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Stock Markets Have Now Became the Casinos! All Thanks to 7 Days Weekly Options & Futures Contracts!!

Yeah, you heard it right, all thanks to the NSE (National Stock Exchange), after a circular issued in 2019 which made 7 days life expectancy of  shorter duration derivatives legal to be traded in exchanges. Well, for those who are not familiar with the term derivatives, these are a type of financial instruments or a product created out of an asset. In simple terms, you are not actually trading an "asset" but an "artificial asset" which derive its value from the original one. An example of this can be, suppose a boy named Hari wants a bike, but in order to do so he has to finance it and also bear the cost of its wear and tear while other costs like service and maintenance or running expenses like petrol too adds up to it. Instead buying a new one, he took a rental taxi whose rent was shared amongst four other people in order to lower down his transportation cost within a fixed or over a pre- determined time period.  Here, a rental taxi (a contract) is an artifi
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What Investors Should Expect in Case of Companies Shifting From China to India?

 Due to outbreak of COVID-19 around the world in addition to the trade wars between USA and China, US Department of State has officially directed to US companies placed inside China to shift their manufacturing bases & units towards other Asian countries. As soon as news started doing rounds in the media, Uttar Pradesh's government gave a formal statements about inviting companies leaving China to invest in the state . Even they have started to change their industrial & sectorial policies in lines with needs of those companies. In an statement by Uttar Pradesh's MSME minister Siddharth Nath Singh, on a webinar organised by US- Indo Strategic Partnership Forum said that " Indian government is working on a comprehensive plan for the companies leaving China to invest and establish their manufacturing units in India, we can provide them facilities like SEZs, land & capital subsidies, reduction in electricity bills, suitable infrastructure and assistan

5 Points Before Buying a House

Today having an own house is a need of every individual. Government too knows this and had taken various steps so that people can buy affordable houses. In pursuance to this, governments have been bringing many schemes for getting affordable houses for the weaker sections of society from time to time. One such current scheme is PMAY (Pradhan Mantri Awaas Yojna) which was initiated in 2015. Under this scheme, Central Government wants to provide affordable houses to 20 million people till 2022(For more inquiry and details visit the official website at  https://pmaymis.gov.in/  ) also to live up to that dream government had committed to provide financial assistance of Rs. 2 Trillions in direct and indirect form, which government will spent till 2021. Such houses are provided on a lease basis for a period of 20 years.  Well this article is for those who wants to have a house but not as a 'need' but more as an 'investment'. So, what should be the necessary cautions t

India's takeaway from Chinese Invasion on US Stock Exchanges

And when you have a lot of things going on in your mind, it becomes difficult to choose the right words for a start. That's what happening to me while currently dealing with this topic as it is matter of huge speculation . Never mind, the story dates back in the year 2009 when US had already suffered from recession and stocks exchanges cracked to the lowest of last 30 years only to meet this unfortunate change of events. Chinese learned a way to reap benefits out of capitalism. The pride of the west, the free markets of US and Europe (to some extent ) were now have fallen prey to Chinese investments. After recession investors were in dire need of a stable and developing economy to invest their fortune and that's when China looked for an opportunity at the cost of fortune. Many tier 3 investment bankers and advisors situated in US made contacts with the Chinese companies who wanted to float their shares in the US stock exchanges mainly in NYSE. Those banking and advisory fi

THE TANGO OF STOCK INSURANCE!

Well, we all know that insurance companies are good at one thing, i.e., to create confusions at the time of settlement of claims. But then too, the burden to stay safe from falling prey to these crocodiles falls upon us. At first glance, stock insurance seems to be a very simple deal but when the time of claims comes up, it becomes as rigid as it can be, depends from situation to situation.  Generally, insurance companies earns majorly from their premiums. Now, amount of such premium is decided upon various sorts of calculations with regards paid to the probability of claims normally arising out of certain type of sampling, say for example, a sample of 100/1000/10000 sellers at a time. This is done to maintain liquidity and working capital in the business so that insurance company should not be suffering any losses or runs out of liquidity. Now talking of stock insurance, it is done to cover losses arising out of goods which are generally destroyed in inventory (godown especial

Modi's DDT vs Pre - Modi DDT

 DDT (short for dividend distribution tax/ also known as CDT  or Corporate Dividend Tax) is levied upon companies when they pay dividends to their shareholders. Dividends are the income of shareholder as a share of profit but are also taxed before actually received by them  . This is done because it is difficult for the tax authorities to track all the shareholders of a company and then, tax them separately when the market is already volatile.  So, tax authorities came up with an alternate idea, i.e., to tax dividends before they are received by the shareholders and make it exempt in their hands. For this purpose, they introduced section 115-O and section 10(34) in Income Tax Act, 1961. Section 115-O deals with charging of DDT on dividends at the time of payment by the company to shareholders. While section 10(34) exempt such dividends in the hands of shareholders while computing their tax liability in assessment year. This creates ease in collection of taxes by the tax authoriti

How Increasing SDVs Across The States Can Help Indian Government to Increase Revenues

The concept of SDV (Stamp Duty Value) was introduced into the Indian Taxation in the Finance Act, 2002 with insertion of section 50C of Income Tax Act, 1961. Before this, the sale of land used to happen between the buyer and seller on the prices agreed by both the parties. Mostly such transaction were held in cash and via banking channel as well. Due to which the buyer makes payments in parts where he pays a minimal amount in form of bank transaction (Cheques, drafts, RTGS etc) on which the agreement was drafted, while making maximum payment as other part of transaction in cash being unaccounted. Hence, state government suffers a huge loss on stamp duty and central government was deprived of fair taxes. To curb this problem, SDV concept was brought where rates of land were fixed by the local authorities in a particular area and while computing the income from capital gains the SDV is used as a measuring rod. This was helpful in curbing the tax avoidance out of capital gains