Crypto as Securities of Special Class
- December 10, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Crypto as Securities of Special Class
Subject – Economy
Context – Treat crypto as securities of special class, says CII
Concept –
- The term “security” refers to a fungible, negotiable financial instrument that holds some type of monetary value.
- It represents an ownership position in a publicly-traded corporation via stock; a creditor relationship with a governmental body or a corporation represented by owning that entity’s bond; or rights to ownership as represented by an option.
- Securities are tradable financial instruments used to raise capital in public and private markets.
- There are primarily three types of securities: equity—which provides ownership rights to holders; debt—essentially loans repaid with periodic payments; and hybrids—which combine aspects of debt and equity.
- Publicly traded securities are listed on stock exchanges, where issuers can seek security listings and attract investors by ensuring a liquid and regulated market in which to trade.
What are government securities?
- Government securities or G-Secs are essentially debt instruments issued by a government.
- These securities can be issued by both the central government and the state governments of India.