Infinysolutions

From Harshad Mehta to Ketan Parekh and so many more in between, there have been a number of well-documented stock and share market scams over the years. Such frauds could utilize any or a combination of methods from below: Shell companies : Such entities use the names of established brands such as Apple or Reliance. They lure investors with the intention of defrauding them. Boiler rooms:  This is a high-pressure selling technique used to peddle speculative shares. Brokers often use this technique to push penny stocks which results in losses higher than the client can bear. Pump and dump:  In a world rife with fake news, misleading information helps pump up the price of certain stocks. When the stock hits a target price, they are then dumped for huge profits. Those who are left holding the stock suffer untold losses. Insider trading:  This is the criminal practice of using secret information to trade on the stock exchange for one’s personal profit. Even t...

Many a time it is observed that several shares in any company remain unclaimed or unpaid for a long period. The reasons could vary, however. Sometimes people are not aware of the shareholding, or they could have forgotten the shares, or even the shareholders have expired. Sometime before, the shareholding person has no clue about claiming such shares and in many cases, they would have been transferred to Investor Education and Protection Fund ( IEPF ). But before proceeding towards the process of claiming the unpaid or  unclaimed dividend and shares , we should know what IEPF is. About IEPF Considering the problems regarding the claiming of unclaimed and old shares, the Ministry of Corporate Affairs(MCA), Government of India, has introduced an authoritative body of Investor Education and Protection Fund ( IEPF ) under section 125 of Company Laws, 2013. This body has the responsibility of educating people about the refunds and administration of unclaimed dividends and helpi...

  With the rise of online trading and mobile technology, it’s easier than ever to set up an investment account online. If you have bought mutual funds or stocks in India, chances are that your investment has grown faster than you have had the time to claim your dividends and share certificates. You’re not alone – there are billions of rupees just sitting out there in investor accounts, just waiting to be claimed by their rightful owners! That’s where the process of claiming your  unclaimed dividends and shares  in India comes in, with government bodies like the Investor Education and Protection Fund of India taking care of this process on your behalf. Here’s everything you need to know about claiming your  unclaimed dividends  and shares in India. Know about IEPF IEPF is an autonomous body that was set up as a trust by the Indian government under the auspices of the Ministry of corporate affairs or SEBI. IEPF has been established for the protection of i...

As of February 2022, shares of Nestle India are floating in the market at a price of more than Rs 18,000 per share and the shares of HUL are floating at over Rs 2,000 per share. You may not be much of a trader, but what if you got to know that you actually happen to own some shares of these companies? This happens when the  recovery of shares  is overdue. Let’s learn more about what they are and how they could make you a fortune. Role of IEPF in the case of unclaimed shares The government of India created the Investor Education and Protection Fund (IEPF) to educate investors and safeguard them from losing control of their assets and stock. There are innumerable instances of investors failing to appoint a nominee for their shareholdings. This means that if the investor passes away, their investments are transferred to the government along with any  unclaimed dividend  money. These funds may then be used by the government as they deem fit unless the investor’s...

Stakeholders, including executives and sometimes employees, can own shares in a company. Sometimes, they receive shares as part of a reward program, while they purchase them other times. Shares hold more value than anything else since it gives a sense of ownership. Let’s say a company purchases 100 shares from the market. It has six shareholders. Five received 16 shares each, but the sixth person became eligible for 20 shares. So, considering the shares and divided policies 101, we can say that the shareholder with 20% ownership of the company has more rights than others. Shares are a type of asset that one can liquify, foreclose on, prematurely invest in, and perform several other functions. Once a person decides to leave the company or resigns from the shareholder post, they sell the shares under their name. If someone sells 20 shares, the equivalent number of shares will be added to the liquidity pool. It will not have any ownership, meaning another person can purchase it with ...

  In 1996 dematerialization was introduced in the Indian financial market and the Securities and Exchange Board of India (SEBI) mandated the companies to only share the dematerialized form to mitigate the risks associated with share trading in physical share certificates. India adopted the dematerialization System successfully. Ever since the introduction of dematerialization, the possession of physical share certificates has rapidly declined. What is Dematerialization? Dematerialization is the process of converting physical shares certificates of a company into electronic format. An investor who is interested to dematerialize his shares needs to open a dematerialization account with Depository Participant. The investor submits his physical shares and gets his physical shares into electronic shares in his Demat account. Storage of Dematerialised Shares – Depository The depository is the body that is responsible for storing and maintaining investors’ securities in dematerialized or...

India is currently going through an IPO boom. According to the latest Ernst & Young (EY) Global IPO report, the year 2021 was India’s strongest IPO year in terms of proceeds in the recent 20 years. As per the report, IPO activity in India climbed 156 percent year over year to 110 deals in 2021 (from 43 in 2020) and 314 percent in terms of proceeds to $16.94 billion (from $4.09 billion in 2020). All of this is good news for investors. However, things weren’t always so rosy in India. The IPO scenario in the 1980s and 1990s was vastly different from what we know and see today. Background of IPOs Hundreds of enterprises flooded the market with IPOs in the 1980s, with the majority of them being low-quality issues. The worst period was 1992-1996, when there were an incredible 3,911 equity IPOs. These were rife with frauds and scams since SEBI had only just been set up and did not have much control over the market. There were no rules and regulations or checks and balances which ...