Asset Reconstruction Company (ARC) also known as Securitization company in India helps to unlock the value of non-performing assets(NPA) in banks through Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.ARC is regulated by RBI as a Non Banking Financial Company(NBFC).

The Acid-test or quick ratio or liquidity ratio is the ratio of cash and other liquid resources of a company in comparison to its current liabilities.

Securities are short term (one year,Ex-Treasury bills) or long term (one year or more, Ex- Dated Government Securities)

Treasury bills are are short term debt instruments issued by the Government of India. They are also known as zero coupon securities and pay no interest. There are no treasury bills issued by State Governments.

Cash Management Bill (CMB) is the most flexible instrument for a Central Bank because it can be issued when needed, allowing the Central Bank to have lower cash balances and issue fewer long-term notes.

Money market instruments include call money, repos, Treasury bills, Commercial Paper, Certificate of Deposit and Collateralized Borrowing and Lending Obligations (CBLO). It helps the Government, business units and other organizations to meet their short-term requirement.

Indian Money Market consists of RBI, Commercial Banks, NBFCs and financial institutions like LIC, GIC etc., It provides a market for credit instruments such as bills of exchange, promissory notes, commercial paper etc.,

Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note by the Companies.

Fixed Income Money Market and Derivatives Association of India (FIMMDA) was incorporated as a Company under section 25 of the Companies Act,1956 on June 3rd, 1998. FIMMDA includes Nationalized Banks, State Bank of India and its associate banks. It also includes private sector banks such as ICICI, HDFC etc.,