What are Shell Companies ? : While addressing the CA fraternity on the occasion of Chartered Accountants day on 1 July, Prime Minister Narendra Modi has hinted that stringent action would be taken on shell companies which are defunct when it comes to real operations. Following this, there was a massive crack down by the Ministry of … Read more
Short Selling : The practice of selling a security that the seller does not own is called short selling. Short selling is trading strategy in which the sellers undertake the risk that the price of the security involved will come down and they will be able make profit by buying it at such lower price. Thus, … Read more
Book building: Book building is a popular method in the context of an Initial public offer, used to determine the price at which the shares have to be offered. SEBI guidelines define Book Building as “a process is undertaken by which the demand for the securities proposed to be issued by a body corporate is elicited … Read more
Transfer of Shares in case of Death of the Holder, This article tells you about the requirements under the companies act, when any share holder or a member has died than how the transmission of the shares would be made to the legal heirs or the nominees of such dead person and what are the documents … Read more
SEBI Overview: The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. The first statutory regulatory body that the Government of India set up post the reforms of 1991 was the Securities and Exchange Board of India … Read more
Difference between Share and Stock. As per Section 61, Companies Act, 2013, the company can convert its shares which are fully paid up, into stock. Share is a type of security, which signifies ownership in a corporation and represents a claim on the part of the corporation’s assets and earnings. As one acquires more shares, his … Read more
Stocks & Shares To Invest: The Indian stock market saw record-high points on October 18 2021. Nifty50 was up 138.50 points while Sensex climbed 459.64 points, according to The Economic Times. The reason? The previous week saw a number of companies share prices increase which resulted in Nifty50 and Sensex’s points rocketing. So, here’s all you need … Read more
Reverse Book building: Reverse Book Building is a mechanism by which the Acquirer/Company offers to buy back shares from its shareholders. Securities and Exchange Board of India has issued the SEBI (Delisting of Equity Shares) Regulations 2009 providing for voluntary delisting of equity shares from stock exchanges along with the overall framework for voluntary delisting by … Read more
Stock market has its fair share of ups and downs in history. It has been the game-changer for people who have taken risks and fetched high returns in the long run. There’s a myth that you can invest in stock exchange only if you have a large capital. However, this isn’t true. As a beginner, … Read more
Institutional Placement Programme (IPP): This is one of such methods available to Indian listed companies for the purpose of complying with minimum public shareholding requirements by raising additional share capital. In the light of a guideline that mandates the listed companies to raise their public shareholding to 25% by limiting the promoter’s shareholding to a maximum … Read more
How to Increase the Chance of IPO Allotment: IPO investors generally have questions such as “No shares allotted to me in IPO, why?”, “I haven’t got any allotment in multiple applications” “why I am not getting allotment in any of the IPOs?”. Thus, it is clear that the lucky people get the allotment in highly … Read more
Different types of investors in stock market: Learn about the different types of investors and their behaviors in share market and mutual funds. 1. Retail Individual Investors: As per the SECURITIES AND EXCHANGE BOARD OF INDIA (Issue of Capital and Disclosure Requirements) Regulations, 2009, retail individual investor means an investor who applies or bids for specified securities for a … Read more
Circuit filters: Circuit filters is a regulatory mechanism used by the stock exchanges to prevent the market volatility. Markets often see stock prices moving up and down very drastically accelerated by the investor’s sentimental decisions and the choices made by the speculators. To curb the excessive price fluctuations, circuit filters are set by the exchanges with … Read more
High Frequency Trading is one of the specialized methods of algorithmic trading. As per the Securities and Exchanges Commission of the United States High Frequency Trading involves the following: The use of extremely sophisticated and high-speed computer programs for generating, routing, and executing orders The use of individual data feeds from exchanges as well as … Read more
Difference between trading account and demat account, Recently I have been asked by many people what is the difference between demat account and trading account ?. In fact there is a wrong notion among a vast number of people about the difference between the services rendered by these two. Here we are providing complete details regarding … Read more
Selecting the Best Forex Broker: Forex brokers have in recent times become a topic of speculation and discussion. This is largely due to the rise of the FX market worldwide, combined with the ease with which new investors can enter the market. To aid understanding, there is often an abundance of data regarding how the … Read more
Bonus Shares – What are they and how they are issued?. Who does not like a bonus? If you get something over and above and that too at free of cost, would you not like it? Well, yes of course. This article will discuss about one of such great free and bonus thing, which is Bonus … Read more
Procedure for Transfer of shares. Procedure for transfer of shares under companies act, 2013. Check Share Transfer Procedure, My this article talks about the transfer procedure and analysis regarding the transfer of shares from one person to another, what is meant by that, what are the conditions, in which section it has been mentioned, what … Read more
Securities Appellate Tribunal (SAT). This article is about the Tribunal which is being formed by Central Government under the Securities and Exchange Board of India. This tribunal is formed especially for the grievances faced by the orders of the SEBI or the other adjudicating authorities. The article will detail you about the powers of the … Read more
Different Types of Orders Placed in Stock Market. It’s often a confusion when to put a sale order and when to keep a buy order…. Because it’s very difficult to decide that at what time we should sell our securities, and at what point we should buy and hold them… so that our return will … Read more
Market making: Market maker is a brokerage firm or an institution that engages in buying and selling of infrequently traded securities to infuse their liquidity. A market maker’s job is to boost the demand and supply situations of particular securities that are not frequently traded. These include shares, futures and options. Since their primary role is … Read more
What does the Recognised Stock Exchange do ?, There is very less fact known about the work the recognised stock exchange do. There are various duties which has been delegated by the SEBI, which needs to be conducted by the recognised stock exchange in stipulated time period and the reporting has to be done to SEBI. … Read more
Derivatives is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. The underlying asset can be equity, forex, commodity or any other asset. For example, wheat farmers may wish to sell their harvest at a future date … Read more
What are Inter Institutional Deals and Bulk deals?: Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme under which, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India. How, … Read more
IPO Grading: As per The Securities and Exchange Board of India (SEBI), “IPO grading is the grade assigned by a Credit Rating Agency (CRAs) registered with SEBI, to the initial public offering (IPO) of equity shares or any other security which may be converted into or exchanged with equity shares at a later date. The grade … Read more
Various ways to minimize loss in share trading, Considering the share trading spree as a quick and easy money making machine, many people turn to share trading thinking they will turn up being owners of big fortunes. Well, you can surely make money out of the stock market, but it needs practice, patience and right decisions. … Read more
Total Return: An index is basket of securities taken the prevailing market prices. When we look at the most commonly referred Indian stock indices such as Nifty, Sensex etc. we realize that they are simple price indices. A simple price index considers only the gains made in the form of capital appreciations. It does not include … Read more
Pre – Open session of Stock markets NSE & BSE. Any stock market in the world is highly volatile at the time of beginning of the day. There are many initiatives maintained by the regulatory bodies of these stock exchanges across the world. Pre-open session is one among these sort of practices. It’s a regularly … Read more
Swing trading: It is a type of trading where the trader attempts to make profits out of the short time price movements by holding the securities for a period varying from 2-3 days to few weeks. It involves buying at low price with a hoping that the swinging pattern will make the security price high in … Read more
BSE Sensex an Overview: The SENSEX, short form of the BSE-Sensitive Index, is a Market Capitalization-Weighted index of 30 stocks representing a sample of large, well-established and financially sound companies. There are many stock exchanges in India. The BSE Sensex is one of them. S&P BSE or SENSEX is a metric that reviews the performance … Read more