GDP Outlook: A report by CRISIL


GDP: Demonetisation pain, GST anxiety to the fore (A report by CRISIL Ltd)

The Central Statistical Office (CSO) released quarterly estimates of GDP for first quarter of current fiscal. Crucially, the government has also revised down gross value added (GVA) growth for the fourth quarter of last fiscal by 50 basis points (bps) to 5.6%, suggesting that the impact of demonetisation on the economy was more than earlier estimated. In the first quarter, real GDP growth slid to 5.7% from 7.9% in the same quarter last fiscal. The slowdown corroborates with corporate results for the first quarter, which had shown net profits declining for chunk of listed firms. The computation of GDP relies heavily on corporate data from the Ministry of Corporate Affairs database. The slowdown reflects sharp deceleration in exports of goods, and some moderation in consumption growth.

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Margin Trading and Types of Margins


Before we begin with different types of margins, let us look back at what margin trading is. Suppose I is an investor and B is a Broker. I is extremely sure of an investment strategy that he has developed. But due to the limited capital, his gains are limited. So, he goes to his broker B and says that I have 10$ but I would like to invest worth 100$. Would you like to provide me with the remaining 90? B says, that he is willing to provide the same but he would charge some extra commission for that. A agrees and pays the 10$ , B gives him the remaining 90 and A then invests the 100$. He makes a profit and then returns the 90 plus the extra commission to B. The transaction above in layman terms is margin trading.

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Primary Market: Basic Concepts


Primary Market: Basic Concepts

Primary Markets are where firms issue new shares or bonds to the public for the first time. The primary market is where the IPO (Initial Public Offering) of shares takes place. The primary market also facilitates bond offerings for both – public sector and private sector companies.

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The Blockchain Technology


What is Blockchain Technology?

Before we talk about Blockchain it is important to know the role intermediaries play in economy. Intermediaries like banks and government facilitate the transaction of goods and services by creating trust and certainty. Like when an individual or business makes an electronic payment, they require a bank to track and record the transaction or when an individual buys a real state property then they need local government body to keep records stored.  What if there was a way of making a transaction that didn’t require the use of trusted intermediaries like banks, government or local body?

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The Future of Payments Banks


Navi Mumbai based FINO PayTech Ltd. recently launched the FINO Payments Bank, which is the newest entrant in the space after Airtel, India Post and Paytm. FINO was one of the original 11 applicants which were issued an in-principle approval by the RBI for setting up a payments bank back in 2015. Paytm has also launched its Payments Bank in May 2017 offering an interest rate of 4%.

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Participatory Notes: A Convenience or a Threat


Participatory Notes: A Convenience or a Threat

Remember the auction scenes depicted in the cinematic world where the bidder bids for some undisclosed third party? Ring a bell? What could be the purpose of such an activity? Well, such indirect participation is to bypass the formalities of registration with the regulating authority and obviously to maintain the anonymity of the participation.
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