What are the various global sources of financing? Discuss the salient features ofdepository Receipts Scheme, 2014

Regarding global sources of financing, companies and governments can raise capital from various sources, including domestic and international markets.

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Here are some common global sources of financing:

  1. Equity Capital:
  • Initial Public Offerings (IPOs): Companies can raise capital by going public and offering shares to the public through IPOs.
  • Secondary Offerings: Companies already listed can issue additional shares to raise funds.
  1. Debt Capital:
  • Bonds and Debentures: Issuing bonds or debentures allows entities to borrow money from investors, and they pay periodic interest until the maturity of the bond.
  • Bank Loans: Companies can secure loans from domestic or international banks.
  • Syndicated Loans: Large loans that involve a group of lenders.
  1. Financial Instruments:
  • Derivatives: Financial instruments such as options and futures can be used for hedging or speculative purposes.
  • Structured Products: Customized financial products that combine various securities to meet specific investor needs.
  1. Private Placements:
  • Companies can raise capital through private placements by selling securities directly to institutional investors.
  1. Venture Capital and Private Equity:
  • Startups and growing companies often secure funding from venture capitalists and private equity firms.
  1. Government and Multilateral Agencies:
  • Countries can borrow from international financial institutions like the International Monetary Fund (IMF) or the World Bank.
  1. Foreign Direct Investment (FDI):
  • Foreign companies can invest directly in another country, either by establishing new operations or acquiring existing businesses.
  1. Grants and Aid:
  • Countries can receive financial assistance in the form of grants or aid from foreign governments or international organizations.
  1. Global Depository Receipts (GDRs) and American Depository Receipts (ADRs):
  • GDRs and ADRs represent ownership in a foreign company and are traded on international stock exchanges. They allow companies to access capital from global investors.

As for the Depository Receipts Scheme, 2014 in India, I recommend checking with the Securities and Exchange Board of India (SEBI) or other authoritative sources for the latest details on the scheme, as it might have undergone changes or updates since my last knowledge update in January 2022.