The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881. It defines negotiable instruments as documents that allow the transfer of rights from one person to another. The Act recognizes promissory notes, bills of exchange, and cheques as negotiable instruments. It outlines essential characteristics like being freely transferable and certain presumptions that apply. The document also explains key parties and elements of promissory notes, bills of exchange, and cheques.
Treasury bills are short-term promissory notes issued by the government to meet temporary budget deficits. They are issued for periods of less than one year. Treasury bills are considered very safe investments as they are backed by the government and have high liquidity. There are two types: ordinary treasury bills that are issued publicly and ad hoc bills issued only to the Reserve Bank of India. Treasury bills play an important role in money market operations by providing short-term investments for banks and other financial institutions to manage their funds and meet regulatory requirements like statutory liquidity ratios.
The document summarizes securities markets and related concepts. It discusses that securities markets allow securities like stocks and bonds to be traded based on supply and demand. It then describes different segments of the securities market like the capital market, which deals in long-term securities, and the secondary market, where already issued securities are traded. Key stock exchanges in India are also outlined, including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The roles of trading, settlement, and regulatory bodies like SEBI are also summarized at a high level.
This document summarizes information about financial derivatives, with a focus on options. It defines key terms like forwards, futures, swaps, and provides details on call and put options. It explains how options work, including factors that influence pricing and examples of trading options on exchanges. The document also discusses an example where some option traders profited from their positions before an announcement that News Corp was offering to buy Dow Jones & Co. for $60 per share, sending the stock price up 50%. It concludes with some option strategies and examples of financial engineering techniques.
This document provides an overview of different types of financial instruments, including capital market instruments and money market instruments. It discusses equity shares, preference shares, debentures, bonds, and derivative instruments as capital market instruments. It also covers treasury bills, certificates of deposits, commercial papers, repurchase agreements, and banker's acceptances as money market instruments. Key features and classifications of each instrument are described.
The document discusses the Indian stock market, including its history and regulatory framework. It provides details on key stock exchanges like BSE and NSE, governing bodies that regulate exchanges, and SEBI's objectives and functions in regulating the market. It also covers concepts like listing of securities, derivatives trading, and types of derivative contracts like futures, options, and swaps.
Commercial paper is a short-term, unsecured promissory note issued by large, financially strong companies to fulfill short-term credit needs. It is considered a money market instrument that large banks, corporations, and foreign governments commonly use to finance operations. There are two types of commercial paper: direct paper issued directly by finance companies and dealer paper issued by security dealers on behalf of corporate clients.
Secondary Market, Primary Vs Secondary, Stock Exchanges, Listing of Securities, Trading Systems in Stock exchanges, Qualifications of Listing,Delisting, Orders, types of Orders,
The document provides an overview of the Indian financial system, including its key components and institutions. It discusses the major financial markets in India - the money market, capital market, foreign exchange market, and credit market. It also examines the role of various financial intermediaries that operate in these markets, such as investment bankers, stock exchanges, and primary dealers. Additionally, the document outlines the functions of important financial sector regulators like the Reserve Bank of India and its departments that are responsible for banking and non-banking supervision.
Treasury bills are short-term promissory notes issued by the government to meet temporary budget deficits. They are issued for periods of less than one year. Treasury bills are considered very safe investments as they are backed by the government and have high liquidity. There are two types: ordinary treasury bills that are issued publicly and ad hoc bills issued only to the Reserve Bank of India. Treasury bills play an important role in money market operations by providing short-term investments for banks and other financial institutions to manage their funds and meet regulatory requirements like statutory liquidity ratios.
The document summarizes securities markets and related concepts. It discusses that securities markets allow securities like stocks and bonds to be traded based on supply and demand. It then describes different segments of the securities market like the capital market, which deals in long-term securities, and the secondary market, where already issued securities are traded. Key stock exchanges in India are also outlined, including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The roles of trading, settlement, and regulatory bodies like SEBI are also summarized at a high level.
This document summarizes information about financial derivatives, with a focus on options. It defines key terms like forwards, futures, swaps, and provides details on call and put options. It explains how options work, including factors that influence pricing and examples of trading options on exchanges. The document also discusses an example where some option traders profited from their positions before an announcement that News Corp was offering to buy Dow Jones & Co. for $60 per share, sending the stock price up 50%. It concludes with some option strategies and examples of financial engineering techniques.
This document provides an overview of different types of financial instruments, including capital market instruments and money market instruments. It discusses equity shares, preference shares, debentures, bonds, and derivative instruments as capital market instruments. It also covers treasury bills, certificates of deposits, commercial papers, repurchase agreements, and banker's acceptances as money market instruments. Key features and classifications of each instrument are described.
The document discusses the Indian stock market, including its history and regulatory framework. It provides details on key stock exchanges like BSE and NSE, governing bodies that regulate exchanges, and SEBI's objectives and functions in regulating the market. It also covers concepts like listing of securities, derivatives trading, and types of derivative contracts like futures, options, and swaps.
Commercial paper is a short-term, unsecured promissory note issued by large, financially strong companies to fulfill short-term credit needs. It is considered a money market instrument that large banks, corporations, and foreign governments commonly use to finance operations. There are two types of commercial paper: direct paper issued directly by finance companies and dealer paper issued by security dealers on behalf of corporate clients.
Secondary Market, Primary Vs Secondary, Stock Exchanges, Listing of Securities, Trading Systems in Stock exchanges, Qualifications of Listing,Delisting, Orders, types of Orders,
The document provides an overview of the Indian financial system, including its key components and institutions. It discusses the major financial markets in India - the money market, capital market, foreign exchange market, and credit market. It also examines the role of various financial intermediaries that operate in these markets, such as investment bankers, stock exchanges, and primary dealers. Additionally, the document outlines the functions of important financial sector regulators like the Reserve Bank of India and its departments that are responsible for banking and non-banking supervision.
An options contract gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price on or before the expiration date. There are call and put options. A call option allows buying the asset, while a put option allows selling the asset. The buyer pays a premium to the seller for this right. The profit/loss of the buyer and seller depends on whether the option expires in or out of the money. The buyer's potential profit is unlimited but their loss is limited to the premium paid, whereas for the seller the potential loss is unlimited but profit is limited to the premium received.
Warrants give holders the right to purchase shares of common stock from a company at a fixed price for a specified period of time. They are often issued with bonds. There are different types of warrants including those attached to common stock or bonds, debt warrants, and put warrants. Convertible bonds can be exchanged for a fixed number of shares and have characteristics of both debt and equity securities. Call options give the right to purchase shares at a specified price within a set time, while warrants are issued by companies to raise capital.
A trading system is a set of rules that can be based on technical indicators or fundamental analysis. A trading system tells the trader when and how to trade. In many cases, trading system is like a blueprint for trading.
Registrar and transfer agents (RTAs) process share transfer requests within 15-30 days if documents are in order. If an RTA does not respond within 30-35 days, investors can contact them to check on the status of a share transfer request. RTAs must be authorized by SEBI and comply with various guidelines regarding qualifications, infrastructure, capital adequacy, and more. SEBI conducts inspections and can suspend or cancel an RTA's authorization for any violations.
Meaning, need and benefits of depository system in India, difference between demat and physical share, depository process, functioning of NSDL and SHCIL Importance of Debt market in capital market, participant in the debt market, types of instrument treated in the Debt market, primary and secondary segments of debt market.
Derivatives are financial contracts whose value is based on an underlying asset such as stocks, bonds, currencies or commodities. There are several types of derivatives including forwards, futures, options and swaps. Participants in derivatives markets include hedgers who use them to reduce risk, speculators who take on risk to earn profits, and arbitrageurs who exploit temporary price differences between markets. Derivatives can be traded over-the-counter (OTC) between two parties or on an exchange. They provide economic benefits such as risk reduction, increased liquidity, lower transaction costs, and enhanced price discovery.
The document discusses securities markets and the types of securities traded within those markets. It defines what a security is and outlines the main types: equity securities (stocks), debt securities (bonds), and derivatives. It then discusses primary and secondary markets, how new securities are issued in the primary market and previously issued securities are traded in the secondary market. The roles of security markets are also summarized as providing liquidity, facilitating capital formation and business ownership, and price discovery. Reforms to India's security markets are highlighted such as the establishment of regulatory bodies and growth of electronic trading.
Treasury bills are short-term promissory notes issued by the government of India to finance its short-term borrowing needs. There are two types of treasury bills - ordinary bills which are freely tradable, and ad-hoc bills which are non-tradable and issued only to the RBI. Treasury bills are issued in 91-day, 182-day and 364-day maturities through weekly and fortnightly auctions. While treasury bills offer safety and liquidity, their yields tend to be low making them less attractive compared to other government securities.
Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”
The document provides an overview of negotiable instruments under Indian law, including the Negotiable Instruments Act of 1881. It defines key terms like promissory notes, bills of exchange, cheques, negotiation and endorsement.
It outlines the essential elements and parties involved in different types of negotiable instruments. Promissory notes require a maker who promises to pay a sum to a payee. Bills of exchange require a drawer, drawee and payee. Cheques are drawn on a specified banker and payable on demand.
Negotiation allows an instrument to be transferred, making the transferee the new holder. This can occur through delivery for bearer instruments or endorsement and delivery for instruments payable
The document discusses various portfolio revision strategies, including formula plans, rupee cost averaging, constant rupee plans, and variable ratio plans. Formula plans provide rules for buying and selling securities to time the market. Rupee cost averaging involves regularly investing fixed amounts to lower average costs. Constant plans maintain a fixed investment amount or ratio between aggressive and conservative holdings. Variable ratio plans change proportions based on market trends.
Fundamental analysis is a method of evaluating securities that involves performing an analysis of the underlying company and industry. It examines factors like the overall economy, industry conditions, and the financial condition and management of companies to determine a company's intrinsic value. The analysis involves evaluating economic, industry, and company-specific factors to estimate future earnings and stock prices. Some key aspects of fundamental analysis include analyzing the economy, industry life cycles, and individual company financials and operations.
The concept of the Security Market Line is very popular for portfolio management. It helps to derive the pricing of risky securities by plotting their expected returns.
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/security-market-line
Bearer cheques can be cashed by anyone who possesses them, making them risky if lost. Order cheques are safer as they can only be cashed or endorsed by the payee or someone the payee endorses them to. Crossed cheques provide more security than open cheques as they can only be deposited, not cashed over the counter. Anti-dated and post-dated cheques are only valid up to six months from the date on the cheque, while stale cheques older than six months will not be honored by banks.
This document discusses book building and fixed price issues for raising capital in the primary market. It describes the two main types of public issues - fixed price issues where the price is known in advance, and book building issues where the price is determined after bidding within a price band. The key aspects of the book building process are outlined, including how bids are collected electronically within a price band over a period of typically 5 days, after which the final issue price is set based on demand. Guidelines for book building from SEBI are also mentioned.
The document discusses various types of derivative contracts such as forward contracts, future contracts, and options contracts. It provides details about call and put options, terminology used in options trading such as exercise price, premium, spot price, etc. It explains the characteristics of American and European style options. Various option strategies are discussed along with factors affecting option premiums. The document also discusses order types and conditions in derivatives trading.
The document discusses Apple's competition in the smartphone and computer markets. It notes that while Apple only makes the iPhone, Android has multiple phone makers like Samsung and HTC. It states that Samsung had a 24.7% global market share in 2014 compared to Apple's 15%. The document also discusses Apple's long-standing competition with Microsoft in the desktop operating system market, lasting over 30 years. Finally, it lists 7 reasons people choose Apple, including that Apple devices have a more secure environment, people trust the brand, and they have great product launch events.
The document provides an overview of negotiable instruments under Indian law, including the Negotiable Instruments Act enacted in 1881. It defines key terms like negotiable, instrument, and discusses the essential features and types of negotiable instruments recognized in India. Specifically, it examines in detail the three main types of negotiable instruments - promissory notes, bills of exchange, and cheques - outlining their definitions, essential elements, parties involved, examples and classifications.
An options contract gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price on or before the expiration date. There are call and put options. A call option allows buying the asset, while a put option allows selling the asset. The buyer pays a premium to the seller for this right. The profit/loss of the buyer and seller depends on whether the option expires in or out of the money. The buyer's potential profit is unlimited but their loss is limited to the premium paid, whereas for the seller the potential loss is unlimited but profit is limited to the premium received.
Warrants give holders the right to purchase shares of common stock from a company at a fixed price for a specified period of time. They are often issued with bonds. There are different types of warrants including those attached to common stock or bonds, debt warrants, and put warrants. Convertible bonds can be exchanged for a fixed number of shares and have characteristics of both debt and equity securities. Call options give the right to purchase shares at a specified price within a set time, while warrants are issued by companies to raise capital.
A trading system is a set of rules that can be based on technical indicators or fundamental analysis. A trading system tells the trader when and how to trade. In many cases, trading system is like a blueprint for trading.
Registrar and transfer agents (RTAs) process share transfer requests within 15-30 days if documents are in order. If an RTA does not respond within 30-35 days, investors can contact them to check on the status of a share transfer request. RTAs must be authorized by SEBI and comply with various guidelines regarding qualifications, infrastructure, capital adequacy, and more. SEBI conducts inspections and can suspend or cancel an RTA's authorization for any violations.
Meaning, need and benefits of depository system in India, difference between demat and physical share, depository process, functioning of NSDL and SHCIL Importance of Debt market in capital market, participant in the debt market, types of instrument treated in the Debt market, primary and secondary segments of debt market.
Derivatives are financial contracts whose value is based on an underlying asset such as stocks, bonds, currencies or commodities. There are several types of derivatives including forwards, futures, options and swaps. Participants in derivatives markets include hedgers who use them to reduce risk, speculators who take on risk to earn profits, and arbitrageurs who exploit temporary price differences between markets. Derivatives can be traded over-the-counter (OTC) between two parties or on an exchange. They provide economic benefits such as risk reduction, increased liquidity, lower transaction costs, and enhanced price discovery.
The document discusses securities markets and the types of securities traded within those markets. It defines what a security is and outlines the main types: equity securities (stocks), debt securities (bonds), and derivatives. It then discusses primary and secondary markets, how new securities are issued in the primary market and previously issued securities are traded in the secondary market. The roles of security markets are also summarized as providing liquidity, facilitating capital formation and business ownership, and price discovery. Reforms to India's security markets are highlighted such as the establishment of regulatory bodies and growth of electronic trading.
Treasury bills are short-term promissory notes issued by the government of India to finance its short-term borrowing needs. There are two types of treasury bills - ordinary bills which are freely tradable, and ad-hoc bills which are non-tradable and issued only to the RBI. Treasury bills are issued in 91-day, 182-day and 364-day maturities through weekly and fortnightly auctions. While treasury bills offer safety and liquidity, their yields tend to be low making them less attractive compared to other government securities.
Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”
The document provides an overview of negotiable instruments under Indian law, including the Negotiable Instruments Act of 1881. It defines key terms like promissory notes, bills of exchange, cheques, negotiation and endorsement.
It outlines the essential elements and parties involved in different types of negotiable instruments. Promissory notes require a maker who promises to pay a sum to a payee. Bills of exchange require a drawer, drawee and payee. Cheques are drawn on a specified banker and payable on demand.
Negotiation allows an instrument to be transferred, making the transferee the new holder. This can occur through delivery for bearer instruments or endorsement and delivery for instruments payable
The document discusses various portfolio revision strategies, including formula plans, rupee cost averaging, constant rupee plans, and variable ratio plans. Formula plans provide rules for buying and selling securities to time the market. Rupee cost averaging involves regularly investing fixed amounts to lower average costs. Constant plans maintain a fixed investment amount or ratio between aggressive and conservative holdings. Variable ratio plans change proportions based on market trends.
Fundamental analysis is a method of evaluating securities that involves performing an analysis of the underlying company and industry. It examines factors like the overall economy, industry conditions, and the financial condition and management of companies to determine a company's intrinsic value. The analysis involves evaluating economic, industry, and company-specific factors to estimate future earnings and stock prices. Some key aspects of fundamental analysis include analyzing the economy, industry life cycles, and individual company financials and operations.
The concept of the Security Market Line is very popular for portfolio management. It helps to derive the pricing of risky securities by plotting their expected returns.
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/security-market-line
Bearer cheques can be cashed by anyone who possesses them, making them risky if lost. Order cheques are safer as they can only be cashed or endorsed by the payee or someone the payee endorses them to. Crossed cheques provide more security than open cheques as they can only be deposited, not cashed over the counter. Anti-dated and post-dated cheques are only valid up to six months from the date on the cheque, while stale cheques older than six months will not be honored by banks.
This document discusses book building and fixed price issues for raising capital in the primary market. It describes the two main types of public issues - fixed price issues where the price is known in advance, and book building issues where the price is determined after bidding within a price band. The key aspects of the book building process are outlined, including how bids are collected electronically within a price band over a period of typically 5 days, after which the final issue price is set based on demand. Guidelines for book building from SEBI are also mentioned.
The document discusses various types of derivative contracts such as forward contracts, future contracts, and options contracts. It provides details about call and put options, terminology used in options trading such as exercise price, premium, spot price, etc. It explains the characteristics of American and European style options. Various option strategies are discussed along with factors affecting option premiums. The document also discusses order types and conditions in derivatives trading.
The document discusses Apple's competition in the smartphone and computer markets. It notes that while Apple only makes the iPhone, Android has multiple phone makers like Samsung and HTC. It states that Samsung had a 24.7% global market share in 2014 compared to Apple's 15%. The document also discusses Apple's long-standing competition with Microsoft in the desktop operating system market, lasting over 30 years. Finally, it lists 7 reasons people choose Apple, including that Apple devices have a more secure environment, people trust the brand, and they have great product launch events.
The document provides an overview of negotiable instruments under Indian law, including the Negotiable Instruments Act enacted in 1881. It defines key terms like negotiable, instrument, and discusses the essential features and types of negotiable instruments recognized in India. Specifically, it examines in detail the three main types of negotiable instruments - promissory notes, bills of exchange, and cheques - outlining their definitions, essential elements, parties involved, examples and classifications.
The document provides information on negotiable instruments under Indian law, specifically comparing bills of exchange and cheques. It defines bills of exchange and cheques, outlines the key parties involved for each (drawer, drawee, payee), and describes some of the distinguishing characteristics between the two types of negotiable instruments such as bills of exchange can be drawn on anyone while cheques must be drawn on a specified banker, and cheques are always payable on demand.
The Negotiable Instruments Act 1881 governs negotiable instruments in India. It defines a negotiable instrument as a document that allows the transfer of a debt from one person to another through delivery or endorsement. The key types of negotiable instruments are promissory notes, bills of exchange, and cheques. A negotiable instrument can be discharged when all rights to payment under it are extinguished, such as through payment, cancellation, release, or expiration of the limitation period.
Track 1 - New Technologies in Health Education and Research
Authors: Pablo Ruisoto, Alberto Bellido, Javier Ruiz, Juan A. Juanes and Silvia L. Vaca
https://www.youtube.com/watch?v=GEKj2FUwVWI&list=PLboNOuyyzZ84QLeQL6RhwDMAH0id2tc4d&index=6
Este documento apresenta um estudo de caso realizado sobre uma criança e sua família. O objetivo é realizar uma avaliação da situação de saúde da criança no contexto familiar, utilizando o processo de enfermagem e o modelo de Nancy Roper. Foram realizadas entrevistas e exame físico da criança, analisando os dados coletados.
The document describes the Gryphon I GD4100 bar code scanner. It can read bar codes from near contact to over 3.9 feet away, has a wide 42 degree scan angle, and decodes small 3 mil bar codes. It provides fast reading speeds up to 325 reads per second and features a green spot for good read feedback. It is suitable for use in retail, warehouses, manufacturing and other industries to improve productivity. It offers multiple interface options and accessories.
PRIVACY ENHANCEMENT OF NODE IN OPPORTUNISTIC NETWORK BY USING VIRTUAL-IDijsc
An entrepreneurial system is one of the sort of remote system. Delay resistance system is correspondence
organizing proposition which empowers the correspondence in such a situation where end to end way
might never be exist. Message is forward on the premise of chance. Time interim to convey a message is
long we can't evaluate or anticipate the time until we get the message. There is a security issue in these
sorts of system. In this paper we will proposed another procedure which will expand the protection of the
system and build execution of the system.
Este documento presenta a los personajes principales de la serie de cómics Titeuf. Describe a Titeuf, el protagonista de 10 años, así como a sus padres y hermana menor Zoe. También describe a los amigos de Titeuf - Franky, Hugo, Manny, Wiremouth y Vomitor - y sus características distintivas. Por último, presenta a algunos personajes femeninos como Nadia, de quien Titeuf está enamorado, Agatha y Nathalie.
El documento habla sobre los riesgos que enfrentan los menores al navegar en internet y participar en videollamadas, como que en algunos casos pueden ser chantajeados sexualmente y se les pide dinero dentro de 24 horas para no publicar videos íntimos. También ofrece consejos sobre qué hacer si alguien es víctima de chantaje, como pedir ayuda, no ceder al chantaje, cambiar contraseñas y denunciar el caso.
Este documento describe las redes informáticas, incluyendo su definición, tipos (según cobertura, medio y topología), y dispositivos de conexión como tarjetas de red, cables, concentradores, conmutadores y routers. Explica conceptos clave como direcciones IP, máscaras de red y puertas de enlace predeterminadas.
O documento descreve o scanner de código de barras linear QuickScan Lite QW2100 da Datalogic. Ele fornece leitura rápida de códigos de barras 1D com um ângulo amplo de leitura e maior extensão, tornando-o adequado para varejo, manufatura leve e processamento de documentos. O scanner é pequeno, leve e oferece duas opções de interface, além de suporte articulado e resistente a quedas.
Negotiableinstrumentsact1881 121012020742-phpapp02Manu John
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881. It defines negotiable instruments as promissory notes, bills of exchange, or cheques that are payable either to order or to bearer. It also discusses the characteristics of negotiable instruments like being freely transferable, providing better title, and allowing the holder to sue. The document outlines the essentials of promissory notes, bills of exchange, and cheques and compares some of their key differences. It also covers topics like endorsement, crossing of cheques, and presumptions under negotiable instruments.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881 in India. It defines negotiable instruments as promissory notes, bills of exchange, and checks. It describes how instruments can be negotiable by statute or usage and the methods and essentials of negotiation, endorsement, and transfer. It also discusses the characteristics, presumptions, types (promissory notes, bills of exchange, checks), crossing and endorsement of negotiable instruments.
The document discusses negotiable instruments under Indian law. It defines negotiable instruments as written and signed documents that entitle the holder to a specified sum of money and are freely transferable. The three main types of negotiable instruments are promissory notes, bills of exchange, and cheques. Promissory notes contain an unconditional promise to pay, bills of exchange contain an order to pay, and cheques are drawn on a bank and payable on demand. Key characteristics include being in writing, containing an unconditional obligation, and specifying a certain sum payable. Negotiable instruments can be transferred between parties either through negotiation (delivery or endorsement) or assignment.
MODERN BANKING - The Negotiable Instruments Act24x7kannadanews
This document provides an overview of negotiable instruments including the Negotiable Instruments Act of 1881. It defines key terms like negotiable instrument, discusses the characteristics of negotiable instruments like being freely transferable and presuming consideration. It also covers specific instruments like promissory notes, bills of exchange, and cheques. For each it defines the instrument, essential elements, parties involved and how they can be discharged when rights under the instrument are extinguished.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act of 1881 in India. It covers:
1) The main types of negotiable instruments like promissory notes, bills of exchange, and cheques. It explains their essential elements and differences.
2) Key parties to negotiable instruments like drawers, drawees, makers, payees, holders, and endorsers. It also discusses capacities of different parties.
3) Important concepts like crossing of cheques, classification of instruments, presumption of consideration, and distinction between payment in due course vs other payments.
4) The characteristics and requirements to qualify as a holder in due course, who has additional rights
Law the negotiable instruments act 1881Adil Shaikh
The document summarizes key aspects of negotiable instruments under the Negotiable Instruments Act 1881 including promissory notes, bills of exchange, and cheques. It defines each instrument, outlines their essential elements and characteristics, and distinguishes between them. The key takeaways are that negotiable instruments must be freely transferable, give the holder clear title, and can be transferred indefinitely until maturity.
This document provides an overview of negotiable instruments. It defines a negotiable instrument as a written document that includes a promise to pay a certain amount of money to the bearer. Key points include:
- Negotiable instruments must be in writing, signed, include an unconditional order/promise to pay a certain sum of money, and include delivery.
- Common types of negotiable instruments are promissory notes, bills of exchange, and cheques.
- Features include being transferable, providing title to the transferee, and certain presumptions around consideration, dates, and titles.
The document defines and compares different types of negotiable instruments - promissory notes, bills of exchange, and cheques. It states that a negotiable instrument is a document that allows the transfer of rights from one person to another according to the Negotiable Instruments Act of 1881. It then provides details on the key characteristics and requirements for each type of instrument, such as needing to contain an unconditional promise to pay, having ascertainable parties, and being in writing. It also highlights some of the differences between these instruments, such as cheques requiring a specified banker as the drawee and always being payable on demand.
The document provides an overview of the Negotiable Instruments Act of 1881. It defines key terms like negotiable instrument and discusses the characteristics of negotiable instruments. It outlines the three main types of negotiable instruments - promissory notes, bills of exchange, and cheques. For each type, it provides examples and discusses their essential elements. It also compares and contrasts promissory notes and bills of exchange, and discusses additional qualifications for cheques. Finally, it covers topics like crossing of cheques and the different types of crossing.
The document discusses key concepts around negotiable instruments under the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments and outlines the main types recognized by law: bills of exchange, checks, and promissory notes. For each type, it describes the essential elements and parties involved, using examples. It also briefly discusses concepts like dishonor, notary public, noting, and protest related to negotiable instruments.
This document provides an overview of negotiable instruments under the Negotiable Instruments Act 1881. It defines key terms like promissory note, bill of exchange, cheque, inland and foreign instruments. It describes the essential elements and parties involved in promissory notes, bills of exchange and cheques. It also discusses negotiation, crossing of cheques, presumptions related to negotiable instruments and endorsement.
This document provides an overview of negotiable instruments under the Negotiable Instruments Act of 1881 in India. It defines key terms like promissory notes, bills of exchange, and cheques. It outlines the essential requirements for valid negotiable instruments and differences between types of instruments. It also discusses acceptance, transfer through endorsement, rights and liabilities of parties, and enforcement of secondary liability.
This document provides an introduction and overview of negotiable instruments under Indian law. It defines key terms like negotiable instrument, bill of exchange, promissory note, and cheque. It outlines the main objectives and features of the Negotiable Instruments Act of 1881. Examples of negotiable instruments are given and the essential features like writing, money, transferability etc. are summarized. Different types of negotiable instruments like accommodation bills, fictitious bills, inland vs foreign instruments are also defined. The document classifies and explains the parties and characteristics of bills of exchange, promissory notes, and cheques. Crossing of cheques and different bank drafts are briefly covered.
The document discusses various types of negotiable instruments including promissory notes, bills of exchange, and checks. It provides details on the key features and parties involved in each type of instrument. Promissory notes represent unconditional written promises to pay a certain sum of money, while bills of exchange are written unconditional orders to pay drawn by a creditor on a debtor. Checks are written orders drawn by account holders on banks to pay a specified sum to a payee. The document outlines the differences between open checks, bearer checks, order checks, and crossed checks.
1. The document discusses the Negotiable Instruments Act of 1881 and key aspects of negotiable instruments like promissory notes and bills of exchange.
2. It defines negotiable instruments as written documents that are freely transferable and create a right to payment. Key characteristics include free transferability, the holder having a clear title, and the ability to sue in their own name.
3. Promissory notes and bills of exchange are discussed in detail, including definitions, essential elements, and typical parties involved like the maker, payee, drawee, and endorser.
1. The document discusses various types of negotiable instruments including promissory notes, bills of exchange, and cheques. It defines each instrument and outlines their key characteristics.
2. A promissory note contains an unconditional promise to pay a certain sum of money to a specific payee. A bill of exchange contains an unconditional order to pay money, and involves a drawer, drawee, and payee.
3. A cheque is a type of bill of exchange that is drawn on a bank and payable on demand. It must be dated, signed by the drawer, and the bank is obligated to pay the amount if the drawer has sufficient funds.
This document provides an overview of the Negotiable Instruments Act of 1881 in India. Some key points:
- The Act deals with promissory notes, bills of exchange, and cheques, which are negotiable instruments that allow rights to be transferred from one person to another.
- A negotiable instrument must be in writing, contain an unconditional order or promise to pay a certain sum of money, and allow the transfer of rights according to the Act's provisions.
- The Act establishes rules for different types of negotiable instruments. A promissory note contains a promise to pay, while a bill of exchange contains an order to pay. A cheque is a type of bill of exchange drawn on a
The document discusses negotiable instruments under Pakistani law. It defines a negotiable instrument as a promissory note, bill of exchange, or cheque according to Section 13(1) of the negotiable instrument Act, 1881. A negotiable instrument is a written document that creates a right to payment for the holder and can be freely transferred between parties. Key characteristics include free transferability, the holder having title free of defects, and the ability of the transferee to sue in their own name. The document also discusses the definitions, essentials, and parties involved in promissory notes, bills of exchange, and cheques.
Similar to Negotiableinstrumentsact1881 121012020742-phpapp02 (1) (20)
2. Introduction
• The word negotiable means transferable from
one person to another and the term
instrument means any written document by
which a right is created in favour of some
person. Thus the negotiable instrument is a
document by which the right vested in a
person can be transferred to another person
in accordance with the Negotiable
Instruments Act 1881.
3. Negotiable Instrument
• According to Section 13(i) “ a negotiable instrument means a
promissory note, bill of exchange or cheque payable either on
order or to bearer”.
• An instrument may be negotiable either by
1. Statute : Promissory Notes , bills of exchange and cheques
are negotiable instruments under Negotiable Instruments
Act 1881 .
2. By Usage : Bank Notes , Bank Drafts , scripts, treasury Bills etc
4. Characteristics
• It is freely transferable
• Better title
• Right to sue
• A negotiable instrument can be transferred any number of
times till its maturity
• A negotiable instrument is subject to certain presumptions
• Presumptions – certain presumptions as to
consideration, reasonable time etc., apply to all negotiable
instruments.
5. Presumptions
1. Consideration : Every negotiable instrument is deemed to
have been drawn and accepted , endorsed, negotiated, or
transferred for consideration
2. Date : Every negotiable instrument must bear the date on
which it is made or drawn
3. Acceptance : Every Bill of exchange was accepted within a
reasonable time after the date mentioned therein and before
the date of its maturity
4. Transfer : Every transfer should be made before the expiry
6. Promissory Notes
• Section 4 defines it as, “ A promissory note is an instrument in
writing containing an unconditional undertaking, signed by
the maker, to pay a certain sum of money only to or to the
order of a certain person or to the bearer of the instrument”.
• The person who makes the promissory note is called the
maker.
• The person to whom payment is to be made is called the
payee. e.g. –
• I promise to pay B or order rs. 500
• I promise to pay B Rs.500 on D’ death, provided D leaves me
enough to pay that sum
7. Essentials of Promissory Note
• It must be in writing
• It must contain express promise to pay’
• The promise to pay must be unconditional
• It must be signed by maker
• The maker must be certain- It must describe the name &
designation of the maker, sum of money
• There are 2 parties involved i.e. maker and the payee
• The payee must be certain- It is essential that it must contain
a promise to pay some person ascertained by name or
designation.
• The sum payable must be certain
• The promise should be to pay money and money only
• A currency note is not a promissory note
9. • (a) “Mr. B, I.O.U. (I owe you) Rs. 500”
• (b) “I am liable to pay you Rs. 500”.
• (c) “I have taken from you Rs. 100, whenever
you ask for it have to pay”
10. Bill of Exchange
• Section 5, is defined as “A bill of exchange is an instrument in
writing containing an unconditional order, signed by the
maker, directing a certain person to pay a certain sum of money
only to or to the order of a certain person or to the bearer of the
instrument”.
• Parties to bill of exchange :
• Drawer – The person who makes/orders to pay bill of exchange.
• Drawee – The person who is directed to pay on bill. On acceptance
he becomes acceptor.
• Payee – The person to whom the payment is to be made.
• Drawer & Payee can be the same person.
• X sells goods worth Rs. 2000 to Y & allow him 3 months time to pay
the price. X then draws a bill on Y “ Three months after date, pay to
my order the sum of Rs. 2000 for value received”. X is drawer . Y is
Drawee.
11. Essential of Bills of Exchange
• It must be in writing
• It must contain an order to pay and a promise or request
• The order must be unconditional
• There must be 3 parties i.e. : drawer, drawee, and payee
• The parties must be certain
• It must be signed by the drawer
• Number, date and place are not essential
13. • (a) “I shall be highly obliged if you make it
convenient to pay Rs.1000 to Suresh”.
• (b) “Mr. Ramesh, please let the bearer have
one thousand rupees, and place it to my
account and oblige”
• there is no order to pay, but only a request to
pay
• “Please pay Rs. 500 to the order of ‘A’.
14. Cheques
• Section 6, defines it as “ A cheque is a bill of exchange drawn
on a specified banker & not expressed to be payable
otherwise than on demand”.
• It is always drawn on a bank
• It is payable to bearer on demand
• Parties To Cheque:
1. Drawer – who makes the cheque
2. Payee – to whom payment is to be made
3. Drawee – Bank .
15. Meaning of Crossing of Cheque
• Crossing of a cheque is a unique feature associated with a
cheque affecting to a certain level the responsibility of the
paying Banker and also its negotiable Character.
• Crossing of a Cheque is a direction to a particular Banker by
the Drawer that Payment should not be made across the
Counter. The payment on the crossed Cheque can be collected
only through a Banker.
• Crossing of the Cheque is affected by drawing two parallel
Transverse lines .
• The Cheque that is not crossed is an open Cheque.
17. Types of cheque
• There are two types of cheque:
1. Open cheque – those which can be encashed across the
counter of the bank. Liable to great risk if stolen or lost.
Finder can get payment from bank.
2. Crossed cheque – which bears two transverse lines with or
without the words “ & co.”
18. Why Crossing of Cheque is being used
• The important usefulness of a crossing cheque is that it cannot be
covered at the counter but can be collected only by a bank from the
drawee bank.
• Crossing provides a protection and safeguard to the owner of the
cheque as by securing payment through a banker it can be easily
detected to whose use the money is received. Where the cheque is
crossed the paying banker shall not pay it except to a banker.
• A special crossing makes the cheque more safe than a general
crossing because the payee or holder cannot receive payment
except through the banker named on the cheque.
19. Who can cross a Cheque
1. The drawer of a Cheque
2. Holder of the Cheque
3. The Banker in whose favor the cheque has been crossed
specially
20. Dishonour of the Cheque on the
grounds of Insufficiency of Funds
• Section 138 to 142 of the Negotiable
Instruments Act provide for Criminal Penalties
in event of Dishonour of Cheques for
Insufficiency of Funds. The drawer under
Section 138 may be punished with
imprisonment upto 2 years or with a fine
twice the amount of the Cheque or with Both.
21. Holder and Holder in due course
• Holder is a person who is entitled in his own name to
the possession of the negotiable instrument and to
recover the amount thereon.
• Holder in due course is a person who came into
possession of the instrument on payment of
consideration and without knowledge of the fact that
the erstwhile owner had a defective title.
• The holder in due course has a better title than the
holder.
22. Privileges of a holder in due course
• He can sue every prior party to the negotiable
instrument if the instrument is not duly
satisfied.
• When the holder endorses such instrument
further, the new owner has a good title unless
he is party to fraud.
• The burden of proving his title does not lie
upon the holder in due course.
23. Meaning of Endorsement
• When a maker or holder writes the person’s name on the face
or back of the instrument & puts his signatures thereto for the
purpose of negotiation, it is called ‘endorsement’.
• Person who signs – endorser
• To whom it is endorsed – endorsee.
• A legal term that refers to the signing of a document which
allows for the legal transfer of a negotiable from one party to
another.
• When an employer signs a check, they are endorsing the
transfer of money from the business accounts to the account
of the employee.
24. Essentials of valid endorsement
1. On the back or face of the instrument.
2. Must be made by maker or holder.
3. Must be properly signed by the endorser.
4. It must be for the entire negotiation instrument.
5. No specific form of words are necessary for endorsement.
25. Kinds of endorsement
1. Blank or general endorsement – where endorsee simply puts
his signature on the back of the instrument without writing
name of the person in whose favor the instrument is
endorsed.
2. Special or full endorsement – An endorsement with the
direction to pay amount mentioned in the instrument to a
specified person or his order & the endorser writes his
signature under it.
3. Partial endorsement – When an endorser is willing to
transfer to an endorsee only a part of the amount of the
instrument. Such an endorsement does not operate as a
negotiation of the instrument.
26. • Restrictive endorsement – An endorsement is said to be
restrictive if it prohibits or restricts the further negotiability of
the instrument. The holder of such an instrument can only
receive the payment but he cannot negotiate it further. An
instrument can be made restrictive only by expressed words.
• Conditional endorsement – It limit the liability of the
endorser. E.G. – “ Pay A or order on his marrying B”.
27. Effects of Endorsement
• The property in instrument is transferred from
endorser to endorsee.
• The endorsee gets right to negotiate the instrument
further.
• The endorsee get the right to sue in his own name to
all other parties.
28. Promissory Note Bill of Exchange
1. It contains a promise to pay. 1. It contains an order to pay.
2. It is presented for payment 2. It is required to be accepted either
without any previous by the drawee or by some one else
acceptance by the maker. on his behalf, before it can be
presented for payment.
3. It cannot be made payable to
the maker himself. The maker 3. The drawer and payee or the
and the payee cannot be the drawee and the payee may be the
same person. same person.
4. There are three
4. In the case of a promissory
parties, drawer, drawee and payee.
note there are only two
parties, the maker and the 5. A bill of exchange cannot be
payee. drawn conditionally, but it can be
accepted conditionally with the
5. A promissory note can never consent of the holder.
be conditional.
6. A notice of dishonour must be
6. In case of dishonour no notice given in case of dishonour of a Bills
of dishonour is required to be of Exchange.
given by the Holder
29. Cheque Bill of exchange
1. Drawee: Cheque can be drawn 1. The drawee may be any person.
only on a banker. 2. A bill may be drawn payable on
2. Time of payment: A cheque is demand or on expiry of certain
payable on demand. period after date or sight.
3. Grace period: Cheque is payable 3. While calculating maturity three
on demand and no grace period is day’s grace is allowed.
allowed. 4. A notice of dishonour is required.
4. Notice of dishonour: Notice of 5. Bills require presentment for
dishonour is not necessary. acceptance and it is better to
5. Acceptance: A cheque is not present them for acceptance even
required to be presented for when it is not essential to do so.
acceptance. It needs to be 6. A bill of exchange cannot be
presented only for payment. crossed.
6. Crossing: A cheque may be 7. A bill may be drawn for any period.
crossed.
7. Validity period: A cheque is usually
valid for a period of six months.