Tag Archives: FINANCE

Investment in IPOs in the Indian Capital Market

Investment is adding funds to another company in order to make it more profitable than original sum added into it. It is one class of increasing money with multiple effects without moving into traditional forms of entering into financial markets. IPOs are opportunities for companies to get additional supply of money legally through stock markets which runs with rules and regulations of the nation and world and provides opportunities for both the host company as well as that of investors to invest and finds out that buy purchasing shares of companies that would multiply their incomes in times to come.

Investment in IPOs comes in two different aims. The first aim can to have to buy some shares and increase the invested money so that sudden benefits will come as compared to investment into deposits into banks or financial institutions. All of financial institutions runs with the principle that regulates by Reserve Bank of India and for this additional benefits in savings scheme is not possible.

That is why investment in IPOs or Indian capital market is one of perceivably better options so that ultimately incur of benefits might be there due to the presence of rise of values of shares in stock market. For this it is important to keep looking deeper into how share market of specific nation is performing and how the specific company is performing and what is the balance sheet of that company and how it is performing in the last few years as all of these are vital to think about investing into any of these companies so that ultimate benefits will come to yours investment.

Do take note that what is national stability of the central or federal government and how these businesses are performing and how the policies are good for companies or how they perform with these existing policies so that ultimately these companies perform good or bad during long term financial standings. What is the specific performance of the company in which you intend to invest or buy their IPOs or share to say in normal terms how that specific company’s performance in the times of financial crisis and how that company has its internal financial stability to power over these crisis.

When you want to invest in company en do the complete and overall research over that company and for this it is important to move forward and find out whether you want to invest in some of IPOs of that company or do you wants to be stockholder so that buy the percentages of shares of that company. In both the situations we look these portions of ideas into two different and divergent ways. Above we discuss in detail about how individual share holders can buy IPOs of any company to multiple their money within shortest possible of time if the IPOs of that specific company goes upward trends.

In the second way, another company can buy in large number of stocks so that percentages of shares can be bought so that stockholder can have some sort of decision making into the top management space that means it can be done from foreign companies and with this we come forward to find that all of these need national policies and other formats of whether the host company, wants to disinvestment the shares and stocks so that good amount of money can be done and that can make the company grow further and can move into the stage of towards the number uno in the times of competitive market.

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Goods and Services Tax in India

In India prior to GST implementation numerous indirect taxes exists. GST has replaced al of thee redundant nd recurring indirect taxes and becomes a single tax system which is implemented indirectly. GST implemented on first July 2017 and prior to it was passed from parliament on 29th March 2017. It is a value addition tax which aims to increase utility of tax system and unified it so that it will be beneficial both to customers as well as companies.

This tax is levied on supply chain management of goods and services. It unifies all of these taxation system into one single unit and then it aims to provide multiple level of management so as to reduce the number of tax buder and in this way, it decreases the tax levied and provide faster movement of products in supply chain management.

Prior to GST the taxes levied on products becomes high an on single products there are instances of two VAT such as during buying of raw materials and warehousing of products. IN this way, unnecessarily the rice of products go to an astronomical units and in this way inside product range the price increases to multiple times.

With GST taxes levies at each point of sale not each point of manufacturing and in this way, the tax systems became unified and it comes to one single unit and in this way customers find it easier to access it and the price front of the prodics reduced to bare minimal leles and as we see we experience vast decrease of costs with it.

GST is levied on the products s and when there is addition of monetary values and irrespective of stages as when the supplier buys maida and sugar and add to make biscuit and this means here is the value addition so that there is levy of GST and in this ay , tax is levied upon actual value addition instead of each and every points to make it more transparent and removes obstacles of red tapism in each and every stage of product compositions.

According to it as and when in which destination the product is consumed or being used then the entire tax revenue will go to that state instead of the state that is manufacturing the product. As we do see the state which buys the product which means is providing value addition and that means the tax is levied from that and go to that state. In this ay, actual use of the products ad the residing state gets the actual product value of GST.

At first in this matter the opposition parties make the hue crya over it but it always the sraight forward idea the people from which state is buying the product then the taxes collected from GST goes to that state and in this ay, the state in whcih we are residing get the maximum value of it and instead can use that find to utilise benefits of people in the longer ranges.

It makes easiercorporates and organisations to file tax system online and in this ay, any third party benefitaro removes and the red tapisms and other facts of organisational tax systems removes completely. In thi way, a complete transparency of tax systems and its benefits come into the fore and that makes the entire taxatio system a clean financial system all over entire nation. It stops multiple checks and balances while logisitics of products and in this ay logitics ecomes faster and it reaches to different destiantions within shortest possible of time.

Many unorganised sector also comes into taxation system as they many a times do not participate in it and that makes the reduction of revenues to government and with it comes the faster movement and deeper integration of each and every segment of government without a doubt.

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Non Banking Financial Institutions

Non – banking financial institutions or companies perform banking operations. These institutions do not have banking licenses. That is why these institutions cannot receive deposits as they do not have banking licenses. They can offer other financial services.

Non-banking financial companies perform shadow banking. These institutions must register themselves under companies Act 1956 in India. Working conditions and rules and regulations of these companies runs under rules and regulations formulated by Reserve Bank of India (RBI).

Only limited and restricted information they access which is for know your customer (KYC). Other than this these companies cannot access more informations of individuals.

Types of Non banking Financial Companies (NBFC):

  1. Asset Financial Company (AFC): This supports lending and the managing of finances related to physical assets such as automobiles, tractors, cranes, generators and so on.
  2. Investment Companies (IC): This deals with assets for management of securities.
  3. Loan Company (LC): This provides loans and advances to companies other than own.
  4. Infrastructure Financing Company: Provides credit infrastructure companies.
  5. Infrastructure Debt Fund (IDF): Provides long-term debt to infrastructure companies. It can provide currency bond of the five-year maturity to these companies.
  6. Gold Loan NBFC: In India the amount of NBFC related to gold loan is on increase. Due to rise of gold price people are going to these institutions for loans. Aggressive and faster approval and increase of loan to value provides increase of such institutions.
  7. Residuary Non banking companies (RNBC): Residuary non banking companies comes under such non banking companies that receives funds not through investment but it has its own source of money.

Functions of non banking financial companies (NBFC):

  1. It provides financial and banking services to people without banking licenses.
  2. Demand deposits are no for NBFCs.
  3. Banks perform payment in terms of loan and then go for settlement, but NBFC has no right in this.
  4. It cannot issue checks.
  5. It cannot enagae in agricultural, mineral and primary non movable sectors.
  6. 100% foreign investment allowed.

In some states of India, micro-finances comes under heavy criticism. Allegation is that they cheat poor and downtrodden with high interest and then use coercive force to collect money from them. Some small and micro finances evaporated after an allegation of irregular activities. A stronger and stringent measure and action is the need for the hour.

There are allegation that many small finances illegal take money from people in the name of refunding them on higher intrest rates and when the payment time comes they and their offices disappear all of a sudden. It needs a stronger law and stronger and vigilant law enforcing authorities to disperse these illegal activities.

People on the other hand needs to acknowledge and invest their hard earned money in good sources. Especially in nationalised banks which RBI and Governement of India recognises. It is important for people to seek entire details of these instituions before investment.

Article Updated on 3 April 2019
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HSBC money laundering report: Key findings

From among these culprits there was one person whose name was Julio. According to investigating officers, Julio was principal to other culprits who was making the illegal money legal or in a process was involved in the process of money laundering.

It was said by special investigative executive James. The ICI agency is investigating this case. According to a lawyer from Columbia, Julio Chaparo was the middle man in this process of money laundering by these groups of people. The spokes person of HSBC said no comment in this issue. Till now it was not clear that drug traffickers were using as their payment gateway or not.

In the attorney office of New York and California, the secret report that specifically told how HSBC was used for drug is trafficking and money laundering. It was first traced by federal task force of South America, which analyses all wire transfers, e-mail, computer and other resources, how these money laundering and drug trafficking was taken place. In this way federal task force of South America knew the gang that was actively involved in money laundering and drug trafficking. This gang sells narcotics at America, and then the money gathered from this sell was sent to Mexico and then was deposited with HSBC bank there. It was being perceived that at Mexico, if you deposit a huge amount of money then no one suspect you, this is not the case at America so they chose Mexico for this. According to investigating officer of America, Chaparo and others drug traffickers and money launders, deposits all the money that they get from drug selling to Mexico HSBC bank. Then, they send this money to America and to some other places.

One member of that narcotic gang became a seller and they receive the offer from these members and they export all these electrical materials like that of computer and washing machine to South America. According to judiciary of America, due to some loop holes with HSBC transactions, these narcotics gang benefited immensely from this. At HSBC it was not been clearly investigated about the depositors, electronic wire transfer, and other money laundering issues. The task force that was investigating these narcotics group money laundering and drug trafficking issues started investigation of this issue from 2007. From investigation the executive came to light how courier companies from Miami and Houston , indulging sending these ill got money to south American countries. Then, they came to know how HSBC bank of Mexico was being used by these narcotics group and how this money comes again to New York, they knew it in detail.

He was active in spending the money that has been received through illegal drug sale. Fernado got his bail at the cost of two lacs as dollar. There was one criminal conspiracy case against him. Then, the investigative team stopped him and search and at that time from two bags he had 1, 53,000 dollars. Then the investigative team went to his apartment and there they found ledger and other important documents, and after analyzing all these it was understood that was the case of money laundering. Then, he was arrested, after interrogation, they knew about Chaparo and his way of doing these money laundering activities.

This was reported to justice department by investigating team. According to investigating reports, the federal agencies will be investigating about money laundering of HSBC Mexico to HSBC America , about huge sum of money , huge money , and it was said by the investigative agencies that , from 2008 April 5 to 2009 April 13 , with the sell of narcotics by these narcotics groups , then they gained huge money and these money were illegal and they money launder illegally through Chaparo and other narcotics groups.

Summary:

According to investigating officers, Julio was principal to other culprits who was making the illegal money legal or in a process was involved in the process of money laundering.

According to a lawyer from Columbia, Julio Chaparo was the middle man in this process of money laundering by these groups of people.

In the attorney office of New York and California, the secret report that specifically told how HSBC was used for drug is trafficking and money laundering. It was first traced by federal task force of South America, which analyses all wire transfers, e-mail, computer and other resources, how these money laundering and drug trafficking was taken place. In this way federal task force of South America knew the gang that was actively involved in money laundering and drug trafficking. This gang sells narcotics at America, and then the money gathered from this sell was sent to Mexico and then was deposited with HSBC bank there. According to investigating officer of America, Chaparo and others drug traffickers and money launders, deposits all the money that they get from drug selling to Mexico HSBC bank. Then, they send this money to America and to some other places.

At HSBC it was not been clearly investigated about the depositors, electronic wire transfer, and other money laundering issues.

Then the investigative team went to his apartment and there they found ledger and other important documents, and after analyzing all these it was understood that was the case of money laundering.

Sources & References:

https://www.fatf-gafi.org/faq/moneylaundering/

https://www.scribd.com/document/269977477/The-Red-Flags-of-Money-Laundering-and-Malaysian-Cases-on-Money-Laundering

https://legaldictionary.net/money-laundering/