11

New Financial Instruments

Chapter Objectives

This chapter will enable you to develop an understanding of the following:

  1. Meaning of new financial instrument

  2. New financial instruments such as floating rate bonds, zero interest bonds, deep discount bonds, revolving underwriting finance facility, auction rated debentures, secured premium notes with detachable warrants, non-convertible debentures with detachable equity warrants, secured zero interest partly convertible debentures with detachable and separately tradable warrants, fully convertible debentures with interest (optional), differential shares, securitised paper, collateralised debt obligations, and inverse float bonds, perpetual bonds, and municipal bonds.

INTRODUCTION

The Indian ...

Get The Indian Financial System: Markets, Institutions and Services, 3rd Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial