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SEBI notified the SEBI (Investment Advisers) Regulation, 2013 in January 2013 intending to regulate the activity of providing investment advisory services in various forms by independent financial advisors, distributors, banks, and other such entities. The regulations become effective from April 2013.
The relationship between the investment adviser and client is that of trust and the investment adviser while performing his role, should act in good faith in the best interests of the client. The Investment Adviser Regulations have cast upon investment advisers certain obligations and responsibilities while providing investment advisory services.
It is important that the investment adviser discloses all conflicts of interest to the client as and when they arise.
An investment adviser must not receive any remuneration from anyone except the client in respect of securities or investment products for which he has provided advice.
There must be segregation of other business activities from investment advisory activity of the investment advisor. A professional relationship must be maintained between investment advisory activity and such other activities. If a conflict of interest arises, the same shall be disclosed to the client.
The investment adviser must maintain strict confidentiality with respect to the information received from the client.
An investment advisor shall follow Know Your Client procedure as specified by SEBI from time to time.
An investment adviser must abide by the Code of Conduct as specified in the Third Schedule of the Investment Adviser Regulations.
The investment adviser must file periodic reports or information to SEBI as may be required from time to time and take prior approval from SEBI if there is a change in control of the investment adviser.
It shall be the responsibility of the Investment Adviser to ensure that its representatives and partners comply with the certification stipulated by the Investment Adviser Regulations at all times.
In India, RBI is the central bank of India which regulates all the major issues related to currency, foreign exchange reserves etc. In short, RBI is the bank responsible for securing the monetary stability in India.
The Reserve Bank of India Act, 1934 says, “An Act to constitute a Reserve Bank of India. Whereas it is expedient to constitute a Reserve Bank for India to regulate the issue of Banknotes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.
No one could deny the fact banks plays an important role in the economic stability. In case a bank crashes then it does not crash alone, it takes away the lifelong investment and savings of its entire account holders too.
This is not the only reason due to which corporate governance in the banking sector is needed. Corporate Governance is also needed for the bank to keep a check on money laundering, financing immoral and criminal acts and transaction of money to the terrorists.
RBI in India plays a leading role in formulating and implementing corporate governance.
It is the most important constituent of corporate governance. If the banks will not be disclosing their transactions to the RBI then they can vanish with the lifelong investments and savings of the people.
The RBI through the requirement of routine reporting of financial transactions of the bank keeps a tab on the activities being undertaken by the banks in India. Any failure to abide by the requirements set out by RBI may lead to heavy fines being imposed along with the cancellation of the license to operate as a bank.
RBI routinely performs an annual on-site inspection of the records of the banks. The main focus of the off-site surveillance is to monitor the financial health of banks between two on-site inspections, identifying banks which show financial deterioration and would be a source for supervisory concerns.
RBI has set important points, based on trigger points set by RBI, the banks have to follow. This will help to maintain a proper mechanism for there performance.
Investing in potential foreign stocks such as Apple, Google, and Facebook seems to be a bit complicated, doesn't it?
We have all grown up using the services provided by these companies. Needless to say, these companies are well known as global leaders in their respective business which will produce many benefits in the future. Aside from using their services, many of us often think of buying these stocks at a reasonable rate.
Despite knowing the fact that these stocks are not listed on Indian stock exchange, Indian retail investors now can invest these stocks without a flick of a switch. As the sudden demand of US stock increases among Indian retail investors, several platforms such as Swastika Investmart have allowed Indian investors to invest directly in the US stock market.
The popular US stocks Facebook, Apple, Amazon, Netflix, and Google are known as FAANG stocks and we all know that these 5 companies play an active role in your life. The term FAANG was first coined by JIM Cramer, host of “Mad Money” in 2012.
As an investor, you may know that India’s share of world GDP is nearly 7%, which means 93% of the world’s GDP remains unused. Today, we have an opportunity to invest in the shares across the economy, which means diversification across economies. Earlier, we used to 100% of our portfolio in Indian stocks and bonds. True diversification means diversification across countries.
To invest in US stocks, you are required to open a Demat account with a brokerage company that offers a cross-border trading facility.
I). Open a Demat account with a brokerage firm that has tied up with international partners that offer overseas trading facilities.
II) Submit yours Know Your Customer (KYC) form along with a separate account opening form.
III) To successfully trade in the foreign stock market, you are required to transfer the amount to the international partner of your domestic broker.
IV) Funds are transferred to the international partner as below:
Once the funds are successfully transferred to international broking partners, you can start buying and selling of foreign stocks online.
वैश्विक बाजारों में, मजबूत अमेरिकी डॉलर और बढ़ती बॉन्ड उपज के बीच सोनाऔर चाँदी के भाव मे गिरावट दर्ज की गई है। लेकिन, अमेरिका के आने वाले राष्ट्रपति जो बिडेन प्रशासन के तहत अतिरिक्त अमेरिकी राजकोषीय प्रोत्साहन की उम्मीद से कीमती धातुओं को सपोर्ट मिला हुआ है।
अमेरिकी 10-वर्षीय बॉन्ड यील्ड 1% से ऊपर के स्तरों पर पहुंच गई है और डॉलर इंडेक्स मे निचले स्तरों से उछाल देखा गया है। एक मजबूत डॉलर अन्य मुद्राओं के धारकों के लिए सोने को अधिक महंगा बनाता है , जबकि उच्च बांड उपज गैर-ब्याज उपज वाले सोने को धारण करने की अवसर लागत को बढ़ाती है जिससे कीमती धातुओं के भाव मे गिरावट आई है।
अमेरिकी 10 साल की बॉन्ड यील्ड 1% को पार कर गई है, जो अमेरिकी अर्थव्यवस्था के लिए बेहतर आउटलुक के साथ-साथ उच्च मुद्रास्फीति और ब्याज दरों में सुधार को दर्शाती है। वैक्सीन आने से भी सोने के भाव पर दबाव जारी है। अमेरिकी राष्ट्रपति-चुनाव मे जीत के बाद, जो बाईडन के पास अब कांग्रेस का पूर्ण नियंत्रण है साथ ही, अमेरिकी सीनेट मे भी अपनी पार्टी की जगह बना ली है।
फेडरल रिजर्व बैंक ऑफ क्लीवलैंड के अध्यक्ष लोरेटा मेस्टर ने कहा कि उन्हें विश्वास नहीं है कि बिडेन के तहत राजकोषीय प्रोत्साहन का अर्थ 2021 में मौद्रिक नीति पर नियंत्रण होगा। शिकागो के फेड अध्यक्ष चार्ल्स इवांस और अटलांटा के राफेल बेस्टिक सहित अन्य फेड अधिकारियों ने कहा है कि वर्ष 2021 के अंत से पहले केंद्रीय बैंक की चल रही परिसंपत्ति खरीद की गति को कम करने में समर्थन करना चाहिए और अर्थव्यवस्था को मजबूती से वापस बढ़ना चाहिए।
इस सप्ताह फ़रवरी वायदा सोने के भाव सीमित दायरे मे रह सकते है और इसमे 49600 रुपय के निचले स्तरों पर समर्थन तथा 51000 रुपय के ऊपरी स्तरों पर प्रतिरोध है। चाँदी मार्च वायदा के भाव सीमित दायरे मे रहने की सम्भावना है और इसमें 67000 रुपय पर समर्थन और 70000 रुपय पर प्रतिरोध है।
Disinvestment, also known as divestment, refers to the process of selling off a company's assets or investments, often in the form of shares in state-owned enterprises. Governments or private entities may undertake disinvestment for various reasons, including reducing debt, improving efficiency, or focusing on core areas. In this blog, we’ll delve into what disinvestment means, why it occurs, and its impact on the economy and shareholders.
Disinvestment involves the reduction of an organization's stake in an asset or company. This can take several forms:
Selling Shares: The most common form of disinvestment is the sale of equity stakes in a company. Governments may sell shares in state-owned enterprises to private investors.
Asset Sales: Companies or governments may also sell specific assets, such as property or divisions of the business.
Privatization: In some cases, disinvestment can lead to the complete privatization of a previously state-owned enterprise.
Reducing Debt: Governments or companies may sell assets to reduce debt levels and improve their financial health.
Improving Efficiency: Disinvestment can lead to improved efficiency by transferring ownership to entities better equipped to manage the assets.
Focusing on Core Areas: Selling non-core assets allows organizations to concentrate on their primary business activities.
Generating Revenue: Disinvestment can generate substantial revenue, which can be used for development projects or other purposes.
Privatization: Governments may privatize state-owned enterprises to enhance competitiveness and operational efficiency.
Economic Growth: Disinvestment can stimulate economic growth by reallocating resources to more efficient private sector operations.
Market Efficiency: By transferring ownership to private entities, market efficiency can improve due to better management practices.
Shareholder Value: For companies undergoing disinvestment, shareholders might experience fluctuations in stock value based on the sale's impact.
Job Losses or Gains: Depending on the nature of the disinvestment, there might be job losses in the short term, but potential job creation in the long run.
Government Revenue: The revenue generated from selling assets can be used for public investments or debt reduction, benefiting the broader economy.
In India, the Disinvestment of BPCL (Bharat Petroleum Corporation Limited) is a notable instance. The Indian government decided to sell its stake in BPCL to private investors to reduce its fiscal deficit and focus on other critical areas. This move aimed to enhance the company's operational efficiency and competitiveness in the market.
Did you know that disinvestment is not limited to public sector enterprises? Private companies also engage in disinvestment to streamline operations or reallocate capital. For instance, Tata Motors has periodically sold off non-core assets to focus on its primary automotive business.
To achieve high returns over a short period, many investors prefer to do trading over other investing strategies as it helps them to get maximum investment benefits. There is a lot of trading experience and guidance is required to achieve a high return and hence most investors prefer to take a stock broker’s advice before investing in any stock.
To trade successfully in equity trading, it is compulsory to open a trading account with any stockbroking firm. Well, when it comes to the top stockbrokers who offer subsequently low brokerage rates with quality advisory services, then Swastika comes second to none. Swastika not only provides regular follow up calls but also quality customer services that leave the user satisfied.
If you are a newbie who often gets confused with trading terminologies, you come to the right place. Swastika’s learning courses will help you to get a deep insight into stock’s and their investment methods.
Let's understand what an Equity Trading Account is and how we successfully create Demat accounts.
Equity trading accounts are required to trade any financial securities. This account involves purchasing and selling of shares within a single account, which is known as Demat account or dematerialized account.
Equity trading account opening involves signing up for trading and Demat accounts. Both the accounts can be interlinked to your savings account for the transferring of funds.
A trading account lets you successfully trade in the Indian stock market. After opening a Demat account and trading account, you will get a unique identification number (UID).
A Demat account enables you to buy/sell and hold financial securities that too in a dematerialized form. Earlier, shares used to trade physically, however with the arrival of the Demat account, many problems have been resolved.
There are bountiful benefits of opening an Equity Trading Account:
Accessibility is such an important concept here and therefore it is suggested to go for an equity trading account that has accessibility to all the stock exchanges across the country.
Imagine you are in the middle of trading and often face multiple transaction issues such as transferring amounts. It not only creates hurdles in your transactions but also decreases the mode of trading.
Step 1:
You are required to choose a DP for your account.
Step 2:
The next step is to fill the account opening form for Demat and trading accounts.
Step 3:
Photo Id proof is required such as PAN card/ Voter ID card/ Passport.
Step 4:
Financial proof is required such as ITR acknowledgment, a copy of annual accounts and more.
Step 5:
Once you cleared all the above steps, you will receive Demat and Trading Accounts.
Stock trading is something that provides you with high returns too with a short period. Although there are multiple financial securities investors can invest their amount such as government bonds, debts, certificates of deposits. These securities give less return as compared to the stock market.
With Swastika’s equity trading account, you can seamlessly perform stock market operations. Swastika’s trading tips and recommendations will also help you to get the best stocks to invest in.
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