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A Global Depository Receipt or Global Depositary Receipt (GDR) is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account. GDRs represent ownership of an underlying number of shares. Global Depository Receipts facilitate trade of shares, and are commonly used to invest in companies from developing or emerging markets. Prices of GDRs are often close to values of related shares, but they are traded & settled independently of the underlying share. Several international banks issue GDRs, such as JPMorgan Chase, Citigroup, Deutsche Bank, Bank of New York. They trade on the International Order Book (IOB) of the London Stock Exchange. Normally 1 GDR = 10 Shares, but not always.

A U.S. dollar-denominated equity share of a foreign-based company available for purchase on an American stock exchange. American Depositary Shares (ADSs) are issued by depository banks in the U.S. under agreement with the issuing foreign company; the entire issuance is called an American Depositary Receipt (ADR) and the individual shares are referred to as ADSs.

A negotiable security (receipt) that is issued by a European bank, and that represents securities which trade on exchanges outside of the bank’s home country. Abbreviated as "EDRs", these securities are traded on local exchanges and used by banks - and issuing companies in the U.S. and other countries - to attract investment capital from the European region. Also known as "Euro Depository Receipts", which may or may not imply that the euro is the currency the receipt is issued upon.

Financial Engineering involves the design, development and implementation of innovative financial instrument and processes and formulation of creative solutions to the problems of finance. The objectives of financial engineering are:

To remove operational efficiencies in financial matters for exploiting profitable opportunities.

To supply securities with the features desired by the investors. To reduce the cost of financial intermediation and the cost of inconvenience to the users. To keep pace with changing tax laws, advancing technology, changing interest rates, currency level and volatility.

It involves commitments for the term loans from the financial institutions and banks for financing a particular project. In other words, in loan syndication two or more financial institutions or banks agree to finance a particular project. One of the institution may become a lead institution and bring about coordination in the financing arrangement of different finance institutions/banks.

The term bridge finance refers to the loans taken by firms, generally from commercial banks, pending disbursement of term loans from financial institutions viz. IDBI, IFCI, ICICI, etc. it may be noted that there is always a time gap between the date of sanctioning of a loan and its disbursement by the financial institution to the concerned borrowing firm. In order to prevent delay in starting their projects, the firm arrange from the commercial banks, short-term loans which are later on repaid as and when term loans disbursement are received from the financial institution.

Securitization of debt, or asset securitization as is more often referred to, is a process by which identified pools of receivables, which are usually illiquid on their own, are transformed into marketable securities through suitable repackaging of cash flows that they generate. Securitization, in effect, is a credit arbitrage transaction that permits for more efficient management of risks by isolating a specific pool of assets from the originator's balance sheet. Further, unlike the case of conventional debt financing, where the interest and principal obligations of a borrowing entity are serviced out of its own general cash flows, debt servicing with asset backed securities (ABS) is from the cash flows originating from its underlying assets.

Floating Rate Bonds are different than fixed rate bonds because they pay out variable coupon interest payments at each period (monthly, quarterly, semiannually or annually). The amount of these variable payments are determined by the current market interest rates + a "spread." A spread is a percentage point example 0.2 that remains constant.

A type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument. It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock.

These types of bonds are attractive to both investors and issuers. The investors receive the safety of guaranteed payments on the bond and are also able to take advantage of any large price appreciation in the company's stock. (Bondholders take advantage of this appreciation by means warrants attached to the bonds, which are activated when the price of the stock reaches a certain point.) Due to the equity side of the bond, which adds value, the coupon payments on the bond are lower for the company, thereby reducing its debt-financing costs.

A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than expected. Legally referred to as an over-allotment option. A green shoe option can provide additional price stability to a security issue because the underwriter has the ability to increase supply and smooth out price fluctuations if demand surges.The term is derived from the fact that the Green Shoe Company was the first to issue this type of option.

Credit Rating Information Services of India Limited (CRISIL) Investment Information and Credit Rating Agency of India (ICRA) Credit Analysis & Research Limited (CARE) Duff & Phelps Credit Rating India Private Ltd. (DCR India) ONICRA Credit Rating Agency of India Ltd.

Ratings awarded by major credit rating agencies AAA - : Highest Safety AA - : High Safety A-: Adequate Safety BBB - : Moderate Safety BB - : Sub -moderate Safety B - : Inadequate Safety C - : Substantial Risk D - : Default

In finance, a swap is a derivative in which two counterparties agree to exchange one stream of cash flow against another stream. These streams are called the legs of the swap. The cash flows are calculated over a notional principal amount, which is usually not exchanged between counterparties. Consequently, swaps can be used to create unfunded exposures to an underlying asset, since counterparties can earn the profit or loss from movements in price without having to post the notional amount in cash or collateral.

A FCCB is a quasi debt instrument which is issued by any corporate entity or international agency to the investors all over the world. FCCBs represent equity linked debt security which can be converted into shares or into depository receipts. The FCCBs has the option to convert it into equity normally in accordance with pre determined formula and sometimes also at predetermined exchange rate. The investor also has the option to retain the bond. The FCCBs by virtue of convertability offers to issuer a privilege of lower interest cost than that of similar non convertible debt instrument. Like GDRs, FCCBs, are also freely tradable.