Saturday 31 December 2016

FIDUCIARY ISSUES

*Fiduciary issue: is the part of the issue of notes and coins that is not backed by gold. In the past bank notes were

issued and were backed by gold. You could always redeem your notes and have gold back in exchange. However,

the system quickly developed so that the value of notes issued exceeded the amount of gold. That part of the note

issue in excess of the amount of gold was the fiduciary issue. In other words the amount of money issued on trust.

Today the whole note issue is fiduciary.

*Fiduciary: This term can be used both as an adjective and a noun. It is used in the context of a trust relationship.

For example, if one is said to have a fiduciary obligation, it means that one is acting in trust for other parties. A

fiduciary is one who is in a position of trust. One can also use the adjective fiducial - for example, one has fiducial

dependence on someone else.

*Rights issue: An new share issue to existing shareholders giving them the right to buy new shares at a

predetermined price.

*Vanilla issue: A security issue that has no unusual features.

*Unseasoned issue: Issue of a security for which there is no existing market.

*Mirror Account Service: Mirror Account Service is a concentration service that enables you to pool your funds

from accounts maintained by your various subsidiaries, divisions or related entities while maintaining operating

account autonomy among the participants. By consolidating funds, you are able to earn higher interest returns or

minimize the use of operating bank credit lines through inter-entity lending, while maintaining autonomy in day-to-

day banking activities

*An asset–liability mismatch occurs when the financial terms of an institution's assets and liabilities do not

correspond.

*TARC-Tax Administration Reforms Commission. The government set up a seven-member panel under the

chairmanship of Parthasarathi Shome to revisit tax laws and recommend measures for putting in place a stable

and non-adversarial tax administration.

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