Business, Economy & Banking Current Affairs - 2019
Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.
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In a move that would encourage foreign portfolio investment in Indo, the Government hiked the investment limit for foreign portfolio investors in government bonds by $5 billion to $30 billion.
However, the enhanced limit of $5 billion will be available for investments only to foreign central banks, sovereign wealth funds, multilateral agencies, endowment funds, insurance funds and pension funds.
A special window of $ 250 million will be made available for FIIs that have exhausted their reinvestment limits, as a one-time measure. However, investments using this special window will have a 90-day lock-in period.
What are G-secs?
- The Government securities (G-secs) which is also called gilt edged securities comprise dated securities issued by the Government of India and state governments as also, treasury bills issued by the Government of India. Reserve Bank of India manages and services these securities through its public debt offices located in various places as an agent of the Government.
- G-secs are mostly interest bearing dated securities issued by RBI on behalf of the Government of India. Government of India uses these funds to meet its expenditure commitments. These securities are generally fixed maturity and fixed coupon securities carrying semi-annual coupon. Since the date of maturity is specified in the securities, these are known as dated G-secs.
Key feature of G-secs:
- Issued at face value
- No default risk as the securities carry sovereign guarantee
- Ample liquidity as the investor can sell the security in the secondary market
- Interest payment on a half yearly basis on face value
- No Tax Deducted at Source (TDS)
- Can be held in Demat form
Social networking website Facebook opened its first data centre outside the United States, in Luleaa, a coastal Swedish town near the Arctic Circle.
With this, Facebook joins Google and other tech companies attracted by chilly temperatures that seldom exceed levels that require special cooling capabilities which environmentalists say damage the environment. Another benefit of choosing Luleaa is its renewable energy resources. Facebook will use powered by locally generated hydro-electric energy power the equipment of the data center.