What are Debentures? A Debenture generally refers to a document that is issued by the company as evidence of its debt towards the debenture holders at a fixed rate of interest. In layman terms, you can mark the debenture document as the acknowledgment receipt of the company’s indebtedness towards its holders. Debentures are also known […]
What is the Need, Process, and Benefits of Preferential Allotment of Shares?
As per the Company Act 2013, the companies in India can raise funds via different methods, which include preferential allotment, right issue, IPOs, employee stock option plan (ESOP), and sweat equity shares. Among all the prescribed methods, the preferential allotment is considered to be the best fundraising option for unlisted companies. The procedure and provisions […]
Complete Procedure For Dematerialisation Of Shares Under RTA
Dematerialisation of shares Dematerialisation is the process of getting the physical certificates of shares converted in an electronic form of book-keeping. These physical certificates are maintained in an account, known as the Demat Account. The Depository Participant (DP) is the Agent who is the mediator between the Company and the Actual Depository. So basically, Dematerialisation […]
Mutual Funds: Types and Factors Playing an Important Role
Mutual Funds refers to the corpus of money amassed by various investors who desire to save their money and earn high via their investment. The accumulated money is then invested in different asset categories like debt funds, liquid assets etc. Each shareholder, therefore, participates proportionally in the gains or losses of the fund. The profits […]
Form No. SH-13 – Nomination Form
Pursuant to section 72 of the Companies Act, 2013 and rule 19(1) of the Companies (Share Capital and Debentures) Rules 2014] This nomination form is to be used by an existing individual, who holds the shares singly or jointly in the Company and wants to assign an official nominee to their investment folio. Note: Read […]
Form No. Sh-14 For Cancellation or Variation of Nomination
[Pursuant to subsection (3) of section 72 of the Form SH-14 of Companies Act, 2013 and rule 19(9) of the Companies (Share Capital and Debentures) Rules 2014] This is the Form No. Sh-14 to be used when you need to cancel or update an existing nomination. You can find here the application format along with […]
All You Need to Know About Foreign Currency Convertible Bonds (FCCBs)
In the finance and business sector, an individual is often encountered with a multitude of stocks, bonds, funds, etc. and their associated terms, which are not easy to understand. However, in order to make sound financial decisions, it is essential to have a proper understanding of all these relative terms and their underlying concept. In […]
Preference Shares and Its Different Types?
Preference shares are generally given priority over the common or equity shares by the company owners when they made payment of surplus or dividend. Well, those are a bit unfamiliar with the preferential allotment of shares, the preference shareholders are the first ones who get dividends in case the company decides to pay the same. […]
A Brief Overview of Employee Stock Option Plan (ESOP)
Employee Stock Option Plan (ESOP) refers to the employee benefits scheme under which the employees are allowed to purchase the shares of their company. The company encourages the employes to acquire firm ownership by offering the shares at a below-market rate in order to increase their involvement in the scheme. In many cases, the companies […]
Know The Advantages of Dematerialisation
The Indian capital market has witnessed tremendous growth in scale & depth in the last few years as in terms of listed companies, a number of stock exchanges, trade volumes of scrips, and investor population. Indian capital market could break the new ground because of the DEMAT account that facilitates the holdings of shares and […]
