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                                                                          INDEX 1  :   INDEX 3

INDEX 2 : Different Categories of Instruments

INSTRUMENTS FOR FINANCING REQUIREMENTS
There are various instruments through which a venture can be financed, each of them have unique characteristics distinguishing them. All the available instruments can be classified into either equity or debt. There are also certain quasi-equity/ debt instruments, which have the characteristics of debt initially but are converted to equity at a later date.

For example: Warrants, Partially Convertible Debentures (PCDs) and Fully Convertible Debentures (FCDs) etc.

The Instruments of financing largely pertain to the following categories:
 
A. Equity Financing
     Introduction
     Types of equity instruments
      1. Equity shares (at par/ premium)
           1.1 Issue Guidelines for raising equity
               1.1.1 Initial Public Offer
               1.1.2 SEBI Guidelines for IPOs
               1.1.3 Public Offer By Small Unlisted Companies
               1.1.4 Requirements for listing of securities on a stock exchange
           1.2 Public Issue by existing listed companies
      2. Preference shares
      3. Depositary receipts (American and Global)
      4. Warrants

  Note on Venture Capital Financing
     1. Introduction
     2. Venture Capital in India 
     3. The Venture Capital Investment Process 
     4. Accessing Venture Capital
     5. Current Scenario

B. Debt Financing
     Characteristics
     Types of Debt Instruments
           a. Long term Debt/ Project Financing 
             1.Debentures and Bonds
               1.1 Different types of debentures 
               1.2 SEBI guidelines for debentures issued for public subscription
               1.3 Credit Rating
             2. Term loans
               Project Financing Process 
                2.1 Application and Preliminary Scrutiny
                2.2 Appraisal and Sanction
                      2.2.1 Market Appraisal
                      2.2.2 Technical Appraisal
                      2.2.3 Financial Appraisal
                      2.2.4 Managerial Appraisal
                2.3 Post Sanction – Documentation
                2.4 Disbursement and Monitoring
                      2.4.1 Tips to an entrepreneur seeking project financing
                2.5 Post Implementation Review

           b. Medium Term Debt
             1. Medium Term Loans
             2. Public Deposits
             3. Equipment Financing
                  3.1 Introduction to Equipment Financing
                  3.2 Equipment Financing in India
                  3.3 Characteristics of Equipment Financing
                    3.4 Procedure for availing Equipment Finance
             4. Vehicle Financing

          c. Short term Debt
            1. Commercial Paper
            2. Inter-Corporate Deposit

          d. Working Capital
            1. Cash credit
            2. Working capital loan
               3. Bills Financing 
            4. Export Financing

          e. Non-fund Financing
            1. Letter of Guarantee
            2. Letter of Credit
               3. Deferred Payment Guarantee 

                                                                          INDEX 1  :   INDEX 3                                           

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