FLAME Newsletter - April 30, 2014


QUOTE OF THE WEEK:

“Have we seen a nation that exports wheat but gets chappati from outside. We export iron ore but steel is imported” - Narendra Modi, Chief Minister, Gujarat

YOUR FINANCE DEMYSTIFIED:

How to open a demat account?

To open a demat account, you have to approach a depository participant (DP), an agent of depository, and fill up an account opening form. The list of DPs is available in the websites of depositories: CDSL (Central Depository Services (India) Ltd and NSDL (National Securities Depository Ltd).

Along with the account opening form, you must enclose photocopies of some documents for proof of identity and proof of address. You will have to sign an agreement with DP in the depository prescribed standard format, which gives details of rights and duties of investor and DP. You are entitled to receive a copy of the agreement and schedule of charges for future reference. The DP will then open an account and give you the demat account number. This is also called beneficial owner identification number (BO ID). All your purchases / investments in securities will be credited to this account. If you sell your securities, your demat account will be debited... Read more

Company Warrant: A part of your investment portfolio?

Most of us are familiar with financial instruments such as stocks, derivatives, options, mutual funds, etc. Some of these products also form a major part of our investment portfolio. In case, if some of us are not aware of these financial instruments, there is ample information available in books, newspapers and on Internet on these products. But have you heard about the term ‘company warrant’? Can a warrant certificate issued by a company comprise a part of your investment portfolio? The obvious answer for most of us would be ‘Don't know’.

The below article not only provides information on what are company warrants, their types and characteristics but also what an investor must keep in mind before buying a company warrant... Read more

DID YOU KNOW?

How to calculate value of a right

A rights offering is when a company issues to its existing shareholders a right to buy additional shares in the company. The company offers its shareholder a specific number of shares at a special price. The company will also set a time limit for the shareholder to buy these shares. The shares are often offered at a discounted price to the existing shareholders... Read more

TERM OF THE WEEK

What is resident foreign currency account?

After having worked abroad as an NRI (non-resident Indian), you would surely have some foreign investments such as your bank account balance, investments in shares, mutual funds, etc. You would surely like to bring back your foreign currency from your overseas back account. After your return to India, you can open an RFC (resident foreign currency) account which can be used to credit your income from foreign sources. The below article discusses the salient features of RFC accounts for returning NRIs... Read more

IN THE NEWS THIS WEEK

RBI releases report of the GIRO Advisory Group

Two-stage verification needed for online banking: RBI

MFs lost 88 lakh investor accounts in past 5 yrs

SEBI settles only 36 cases through consent orders in FY14

In debt, short-term categories have returned more: CRISIL

ABOUT FLAME

FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.



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