Share Market Updates, Ideas and Tips

26/11/2019

What is karvy scam?

We will have to come to know the the facts before getting in to the details which are being produced below:

1)Customer, while opening a demat account, has to get the power of account signed which is basically done for the convenience or ease of trading so that when customer sells the shares he would not to Inform depositors to deduct such quantity of shares which are sold as this is done by intermediaries on behalf of their client due to POA.

Further,many a customer does not know while account opening that they are being signed on such kind of "Power of Attorney

In earlier days, we had to place the slip mentioning that so and so shares have to be deducted from our account and queries were to be done why do you want to transfer the shares and we had to satisfy the concerning agency. But gone are those days due to so called easiness of trading.

Due to taking the shield from such kind of Loopholes this scam happened:

Loopholes No.1
As per the Media Reports and various analysis made by experts it is believed that first they targeted the Dormant account in which no transactions were happened.
They just transferred the shares in a few quantilty initially just to come to know whether clients get aware for the same or not.

After conducting the same,it was observed by them, this modus Operandi is not detected by the clients so they just got lacuna in the system being targeting dormant accounts. Sebi in its interim order observed that prima facie a net amount of Rs 1,096 crore had been transferred by Karvy Stock Broking to its group company, Karvy Realty.

WHAT ONE NEED TO DO TO AVOID SUCH INSTANCES:
1) Do not keep your account dormant and check & get the updated your details.
2) Check any mail related to trade executed and Demat related transactions thoroughly and bring any anomaly you find in the same to the broker.
3)Do not leave your stock in brokers pool account for which you need to check fund or security balances for which mail is shared by Brokers.
4) Please check the report which is shared by NSDL/CDSL once in a month mentioning no of securities held/traded and other details.This is generally send between 8 to 10th of next month mentioning the details of last month transactions.

Loophole No 2

How such system was not developed in the one of biggest and reputed brokerage house that client has to be contacted for every trades he executes?

If it has not been developed then what about instructions of sebi regarding it and why auditor did not raise the issue??

This will be taken by the authority quite seriously as why the procedures were not followed and how did they escape from compliance prescribed?

It is suggested that opt for depositories at PSU or reputed private brokers.

Would like to mention there is no payment default in this case so one may breathe a sigh of relief.

As investor protection funds will be used and in shares it is easy to find audit trail so Sebi will go in to deeper and get the money back from culprits.

What Karvy lost:

The bigger problem here is that Karvy has destroyed the client-broker trust and the POA mechanism. Clients would think twice before signing the POA, even the existing ones would be re-thinking their relationship with their broker. After all, Karvy was among the oldest and most reputed brokers and registrars in the country.
As far as Karvy is concerned it will have a lot of explaining to do to its other stakeholders, especially those companies for whom it is a registrar. The trust deficit will be very hard to bridge. The company will have a very difficult task to save its reputation.

What financial market lost :

The Karvy episode is the latest in a series of events that have undermined trust in the country's financial markets. Like it or not, some of the mistrust will affect the activities of other brokers also, particularly the smaller ones.

Is customer at fault in the entire episode??

YES, Clients too are at fault to some extent. To avoid the inconvenience of signing and depositing the transfer slip or even electronically transferring them they agreed to the POA route. Would they have done the same to a bank by giving a blank signed check to their banker and ask him to transfer funds whenever there is a demand? If not then the shares in their Demat account should also be given the same respect as that of cash in their Bank.

What if you are a client of Karvy?

1) Raise complaints at BSE NSE online grievances portal
2) Complain at Scores which is redress system made by sebi
Link being shared :
https://scores.gov.in/

If you like it, please share to spread awareness.

11/02/2018

High Return on Capital Employed Companies

I'm sharing names of companies which I like

1. Castro India (178.8)
2. HUL (94.4)
3. Shanti feeds (62.6)
4. Page Industries (60.1)
5. 8 K miles Software (57)
6. CRISIL (52.8)
7. Care ratings (46.9)
8. Ajanta Pharma (45.8)
9. Pidilite (40)
10. ITC (36)

Figures in bracket indicate Return on Capital Employed

These companies are having near monopoly position in their sector and history of consistent returns

👇

1. Amar Raja Batteries
2. Bajaj Auto
3. Bajaj Finance
4. Castrol India
5. CRISIL
6. Exide
7. HDFC Bank
8. HDFC
9. ITC
10. Maruti Suzuki
11. Hero Moto
12. HUL
13. MRF
14. Pidilite
15. Sun Pharma
16. Sundram Finance
17. Titan
18. P & G

Following companies have history of doubling their profits every 3 years.
👇

1. Caplin Point Laboratories
2. Ajanta Pharma
3. PI Industries
4. Eicher Motors
5. Avanti Foods
6. Welspun India
7. Bajaj Finance

High Dividend Yield Stocks
👇
1. DCM Shriram -3.5%
2. HPCL - 4.8%
3. PTC India Financial - Services - 4%
4. RSWM - 3.2%
5. REC - 6.2%

Top agriculture stocks which will benefit from Budget 2018

👇

1. UPL
2. Coromonadel International
3. PI Industries
4. Bayer Cropscience
5. Rallis India
6. Kaveri Seeds
7. Monsanto India
8. Dhanuka Agritech
9. Insecticides India
10. VST Tillers Tractors

13/11/2017

Sun Pharma, Glenmark Pharma, Claris Lifesciences, Reliance & ONGC having big exposer in Venezuela..

if Country declares bankruptcy today..all stocks will be in pressure for 2-3 trading sessions...So if you holding above stocks, be alert & take a call accordingly.

13/09/2017

18/07/2017

I have recommended buying sintex pre demerger at 115.5
Post demerger I have suggested holding exiting sintex whereas most analyst recommended selling sintex around 19-20
At that particular time I have mentioned that my one year target is 44/45 on upside
Those holding should hold and find small report below
Sintex Industries’ business is undergoing a subtle transformation which the market is not paying attention to.

These factors are the following:

(a) The company is transforming from a manufacturer of high end fabric to compact yarn. This transformation happened in 2 phases and it incurred a capital expenditure of 4,300 crores. Compact yarns have better margins, has less wastage, and they are preferred by high end fabric makers.

(b) Once phase 2 goes live (in Aug 2017) Sintex will have 6 lac spindles. This will make Sintex the largest compact yarn player in India. The age of the spindles directly impacts the cost and productivity of the yarn.

Vardhman Textiles is the best player in the industry. 68 percent of Vardhman’s spindles is under 10 years of age. Sintex, with brand new spindles, will have higher productivity and lower cost than Vardhman Textiles.

(c) Sintex turns over its inventory every 39 days. This is the best in the industry. Trident is the 2nd best player. It turns over the inventory every 61 days.

Competitive advantages of Sintex versus its peers

Shyam explained that Sintex enjoys several competitive advantages which give it an edge over its arch rivals.

First, Sintex is located in Gujarat which is the heart of cotton in India. So, the raw material is available at cheaper rates because the transportation costs are lower.

Second, the State of Gujarat provides financial incentives to encourage cotton businesses. This is reflected by the fact that Sintex borrows funds at a throwaway interest rate of only 2 percent.

Third, Sintex’s spinning plant is a mere 10 kms away from the Pipavav port. This provides enormous cost advantages because 38 percent of the sales are from exports.

Textile segment is “on the cusp of a turnaround” and will “drive growth in future”. The logic is as follows:

“Sintex’s fiber-to-fabric business is the one of the oldest segment which contributes ~12% to the total revenue of the company. This segment is more focused on high end, value driven, and margin accretive products in the niche markets of the textile industry. In Q1FY17, Sintex has commenced commercial production of Phase 1 spinning plant (compact cotton yarn) at Pipavav with a capacity of 3.3 lakhs spindles running at ~80-85% capacity utilization in 9MFY17. The company is also in process of setting up another 3 lakhs spindles unit for blended yarn with a CAPEX of Rs. 2100 crs with an expected IRR of ~16-18%. The textile segment has the advantages of raw material cost, government textile policy, attractive power rates available at plant and many other benefits from the government which may resulting in healthy return ratios.”

04/06/2017

Dear Members..It gives me an immense pleasure to share with all of you our new page which consist of various ideas on personal finance and mortgage finance.

If you have any query,wants suggestions do mail us on [email protected] or chat thru messenger

Please like our page

Provide solutions for personal Finance, expert opinion about Credit Bureau & its related Queries including Mortgage Financing.

10/04/2017

*IPO Update:*♏

*ZOTA HEALTHCARE LTD*

*Issue Open 25/04/2017*
*Issue Close 28/04/2017*

*Price :- 121-125*

*Share Lot :- 1000*

*Amount :- 1,25,000/-*

*Issue Size: Rs.58 Crore (Biggest SME IPO)*

*List on NSE Emerge*

06/04/2017

Typical mentality of investor in last 6 months

October 2016: Sensex@26000
November : Let's wait for USA election impact
December : Let's wait for Demonitization impact
January 2017: Let's wait for Budget impact
February : Let's wait for UP election impact
March : Let's wait for RBI policy impact
April 2017: Sensex@30000.............
May 2017: Let's wait for Quarterly result impact
June : Let's wait for GST impact
July : Let's wait for Monsoon impact
August : Sensex@34000
September: Let's wait for.......
(Equity investments are subject to market risks )

Actually peoples have so much information now a days but don't have conviction. Get rid of noise and focus on bigger picture. We get information from various source but conviction you have to build ...........

10/03/2017

2% of India's GDP
ie. 2,00,000 Crore Blocked in
IPO of D-MART (so much Liquidity)

15/01/2017

*Thumb Rule of Financial planning.*

1. 30 % of your income must be used for *monthly living expenses.*

2. 30% of your income must be used for *Liabilities repayments*, if any..

3. 30% of your income must be *SAVED* and *INVESTED* for your future LIVING.

4. 10% of your income must be spared for *entertainments, vacations*

5. 6 months expenses must be available for *emergency fund* (should be invested in LIQUID FUND, FD Etc)

6. *Home loan* must be registered and apply on both *husband and wife name.* (Both can get benefits on Home loan Tax benefits)

7. Buying *second house for investment is not advisable* ( _Survey reports - it will fetch you only around 3% return_)

8. After 45 years of age, *not supposed to enter into any BIG LIABILITIES* (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.)

9. Have joint account @ Bank savings account.

10. Property must be *registered on both Husband and wife name*. (As per legal act – after husband first legal heir is wife, after wife it will go to children only)

11. Regular check on *Nominations at all financial instruments.* if not nominated, do it now..

12. Only in insurance policy, Claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement

13. Must have *Term Insurance* to financially secure future of your dependants..

14. *Don’t take any financial investment decisions EMOTIONALLY*, and also Avoid last minute tax saving investment decisions, plan well in advance..

15. *MEDICLAIM is must* (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into mediclaim)

16. For your *jewelry LOCKER*, Only one lakh is payable by bank, if theft or fire happen at bank. Provided insurance done.

17. Like same way *Government guaranteed only one lakh for your FD* also. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance)

18. Must know all *Tax implications.* You cannot avoid paying tax. But you can minimize by way of tax planning and investments..

19. All *financial documents must be kept safely* and keep family members informed of the same..

20. *Financial investments* must be followed through *personal financial advisor..*

21. *Review your portfolio at every six month..*

These are general suggestions, personal Finance and investment decisions depends upon case to case_

*Have a Healthy and Wealthy 2017..*

04/01/2017

Upcoming IPO:-

BSE INDIA Ltd.

Issue Opens 23th January 2017

Issue Closes 25th January 2017

Issue Size 1311 Crore.

No. of Shares for OFS 15,427,197 Equity shares

Price Band Tentative: Rs.800- Rs.850

Lead Manager's

Axis Capital, Edelweiss, Jeffries, Motilal Oswal, Nomura, SBI Cap, SMC Capt,Spark Capital.

Registrar: Karvy Computershare Pvt Ltd.

Face value: Rs. 2/- per Equity Share

04/11/2016

CIBIL MASKING
CIBIL Masking is nothing but an offer to defaulter to clear all the past dues along with penalties and interests. If borrower accepts CIBIL Masking offer then the bank promises to remove Written-off or Settled Status from the CIBIL Database.

In most of the cases, the recovery or credit improvement agencies lure the defaulter to pay the outstanding amount to increase the CIBIL Score. They misuse the term CIBIL Masking. It may or may not be possible in all the cases. Therefore, it is important to understand the details before making any decision.
As i mentioned that under CIBIL Masking, once the dues are cleared, the written-off or settled status is removed from the CIBIL report of the borrower for old credit histories. It’s a huge relief to the borrower but normally comes at a heavy price. The concept sounds good. Usually, CIBIL Masking has an immediate and substantial impact on your CIBIL Score depending on the type of account and fulfilment of commitment by the bank.

Now you must be wondering, Wow..great concept, where is the possibility of cheating in this case. You can be cheated if CIBIL Masking is promised by the agency/firm that does not have the authority to do so.
CIBIL Masking –
1. ONLY BANK or ORIGINAL lender can help in CIBIL Masking:

Only bank or the ORIGINAL lender is the authorized entity to make any changes in your CIBIL report. You should be beware of any promises from law firms, recovery agencies, credit improvement agencies, ARC etc. They cannot help in CIBIL Masking. Mostly these are independent agencies, commission agents or buy outstanding accounts at a heavy discount. For example, in the case of recovery agency they will buy an account with dues of Rs 50,000 at Rs 10,000 depending on the probability of recovery. Any recovery above Rs 10,000 is a profit for the agency. As a recovery agency, i can promise CIBIL Masking and will demand Rs 30,000. You should deal only with the bank or original lender.

2. Terms and Conditions on Bank’s Letter Head or through Email:
ORAL commitments have NO LEGAL standing. The trust factor exists only in writing i.e. in white. If the interaction is over email then it should be with the responsible employee of the bank not less than the Nodal Office Team of the bank. Reason being, the bank should not back out from the commitment. An oral commitment of a bank manager has NO VALUE.

3. NOC does not guarantee CIBIL Masking:

It’s the biggest misconception that if you receive NOC then all is well. In most of the cases, there is a clause in NOC that clearly mentions that “CIBIL record for the defaulted account will remain the same as reported on the occurrence of default i.e. Write Off or Settled status will remain the same till the old dues plus accumulated interest on the same are paid.”

How to Apply for CIBIL Masking?

The following process is a general process and may vary from case to case basis

1. You should approach the bank with a request to rectify your CIBIL Report. In your request, you should specifically mention that you are looking for CIBIL Making of the outstanding loan.

2. This request should be ideally placed with the Nodal Officer of the Bank or Nodal Office Desk. I don’t suggest to approach bank manager and other employees as they are normally clueless. They will waste your time.

3. For sure, the nodal office will revert to you with the details of the history of your account and outstanding amount along with calculation sheet. They also provide the date till which you can clear the balance outstanding.

4. Normally, the interest rate is demanded and penalties (if any) are waived off.

5. You can reply with your consent and agree to pay the amount demanded (if it is correct). You can demand the detailed terms and conditions of CIBIL Masking. Also, seek info within how many days, the bank will report to CIBIL from the date of payment. You can request them to share how the account will be reported to CIBIL after all the dues as demanded by the bank are cleared. .

6. Once you receive detailed terms and conditions & you are satisfied with the same. You can pay the outstanding dues under CIBIL Masking arrangement.

7. Share the payment receipt with the concerned officer with whom you were interacting and request him to initiate the process of CIBIL Masking.

8. You can demand fresh No Dues Certificate and NOC. NOC should not mention clause as i shared in “NOC does not guarantee CIBIL Masking”

9. You can follow up with the bank and once you receive confirmation from the bank on CIBIL Masking, you can pull out your CIBIL report to check the same.

10. At the same time, you can also raise an online dispute with CIBIL. They will check with Bank whether to update the same or not. YOU SHOULD EXERCISE THIS OPTION ONLY IF THERE IS A DELAY FROM THE BANK.

Please note that impact of CIBIL Masking cannot be quantified. For example, if you have three outstanding loans and you cleared one under CIBIL Masking then the impact will not be much. The impact on CIBIL Score may vary from case to case basis. The only guarantee is that it will positively impact CIBIL Score. In short, it is relative in nature.