FLAME Newsletter - November 20, 2013
YOUR FINANCE DEMYSTIFIED:
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
& safe way to invest in equity
Lost share certificate: Steps you should take for issue of duplicate certificates
What will you do if you lose an important document like your share certificate? The
thought itself can prove to be a nightmare as there are chances of the document being
misused—leading to a financial loss. This article elaborates on the steps you should
take to get duplicate share certificates from the company / registrars to avoid any
If you have lost or misplaced your share certificates of any listed company, you need
to immediately inform the respective company—of which you had the shares. You also
need to quote the folio number and details of share certificates to the company for their
reference. When a company receives an intimation that you have lost the shares, the folio
number or the details provided to the company are frozen—in lieu of the lost one.
This is done by the company to prevent any fraud or transfer of shares... Read
DID YOU KNOW?
What is stock split?
Stock split refers to split the face value of the shares of companies. Accordingly, in
1:10 split, shares of Rs. 10 face value may be reduced to face value of Re. 1. In such
case, you will have 10 times the initial number of share held. However, the price of
shares would also fall proportionately split but the total value of your holding remains
the same. This mean more number of shares are available for investors... Read more
TERM OF THE WEEK
IPO green shoe option
In a company prospectus, the legal term for the greenshoe is "over-allotment
option", because in addition to the shares originally offered, shares are set aside
for underwriters... Read more
IN THE NEWS THIS WEEK
share disproportionate & increasing burden of NPAs: RBI
IT dues in advance at RBI or at authorised bank branches
announces SRO rules for MF distributors
tightens hold on stock exchanges for better compliance
should have assets worth Rs. 250mn: SEBI panel
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.