Posts Tagged ‘Invest’

SEBI Allows Auctions for QIBs in FPOs :)

SEBI Allows Auctions for QIBs in FPOs

Market regulator, SEBI has introduced a significant change in the way institutional bidders invest in follow-on public offers by allowing allotments through auctions.

 

The Securities and Exchange Board of India (Sebi) has amended the Issue of Capital and Disclosure Requirements Regulations (ICDR) to allow pure auctions for qualified institutional investors (QIBs) in follow-on public offerings to begin with.


The method may be later extended to initial public offerings.

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Under the new method, bidders will be free to bid at any price above the floor price.

At present, allotments are made at the floor price.

Retail investors, however , will be allotted shares at the floor price.

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The board also decided that the issuer is free to place a cap either in terms of the number of shares or percentage to issued capital of the company so that a single bidder does not garner all the shares on offer, ensuring a wider distribution of shareholding.

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Jagannadham Thunuguntla, Equity Head,  SMC Capitals, said this means an institutional investor can continue to bid above the floor price and the QIB allotment will be made to the highest bidder.


“The intent is to enable companies to mop up more funds. Earlier, even when there were huge subscriptions and huge demand for an issue, the company could not get more money. This becomes more relevant in the context of the recently announced divestment plans and FPOs by the government for public sector units,” he said.

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Auction for QIBs is welcome as it would allow risk-taking entities and not just the promoters to be a part of the price discovery process, other analyst said.


A SEBI release issued after the board meeting also said the minimum market capitalisation required by listed firms to sell shares in follow-on offerings has been halved to Rs.5,000 crores  from Rs 10,000 crore.

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Moreover, the market regulator has also made it a mandatory that all listed companies would have to furnish audited or un-audited balance sheets on a half-yearly basis within 45 days from the end of the quarter instead of the current yearly basis.

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This would imply that Indian companies will be required to disclose balance sheet items.


Shareholders would be able to access the statement of assets and liabilities of the company and its solvency position on a half-yearly basis.


Shareholders would receive immense help in making informed investment decisions now and would be in better position to assess the financial health of the companies, with the implementation of this SEBI regulation of mandating frequent disclosure of the asset-liability position of companies by companies.

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Systematic Investment Plan(SIP)..Whats That?

Systematic-Investment-Plan-SIP

Wealth creation is an art and over the years it has changed its avenues and area of interest for investors.

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In this blog, we will discuss what is SIP and what are the benefits of SIP?

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SIP or systematic investment plan is a simple and time honored investment strategy for creation of wealth in a disciplined manner over long term period.

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It aims at a better future for investors by giving a good rate of return as compared to one time investor in volatile market by lowering the average purchase cost.

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It is evident from the recent slowdown that the Mutual fund invested trough SIP route has prevented the pitfalls of equity investment and is enjoying the high returns, if compared.

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So it makes all the more sense today when the stock markets are volatile.

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BENEFITS of SIP.

1. Power of compounding:

If money is invested at an early age one can make money work with greater power of compounding with significant impact on wealth accumulation.

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2.Rupee cost averaging:

It is not so easy to predict the movements of the market.

An automatic market timing mechanism that eliminates the need to time one’s investments is Rupee cost averaging.

Though SIP does not guarantee profit, but one can invest through it as it goes a long way in minimizing the effects of investing in volatile markets.

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3. Convenience:

It is very easy and convenient to operate through SIP route as it could be done by simply providing post dated cheques with the completed enrolment form or give ECS instructions.

The cheques can be deposited on the specified dates and the units credited into the investor’s account.

The SIP facility is available in most of the categories in domestic Mutual Fund industry.

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SIP features:

If one would like to earn a good return from its principal then he should have a disciplinary approach.

The disciplinary approach is a vital to earning good returns over a longer time frame.

Once invested through sip route, investors are saved from bothering to identifying the ideal entry and exit points from volatile markets.

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Conclusion:

Though SIP resolves a dilemma often facing investors due to ups and downs in the market price but investor finds it difficult to decide when to invest in the equity scheme.

The success of investors SIP hinges on the performance of his/ her selected scheme.

If the investor is able to make wise decisions and make the best of the Indian volatile market, SIP is definitely a powerful tool to create wealth over time.

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SMC Global Securities : A Leading Financial Services Provider in India :)

Before You Realise Your Loved Ones Will Grow 🙂

If you find yourself asking the question –

Why should I Save ?

Why should I Invest ?

Where do I Invest ?

Who would Guide me to take informed decision on my Investments ?

…then look no further !

[:)]

SMC Global Securities, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

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Currently, SMC has a highly efficient workforce of over 4,000 employees & one of the largest retail network in India currently serving the financial needs of more than 5,50,000 satisfied investors.

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WEB:

http://www.smcindiaonline.com

http://www.facebook.com/pages/
SMC-GLOBAL-INVESTMENT-SOLUTION/
104149467952?ref=nf

http://www.facebook.com/group.php?
gid=90885076779&ref=ts


http://smcinvestmentsolutionindia.ning.com

http://networkedblogs.com/blog/smc_global
_blog_moneywise_be_wise/

If you find yourself asking the question –

Why should I Save ?

Why should I Invest ?

Where do I Invest ?

Who would Guide me to take informed decision on my Investments ?

…then look no further !

SMC Global, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

Currently, SMC has a highly efficient workforce of over 4,000 employees & one of the largest retail network in India currently serving the financial needs of more than 5,50,000 satisfied investors.

SMC – Name That Inspires Trust :)

If you find yourself asking the question –

Why should I Save ?

Why should I Invest ?

Where do I Invest ?

Who would Guide me to take informed decision on my Investments ?

…then look no further !

SMC Global, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

Currently, SMC has a highly efficient workforce of over 4,000 employees & one of the largest retail network in India currently serving the financial needs of more than 5,50,000 satisfied investors.

WEB :

http://www.smcindiaonline.com

http://www.facebook.com/pages/SMC-GLOBAL-INVESTMENT-SOLUTION/104149467952?ref=nf

http://www.facebook.com/group.php?gid=90885076779&ref=ts

http://smcinvestment.wordpress.com

http://smcinvestmentsolutionindia.ning.com