Reliance Communications Interview Questions and Answers

Finance deals with managing money and investments, while accounting deals with recording and reporting financial transactions.

• Finance involves making financial decisions and managing investments, such as deciding how to allocate funds and analyzing financial data to make predictions.

• Accounting involves recording financial transactions, preparing financial statements, and ensuring compliance with financial regulations.

• Finance is more focused on the future and making strategic ...read more

Anti money laundering refers to laws and regulations designed to prevent criminals from disguising illegally obtained funds as legitimate income.

• Anti money laundering (AML) measures are put in place to detect and prevent money laundering activities.

• Financial institutions are required to implement AML programs to monitor and report suspicious transactions.

• AML regulations typically involve customer due diligence, transaction monitoring, and reporting of suspicious activities.

• Ex...read more

Documents required for corporate KYC include incorporation documents, business licenses, financial statements, and ownership information.

• Incorporation documents such as Certificate of Incorporation, Memorandum and Articles of Association

• Business licenses and permits

• Financial statements like balance sheets, income statements, and cash flow statements

• Ownership information including details of shareholders, directors, and beneficial owners

• Proof of address for the business premis...read more

Capital market refers to the financial market where long-term debt or equity-backed securities are bought and sold.

• Capital market is where companies and governments raise long-term funds through the issuance of stocks and bonds.

• It includes both primary market (new securities are issued) and secondary market (existing securities are traded).

• Investors in the capital market include institutional investors, retail investors, and governments.

• Examples of capital market instruments ...read more

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Types of derivatives include futures, options, swaps, and forwards.

• Futures are contracts to buy or sell an asset at a predetermined price and date.

• Options give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price and date.

• Swaps involve exchanging cash flows based on different financial instruments.

• Forwards are similar to futures, but are c...read more

Forwards are financial contracts where two parties agree to buy or sell an asset at a specified price on a future date.

• Forwards are customized contracts traded over-the-counter (OTC)

• They are used to hedge against price fluctuations in commodities, currencies, and financial instruments

• Settlement occurs at the end of the contract period, with no upfront payment required

• Forwards are not standardized like futures contracts, making them more flexible and customizable

The importance of Know Your Customer (KYC) regulations in preventing financial crimes.

• KYC regulations help financial institutions verify the identity of their customers.

• They also help in assessing the risk of illegal activities such as money laundering and terrorism financing.

• Compliance with KYC regulations is mandatory to prevent financial crimes and protect the integrity of the financial system.

Swaps are financial agreements between two parties to exchange cash flows or other financial instruments.

• Swaps are commonly used in hedging against interest rate or currency fluctuations

• Types of swaps include interest rate swaps, currency swaps, and commodity swaps

• Example: In an interest rate swap, one party may exchange a fixed interest rate for a floating interest rate