Sources of Business Finance Test - 3

• An unsecured debt is an obligation or debt that does not have specific property (like your house or car) serving as collateral for payment of the debt. If you fail to make payment on an unsecured debt, the creditor cannot take any of your property
• As the debt raised through commercial paper is totally unsecured, the large and creditworthy firms having good credit rating can issue the CP.

Trade credit is a short term finance provided by one firm to another for routine business transactions.

GDR is issued in more than one country for raising shares globally through various stock exchanges.

These receipts are issued by a non US company to Americans to obtain foreign capital. ADRs are bought and sold in American markets like regular stocks.it can be issued only to American citizens and can be listed and traded on a stock exchange of USA.

• Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 as a public limited company under the Companies Act.
• ICICI assists the creation, expansion and modernisation of industrial enterprises exclusively in the private sector. The corporation has also encouraged the participation of foreign capital in the country.
• The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry.
• In the 1990s, ICICI transformed its business from a financial institution limited to development projects to a diversified financial services group.
• At Present ICICI is merged with ICICI Bank. ICICI (Industrial Credit and Investment Corporation of India) is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra, Indian, with its registered office in Vadodra.

• Industrial Finance Corporation of India (IFCI) was established in July 1948 as a statutory corporation under the Industrial Finance Corporation Act, 1948. It was the first development finance institution in the country to cater the needs of the industrial sector.
• Its objectives include assistance towards balanced regional development and encouraging new entrepreneurs to enter into the priority sectors of the economy. IFCI has also contributed to the development of management education in the country.
• The constitution of IFCI was changed in 1993 from a statutory corporation to a company under the Indian Companies Act, 1956. Subsequently, the name of the company was also changed to "IFCI Limited" with effect from October 1999.

• Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 as a public limited company under the Companies Act.
• ICICI assists the creation, expansion and modernisation of industrial enterprises exclusively in the private sector. The corporation has also encouraged the participation of foreign capital in the country.
• The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry.
• In the 1990s, ICICI transformed its business from a financial institution limited to development projects to a diversified financial services group.
• At Present ICICI is merged with ICICI Bank. ICICI (Industrial Credit and Investment Corporation of India) is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra, Indian, with its registered office in Vadodra.

• LIC was set up in 1956 under the LIC Act, 1956 after nationalising 245 existing insurance companies.
• LIC mobilises the community’s savings in the form of insurance premia and makes it available to industrial concerns, both public as well as private, in the form of direct loans and underwriting of and subscription to shares and debentures

• Unit Trust of India was established by the Government of India in 1964 under the Unit Trust of India Act, 1963.
• The basic objective of UTI is to mobilise the community’s savings and channelise them into productive ventures.
• it sanctions direct assistance to industrial concerns, invests in their shares and debentures, and participates with other financial institutions.