Financial Securities, Instruments and Derivatives
The complex corporate capital structures spreading across the globe which will be governed by several local laws of the respective countries and International investors eyeing for cross-border investment opportunities has led to an increased need of transparent and robust Valuation of resultant Complex Financial Instruments.
Valuation of Financial Securities and Derivatives services entails determining
- Fair Value of equity instruments
- Debt instruments (including CCDS, OCDS),
- Derivatives (option and future contracts) and
- Embedded derivatives (convertible bonds / preference shares)
When it comes to financial instruments, we not only limit ourselves to offering valuation services rather we go beyond onto helping clients better understand the implications of intricate financial decisions using our in-depth understanding of the nature of the instruments.
We dedicatedly study, evaluate and analyse the nitty gritties involved within the terms of complex financial securities and prefer to consider the recommendation and guidance provided by Ind AS 109 while valuing equity and derivative and Fixed Income Money Market and Derivatives Association of India (FIMMDA) for Debt instruments.
We have rich a experience and a team of highly skilled and experienced professionals, who are well versant with various models which can be adopted for fair valuation of Financial Securities and Derivatives depending upon the nature and features of options, some of the most common ones being:
- Black Scholes Merton Model
- Binomial Model
- Binomial Lattice Model
- Simulation Mode