Excerpts from the Preface:
Q. How do you make a small fortune in the stock market?
A. Start with a large one.
A prime example of the Indian stock market’s potential is Infosys. If you subscribed to 100 shares of Infosys at its 1993 IPO at a price of INR 95 per share, you would own 1,02,400 shares of the company today. At an average price of INR 700 per share, that investment would now be worth over INR 7 Crores!
Introduction:
Taxmann’s Stock Market Wisdom highlights the great potential of the stock market while guiding investors to invest wisely and how to avoid its pitfalls. It is an attempt to assist investors to understand the following:
· How the market system operates?
· How one should invest money in it?
· How one can generate wealth through it over the long term.
The author has also explained how the markets have evolved, what their present stage is, where they’re headed, and, of course, how you can benefit, with the help of multiple case studies.
· Featuring the following case-studies:
o India’s Top 25 Years Return Chart
o World stock exchange performance
o The Roller Coaster Journey of the SENSEX from 100 to 41,000
o Amazing story of Reliance Industries – The first Indian company to enter the 10 Trillion Market Cap Club
o Avenue Supermarts Ltd. – The company that defies gravity
The document discusses investment patterns in the stock market among TMU employees in Moradabad, India. It conducted a survey of 50 TMU employees using a 10 question questionnaire. The results were tabulated and shown in a pie chart. The study aims to help investors understand how to invest in the stock market. It provides background on the history and development of stock markets in India. It also defines key terms related to stock markets such as primary market, secondary market, bonds, and mutual funds.
The newsletter discusses the strong growth in the stock market from the previous Diwali to the current Diwali. It notes that analysts believe the bull run will continue for the next 4-5 years, though returns may slow. It advises remaining invested in equities but choosing the right mix of stocks and funds. It also profiles ESG funds, flexicap funds, and business cycle funds as good investment options in the current market. It highlights the inspiring story of an investor who achieved his goal of accumulating over Rs. 1 crore through systematic SIP investments over 10 years for his daughter's education.
This newsletter discusses the market reaction to rising COVID cases in April 2021. It summarizes that key indices like Nifty and Sensex saw high volatility as some investors believed cases would peak soon while others feared rising deaths. Overall, indices ended about where they started. It notes that while foreign investors were net sellers, domestic investors were net buyers, indicating greater local faith in managing the crisis. The newsletter also provides an inspiring case study of a 37-year old investor who started SIP at age 27 and has accumulated around Rs. 82 lacs, emphasizing the power of compound interest and disciplined long-term investing. It recommends dynamic asset allocation funds to help navigate volatility.
Tamohara investment newsletter September 2015tamohara
The document is a monthly newsletter from Tamohara Investment Managers discussing market volatility and corrections. It notes that corrections of 5-20% are normal even during bull markets. While markets correcting can worry investors in the short term, focusing on long term fundamentals is better than reacting to short term movements. Current market conditions do not show signs of euphoria seen late in past bull markets. Despite volatility, Indian markets are positioned for growth supported by stable macros, improving governance, and transitioning to consumption-driven growth in China. Investors are advised to think long term and do less reacting to daily news and movements.
The document discusses investment patterns in the stock market among TMU employees in Moradabad, India. It conducted a survey of 50 TMU employees using a 10 question questionnaire. The results were tabulated and shown in a pie chart. The study aims to help investors understand how to invest in the stock market. It provides background on the history and development of stock markets in India. It also defines key terms related to stock markets such as primary market, secondary market, bonds, and mutual funds.
The newsletter discusses the strong growth in the stock market from the previous Diwali to the current Diwali. It notes that analysts believe the bull run will continue for the next 4-5 years, though returns may slow. It advises remaining invested in equities but choosing the right mix of stocks and funds. It also profiles ESG funds, flexicap funds, and business cycle funds as good investment options in the current market. It highlights the inspiring story of an investor who achieved his goal of accumulating over Rs. 1 crore through systematic SIP investments over 10 years for his daughter's education.
This newsletter discusses the market reaction to rising COVID cases in April 2021. It summarizes that key indices like Nifty and Sensex saw high volatility as some investors believed cases would peak soon while others feared rising deaths. Overall, indices ended about where they started. It notes that while foreign investors were net sellers, domestic investors were net buyers, indicating greater local faith in managing the crisis. The newsletter also provides an inspiring case study of a 37-year old investor who started SIP at age 27 and has accumulated around Rs. 82 lacs, emphasizing the power of compound interest and disciplined long-term investing. It recommends dynamic asset allocation funds to help navigate volatility.
Tamohara investment newsletter September 2015tamohara
The document is a monthly newsletter from Tamohara Investment Managers discussing market volatility and corrections. It notes that corrections of 5-20% are normal even during bull markets. While markets correcting can worry investors in the short term, focusing on long term fundamentals is better than reacting to short term movements. Current market conditions do not show signs of euphoria seen late in past bull markets. Despite volatility, Indian markets are positioned for growth supported by stable macros, improving governance, and transitioning to consumption-driven growth in China. Investors are advised to think long term and do less reacting to daily news and movements.
How to-invest-in-the-philippine-market-for-newbies 1-tarpmike
The document discusses reasons why few Filipinos invest in the stock market. It notes that less than 1% of Filipinos invest in stocks, compared to 99% of Americans who invest in mutual funds and equities. Some key reasons cited include cultural factors like spending habits, fear due to ignorance of how the stock market works, and lack of financial literacy. The document aims to teach readers the basics of investing in stocks and how they can grow their money over the long run to achieve financial freedom and independence.
Study of volatility_and_its_factors_on_indian_stock_marketKarthik Juturu
The document discusses factors that contribute to volatility in the Indian stock market. It identifies several macroeconomic variables like geopolitical tensions, energy prices, inflation, interest rates, and government/RBI policies that create uncertainty and affect company valuations. It also notes that volatility has increased in recent years due to factors like increased financial leverage of companies. The main objective is to analyze the causes of stock market volatility in India and understand how the market reacts to different influences.
The document discusses the performance of the Indian stock market and debt market. It says that the Nifty and Sensex indexes are maintaining bullish momentum. Domestic mutual fund managers are regularly buying stocks due to high liquidity in the market. The debt market is also performing well due to upgrades in corporate debt ratings. Hybrid and dynamic allocation funds have outperformed many equity funds in recent months. It warns that investors should be cautious during bull markets to avoid high-risk products.
- The domestic equity market has continued its bull run from April 2021, with the Nifty rising from 14,867 to 15,763 over this period. Surprisingly, FIIs have been net sellers over these months while domestic mutual funds have purchased shares to sustain the market.
- Experts suggest the equity market rally will continue but with some consolidation. Investors should choose an appropriate asset allocation strategy and book some profits from equity schemes to lower costs and invest in dynamic allocation funds.
- The newsletter profiles the story of Mr. Murty who invested Rs. 50,000 per month via SIP and accumulated Rs. 1.68 crore over 10 years. He has opted to invest this corpus in dynamic allocation funds
The newsletter discusses the steady growth in the Indian equity market due to declining COVID cases and rising GST collections. It notes that SBI Mutual Fund's new fund offer 'SBI Balanced Advantage Fund' collected Rs 14,500 crore, making it the largest NFO in India. The editorial discusses maintaining a steady growth in investments by selling when the world becomes greedy and buying when fearful. It also covers asset allocation strategies and managing emotions during market fluctuations. The chapters discuss dynamic asset allocation funds and how they help avoid emotional investing. It shares the story of an investor who used such funds to generate a monthly annuity and beat inflation over the long term. The product focus is on key factors to consider when choosing a
OUR NEWSLETTER FOR AUGUST, 2021 IS ON STANDS. THIS NEWSLETTER MAGAZINE GOOD IDEA TO PLAN FOR FINANCIAL WELL BEING. THIS MAGAZINE ADDS VALUE TO ALL READERS !! THIS MAGAZINE IS COMPLIMENTARY TO ALL READERS !!
OUR JUNE, 2021, NEWSLETTER FOR AVID INVESTORS IS ON THE STANDS FOR JULY,2021 (ISSUE JUNE,2021). WOMEN AS INVESTORS IN OUR DOMESTIC MARKET. APART FROM OUR DOMESTIC MARKET INDICATORS, WE ALSO DEALT ON US MARKET AND EXTREMELY GOOD PERFORMANCE IN THE MONTH OF JUNE,2021. WE ALSO COVERED ON WOMEN, AS INVESTORS, WHOSE PARTICIPATION LEVEL IS GROWING YEAR ON YEAR. HOST OF ISSUES, WHICH SHOULD BE OF INTEREST TO ALL AVID INVESTORS, DON'T NOT MISS READING THIS JUNE, 2021 NEWSLETTER !! HAPPY SURFING !
The document provides information on the evolution of stock exchanges and key stock market indexes and terms in India. It discusses the founding and mergers of various exchanges, the founding and growth history of the key indexes Sensex and Nifty in India, the functions of stock exchanges, major stock exchanges in India, participants in the stock market, types of speculation, factors affecting stock prices, and the role of the market regulator SEBI.
This monthly newsletter provides an overview of the Indian stock market in April 2021, which saw high volatility due to rising COVID-19 cases. Key points covered include:
- Stock markets reacted nervously to rising case numbers but ended the month near their starting levels. FIIs were net sellers while DIIs were net buyers, indicating local confidence.
- Gold and pharmaceutical stocks performed well while overall market indices like Sensex and Nifty saw volatility.
- The newsletter recommends dynamic asset allocation funds to help navigate market uncertainty and stay invested through ups and downs.
- A case study highlights how regular SIP investing from a young age can build significant wealth over time through the power of compound interest.
The document discusses the performance of Indian stock markets and debt markets. It mentions that stock indices Nifty and Sensex are maintaining bullish momentum. Domestic fund managers are regularly buying equities due to high liquidity in the market. Debt markets are also performing well due to upgrades in corporate debt ratings. As a result, hybrid and dynamic allocation funds have outperformed many equity funds in recent months. The document cautions investors to be careful during bull markets to avoid high risk investments.
Common mistakes and uncommon losses: Real case studies from the Indian market. This presentation covers the case studies of the companies where the investment went down the drain.
The presentation was delivered at CFA Institute on 7th Mar 2020.
This presentation covers case studies as if we are in that time period and to check if numbers could tell us upcoming problems.
Added 3 new case studies and a quiz
Case study 1: Slide# 37-41
Case study 2: Slide# 42-47
Case study 3: Slide# 48-52
Quiz: Slide# 58
It also covers investing principles to screen stocks, avoid common mistakes backed by several real case studies from the Indian market
Objectives-
Quick screening to avoid major mistakes
What are the parameters that you must see
Sources to get the lists
Case studies covering failures and frauds
Delayed gratification: Most important quality
Nifty and Sensex is safely trading above their
resistance level and is continuously maintaining its
level under bull zone. Domestic fund managers are
regularly buying equities in due to huge liquidity
flow in the market.
Zercatto the basics-of_the_stockmarketDavid Mendes
The document provides an introduction to analyzing stocks from both a fundamental and technical perspective. Fundamental analysis looks at underlying company financials and economic factors, and is best for long-term investing. Technical analysis uses stock charts and indicators to identify patterns in price movements to predict future stock behavior and is more suited for short-term trading. Both approaches have merits, with the author's father preferring fundamental analysis of raw company numbers and his brother using technical analysis with charts, indicators and patterns.
The editorial summarizes the April 2021 issue of the monthly newsletter, which covers key concerns about the market's reaction to rising COVID cases. It highlights featured articles on volatility management and a case story that will inspire readers. The issue aims to help readers understand the market pulse during the COVID crisis and provides strategies to ride out volatility.
When you buy a share of stock, you become a part owner in a publicly held company. But what does that actually mean? Let’s take a closer look at how the stock market works
The document discusses the performance of various assets in August 2021. It notes that major Indian stock indices Nifty and Sensex continued their upward momentum from April. Some investors are fearful while others are greedy in the current scenario. It also reports that SBI Mutual Fund's new fund offer of SBI Balanced Advantage Fund collected Rs 14,500 crore, making it the largest NFO in India so far. This signals growing acceptance of mutual funds among retail investors in India. The editorial discusses maintaining steady growth in investments by selling when the world becomes greedy and buying when fearful, as per Warren Buffett's advice. It asks what the current market situation implies for equity allocation.
The document discusses the role and importance of stock markets. It notes that stock markets allow companies to raise capital and investors to gain ownership in companies. When economies are growing, stock markets generally rise as company profits increase, making shares more attractive. Conversely, stock markets tend to fall during recessions as profits decline. Over-the-counter markets serve as secondary markets for trading stocks not listed on major exchanges.
The document discusses the history and development of stock markets in India from their origins in Bombay in the 1800s to the present day. It describes the establishment of key stock exchanges across India as well as the founding of the National Stock Exchange in 1992. The document also outlines the primary and secondary markets and various investment services offered by Sharekhan, a retail brokerage firm.
Making &losing money in equity markets finalRam Mohan
This document provides an overview of investing in the Indian stock market. It discusses the history and purpose of stock markets, common stock market indices like the BSE Sensex, risks and returns of investing, fundamental and technical analysis approaches, and factors that influence market sentiment. The key points are that stock markets allow companies to raise funds and investors to potentially earn returns, fundamental analysis examines company financials to determine stock value while technical analysis uses past price patterns, and markets may experience bull and bear cycles based on overall economic conditions and investor psychology.
If you have watched the stock market for long period of time, you realize that it can be very unpredictable. One day bubbles flourish, things could get any better and then the next day it seem like the sky is falling.
How to-invest-in-the-philippine-market-for-newbies 1-tarpmike
The document discusses reasons why few Filipinos invest in the stock market. It notes that less than 1% of Filipinos invest in stocks, compared to 99% of Americans who invest in mutual funds and equities. Some key reasons cited include cultural factors like spending habits, fear due to ignorance of how the stock market works, and lack of financial literacy. The document aims to teach readers the basics of investing in stocks and how they can grow their money over the long run to achieve financial freedom and independence.
Study of volatility_and_its_factors_on_indian_stock_marketKarthik Juturu
The document discusses factors that contribute to volatility in the Indian stock market. It identifies several macroeconomic variables like geopolitical tensions, energy prices, inflation, interest rates, and government/RBI policies that create uncertainty and affect company valuations. It also notes that volatility has increased in recent years due to factors like increased financial leverage of companies. The main objective is to analyze the causes of stock market volatility in India and understand how the market reacts to different influences.
The document discusses the performance of the Indian stock market and debt market. It says that the Nifty and Sensex indexes are maintaining bullish momentum. Domestic mutual fund managers are regularly buying stocks due to high liquidity in the market. The debt market is also performing well due to upgrades in corporate debt ratings. Hybrid and dynamic allocation funds have outperformed many equity funds in recent months. It warns that investors should be cautious during bull markets to avoid high-risk products.
- The domestic equity market has continued its bull run from April 2021, with the Nifty rising from 14,867 to 15,763 over this period. Surprisingly, FIIs have been net sellers over these months while domestic mutual funds have purchased shares to sustain the market.
- Experts suggest the equity market rally will continue but with some consolidation. Investors should choose an appropriate asset allocation strategy and book some profits from equity schemes to lower costs and invest in dynamic allocation funds.
- The newsletter profiles the story of Mr. Murty who invested Rs. 50,000 per month via SIP and accumulated Rs. 1.68 crore over 10 years. He has opted to invest this corpus in dynamic allocation funds
The newsletter discusses the steady growth in the Indian equity market due to declining COVID cases and rising GST collections. It notes that SBI Mutual Fund's new fund offer 'SBI Balanced Advantage Fund' collected Rs 14,500 crore, making it the largest NFO in India. The editorial discusses maintaining a steady growth in investments by selling when the world becomes greedy and buying when fearful. It also covers asset allocation strategies and managing emotions during market fluctuations. The chapters discuss dynamic asset allocation funds and how they help avoid emotional investing. It shares the story of an investor who used such funds to generate a monthly annuity and beat inflation over the long term. The product focus is on key factors to consider when choosing a
OUR NEWSLETTER FOR AUGUST, 2021 IS ON STANDS. THIS NEWSLETTER MAGAZINE GOOD IDEA TO PLAN FOR FINANCIAL WELL BEING. THIS MAGAZINE ADDS VALUE TO ALL READERS !! THIS MAGAZINE IS COMPLIMENTARY TO ALL READERS !!
OUR JUNE, 2021, NEWSLETTER FOR AVID INVESTORS IS ON THE STANDS FOR JULY,2021 (ISSUE JUNE,2021). WOMEN AS INVESTORS IN OUR DOMESTIC MARKET. APART FROM OUR DOMESTIC MARKET INDICATORS, WE ALSO DEALT ON US MARKET AND EXTREMELY GOOD PERFORMANCE IN THE MONTH OF JUNE,2021. WE ALSO COVERED ON WOMEN, AS INVESTORS, WHOSE PARTICIPATION LEVEL IS GROWING YEAR ON YEAR. HOST OF ISSUES, WHICH SHOULD BE OF INTEREST TO ALL AVID INVESTORS, DON'T NOT MISS READING THIS JUNE, 2021 NEWSLETTER !! HAPPY SURFING !
The document provides information on the evolution of stock exchanges and key stock market indexes and terms in India. It discusses the founding and mergers of various exchanges, the founding and growth history of the key indexes Sensex and Nifty in India, the functions of stock exchanges, major stock exchanges in India, participants in the stock market, types of speculation, factors affecting stock prices, and the role of the market regulator SEBI.
This monthly newsletter provides an overview of the Indian stock market in April 2021, which saw high volatility due to rising COVID-19 cases. Key points covered include:
- Stock markets reacted nervously to rising case numbers but ended the month near their starting levels. FIIs were net sellers while DIIs were net buyers, indicating local confidence.
- Gold and pharmaceutical stocks performed well while overall market indices like Sensex and Nifty saw volatility.
- The newsletter recommends dynamic asset allocation funds to help navigate market uncertainty and stay invested through ups and downs.
- A case study highlights how regular SIP investing from a young age can build significant wealth over time through the power of compound interest.
The document discusses the performance of Indian stock markets and debt markets. It mentions that stock indices Nifty and Sensex are maintaining bullish momentum. Domestic fund managers are regularly buying equities due to high liquidity in the market. Debt markets are also performing well due to upgrades in corporate debt ratings. As a result, hybrid and dynamic allocation funds have outperformed many equity funds in recent months. The document cautions investors to be careful during bull markets to avoid high risk investments.
Common mistakes and uncommon losses: Real case studies from the Indian market. This presentation covers the case studies of the companies where the investment went down the drain.
The presentation was delivered at CFA Institute on 7th Mar 2020.
This presentation covers case studies as if we are in that time period and to check if numbers could tell us upcoming problems.
Added 3 new case studies and a quiz
Case study 1: Slide# 37-41
Case study 2: Slide# 42-47
Case study 3: Slide# 48-52
Quiz: Slide# 58
It also covers investing principles to screen stocks, avoid common mistakes backed by several real case studies from the Indian market
Objectives-
Quick screening to avoid major mistakes
What are the parameters that you must see
Sources to get the lists
Case studies covering failures and frauds
Delayed gratification: Most important quality
Nifty and Sensex is safely trading above their
resistance level and is continuously maintaining its
level under bull zone. Domestic fund managers are
regularly buying equities in due to huge liquidity
flow in the market.
Zercatto the basics-of_the_stockmarketDavid Mendes
The document provides an introduction to analyzing stocks from both a fundamental and technical perspective. Fundamental analysis looks at underlying company financials and economic factors, and is best for long-term investing. Technical analysis uses stock charts and indicators to identify patterns in price movements to predict future stock behavior and is more suited for short-term trading. Both approaches have merits, with the author's father preferring fundamental analysis of raw company numbers and his brother using technical analysis with charts, indicators and patterns.
The editorial summarizes the April 2021 issue of the monthly newsletter, which covers key concerns about the market's reaction to rising COVID cases. It highlights featured articles on volatility management and a case story that will inspire readers. The issue aims to help readers understand the market pulse during the COVID crisis and provides strategies to ride out volatility.
When you buy a share of stock, you become a part owner in a publicly held company. But what does that actually mean? Let’s take a closer look at how the stock market works
The document discusses the performance of various assets in August 2021. It notes that major Indian stock indices Nifty and Sensex continued their upward momentum from April. Some investors are fearful while others are greedy in the current scenario. It also reports that SBI Mutual Fund's new fund offer of SBI Balanced Advantage Fund collected Rs 14,500 crore, making it the largest NFO in India so far. This signals growing acceptance of mutual funds among retail investors in India. The editorial discusses maintaining steady growth in investments by selling when the world becomes greedy and buying when fearful, as per Warren Buffett's advice. It asks what the current market situation implies for equity allocation.
The document discusses the role and importance of stock markets. It notes that stock markets allow companies to raise capital and investors to gain ownership in companies. When economies are growing, stock markets generally rise as company profits increase, making shares more attractive. Conversely, stock markets tend to fall during recessions as profits decline. Over-the-counter markets serve as secondary markets for trading stocks not listed on major exchanges.
The document discusses the history and development of stock markets in India from their origins in Bombay in the 1800s to the present day. It describes the establishment of key stock exchanges across India as well as the founding of the National Stock Exchange in 1992. The document also outlines the primary and secondary markets and various investment services offered by Sharekhan, a retail brokerage firm.
Making &losing money in equity markets finalRam Mohan
This document provides an overview of investing in the Indian stock market. It discusses the history and purpose of stock markets, common stock market indices like the BSE Sensex, risks and returns of investing, fundamental and technical analysis approaches, and factors that influence market sentiment. The key points are that stock markets allow companies to raise funds and investors to potentially earn returns, fundamental analysis examines company financials to determine stock value while technical analysis uses past price patterns, and markets may experience bull and bear cycles based on overall economic conditions and investor psychology.
If you have watched the stock market for long period of time, you realize that it can be very unpredictable. One day bubbles flourish, things could get any better and then the next day it seem like the sky is falling.
The document provides an overview of the different investment sectors in India in 2010, including factors affecting trends in each sector. It discusses the major investment sectors at that time such as bank deposits, life insurance, real estate, gold, stocks, bonds, and commodities. It also outlines three major investment projects underway in India: Virgin India, Reliance Power Project, and Bharti Walmart.
- The document discusses that Indian stock markets are in a bull zone and domestic fund managers are regularly buying equities due to high liquidity. Debt markets are also performing well due to improved corporate debt ratings.
- Hybrid and dynamic asset allocation funds have outperformed many equity funds in recent months. During bull markets, investors tend to take high risks for high returns but should remain cautious.
- The newsletter provides advice on managing investments and behavior during bull markets, including booking partial profits and balancing portfolios across sectors and fund types. It also shares a story of an individual who created a retirement corpus through disciplined SIP investments over time.
Investing in stocks involves buying shares of companies that are traded on a stock exchange. Over the long term, studies have shown that investing in stocks can be a good way to grow wealth, but there is also risk of losing money, especially in the short term. It is important for investors to understand how the stock market works and to have an investment strategy that defines when they will buy and sell stocks based on factors like company performance and overall market conditions. Different types of stocks include blue chip stocks from large, established companies, income stocks that pay dividends, and growth stocks from smaller companies with potential for high returns.
INVESTMENTS and INTRODUCTION TO SHARE MARKET.pdfPRADEEPKR41
This document provides an introduction to investments and the share market in India. It discusses that financial literacy and investment in stocks is still low in India compared to other countries. The main objectives of investments are maximizing returns while minimizing risks and losses, and beating inflation. The share market allows investors to buy and sell shares of publicly traded companies, with prices driven by supply and demand which are influenced by global market conditions, company performance, and economic factors. Some basic share market terms are defined like bear/bull markets, market capitalization for large, mid, and small companies, and the BSE Sensex and Nifty 50 indexes. Common stock market myths are debunked, and examples are provided of financial parameters and charts used for
Indian equity markets have continued their bull run in July 2021, supported by strong buying from domestic mutual funds despite FIIs being net sellers. Experts feel the bull run may continue but with some consolidation ahead. Investors are advised to book partial profits and rebalance portfolios by increasing allocation to banking, infrastructure and IT sectors through selected funds. The newsletter also profiles the investment journey of Mr. Murthy, who created a retirement corpus of Rs. 1.68 crores through SIP in mutual funds and has opted to receive monthly payments of Rs. 85,000 through a dynamic asset allocation fund.
The document provides an overview of elementary concepts in the foreign exchange (forex) market, including:
- Currency pairs involve a base currency denoted on the left and a counter currency on the right used for payment. The exchange rate is the price of the base currency in terms of the counter currency.
- The spread is the difference between the buying and selling price and represents the trader's commission. Pips refer to the smallest incremental change in a currency's exchange rate.
- On average, the EUR/USD fluctuates about 100 pips daily, representing a 0.7-0.8% change. More turbulent days see 200-300 pip moves or up to 2% changes. This stability
How to Trade the Forex Market by Vince Stanzione Deriv.comVince Stanzione
1. Digital options and multipliers allow forex trading with limited risk, as you know the maximum loss upfront and can never lose more than your stake.
2. Multipliers let you multiply potential profits up to 1,000x without increasing your risk.
3. Deal cancellation gives you an hour to cancel a losing trade for a small fee to get your full stake back.
How to Make Money Investing in Stocks in Any Market.pdfMuhammad Waqas
Concept #1 refers to the cyclical nature of markets, with recurring bull and bear markets. Bull markets allow most investors to make money, but are always followed by bear markets where losses of 50% or more are common. Concept #2 is that one can make money by shorting stocks, which is betting their prices will fall, though it carries risk of losses if prices rise instead. Inverse ETFs provide a simple way to short the overall market by going up when indexes go down, allowing potential profits even in a declining market.
- The equity market in India is continuously rising since April 2021, though FIIs have been net negative sellers over this period. Domestic mutual funds have been net buyers and supported the market.
- Experts suggest the bull run will continue but some consolidation is possible. Investors should book partial profits and rebalance portfolios with a focus on banking, infrastructure and IT sectors using flexible equity and dynamic allocation funds.
- The newsletter discusses an inspiring case study of an investor who created a retirement corpus of Rs. 1.68 crores through monthly SIPs over 10 years and has now opted to receive monthly payments through a dynamic allocation fund.
Trend analysis of stock market since 2000 tokbinayakiya
This PPT of mine Project Report on Trend analysis of stock market since 2000-2017. Any body need this than contact Me through Gmail. Binayakiya@gmail.com
In the Current Scenario of COVID Crisis, this newsletter issue is quite important for our readers.
In this issue, we have covered their key concern related to market's reaction on rising number of COVID cases. We have also added a featured article on 'Volatility Management'
The document provides an overview of shares, equity markets, stock exchanges, and related concepts:
1) It defines what shares and equity are, and explains that shares represent ownership in a company.
2) It describes what stock markets and stock exchanges are, including some of the major exchanges around the world.
3) It briefly discusses other related topics like brokers, demat accounts, and the purpose and function of stock markets.
Lakhraj Singh's topic discusses the stock exchange. A stock exchange is where stockbrokers can buy and sell securities like shares of stock and bonds. Initial public offerings are done in the primary market, while later trading occurs in the secondary market. Stock exchanges help companies raise capital, create personal wealth for investors, and increase investment in the economy. They also serve as an economic indicator and affect both investors and non-investors.
The document provides an overview of the stock market and how it works. It discusses what stocks are, how they are traded, and some key stock market indexes like the BSE SENSEX and Nifty 50. It also covers important concepts like fundamental analysis, technical analysis, and factors that influence stock prices. The document concludes with tips for making money in the stock market through diversification, patience, and avoiding overtrading.
GST Made Easy provides an Updated, Comprehensive & Simplified Analysis of each provision of the GST Law. The objective behind this book is that the understanding of GST should be as easy as ABC. This book provides answers to all your practical queries on GST.
The Present Publication is the 10th Edition, authored by CA (Dr.) Arpit Haldia & updated till 15th June 2021, with the following noteworthy features:
• [Focus on Analysis of Substantive Provisions of the GST Law] such as supply, time of supply, place of supply, value of supply, input tax credit, etc.
• [Guidance on all Procedural Provisions] relating to registration, composition scheme, returns, liability to pay tax, etc.
• [Coverage of Provisions of the GST Law] such as assessment, demand & recovery, refunds, e-way bill, job work, etc.
The contents of the book are as follows:
• Introduction
• An Overview of GST
• Person Liable to Pay Tax in GST
• Registration in GST
• What is Supply
• Time of Supply of Goods
• Time of Supply of Services
• Value of Supply
• Place of Supply
• Determination of Supply in the Course of Inter-State Trade or Commerce or Intra-State Supplies
• Job Work
• Invoice, Credit and Debit Notes
• Input Tax Credit
• Payment of Taxes
• Brief about Persons requiring Mandatory Registration
• Composition Levy – For Supplier of Goods and for Persons Engaged in Making Supplies Referred to in Clause (b) of Paragraph 6 of Schedule II
• Returns
• Assessment
• Refund
• Accounts and Records
• E-Way Bill
• Advance Ruling
• Composition Scheme for Services or Mixed Suppliers
• Demand and Recovery
• Penalty
• Rule 86B – Payment of 1% of Output Liability in Cash
Taxmann's Guide to SARFAESI Act 2002 & Recovery of Debts and Bankruptcy Act 1993Taxmann
This document provides an overview of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It discusses the background and objectives of the Act, key features such as enforcement of security, securitization, and asset reconstruction. It also examines related topics such as the constitutional validity of the Act, applicability to different entities, and interactions with other laws like the Recovery of Debts and Bankruptcy Act, 1993 and Insolvency and Bankruptcy Code, 2016. The document outlines the procedures for enforcement of security, sale of secured assets, appeals and penalties under the SARFAESI Act.
Taxmann's LLP Manual is a compendium Amended, Updated & Annotated text of the Limited Liability Partnership Act, 2008 (as amended by the Limited Liability Partnership (Amendment) Act, 2021) along with Rules, Circulars, and Notifications.
This book is divided into four divisions:
• Limited Liability Partnership Act, 2008
• Limited Liability Rules
• Circulars & Notifications
• Foreign Direct Investment in Limited Liability Partnership
The Present Publication is the 8th Edition & amended up to 13th August 2021, authored by Taxmann's Editorial Board, with the following noteworthy features:
• [List of Amendments, at a glance] made by the Limited Liability Partnership (Amendment) Act, 2021
• [Short Commentary] on the following:
◦ Limited Liability Partnership (Amendment) Act, 2021
◦ Limited Liability Partnership Act, 2008
• [Integrated LLP Rules, Circulars & Notifications, FDI Policy, FEMA Regulations]
◦ Limited Liability Partnership Rules, 2009 as amended up to date
◦ Limited Liability Partnership (Winding up and Dissolution) Rules, 2012
◦ Text of LLP Circulars & Notifications
◦ FDI Policy related to LLPs
◦ FEMA Regulations & Schedules related to LLPs
• [Taxmann's series of Bestseller Books] on LLP Laws
• [Follows the six-sigma approach] to achieve the benchmark of 'zero error'
GST Investigations Demands Appeals & Prosecution aims to cover the past & emerging jurisprudence on the subject matter along with a lucid commentary on the statutory provisions under the GST Law relating to the following:
• GST Inspection
• GST Search
• GST Seizure
• GST Detention
• GST Audit
• GST Confiscation
• GST Penalty
• GST Show Cause Notice
• GST Adjudication
• GST Appeals
• GST Revision
• GST Prosecution
• GST Compounding
The objective of this book is to sensitize both taxpayers and tax officers of their rights and obligations when:
• Investigations are undertaken;
• Records and documents are seized;
• Officials from companies are summoned, and
• Statements are recorded.
This book will be helpful for taxpayers, departmental officers, members of the bar & bench, professionals and the judiciary to appreciate the intricate points and issues arising out of implementation of the relevant provisions conferring wide powers on the officers.
The Present Publication is the Latest Edition, authored by Dr. Gokul Kishore & R. Subhashree & amended up to July 2021, with the following noteworthy features:
• [Commentary/Practical Guide] This book is intended to serve as a commentary and also a practical guide to all stakeholders on the provisions and issues emerging from various orders passed by High Courts on search, summons, arrest, bail, provisional attachment, demands, penalty and confiscation
• [Analysis of the Statutory Provisions featuring Landmark Cases & Recent Orders] GST is in force for only four years. Still, instances of the use of powers of search and seizure have been increasingly visible. This book analyses the provisions along with both the landmark cases on this subject as well as the recent orders under GST law.
• [Analysis includes the Previous & Current Regime of Indirect-taxes] While arrest and prosecution powers have been in the statute book under the pre-GST tax laws, the frequency of invocation of such powers in the GST regime is high. Various orders on bail, conditions for bail and validity of arrest passed by High Courts have been discussed to comprehend the scope, limitations and interpretation of the provisions
• [Threadbare Analysis with Established Jurisprudence & Principles Evolved over the Years] Proceedings for recovery of tax commences with demand notice or show cause notice followed by adjudication order, and the dispute is carried in an appeal if either party is aggrieved. The provisions under GST law on demands, adjudication, appeals, revision and recovery action have been subjected to threadbare analysis with the help of established jurisprudence and principles evolved over the years
Taxmann's GST Law & Practice is a unique/concise book on the GST Laws (i.e., Statutory Portion & Case Laws). Coverage of the book is as follows:
• Central Goods and Services Tax Act 2017 (CGST)
• Integrated Goods and Services Tax Act 2017 (SGST)
• Goods and Services Tax (Compensation to States) Act 2017
• Classification of Goods & Services
What sets it apart is the 'unique way of presenting' the compendium of 'updated, amended & annotated' text of the CGST & SGST Acts along with relevant Rules, Notifications, Forms, Circulars, Clarifications, and Case Laws. In other words, read the Section & get the following:
• Text of the relevant Rules & Notifications
• The gist of the relevant Circulars
• Date of enforcement of provisions
• Allied Laws referred to in the provision
• Gist of relevant Case Laws with an easy-to-understand summary
This book also includes Case Laws on the classification of goods & services under the GST regime in a separate division.
The Present Publication is the 2nd Edition, amended up to July 2021, authored by CA (Dr.) Arpit Haldia & CA Mohd. Salim, with the following noteworthy features:
• [Taxmann's series of Bestseller Books] on GST Laws
• [Follows the six-sigma approach] to achieve the benchmark of 'zero error.'
The detailed contents of the book are as follows:
• Central Goods & Services Tax Act 2017
◦ Arrangement of Sections
◦ Arrangement of Rules
◦ Text of the Central Goods & Services Tax Act, 2017
◦ Removal of Difficulties Order
◦ Text of Provisions of Allied Acts referred to in Central Goods & Services Tax Act, 2017
◦ Subject Index
• Integrated Goods & Services Tax Act 2017
◦ Arrangement of Sections
◦ Arrangement of Rules
◦ Text of the Integrated Goods & Services Tax Act, 2017
Subject Index
• Goods and Services Tax (Compensation to States) Act 2017
◦ Arrangement of Sections
◦ Text of the Goods and Services Tax (Compensation to States) Act, 2017
◦ Subject Index
• Classification of Goods & Services
◦ Classification of Goods
◦ Classifications of Services
This standard provides guidance on accounting for property, plant and equipment (PPE), which typically constitute a significant portion of total assets. It discusses capitalization of expenditures on PPE, depreciation, retirement and disposal of PPE. These have a material impact on balance sheet and profit and loss statement. The standard scopes in tangible items held for use in production/supply of goods/services, rental to others or for administrative purposes, which are expected to be used for more than one period.
GST Exports-Imports & Deemed Exports is a harmonious blend of the following laws:
• GST
• Customs
• Foreign Trade Policy
• Allied Laws
This book aims to consolidate & explain different provisions of the law and subsequent procedural changes such as Notifications, Circulars, Instructions and Trade Notices issued by CBIC and DGFT, along with relevant Advance Rulings with regards to Imports, Exports, Deemed Exports under different laws.
This book is intended to help the trade and industry dealing with exports, imports and deemed exports for compliance with the legal requirements and avail the benefits under various provisions of the Foreign Trade Policy, Customs and GST laws with better understanding and appreciation of the intricacies.
The Present Publication is the 2nd Edition, authored by Kaza Subrahmanyam & T.N.C. Rajagopalan, with the following coverage:
• [Conceptual Understanding of provisions of Imports and Exports] of Goods & Services
• [Meaning of Zero Rated Supply along with Refunds] for Physical Exports and Deemed Exports under GST
• [Treatment of supplies by and to EOU/SEZ unit or SEZ Developer/FTWZ] along with Special Exemptions/Concessions and procedural requirements
• [Foreign Trade Policy] under GST
Guide to Customs Valuation is a complete and comprehensive commentary on laws relating to valuation under Customs laws. It is a brief, concise and handy reference book, which provides the updated and simplified analysis of provisions to determine valuation under the Customs laws.
This book will be helpful for Customs Consultants, Advocates, Corporate Managers & Departmental Officers.
This book is divided into two parts:
• Valuation of Imported Goods
• Valuation of Export Goods
The Present Publication is the Latest Edition, authored by H.K. Maingi, amended up to July 2021, with the following noteworthy features:
• [Conceptual Understanding of Valuation] Conceptual understanding of provisions of Valuation under Section 14 of Customs Act and Customs Valuation (Determination of Value of Export Goods) Rules, 2007
• [Valuation] Valuation of Imported Goods & Exported Goods, Valuation in case of High Sea Sales & related persons, Valuation of capital goods on debonding, etc.
• [Various Additions in Transaction Value] Various additions in Transaction Value such as Brokerage, Service Charge, Transportation, etc.
• [Other Concepts] Concepts of related persons, under-invoicing and over-invoicing, Special Valuation Branch, etc.
This edition covers everything you need to understand about the provisions of Valuation under Customs in a subtle and simplified language.
The detailed coverage of the book is as follows:
• Introduction
• Valuation of Imported Goods
◦ Transaction Value
◦ Transaction Value to be Accepted in the Absence of Condition and Restriction under Rule 3(2)
◦ Contract Prices and Transaction Value
◦ High Sea Sales and Transaction Value
◦ Related Persons
◦ Transaction Value of Identical or Similar Goods and Contemporaneous Imports
◦ Deductive Value
◦ Computed Value
◦ Residual Method
◦ Reliance on Foreign Journals indicating International Prices for Determining Assessable Value
◦ Addition to Transaction Value Royalty, Licence and Technical Know-How Fees
◦ Other Addition to Transaction Value
◦ Declaration by the Importer
◦ Rejection of Declared Value
◦ Investigation by Special Valuation Branch
• Valuation of Export Goods
◦ Export Valuation
◦ Under-Invoicing and Over-Invoicing of Exports
◦ Customs Valuation (Determination of Value of Export Goods) Rules, 2007
◦ Inclusion/Exclusion Duty Element from Cum Duty Price
◦ Valuation of Goods Sold in DTA from EOU and Debonding of Capital Goods from EOU
Taxmann's MCQs and Integrated Case Studies on Corporate & Economic LawsTaxmann
MCQs & Integrated Case Studies on Corporate & Economic Laws are prepared exclusively for the Final Level of Chartered Accountancy Examination requirement. It covers the entire revised, new syllabus as per ICAI.
The Present Publication is the 6th Edition & Updated till 30th April 2021 for CA-Final | New Syllabus, with the following noteworthy features:
• Strictly as per the New Syllabus of ICAI
• [Knowledge Based & Application Based MCQs] as per the pattern applicable for the exams
• Includes the following types of MCQs in a Separate Section in Each Chapter:
◦ RTPs & MTPs
◦ Past Exam Questions
• [Most Updated & Amended] This book is updated & amended as per the following:
◦ Companies (Amendment) Act, 2020
◦ Companies (Appointment and Qualifications of Directors) 5th Amendment Rules, 2020
◦ Schedule V of the Companies Act, 2013
◦ Master Directions – External Commercial Borrowings (Updated as of 12th April 2021)
◦ Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2021
◦ Foreign Contribution (Regulation) Amendment Act, 2020
◦ Arbitration and Conciliation (Amendment) Act, 2021
◦ Insolvency and Bankruptcy (Amendment) Ordinance, 2021
Also Available:
• [7th Edition] of Taxmann’s Corporate & Economic Laws (New Syllabus)
• [7th Edition] of Taxmann’s CRACKER cum Exam Guide on Corporate & Economic Laws (New Syllabus)
• Taxmann’s Combo for Textbook + Cracker + MCQs & Integrated Case Studies + Class Notes
Contents of this book are as follows:
• Appointment and Qualifications of Directors
• Meeting of the Board and its Powers
• Appointment and Remuneration of Managerial Personnel
• Inspection, Inquiry and Investigation
• Compromises, Arrangements and Amalgamations
• Prevention of Oppression & Mismanagement
• Winding Up
• Companies Incorporated Outside India
• Miscellaneous Provisions
• Adjudication and Special Courts
• NCLT and NLCAT
• Corporate Secretarial Practice
• Securities Contracts (Regulation) Act, 1956 and SCR Rules, 1957 | Deleted from Syllabus
• Securities and Exchange Board of India Act, 1992 & SEBI (LODR) Regulations, 2015
• Foreign Exchange Management Act, 1999
• Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFESI Act, 2002) | Deleted from Syllabus
• Prevention of Money Laundering Act, 2002
• Foreign Contribution (Regulation) Act, 2010
• Arbitration and Conciliation Act, 1996
• Insolvency and Bankruptcy Code, 2016
• Integrated Case Studies
Taxmann’s CRACKER for Corporate & Economic Laws is prepared exclusively for the Final Level of Chartered Accountancy Examination requirement. It covers the entire revised, new syllabus as per ICAI.
The Present Publication is the 7th Edition & Updated till 30th April 2021 for CA-Final | New Syllabus, authored by Pankaj Garg, with the following noteworthy features:
• Strictly as per the New Syllabus of ICAI
• [600+ Questions and Case Studies] with complete answers
• Coverage of this book includes:
• All Past Exam Questions
▪ CA Final July 2021 (New Syllabus) – Suggested Answers
◦ Questions from RTPs and MTPs of ICAI
• [Chapter-wise] marks distribution for Past Exams
• [Most Updated & Amended] This book is updated & amended as per the following:
◦ Companies (Amendment) Act, 2020
◦ Companies (Appointment and Qualifications of Directors) fifth Amendment Rules, 2020
◦ Schedule V of the Companies Act, 2013
◦ Master Directions – External Commercial Borrowings (Updated as of 12th April 2021)
◦ Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2021
◦ Foreign Contribution (Regulation) Amendment Act, 2020
◦ Arbitration and Conciliation (Amendment) Act, 2021
◦ Insolvency and Bankruptcy (Amendment) Ordinance, 2021
Also Available:
• [7th Edition] of Taxmann’s Corporate & Economic Laws (New Syllabus)
• [6th Edition] of Taxmann’s MCQs & Integrated Case Studies on Corporate & Economic Laws (New Syllabus)
• Taxmann’s Combo for Textbook + Cracker + MCQs & Integrated Case Studies
Contents of this book are as follows:
• Appointment and Qualifications of Directors
• Meeting of the Board and its Powers
• Appointment and Remuneration of Managerial Personnel
• Inspection, Inquiry and Investigation
• Compromises, Arrangements and Amalgamations
• Prevention of Oppression & Mismanagement
• Winding Up
• Companies Incorporated Outside India
• Miscellaneous Provisions
• Adjudication and Special Courts
• National Company Law Tribunal and Appellate Tribunal
• Corporate Secretarial Practice – Drafting of Notices, Resolutions, Minutes & Reports
• Securities Contracts (Regulation) Act, 1956 and SCR Rules, 1957 (Deleted from syllabus)
• Securities and Exchange Board of India Act, 1992 & SEBI (LODR) Regulations, 2015
• Foreign Exchange Management Act, 1999
• Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFESI Act, 2002)
• Prevention of Money Laundering Act, 2002
• Foreign Contribution (Regulation) Act, 2010
• Arbitration and Conciliation Act, 1996
• Insolvency and Bankruptcy Code, 2016
FEMA & FDI Ready Reckoner provides complete and accurate information about all provisions of the Foreign Exchange Management Act, 1999 (FEMA). It also includes guidance on all practical issues faced by companies and FEMA professionals.
Key features of this book are as follows:
• Topic-wise commentary on FEMA
• Analysis of all provisions of FEMA with relevant Rules, Judicial Pronouncements, Circulars, Notifications and Master Directions issued by Reserve Bank of India
• Law Relating to the following
◦ Prevention of Money Laundering Act
◦ Foreign Contribution (Regulation) Act
◦ COFEPOSA
The Present Publication is the 15th Edition, and it is amended up to 30th June 2021. The coverage of this book is as follows:
• FEMA – Overview
• Authorised Person under FEMA
• Account in India by Person Resident out of India
• Accounts of Indian Residents in Foreign Currency
• Receipt and Payment in Foreign Exchange
• Realisation, Repatriation and Surrender of Foreign Exchange
• Money Changing Activities
• Money Transfer Service Scheme (MTSS)
• Possession and Retention of Foreign Currency
• Export and Import of Currency or Currency Notes
• Remittances on Current Account
• Liberalised Remittance Scheme (LRS)
• Export of Goods and Services
• Import of Goods and Services
• Project Exports and Service Exports
• Foreign Exchange Rates
• Overview of Capital Account Transactions
• Foreign Investment in India
• FDI in Indian Company
• Section Wise FDI Policy at a Glance
• FDI – Downstream Investment, i.e. Indirect Investment
• FDI through Rights, Bonus, Sweat Equity or Merger/Amalgamation
• FDI – Transfer of Securities
• FDI in LLP
• FDI in GDR/ADR
• Investment by NRI or OCI
• FDI in Startup Company
• Investment by Foreign Portfolio Investors
• FDI in Investment Vehicle
• FDI by FVCI
• FDI – Investment in Securities by Funds, Foreign Central Bank, etc.
• Investment by Indian Entity in JV/WOS Abroad
• Guarantees
• Insurance
• Borrowing and Lending in Foreign Currency
• Borrowing and Lending in Indian Rupees
• Foreign Investment in Debt Instruments
• External Commerical Borrowings
• Trade Credit (TC) and Structured Obligations
• Acquisitions and Transfer of Immovable Property in India
• Acquisition and Transfer of Immovable Property out of India
• Remittance of Assets
• Branch/LO/Project Office in India by Foreign Entities
• Indian Depository Receipts
• Risk Management and Inter-Bank Dealings
• VOSTRO Account of Non-Resident Exchange Houses
• Industrial Policy of Government of India
• Enforcement of FEMA
• Penalties under FEMA
• Appeals under FEMA
• Compounding of Contraventions under FEMA
• Prevention of Money Laundering Act
• Foreign Contribution (Regulation) Act (FCRA)
• COFEPOSA, 1974
This book provides a para-wise commentary on Companies (Auditor’s Report) Order. It is a complete guide on the applicability and the matters that need to be reported by an Auditor on CARO.
This book is divided into three divisions:
• CARO Reporting under CARO, 2020 (Applicable from Financial Year 2021-22)
• CARO Report on Consolidated Financial Statements under CARO, 2020
• CARO Reporting under CARO, 2016 (Applicable for Financial Year 2021-22)
This book will be helpful for Auditors
The Present Publication is the 8th Edition, amended up to 30th June 2021, authored by CA Srinivasan Anand G., with the following noteworthy features:
• [FAQs & Case Studies]
◦ CARO 2016
◦ CARO 2020
• [Amended Schedule II] Related disclosure requirements
• [Clause-wise Ready Reckoner] on CARO 2020
• Review of earlier versions of CARO to do a quick comparison(s)
• [In a Nushell] CARO 2020
• Relevant Provisions of Companies Act, 2013
Taxmann's Indian Accounting Standards (Ind AS)Taxmann
Indian Accounting Standards (Ind AS) contains the updated Indian Accounting Standards issued under the Companies (Indian Accounting Standard) Rules, 2021.
It provides a complete understanding of the definitions, entities liable to apply Ind AS, and exemptions.
The Present Publication is the 2nd Edition, authored by Taxmann’s Editorial Board, updated till 30th June 2021, with the following noteworthy features:
• [Text of Indian Accounting Standard (Ind AS)] notified under Companies (Indian Accounting Standard) Rules, 2021;
• [Guide for Definitions] in Indian Accounting Standards
• [Guide on Applicability] of Indian Accounting Standards
• [Guide on Obligations to Comply with] in Indian Accounting Standards
• [Guide on Exemptions/Relaxations] in Indian Accounting Standards
The contents of the book are as follows:
• Arrangement of Rules
◦ Short Title and Commencement
◦ Definitions
◦ Applicability of Accounting Standards
◦ Obligation to Comply with Indian Accounting Standards (Ind AS)
◦ Exemptions
• General Instructions
• Indian Accounting Standards (Ind AS)
Taxmann's Indian Competition Law is a section-wise commentary on Competition Law. What sets this book apart is the unique combination of the study of both substantive and procedural elements of Competition Law in India.
The objective of this book is three-fold:
• Focusing on Indian Competition Law, elucidating the Indian jurisprudence and then comparing it with positions taken by European Union (EU) and the United States
• This book does not get restricted to the major provisions/broader issues of competition law but also highlights economic, technical and administrative concepts/issues that are relevant in the practical application and interpretation of competition law
• This book does not become a technical treatise but a document that a wider audience can read and understand, including lawyers, judges, academicians, lawmakers, market regulators, & entrepreneurs.
The Present Publication is the Latest Edition, authored by Adv. Gautam Shahi & Dr. Sudhanshu Kumar, amended up to 30th May 2021, with the following noteworthy features:
• [Detailed Study on Fundamental Issues] including:
o Anti-Competitive Agreements
o Abuse of Dominant Position
o Combinations (Acquisitions and Mergers)
• [Evolution of Competition Jurisprudence] in India
• [Comparitive Assessment] of major issues in Indian competition law with vis-à-vis EU, UK, and the USA
• [Exhaustive Analysis] on Rules, Regulations, Guidance issued by CCI & Case Laws decided by the CCI, COMPAT (now NCLAT), High Courts, and the Supreme Court
• [Interaction of Competition Act with other Laws] such as:
o Administrative Law
o Intellectual Property Laws
o Telecom Laws
Tax Practice Manual is an exhaustive (2,100+ pages), amended (by the Finance Act, 2021) & practical guide (330+ case studies) for Tax Professionals.
This book will be helpful for the Chartered Accountants, Lawyers/Advocates, Tax Practitioners to assist them in their day-to-day tax works.
This book is divided into two parts:
• Law Relating to Tax Procedures (covering 25+ topics)
• Case Studies (covering 35+ topics)
The Present Publication is the 7th Edition, authored by Gabhawala & Gabhawala, as amended by the Finance Act 2021, with the following noteworthy features:
• Law Relating to Tax Procedures
◦ [Lucid Explanation, in a Practical Manner, with Checklists & necessary Tips] for the law relating to Tax Procedure
◦ [Exhaustive Coverage of Case Laws]
◦ [Fine Prints & Unwritten Lines] are explained in a lucid manner
• Tax Practice
◦ [Elaborated & Threadbare Analysis] of every aspect of Tax Practice
• Case Studies
◦ [330+ Case Studies] to deal with real-life animated situations/problems faced by tax practitioners
• Draft Replies
◦ For the Notices sent by the Department
◦ Petitions to the Department
• Drafting & Conveyancing
◦ [Complete Guide to Drafting of Deeds & Documents] covering
◦ Affidavits
◦ Wills
◦ Special Business Arrangements
◦ Family Arrangements
◦ Power of Attorney
◦ Lease, Rent & Leave and Licenses
◦ Indemnity and Guarantee
◦ Charitable Trust Deeds, etc.
The contents of this book are as follows:
• Law Relating to Tax Procedures
◦ Tax Practice
◦ Pre-assessment Procedures
◦ Assessment
◦ Appeals
◦ Interest, Fees, Penalty and Prosecution
◦ Refunds
◦ Settlement Commission – ITSC, Interim Board for Settlement
◦ Summons, Survey, Search
◦ TDS and TCS
◦ Recovery of Tax
◦ Special Procedures
◦ Approvals
◦ STT, DDT, Tax on Liquidation, Reduction and Buy Back, MAT, AMT and WT
RTI, Ombudsman
◦ Drafting of Deeds
◦ Agreement, MoU
◦ Gifts, Wills, Family Arrangements
◦ Power of Attorney, etc.
◦ Lease, Rent, License, etc.
◦ Sale/Transfer of Properties
◦ Tax Audit
◦ Income Computation & Disclosure Standards
◦ Real Estate (Regulation and Development) Act, 2016 (RERA)
◦ E-Proceedings under the Income Tax Act, 1961
◦ Prohibition of Benami Property Transactions Act, 1988
• Case Studies
◦ Tax Practice
◦ Pre-Assessment Procedures
◦ Assessment – Principles and Issues
◦ Rectification of Mistake
◦ Revision
◦ Appeals to CIT (Appeals)
◦ Appeals to – ITAT – High Court – Supreme Court
◦ Interest Payable by Assessee
◦ Penalties
◦ Prosecution
◦ Refunds
◦ Settlement of Cases
◦ Survey
◦ Search & Seizure
◦ Tax Deduction at Source
◦ Recovery of Tax
◦ Trust, Mutuality, Charity
◦ Firm
◦ LLP – Limited Liability Partnership
◦ Right to Information – RTI
◦ Agreement, MoU
◦ AOP – Association of Persons
◦ HUF – Hindu Undivided Family
◦ Gifts
◦ Wills
◦ Family Arrangements
◦ Power of Attorney
◦ Indemnity and Guarantee
◦ Lease, Rent, Leave and License
◦ Sale/Transfer of Properties
◦ Tax Audit
This document is the contents page and introduction for a book on Competition Law in India published by Taxmann Publications Pvt. Ltd. It provides an overview of the book's organization, outlines the various divisions covering the Competition Act of 2002 and associated rules and regulations, and includes standard copyright and disclaimer information for publications.
Taxmann's CLASS NOTES | Direct Tax Laws and International TaxationTaxmann
Taxmann’s CLASS NOTES for Direct Tax Laws & International Taxation is a one-stop solution to conquer the vast subject of Direct Taxation with ease. The objective behind this book is to minimize the need to consult multiple voluminous books while revising the day before the exam.
This book aims at providing all concepts in a simple language, with proper linking and a smart sequential approach. It also explains the provision of the law without resorting to paraphrasing of sections or legal jargons.
The Present Publication is the 2nd Edition (For New Syllabus) & Updated till 30th April 2021, authored by CA V. Rahul Agarwal, with the following noteworthy features:
• Strictly as per the New Syllabus of ICAI
• [Pictorial Presentation/Charts with Handwritten Fonts] are used in the book for easy understanding of theoretical concepts
• [Multi-Colour Coded Book] which follows the below structure:
◦ Blue – Heading
◦ Black – Main Content
◦ Red – Summarised version of the main content
◦ Green – Amendments applicable for the examination
◦ Yellow Highlights – Key adjustments to be highly cautious of; ‘The Accident-Prone Zones’
◦ Blue Boxes – Significant selected Case Laws provided by ICAI
◦ Green Boxes – Authors personal notes for better understanding and clarity
• [Amendments for November 2021 Examination] are provided at the end of the module
Also Available:
• [65th Edition] of Taxmann’s Direct Taxes Law & Practice with special reference to Tax Planning
• [2nd Edition] of Taxmann’s Direct Tax Laws & International Taxation (2 Vols.)
• [2nd Edition] of Taxmann’s CRACKER cum Compiler – Direct Tax Laws & International Taxation
Taxmann's Problems & Solutions for Direct Tax Laws & International TaxationTaxmann
Taxmann's PROBLEMS & SOLUTIONS for Direct Tax Laws & International Taxation is a compilation of questions & MCQs (prepared using handwritten fonts) from the educational materials, RTPs, MTPs and past examination papers of both old & new syllabus of ICAI (up to 30th April 2021). These are aligned with provisions applicable for Nov. 2021 Exams and are arranged Topic-wise & Chapter-wise with proper reference to the paper as well as attempt for convenience and trend analysis.
The Present Publication is the 2nd Edition (For New Syllabus) & Updated till 30th April 2021, authored by CA V. Rahul Agarwal, with the following noteworthy features:
• [Coverage of All Questions & MCQs] in handwritten fonts
◦ For Old/New Syllabus; issued up to 30th April 2021, from the following:
▹ Educational Material of ICAI
▹ RTPs & MTPs of ICAI
▹ Past Examination Papers of ICAI
◦ The above Questions & MCQs are aligned with applicable provisions for November 2021 examination
◦ Arranged 'Topic-wise' & 'Chapter-wise' with proper reference to paper as well as attempt for convenience and trend analysis
• [Ready Reckoner for the day before the exam] Special adjustments tested by ICAI have been summarised at the start of the book
Also Available:
• [65th Edition] of Taxmann's Direct Taxes Law & Practice with special reference to Tax Planning
• [2nd Edition] of Taxmann's Direct Tax Laws & International Taxation (2 Vols.)
• [2nd Edition] of Taxmann's CRACKER cum Compiler – Direct Tax Laws & International Taxation
The contents of the book are as follows:
• Summary of Special Adjustments
• Part A – Direct Taxation
◦ Basics of Income Tax
◦ Special Tax Regime
◦ Taxation of Agriculture Income
◦ Income from Salary
◦ Income from House Property
◦ Profits and Gains of Business or Profession
◦ Capital Gains
◦ Taxation of Business Re-Organisations
◦ Taxation of Distribution to Owners
◦ Income from Other Sources
◦ Taxation of Dividends & Income from Units
◦ Comprehensive Questions
◦ Assessment of Firms & LLP
◦ Assessment of AOP & BOI
◦ Assessment of Non-Profit Organization (NPO) & Exit Tax
◦ Assessment of Business Trust
◦ Assessment of Other Persons
◦ Taxation of Unexplained Income
◦ Clubbing of Income
◦ Set-Off and Carry Forward of Losses
◦ Exemptions & Sec. 10AA Deductions
◦ Chapter VI-A Deduction
◦ Minimum Alternate Tax [Section 115JB] & Alternate Minimum Tax [Section 115JC]
◦ TDS & TCS
◦ Payment of Taxes & Return Filing
◦ Assessment Procedure
◦ Appeals & Revisions
◦ Settlement Commission
◦ Tax Planning, Avoidance & Evasion
◦ Penalties, Offence & Prosecution
◦ Liability in Special Cases
◦ Statement of Financial Transactions (SFT) & Miscellaneous Provisions
• Part B – International Taxation
◦ Transfer Pricing & Related Provisions
◦ Residential Status & Scope of Total Income
◦ Non-Resident Taxation
• Part C – Suggested Answers (Amended as Applicable for A.Y. 2021-22)
Taxmann's 20 REVISED DUE DATES under Income-tax ActTaxmann
In view of the COVID-19 pandemic, the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TLA Act, 2020) has extended various due dates of compliances. The due dates so extended by the TLA Act, 2020 have been extended again on multiple occasions by the CBDT. The CBDT has again extended the due dates for certain compliances and has also announced to provide tax exemption for the expenditure incurred by the taxpayers on COVID-19 treatment. Further, the ex-gratia or any compensation received by the family members of any person who succumbed to COVID-19 will be exempt from tax. The impact of new notifications and circulars on various time barring dates and certain compliance of the Income-tax Act are discussed in the below paragraph.
Taxmann's MCQs and Integrated Case Studies on Advanced Auditing and Professio...Taxmann
1. ABC Ltd is a leading pharmaceutical company acquired by XYZ Ltd 5 years ago. XYZ Ltd holds 75% shares of ABC Ltd.
2. The governments of Punjab, Haryana and Rajasthan collectively hold 51.5% shares of XYZ Ltd.
3. The auditor of ABC Ltd, Mr. Shyam, resigned on 29th Oct 2020 due to medical reasons but failed to inform the authorities.
4. RMT & Co was appointed to fill the casual vacancy created by Mr. Shyam's resignation as statutory auditor of ABC Ltd.
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[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
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https://www.oeconsulting.com.sg/training-presentations
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3. Stock markets around the world have been the largest wealth creators in the last
century. International companies like Apple, Google, Microsoft, and Facebook
have generated hundreds of billions of dollars in wealth in recent decades. Even
in India, companies like Infosys, HDFC, and Kotak Mahindra Bank have created
numerous multimillionaires. A prime example of the Indian stock market’s
potential is Infosys. If you subscribed to 100 shares of Infosys at its 1993 IPO
price of ` 95 per share, you would own 102,400 shares of the company today. At
an average price of ` 700 per share, that investment would now be worth over
` 7 cr.
Despite these success stories, many in India remain sceptical about shares and
stock markets, sometimes out of ignorance but also as a result of ill-advised
approaches. This book is a humble attempt to highlight, to the ordinary investor,
the great potential of the stock market while guiding him to invest wisely and
avoid its pitfalls.
Some investors and traders routinely make millions and sometimes billions on
the stock market. Others routinely lose similar amounts. In common parlance,
one hears more stories of wealth created than of fortunes lost, but the truth
is that there are nearly equal numbers of winners and losers. Horror (failure)
stories are rarely discussed in public because, as the saying goes, “Success has
many fathers, failure is an orphan”.
Does the stock market create wealth or destroy it? The immediate answer, from
an average investor, is that the market is a dangerous place. News accounts
of stock market crashes, scams by fraudsters, the Satyam Computer episode,
market volatility, and the global financial crisis of 2008 have frightened investors
to such an extent that many sincerely believe that the stock market is unsuitable
for normal people. In India, negative publicity about the stock market created
so much panic even amongst educated and knowledgeable people that the
Employees Provident Fund (EPF) Trustees refused to invest so much as 5% of their
I-9
Preface
4. corpus in the market, despite the government encouraging them to do so for a
long time. (Luckily, on 6 August 2015, the EPF Trustees decided to test the market
by investing in ETFs issued by SBI Mutual Fund, up to an amount of 5% of the
incremental contribution coming to the fund.)
The negative sentiment is reflected in a common market-related joke.
Q. How do you make a small fortune in the stock market?
A. Start with a large one.
The joke’s underlying sarcasm reflects a common sentiment. There are investors
who tell their brokers not to reveal their visits to the broker’s office if their wives
call.
The number of investors in India, as revealed by depository figures, is about 40
million, equal to about 3% of the population. In other countries the percentage
of market participants is much larger—over 10% in many other developing
countries and over 20% in the developed economies. The incredibly low number
in India becomes even more telling when one considers that the country has
close to a billion mobile connections. The ordinary person is ignorant of, or
indifferent to, the stock market, yet captivated by unproductive assets such as
cell phones, gold, jewellery, and land. This pattern may help explain why India
remains underdeveloped despite having some of the best minds and most
entrepreneurial workers in the world.
What, then, are the facts? The truth is that the stock market has created real
wealth far in excess of any other form of organized investment. If you take the
investment return figures for the Indian investors’ preferred asset classes—
real estate, gold, and bank deposits—and compare them with stock market
returns, stocks outperform them all (See Annexure 1 for full information) by a
substantial margin. India’s best-known market index, the Sensex, has delivered a
compounded annual rate of return of around 16% for the 40 years since 1978–
1979 (when the index was constituted with a base of 100 points).
Yet the names most often associated with the Indian stock market are of
miscreants who took investors for a ride or manipulated the system to their
personal advantage—people like Harshad Mehta, who engineered the big
boom of 1990s, and Ketan Parekh, who piloted the market boom of 2001.
These operators manipulated the market in different ways, but in both cases
the market crashed when the scams were exposed. In both instances, investors
had entered in large numbers after seeing the market rocket upwards, but
many did not know the fundamentals or realities of investing in stock. When
the duplicitous activities were exposed, investors lost not only huge sums but
also faith. Not surprisingly, the public is less aware of successful investors and
PREFACE I-10
5. wealth creators such as Warren Buffett and Peter Lynch in the West and Rakesh
Jhunjhunwala and Basant Maheswari in India.
Most people are scared of investing in the market, but the reasons for this
are varied. Some are ignorant of how the market system operates; others
have invested rashly or thoughtlessly and lost money; still others do not heed
warnings from those around them. But in these days of high inflation and
shrinking investment opportunities, the risk is not to invest in the market but
to avoid it. The runaway increase in gold prices early in the decade withered,
although gold is showing signs of life again lately. Real estate prices have
stagnated for various reasons, including the fight against black money. This book
is a humble attempt to assist investors to understand how the market system
operates, how one should invest money in it, and how one can generate wealth
through it over the long term.
To be successful, stock market investment must be careful and disciplined.
Wealth in the market is created only over the medium to long term. Anyone
who wants quick money is likely to lose. Patience is key, but most investors and
traders lack it.
Planned and systematic investment, based on up-to-date information on market
and macro-economic developments, is likely to yield substantial returns over
time. A healthy and robust stock market plays a pivotal role in any country’s
economic development. In the following pages, you will read numerous
examples of huge multi bagger returns that investors earned by virtue of their
patience and understanding of market dynamics. The Indian Government also
supports stock market investors by offering substantial fiscal benefits, like partial
exemption from income tax on profits made on stock sales after one year of
investment. (See separate chapter on this.)
Obviously, you have an interest in the market, as you have taken the trouble
of picking up this book. Let me now take you on the exciting journey into stock
market investment. I will tell you how the markets have evolved, what their
present stage is, where they’re headed, and, of course, how you can benefit.
Fasten your seat belts and prepare for take-off.
Happy investing.
T.S. ANANTHARAMAN
November, 2020
I-11 PREFACE
6. Author’s Note
1. Stocksdiscussed in thebook areillustrativeand foracademicpurposes only.
They should not be taken as recommendations. Before initiating any action
on any stock/sector, kindly consult your financial advisor.
2. While care has been taken to update information to the extent possible up
untilJanuary2020,figureschangeeveryquarter.Beforeusinganyinformation
for analysis, please ensure you have the latest data from the right sources.
3. Comments on the performance of companies/sectors/individuals, etc.,
are given only to highlight certain viewpoints. The author has no intention
whatsoever of passing judgment on the involved parties or denigrating
them even indirectly.
4. Thestockmarketisadynamicfield.Viewsandopinionskeepchangingbased
onnewdevelopmentsbothinsideandoutsidethecountry.Keepthisinmind
when making any decisions.
5. The author has no gender preference. Wherever male names are used, one
mayapplyfemalenamesaswellandviceversa.Withcertainanecdotesfrom
the author’s own experience, fictitious names have been used to protect
the privacy of the individuals concerned.
6. It is possible that unintended mistakes have crept in while data was being
compiled and summarized. The author would appreciate suggestions for
improvement.
7. The author is an investor and a regular participant in the stock markets, and
consequently may have held, or may be currently holding, positions in some
of the stocks discussed in this book.
8. This book was completed before the COVID-19 pandemic hit the world. The
virus has affected the whole world, both developed and developing, in an
unprecedentedmanner,wreakinghavoconlivesandlivelihoods.TheIndian
stock markets crashed by 40% in the matter of few weeks during early 2020
(from 42,274 to 25639 in Sensex and from 12430 to 7511 in Nifty). Thanks
to concerted action by most central banks and governments and injection
of more than $10 trillion into the world financial system, markets have not
only recovered from the crash, but (at the time of going to the press) have
crossed the all-time highs in most of the countries, including India. This
proves the resilience of stock markets in the medium- to long-term and the
importance of keeping invested even during troubled times as detailed in
various chapters of the book.
PREFACE I-12
7. I-19
PART ONE
INVESTING WISDOM
1
WHY YOU SHOULD INVEST IN THE
INDIAN STOCK MARKETS
1.1 Introduction 3
2
EVOLUTION OF THE STOCK MARKET IN INDIA
2.1 Early days 6
2.2 Origin of sensex 7
2.3 Stages of development 7
2.4 Technology takeover 10
2.5 Tech boom and bust 10
2.6 Introduction of derivatives 10
2.7 Eclipse of regional SEs 11
PAGE
Foreword I-5
About the Author I-7
Preface I-9
Acknowledgements I-13
Chapter-heads I-15
Contents
8. 2.8 Markets today 11
2.9 Conclusion 12
3
MARKET AND INVESTOR BEHAVIOUR
3.1 Introduction 13
3.2 Lesson from history 13
3.3 Solution to the problem-stick to basics 16
3.4 Conclusion 17
4
RIGHT NUMBER OF STOCKS IN YOUR PORTFOLIO
4.1 Introduction 18
4.2 Market pundits’ portfolios 18
4.3 Basic parameters 19
4.4 Conclusion 20
5
INVEST IN WINNERS, DO NOT CHASE LOSERS
5.1 Introduction 21
5.2 Wrong booking of profits/losses 21
5.3 Avoid sentiments in investing 22
5.4 When to get out of a losing stock 22
5.5 Cost averaging 23
5.6 Avoid booking small profits 24
5.7 Conclusion 24
6
BUY IT, HOLD IT, FORGET IT STRATEGY
6.1 Introduction 25
6.2 The strategy 25
PAGE
CONTENTS I-20
9. 6.3 Relevance of the strategy today 28
6.4 Conclusion 30
7
LOW PE vs. HIGH PE WHICH ONE TO BUY?
7.1 Introduction 31
7.2 Low PE multiple is obvious choice 31
7.3 Why buy high PE share? 31
7.4 An example: Bajaj Auto, Hero Motocorp. and Tata Motors
vs. Eicher Motors 32
7.5 Relevance of PE multiple 33
7.6 Conclusion 33
8
SMALL vs. LARGE COMPANIES
8.1 Introduction 34
8.2 Market view of small vs. large companies 34
8.3 How to invest in small-cap companies 35
8.4 Case study: Multibagger returns in small cap 37
8.5 Conclusion: Ideal - A mixed portfolio 37
9
BENEFIT FROM BEATEN DOWN STOCKS
9.1 Introduction 38
9.2 Buy when there is blood on the street 38
9.3 Conclusion 40
10
IMPACT OF CURRENT EVENTS ON STOCK PRICE
10.1 Introduction 41
10.2 Market impact of news/events 41
PAGE
I-21 CONTENTS
10. PAGE
10.3 Impact of IPO performance 43
10.4 Conclusion 43
11
PRICING POWER
11.1 Introduction 44
11.2 Duopolies and oligopolies 44
11.3 Power of pricing 45
11.4 Economic moat 46
11.5 Measuring pricing power 46
11.6 Conclusion 47
12
LIFE EXPECTANCY OF COMPANIES
12.1 Introduction 48
12.2 Life expectancy of companies 48
12.3 Survival of sensex companies 49
12.4 Sustainability of companies 52
12.5 Conclusion 52
13
DIVIDEND DECISIONS
13.1 Introduction 53
13.2 What is dividend? 53
13.3 No-dividend policy 54
13.4 Why dividends? 54
13.5 Dividend income could be substantial 55
13.6 Steady and rising dividends 56
13.7 Domestic vs. MNC policies 56
13.8 Conclusion 57
CONTENTS I-22
11. PAGE
14
BONUS SHARES, SHARE SPLIT AND RIGHT SHARES
14.1 Introduction 58
14.2 Bonus shares 58
14.3 Impact of bonus issue 59
14.4 Income tax impact of bonus shares 60
14.5 Splitting of shares 60
14.6 Income tax impact of splitting of shares 61
14.7 Right shares 61
14.8 Conclusion 62
15
BUYBACK OF SHARES
15.1 Introduction 63
15.2 What is buyback of shares? 63
15.3 Why buyback shares? 64
15.4 Buyback vs. dividend 64
15.5 Conclusion 65
16
MUTUAL FUNDS AND THEIR RELEVANCE
16.1 Introduction 66
16.2 What is a mutual fund? 66
16.3 Types of mutual funds 67
16.4 Equity funds 68
16.5 Income funds 68
16.6 Balanced funds 69
16.7 Net Asset Value (NAV) 69
16.8 Systematic Investment Plans (SIPs) 69
16.9 Choosing a mutual fund 70
I-23 CONTENTS
12. PAGE
16.10 Why mutual funds? 70
16.11 Conclusion 73
17
VALUE INVESTING
17.1 Introduction 74
17.2 Essence of value investing 74
17.3 Why are stocks underpriced? 75
17.4 Basic principles of value investing 76
17.5 Conclusion 82
18
INVESTING IN GROWTH SHARES
18.1 Introduction 83
18.2 Essence of growth investing 83
18.3 Growth vs. Value - How different are they? 84
18.4 Identifying growth companies 84
18.5 What is the right price earning multiple? 85
18.6 Exiting growth companies 86
18.7 Conclusion 87
19
LESSONS IN WEALTH CREATION
FROM WARREN BUFFETT
19.1 Always remember the 2-part rule 88
19.2 Time is the essence of wealth creation 89
19.3 Do not watch the stock exchange tickers 89
19.4 Invest in businesses that you understand 90
19.5 Identify a good business at a fair price and invest in it for
long term 90
19.6 Use margin of safety 91
CONTENTS I-24
13. PAGE
19.7 Do not diversify your portfolio 91
19.8 Avoid herd mentality in investment 92
19.9 Summary 92
20
TRADING VS. INVESTMENT
20.1 Introduction 93
20.2 What is trading? 93
20.3 What is investing? 94
20.4 Issue of trading vs. investment 96
20.5 Conclusion 97
21
SENSIBLE INVESTMENTS - PRACTICAL POINTS
21.1 Introduction 98
21.2 Practical points for successful investment 98
21.3 Pitfalls to avoid 104
21.4 Useful tools for sensible investments 106
21.5 Conclusion 108
22
KEY TO MULTIBAGGER RETURNS
22.1 Introduction 109
22.2 Multibagger scrips in India 109
22.3 Preparing for multibagger companies 110
22.4 Researching and identifying a quality scrip with potential 111
22.5 Buying the scrip at the right price 113
22.6 Holding the scrip to its true potential 114
22.7 Booking profits at the right time 115
22.8 The puzzle of multibaggers 117
I-25 CONTENTS
14. PAGE
22.9 Multibaggers and you 118
22.10 Conclusion 119
PART TWO
BASICS OF STOCK ANALYSIS
23
BASICS OF FUNDAMENTAL ANALYSIS
23.1 Introduction 125
23.2 Industry/sector analysis 125
23.3 Company analysis 126
23.4 Accounting ratios 127
23.5 How to analyse a company? 130
23.6 Conclusion 132
24
BASICS OF TECHNICAL ANALYSIS
24.1 Introduction 133
24.2 What is technical analysis? 133
24.3 Graphs and trend analysis 134
24.4 Trend lines, support and resistance 136
24.5 Popular theories/tools of technical analysis 137
24.6 Conclusion 140
ANNEXURES
ANNEXURE 1 : COMPARATIVE RETURNS CHART 143
ANNEXURE 2 : INDIA TOPS 25 - YEAR RETURNS CHART 145
ANNEXURE 3 : WORLD STOCK EXCHANGE PERFORMANCE 146
ANNEXURE 4 : THE ROLLER COASTER JOURNEY OF THE SENSEX FROM
100 TO 41,000 147
ANNEXURE 5 : NSE NIFTY 50 149
CONTENTS I-26
15. PAGE
ANNEXURE 6 : AMAZING STORY OF RELIANCE INDUSTRIES - THE
FIRST INDIAN COMPANY TO ENTER ` 10 TRILLION
MARKET CAP CLUB 152
ANNEXURE 7 : AVENUE SUPERMARTS LTD. - THE COMPANY THAT
DEFIES GRAVITY 154
ANNEXURE 8 : AN ILLUSTRATION OF COMPOUNDING 156
ANNEXURE 9 : CONSISTENT COMPOUNDERS (MULTIBAGGERS) 157
ANNEXURE 10 : EMERGING MULTIBAGGERS 161
ANNEXURE 11 : THE IMPACT OF INCOME TAXES ON STOCKS 165
ANNEXURE 12 : ACCOUNTING FOR SHARE TRANSACTIONS 170
ANNEXURE 13 : REGULATION IN INDIAN FINANCIAL MARKETS 173
ADDITIONAL READING FOR INTERESTED READERS 176
BIBLIOGRAPHY 179
FINANCIAL TERMINOLOGY 181
I-27 CONTENTS
16. Sample Chapter
“The true investment objective of growth is not just to make gains but to avoid
loss.” – Attributed to Philip Fisher.
5.1 Introduction
Thefundamentalreasonforinvestinginstocksistocreatewealth.Itgoeswithout
saying that, to create wealth, one should invest in winners and not losers. But
of course, this is trickier than it sounds. The fact is that investors often choose
the wrong track, sometimes out of ignorance but more often because their
mindset is wrong. Even the most talented and studied investors do not buy the
right stocks all the time. Mistakes are not just possible but normal. The key is
to recognize the mistake, correct it promptly, and avoid repeating it.
5.2 Wrong booking of profits/losses
One very common mistake is booking profits in winners while keeping losers.
This results from the mindset that all investments should be profitable in the
end. Investorsof this mindsetcling to scripsthathavelostvalue,convinced that
the cost will be recovered if they only wait long enough. If, after a prolonged
wait, the scrip slowly creeps up in price and passes the level of the investor’s
original cost, they finally sell the scrip for a small profit, feeling satisfied that
they averted a loss. In reality, they are making one of two mistakes. If the scrip
was a poor choice, the investor should have sold it as soon he knew it, rather
than wait (forever) for the scrip to regain its original value. If the scrip is actually
a good value, it should be kept until it reaches its true potential, not sold for a
small profit. A good example of this lesson is the scrip Manappuram Finance.
Let us look at its price movement over a period of several years.
Invest in winners,
do not chase losers
5
C H A P T E R
21
17. During the middle of 2014, Manappuram Finance was quoting around ` 35 to
40. A few months later, the scrip fell into the range of ` 20 to 25, due to some
regulatory concerns and the fall in gold prices. The price remained below 30
for most of 2015, then started rising in early 2016, reaching the 35 to 40 range
in the second quarter. Investors who entered the scrip in the 35 to 40 range
during 2014 would have had to wait about two years to recover their cost. No
doubt, many of them sold in the second quarter of 2016, when the price finally
exceeded their cost. Let us now consider where mistakes were made.
When Manappuram Finance’s price collapsed during late 2014 and early 2015,
investors should have opted to “stop loss” and sold the scrip, as there were
serious concerns about the stock at that time. The investors who waited for
cost recovery and sold in Q 2 2016 earned no return even after waiting for 2
years. As it turns out, this too was a serious mistake: after crossing 35 to 40
range in Q 2, the scrip went on to cross ` 100 during Q 4 of 2016. Thus, the
investors who sold in Q 2 after finally recovering their cost achieved the worst
possible outcome.
The right approach would have been to sell in late 2014 or early 2015 as soon
as the mistake became apparent, or, having already waited through difficult
times, to persevere until the scrip reached its true potential.
5.3 Avoid sentiments in investing
There’snoroomforsentimentininvesting.Oneinvestsinsharestomakeprofits
and create wealth. Listed shares are generally highly liquid, so if a stock under-
performs, you can get out of it quickly—without incurring large exit charges.
In real estate or in gold jewellery—the two other common investments for
Indians—exiting can be difficult and typically involves expensive fees. In real
estate, for example, transfer costs of around 8%–15% of the cost of the asset
apply every time a transfer takes place. And finding a buyer for your property
may take time. In gold jewellery, the making charges are sometimes as high as
10%–20% of the cost of gold, and most of this sum is lost in every transfer. In
contrast, the cost of selling shares is nominal—typically a quarter to half per
cent at the maximum.
5.4 When to get out of a losing stock
If a share investment turns bad, get out of it quickly, but only after doing some
homework. If you picked up the scrip after conducting detailed research, go
Para 5.4 PART 1 : INVESTING WISDOM 22
18. back to your information and see where you went wrong. If your data still
seems dependable and if the scrip’s non-performance seems only temporary
or is attributable to an easily resolved problem or issue, then there’s no need
to sell right away. In fact, an industry leader that’s experiencing some modest,
temporary trouble could be an ideal candidate for purchase. For example, in
June2015,Nestle,themarketleaderinFMCGsegment,experienceda10%one-
day decline in its scrip after sales of its top brand, Maggi noodles, were banned
due to a product defect. Maggi is sold all over the world, so smart investors
should have intuited that the ban would be temporary and the product would
soon be back on the shelves. Sure enough, the ban was lifted after 5 months
and the product recaptured its market share in less than a year.
On the other hand, if you realize that your premise for buying was wrong or
that conditions in the market have changed (as, for example, due to unexpect-
ed government policies or an unexpected problem with the integrity of the
promoter), then don’t dawdle—sell the scrip. In these situations, booking loss
early is wiser than waiting for the price to recover.
Another mistake to avoid is to blindly mimic others, including experts. Picking a
SensexorNiftysharebasedon“expert”advicemaynotcauseyouseriousharm,
as a share included in a major index should satisfy basic standards. But if the
scrip is unknown, be extremely careful. A recent example of the risk is “Surana
Solar” scrip5
. On June 9, 2015, Exchange data showed that India’s best-known
investor, Rakesh Jhunjhunwala, had purchased 2.56 lakh shares of the scrip at
anaveragepriceof` 53.74.Thiswasbignews,asthecompany’sfinancialswere
poor; the stock hit the upper circuit. When news reports later clarified that
the purchase had been made by someone other than the well-known investor,
the scrip collapsed to the lower circuit, losing more than 40% in the next four
trading sessions. NSE and BSE were instructed by SEBI to withhold securities
and fund payouts, pending an investigation into the matter. Thus, anyone who
buysblindly,withoutverifyingthequalityorfundamentalsofthescrip,isatrisk.
5.5 Cost averaging
Cost averaging is a strategy that investors often adopt when the price of the
purchased scrip falls. For example: If you buy 100 shares of a company @ ` 50,
then buy another 100 shares after the scrip falls to ` 40 each, you would have a
total of 200 shares at an average cost of ` 45 (100 *50 + 100*40 = 9000/200 =
5. ChennaiBureau,“Jhunjhunwalaeffect:BourseswithholdpayoutsinSuranaSolartrades,”TheHinduBusiness
Line, Saturday, June 13, 2015.
23 CH. 5 : INVEST IN WINNERS, DO NOT CHASE LOSERS Para 5.5
19. 45 per share). Cost averaging can be done at a higher price also, which would,
naturally, result in a higher average cost than the original.
Cost averaging at lower prices is generally not recommended. A fall in price
normally means something is wrong with the scrip. Why buy more of it when
thingsarenotOK?Ontheotherhand,ifyouboughtascripafterproperresearch,
and if the fall in price is caused by something that can be set right soon or is
a one-time event, then a purchase may be in order. The key point here is that
one should not blindly follow a principle of buying when the price falls. Buying
is a serious decision in which all aspects of the case should be considered; it
should not be an impulsive response to a cheap price.
5.6 Avoid booking small profits
A practical problem for casual investors and traders is that they end up booking
small profits on good shares in order to hold onto other shares that have so far
incurred losses. Investors who do this are missing the big picture. Peter Lynch,
the legendary investment manager, notes that instead of rectifying mistakes,
investors do the opposite by “pulling out the flowers and watering the weeds”.
Lynch observes that “if you are lucky enough to have one golden egg in your
portfolio, it may not matter if you have a couple of rotten ones in there with it”.6
5.7 Conclusion
No one picks good shares all the time. Mistakes are inevitable, so don’t fret too
much over them. The mistake to avoid is to hold your worst picks while selling
your best ones. Warren Buffett remarks that “if you buy things you don’t need,
you will soon sell things you need”. If a person has a portfolio of 10 scrips, it
is normal to have couple of big losers, a couple of small losers, some small
winners, and a few big winners. The strategy to adopt is to get rid of the losers
(after examining their potential and being satisfied that their prospects are
bleak), cost average the future winners, and hold onto the big winners. Over
time, the profits from the big winners will be far higher than the losses you
booked from the fallen shares. The winning strategy is to cut your losses early
and run with the winners.
6. Lynch, Peter, and John Rothschild. One Up On Wall Street: How to Use What You Already Know to Make
Money in the Market (New York: Simon & Schuster, 2000).
Para 5.7 PART 1 : INVESTING WISDOM 24
20. STOCK
MARKET WISDOM
Author : T.S Anantharaman
Edition : 2020 Edition
ISBN No : 9788194924661
Rs. 725 USD 20
Date of Publication : December 2020
Weight (Kgs) : 0.245
No. of papers : 224
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Description
Taxmann’s Stock Market Wisdom highlights the great potential of the stock market
while guiding investors to invest wisely and how to avoid its pitfalls. It is an attempt
to assist investors to understand the following:
u How the market system operates?
u How one should invest money in it?
u How one can generate wealth through it over the long term.
The author has also explained how the markets have evolved, what their present
stage is, where they’re headed, and, of course, how you can benefit, with the help of
multiple case studies.
u Featuring the following case-studies:
n India’s Top 25 Years Return Chart
n World stock exchange performance
Reviewed by Motilal Oswal (Managing Director) | Motilal Oswal Financial Services Ltd.
“For any new investor who is starting his journey in stock markets, or even an old
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a fine book to start or restart the journey, as the case may be.”
“The basics of investing and trading have been explained in a very lucid and simple
manner and the complete spectrum of investing has been covered from history of
the stock markets, the working of the stock markets, the basic of fundamental analy-
sis, basics of technical analysis, concepts dividends, bonus, splits, buy backs, etc.”
“Most importantly, a large part of this book is about behaviour analysis and how it
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