p notes,EFTA
STAND BY ARRANGEMENT BY IMF
Why in News
Pakistan’s new government’s eff orts to aquire international funds
The Stand-by Arrangement (SBA) provides short-term fi nancial assistance to countries facing
balance of payments problems.
Historically, it has been the IMF lending instrument most used by advanced and emerging market
countries.
Respond fl exibly to countries’ external fi nancing needs by supporting their adjustment policies with
short-term fi nancing.
All member countries facing actual or potential external fi nancing needs.
Most often used by advanced and emerging market countries, but low-income countries sometimes
use the SBA together with the Standby Credit Facility (SCF).
Typically covers a period of 12-24 months, but not more than 36 months.
P NOTES
Why in News
The slight drop in P-NOTE Investment Participatory notes, referred to as P-notes or PNs, are derivative instruments of underlying Indian
assets.
PNs, are fi nancial instruments required by investors or hedge funds to invest in Indian securities
without having to register with the Securities and Exchange Board of India (SEBI).
P-notes are among the group of investments considered to be Off shore Derivative Investments
(ODIs).
Participatory notes are legal in India yet the Securities and Exchange Board of India (SEBI) has
no direct jurisdiction over them but has attempted to control the market by imposing various
stipulations around foreign institutional investors (FII) in India selling these notes.
EUROPEAN FREE TRADE ASSOCIATION
Why in News
India poised to sign trade agreement with four-nation EFTA bloc
EFTA is the intergovernmental organisation
of Iceland, Liechtenstein, Norway and
Switzerland.
set up in 1960 by its then seven Member States
for the promotion of free trade and economic
integration between its members.
EFTA countries are not part of the European
Union (EU).
It was founded as an alternative for states that did
not wish to join the European community.
ENVIRON
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