HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE(TM) provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospects individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE(TM) specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE(TM) expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.



HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE(TM) provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospects individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE(TM) specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE(TM) expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.



Money market instruments are used by corporations, governments, and individual investors seeking short-term funding or short-term places to invest money. There are several different varieties of money market instruments, but all have a few things in common.

What is the money market?
There are two types of financial markets. The capital markets, which consist of stocks and bonds, allow institutions to raise capital for long-term purposes, which is generally defined as more than one year. For example, a company may issue bonds in order to acquire another business, and will set the maturity date of those bonds for 10 years in the future.

On the other hand, the money market is for funding over short time periods of one year or less. Instead of obtaining funding for operating expenses or capital investment as they would with the capital markets, the money markets are often used to fund immediate operating expenses or to provide working capital.

From an investors point of view, the money market provides a safe place to invest without losing ready access to ones money. For example, an investor who needs liquidity and has little risk tolerance may put some of their money into Treasury bills.

Types of money market instruments
There are several different varieties of money market instruments, issued by both companies and governments. This isnt an exhaustive list, but some of the more common types of money market instruments include:

  • Short-term CDs
  • Bankers acceptances
  • Treasury bills
  • Commercial paper
  • Municipal notes
  • Federal funds
  • Repurchase agreements (repos)

Characteristics
Money market instruments have a few things in common. For starters, we already mentioned that they have short maturities, defined as one year or less. So, a six-month CD would qualify as a money market instrument, but a two-year CD would not. Money market instruments maturities can last from one day to one year, with three months or less being the most common.

In addition, money market instruments generally have the following two characteristics:

  • Liquidity -- Money market instruments are liquid investments, which means that they can readily be bought and sold for stable prices. There are active secondary markets for most money market instruments, so they can be easily sold before maturity.
  • Safety -- Because of their liquidity and the nature of the lenders, money market instruments are safer than many other types. For example, Treasury bills are backed by the credit of the US government. Money market deposit accounts are federally insured for up to $250,000. However, its important to mention that low-risk and risk-free are two different things. Some types of money market instruments do have some risk. Commercial paper, for instance, is only as safe as the company that issued it.

To sum it up, money market instruments are seen as a safe place to put money because of their high liquidity, short maturities, and safety relative to other types of investments.



Hinduja Group plans to focus on value creation for both promoters and shareholders, by listing companies it has incubated over the years.

Hinduja Leyland Finance has already filed for IPO with SEBI and Hinduja Realty Venture, with a huge land bank, is in the pipeline, followed by its digital company. From its grand plan to invest $10 billion in India two years back to the current focus on value creation, there has been a lot of changes in economy. Ashok Hinduja, Chairman of Hinduja Group of companies in India, spoke to BusinessLine on the Group’s future plan. Excerpt:

What is the progress in your $10 billion investment plan announced in 2014?

We are negotiating with various banks on infrastructure projects, including the power sector. Like any other investor, we expect a good haircut (discount) for distressed assets.

We are not in greed to take over any asset available cheap. The strategy is to take calculated risks.

We have huge plans for India, but not in a rush. Unfortunately, we see implementation is a problem.

For instance, our power project in Visakhapatnam that started in 2008, should have been completed in three years, but it took eight years.

We lost about one-and-a-half years because of Hudhud cyclone.

But even without the Hudhud impact, the project has taken five years.

Is the Group put off by slow progress in reforms?

Yes, to an extent. We saw a great push on reforms when the new government took over, and decided that we should move in.

The reforms announced were brilliant, but the concern is with the implementation. We are reviewing our investment plan and have decided to buyout existing projects. We are willing to negotiate if the seller takes a haircut (offer discount).

Instead of putting new projects from scratch, we may go in for buying out distressed assets. We see good opportunity in roof-top solar projects because we are directly dealing with the owners and there is no issue of dealing with discoms.

What are your suggestions to attract FDI in manufacturing sector?

India is a favoured investment destination. Investors do not like to invest money and wait endlessly for approvals.

What the government can do is create special purpose vehicles (SPVs) for each new project in different sectors, across different States. They should ensure the SPVs get the land clearances and requisite approvals. Any of the top international consultancies can be asked to carry out the feasibility study and IRR (internal rate of return) etc, of the projects. The government should then e-auction these SPVs to attract foreign investment.

It is important for the Centre to get State governments into confidence in each venture, because at the end of the day, an investor has to deal with them. Today, investors in manufacturing do not know how long it will take to get approvals and start manufacturing.

Apart from power are you considering any other sector?

We are looking at new innovative companies. We had invested in MindMaze, a neuro-medical device company. It has a product approved by the US FDA. We have installed the equipment in Hinduja Hospital in Mumbai.

Since the last one month, eight to nine patients have been using the device. The company is owned by an Indian settled down in Switzerland. We have a majority stake in the company; it has many products for defence, transport and entertainment sectors.

Do you think FDI in defence can flow with delay in awarding contracts?

In defence, one needs lot of guts to award contracts. During the previous defence minister (AK) Antony’s tenure, I do not think they awarded any contract.

So before him, whoever signed them whether it is right or wrong came into controversy.

Do you think e-auctioning of defence projects helps?

As a policy, it is good for the government. They will not get into any controversy. But see what happened in solar somebody bid it at #8377;4.31 and now he is not putting the plant. He spoilt the market for others.