FBIL
Financial Benchmarks India Private Ltd., owned jointly by FIMMDA, FEDAI and IBA and formed in December 2014, which develops and administers money market, government securities and foreign exchange benchmarks.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
- Alternative Investment FundA privately pooled investment vehicle registered with SEBI that raises money from select Indian or foreign investors under a defined investment policy — never from the public at large.
- Asset Management CompanyThe company that runs a mutual fund's schemes day to day — appointed by the sponsor or trustees with SEBI's approval, and paid a fee out of the scheme rather than a share of its profits.
- BackwardationA market in which the futures price sits below the spot price — the cost of carry says futures should be dearer, and something is overriding it.
- Base Minimum CapitalThe deposit every trading member must keep with the exchange purely to meet contingencies — it earns the member no trading exposure at all, and its size depends on what kind of trading the member does.
- Base priceThe reference price a contract starts each trading day from — the theoretical futures price on the day it is introduced, and the previous day's daily settlement price on every day after.
- BasisThe difference between the spot price and the futures price of an asset — positive when spot exceeds futures, negative when futures exceeds spot, and zero at expiry.
Where this is taught
- Series XIX-B · Chapter 8: Valuationintroduced here
- Series X-A · Chapter 5: Introduction to Indian Financial Marketsintroduced here
- Series V-D · Chapter 20: Exchange Traded Interest Rate Futuresintroduced here
- Series IV · Chapter 8: Regulatory Environment for Exchange Traded IRDintroduced here
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