Avenue Supermarts Shares Jump 4% as New Store Openings Boost Growth Prospects

Commodities, Currency, Equities, Market News, Markets - May 20, 2020

Market update 20th May 2020. SENSEX, NIFTY close on a positive note.

Market update 20th May 2020. SENSEX, NIFTY close on a positive note.

Overall performance:

Today, for the second consecutive day Indian indices ended on a high note. As market closed, SENSEX was up by 622.44 points or 2.06%, closing at 30,818.61 and NIFTY was up by 187.45 points or 2.11%, closing at 9,066.55 While, the S&P BSE midcap index was up by 166.09 points or 1.49%, closing at 11,278.22 and S&P BSE Small cap increased by 117.19 points or 1.13%, closing at 10,472.37. NIFTY Midcap 100 closed at 12,664.20, up by 193.50 points or 1.55% and NIFTY Small cap 100 closed at 3,851.75, up by 39.80 points or 1.04%.

Global indices and commodities:

When Indian market closed, DAX was trading at 11,136.49 up by 61.20 points or 0.55%, NASDAQ was trading at 9,185.10 down by 49.73 points or 0.54% and CAC was trading at 4,452.75, down by 0.12% or 5.41 points. While, SGX Nifty was up by 259 points or 2.94% and trading at 9,083.00. Currently, Gold is trading at 47,203 up by 153 points and 0.33%, Silver is trading at 49,045 up by 227 points and 0.46%. Crude oil is trading at 2,442 which is up by 40 points and 1.67%.

Currency:

At the time of closing of Indian indices, USD was trading at Rs 75.79, up by 0.21%. EURO was trading at Rs 82.80, up by 0.22% and GBP was trading at Rs 92.79, up by 0.13%.

Sector:

Today, almost all other sectors ended on a high note. The S&P BSE Auto index rose by 258.63 points and S&P BSE Energy rose by 84.07 points or 1.93%. At closing, NIFTY BANK increased by 353.95 points or 2.02%, closing at 17,840.20 while, NIFTY IT increased by 70.80 points or 0.53%.

Top 5 gainers:

Share price of Shree Cements increased by 1,070.90 points or 5.84%, closing at Rs 19,411.65. Mahindra & Mahindra gained 22.15 points or 5.78% and closed at Rs 405.05. Shares of Dr Reddys Labs increased by 210.60 points or 5.69%, closing at Rs 3,910.20. HDFC gained 87.15 points or 5.66%, closing at Rs 1,627 and Eicher Motors was up by 708.90 points or 5.47% and closed at Rs 13,675.10.

Top 5 losers:

Today, Bharti Infratel declined by 17.90 points or 8.18%, closing at Rs 200.85. Vedanta, which is decreasing from last 2 days, declined by 1.61% or 1.45 points, closing at Rs 88.55, IndusInd bank decreased by 10.50 points or by 2.85%, closing at Rs 357.30. Share price of Hero MotoCorp fell by 49.90 points or 2.41%, closing at Rs 2,023.60 and Bharti Airtel declined by 4.75 points or 0.79%, closing at Rs 594.05.

Stock in news:

Today, shares of Pharma, banking and Auto sectors ended on higher note. Shree cements was in news as share price of the company increased by 1,070.90 points and closed at Rs 19,411.65. Bharti Infratel was also in news as today their share price decreased more than 8%, closing at Rs 200.85 and Mahindra and Mahindra shares which was declining since last few days, today gained 22.15 points. Other than these stocks, most active stocks were Vodafone idea, SBI, Tata powers, ICICI Bank, BHEL and Alok Industries in terms of volume.

FPIs exit markets after economic package announcement.

0 Comment

Business, Market News, Markets - May 19, 2020

BSE, NSE cut listing fees for SMEs

BSE, NSE cut listing fees for SMEs

Due to COVID-19 pandemic, all the sectors have been affected badly but SMEs segments are affected the most. Therefore, during the announcements of details of Rs 20 lakh crore stimulus package, Finance minister Nirmala Sitharaman made special announcements related to MSMEs.

Reduction in listing fees:

Now to support SMEs and MSMEs, Indian stock exchanges BSE and NSE came forward. They have relaxed listing norms and reduced listing fee for small and medium enterprises by 25%. However, this norms are applicable to both existing and new firms which are looking forward to list on BSE SME platform and NSE SME platform.

What are the Current charges?

Currently for SMEs, Rs 25,000 or 0.1 percent of market capitalization of firm is the listing fee charged by BSE. The NSE charges around Rs 10,000 to Rs 45,000, depending on the SME firms market capitalization. Until now, BSE has 322 small and medium companies listed and has raised around Rs 3,278.84 crore from the market. Their market capitalisation is of Rs 15,865.39 crore so far. On the other side, so far only 209 small and medium companies are listed on NSE and have raised over Rs 3,200 crore.

What measures have been announced by government?

Due to the covid-19 lock down, many industries are facing problems like job losses and are cash strapped. During this situation, the main concern for MSMEs is that they are not able to restart their operations due to supply issues and non-availability of labour. Last week, while making announcement for packages in tranches, government changed the definition for MSMEs and linked it to the turnover limits of the companies so that their businesses grow with benefits. They announced measures for MSMEs and Rs 3 lakh crore package for collateral free automatic loans with separate funds for equity support.

However, these Rs 3 lakh crore will also be useful for existing borrowers who have over Rs 100 crore turnover and Rs 25 crore outstanding. Fresh loans can be taken by companies up to 20% of their outstanding. These loans have tenure of 4 years, with moratorium repayment period of 12 months. However, the government will also give them credit guarantee of 100 percent which will cover interest and principal to banking and non-banking institutions. Government will give around Rs 4,000 crore funds to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE) with partial credit guarantee to banks. However for expansion of MSMEs, the government will provide corpus of Rs 10,000 crore so that they can also list after expansion.

Further Expectations:

Micro, small and medium enterprises (MSMEs) are very cautious while taking any kind of fresh loans, as they are not sure about the demands for their products after all activity resumes. Most of the micro, small and medium businesses and enterprises are expecting from the government, to give them direct relief by waiving their electricity bills and other fixed expenditure such as payment of salaries. However, banks have already reduced their loans such as credit limit. Anil Bhardwaj, Secretary general of federation of Indian micro, small & medium enterprises (FISME) said, for all the small business and enterprises, government will take care of their fixed expenses. MSME industry has three major demand, interest payments, easy access to loans and payments of salaries from the government, during this situation due to COVID-19 lock down.

FPIs exit markets after economic package announcement.

0 Comment

Godha Cabcon & Insulation Reports Q1 2026 Results

Economy, Market News, Markets - May 19, 2020

FPIs exit markets after economic package announcement.

FPIs exit markets after economic package announcement.

On 12th May 2020, Prime Minister Narendra Modi announced an economic package of ₹ 20 lakh crore under government’s Atma Nirbhar Bharat Abhiyan / Self-Reliant India. The national movement of Atma Nirbhar Bharat Abhiyan / Self-Reliant India initiated by Prime Minister Narendra Modi is to support India’s all small and local business. He emphasized on slogan viz. #VOCALFORLOCAL.

Scamper among FPIs:

Approximately 40% of FPI sales in cash and derivatives sectors were observed in second week of May. The data derived from stock exchange indicates some break up figures such as FPI’s sold stock worth ₹6,486 crore. Additionally, sales worth ₹2,869 crore and ₹737 crore were observed in index futures and stock futures respectively. These sales was executed in just 4 trading days in the second week of May 2020. The data further states that since the announcement of economic booster package of worth ₹20 lakh crore, FPIs buying activity has drastically declined.

Decline in NIFTY:

On 13th May 2020, Nifty observed its peak of 9,584 within the span of 2 days. Nifty abruptly fell by 534 points and on 15th May 2020 Nifty observed its low of 9,050. In the same time period, it has also been observed that there is a sudden decline in Nifty Bank. Nifty Bank dropped 1,440 points from 20,122 to 18,663.

If we compare between Indian stock market and global stock market, the sudden change is only observed in Indian stock market and not in global stock market. The Nifty and Nifty Bank indices are two of India’s largest traded derivatives, and both of these derivatives are struggling under pressure from FPI’s as they are selling their investment in a massive quantity since the announcement of economic booster package by Indian government. In second week of May 2020, the indices decreased by 5.6% and 7.15% respectively, compared to their respective highs.

Support from DII’s:

During the same period i.e. in the second week of May, there was no support from Domestic institutional investors (DIIs). Purchases from domestic institutional investors (DIIs) was also low, and they purchased stocks of only ₹1,896 crore in cash. There are several rules and restrictions on the companies who are doing business of mutual funds & insurance on derivative speculations. Therefore, they are virtually absent in the field of futures and options.

Massive sales by FPIs:

The media report noted that FPIs have been selling massively since the second week of May 2020 and have been slamming markets after the announcement of the financial package by Indian Government. In addition, the figures apart from second week of May 2020, the FPI’s net figures appear to be clearly positive, this is a bit misleading.

Loopholes while extracting data:

Exchanges will not adapt these facts when foreign companies sell shares and FPIs buy them This was the case on 7th May 2020, when a massive block of shares entered the market of Hindustan Unilever (HUL). Shares of HUL worth ₹26,300 crore were sold by international investors on 7th May 2020. The FPI’s bought a total worth ₹19,000 crore from the market in the same period, while DIIs bought stocks from the market in the same period worth ₹3,818 crore. Nearly all FPI’s and DIIs purchases were in HUL for that particular period.

When these ₹19,000 crore investments are removed from Hindustan Unilever shares, then FPI’s were net sellers in the cash and future segments. Sellers and major buyers of HUL were both international entities, but only those registered as FPIs are required to report their numbers to Securities and Exchange Board of India (SEBI) and stock exchanges viz. NSE & BSE. Meanwhile, net buying by DIIs in the month of May 2020 is just ₹1,056 crore after adjusting the activity of Hindustan Unilever.

Corporate bond funds: A mix of risks and returns.

0 Comment

Visteon Invests $10M in India's Camera Manufacturing!

Economy, Markets - May 17, 2020

Mutual funds make limited borrowing from RBI's credit lines

Mutual funds make limited borrowing from RBI’s credit lines

Schemes closed by Franklin Templeton Mutual Funds:

Franklin Templeton Mutual Fund’s has decided to wind up their 6 debt schemes from 23rd April, 2020. The 6 schemes closed by Franklin Templeton Mutual Fund’s was worth ₹26,000 crore. The closure of these 6 schemes significantly reduced liquidity in the Indian bond market. Money of many retail investors and High Net worth Individuals (HNI’s) is blocked as there will be no option of liquidity available in their portfolios. Executives from Franklin Templeton Mutual Funds noted lock down outbreak of COVID-19 and the lock down imposed in state compelled them to take this decision. To control the uncertainty in the financial market, RBI launched new provisions to tackle this problem.

Reserve Bank of India launched special liquidity facility:

In late April 2020, Reserve Bank of India launched a special liquidity facility for mutual funds (SLF-MF). This special facility states a provision of total corpus of ₹50,000 crore is available and Mutual funds can borrow money through banks. The functioning will be, corpus of ₹50,000 crore is available and banks are allowed to borrow money from Reserve Bank of India for maximum 90 days. They can lend money to mutual fund firms by keeping collateral of their portfolio. Once the time span of 90 days elapses, the lender needs to pack back the money and take their collaterals. Further, banks will return money to the Central bank. Reserve Bank of India noted this facility can be availed by a bank only for lending back to Mutual funds.

Limited borrowing from RBI’s special liquidity facility:

The special liquidity facility provided by Reserve Bank of India (RBI) to mutual funds did not observe massive utilization. The utilization was only ₹2,430 crore from the total ₹50,000 crore window. Media reports noted, rather than lending money from bank, mutual fund’s preferred selling securities to bank and to their other parties. As mutual funds preferred to sell securities to the banks and other counter parties, this shown a spike in sales of debt papers of some NBFC’s.

Redemption of debt funds:

Media reports noted the special liquidity facility provided by Reserve Bank of India (RBI) to mutual funds has controlled the redemption of debt funds. In March 2020, various debt funds shown massive outflow. Due to this pandemic, a huge amount of redemption in debt funds is observed. In March 2020, there was a massive outflow in open-ended Debt funds of ₹1,94,915 crore. However, in the month of April 2020 the outflow continued, but inflow of ₹43,432 crore was executed.

In April 2020, it was observed that redemption in credit risk funds was ₹19,238.98 crore. Low duration fund also observed redemption of total ₹9,841.07 crore in the month of April. Further redemptions in various schemes like Ultra Short Duration fund, Money market fund, Short Duration fund amounted to ₹3,419.32 crore, ₹1,210.35 crore, ₹2,309.05 crore respectively.

Ease in NBFC’s sector:

The national movement of Atma Nirbhar Bharat Abhiyan / Self-Reliant India initiated by Prime Minister Narendra Modi is to support India’s all small and local businesses. Finance minister Nirmala Sitharaman announced economic booster package of ₹20 crore under government’s Atma Nirbhar Bharat Abhiyan / Self-Reliant India to fight against COVID-19. The economic booster package of ₹20 crore includes new provision to aid NBFC sector. Non-banking financial companies (NBFCs), Microfinance institutions (MFIs) and Housing finance companies (HFCs) will get liquidity support of ₹30,000 crore under liquidity scheme. Under this scheme, banks can invest in investment-grade debt papers issued by NBFCs through both primary and secondary market transactions. The investment up to ₹30,000 crore will be entirely guaranteed by the Government of India.

Additionally, NBFCs, MFIs, and HFCs will even get the assistance of ₹45,000 crore under partial guarantee scheme. This assistance provided by government is to provide liquidity support to the institutions whose credit rating is low. This will be applicable for all the unrated papers and the papers with ratings of AA and below issued by NBFCs, MFIs, and HFCs. This will enhance the liquidity support of all the institutions under NBFCs, MFIs, and HFCs. Under this scheme, the first 20% loss will be borne by the Indian government i.e. public sector banks resulting in a liquidity of ₹45,000 crore.

Bond markets hail G-sec auction

0 Comment

Low-Priced Stock Below ₹20 Soars 59% in a Week, Sets New 52-Week Record

Markets - May 16, 2020

Bond markets hail G-sec auction

Bond markets hail G-sec auction

What are Government Securities (G-Sec)?

A Government Security, commonly known as G-Sec is a debt instrument. These are issued either by Central or State Government and are tradeable instruments. The Central Government issues both, treasury charges otherwise called T-bills and bonds or dated protections while the State issues just bonds or dated protections, which are known as the State Development Loans (SDLs). These are backed up by the Government and hence are also known as risk-free investments.

T-bills:

T-bills are of three types. Categorized on the basis of maturity period they are 91 days, 182 days, and 364 days. They do not carry any interest rate. They are issued at a discount to their true (PAR) value and redeemed at true (PAR) value.

Bonds:

Bonds differ from T-bills in two ways. They are long term and have no fixed tenure. They vary depending upon their issue. They pay interest semi annually.
Every bond issued is given a unique name or symbol. The symbol contains all the information defining the instrument. For example, let us consider “662GS2025A”, is a central government bond. If this is decoded, we get to know the bond has an annualized interest of 6.62%, which will be paid semi annually as 3.31% GS stands for type of security that is Government Securities (GS). 2025 indicates the year in which this bond will attain maturity. Finally upon maturity, the principle amount will be received. ‘A’ means it is a fresh issue. This is how the nomenclature of the bond is read.

Impact of additional borrowings on G-sec:

The announcement of government borrowings Rs 34,000 crore instead of the predetermined amount of Rs 30,000 crore, witnesses a positive upswing in the minds of investors. The very 1st auction, dated May 15, 2020 after the news of additional Governmental borrowing of Rs 4,000 crore was out, has seen a great response from the bond market. This announcement from the Reserve Bank of India (RBI) is resulting in spreading positivity in the bond market.

The auction response:

The auction that was held on May 15, auctioned three government bonds. These three bonds will mature in the year 2024, 2033 and 2050 respectively. Collectively, these three bonds intend to raise aggregate money amounting to Rs 30,000 crore. After analyzing the auction response, bonds having maturity in 2033 has been responded with bids around Rs 33,000 crore whereas the notified amount being Rs 11,000 crore. Similarly, bonds having maturity in 2050 has been responded with bids around Rs 21,000 crore whereas the notified amount being Rs 7,000 crore. This implies that above papers have been applied for three times the notified amounts. This is a bullish scenario which is getting reflected by the number of bids in the auction of the Government bonds. The cut-off returns also aligned with the expectations of the market. On the same day, returns on the new benchmark bonds secured 5.78%.

What can be the reason behind this optimistic shift?

Maybe, the reason behind this optimistic shift in the market is because of certain expectations from the RBI. Market is expecting RBI to announce certain measures with respect to the additional Governmental borrowing of Rs 4,000 crore which may benefit all. Another reason could be that the market believes that even though the Government has announced Rs 20 lakh crore as the fiscal package, the total cash outflow will not amount to entire amount specified, rather it will be much lower. Maybe the outflow stays within the limits of additional borrowings that has been announced. The first week of February brought an announcement that estimated borrowings for FY21 has been raised to Rs 12 lakh crore. This has led to an additional borrowing by Rs 4.2 lakh crore which is to be borrowed this year.

Market expects RBI to go for open market operation (OMO) purchases. OMO purchases of at least Rs 3 lakh crore while keeping in mind the principle of conservatism. If these prove to be strong indicators of the reasons behind market being optimistic presently, then in case the above mentioned reasons fails or faces unexpected delay, the market may swing in total opposite direction altogether. This implies it is the hope of the market that is gripping the market and making it act positive. Data from May 15, 2020 reveals that RBI has been buying securities and major portion of it is expected to be the Treasury bills. Further, these have been brought through OMO purchases amounting to Rs 1.2 lakh crore starting from April 2020.

Negative crude oil price leads to multiple legal battles

0 Comment

Gold and Silver Aim for Key Resistance Zones

Business, Economy, Expert Views, Markets - May 15, 2020

What are liquid funds? Find more

Liquid funds are also debt funds that lend for a period of up to 91 days. These are the safest funds among all other schemes, being short-term. It is appropriate for putting money aside for emergencies. There is negligible risk of loss if one invests for minimum one month. These are known for giving up to 50% and at times even 100% higher returns than the savings bank account. These have low annual fee ranging from 0.30%- 0.70%

Portfolio with liquid funds fetches:

• No Lock-in Period – By the name, it suggests they have no lock-in period and give quick access to cash by redemption.

• Quick Withdrawals – Liquid fund withdrawals can be made within 24 hours.

• Lowest Interest Rate Risk – These funds mainly invest in fixed income securities which have a short maturity period, hence have one of the lowest rate risk as compared to others.

• Tax Benefits – Liquid Funds offer valuable tax benefits.

• Comparatively Good Returns – Liquid funds offer an average return of about 8% per annum.

For instance,

Franklin India Liquid Fund is presently giving a return of +7.04% p.a.

Tata Liquid Fund is presently giving a return of +6.91% p.a.

Edelweiss Liquid Fund is presently giving a return of +6.86% p.a.

Comparing and Contrasting:

Current Fixed Deposit Rates are ranging from 3.00%-6.75% p.a. covering all classes of investors.

Comparing these with the previously mentioned Credit Risk Fund and Liquid Fund, we can learn that these funds give more returns as compared to the Bank FDs.

Credit risk funds. Should you invest?

0 Comment

Dalmia Bharat Reports Disappointing Q3 Results, Sees Limited Short-Term Growth

Business, Equities, Expert Views, Investor Forum, Markets - May 15, 2020

Credit risk funds. Should you invest?

Credit risk funds. Should you invest?

Credit risk funds are debt funds that lend not less than 65% of their portfolio in the lower rated instruments (less than AA rated papers). The borrowers have to shell out higher interest charges to compensate for their lower credit rating, which translates into a higher risk for the lender due to an increased possibility of default. Although, these funds lend mostly for short duration. They are still one of the riskiest in the category.

These funds are ideal for an investment horizon of at least 3-5 years. There is a high probability of incurring losses if held for short term.These funds tend to deliver higher returns than Bank Fixed Deposits thereby involving higher risk.

Portfolio with Credit Risk Funds fetches:

• Higher Return : These funds take high risks and invest that money in the low risk instruments and the returns generated are higher as compared to other funds.

• Tax Benefits: These funds are tax-efficient as the Long Term Capital Gains (LTCG) is flat 20% where as if the assessee is in 30% slab still LTCG will be taxable at 20%.

• Extended Supervision: In these funds, fund managers play a very significant role in obtaining remarkable returns. Credit rating alone is not the only basis of decision making. There are various parameters such as the company’s scope of expansion, its potential and business model.

For instance,

ICICI Prudential Credit Risk Fund is presently giving return of +8.64% p.a.

Kotak Credit Risk Fund is presently giving return of +7.44% p.a

HDFC Credit Risk Fund is presently giving return of +7.55% p.a

Debt, hybrid mutual funds see large outflows in April

0 Comment

Z47 Launches $400M Fund for India's Tech Boom

Equities, Market News, Markets - May 9, 2020

BSE, NSE to launch rupee derivative contracts

The NSC IFSC and India INX have introduced rupee derivatives which will help in bringing much needed added liquidity in the economy. This will supplement their customers with several investment options.

The motive behind introduction of rupee derivatives:

The CEO of NSE, Vikram Limaye communicated to the media that the introduction of rupee derivatives will help in the development of (Gujarat International finance tech) GIFT IFSC as a hub of global financial services. This IFSC platform will help in the rupee exposure of non resident participants. This non residents’ participation will also enhance the IFSC’s extended trading hours and USD settlement. They’ve already received permissions for offering securities trading in any currency except the Indian rupee.

Importance of introduction of rupee derivatives:

Mr. Limaye added that this measure will enhance the efficiency of Indian rupees’ price discovery. It will be done by eliminating the onshore and offshore markets’ segmentation. It will also allow for trading and hedging using rupee derivatives contracts to their trading partners viz. IFSC entities and banking units. The Finance Minister Nirmala Sitharaman did the inauguration of the rupee derivatives contract. The contract will be having a lot size in NSE IFSC – Rs 20 lacs and India INX – Rs 10 lacs and the contract will be settled in cash.

The futures and options:

The futures at the NSE IFSC will have in total three monthly expiry contracts . The options at NSE IFSC will have total seven weekly and three monthly expiry contracts. For the other one i.e India INX, there will be in total eleven weekly and twelve monthly contracts. In the past few months due to the corona virus pandemic crisis, there is an acute volatility faced by the currency markets. The introduction of rupee derivative contracts in the IFSC will lead to more stability during these situations.

The Contracts:

The chairman of India INX, Ashishkumar Chauhan communicated to the media that the size of contract will be Rs 10 lacs and the trading is made available from 8th May 2020, 3:30 pm IST. The trading is for both the pairs viz. USD-INR and INR-USD. He added that for the USD-INR product, many of the people like the exporters, importers, traders, etc associated with any kinds of businesses have expressed their keen interest. The Gandhinagar GIFT City is the only IFSC situated in India having zero short term, zero long-term, zero stamp duty and zero transaction taxes as of now.

Each and every businessman interested should consider trading and hedging using rupee derivatives contracts at the GIFT City. The MD and CEO of India INX, V Balasubramaniam communicated to the media that he looks towards the best participation of members and international participants. This will be the first launch of offshore Indian rupee derivatives contract.

What are liquid funds? Find more

0 Comment

Aarti Industries Ltd Q1 FY23 Result Updates.

Economy, Market News, Markets - May 6, 2020

Investors get relief with standardized digital KYC process

Investors get relief with standardized digital KYC process

Know Your Customer (KYC) process generally contain heaps of paper work regarding customer identity and customer acceptance policy. All this makes the KYC process very lengthy and tedious. However, e-KYC is the option available to users but, for e-KYC stock brokers and various online mutual fund platforms didn’t have any standardized or unique set of procedures. E.g. In Person Verification (IPV) is completed by allowing customers by sending their recorded video to the concerned broker while some send their representative to the client’s home for the completion of In Person Verification (IPV).

New standard and unique procedure for Digital KYC:

Due to the unusual wake of Covid-19, the Indian government and Securities Exchange Board of India (SEBI) came up with standard and unique procedure for Know Your Customer (KYC). Media reports noted that Securities Exchange Board of India (SEBI) fetched responses from various brokers about how the KYC process is executed presently and then they released new standardized norms of how digital KYC should be executed.

Details regarding Aadhar based KYC:

A notification was published by Finance ministry of India on 22nd April 2020, regarding KYC process to be completely digitized for transactions through some institutions. Notification states that 9 institution’s viz. Link Intime India Pvt Ltd, CDSL Ventures Ltd, Bombay Stock Exchange (BSE), CAMS Investor Services Pvt Ltd, Central Depository Services (India) Ltd, and National Stock Exchange (NSE) can now undertake Aadhar based e-KYC. Notification noted that all the 9 institutions follow all the standards of privacy and security under the Aadhaar Act 2016.

Details regarding Online KYC:

Securities Exchange Board of India (SEBI), clarified the KYC process and its functioning. SEBI notified various online services that Mediators can practice for completion of KYC process.

Some of online KYC are followed:

Aadhaar eSign

Aadhaar eSign is the method recommended by government, in which we can digitally sign a document using Aadhaar. It will be equivalent to the normal sign we do, i.e. physical sign using pen. This will be completed using One-Time Password (OTP).

Digilocker

Digilocker is an initiative of Central government. It allows an individual to store their personal documents online using cloud storage provided by Digilocker. It provides free upload of documents up to 1 GB. Users can store their PAN card, Driving Licence and other important documents. Digilocker is fully secured, while creating an account. The 12 digit Aadhaar number is compulsory and further every time you login to Digilocker, a 4 digit One-Time Password (OTP) will be sent on the linked mobile number with Aadhaar. Digilocker allows you to sign digitally through their platform. Securities Exchange Board of India (SEBI), allowed verification of documents for KYC process using Digilocker. Documents uploaded on Digilocker can be treated as original documents.

In Person Verification (IPV)

In Person Verification (IPV) can be done effortlessly by using mediator’s portal or application. For IPV, a representative from the mediators can connect client through video call and ask some relevant questions. Investor can complete their In Person Verification (IPV) by presenting their original documents on video call.

The complete procedure of KYC:

The complete KYC procedure will be executed online as per SEBI norms by using broker’s application and online portals. They can cross verify clients by name and all the personal details uploaded by them on Digilocker with digital sign. IPV using video call will ensure all the proofs provided by client are genuine. Aadhaar authentication will be done by the Unique Identification Authority of India (UIDAI) whereas PAN authentication will be done by the database available in Income tax department.

Provision made to check the authentication of bank account is very simple. ₹1 will be deposited in a client’s bank account to verify all the details. This is termed as “Penny Drop” mechanism. Once all the verification is done, clients can download all the documents, do E-Sign on each document and upload it back to the portal. Another way customer can follow is to print all the documents, sign them, and upload the scan copy of it in the portal. Due to all this new measures started by government, investing online is an easy-going task.

Pre-GST CENVAT credit available till 30th June revised

0 Comment

Currency, Markets - May 4, 2020

Cryptocurrency EOS dips by 11%

Cryptocurrency EOS dips by 11%

EOS token, the digital money of the EOS network, faces a critical fall. Digital money EOS, on 4th May 2020, was seen trading at a cost of $26,993, down by 10.50%. This was the most critical fall in the estimation of cryptographic forms of money since March 12. The fall incited a decrease of the market capitalization of EOS to $25,750 B, or 0.00% of the complete capitalization of all cryptographic forms of money. While prior pinnacles capitalization of EOS was $175,290 B.

In the previous 24 hours, the EOS was exchanging between $26,956 to $28,443. Over the most recent 7 days, digital money EOS felt the stagnation rate as it only got displaced by 1.25%. The EOS measure of cash exchanged in the recent 24 hours was $41,130 B. The course was differed in the range from $26,900 to $31,138 over the most recent 7 days.

Right now EOS is still underneath 88, 25% from their pinnacle esteems, adding up to $22.98, which was arrived at April 29, 2018.

News regarding other digital forms of money:

Bitcoin was last exchanging at $8.671,4, showing a fall of 5.16% during the day. The Ethereum exchanged $20,354 , dropping 6.71%. The market capitalization of Bitcoin – $1,613,378 B or 0.00% of the all out capitalization of digital money, while showcase capitalization of the Ethereum – $231,391 B or 0.00% of the complete capitalization of the financial exchange.

Jio Platforms acquire investment from Silver Lake

0 Comment