Finology Blog - Latest Updates & News on Finance and Legal in India

Investing

How does Inflation affects the Stock market?

“Stock market is a place where people who want to invest their money in stocks come together and perform the buying and selling of such stocks over the stock market.”

Investing

What is Moats and Floats?

A very successful and consistent investor of Wall Street, Mr. Warren Buffet, who is the founder and CEO of Berkshire Hathaway, coined the term MOAT.

Investing

How to get registered on SCORES – SEBI Complaints Redress System?

Investment Advisors feel that once they get the approval from SEBI for their application and receive their certificate of registration, their work is done. But, the truth is that the work of Investment Advisors (IA) does not end there but instead begins there.

Investing

Do Research Analysts and Investment Advisers get permanent registration?

SEBI grants the certificate of registration to all the market intermediaries. Who are these market intermediaries? They are the stockbrokers, the alternative investment funds (AIFs), Investment Advisers (IA), Research Analysts (RA), Mutual Funds (MF), Portfolio Managers (PM) and a few others. SEBI makes several amendments to regulate these intermediaries with caution by taking care of the interests of every segment, including their own.

Investing

Does your stock research report comply with SEBI regulations?

When we think about compliance, the first word that must be coming to your mind is SEBI. SEBI is really known for its stringent regulations and eagle eye on individuals and companies. SEBI Regulations moderate and keep an eye on the advisory activities of individuals or entities also. These individuals or entities provide advice on mutual funds or stocks to their clients who might be paying a fee for the same. This is covered under SEBI (Research Analysts) regulation, 2014. Having your registration as a Research Analyst is suggested if you are putting your advice out there in the form of Research Reports. The specific chapter which tells what needs to be disclosed in the research report is mentioned in the SEBI (RA) Regulation which talks about the compliance is Chapter III.

Investing

Is SEBI Registration required for Research in Commodities?

Securities and Commodities. Do these two words seem synonymous or overlapping or completely different? They aren’t the same for sure but there are a few similarities. They are both trading nature, i.e., they’re both actively traded and in both cases, there is profit opportunity which comes along with risk. Therefore, investment in securities and commodities both require a good amount of research before the final investment is done. Therefore, for this purpose, Investment Analysts (IA) and Research Analysts (RA) exist for doing research in investment in security.

Investing

Has your company filed Form INC-20A before starting a business?

Declarations are made for everything. There are declarations for income or even income tax return. A slight change in the company structure or operations also needs to be declared to the regulatory body. Then, think about declarations needed before starting a business? It requires a lot of declarations to begin a business. If you were of the opinion that once you get the Certificate of Incorporation, you are free to do business, then you’re still in the dark. The filing of Form INC-20A has been re-introduced.

Investing

How To Form A Company In 3 Days?

In the race to make India one of the top countries with the Ease of Business, India has decided to put in a simple clearance to form a company with absolute registration of Permanent Account Number (PAN), Tax Account Number (TAN), Goods & Services Tax (GST), Employee Provident Fund Organisation, etc. in three days straight. This procedure will help to reduce the mental stress that comes along with the thought of starting a new company because off all the hassles and costs that are involved.

Investing

5 reasons why SEBI can put your Research Analyst application on hold

The registrations of Investment Advisers and Research Analysts is on a high. There are about 1216 Investment Advisers and 658 Research Analysts till date but they did not get the registration that easily. There might be so many others who are probably not suited for registration. The primary reason behind it is the lack of understanding on the information to be submitted in the application. The best way to get this information is to visit www.sebi.gov.in and check out the guidelines regarding the registration as an Investment Adviser (IA) or Research Analyst (RA).

Investing

Why should you register your brand as a trade mark?

Ever heard about brand piracy or even movie piracy? Any kind of piracy is misuse of the original brand. This kind of misuse can be done by someone completely unrelated so that they can derive benefit from the original brand’s goodwill or it can be misused by competitors as well. But, TRADEMARK is there to save the day.

Investing

Is One Person Company an option for a Startup?

We have all been aware about the different modes of forming a company like a Sole Proprietorship, Partnership or Limited Liability Partnership, each with their own specifications and guidelines. But, what if you are looking for a hassle-free mode of forming a company without involving anyone and having limited liability even after being a sole director in the company. Sounds new, right? It is new and has been introduced by the Companies Act 2013. This revolutionary concept is called One Person Company (OPC) and is the new age business ownership model.

Investing

Five assets you don’t need

We have a lot of financial products available around us assuring very high return. The agents selling these products are paid big fat commissions, driving them to sell the products at any cost. We have to remember that not all such assets will benefit you. So, we have compiled few of such assets that are widely sold in the market, but contribute very little to the holder’s wealth.

Investing

Difference between market value and book value

All of these terms are used for financial market and signify a particular meaning to the financial instruments. These terms have a different value for every financial instrument and should be taken into consideration. So let us know about every term in detail:

Investing

What is Beta in Finance?

A beta coefficient is a measure of the volatility, or systematic risk, of an individual stock in comparison to the unsystematic risk of the entire market. In other words, beta helps us understand how stock returns react to market fluctuations. The more it gets changed/ affected/ fluctuated,the higher will be the beta and vice versa. Basically beta helps the investors determine how risky the stock is w.r.t the market movements.

Legal

Scraping of Articles 370 & 35A. How, When and What?

In 1957, Kashmir was formally incorporated into the Indian Union. It was granted a special status under Article 370 of India's constitution.

Investing

What is Debt Ratio to equity ratio?

It is imperative and a task of paramount importance for an investor to examine the financial performance of a company from every angle before investing a single penny in that company. The true worth of the company can be detected by analyzing its financial ratios.

Investing

What is Rule of 72?

In the field of investing, it is imperative to realize the power of compounding. In the process of compounding, the interest when due is added to the original sum, hence modifying the sum for the next compounding period. Consequently, the interest rate is not only applicable on the principal amount but also on the interest accrued.

Investing

What is Free-Float Market Capitalization?

Market Capitalization

Investing

What is Margin of Safety?

Origin of ‘Margin of Safety’

Investing

Factors Influence Market Trends

There is a massive panic surrounded the markets, where Nifty fell from a record high of 12,003 (on June 3) to 10,990 plunging nearly 9% in the span of 2 months, majorly dragged by auto, banking & financials, energy, infra, and metals stocks. Mid-capsand small caps stocks have gone through a free fall, which is more exhaustive when compared to large caps. So much is the agony in the mid-cap sector that since January 2018, investors have lost more than ₹28 trillion in all the corrected stocks. The BSE MidCap and the BSE Small-capindices lost 21% and 31%, respectively, since January 2018. More than 1,976 stocks traded on BSE have dropped since January - that’s 86% of all traded stocks. Chances are, if you owned 20 stocks, 17 of them would have suffered losses. One of the reasons for Midcap& Small cap downturn:

Investing

Special purpose vehicle (SPV)

In the current financial market, there exists numerous enterprises and entities who are working towards providing goods and services to the nation and contribute to the growth of the economy.

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