Equity share is a major source of finance for any company which provides the rights to vote in the meeting of the holder of the company and shares profits and claims on assets to the investors. Also known as ordinary shares, it symbolises partial ownership of a shareholder in which he takes the maximum entrepreneurial […]
SEBI’s Latest Notifications Mandate Shares and Securities in Demat Form
The latest notifications by SEBI restricts listed companies from accepting a request for transfer of securities which are held in physical form, with effect from April 1, 2019. (Read Notification) The recent amendments in provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, mandate the conversion of shares and other types of securities of listed […]
Complete Procedure for Bonus Issue of Shares by Companies
Bonus shares are given to the pre-existing shareholders free of cost in case the company accumulates benefits on earning. This is done to replace the dividend which has to be given to the shareholders thereby giving them free shares. As the bonus shares capitalize a fraction of the reserve, it is just a bookkeeping transaction […]
All You Need to Know About Debentures, Its Types, Advantages and Disadvantages
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 […]
