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Introduction to Dimsum Bond

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Dim sum bonds were initially issued in Hongkong and were named after renowned cuisine in Hongkong, dim sum. In 2007, the Chinese development bank first issued the dimsum bond. Till 2010, only entities from Hongkong and China could issue these bonds. After this, changes in policy by the Chinese government and deregulation included foreign corporations and entities, e.g, McDonald’s to issuing renminbi-denominated bonds. China construction bank was the first bank to issue dimsum bonds in London in 2012 followed by non-Chinese banks such as HSBC and Banco do Brasil.

How Does it Work?

In order to raise money in assets that are denominated in the Chinese renminbi, international investors may participate in dimsum bond markets. foreign companies who are willing to invest in debt issued in renminbi or yuan but are not able to do so due to strict debt regulations incorporated by the Chinese government can do so by investing in dimsum bonds as these bonds do not require approval from people republic of china (PRC) or Chinese/Hongkong authorities.

Synthetic Dimsum Bonds: Bonds that are issued in the Chinese renminbi but settled in some other currency such as EUR are called synthetic dimsum bonds or RMD bonds.

Features of Dimsum Bonds

Some of the features are given below:

Investors: The investor base for dimsum bonds is very less as compared to US bonds. Most investors of dim sum include private banking clients, international investors, and commercial banks.

Credit Rating: Credit rating is usually market-driven for dimsum bonds and is similar to other foreign bonds issued by Chinese entities and is not affected by currency.

Liquidity: The liquidity of dim sum bonds is still moderate.

Maturity: Maturity for dim sum bonds is mostly 3 years or less.

Security: Investors’ security is still being evolved and is quite low compared to the US bond market.

Components of Dimsum Bond

Below are the components:

Face Value: the Par value or principal amount that the bond issuer has to repay the investor at maturity or at the expiration of the contract.

Coupon Amount: the amount that the bond issuer will pay on each coupon date to the investor. sometimes instead of the coupon amount, the coupon rate is provided by the issuer.

Coupon Amount = Coupon Rate (in %) * Face Value

Coupon Dates: the dates on which the bond issuer will pay the Coupon amount to the investor. In the US, usually semi-annual coupons are paid, i.e., a bond issuer will pay the Coupon amount to the bondholder after every 6 months.

Maturity Date: the date on which the bond will mature or the date on which the contract between the bond issuer and bondholder ends and the issuer will pay the investor the face value of the bond.

Issue Price: the original price of the bond at which the bond issuer sells the bond.

Yield to Maturity: The expected rate of return if a bond is held until it matures.

Bond Valuation

The bond price is the present value of all the future cash flows generated by a bond. It refers to the sum of the present values of all coupon payments plus the present value of the face value at maturity. bond price(p0) for a coupon bond with coupon amount (c ), face value (f), maturity (t), and yield to maturity (r) can be calculated as:

Source: Slide Player

Factors Affecting Dimsum Bonds

Yield: The continuous raise in demand for dimsum bonds has led the bond yield to strangely low levels with the credit spread declining from positive to negative in 2023.

Hedging Costs: Costs including hedging affects overall funding costs, which often impact the issuance of dim sum bonds.

Currency Volatility: The abrupt ups and downs of Chinese yuan can impact the issuance of dim sum bonds.

Advantages of Dimsum Bonds Advantages

Diversified Issuers: Due to no restrictions on the type of issuer, anyone from small investors to multinational companies can issue dim sum bonds. NBFCs and real estate developers are also issuing dimsum bonds.

Chinese Renminbi Exposure: An investor who is interested in raising funds in renminbi can use dimsum bonds as one way to gain exposure.

Low Coupon Rate: Due to high credit quality and growing demand for renminbi bonds, the coupon rate is quite low as compared to other high-rated bonds.

Hedging: If an investor has already invested in the Chinese economy and wants to reduce exposure to exchange rate risk, he can simply do it by hedging. investing in renminbi by using bonds can be suitable to hedge the exposure.

Economy Risk: Investing in dim sum bonds brings up an additional risk due to government or market instability of the Chinese economy. Sudden changes in political situations may incur losses.

Risks that are Hard to Quantify and Correlated: Dimsum bonds may be used to raise exposure in the renminbi. abrupt changes in currency value and in cases of economic crisis, it gets difficult to quantify the risk associated and deduce the correlation among several factors.

Volatility: The issuance of dim sum bonds has decreased in the recent past due to high volatility and China’s low economic growth.

Availability of Panda Bonds in the Market: Panda bonds are almost similar to dim sum bonds except that panda bonds can be issued in China by foreign entities. In this case, domestic investors are the main target for foreign issuers, while in the case of dimsum bonds, international investors are the major investors.


Dim sum bonds are similar to euro bonds and are issued outside of China but denominated in the Chinese renminbi and also settled in RMB. Dimsum bonds are very much suitable for investors who want to raise funds in the renminbi. but at the same time, dimsum bonds bring up the currency and country-specific risks.

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What Are Surety Bonds, And How Do They Work?

For small business owners, surety bonds are a useful tool. They’re a legally enforceable guarantee that allow one party to recoup payment if another party doesn’t fulfill an obligation. Surety bonds have varied applications in the marketplace, like contractors making bids or license requirements. Here’s a look at the most common surety bond types applicable to small business owners, along with how they work and how to tell if you need one.

What are surety bonds?

Surety bonds are legally enforceable three-party written agreements that guarantee compliance, payment or performance. 

There are many surety bond types, but for small businesses, generally, a neutral third party (the surety), acting as the bond’s issuer, guarantees that one party (the principal) will perform the terms of the contract for the other party (the obligee). 

If the principal doesn’t fulfill the obligation, the obligee can file a claim. If the claim is deemed valid, the surety will pay damages, and then the principal will repay the surety. 

A surety bond’s three parties

Here are the three main parties involved in a surety bond:

Principal. Purchases the bond that guarantees they’ll fulfill an obligation for compliance, payment or performance.   

Obligee. The party that requires the principal to buy the surety bond to guarantee the obligation’s fulfillment. The obligee can be the principal’s client or customer; a court; or a local, state or federal government organization.

Surety. The insurance company or surety company acts as a neutral third party in the transaction. The surety guarantees that the principal will perform the obligation and sends a bond certificate to the obligee. If the principal fails to deliver and the obligee files a claim that is deemed valid, the surety company will pay out the claim to the obligee. 

Surety bonds and how they work

Surety bonds help small businesses win contracts by providing the customer with a guarantee that the business will complete the work, according to the U.S. Small Business Administration (SBA). Many public and private contracts require surety bonds, and the SBA guarantees surety bonds for certain surety companies. This allows those companies to offer surety bonds to small businesses that might not otherwise meet the criteria to get a surety.

Aside from strict financial guarantees, some surety bonds are used with contractor agreements, providing guarantees on compliance with permit requirements and licensing on the local, state or federal level. 

Other contract surety bonds required by many project owners and government agencies guarantee that a project or service will be completed as per the agreement’s stipulations and with all required payments made to subcontractors or suppliers.

The SBA guarantees contract bonds but not commercial bonds. The agency explains: “Contract bonds ensure the terms of a specific contract are fulfilled. Commercial bonds ensure all applicable laws and regulations are followed. Government agencies require certain companies or individuals to obtain commercial bonds, which protect the general public against things like fraud.”


Besides surety bonds, contractors should ensure they have the right contractor insurance policies to protect them.

Major types of surety bonds

Just like there are different types of insurance policies, there are also various types of surety bonds. According to the National Association of Surety Bond Producers (NASBP), these are the most common surety bond types:  

Bid bonds. These bonds guarantee that a contractor has submitted a bid in good faith, will honor the bid’s terms, and will provide the required performance. Bid bonds are usually 5%, 10% or 20% of the amount bid. Bid bonds are a way to prevent contractors from submitting low bids to get a job and then raising their prices.

Performance bonds. Performance bonds protect a business owner from financial loss if the contractor fails to perform the contract in accordance with its terms and conditions, including its specifications and plans.

Payment bonds. A payment surety bond guarantee assures that the contractor will pay specified subcontractors, laborers and material suppliers associated with the project.

Other surety bonds

These are some other surety bonds used in small business projects and operations:

License bonds (permit bonds). Local and state governments often require license bonds when a contractor or business offers a service to the public. This type of bond guarantees the business owner will conduct their business in compliance with all local, state and federal regulations. License bond costs are typically 1% of the total bond amount. 

Construction bonds. A construction bond, or contractor license bond, is a type of license bond required to start a construction project. It provides assurance that the contractor will perform in accordance with the construction agreement.

Completion bonds. These offer assurance that a contractor will complete a project on time, within budget and free of liens. Otherwise, a claim can be filed to compensate the obligee.

Payment bonds. Payment bonds guarantee that the principal will pay for all associated work in connection with the contract, including subcontractors and all required materials and supplies.

Ancillary bonds. Ancillary bonds guarantee that the principal stands by its work and will provide maintenance or corrections in a timely manner.

Did You Know?

Insurance companies often write surety bonds, but surety bonds don’t perform like policies you’d get from the best liability insurance providers, where an aggrieved party files a claim. After a principal buys a bond, the insurance company doesn’t assume the risk. The principal still holds all the risk and has to repay the surety if the company pays out a claim related to the principal not delivering upon the agreement.

Who needs a surety bond?

Various small business types will deal with surety bonds. Some surety bonds fulfill a professional license (under commercial surety bonds), and some enforce construction terms (under contract surety bonds). 

In general, any business that works under a contractual agreement with another party, or provides a public service, could be required by the obligee to obtain a surety bond. 

According to providers, common surety bonds (commercial surety bonds) used within professional industries to meet certain obligations, such as obtaining licenses (other than construction as discussed earlier in this article) include the following:

Auto dealer license surety bonds

Real estate broker surety bonds

Credit repair service surety bonds

Mortgage broker and loan originator license surety bonds

Public insurance adjuster license surety bonds

How long does it take to get a surety bond?

The time it takes to get a surety bond depends on the entity providing the bond. However, applicants that use online providers with quick quotes and streamlined applications can apply and get approved on the same day if they have their documents ready. They can receive the surety bond as soon as the next day. 


When applying for a surety bond, be sure you know what bond the obligee is requiring, as well as the name of the business, the number of years in business, and the names and addresses of the parties in the agreement. Also make sure you have your Social Security number on hand.

How long does a surety bond remain valid?

A surety bond’s validity period depends on the specific bond needed. Many surety bonds have a set term period with an expiration date, which can be renewed for another term with a reevaluation of the principal and credit risk. This is common for surety bonds needed for professional licenses or permits. 

Typically the set time period ranges from one- to two-year terms for these types of bonds, and the premium could increase or decrease upon reevaluation of the principal. 

With contract bonds, the principal must renew the bond until the obligee releases them, usually at the job’s satisfactory completion. Upon renewal, there’s generally no reevaluation of the principal. During renewal, the principal must pay the premium, or the account could end up in a collections department. After the bond is renewed, it’s active for 12 months.

How much do surety bonds cost?

Although prices may vary, the surety bond’s premium is usually a percentage of the bond’s coverage amount. Once underwriters review your application, they’ll assign it a risk category with an associated premium amount. 

Surety Bonds Direct says its final premium amount is determined by several factors:

The coverage amount required by the bond

The type of surety bond

The applicant’s credit score

The applicant’s financial history

Several bond providers note that quoted contract bond rates usually reflect the bond’s size and the contractor’s financial stability, experience and reputation. Typically, contract bonds cost between 1% and 3% of the contracted amount or, for larger bonds, are tiered based on the size of the bond.

Surety Bonds Direct estimates that commercial license and permit bonds have a statutory amount (coverage) that usually ranges from $5,000 to $100,000. According to the bond provider, contract surety bonds typically range from about $50,000 to several million dollars based on the size of the construction project to be bonded. The states with the most surety bond requirements are California, Florida and Texas.

Finding a surety provider

To help you find a surety provider, the NASBP offers the online Surety Pro Locator, where you select your state or country to find bond producers near you.

Also, the SBA guarantees contract surety bonds for private surety companies. To learn more and find out if your small business qualifies (up to $6.5 million for non-federal contracts and up to $10 million for federal contracts), visit the SBA surety bonds page, where you can also find authorized agents. 

When searching for a surety bond provider, consider the financial health of the company providing your bond before making a purchase. AM Best Rating Services is a great place to find surety bond ratings. Bonds with an A++ or A+ have superior financial health and the ability to meet their obligations. 

How To Record Bonds Payable Accounting?

Definition of Bonds Payable

Bonds payable are defined to be type debt which are generally for a long term and are issued by corporates, governments, secured institution, etc. i.e. in this agreement the issuer of the bonds makes a formal agreement to pay interest to the bond holder semi-annually and to make the payment of principal or the matured amount on a specified future date.

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Explanation How to Record Bonds Payable Accounting?

There are three different kinds of scenarios when it comes to accounting for bond payable and those are as follows:

Par Scenario

Premium Scenario

Discount Scenario

1. Par Scenario

Suppose XYZ Ltd. is a public limited company and is in a phase to issue corporate bonds to raise capital for expansion. We assume the market rate existing is 10% and the company also issues a 10% rate bond. Accounting for the same will be as follows:

Period interest will be given at 10% rate semi-annually which is recorded as:

Payment of face value on maturity:

2. Premium Scenario

Suppose XYZ Ltd. is a public limited company and is in a phase to issue corporate bonds to raise capital for expansion. We assume the market rate existing is 8% and the company is issuing a premium rate of 10% rate bond. The accounting for the same will be as follows:

Period interest will be given semi-annually which is recorded as:

Payment of face value on maturity:

3. Discount Scenario

Suppose XYZ Ltd. is a public limited company and is in a phase to issue corporate bonds to raise capital for expansion. We assume the market rate existing is 10% and the company is issuing a discount at a rate of 8% rate bond. The accounting for the same will be as follows:

Period interest will be given semi-annually which is recorded as:

Example of Bonds Payable Accounting

Bonds are generally priced or denominated as $1000s. Suppose a company to raise capital has issued bonds in open market. The face value of each is $1000 and now if the bonds gets sold at a market price of 100 only it means the bond has got sold at par and 100% of its face value at which it was issued. The other circumstances can be the bond getting sold at a market price of 105 which will generate $1050 of cash i.e. 1050-1000 = $50 which we call as premium and, in these cases,we say the bond has got sold in premium. Lastly, one more scenario can prevail which we say bond getting sold at discount i.e. the same bond is getting sold at a discount market rate of 9, which will provide $950 cash to the company. The differentiating factor here is the interest rates. The interest rate offered in cases of bond issued at part is same as the prevailing market rate and the interest rate applicable in bond issued at the premium is generally more than the market rate. Lastly, in cases of bind issued at a discount the interest rate offered is less than what the market offers, and therefore the bond is issued at a discount to compensate the interest rate factor.

Amortizing Bonds Payable Accounting

The amortization formula which is applicable in terms of bond payable accounting is as follows:

Amortization = (Bond Issue Price – Face Value) / Bond Term

There are generally two ways to calculate the bond’s cost amortization which are as straight-line method and the effective interest rate method. As the interest rates changes in the market, the interest which a corporation is supposed to give on a bond is at times higher or lower than the interest rate it actually gives to the investors. Bond discount is a condition when an investor pays less than the face value of the bond which represents a higher interest rate than what for the bond was issued for. The bond premium is a scenario when investors pay more for the bond which represents a lower interest rate than what for the bond was issued for. In the cases of bonds issued at discount the difference between the face value and the interest rate being given to the bond holders proves to be an added n expense for the company. This is why it is then called an amortized cost.

Advantages of Bonds Payable Accounting

Tax benefits can be enjoyed when bonds payable are issued.

It helps in raising emergency funds required for expansion or capital enhancement.

Bonds are safer instrument backed up by the government or corporates.

Bonds are also rate by credit agencies based on their risk profile.

Bonds are generally less volatile and less risky than stocks.

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How Do You Clean Up Content Without Affecting Rankings?

Today’s Ask An SEO question comes from Neethu, who asks:

My website is almost 20 years old. There are lots of content. Many of them are not performing well. How do you effectively clean up those content without affecting rankings?

Contrary to what some SEO pros tell you, more content is not always better.

Deciding what content to keep, which content to modify, and which content to throw away is an important consideration, as content is the backbone of any website and is essential for driving traffic, engagement, and conversions.

However, not all content is created equal, and outdated, irrelevant, or underperforming content can hinder a website’s success.

Run A Content Audit

To effectively clean up your website’s content, the first step is to conduct a content audit.

This involves analyzing your site’s content and assessing its performance, relevance, and quality.

You can use various metrics such as traffic, bounce rate, and engagement to identify which pages are performing well and which ones are not.

Once you have identified the pages that are not performing well, it’s important to prioritize them based on their importance to your website.

Pages that are not driving traffic or conversions may need to be prioritized over pages that are not performing well but are still important for your site’s overall goals.

Distinguish Evergreen Vs. Time-Sensitive Content

Additionally, it’s important to consider whether a page is evergreen or time-sensitive.

You can update or repurpose evergreen content over time, while you may need to remove time-sensitive content.

After prioritizing your content, you can decide what action to take with each page.

For pages that are still relevant but not performing well, you may be able to update them with fresh information to improve their performance.

For pages that are outdated or no longer relevant, it may be best to remove them altogether.

When removing content, implement 301 redirects to relevant pages to ensure that any backlinks pointing to the old page are not lost.

Monitor Your Stuff

It’s important to monitor your search engine rankings after cleaning up your content to ensure your changes do not negatively impact your SEO.

But don’t just look at rankings.

Content optimization projects can affect traffic, conversions, navigation, and other items that impact your overall search engine optimization efforts.

Watch Google Analytics closely. If there are traffic declines, you may need to re-evaluate a few changes.

It’s important not to have a knee-jerk reaction, however.

Before you throw out your optimization efforts, be sure that the changes you made are actually what is causing a drop – and make sure those changes are stable within the search engines index.

Remember that it may take some time for your rankings to stabilize after a content cleanup, so it’s important to be patient and monitor your website’s performance over time.

These pages may benefit from content updates or optimization to improve their performance.

Additionally, consolidating pages that cover similar topics into one comprehensive page can improve user experience and help avoid keyword cannibalization.

In Summary

Cleaning up your website’s content is crucial for maintaining a high-quality site.

By conducting a content audit, prioritizing your content, and deciding whether to keep, update, or remove the content, you can effectively clean up your site without negatively impacting your rankings.

Remember to monitor your rankings and be patient as your site adjust.

More Resources: 

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Know Your Supplier (Kys) In 2023: Key Components & Checklist

Supplier-related disruptions may affect supply chain stability and resilience immensely. So, a supplier network should be trustable both ethically and financially. For example, vendor fraud is one of the most disruptive vendor-related problems in supply chain. According to PwC, 19% of economic crimes and frauds are committed by vendors/suppliers.

To avoid supplier-related disruptions, it is important that you know your suppliers well enough by implementing supplier risk assessments. Know Your Supplier (KYS) programs aim to ease this necessary step for supply chain executives. In this article, we will focus on the main components of a KYS program and provide a checklist for its implementation.

What is a KYS Program?

KYS is a procedure in B2B businesses, the equivalent of Know Your Customer (KYC) used in B2C businesses. Both KYS and KYC are programs implemented to prevent any third-party risks. The aim of KYS is to minimize the possible risks that your vendors can impose on your business, by making you more familiar with them. So, it offers supplier risk management which is a must of a successful supply chain.

Source: PwC

A KYS program may ensure that suppliers supply products that meet the requirements of your company. Therefore, businesses can increase productivity and lower costs through the KYS program.

4 “Know”s of a KYS Program

For implementing a competent KYS program, you should follow these 4 “know” rules:

1. Know your supply chain partners 

You should know who your suppliers are, and what their business values and models are, to decrease any supplier risk that can potentially harm your business. For a more detailed account of how to recognize and minimize supplier risk, you can take a look at our article on the topic.

2. Know what you buy 

You should be certain that you are familiar with the products in your supply chain, where they come from, under what conditions they are produced, etc. Also, you should be aware of the impacts of these products on society and the environment. ESG risks caused by your suppliers can be more harmful to the reputation of your business than you think. To improve ESG standards sustainability of your work, check our article on ESG reporting best practices.

3. Know what’s happening in your supply chain 

As a business leader, you should be monitoring all the transactions happening between you and your suppliers. Moreover, you should control whether there are any problems or risks in any process within the supply chain, to preclude any snowball effect in the long run. Supply chains are increasingly switching to new technologies like blockchain to facilitate the monitoring of these supplier transactions. You can benefit from the latest technological solutions like the implementation of blockchain in the supply chain for achieving this end.

4. Know how others can assist 

Businesses cannot handle all the monitoring work by themselves. Noticing when and where you need assistance from experts is also part of a successful business. For a successful KYS optimization, investigate and reach out to expert ideas.

A Checklist You May Consider

These constitute the outlines of a KYS program. However, you should also check whether more detailed steps are under control. Here is a checklist of concrete steps you can take to better know your vendors:

Conduct due diligence during the onboarding of your suppliers. This is especially crucial for preventing any vendor fraud and also avoiding doing business with firms that can be on the sanctions list or doing business with sanctioned companies and countries.

Implement automated know-your-vendor technology to get control of the vendors by automatically checking revised sanction lists. Vendor management software (VMS) is helpful for this, especially if it is AI/ML driven. For selecting the best vendor in the VMS market, check our article on VMS’s key features and top vendors.

Assess risks that can be caused by your current suppliers. You should monitor their transactions, financial, compliance, and ESG risks on a regular basis. 

Check the performance of your current and potential suppliers. It is important that the quality of their work meets your business expectations.

If you have other questions about the KYS program, feel free to reach out:

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.





Oral And Documentary Evidence: Definition And Meaning

The administration of justice is thought to be supported by the existence of evidence. The British introduced the Indian Evidence Act, of 1872. The Hindu Dharma Shastra must be cited as the concept of proof that may be traced back to the ancient Hindu period. Up until this moment, the fundamentals of evidence were founded on the indigenous and conventional legal frameworks of the various Indian social groupings.

In its original meaning, the word “evidence” denotes a state of obviousness, also known as simplicity or obviousness. However, it also applies to objects that frequently offer or generate a proof. The words and actions of the witnesses in court constitute “evidence” under English law. The “facts of the case” are those aspects of a legal matter that are undisputable or not in question. A judge or jury is tasked with being a trier of such facts, independent of any other facts (disputed ones). Factual disputes are resolved using both evidence and regulations.

What is Oral Evidence?

Oral evidence is evidence that is limited to spoken words, gestures, or movements. It is proof that the witness has personally heard or seen Oral testimony must always be direct or affirmative, i.e., it must establish the key fact at issue. Oral evidence is defined in Section 3 of the Evidence Act of 1872 as “any statements which the court authorizes or requires to be made before it by witnesses, about matters of fact under inquiry.” Oral evidence is anything that is admitted in court regarding the investigation and expressed by any witnesses who are called during the trial. The word “oral” denotes something spoken or expressed by mouth.

Section 59: Proof of Facts by Oral Evidence

With the exception of the contents of documents and electronic recordings, all facts and events can be shown through oral evidence by speaking or expressing oneself. It is impossible to prove the contents of documents and electronic recordings by spoken testimony.

Section 60 – Oral Evidence Must Be Direct

It includes −

This is the fundamental rule that must be followed for any evidence to be accepted in court.

All requirements under Section 60 of the Indian Testimony Act must be met if any oral evidence is to be admitted.

There is a direct relationship between oral testimony and Section 60. The other must be accomplished in order to carry out the first.

The fundamental tenet of Section 60 is that any evidence that is considered must be direct.

The word “direct” excludes all types of hearsay because the word “must” Serves as its primary constituent.

Oral testimony requires directness from every witness.

What is Documentary Evidence?

Documentary evidence is defined in Section 3 of the Indian Evidence Act as Documentary evidence refers to all materials that are brought before the court for review in order to prove or show a fact. This concept also covers any electronic documents submitted to the court. Documentary evidence is covered under Chapter 5 of the Indian Evidence Act. This chapter includes Sections 61 through 90A. The broad standards for proving documentary evidence in various circumstances are covered by Sections 61 to 73A of the Act, particularly Sections 61 to 66, which provide solutions to the question of how the contents of a document are to be proven.

Types of Documentary Evidence

There are two categories of documentary evidence −

Public Documents (Section74 of Evidence Act) Private Documents (Section75 of Evidence Act)

Private documents include correspondence between opposing parties to a lawsuit, such as letters, agreements, emails, etc.

Since there is a much lower likelihood that public papers will be tampered with, courts tend to accept them more readily than private documents. Furthermore, it is possible to track the origin of public papers to a trustworthy source for validation, if necessary.

Primary Evidence

The word “primary evidence” is defined in Section 62 of the Indian Evidence Act of 1872. In other words, primary evidence is the type of proof that, in the eyes of the law, provides the greatest certainty about the fact in question. It is also known as the best or highest evidence. The original document itself, if it exists and is available, should be produced in its original form to verify the terms of a transaction that is evidenced in writing. Documents must only be proven by their primary evidence, according to Section 64. However, Section 65 stipulates a few instances in which papers may also be supported by supporting evidence.

The original document presented to the court for review serves as primary evidence. The following unique situations are mentioned in Section 62 Explanations −

When a paper is carried out in sections in these situations, every component of the document serves as its main proof. When a document is signed in counterparts by one or more of the parties, each counterpart serves as the main piece of evidence against those parties. The difference between a document being executed in parts and a document being executed in counterparts is that a document executed in parts will have all parties sign each part, whereas a document executed in counterparts will only have certain parties sign each part.

According to the second interpretation, each document that is produced through a single consistent method, such as printing, lithography, or photography, serves as the main source of proof for the information included in the others. The primary evidence for the rest of the copies, but not for the original document, is used when numerous documents are produced from an original in the same process. One of the copied placards, for instance, is considered to be the primary evidence for the contents of the rest of the copied placard but not for the original placard from which it was copied if multiple placards are generated by copying from a single original placard.

Secondary Evidence

The word “secondary evidence” is defined in Section 63 of the Indian Evidence Act of 1872. The secondary evidence is the topic of this section. It discusses five different items that are recognized as supporting evidence. As follows −

Certified copies of the papers

Copies produced mechanically from the original Here, the mechanical process is crucial since, to some extent, it ensures that the copies are free from any type of manipulation or error. Earlier, before the printing press or the xerox machine, the copies were prepared by the court clerk manually, which resulted in numerous mistakes and falsifications. This section includes a mechanical technique to help you avoid those problems and guarantee the accuracy of your copies. In general, “a copy of a copy” is not admissible as secondary evidence, although mechanically produced copies and copies of copies that have been compared to the original are.

Produced from the original or compared to it.

Documents that were countersigned by people who did not sign them. When a document is performed in counterparts, just like in Section 62, each counterpart becomes the main piece of evidence against the parties that executed it. According to this clause, a document’s counterpart for a person who did not sign it will serve as supplemental evidence against that person. As a result, because the lessee (tenant) did not sign it, a “patta” will be considered a secondary document against him, and because the landlord did not sign it, a “qabuliat” will be considered a secondary document against him.

Oral descriptions of a document’s contents made by someone who has actually seen it (i.e. read the document)


Strong sources of evidence include both oral and written testimony. But the strength of each varies depending on the situation and the case. Documentary evidence, which is a type of written evidence, can unquestionably be regarded as being stronger and more trustworthy than oral testimony. However, the courts take both of these into consideration because sometimes it may not be possible to prove a fact with documentary proof. As a result, each of them is equally significant, and their interpretation has opened the door to a better system of justice.


Q1. What is the strongest evidence in court?

Ans. The direct evidence is considered as the strongest evidence in court such as eye witness, confession by accused, finger print and DNA text report, etc.

Q2. What are the major types of forensic evidence?

Ans. Forensic evidence, prima facie refers to any scientific or physical evidence that can be used to establish facts in a legal proceeding. There are various major types of forensic evidence that are commonly used in criminal investigations and court cases: important of them are −

DNA evidence − DNA (deoxyribonucleic acid) evidence can be used to identify individuals through analysis of their unique genetic makeup. DNA evidence can be collected from a variety of sources, including blood, saliva, semen, and hair.

Fingerprints − Fingerprints are unique to each individual and can be used to identify suspects or link them to a crime scene.

Ballistics evidence − Ballistics evidence involves the examination of bullets, firearms, and other projectiles to determine their origin and link them to a crime.

Trace evidence − Trace evidence characterized as small, often microscopic, pieces of evidence that can be used to link suspects to a crime scene. This can include fibers, hair, paint, glass, and other materials.

Document examination − Document examination refers to the examination of handwriting, typewriting, printing, paper and ink to determine authenticity, authorship or tampering.

Digital evidence − Digital evidence is characterized as the electronic data that can be used to establish facts in a legal proceeding, such as computer files, emails, text messages, and social media posts.

Toxicology − Toxicology is generally involving the study of drugs, poison and other chemical substances and their effects on living organisms, it can be used to establish whether drugs or alcohol were involved in a crime or an accident.

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