International Finance - Book Reference

SL No.	International Finance	Pg No.
	Unit 1-Introduction to international finance
1	International developments	2
2	international capital market	5
3	euro currency market	5
4	domestic market	5
5	balance of trade and balance of payment	6
6	international capital budgeting	9
7	the basic framework	10
8	international commercial terms	11
9	INCOTERMS	11
10	International chamber of commerce	11
11	departure EXW Ex. works CTD/MTO	12
12	Main carriage unpaid	12
13	FCA Free Carrier	12
14	FAS Free Alongside Ship	12
15	FOB Free on board	12
16	Main Carriage paid	13
17	CFR Cost and freight	13
18	CIF Cost, Ins and freight	13
19	Main Carriage paid	13
20	CPT Carriage paid to	13
21	CIP Carriage & Insurance paid	14
22	Arrival DAF	14
23	Delivered at frontier	14
24	DES Delivered at Ex. Ship	15
25	DEQ Delivered at Quay	16
26	DDU delivered duty unpaid	16
27	DDP Delivered duty paid	16
28	DDP Delivered duty paid	16
	unit 2:- International Monetary and financial system
1	international Monetary system	22
2	international finance system	24
3	the US Dollar market	25
4	the Japanese Yen Market	26
5	The sterling Market	26
6	recent developments in International financial Market	27
7	securitization	29
8	the evolution of exchange rate system	30
9	the fixed exchange rate system	30
10	problems	32
11	failure of fixed rate system	32
12	European Monetary system-EMS	32
13	Economic and monetary union	34
14	recent developments	35
15	Post-Maastricht Developments	35
16	emergence of euro	36
17	group of seven	37
18	international monetary fund	38
19	SDR Special Drawing Rights	39
20	parts	39
21	funding facility	40
22	reserve tranche	40
23	credit tranche	40
24	stand-by agreement	40
25	extended arrangements or extended fund facilities-EFF	41
26	special facilities	41
27	CCFF	41
28	Buffer stock financing facility-BSFF	41
29	supplemental Resource facility-SRF	42
30	Enhanced Structural Adjustment facility-ESAF	42
31	special drawing rights-SDR	42
32	Liquidity problems	42
33	the world bank	43
34	DBRD-international bank for reconstruction and development	43
35	MIGA-Multinational investment guarantee agency	43
36	IDA-international development Association	44
37	IFC-international finance corporation	44
	unit 3:-Documents used in international trade
1	regulatory requirements	50
2	operational requirements	50
3	commercial documents	51
4	Performa invoice	51
5	commercial invoice	51
6	consular invoice	52
7	customs invoice	52
8	legalized invoice	52
9	combined certificate of origin and value	53
10	financial documents	53
11	bill of exchange	53
12	means for collecting payment	54
13	means for demanding payment	54
14	means for extending credit	54
15	it’s a promise of payment	54
16	it’s a receipt of payment	55
17	Sight B/E	55
18	Usance B/E	55
19	DP BASIS- Documents against payment basis	55
20	DA BASIS-Document against acceptance basis	55
21	transport document	55
22	bill of lading	55
23	functions	56
24	types	57
25	received for shipment Bill of lading	57
26	on board bill of lading	57
27	short form bill of lading	57
28	long form bill of lading	58
29	clean bill of lading	58
30	clause bill of lading	58
31	through bill of lading	58
32	straight bill of lading	58
33	charter party bill of lading	58
34	container bill of lading	59
35	combined transport B/L or multi modal B/L	59
36	Lash bill of lading	59
37	house bill of lading	60
38	airway bill of lading	60
39	air consignment note	60
40	house airway bill	60
41	postal receipt	61
42	courier/expected delivery service	61
43	multimodal transport document	61
44	risk covering document	62
45	insurance policy	62
46	specific policy	62
47	open policy	62
48	insurance cover note	63
49	official documents	63
50	export declaration forms	63
51	G.R FORM	64
52	P.P FORM	64
53	SOFTEX FORM	64
54	export certificate	64
55	certificate of origin	64
56	Miscellaneous documents	65
57	packing list	65
58	weight certificate	65
59	certificate of analysis and quality	66
60	certificate of inspection	66
61	health certificate	66
62	methods of international payment	67
63	advance payment	67
64	bills for collection	68
65	open account	69
66	barter trade	69
67	bank guarantee	70
68	letter of credit L/C	71
69	definition of documentary credit L/C	71
70	Applicant	72
71	issuing bank	72
72	advising bank	73
73	beneficiary	73
74	confirming bank	73
75	negotiating bank	73
76	reimbursing bank	73
77	types of letter of credit	74
78	revocable	74
79	irrevocable	74
80	confirmed revocable	74
81	transferable	74
82	revolving	74
83	credit available by installment	74
84	back-to -back	75
85	anticipatory or red clause	75
86	green clause	75
87	deferred payment	75
88	standby	75
89	flow chart of export transaction	76
90	parties to letter of credit	77
91	opener/importer	77
92	L/C opening bank	77
93	L/C advising bank	77
94	beneficiary/exporter	77
95	L/C confirming bank	77
96	negotiating bank	77
97	reimbursing bank	77
98	steps in transaction	77
	unit 4:-external commercial borrowing
1	Bilateral aid	84
2	commercial debt	84
3	aid form global financial institution	84
4	equity funding	84
5	special lines of credit	85
6	syndicated loan	85
7	FCNR deposit	85
8	export and import credit	85
9	fund raising	85
10	underwriting	85
11	hedging	85
12	arbitraging	85
13	note issuance facility	86
14	mechanism and documentation	86
15	syndicated loan	87
16	features and its composition	87
17	lead manger/arranger	88
18	underwriter	88
19	CO-manager	88
20	participant	88
21	creator of memorandum of information	88
22	principal document loan agreement	88
23	flip-Flop FRN	89
24	MIS-Match FRN	89
25	Mini-Max FRN	89
26	Capped FRN	89
27	Perceptual FRN	89
28	VRN structured FRN	89
29	terms and conditions of FRN	90
30	Euro Commercial Paper-ECP	90
31	Foreign currency convertible Bonds-FCCB	90
32	companies raised ECB	91
33	ECB under approved route	92
34	procedure for ADR and GDR	92
35	ADR level 1	93
36	ADR level II	93
37	ADR Level III	93
38	GDR-Global Depository receipts	94
39	role of different parties involved in launching of GDR	94
40	lead manger	94
41	other manger or subscriber to the issue	94
42	depository	95
43	custodian	95
44	clearing system	95
45	company	95
46	investor	95
47	steps involved in issuance of GDR	95
48	shareholders approval	95
49	appointment of lead manger	95
50	finalization of issue structure	95
51	documentation	95
52	launching	95
53	RBI regulations	96
54	Capital flows through ADR/GDR and ECB	97
55	advantages and disadvantages of external commercial borrowing	98
	unit 5:- Foreign investment in India
1	important directives of RBI	104
2	Automatic Route	104
3	government route	105
4	general permission of RBI under FEMA	105
5	two-stage reporting procedure for FDI	106
6	On receipt of money for investment	106
7	on issue of shares to foreign investor	106
8	transfer form Non-resident to non-resident	107
9	transfer by way of sale	107
10	transfer by way of gift	107
11	transfer form resident to non-resident	107
12	transfer by way of gift	108
13	reason for making the gift	108
14	issue price shall be either	109
15	investment through preference share	110
16	foreign direct investment in India	111
17	statistics about FDI	112
18	capital flows through FDI/FII	112
19	FDI in retail sector	112
20	foreign technical collaboration	113
21	RFC-Resident foreign currency	113
22	EEFC-Exchange earners foreign currency	113
23	general	114
24	hotel and tourism related industries	114
25	procedure for granting approval	115
26	documentation	116
27	standard conditions attached to approvals for technology agreement	116
28	portfolio investment	118
29	regulations	120
30	other investments	121
31	NRI/OCB overseas corporate bodies	121
32	foreign venture capital	121
33	Indian venture capital	121
34	venture capital fund	121
35	SBI registered venture capital	121
36	procedure for opening branch/project/liaison office	122
37	for permission/assistance	123
38	regulations regarding foreign institutional investors	123
	unit 6:- direct investment outside India
1	investment outside India	128
2	funding for overseas investment	129
3	criteria for investment under the automatic route	129
4	norms for investment under ADR/GDR stock swap scheme	131
5	schemes for overseas investment by partnership firms	133
6	restrictions for setting up second generation company	134
7	Indian party which has made a direct investment outside India will have to comply with the following	134
8	resident individuals in India can acquire foreign securities without prior approval in the following	135
9	provision for taxation	137
10	bilateral relief	137
11	unilateral relief	138
	unit 7:-Foreign Exchange Market
1	International Foreign exchange market	144
2	the market	146
3	the participant	146
4	information and communication system	147
5	payment system	148
6	foreign exchange market in India	149
7	foreign exchange market reforms	150
8	exchange rate regime	151
9	institutional framework	151
10	increase in instruments in foreign exchange market	152
11	liberalization measures	152
12	quotation exchange rate	152
13	direct and indirect rate	152
14	spot and forward rate	155
15	ready or cash	156
16	TOM	156
17	spot	156
18	arbitrage	158
19	basis point	158
20	bid rate	158
21	delivery rate	158
22	Eurocurrency	158
23	euro market	158
24	foreign exchange transactions	158
25	fixed date forwards	158
26	forward margin	158
27	forward rate	158
28	making a market	158
29	middle rate	158
30	nostro account	158
31	odd rate	158
32	offer rate	158
33	option forward	159
34	position	159
35	roll over	159
36	spread	159
37	swap	159
38	swap price or points	159
39	value date	159
40	vostro account	159
41	scenario of exchange rates in India	159
42	movement of exchange rate	163
43	demand and supply	163
44	interest rate	163
45	inflation	163
46	gross domestic product-GDP	163
47	balance of trade and balance of payment	163
48	unemployment	164
49	war, internal or external	164
50	political stability	164
51	intervention by Central bank of the country	164
52	speculation	164
53	sentiments	164
54	capital movements	164
55	exchange controls	164
56	foreign exchange reserves	164
57	external debt	164
58	cross rate	164
	unit 8:-foreign Exchange risks
1	causes of fluctuation	172
2	examples	172
3	transaction exposure	175
4	translation exposure	175
5	economic exposure	176
6	export sales	177
7	domestic sales	178
8	pure domestic sales	178
9	cost of imported input	178
10	cost of domestic input	178
11	forward contract	179
12	reserve bank directives	180
13	forward cover can be extended for the under-mentioned purposes	183
14	forward purchase cover	183
15	forward sales cover	184
16	period of delivery	185
17	cross currency booking	186
18	utilization of the forward cover	186
19	cancellation	187
20	calculation of exchange rates for forward contracts	187
21	cancellation, early delivery and roll-over of forward contracts	191
22	forward sale contract	192
23	forward purchase contract	194
24	early delivery	195
25	roll over charges	195
26	options and futures	196
27	options	197
28	call option	198
29	put option	200
30	premium amount	202
31	strike price	202
32	American option	202
33	European option	202
34	in the money/at the money/out of ht money	202
35	history and development	203
36	recent trends	204
37	key features of options and futures	205
38	underlying asset price	207
39	time before expiration	207
40	the rate of interest	207
41	volatility	208
42	pricing and analysis	208
43	pricing of options	209
44	underlying asset price	209
45	exercise price	210
46	time to expiration	210
47	interest rates	210
48	volatility	210
49	options and futures products today	210
50	interest rate options	211
51	foreign exchange options and futures	211
52	equity linked options	212
53	commodity linked futures and options	213
54	swaps	213
55	interest rate swaps	214
56	lowering financial cost	215
57	hedge exposure to interest rate risks	215
58	restructuring the debt in the balance sheet	216
59	amortizing and accounting swaps	216
60	forward swaps	216
61	reversible swaps	216
62	basis swaps	216
63	currency swaps	216
64	uses of currency swaps	217
65	lowering funding cost	217
66	entering restricted capital market	217
67	reducing currency risk	217
68	supply demand imbalances in the market	218
69	amortizing currency swaps	218
70	accreting currency swaps	218
71	floating-for--floating rate currency swaps	219
72	interest payment	218
73	asset swaps	220
74	country risk	220
75	use of country risk assessment	222
	unit 9:-Export/Import Finance
1	import finance	230
2	import finance through trust receipts/import loans	230
3	import financing through issuing L/C bank guarantee	230
4	export finance	231
5	sources of raising finance	232
6	own funds	232
7	friends and relatives	232
8	advance payment form buyer	232
9	trade credits from supplier	232
10	banks and financial institutions	232
11	Pre-shipment credit	232
12	Post-shipment credit	232
11	borrowing or lending in foreign exchange	238
12	explanation	240
13	schedule	241
14	short term loan scheme	242
15	borrowing under US Dollar Five Million scheme	242
16	borrowing under US Dollar ten Million scheme	242
17	borrowing by exporter/foreign exchange earner	243
18	long-term borrowings	243
19	scheme for raising loan from NRI on repatriation basis	243
20	RBI guidelines regarding exports	245
21	payment for export	245
22	authorized dealer 's obligation	247
23	authorized dealer may	248
24	all exporters	249
25	buyers credit	251
26	suppliers credit	251
	unit 10:-Facilities for residents and non residents
1	facilities for resident Indians	256
2	guidelines for travel related matters	257
3	EEFC Account	262
4	RFC Account	262
5	RFC Domestic Account	262
6	liberalized remittance scheme of USD	263
7	exchange earner's foreign currency-EEFC	265
8	limits	265
9	permissible capital account transaction	266
10	method of payment for investment	267
11	declaration to be furnished	267
12	schedule 2	268
13	export and import of currency	268
14	any person resident in India	269
15	currency declaration form	270
16	instruction for passengers	270
17	borrowing and lending in rupees	272
18	providing housing loan in rupees to non-resident	276
19	acquisition and transfer of immovable property outside India	277
20	realization ,repatriation and surrender of foreign exchange	278
21	facilities for nonresidents	279
22	exemption	281
23	other deposits made or held by authorized agents	283
24	acceptance of deposits by persons other than authorized dealer	283
25	deposits in certain other cases	283
26	nomination	284
27	schedule	285
28	eligibility	285
29	types of accounts	285
30	permitted credits	285
31	permitted debits	285
32	rate of interest	286
33	loans against security of funds held in the account	286
34	change of resident status of account holder	287
35	repatriation of funds to non resident nominee	287
36	miscellaneous	287
37	joint account	287
38	opening of account during temporary visit	288
39	operation by power of attorney	288
40	special series of cheques	288
41	temporary overdrawing	288
42	remittance abroad by resident nominee	288
43	tax exemption	288
44	reporting	289
45	foreign currency	289
46	eligibility	289
47	designated currencies	289
48	types of accounts	290
49	rate of interest	290
50	permissible debit/credit	290
51	rate for conversion of rupees into designated currencies	290
52	inland movement of fund	290
53	manner of payment of interest	290
54	loans/overdraft against security of funds held in the account	291
55	change of resident status of account holder	291
56	joint account, repatriation of balances etc	291
57	reporting	291
58	other features	291
59	schedule 3	292
60	non resident ordinary rupee-NRO account scheme	292
61	eligibility	292
62	types of accounts	293
63	permissible debit/credit	293
64	credits	293
65	debits	293
66	remittance of funds held in NRO account	293
67	grant of loan/overdraft	293
68	treatment of loans/overdraft in the event of change in the resident status of the borrower	294
69	joint accounts with resident	294
70	change of resident status of account holder	295
71	from resident to non-resident	295
72	from non-resident to resident	295
73	payment of funds to non-resident nominee	295
74	reporting of transaction	295
75	schedule 4	295
76	eligibility	296
77	period of deposit	296
78	rate of interest	296
79	reparability	296
80	renewal/transfer	296
81	gift	296
82	joint accounts with residents	296
83	loans/overdraft	296
84	nomination	297
85	reporting	297
86	schedule 5	297
87	non resident special Rupee-NRSR account	297
88	eligibility	297
89	application form	298
90	type of accounts	298
91	joint accounts	298
92	rate of interest	298
93	change of resident status of account holder	298
94	nomination facility	298
95	overdraft in NRSR account	298
96	miscellaneous	298
97	schedule 6	299
98	schedule 7	300
99	facilities for foreign nationals and foreign tourists	302
	unit 11:-institutions involved in international trade
1	reserve bank of India	308
2	RBI as a exchange control authority	310
3	authorized dealers-AD	311
4	money changers	311
5	other receipts	312
6	payment of import	312
7	other payment	312
8	delegation to AD	313
9	securities	313
10	foreign currency accounts	313
11	liberalization of exchange control	313
12	sodhani committee recommendation	314
13	exchange rate management	315
14	export import bank of India	318
15	functions of EXIM bank	319
16	incidental functions	320
17	operations	320
18	export credit guarantee corporation of India	323
19	ECGC	323
20	Need for credit insurance	323
21	credit insurance policies	324
22	SCR or standard policy	324
23	turnover policy	324
24	small exporters policy	324
25	specific shipment policy	324
26	buyer-wise policy	324
27	specific policy for supply contract	324
28	insurance cover for buyers credit and line of credit	324
29	services policy	325
30	construction works policy	325
31	maturity factoring	325
32	guarantees to bank	325
33	packing credit guarantee	325
34	export production finance guarantee	325
35	post shipment credit guarantee	325
36	export finance guarantee	325
37	export performance guarantee	325
38	export finance guarantee	326
39	special schemes	326
40	transfer guarantee	326
41	need for credit insurance	326
42	exchange fluctuations risk cover	326
43	ECGCturns 50	326
44	foreign exchange dealers association of India	327
45	directorate general of foreign trade	329
46	process of online application	329
47	online submission of application	330
48	guarantees for maintaining the denied entities list DEL	330
49	general instances leading to refusal of license	330
50	suspension, cancellation of a license	332
51	right to be heard before passing an order	332
52	DEL management procedures	332
53	international chamber of commerce	333