RBI – Inflation Index Securities –A Critical Appraisal

Authors

  • Pankaj Batra

Keywords:

behavior, rising inflation, Inflation bonds, PPF & Tax Free Bonds

Abstract

This research attempts to explain India as an upcoming Debt Market with the introduction of the new instruments like “Inflation Indexed Bonds” (both for the retail and the institutional buyers) followed by the explanation about recently issued Inflation Indexed National Saving Securities- Cumulative (IINSS-C) 2013 by RBI – their applicability in Indian Market. The purpose of the topic is to analyze the IINSS-C by reviewing the financial expert reports. A Discussion on Pros & Cons of these securities will help the investors in making investment decision.We have also commented upon the real value of the returns keeping in mind the Investor’s perspective (purchasing power) and his behavior in buying and evaluating such instruments. Lastly, we have compared Inflation bonds/securities with PPF & Tax Free Bonds in the rising inflation scenario. Efforts have been made to find the best possible option for investors in the present inflationary situation in India.

References

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Bach, G. L. and R. A. Musgrave (1941), “A stable purchasing power bond”, American Economic Review, 31(4), pp. 823-825.

Bagehot, W. (1875), “A new standard of value”, The Economist (20 November), reprinted in Economic Journal (1892), 2(7), pp. 472-477.

Bank for International Settlements (2005), “Zero-coupon yield curves: technical documentation”, BIS Paper No 25.

Barclays Capital (2006), “Global inflation-linked products: a users’ guide”, January.

Bardong, F. and T. Lehnert (2004b), “TIPS, break-even inflation, and inflation forecasts”, Journal of Fixed Income, December, pp. 15-35.

Barr, D.G. and J.Y. Campbell (1997), “Inflation, real interest rates, and the bond market: a study of UK nominal and index-linked government bond prices”, Journal of Monetary Econo

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Published

30-06-2015

How to Cite

Pankaj Batra. (2015). RBI – Inflation Index Securities –A Critical Appraisal. International Journal for Research Publication and Seminar, 6(2). Retrieved from https://jrps.shodhsagar.com/index.php/j/article/view/727

Issue

Vol. 6 No. 2 (2015): Volume 6 | Issue 2 | May-Jun 2015

Section

Original Research Article

License

Copyright (c) 2015 International Journal for Research Publication and Seminar

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