assessment was carried out during 2024, with the IMF’s FSSA released in February 2025 and the World Bank’s FSA in October 2025.
What is the core purpose of an FSAP?
- Answer: To help countries gauge the stability of their financial system and identify development priorities to minimise the severity of financial crises.
How has India’s financial system changed since the last FSAP (2017)?
- Answer: It has become more resilient, diversified, and inclusive, with total assets rising to 187% of GDP in 2025 (up from 144% in 2017).
What specific “Digital Strength” did the 2025 report highlight?
- Answer: India’s Digital Public Infrastructure (UPI, Aadhaar, and Jan Dhan) was praised as a global benchmark for financial access.
Which regulatory reform for NBFCs was specifically welcomed?
- Answer: The introduction of Scale-Based Regulation (SBR) for Non-Banking Financial Companies.
What is the “USD 30 Trillion” link?
- Answer: The FSAP warns that India needs further impetus in private capital mobilisation to reach its goal of a $30 trillion economy by 2047.
What emerging risks did the 2025 assessment identify?
- Answer: Cybersecurity, climate change, and system-wide contagion.
What new “Macroprudential Tool” was recommended for India?
- Answer: Introducing Debt Service to Income (DSTI) limits across banks and NBFCs to manage household credit risks.
What did the FSDC propose based on FSAP 2024-25 recommendations?
- Answer: A financial sector-specific cybersecurity strategy to strengthen the cyber resilience framework.
How many jurisdictions are currently mandated for regular FSAPs?
- Answer: 32 systemically important jurisdictions, including India, are mandated for assessments every five years.

Mnemonic for Retention (G-U-A-R-D)

G: Growth support via financial development.
U: Understanding vulnerabilities (Stress Tests).
A: Assessment by IMF and World Bank.
R: Resilience tracking (Resilience has improved to 187% of GDP).
D: Digital infrastructure as a major strength.

Would you like to explore the specific policy recommendations for NBFCs from the 2025 report or the World Bank’s FSA highlights for 2026?

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14 sites

Financial Sector Assessment Program (FSAP)What is an FSAP? The Financial Sector Assessment Program (FSAP) provides a comprehensive, in-depth analysis of the resilience of a…International Monetary Fund | IMF
India: Financial Sector Assessment Program 2017 – SEBI21 Dec 2017 — The Financial Sector Assessment Program (FSAP), a joint program of the International Monetary Fund (IMF) and the World Bank (WB in…SEBI
Government of India – Department of Economic Affairs30 Oct 2025 — India: Financial Sector Assessment Program, 2024. The Financial Sector Assessment Program (FSAP), a joint program of the Internati…Department of Economic Affairs

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FATF

In Ramesh Singh’s

Indian Economy, the Financial Action Task Force (FATF) is an intergovernmental body established in 1989 to set global standards for combating money laundering (AML), terrorist financing (CFT), and the financing of proliferation of weapons of mass destruction.

Key Concepts & Mnemonics

The Watchdog (M-T-P): Combats Money laundering, Terrorist financing, and Proliferation financing.
Recommendations (40): The foundational “40 Recommendations” serve as the international benchmark for financial integrity.
Mandate (Open-Ended): Since 2019, its mandate has been open-ended rather than time-bound.

10 Questions & Answers: FATF Update (Feb 2026)

What is India’s current status in the FATF?
- Answer: India is a full member (since 2010) and was placed in the “regular follow-up” category in 2024—a top-tier distinction shared by only four other G20 nations.
Which countries were added to the “Grey List” in February 2026?
- Answer: Kuwait and Papua New Guinea were added to the list of jurisdictions under increased monitoring during the February 2026 Plenary.
Which countries are on the “Black List” as of February 14, 2026?
- Answer: North Korea (DPRK), Iran, and Myanmar remain high-risk jurisdictions subject to a call for action.
Who is the incoming President of the FATF?
- Answer: Mr Giles Thomson of the United Kingdom was appointed to take over on July 1, 2026, following the term of Ms Elisa de Anda Madrazo.
What is “Regular Follow-up” vs. “Enhanced Follow-up”?
- Answer: Regular follow-up means the country has met most standards and reports every few years; Enhanced follow-up requires more frequent reporting due to deficiencies.
What major reports were released in late 2025?
- Answer: Key reports included a Comprehensive Update on Terrorist Financing Risks (July 2025) and a paper on Cyber-enabled Fraud (October 2025).
What are the consequences of being “Grey Listed”?
- Answer: Reputational damage, increased international scrutiny, and potential restrictions on cross-border financial transactions.
How many members does the FATF have?
- Answer: 39 members, comprising 37 jurisdictions (including the US, UK, China, and India) and two regional organisations (EU and GCC).
What is the “JAM Trinity” link to FATF?
- Answer: The FATF lauded India for using Jan Dhan-Aadhaar-Mobile to transition to a digital economy, which significantly reduced money laundering risks.
Where was the February 2026 Plenary held?
- Answer: The Plenary meetings took place in Mexico City from February 11–13, 2026.

Mnemonic for the 10 Questions (G-L-O-B-A-L)

G: Grey List added Kuwait and Papua New Guinea.
L: Lists (Black and Grey) impact global financial access.
O: Outstanding outcome for India in its latest review.
B: Blacklist includes Iran, Myanmar, and North Korea.
A: Anonymous crypto trades are targeted by new VASP guidelines.
L: Leadership transition to Giles Thomson (UK) in July 2026.

Would you like to explore the specific FATF recommendations for virtual assets or the latest outcomes regarding beneficial ownership transparency?

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17 sites

FATF* FATF-African Development Bank webinar. Exiting the FATF Grey List – Success Stories and Pathways to Sustainable Compliance. * As…FATF
What Is FATF? Role in Global AML Standards – Glossary – LSEGWhat Is the Financial Action Task Force (FATF)? The Financial Action Task Force (FATF) is an intergovernmental organisation design…LSEG
FATF Explained – Global NPO Coalition on FATFFATF Explained * Membership. The FATF has 39 members, including two regional organizations (the Gulf Cooperation Council and the E…Global NPO Coalition on FATF

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REIT

In Ramesh Singh’s

Indian Economy, Real Estate Investment Trusts (REITs) are described as pooled investment vehicles—similar to mutual funds—that allow investors to gain exposure to income-generating real estate without owning physical property.

Key Concepts & Mnemonics

The Structure (S-M-T): A Sponsor (promoter), a Manager (operations), and a Trustee (holds assets for investors).
The Rule (90-80): REITs must distribute at least 90% of net distributable cash flows and invest 80% in completed, income-yielding assets.
The Reclassification (E-Q): As of January 1, 2026, SEBI has reclassified REITs as Equity-related instruments (previously hybrid).

10 Questions & Answers: REITs in India (2026)

How many listed REITs are currently in India?
- Answer: There are five publicly listed REITs as of early 2026: Embassy Office Parks, Mindspace Business Parks, Brookfield India, Nexus Select (retail-focused), and the newly listed Knowledge Realty Trust.
What are “SM REITs”?
- Answer: Small and Medium REITs, introduced in 2024 to regulate fractional ownership platforms for properties valued between ₹50 crore and ₹500 crore.
What is the minimum investment for an SM REIT?
- Answer: The minimum investment for SM REIT schemes is ₹10 lakh, compared to smaller ticket sizes for traditional listed REITs.
Can banks lend money to REITs?
- Answer: Yes, under RBI draft norms from February 2026, banks can lend to listed REITs with at least 3 years of operations, capped at 49% of the REIT’s asset value.
What is the “Equity Status” reform?
- Answer: From January 2026, mutual fund investments in REITs are treated as equity investments, allowing their inclusion in equity indices after July 1, 2026.
Who is the primary regulator of REITs in India?
- Answer: The Securities and Exchange Board of India (SEBI).
What is the “Maharatna” link in Budget 2026?
- Answer: The government proposed setting up dedicated REITs for Central Public Sector Enterprises (CPSEs) to accelerate the “recycling” of their real estate assets.
Do REITs pay dividends monthly?
- Answer: While regulations require distribution, most Indian REITs pay on a quarterly basis.
What is the taxation rule for REIT distributions?
- Answer: Income is generally treated as ordinary income; however, SEBI’s 2026 reclassification aims to provide more tax clarity for equity schemes holding REIT units.
What is the average distribution for Indian REITs?
- Answer: In Q2 FY26 alone, the five listed REITs distributed over ₹2,331 crore to approximately 3.3 lakh unitholders.

Mnemonic for Retention (L-I-S-T-S)

L: Liquidity (Traded on NSE/BSE like stocks).
I: Income (90% profit must be distributed).
S: SM REITs (Regulated fractional ownership).
T: Transparency (Mandatory SEBI filings and audited reports).
S: Six-month buffer (For inclusion in equity indices after July 2026).

Would you like to see a comparison of current dividend yields for the five listed REITs or more on the RBI lending norms?

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17 sites

Understanding REITs – National Institute of Securities Markets …What are REITs? Real Estate Investment Trusts (REITs) are pooled investment vehicles like mutual funds. However, the REITs, as the…National Institute of Securities Markets | NISM
Understanding REITs and INVITs – SEBI InvestorUnderstanding REITs and INVITs. … REITs (Real Estate Investment Trusts) and INVITs (Infrastructure Investment Trusts) are invest…Securities and Exchange Board of India
What is REIT – REIT Full Form, Advantages and Its TypesWhat is REIT? REIT stands for Real Estate Investment Trust and it is a company that owns or finances income-generating real estate…Bajaj Finserv

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invit

In Ramesh Singh’s

Indian Economy, Infrastructure Investment Trusts (InvITs) are described as pooled investment vehicles designed to facilitate investment in the infrastructure sector. They function like mutual funds but specifically for assets like highways, power transmission lines, and pipelines.

Key Concepts & Mnemonics

The Structure (S-M-T): A Sponsor (sets it up), a Manager (runs the assets), and a Trustee (monitors compliance).
The Goal (Y-I-E-L-D): Yield-generating Infrastructure Equity Linked Distribution.
Distribution Rule (90%): InvITs must distribute at least 90% of their net cash flows to unitholders.

10 Questions & Answers: InvITs in India (2026)

What is an InvIT?
- Answer: A collective investment scheme that allows individual and institutional investors to invest in infrastructure projects and earn a portion of the income (tolls, fees) as dividends.
How many InvITs are currently registered in India?
- Answer: As of early 2026, there are over 24 registered InvITs, with many being privately placed and others publicly listed on the NSE and BSE.
What is the minimum investment for a publicly listed InvIT?
- Answer: To encourage retail participation, SEBI has reduced the trading lot size to 1 unit, making it as accessible as buying a single share (approx. ₹100–₹500).
What major reform happened for InvITs in January 2026?
- Answer: SEBI officially reclassified InvITs as equity-related instruments (previously hybrid). This allows them to be included in major equity indices like the Nifty 50 after July 1, 2026.
What is the “NHAI InvIT”?
- Answer: A massive government-backed InvIT by the National Highways Authority of India used to monetise completed highway stretches.
Can banks lend to InvITs in 2026?
- Answer: Yes, under RBI draft guidelines (Feb 2026), banks are now permitted to provide credit facilities to listed InvITs for brownfield expansion and debt refinancing.
What is the difference between a REIT and an InvIT?
- Answer: REITs invest in commercial real estate (offices/malls), while InvITs invest in infrastructure (roads/power/telecom).
How is the income from InvITs taxed?
- Answer: Dividends are generally tax-free in the hands of investors if the SPV has not opted for a special tax regime; interest income is taxed at the individual’s slab rate.
What is the “Lock-in Period” for sponsors?
- Answer: Sponsors must hold at least 15% of the total units for a minimum of 3 years from the date of listing.
What is the “National Monetisation Pipeline” (NMP) link?
- Answer: InvITs are the primary vehicle for the NMP to achieve the government’s target of recycling ₹6 lakh crore worth of core infrastructure assets.

Mnemonic for Retention (I-N-F-R-A)

I: Income-generating (90% payout).
N: New classification as Equity (from Jan 2026).
F: Fast-track monetization of public assets (NMP).
R: Regulated by SEBI.
A: Asset-heavy (invests in roads, power, and ports).

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