Types of Mergers a) Horizontal Merger: A horizontal merger occurs when companies selling similar products in the same market and competing directly merge. This consolidation aims to benefit from economies of scale, reduce competition, and potentially attain monopoly status. An example is Facebook’s acquisition of Instagram in 2012 to expand its market share and product […]
Mergers and acquisitions (M&A) represent transformative transactions wherein the ownership of companies, business entities, or operational divisions is combined or transferred. As a strategic management practice, M&A enables enterprises to expand, streamline, and redefine their business operations or competitive positions. It involves the consolidation of two entities into one cohesive unit. A merger is a […]
Anchor investor means a Qualified Institutional Buyer (QIB) who makes an application for a value of at least 10 crore rupees in a public issue on the main board made through the book building process or makes an application for a value of at least Rs. 2 crore for an public issue on the SME […]
HNIs or high net worth individuals is a class of individuals who are distinguished from other retail segment based on their net wealth, assets and investible surplus. While there is no standard put forth for the classification, the definition of HNIs varies with the geographical area as well as financial markets and institutions. Though there […]
Foreign Portfolio Investor (FPI) means a person who satisfies the eligibility criteria prescribed under SEBI (Foreign Portfolio Investors) Regulations, 2019 which shall be deemed to be an intermediary in terms of the provisions of the SEBI Act, 1992. Categories of FPI Category I FPIs include: Category II FPIs include all the investors not eligible under […]
Qualified Institutional Buyers (QIBs) are investment institutions who buy the shares of a company on a large scale. Qualified Institutional Buyers are those Institutional investors who are generally perceived to possess expertise and the financial proficiency to evaluate and to invest in the Capital Markets. According to Regulation 2(1) of Securities and Exchange Board of […]
When a recognized stock exchange denies listing securities of a company, the company retains the right to appeal to SAT the Securities Appellate Tribunal . This appeal must be initiated within 15 days from the date of refusal. If the stock exchange fails to communicate its decision within the specified time, the appeal can be […]
Recognition of Stock Exchanges Application Process: Section 3 of the Securities Contracts (Regulation) Act, 1956 outlines the procedure for stock exchanges seeking recognition from the Central Government. Stock exchanges interested in recognition must submit an application in the prescribed manner, accompanied by specified particulars and copies of relevant bye-laws and rules. Contents of Application: Grant […]
The Insolvency and Bankruptcy Board of India (IBBI) has taken a significant step towards enhancing transparency in the insolvency resolution process for personal guarantors. It now mandates Resolution Professionals (RPs) to provide a copy of their report to both the creditor and debtor in all cases. This measure aims to ensure that both parties are […]
When it comes to mutual fund investing, the concept of persistence in performance holds significant importance for investors seeking long-term financial growth. Persistence refers to the ability of a mutual fund to maintain consistent performance patterns over an extended period. Understanding this phenomenon is crucial for investors aiming to make informed decisions and build a […]