The Cost of Carry Model is a fundamental concept in finance used to calculate the fair price of financial futures contracts. This model is particularly relevant in the context of interest rate futures, stock index futures, and other derivatives where the underlying assets have associated holding costs and income. Components of the Cost of Carry […]
Futures contracts are standardized financial agreements between two parties to buy or sell an asset at a predetermined future date and price. Features of Futures Contracts in India: Types of Futures Contracts in India: Payoff from Futures Contracts in India: Long Futures Position: Short Futures Position: No Position (Closed before Expiry): Conclusion: Understanding the features, […]
Director Disqualifications: Under company law, a director can be disqualified for any of the following reasons: Effects of Disqualification: Once disqualified, a person is ineligible for directorship in the affected company or any other for five years. The Ministry of Corporate Affairs strictly enforces these provisions, publishing disqualified directors’ names on the government website. Remedies […]
Applicability of Woman Director: According to Section 149(1) of the Companies Act, 2013, certain companies are mandated to have at least one woman director on their board. Rule 3 further specifies that the following companies must appoint a woman director: The appointment must be made within six months of meeting the specified criteria. The woman […]
As per the Companies Act, 2013, directors can be classified into different types based on their roles, functions, and relationships with the company. Here are the main types of directors under the Companies Act, 2013: 1. Executive Director (Section 2(18)): 2. Non-Executive Director (Section 2(28)): 3. Independent Director (Section 149(6)): 4. Woman Director (Section 149(1)): […]
Eligibility Requirements for an Initial Public Offer (IPO): Entities Not Eligible to make an Initial Public Offer (IPO): General Conditions: An issuer making an initial public offer shall ensure that:a) it has made an application to one or more stock exchanges to seek an in-principle approval for listing of its specified securities on such stock […]
The Securities Appellate Tribunal (SAT) is a quasi-judicial body in India that hears appeals against decisions made by regulatory authorities in the securities market. The establishment of SAT is in line with the regulatory framework for securities and financial markets in India. The Securities Appellate Tribunals shall have, for the purposes of discharging their functions […]
Delisting of securities refers to the process by which a publicly-listed company removes its shares from trading on a stock exchange, thereby becoming a private company. Delisting can occur voluntarily at the company’s initiative or involuntarily due to non-compliance with exchange regulations or financial distress. A recognized stock exchange may, Delist any securities listed thereon […]
The issue of bonus shares is a corporate action wherein a company distributes additional shares to its existing shareholders without receiving any additional payment. Bonus shares are issued in proportion to the existing shareholding, and they are typically allotted to shareholders free of charge. The issuance of bonus shares is governed by the Companies Act, […]
An Information Memorandum (IM) is a comprehensive document prepared by a company or its financial advisors to provide detailed information about the business, its operations, financial performance, and prospects. It is often used in various financial transactions such as mergers and acquisitions, private placements, and initial public offerings (IPOs). The purpose of an Information Memorandum […]