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Inside
1.Asset Classes
Equity Shares
Debt Instruments Funds 2.Money Laundering
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Asset Classes
FINANCIAL MARKET
EQUITY
DEBT
Lending (Interest)
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Equity
What is a Share?
A share is a claim of ownership in a firm in proportion to the amount of money invested and is freely tradable at exchanges after listing. A firms capital is divided into smaller denominations called equity shares. Ex: Capital is divided by the denomination of Rs.10 & has separate face value When you buy a share it has a claim on the firms assets and income & you Become one of the several owners in proportion to the number of shares bought.
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Dividends
Part of company profit paid to equity holders
Capital appreciation
A rise in the value of an asset based on a rise in market price.
Bonus shares
Payment of dividend in the form of stock rather than cash.
Rights issue
Issuing rights to existing share holders to buy the shares at discount price
Liquidity
Can be easily sold through Stock exchanges
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Market Types
Primary Market
When a security is purchased directly from the issuer, it is called primary market. When any entity makes available its newly issued securities in the market is called IPO.
Secondary Market
The Stock exchange is called Secondary market.
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Debt Instruments
Fixed income Securities Pay regular income(fixed interest) decided at the beginning of transaction & principal repaid at the end of term. Issued by Government and Corporate Long term or short term Examples of Debt are,
Govt Securities, Treasury Bills, Oil Bonds, Food Bonds, Fertilizer Bonds, issued by GOI State Development Loans by State Government Non Convertible Debentures(NCDs) Corporate, Financial Institutions, estd by State & Central Govts.
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Funds
Investors
Paid back Invest money through
Returns
Fund Managers
Generate
Invest in
Securities
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Funds
Balanced
R I S K
Debt
RETURNS
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ELSS
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15%
13% 12%
7%
Inflation
Gold
Silver
SENSEX
GOI Bonds
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Layering
(Laundering the dirty funds by large volume of transaction, diff currencies & jurisdictions)
Integration
(Using layered funds purchasing the legitimate assets)
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In India AML measures are controlled by The Prevention of Money Laundering Act 2002. RBI, SEBI, IRDA has been under the provisions of PML Act. PML applicable to all financial institutions, banks, insurance co, mutual funds & brokers.
Agency monitoring AML activities in india is called Financial Intelligence Unit (FIU IND)
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The PML Act, 2002 provides whosoever directly or indirectly attempts to indulge or knowingly assists or Knowingly is a party or is actually involved in the process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of money laundering Under the Act, the offences will be punished with rigorous imprisonment for a Term from 3 to 7 years and a fine upto Rs.5 lac
*KYC is the solution to avoid suspicious transactions
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?
Any Questions
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Thank You
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