BONDS
 It is a fixed income (debt) instrument issued
for a period of more than one year with the
purpose of raising capit...
 In the Indian securities markets, the term
‘debenture’ is used for debt instruments
issued by the Central and State
gove...
TYPES OF BONDS
Zero Coupon Bond
 Bond issued at a discount and repaid at a face
value.
 No periodic interest is paid.
 ...
CONVERTIBLE BOND
 A bond giving the investor the option to
convert the bond into equity at a fixed
conversion price.
BOND...
TREASURY BILLS
 Short-term (up to one year) bearer discount
security issued by government as a means of
financing their c...
MUTUAL FUNDS IN INDIA
 The first introduction of a mutual fund in India
occurred in 1963, when the Government of
India la...
BOND
7
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
MUTUAL FUNDS
 Collective investment
 Pools money from many investors
 Invests it in stocks, bonds, short-term money
mar...
MUTUAL FUNDS : STRUCTURE IN INDIA
 3-tier structure
 First tier- Sponsor, who thinks of starting a
mutual fund.
 The Sp...
 Second tier- Once SEBI is convinced, the
sponsor creates a Public Trust as per the
Indian Trusts Act, 1882.
 Once the T...
 Third tier-Trustees appoint the Asset
Management Company (AMC), to manage
investor’s money.
BOND
11
YOGESH NAMDEO INGLE....
BOND
12
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
BOND
13
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
BOND
14
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
 The AMC’s Board of Directors must have at
least 50% of Directors who are independent
directors.
 It is the AMC, which i...
 After getting SEBI approval it becomes the
offer document of the scheme.
 This certificate says that all the informatio...
CUSTODIAN
 A custodian’s role is safe keeping of physical
securities and also keeping a tab on the
corporate actions like...
AMC
 Manage investor’s money on a day to day
basis.
 All activities by the AMC are done under the
name of the Trust, i.e...
BOND
19
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
BOND
20
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
BOND
21
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
HELP YOURSELF
BOND
22
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
BOND
23
YOGESH NAMDEO INGLE. MBA (FINANCE),
NET (MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
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Bond

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Bond

  1. 1. BONDS  It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital.  The central or state government, corporations and similar institutions sell bonds.  A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date, called the Maturity Date BOND 1 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  2. 2.  In the Indian securities markets, the term ‘debenture’ is used for debt instruments issued by the Central and State governments and public sector organizations and the term ‘bond’ is used for instruments issued by private corporate sector. BOND 2 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  3. 3. TYPES OF BONDS Zero Coupon Bond  Bond issued at a discount and repaid at a face value.  No periodic interest is paid.  The buyer of these bonds receives only one payment, at the maturity of the bond. BOND 3 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  4. 4. CONVERTIBLE BOND  A bond giving the investor the option to convert the bond into equity at a fixed conversion price. BOND 4 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  5. 5. TREASURY BILLS  Short-term (up to one year) bearer discount security issued by government as a means of financing their cash requirements. BOND 5 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  6. 6. MUTUAL FUNDS IN INDIA  The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).  Market was made open to private players in 1993.  The first private sector fund to operate in India was Kothari Pioneer, which later merged with Franklin Templeton BOND 6 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  7. 7. BOND 7 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  8. 8. MUTUAL FUNDS  Collective investment  Pools money from many investors  Invests it in stocks, bonds, short-term money market instruments and other securities.  Fund manager BOND 8 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  9. 9. MUTUAL FUNDS : STRUCTURE IN INDIA  3-tier structure  First tier- Sponsor, who thinks of starting a mutual fund.  The Sponsor approaches the Securities & Exchange Board of India (SEBI), which is the market regulator and also the regulator for mutual funds. BOND 9 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  10. 10.  Second tier- Once SEBI is convinced, the sponsor creates a Public Trust as per the Indian Trusts Act, 1882.  Once the Trust is created, it is registered with SEBI after which this trust is known as the mutual fund. BOND 10 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  11. 11.  Third tier-Trustees appoint the Asset Management Company (AMC), to manage investor’s money. BOND 11 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  12. 12. BOND 12 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  13. 13. BOND 13 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  14. 14. BOND 14 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  15. 15.  The AMC’s Board of Directors must have at least 50% of Directors who are independent directors.  It is the AMC, which in the name of the Trust, floats new schemes and manage these schemes by buying and selling securities.  Whenever the fund intends to launch a new scheme, the AMC has to submit a Draft Offer Document to SEBI. BOND 15 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  16. 16.  After getting SEBI approval it becomes the offer document of the scheme.  This certificate says that all the information Provided inside the OD is true and correct.  A compliance Officer is one of the most important persons in the AMC. BOND 16 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  17. 17. CUSTODIAN  A custodian’s role is safe keeping of physical securities and also keeping a tab on the corporate actions like rights, bonus and dividends declared by the companies in which the fund has invested.  Custodian is appointed by the Board of Trustees.  Only the physical securities are held by the Custodian. BOND 17 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  18. 18. AMC  Manage investor’s money on a day to day basis.  All activities by the AMC are done under the name of the Trust, i.e. the mutual fund.  The AMC charges a fee for providing its services.  The fee is charged as a percentage of the scheme’s net assets. BOND 18 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  19. 19. BOND 19 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  20. 20. BOND 20 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  21. 21. BOND 21 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  22. 22. HELP YOURSELF BOND 22 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.
  23. 23. BOND 23 YOGESH NAMDEO INGLE. MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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