SMALL INVESTORS FORUM

If the current proceedings at the Supreme court are an indication, all collective investment schemes being investigated by SEBI ‘may’ very well end up being proceeded against under the Insolvency and Bankruptcy Code, 2016 (IBC). The case before the Supreme Court pertains to two (Ponzi) schemes launched by the same promoters using the companies  Royal Twinkle Star Club Limited  and  Citrus Check In Limited . While these cases were under SEBI investigation after having traveled to the Supreme Court earlier, some of the investors in this scheme triggered the IBC in 2017. The Mumbai Bench of the NCLT declared moratorium against both companies. This case, however, has elements which have been tested and applied for the first time under IBC. Firstly, in the absence of any financial creditors, the huge base of 18 lakh investors was tagged as operational creditors. Regulation 16 of the  IBBI (CIRP) Regulations  which specified that in case of no financial credit...

Finding Multi-baggers the Basant Maheshwari Way Basant Maheshwari's advice to investors who want to make a debut in the stock market is to focus on zyaada, because only that can lead to wealth creation Most market gurus in India like to preach the virtues of patience and caution and urge investors to be happy with a 15% return from equities. But not this charismatic Kolkata-based investor who has made a living out of stock market investing and has a large fan following - Basant Maheshwari. Finding multi-baggers in the stock market is his passion and he makes no bones about it. 'Paisa jaldi banana hai ki zyaada?' Basant asked a packed audience of 300-350 investors at a seminar conducted by the Tamilnadu Investors Association at Chennai. His advice to investors who want to make a debut in the stock market is to focus on zyaada, because only that can lead to wealth creation. 'Most people start buying shares thinking they will make R2,000 or R5,000...

Trading psychology contributes about 60% to success and position sizing contributes another 30%. Furthermore, most traders ignore the first two areas and don’t really have a trading system. That’s why 90% of them fail. First, I would argue that trading psychology accounts for 100% of success. Why? This conclusion is based on two findings. First, people generally are programmed to do everything the wrong way. They have internal biases that seem to lead them to do the exact opposite of what is required for success. For example, if you are the most important factor in your trading whether u trade in Forex,commodity or Stocks, you should spend the most time working on yourself, but the majority of people totally ignore the “you” factor in their success. I now think that there are five components to trading well: 1. The trading process. The things you need to do on a day-to-day basis to be a good trader. 2. The wealth process. Exploring your relationship with money and why y...

Difference between Block and Bulk deals *BLOCK DEAL* # It is a transaction of a minimum quantity of 500,000 shares or a minimum value of Rs 5 crore between two parties, wherein they agree to buy or sell shares at an agreed price among themselves. # The deal takes place through a separate trading window and they happen at the beginning of trading hours for duration of 35 minutes i.e. from 9.15 am to 9.50 am. Every trade has to result in delivery . # Rules set by the SEBI state that the price of a share at the window should range within +1% to -1% of the current market price or the previous day's closing price. *BULK DEAL* # A  bulk deal is a trade where total quantity of shares bought or sold is more than 0.5% of the number of shares of a listed company. # Bulk deals happen during normal trading window provided by the broker. # The broker who manages the bulk deal trade has to provide the details of the transaction to the stock exchanges whenever they happen. ...

Following expenses we can’t consider as  input tax credit   under GST. S.No. Nature of Expenses Exceptions 1 Motor Vehicle Expenses A) Dealer of Motor Vehicle If Service provider ( S.P.) and service receiver (S.R.), both are belong to same line of business ( Dealing in motor vehicle) , in such a case S.R. can claim ITC. B) Passenger transportation / training of driver If this services is directly use in providing main service (output service liability), in such a case ITC can claim, in another case we cannot claim this expenses as input. C) GTA Services Tax Paid under RCM is allowed as input tax credit. D) Car Hiring Charges – 2 Food and beverage If SP and SR both are belong to same line of business, in such a case S.R. can claim ITC. 3 Outdoor catering If SP and SR both are belong to same line of business, in such a case S.R. can claim ITC. 4 Beauty Treatment Services If SP and SR both are belong to same line of business, in such a case S.R. can claim ITC. 5 Heal...

The term input is one of the important concepts, which is integrally connected to output. The existence of output cannot be realized without input. The input tax occupies an important place in any tax system. Input tax credit under erstwhile Cenvat provisions was backbone of the Cenvat Credit Rules. Similarly, the ITC scheme is the backbone of the GST regime; accordingly the said scheme has been incorporated under GST law. One of the main purposes of bringing GST is that it would remove cascading effect by facilitating seamless flow of credit of tax paid on receipt of goods and services used in furtherance of business of further supply at each stage of value addition. Definition of Input Tax under GST Law: Section 2 (62) of the CGST Act, 2017 has defined “input tax “ in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes— (a) the integrated goods and...