Buying Delisted Shares – Emerging Investment Opportunity
A quick word on Unlisted vs Delisted Shares: Unlisted shares – shares which never got listed on an exchange in the first place. Still it is possible that an active secondary market exists in these shares. Example – Ratnakar Bank and Bombay Stock Exchange both of which are likely to get listed on a stock exchange […]
Executive Compensation: Best Practice Standards
The spectacular rise in executive compensation in recent years has not just drawn shareholder attention; it has drawn attention even from the common folk who often blame corporate greed and mismanagement for economic slowdowns. Executive Compensation Financial payment and non monetary benefits awarded to a firm’s executives including company presidents, chief executive officers (CEOs), chief financial officers (CFOs), vice presidents, directors, and other […]
Shareholder Activism in India
Shareholder Activism – What is? Any act of the shareholder(s) of a company which results in either influencing or changing the behavior and / or decision of the company, either through its management or otherwise. Issues on shareholder activism and corporate governance have been a point of debate in the United States and Europe for many years. […]
Marketing of Financial Services
Marketing of financial services and products is probably the most regulated field in India. Despite this, potential customers regularly get convinced about buying investment products which are inconsistent with their needs and future plans. In this article, I will discuss the problem of (i) Unsolicited marketing of financial services and products, and (ii) Regulations regarding […]
Surrogate Advertising – Why Diversification into Loss making Businesses is Good for Some Companies
Surrogate Advertising Where one product or service is marketed with the intention of promoting/ marketing a product or service different from the one being marketed. Often this is done because it is illegal to propagate or promote a particular product for example – cigarettes and alcoholic beverages in India. Often companies create a product with […]
Jobs in Finance | Career in Finance Industry
From time to time people write in to me looking to get associated in some way. Most of them are looking for jobs in the financial services space. This is unusual as I don’t have any academic background in finance. What I have is a very keen interest in this area. My background here. Nevertheless, we […]
SEBI Regulations for Investment Advisers and Research Analysts
Analysts or investment advisers are experts or at the least understand the markets a little more, given that they spend a lot of time reading and researching about stocks. People often rely on their advice, hoping that they have the most accurate information about the company/securities which they are covering. While this may or may […]
Financial research and analytics of Indian companies
What exactly should you be concerned about before diving into a business, either to buy or to operate as your own? What do you have to do to run a fund house? A brokerage firm? A small scale manufacturing unit? Or, a service oriented business? Equally important is to understand the laws, rules and regulations […]
A Checklist to Conduct Basic Due Diligence in India
Even before you begin to get interested in buying a business or asset, there is a series of checks which you should perform. Often, companies engage legal and consulting firms to conduct basic due diligence on target companies and their management. Not only is this extremely expensive but in most cases not needed at the […]
Loan Agreement – Reviewing Restrictive or Negative Covenants
Oftentimes companies do not pay attention to the loan agreement and sign it off as standard template of the bank. The banks in turn do their bit in convincing management, and particularly younger entrepreneurs that such is the case and that everybody signs the same document. Nothing could be further from truth. Remember: A bank’s […]