FLAME Newsletter - September 04, 2013


QUOTE OF THE WEEK:

"Investors cannot be an expert in determining whether a company is genuine or not, while investing in an equity market. If someone does not possess that expertise, then it is best advisable in long-term funds that will give assured returns" - UK Sinha, SEBI Chairman

YOUR FINANCE DEMYSTIFIED:

What is an IPO green shoe option?

Most of us who invest in stocks of a company know what is an IPO (initial public offering). An IPO is the first sale of a stock or share by a company to the public. Companies offering an IPO are sometimes new, young companies, or companies which have been around for many years and have finally decided to go public.

Before investing in an IPO, we go through the offer document of the company to know more about it. A listed company is legally bound to abide by commitments made in the document. Besides providing information about the company's competitive strengths, industry regulation, corporate structure, main objects, subsidiary details, risk factors, etc, the offer document also mentions a technical word called “Green shoe option”... Read more

How to invest in IPO?

Investing in equity: Common stocks, common mistakes

Money is a very strange thing—human beings make rational decisions while dealing with most aspects of life but make serious errors of judgment when it comes to dealing with money—be it saving, investing, borrowing or spending—and probably none are so glaring then when it comes to investment in equities. Completely rational investors take totally irrational decisions when part of crowd—their own individual rational minds come down many levels to the irrational level of the crowd.

Many a times, individual rational intelligent persons commit simple mistakes while making investment decisions in common stocks. And market has its own method of finding and exploiting human weaknesses... Read more

Simple & safe way to invest in equity

Are equity systematic investment plans worth it?

Now-a-days, with the effect of rising inflation, the importance of money is increasing day by day. Money has become the first priority in everyone’s life as it is needed in various stages of life at any time. In this expensive world, it is unwise to keep money idle.  So, the need is to make money from the money we have which can be achieved by making the right investments. Though the equity market gives good returns, it is highly volatile due to its constant rise and fall. Now, the question arises as to how can one safeguard their money from market volatility? The answer lies in Systematic Investment Plans in Equity... Read more

DID YOU KNOW?

What is Forward Markets Commission?

Headquartered in Mumbai, FMC (Forward Markets Commission) is a regulatory authority for commodity futures market in India. FMC is the chief regulator of forward and futures markets in India. FMC comes under the Ministry of Consumer Affairs, Food and Public Distribution because futures traded in India are traditionally in food commodities... Read more



TERM OF THE WEEK

Debenture redemption reserve

Section 117C of the Companies Act, 1956, was introduced in 2000 as a measure to protect the interest of debenture-holders. It requires every company which has issued debentures to create a debenture redemption reserve (DRR). As per this section, a company shall credit adequate amounts to DRR from its profits every year until such debentures are redeemed. The amounts credited to the DRR shall not be utilised by the company except for the redemption of debentures.

IN THE NEWS THIS WEEK

Adopt simple method for claim settlement of deceased: RBI

RBI tightens norms for disbursal of home loans

SEBI revises circuit limit system for Sensex, Nifty

MFs offload equities worth Rs. 21.69 billion in June 2013

Mutual funds report net outflow of Rs. 484bn in June 2013

ABOUT FLAME

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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