The ultimate wealth creator
Salaried people who are afraid to take risk in direct equity investments prefer investing through Mutual Funds. But, as you are aware Mutual Funds are subject to Market risks. Therefore for highly conservative investors Bond Market is really important avenue of Investment. Most of the big Politicians and Bollywood celebrities in India prefer to invest … Read more
Stock Analysis: Stock Analysis is the evaluation of a particular trading instrument, an investment sector, or market as a whole. Stock Analysis attempts to determine the future activity of an instrument, sector or market. Stock Analysis is a method for investors and traders to make buying and selling decisions. By studying, evaluating past and current … Read more
Investor Protection Fund (IPF) has been set up as a trust under the Bombay Public Trust Act 1950 under the name of ‘National Stock Exchange Investor Protection Fund Trust’ and is administered by Trustees. The Investor Protection Fund (IPF) is created in accordance with the guidelines provided by the Ministry of Finance, Government of India … Read more
The concept of guaranteed settlements has completely changed the way market safety is perceived. It has eliminated the counterparty risk of trading on the Exchange. The market has full confidence now that settlements will take place in time and will be completed irrespective of possible defaults by isolated trading members. In this post we will … Read more
Many retail investors buy stocks which have some corporate governance issues just because they are trading at cheaper prices after the heavy selling. But they don’t understand that catching a falling knife is the biggest mistake which they are doing. In such cases, those stocks closes Circuit-to-circuit on consecutive days destroying huge capital of investors. … Read more
In Indian share market Harshad Mehta and Ketan Parekh Scams have forced Stock Exchanges to be very stringent about their rules and regulations. To protect the interest of Investor, maximum use of technology and minimum interference of human was needed. Through their NEAT and BOLT screen-based trading system NSE and BSE respectively, achieved this to … Read more
What is Margin? Margin is the difference between the total value of securities held in an investor’s account and the loan amount from a broker. Borrowing on margin is the act of borrowing money to buy securities. The practice includes buying an asset where the buyer pays only a percentage of the asset’s value and … Read more
Risks involved in Clearing and Settlement process of the Secondary Market are removed by implementing proper Risk Management System. NSCCL provides a transparent clearing and settlement system with no counter-party risk. It has created some frameworks and norms for its members based on some risk containment aspects. Risk containment includes: Capital Adequacy Requirement Stringent Margins … Read more
There are two types of risks in settlement system. Counterparty risk System Risk 1) Counterparty Risk Counterparty risk arises if parties do not discharge their obligations fully when due or at any time thereafter. These have two major components, replacement cost risk prior to settlement and principal risk during the settlement 1.1) Replacement Cost … Read more
Several entities are involved in the process of clearing. These are clearing corporation, clearing members, custodians, Clearing banks, Depositories etc. Lets study the roles of each of these entities. Clearing Corporation The clearing corporation is responsible for post-trade activities such as risk management and clearing and settlement of trades executed on a stock exchange. The … Read more
