Important Points for IC 89 - Management Accounting Exam
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Bonds or Debentures are long term debt instruments. The issuers of bonds or debentures promise to pay interest at stipulated rate on borrowed amount and refund principal amount at the stipulated time on redemption of instruments.
Government securities include Debt securities issued by the Central government, State governments, Semi government bodies of agencies. Government Securities are also known as gilt-edged securities.
The Different types of Government Securities according to the notifiations of the RBI, are as follows: Securities with Fixed Coupon rates, Securities with Variable coupon rates, Securities with Embedded Derivaties, Securities for either the subscription is received or the repayment is made in installments and Zero Coupon Bonds.
The IRDA in consultation with the Insurance Advisory Committee has made investment Regulation called the Insurance Regulatory and Development Authority Regulations 2000 on 14th August 2000.
The financial system plays a very important role in economic growth through: Mobilisation of savings, Formation of capital, Canalizing the funds into the production process of the enterprises both for private and government.
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