Under 1991 policy, only eight industries were reserved for public sector. This number was further brought down and current position is that only Atomic Energy and Railways are Government monopoly industries in the country. There have been proposals for allowing private control in atomic energy sector also...

District Mineral Foundations are statutory bodies in India established by the State Governments by notification. They derive their legal status from section 9B of Mines and Minerals (Development and Regulation) Act, 1957 as amended on 26 March 2015 as Mines and Minerals (Development and Regulation) Amendment Act,...

Derivatives are products whose value is derived from the value of one or more basic variables, which are called Underlying Assets. The underlying asset can be equity, index, foreign exchange (Forex), commodity or any other asset.  This means that any instrument that derives its value on its...

There are several types of debentures on the basis of security, performance, priority, convertibility and Records. On the basis of security Naked Debentures: These Debentures are not secured against any assets of the Company. In case of winding of the company, debentures holders holding unsecured debentures treated as...

A debenture is one of the capital market instruments which is used to raise medium or long term funds from public. A debenture is essentially a debt instrument that acknowledges a loan to the company and is executed under the common seal of the company. The debenture...

Factors that influence the price of a stock can be stock specific or market specific. The stock-specific factor is related to people’s expectations about the company, its future earnings capacity, financial health and management, level of technology and marketing skills. The market specific factor is influenced by...

When shares are allotted to an applicant, it becomes a contract between the shareholder & the company. The shareholder is bound to contribute to the capital and the premium if any of the company to the extent of the shares he has agreed to take as &...

The owners of equity shares have the voting rights in the annual general meetings of the company. Traditionally, voting right was like universal suffrage such as ownership of one share conferred one vote.  Voting rights of a person in a company were equal to shares owned.  However,...

A limited company may issue the shares on following different terms. Issue of Shares for Consideration other than cash or for cash or on capitalization of reserves. Issue of Shares at par i.e. at face value or at nominal value. Issue of Shares at Premium i.e. at...

Whenever shares are to be issued to the public, a company must issue a prospectus. The Prospectus contains relevant information like names of directors, terms of issue, etc. It also states the opening date of subscription list, amount payable on application, on allotment & the earliest closing...