FLAME Newsletter - January 15, 2014


“No good product or no legitimate investment can guarantee a 20-30-40 per cent return year-on-year, which some of these products claim to offer” — UK Sinha, Chairman, SEBI India, to PTI


What is dematerialisation of securities?

As a share or debenture holder, it is important for you to be aware of the procedures to manage your investment in securities (the collective name for equity shares, debentures, bonds, mutual fund units etc.)

Managing your investment in securities is simple and easy in electronic form (dematerialised form) and it has many advantages over managing it in physical form (share / debenture certificates). Accordingly, this write-up details dematerialisation of securities, its advantages and how to manage your investment in demat mode.

Your investments in shares and debentures can be held in electronic or dematerialised form in a depository. Depository is an entity which holds securities (shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form at the request of the investors... Read more 

How to open a demat account?

We have written many articles providing details about dematerialisation of securities, advantages of holding shares in demat or electronic form and how to manage your investment in demat mode.

The below write-up will elaborate more on how to open a demat account, importance of nomination, how to convert your physical shares into demat and other facilities offered by a demat account.

Opening a demat account

Step 1: To open a demat account, you have to approach a depository participant (DP), an agent of depository, and fill up an account opening form. The list of DPs is available in the websites of depositories: CDSL (Central Depository Services (India) Ltd and NSDL (National Securities Depository Ltd)... Read more

How to transfer shares from demat account

Most of us know what is dematerialisation of securities, advantages of holding shares in demat form and how to manage your investment in demat mode.

The below write-up will elaborate more on how to transfer shares from demat account to another demat account. The article also provides details on how to transfer securities from the demat account of a deceased holder to the account of a surviving joint holder(s), nominee or legal heir. 

Shares and debentures in your demat account can be transferred to another demat account by issuing appropriate instructions to your depository participant (DP) through delivery instruction slip (DIS). If you sell your securities through the stock exchange, you will instruct your DP to transfer shares from your demat account to the brokers’ pool account. In case of off market transaction, you will instruct your DP to transfer to the concerned buyer’s demat account... Read more


How to calculate value of a right

A rights offering is when a company issues to its existing shareholders a right to buy additional shares in the company. The company offers its shareholder a specific number of shares at a special price. The company will also set a time limit for the shareholder to buy these shares. The shares are often offered at a discounted price to the existing shareholders... Read more 


Stock split

A stock split or stock divide increases the number of shares in a public company... Read more



FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.

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