Futures trading involves a legal contract to buy or sell an asset at a predetermined price at a future date. It is used extensively across financial markets—be it equities, commodities, or currencies.
In India, futures contracts are available for:
💡 Example: A trader expecting crude oil prices to rise buys a futures contract. If the price increases by expiry, they profit.
Futures are often used to protect portfolios from adverse price changes.
Example: A farmer locks in the price of wheat by selling wheat futures on NCDEX, protecting against post-harvest price drops.
Retail traders speculate on price movements to make profits in short durations.
Example: Intraday traders frequently use Bank Nifty futures for margin-based trading.
Futures contracts require only a margin deposit, offering exposure to a much larger position.
⚠️ Note: Leverage can amplify both profits and losses.
To start trading, you need a demat + trading account and F&O activation with a SEBI-registered broker.
Let’s say you expect Reliance Industries to rise in price.
If it goes up to ₹2,600:
If it falls to ₹2,400:
As you can see, volatility and timing are crucial.
Always evaluate your risk tolerance before entering the F&O segment.
Swastika Investmart, a SEBI-registered and NSDL/ CDSL-compliant broker, offers:
✅ With over 30 years of trust and strong regulatory compliance, Swastika helps retail investors and HNIs confidently navigate the futures market.
Yes, through SEBI-approved brokers with activated F&O segments.
No, you can exit anytime before expiry.
Yes, due to leverage and market volatility. Beginners should start small or use demo accounts.
Varies by contract. Some futures require just ₹25,000–₹1,00,000 as margin.
Absolutely. Brokers like Swastika, Zerodha, and Angel One provide mobile platforms.
Futures trading can be a powerful tool when used with knowledge and discipline. Whether you're a hedger or a speculator, understanding how these contracts work—and being aware of the risks—is essential.
If you’re ready to explore futures trading, Swastika Investmart offers all the tools, research, and support you need to trade confidently in India’s dynamic financial markets.
👉 Start your F&O journey with Swastika – Where trust meets technology.
Silver, a commodity that has always been in high demand as it has been widely used in making ornaments. Also, it has been used for investment purposes for years.
It is one of the most useful and important metals in the world. It is used in several industrial processes, including electronics and photography, as well as jewellery making.
If we talk about the prices, then we’ve figured out that the price of this commodity is highly volatile, which makes it a suitable investment option for short-term traders.
Nowadays, silver is also considered a heavy metal for investment purposes and that’s the reason many investors are buying it for safe transactions.
If you want to invest in silver, you can buy physical silver or exchange-traded funds (ETFs).
These days Silver ETFs have emerged as an attractive investment vehicle for both retail and institutional investors. Let’s know about Silver ETF in detail:
An ETF is a fund that owns assets such as stocks or commodities and trades on stock exchanges. An ETF can be bought and sold like a common stock on a stock exchange at any time during the trading day.
Silver ETFs are made up of shares that represent an interest in the underlying asset. The price of each share of a silver ETF is determined by what the market is willing to pay for it at any given time during the trading day (like any other security).
When you buy or sell shares of an ETF, your broker will execute the order on behalf of his client (you) through an exchange where the security trades.
Talk to our experts to learn more about Silver ETFs - 0120 4400700
Unlike mutual funds, which are priced once per day at the close of business, silver ETFs trade throughout the day based on supply and demand. The price of an individual share will vary throughout the trading day as buyers and sellers interact with each other through computerized systems called electronic communication networks (ECNs).
As long as demand for a particular share remains greater than supply, its price will continue to rise until it reaches its maximum allowable trading price (MAWP) set by its issuer.
As long as demand falls below supply, its price will decline until it hits zero or becomes negative when everyone who wants to sell has done so and no one else wants to buy any more shares at that time.
Also Read - Golden Chance to Invest in Gold
The Income-tax slab rate will be applicable on returns of Silver ETFs if sold within three years of purchase. After which, 20% tax will be charged under long-term capital gains (LTCG) tax with indexation benefits.
Silver ETFs can help investors diversify their portfolios by providing exposure to one of the most popular precious metals on the market. Unlike gold, which has recently become more volatile and less liquid, silver is more stable and liquid.
As such, silver ETFs provide investors with a way to balance out their portfolios by adding exposure to another asset class that can reduce risk while still offering some potential returns.
Silver's price tends to rise when there is high inflation because it acts as an alternative store of value and a means of exchange during periods of hyperinflation or currency devaluation.
This makes it an attractive investment during times of economic uncertainty, particularly when prices are rising rapidly due to increasing demand from developing countries and growing debt levels in developed countries like India.
Also Read - Low-Risk Investment Options in India
Silver ETFs are listed on stock exchanges, which makes them easier to trade than physical silver. ETFs allow investors to buy and sell large amounts of silver without having to store it.
Silver ETFs are backed by a physical stockpile of silver, assuring that the fund is solvent and has the assets needed to meet its obligations. Silver ETFs can be sold short or used as collateral for other investments.
Silver ETFs are more liquid than physical silver. This means that you can buy and sell your silver ETFs with ease, while physical silver is more difficult to buy and sell.
Silver ETFs provide a quick way to invest in the commodity. Purchasing physical silver takes time, as you must find a seller and arrange for delivery.
By contrast, you can purchase an ETF at any time during market hours. You also don't have to worry about storing your investment or finding a safe place for it.
While both gold and silver can be risky investments, silver is generally more volatile than gold. This means that its price changes more quickly than gold's price.
This is due in part because most investors hold less interest in silver than they do in gold, which means that the supply and demand for silver tend to fluctuate more than it does for gold.
This can cause sudden spikes or dips in the price of silver, which makes it more difficult for investors to predict how much their investments will increase or decrease over time.
The scheme will try to generate returns that are in line with the performance of physical silver in domestic prices as derived from the LBMA AM fixing prices.
The scheme plans to invest its proceeds in physical silver and silver-related instruments. You can benefit from investing in silver ETFs because they provide greater liquidity and fewer storage costs than physical silver.
Aditya Birla Sun Life Silver ETF is an Open-ended Silver Commodities scheme offered by the Birla Sun Life Mutual Fund House.
The scheme aims to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking errors.
The current net asset value of the Aditya Birla Sun Life Silver ETF is Rs 62.9939 for its growth option, as of 24 May 2022.
Silver ETFs are similar to gold ETFs in that they are an investment vehicle that allows investors to buy and sell shares of silver. But there are some important differences between these two types of investments.
EBITDA stands for Earnings before Income, Tax, Depreciation, and Amortization. This is an important metric that tells you a company’s operating performance such as whether a company has an ability to generate cash flow or not. Many stock analysts use EBITDA to know a company's net earnings so as to know the share trading value of the same.
EBITDA is basically a financial metric that tells a company about its financial performance before tax, depreciation etc. EBITDA can also be used as a net income. In other words, EBITDA is a useful tool that helps company professionals to evaluate a business.
Business experts use EBITDA to compare two small businesses. Here are the important factors which need to be considered:
Earnings - Income get from an investment
Interest - Money paid toward a loan or debt incurred by deferring loan repayment
Tax - The government applied tax on the organization
Depreciation - The decrease in the life of the asset
Amortization - The process of reducing or paying off debt at regular intervals.
Asset - An asset which has some value and that can be tangible and intangible such as real estate and intellectual property.
Many experts considered EBITDA as a financial metric as it tells a firm’s operating profit without taking into account things like equipment, property and investment amount.
However, it is often used to cover the poor financial judgment. With all these aspects, it is still considered as an important financial metric.
EBITDA and EBIT are very much similar to each other. The only difference is that EBITDA includes Interest, Tax, Depreciation and Amortization whereas EBIT includes only Interest and tax. EBITDA is mainly used to compare different companies while EBIT is used to evaluate the profitability of a single company.
EBIT gives you complete information regarding a company’s operational health without the loss of money for Interest and Tax, however, it excludes a portion of money which is spent on Amortization and Depreciation.
The formula for calculating EBITDA is given below:
EBITDA = Net Income + Interest Expense + Taxes + Depreciation + Amortization
1) Acquire the Business Income Statement
An income statement simply means a document which depicts a business’s overall revenue and costs in different periods such as a fiscal quarter or a year. Income statements can be categorized into 2 categories: such as revenue and expenses. These categories can be subdivided into different categories such as specific earnings or costs.
2) Find out Figures
All the figures that can be used to calculate the EBITDA are present in the income statement. Now, you need to find interest expenses and taxes. This will be counted as a non-operating subcategory of the expense category. After that, you are required to write depreciation and amortization numbers.
3) Calculate EBITDA
The calculation of EBITDA can be done as:
Net Income + Tax + Interest Expense + Depreciation and Amortization
EBITDA margin shows the cash profit a firm can generate in a year. The calculation of margin can be more useful if analysts compare a firm’s performance to its competitors.
The formula of EBITDA is:
EBITDA Margin = EBITDA/ Aggregate Revenue
The EBITDA of XYZ is Rs 7,00,000 while the aggregate revenue for the same is Rs 70,00,000. A second company called DEF’s EBITDA is registered as Rs 8,00,000, while its aggregate revenue is 85,00,000.
According to the formula discussed above:
EBITDA Margin of Company XYZ Ltd is 7,00,000/70,00000 = 10%
EBITDA Margin of company DEF Ltd is 800000/8500000 = 9.41%
EBITDA can be used in the following business activities:
If you want to add the cost of extra machinery in your next year’s budget plan, EBITDA will come into play as it will tell you the overall company’s financial health along with the right timings regarding the addition of extra expense.
If you want to downsize your staff but get confused about your decisions, EBITDA analysis will help you make decisions objectively, not subjectively.
Let's say you've had your eye on a firm and are considering investing. The EBITDA may help you determine whether the firm has high growth potential, especially when compared to comparable companies, and whether or not joining the team is beneficial.
If you're ready to retire from your firm and want to sell it, and EBITDA analysis can show buyers that it's a good investment and help you choose the right asking price.
EBITDA is used to measure a company’s overall financial performance. Analysts use it as an alternative to the net income in some circumstances.
Tax is something that every individual has to pay whether on the income earned or the business involved. Taxes are compulsory contributions that are applied to individuals or corporations by government entities.
By collecting taxes from the public, the government uses the amount collected in public services such as building roads, schools, medicare and more.
The tax applies to many things. You normally pay tax on income earned, but many of you don't know that tax can be applicable to selling capital assets. In addition to this, if someone made gains from transferring capital assets, that can also be subject to gains tax.
In this blog, we will discuss the capital gain tax in India.
The profit or benefit you earned by selling a capital asset is known as a capital gain. The profit you made from the capital asset is of two types: Short Term Capital Gains and Long Term Capital Gains.
These gains heavily depend on the duration of the assets that come under your category.
Let’s know the conditions when you are required to pay capital gains:
1. Property
It includes both tangible and intangible properties.
Intangible properties include:
2. Securities
The securities that FIIs hold under the rules of SEBI.
Assets that are not Included under capital assets:
Capital gains come in two types: Short Term Capital Gains and Long Term Capital Gains. Since short term capital gains are not subject to security transaction tax are added to your income and then taxed as per the income tax slabs.
If the gains come under the scope of securities transaction tax, then a 15% of taxation is applied to a surcharge and education cess. However, a Long Term Capital Gain attracts a 20% tax in addition to a surcharge and education cess.
A capital asset which you hold for 36 months can be called a short term capital asset.
There are other specific assets whose holding period can be lowered to 24 months or 12 months.
Exceptions
Short term assets generally have criteria of holding for 24 months.
Examples are: Unlisted shares
Immovable properties such as buildings, land and house.
Note: If you exceed the holding period for more than 24 months, a Long Term Capital Gain would be applied.
Short Term assets Have a Holding Period of 12 months.
Equity shares that are listed on the Indian Stock Exchange
Units from UTI
Zero-Coupon Bonds
Government Securities and Debentures are listed on the stock market in India.
Long Term Capital Assets
Capital assets which you can hold for more than 36 months can be classified as long term capital assets. Mobile assets for instance jewellery, if held for 36 months, will be considered long term assets.
What is Long Term Capital Gain Tax (LTCG)
Long Term Capital Gains refer to the profit that you make from an investment for a long period. LTCG can be held for 1-3 years.
These gains are eligible to be taxed under the Income Tax Act called Long Term Capital Gain Tax.
Long term capital gains for debt and equity funds are very different. As equity funds have no tax on long term gains, debt funds have a 20% tax with indexation.
There is no tax exemption on Short Term Capital Gain Tax, Long Term Capital Gain Tax are subject to tax deductions. This shows that you can save money on Long Term Capital Gain Tax by applying certain rules which come under Income Tax Act.
If you want to get an exemption from paying capital gain tax is the reinvestment of the amount received from the sale of the property.
Take a look at the three main exemptions for long term capital gain:
Section 54: This includes the long term capital gain on the sale of a house and the reinvestment of the amount received on the other house.
Section 54EC: Long term capital gains on the sale of a house and reib=vest the amount received in bonds.
Section 54F: This relates to long-term capital gains on the sale of any asset other than a home and the reinvestment of the proceeds in the purchase of a home.
Capital Gains Account Scheme
You can deposit long-term capital gains in a CAGS account if you cannot invest them within the prescribed time frame. The funds must be used within a certain time frame to construct or purchase another residential property.
लगातार दूसरा सप्ताह सोने और चांदी के भाव के लिए बेहतर साबित हुआ है, हालांकि फेड मिनट्स के चलते कीमती धातुओं में बढ़त सीमित रही।
पिछले सप्ताह में घरेलु वायदा सोना 200 रुपये तेज़ होकर 51000 रुपये प्रति दस ग्राम के स्तरों पर पहुंच गया जबकि चांदी 800 रुपये तेज़ हुई और भाव 62400 रुपये प्रति किलो पर रहे। डॉलर, जो आमतौर पर सोने के विपरीत दिशा में चलता है, लगातार दूसरे सप्ताह गिरा है जबकि पिछले सप्ताह इसमें 1.4 प्रतिशत की गिरावट हुई है। फेड मिनट्स के मुताबिक आगे दो बार ब्याज दर वृद्धि के बाद अर्थव्यवस्था पर इसके प्रभाव का विश्लेषण किया जायेगा, जिसमे माना जा रहा है की महामारी के दौरान आक्रामक मौद्रिक नीति अर्थव्यवस्था को क्षति पंहुचा सकता है।
जिससे कीमती धातुओं के भाव को निचले स्तरों से सपोर्ट मिलने लगा है। अमेरिकी ट्रेजरी की पैदावार कम हो गई है, बेंचमार्क 10-वर्षीय नोट छह सप्ताह के निचले स्तर पर पहुंच गया है। मुद्रास्फीति का डर अभी दूर नहीं हो रहा है, जबकि आर्थिक आंकड़े और कॉर्पोरेट घोषणाएं धीमी आर्थिक विकास की ओर इशारा करती हैं। अमेरिकी जीडीपी -1.5 प्रतिशत तक गिर गया, जबकि यह -1.3 प्रतिशत पहले पूर्वानुमानित था।
पेंडिंग होम सेल्स का डेटा पिछले महीने के -1.6 प्रतिशत से कम हो कर -3.9 प्रतिशत तक घट गया। हालांकि, पिछले सप्ताह बेरोजगारी के दावे मजबूत रहे।
पिछले सप्ताह जापान से जारी मुद्रास्फीति के आकड़ो में बढ़ोतरी दर्ज की गई है जिससे कीमती धातुओं के भाव तेज़ हुए है।
सोने और चांदी के भाव में इस सप्ताह तेज़ी जारी रहने की सम्भावना है। सोने में 50500 रुपये पर सपोर्ट है और 51500 पर प्रतिरोध है। चांदी में 61400 रुपये पर सपोर्ट और 63500 रुपये पर प्रतिरोध है।
Gold has always been a popular investment option for investors. The yellow metal has been used as a store of wealth and a medium of exchange throughout history.
However, in the past few years, there has been a global surge in gold prices due to the global economic slowdown and rising inflation.
With the increase in gold prices, investors are now looking at investing in gold as an investment option. This has increased demand for gold-related products, including gold ETFs and gold mutual funds.
These products provide an easy way to invest in gold without taking possession of physical gold.
In this blog, we will discuss taxation on different types of gold investments like physical gold, digital gold, paper gold, and Gold derivatives.
Get the detailed information about Tax on Gold Investment Call us at 0120 4400700
If you want to buy physical gold, then there are several options. You can choose between bars and coins, which are available in a wide range of sizes and weights. There is also jewellery, which can be bought directly from the manufacturer or a jeweler.
Another way to invest in gold is through digital options like exchange-traded funds (ETFs). These are typically traded on stock exchanges just like stocks, bonds, and mutual funds but instead, represent shares in physical assets such as oil or gold bullion stored in vaults somewhere else in the world.
Also Read about Venus Pipes Limited IPO
Derivative contracts are agreements between two parties to purchase or sell something at a future date for an agreed-upon price.
Derivative contracts are used to hedge risk and speculate on future prices by buying or selling gold contracts before they expire.
The most common type of derivative contract is paper gold. Paper gold refers to trading on futures exchanges without taking possession of gold itself.
Paper gold also includes options that give buyers or sellers the ability to buy or sell futures contracts at a specified price within a specified period of time.
Any individual who sells physical gold will be subject to a 20% tax rate and 4% cess on LTCG(Long-term capital gain).
If you sell gold within three years of buying it, it is considered short-term; if sold after three years, it is considered long-term.
Know more about Strategies to Invest in Commodity Trading
If you sell your digital gold after holding it for less than three years, then you will be taxed at applicable income tax slab rates. However, if you hold your digital gold for more than three years, then long-term capital gains tax is applicable on selling it at 20.8% (including cess) with the indexation benefit.
The easiest way is by buying shares of an exchange-traded fund (ETF) which tracks some measure of gold prices, such as GLD or GDXJ.
But these ETFs don't always track real physical gold and may use futures contracts instead, which may not always be liquid enough to trade easily.
In India, the taxation of derivative contracts is quite a complicated process. It involves several aspects such as capital gains tax, dividend distribution tax, and income tax.
When a company's annual revenue is less than Rs 2 crore, 6% of the profits are taxed. Taxation on derivatives contracts can be claimed as company income, lowering the tax burden associated with such transactions.
Also Read about Delhivery Limited IPO
Long-term capital gains taxes are 20% + 4% less if you buy gold through mutual funds or ETFs.
If you buy physical gold and then sell it, you will have to pay long-term capital gains tax on the profit. The long-term capital gains tax rate is 20% + 4% less if you buy gold through mutual funds or ETFs.
However, if you sell the physical gold after holding it for more than one year, that transaction would be considered a long-term capital gain and taxed at 20%.
Gold is considered to be the most valuable commodity in terms of its weight, purity, and durability.
The value of gold has been recognized since ancient times, which is why it has always been considered a storehouse of value by people from all over the world. Several countries have allowed their citizens to invest in gold as a way to save for the future.
Venus Pipes & Tubes Limited (“Venus Pipes”) was incorporated on February 17, 2005. Venus Pipes is a pipes and tubes manufacturer with the sole focus on manufacturing welded and seamless pipes in a single metal category, i.e., stainless steel.
The company has grown well in the last three financial years due to improvements in the commodity cycles and high steel prices. The company’s current capacity utilization is above 90% and the company expects to more than double its capacity using the SME IPO proceeds. Further, they also plan to set up a piercing line for manufacturing hollow pipes with the capacity of 800 MT per month, as their backward integration strategy.
With the piercing plant, they will be able to produce hollow pipes from the SS round bar. Their products are largely used in industries like pharmaceuticals, food processing, etc. The GoI has announced Production Linked Incentive (“PLI”) schemes for boosting the domestic manufacturing in certain sectors, which shall have a consequent positive impact on their order book.
And schemes like Make in India, and Atmanirbhar Bharat that focus on indigenous manufacturing augur well for the company. China export rebate cessation and BIS norms provide industry tailwinds. The company has priced the issue at a P/E of 21.03 based on annualized numbers for FY22 which is slightly above its industry median P/E. Further, the commoditized & cyclical nature of the business and small issue size makes this issue suitable for aggressive investors only with a long term view.
COMPARISON WITH LISTED INDUSTRY PEERS (AS OF 31ST MARCH 2021)
Name of the CompanyEPS (Basic)NAVP/ETotal Income (Cr)RoNW (%)Venus Pipes & Tubes Ltd18.0430.4828.01312.059.18%Jindal Saw Ltd10.02218.399.6910,872.04.69%Ratnamani Metal & Tubes Ltd59.07425.3541.512,341.513.9%
Particulars (Rs. In Millions)FY 2021FY 2020FY 2019Equity Share Capital8.738.738.73Other Equity31.207.543.44Net Worth39.9316.2812.17Revenue from Operations309.33177.81118.75EBITDA34.7811.648.29Profit Before Tax30.956.494.95Net Profit for the year23.634.133.75
DISCLAIMER:
The information contained herein is strictly confidential and is meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”).
The contents of this document are for information purposes only. This document is not investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company.
All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment.
The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document.
SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as a forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments.
The users of this document must bear in mind that past performance if any, are not indicative of future results. The actual returns on investment may be materially different from the past. Investments in Securities market products and instruments included in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low-risk tolerance.
Such investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risk factors before making any investment in the Equity Shares of the Company.
Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with the preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report.
Compensation of our Stock Market Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusions from the information presented in this report. The research entity has not been engaged in a market-making activity for the subject company. The research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.
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