Scam 1992 web series

After watching it, i have got some questions which increased when i googled few things. Someone help and explain this, weekend is here so you have time :smiley:

  1. What is money market?
  2. How are government bonds traded and why are they traded?
  3. What is debt market?
  4. How does leveraging work with these?
  5. How does bank receipt work?

Yes these things can be googled but would help much in layman terms.

1 Like

There are short term instruments like Commercial Papers (CPs), Certificate of Deposits (CDs), Repos etc. These trade on various platforms run of Clearing Corp (CCIL).
CPs, CD, Repo
https://www.ftrac.co.in/CP_SEC_MEM_MARK_WATC_VIEW.aspx

TREPS, etc
https://www.ccilindia.com/Pages/default.aspx

CCIL runs a platform called NDS OM where they are traded :: RBI NDS - Order Matching Segment (NDS-OM) ::. The auction happens on a platform called E-kuber run by RBI.

These G-Secs, T-bills, SDLs are now listed on the stock exchanges too but they don’t trade much.

Collective name for all the platforms where debt instruments like bonds trade. Most of the debt trading in India happens over the counter (OTC), basically means offline.

Borrow and invest

@mohitmehra these don’t exist now right?

2 Likes

what licenses are required to participate in OTC market.

Depends on what you do. If today, you as an individual investors go and buy bonds from a broker etc, the deal happens off-market (OTC). As for institutions NBFCs, Mutual funds, insurance companies, pension funds, PMS’, are the bigger players.

thanks , btw who are the bigger players in OTC derivatives market in india because all the insitutions you mentioned are prohibited or restricted to participatr in these , banks can only use them to hedge so who are the instituions providing liquidity to these products .

They are big players in OTC markets. Eventually, the volumes will move to a exchange operated platform like NSE/BSE RFQ.

@Bhuvan Harshad using bank’s money lying idle is his account for a couple of days is debatable and sounds smart but risky and is in grey area of legalities since the rules were not defined in black and white back then, do you think the system still has many loopholes which are yet to be fixed?

1 Like

What I decipher is there are always loopholes and hence here also they exist. All preexisting players of money market were using those loopholes, as said in episode 4 I think. But when someone exploits it to much higher limits that it becomes big elephant, it becomes difficult to hide, specially for a guy like harshad. May be big money is like hypnotising diamond :money_mouth_face::sweat_smile:.

Hey @Bhuvan 8.24GS2027 seems to be a good return considering today’s bank fd’s…can a individual like me invest in it…if yes how to do it ?

You can buy G-sec through Kite, just search for the symbol ‘824GS2027’, add it to your watchlist and place buy order like you do for any stocks. You can learn more about G-Sec here.

2 Likes

this thread on twitter reveals some unknown background stories going on at that time

Achint, the artist who created the soundtrack of the web series is live dissecting the tracks. \m/

1 Like

read bulls , bears and other beast all your quries get answerd