SEDEMAC Mechatronics IPO Review: Should You Subscribe or Skip?

When it comes to investing, the name of the stock market comes second to none as many investors or traders actively participate in trading and achieve profit from it.

Investors are of two types: first are those who hold equity investment for more than 1 year and show their income as LTCG or long term capital gains. The second type of investors is those who hold equity investments for more than 1 day or less than 1 year.

There are several types of investors in every financial market, each of them applies its strategy to achieve its financial goals. Hence, the ROI generated by each investor can vary from one to another.

Hence, taxation applied to people who depend on salaried income can be easily calculated. However, the taxation applied on trading income can be a bit complicated as compared to the former one.

Since the income generated from trading varies from trader to trader, taxation law cannot be applied uniformly to all the traders. Like income, the amount of tax applied can also be variable.

If you are new to the trading world, understanding taxation seems to be a difficult word for you.

Here, we will explore all the aspects of taxation that help you to understand tax on different trading styles.

Different Types of Taxation for Traders

Taxation in trading can be classified into four types: Long term capital gain, Short Term Capital Gain, Speculative Business Income, Non-Speculative Business Income.

All the types of taxation along with their features and benefits are mentioned below; read them carefully:

Long Term Capital Gains

Long term capital gains are a type of tax levied by the government of India if an investment is held by a trader for a specific period. For instance, if a trader is seeking long term investment and parks its investment for 1 year or longer than it, any purchase or sales profit from the investment comes under long term capital gain tax.

If we talk about equity investment, Long term capital gains are exempted under section 10 of the Income Tax Act. In such cases, the profits are entirely tax-free. However, this is only applicable under certain conditions.

For instance, if you make any transaction via a recognized exchange and sell your equities within the country, long term capital gain taxes are exempted.

As said above, the tax implications for long term investors can be applicable under certain conditions.

If your equity investments cross the threshold of over 1 lakh in a financial year, the tax will be charged at 10%.

Short Term Capital Gains

In short term capital gains, the duration of holding securities is less than 1 year. According to the norms, the duration of investment in short term capital gains can be held for longer than a day but shorter than a year.

The tax implications on trading income via equity, any capital gains generated by selling a stock leads to a tax deduction of a profit of 15%.

However, your short term capital gains will never be taxed at a standard 15% rate unless your total taxable income is below Rs 2.5 lakhs.

Are capital losses carry forward in long term capital gain and short term capital gains?

Since long term gains are tax-free, they do not carry forward long term capital losses.

Short term capital gains are taxable and therefore they can be carried forward for a year of 8 years from the financial year during which the losses occur.

Business Income Vs Capital Gains

One of the simplest ways of filing your capital gain returns is to show them as a part of your income statement. However, there are cases where your profits/losses from share trading cant come under income tax returns.

This happens to the individuals, who are traders by profession or most of their equities are held as a stock in trade; in such cases, the profits or losses from the stock trading can be counted as business income and the returns generated on it must be filed accordingly.

To distinguish between normal capital gains and capital gains as a business income, the Income Tax has set certain parameters that are explained below:

If the volume of share trading transaction of any individual exceeds Rs 2 Crore in any FY then the individuals are required to get an audit and then the audit may insist them to file this income as a business income.

Another way of differentiating capital gains and capital gains as business income is the profit threshold.

The income tax department has set a fixed profit percentage (6%) to identify income coming from equities.

If the profit percentage is below 6% of the total volume traded, then the income comes from stocks and shares can be considered as business income rather than normal capital gains.

Speculative Business Income

Business income that comes under intraday equity trading is considered speculative. It is defined as the income generated through trades in which securities are bought and sold within the same day.

As the capital gain tax is taxed at a specific percentage; there are no rates for speculative business income. Instead, your speculative business income is taxed alongside your tax income according to section 43 of the Income Tax Act.

This means, if you have salaried income along with speculative business income, the tax will apply to your combined income.

Non Speculative Business Income

Business income that comes from trading futures and options on the recognized exchanges are considered as non-speculative business income. Just like speculative business income, the income generated from F&O also added with your other income sources. As a result, the appropriate tax rate slab is applied to your overall income.

Conclusion

Traders are very well informed about the market condition, stock’s value, company performances, similarly they also need to be informed about the tax rate slab applied to the different trading styles.

This information is not only apt for traders as well as for newbies who are seeking investment in stocks for the very first time.

दो सप्ताह से सीमित दायरे में चल रही कीमती धातुओं में अक्षय तृतीया पर कीमतों में सपोर्ट देखने को मिला है। सोने की कीमतों में पिछले सप्ताह निचले स्तरों से 300 रुपये प्रति दस ग्राम सुधर कर 47600 और चाँदी की कीमते 600 रुपये प्रति किलो सुधर कर 70700 पर रही है।  अमेरिका और यूरोप में घटते कोवीड मामले के कारण अर्थव्यवस्था मे सुधार हो रहा है जिसके कारण मुद्रास्फीति में बढ़ोतरी देखि गई है। गुरुवार को जारी अमेरिकी वार्षिक कंस्यूमर प्राइस इंडेक्स के आंकड़े 2.6 प्रतिशत से बढ़कर 4.2 प्रतिशत पर पहुंच गए, जिससे सोने के भाव को सपोर्ट मिला है।मुद्रास्फीति में बढ़त के कारण डॉलर इंडेक्स में उछाल देखने को मिला लेकिन अमेरिकी फ़ेडरल रिज़र्व की तरफ से ब्याज दरों में समय से पहले कोई बदलाव नहीं करने के बयान पर डॉलर में दबाव बना रहा। तेज़ी से होते टीकाकरण और बड़े राहत पैकेज से अमेरिकी आर्थिक आकड़ो मे मजबूती देखि गई है। अमेरिकी फ़ेडरल रिज़र्व के अधिकारिओ द्वारा मुद्रास्फीति में बढ़ोतरी को अस्थाई बताया है और अर्थव्यवस्था मे वर्ष के अंत तक अच्छी मजबूती आने की सम्भावना व्यक्त की है।हालाँकि आर्थिक विकास आने वाले वर्षो मे सामान्य गति से ही बढ़ने के संकेत भी दिए है। बढ़ती मुद्रास्फीति पर फेड का शांत बने रहना कीमती धातुओं के भाव को सपोर्ट कर रहा है। लंदन मेटल एक्सचेंज में औद्योगिक धातुओं के भाव में अप्रत्याशित बढ़ोतरी होने के कारण अतिरिक्त मार्जिन लगाने से औद्योगिक धातुओं में गिरावट रही जिसके चलते चाँदी की कीमतों में भी दबाव रहा।

तकनीकी विश्लेषण

घरेलु वायदा बाजार में सोने के भाव 47000 रुपये के ऊपर बने रहने में कामयाब हुए है जिससे इसमें तेज़ी बने रहने की सम्भावना है। सोने में 46400 पर सपोर्ट है तथा 48000 रुपये पर प्रतिरोध है। चाँदी में भी तेज़ी रहने की सम्भावना है। इसमें 69000 रुपये पर सपोर्ट है और 73000 रुपये पर प्रतिरोध है।

There are different types of investment stocks available in the stock market such as debt fund stocks, mid cap stocks, growth stocks and more.

Many investors invest in these stocks to get high returns with limited investments. However, there are other stocks too, that give investors regular payments against investment amounts. Such stocks are known as dividend-paying stocks.

Investing in dividend stocks is a great choice as it allows investors to meet their cash requirements as well as gives them a chance to see their stock value grow upward in the future.

Here, we will discuss everything about dividend-paying stocks and the rules you should follow while investing in them.

Before, getting started, let’s get acquainted with the term “Dividend”.

Dividends can be cash, reward or anything that a company gives to its shareholders against the shares they bought of a company.

Dividends can be issued in several forms such as cash payments, stocks or other forms.

Who declares dividends?

A company’s dividend is decided by its board of directors and it requires the shareholders’ approval as well.

A company does not need to declare its dividend. It is a part of a company's profit that the company distributes to its shareholders.

Smart Rules to Follow While Investing in Dividend Paying Stocks

Get a Detailed Insight into the company

Before investing in dividend stocks, it is important to do a stock market research and get detailed knowledge about a company and the sector in which it operates. This is because the potentiality of a dividend stock is highly dependent on the company’s fundamentals and the sector that it belongs to.

For instance, if the company operates in a volatile sector that is highly fluctuating in nature such as energy, it would affect the dividend price for sure.

Therefore, be careful before investing in these stocks. Also, don't forget to check the basic details of a company (stock value, past performance) and the risks associated with it.

Go For the Companies with Consistent Dividend Payments

Investing in the companies that give consistent dividend payout is always considered a better option. Consistent dividend payments is a sign of a strong company. This means, the company is constantly growing and has a strong background with long term stability.

Dividend incomes generated by these companies are consistent. Even if the dividend increases by a small number per year, they can give you incremented results due to compounding effects.

Be Aware from High Debt Companies

It is important to check the debt ratio of a company before opting for dividend stocks. If a company pays a good dividend payment despite having a high debt; then check the company details carefully.

They do so just to keep their stocks valuable. Hence, always check the debt market ratio of a company as the lower the ratio is; the more stable the company is or vice versa.

If the debt market ratio of a company hasn’t decreased with the time despite paying a high dividend, it would be ideal to not invest in such stocks as the debt impacts the value of the stocks which also affect the dividend payments in the future.

High Dividend Yield is Not a Sign of a Good Company

Many of you might think the stocks that offer a high dividend yield can be great stock. However, this is not so true. Sometimes, a high dividend yield is a way to mislead you.

Companies that pay a high dividend yield may be a sign of underperforming security and therefore it is of no use. Therefore, don't make decisions that completely depend on high dividend yield. While doing so, kindly check other factors too (debt market cap ratio, stock’s value, performance, future growth etc).

Pay Attention to Payout Ratio

The payout ratio tells the company’s ability to support dividend payouts. If the ratio exceeds 1 then the company pays more dividend to its shareholders than its earnings which makes it ambiguous about the company’s asset value and long term stability.

How to Identify Good Dividend Stocks?

The following steps can be used to identify the potential dividend stocks:

Step1: Check out the profit and loss of a company.

Step2: Check the earnings per share of a company i.e. whether it has grown in the 5 years or not.

Step3: Measure the growth of dividends per share in the last 5 years.

Step4: Compare if EPS growth and dividend per share growth are similar.

If EPS and Dividends per share growth are similar then the company is trustworthy, know why?

• Earnings per share mean the company's net profit is growing.
• Dividend per share growth means a company gives a consistent dividend to its shareholders.
• EPS growth similar to Dividend per share growth means as a company's profit will increase in its future, its dividend will also grow.

Difference Between Dividend Stocks and Fixed Deposits

Which is a better place to invest in; dividend yield stocks or Fixed Deposits? Many investors find FDs is the better place to invest while stock market lovers give preference to good dividend yield stocks than FDs.

Although both the instruments provide better returns to investors, the difference may depend on the investors.

Dividend stocks offer three benefits to the investors:

First: Although the starting yield on the dividend is slow compared to FD’s interest, it improves with time. Also, good dividend stocks provide stable yield income in the short term.

Second: Dividend stocks provide you with long term gain. Dividend per share will also improve yield on the dividend. Another advantage is: as the share price will also improve with time which provides a double profit for the investors.

If we talk about Fixed Deposits, then the interest rate is fixed. Also, it will never grow with time.

Conclusion

Dividend-paying stocks are the additional ones issued to the shareholders as a reward. Nevertheless, dividend-paying stocks provide consistent returns to their shareholders, one should not invest in such stocks without getting complete information about the company. Just because the company pays a high dividend doesn't necessarily mean it has good worth. Therefore, it would be ideal if you check the company’s annual report, earning growth, consistency of dividend payouts before investing in such stocks.

The Ministry of Company Affairs (MCA) has asked market controller SEBI to fix the principles for the listing of new businesses. It has requested SEBI to pull out some of the concessions given in the listing to new companies.

SEBI has proposed to diminish this cutoff from 70% to 40 per cent. However, if the startup is not making a profit, it can also be listed on the mainboard, provided the institutional investors hold a 75 per cent stake in the company. However, many startups have been seeking relief in the institutional investors' stake of 75 percent.

However, the MCA became more lenient and made the limit to be up to 50 per cent, to which SEBI agreed. There was no reaction to messages shipped off SEBI and MCA in regards to this matter.

SEBI HAS DECIDED TO FORCE ASSET ALLOCATION BY CONSIDERING EMPLOYEES 20% SALARY AS FUND UNITS

What is a Mutual Fund Scheme?

If you invest 20 thousand rupees in a scheme of a mutual fund. Its NAV is 200 rupees. In this case, you will get 100 units.

How 20,000 divided by 200 gives you 100. these units are a result of investing in the scheme. Now suppose that in a year the NAV rises from Rs 200 to Rs 300 and you decide to sell it. Now you will get 30,000 rupees.

What has SEBI decided?

MMC i.e. Asset Management Companies (mutual fund houses that run schemes) will now have to pay 20% of their fund managers' salaries in units of the same scheme.

Of which he is the fund manager. In such a situation, the funds of the fund managers would also be invested in those schemes. So the performance of the schemes can be improved. The salary of all the employees of the fund house will be paid similarly.

These units will be secured for a base time of three years and workers would not have the option to redeem such units. On account of infringement of a set of principles, misrepresentation, and gross carelessness, the units will be mauled back, and the redeemed sum will be credited to the plan.

What Role Does the Fund Manager Play In It?

The fund manager ensures that the investors keep getting good returns from the fund. The fund manager is also responsible for making the wrong decisions.

The fund manager trying to get higher returns by breaking the benchmark of its fund Suppose last year you got a return of 10 per cent, then the next year there is an attempt of 13 per cent. Also, the returns of the benchmark index i.e. Sensex-Nifty, Midcap, and Small-cap are compared with the returns of the fund.

Why has SEBI made this Decision?

SEBI has taken this choice. On the off chance that in a fiduciary business when senior staff has their investments it makes them oversee cash all the more capably. If something has turned out badly, it solidly falls on the shoulders of these folks so the fund managers who have the cash ought to oversee it with the full obligation.

In such a situation, the expectation of getting more investors will increase.

Positives

• Results in benefit for the investors.
• Transparency in the investing field as directors would now contribute more.
• The interest of key supervisors and unitholders of Mutual Fund plans will be on a similar balance.
• There will be an increase in the confidence of the Mutual fund investors in the AMCs and thus help raise the securities market.
• Fund managers will work efficiently after taking money from investors in the way of expense as they will now have ownership to the fund managers.

Negatives

• Forcing individuals is never a smart thought. The subtleties are prohibitive on somebody's personal asset allocation and personal savings.it is up to individuals and their different risk appetites as to what is their portfolio.
• It depends on the sum that people are saving. It depends on CTC thus it is not a small percentage of bonus. It is not a percentage of investments.
• There is No connection between employees and performance. Making managers perpetual insiders is certainly not a smart thought. it will not guarantee performance.
• Lastly, it resembles convincing corporate administration to purchase just their organization stock.

कीमती धातुओं के भाव मुनाफा वसूली के बाद फिर तेज़ हुए है। कॉमेक्स में सोना 1820 डॉलर प्रति औंस के ऊपर निकल चुका है। कॉमेक्स वायदा चांदी भी 2745 सेंट के स्तरों पर पहुंच गई है। पिछले सप्ताह घरेलु वायदा सोना 2 प्रतिशत तक तेज़ हुआ और इसके भाव 46800 रुपय प्रति दस ग्राम के स्तरों पर रहे। चाँदी के भाव भी सप्ताह मे 5 प्रतिशत तेज़ हो कर 71600 रुपये प्रति किलो पर रहे। कोरोना के बढ़ते मामलो के कारण प्रमुख अर्थव्यवस्थाओं से जारी राहत पैकेज से मुद्रास्फीति बढ़ने का अनुमान है। बढ़ती मुद्रास्फीति के कारण सुरक्षित निवेश की मांग बढ़ी है।

भारत में बढ़ते कोविड मामलों के कारण वैश्विक अर्थव्यवस्था चिंता में है जिससे डॉलर में गिरावट देखि गई है। डॉलर एक सप्ताह के निचले स्तर पर आ गया है और अमेरिकी 10-वर्षीय ट्रेजरी की उपज, सकारात्मक आर्थिक आंकड़ों होने से दो सप्ताह के निचले स्तर के करीब पहुंच गई है। अमेरिका द्वारा गुरुवार को जारी किए गए बेरोज़गारी आकड़ों के मुताबिक पिछले सप्ताह की तुलना में 498,000 प्रारंभिक बेरोजगार दावे दर्ज किए गए है, जो मार्च 2020 के बाद से सबसे कम संख्या है। अमेरिकी पैरोल के आंकड़े अनुमान से कमजोर दर्ज किये गए जिससे कीमती धातुओं के भाव ऊपरी स्तरों पर बने रहने में कामयाब हुए है।

आगामी सम्भावना

इस सप्ताह कीमती धातुओं में तेज़ी रह सकती है। सोने मे 48500 रुपये पर प्रतिरोध है और 47500 रुपये पर सपोर्ट है। चाँदी में 73800 रुपये पर प्रतिरोध है तथा 70500 रुपये पर सपोर्ट है।

Apart from last year's lockdown journey, we all accept a better chance in the year 2021, where the whole country suffers under it, the country also faces huge economic losses and has gone through a tough time.

Even the financial markets collapsed to their highest level. But this year in 2021 we saw some good signs of recovery along with multifold returns from the markets.

Especially from newly listed companies since from January 2021, there are 18 companies got public or (SME-IPO) out of which  11 companies have given fabulous listing gains whereas 7 companies were not up to the mark and gave a negative listing from which  2 companies outperform after its negative listings.

List of IPO in 2021 With their Performance

Indian Railways Financial Corporation  (IRFC)

IPO Performance: A company with an issue size of Rs 4633.38 Cr with the issue price of Rs 26 per share, has given a  negative listing on listing day. The stock is listed at Rs 24.90 with a discount of -4.42 %. IRFC is trading still below its issue price with a negative return of 19.23%.

Indigo Paints Ltd (Indigo)

IPO Performance: A Company with an issue size of Rs 1176.00 Cr with the issue price of Rs 1490 per share, has given a positive listing on listing day. The stock listed at Rs2607.50, and closed Rs 3118.65 with a Premium of 109.31%. Indigo is trading still  above  its issue price with a positive return of 53.8%

Home First Finance Company

IPO Performance: A Company with an issue size of Rs 1153.72 Cr with the issue price of Rs 518 per share, has given a positive listing on listing day. The stock listed at  Rs 618.80 and closed 527.4 with a Premium of 1.81 %. It is trading still  above  its issue price with a positive return of 2.95%.

Stove Kraft Limited

IPO Performance: A  Company with an issue size of Rs 412.63 Cr with the issue price of Rs 385 per share, has given a positive listing on listing day. The stock listed at  Rs 498 and closed 445.95 with a Premium of 15.83 %. It is trading still  above  its issue price with a positive return of 28.96%.

Brook field India REIT

IPO Performance: A Company with an issue size of Rs 3800.00 Cr with the issue price of Rs 275 per share, has given a positive listing on listing day. The stock listed at Rs 281.70 and closed 268 with a discount of -1.83 %. It is trading still  below its issue price with a negative return of -7.75%.

Nureca Limited

IPO Performance: A Company with an issue size of Rs 100.00 Cr with the issue price of Rs 400 per share, has given a positive listing on listing day. The stock listed at Rs 615 and closed 645 with a premium of 66.66 %. It is trading still  above its issue price with a positive return of 236.48%.

RailTel Corporation Of India Ltd

IPO Performance: A Company with an issue size of Rs 819.24Cr with the issue price of Rs 94 per share, has given a positive listing on listing day. The stock listed at Rs 109 and closed 121 with a premium of 29.15 %. It is trading still  above its issue price with a positive return of 27.45%.

Heranba Industries Ltd

IPO Performance: A Company with an issue size of Rs 625.24Cr with the issue price of Rs 627 per share, has given a positive listing on listing day. The stock listed at Rs 900 and closed 812.25 with a premium of 29.55 %. It is trading still above  its issue price with a positive return of 14.67%.

MTAR Technologies Ltd

IPO Performance: A Company with an issue size of Rs 596.41Cr with the issue price of Rs 575 per share, has given a positive listing on listing day. The stock listed at  Rs 1050 and closed at 1082.50 with a premium of 88.22 %. It is trading still  above  its issue price with a positive return of 60.1%.

Easy Trip Planner Ltd

IPO Performance: A Company with an issue size of Rs 510 Cr with the issue price of Rs 187 per share, has given a positive listing on listing day. The stock listed at Rs 212 and closed 208 with a premium of 11.39%. It is trading still  above its issue price with a positive return of 5.61%.

Anupam Rasayan India Ltd

IPO Performance: A Company with an issue size of Rs 760 Cr with the issue price of Rs 555 per share, has given a negative listing on listing day. The stock listed at Rs 520 and closed 526 with a discount of -5.24%. Now the stock trading above its issue price with a positive return of 23.28%.

Craftsman Automation Ltd

IPO Performance: A Company with an issue size of Rs 823.70 Cr with the issue price of Rs 1490 per share, has given a negative listing on listing day. The stock listed at Rs 1359 and closed 1435 with a discount of -3.83 %. It is trading still below its issue price with a negative return of -8.1%.

Laxmi Organic Industries Ltd

IPO Performance: A Company with an issue size of Rs 600Cr with the issue price of Rs 130 per share, has given a positive listing on listing day. The stock listed at Rs 155 and closed 164 with a premium of 26.62 %. It is trading still  above its issue price with a positive return of 71.85%.

Kalyan Jewellers India Ltd

IPO Performance: A Company with an issue size of Rs 1175Cr with the issue price of Rs 87 per share, has given a negative listing on listing day. The stock listed at Rs 73.95 and closed 75.20 with a discount of -13.45 %. It is trading still below its issue price with a negative return of -33.22%.

Nzara Technologies Ltd

IPO Performance: A Company with an issue size of Rs 582.91Cr with the issue price of Rs 1101 per share, has given a positive listing on listing day. The stock listed at Rs 1990 and closed 1592 with a premium of 43.22 %. It is trading still  above its issue price with a positive return of 62.46%.

Suryoday Small Finance Bank Ltd

IPO Performance: A Company with an issue size of Rs 582.34Cr with the issue price of Rs 305 per share, has given a negative listing on listing day. The stock listed at Rs 292 and closed 277.80 with a discount of -9.45 %. It is trading still below its issue price with a negative return of -19.33%.

Barbeque Nation Hospitality Ltd

IPO Performance: A Company with an issue size of Rs 452.87 Cr with the issue price of Rs 500 per share, has given a negative listing on listing day. The stock listed at Rs 489 and closed 587 with a Premium of 18.08%. Now the stock trading above its issue price with a positive return of 21.56%.

Macrotech Developers Ltd

IPO Performance: A Company with an issue size of Rs 2500 Cr with the issue price of Rs 486 per share, has given a negative listing on listing day. The stock listed at  Rs 436 and closed 465.25 with a discount of-4.7%. Now the stock trading above its issue price with a positive return of 24.62%.