Money Law and SOPs

 Should We Invest in Stock Market or Not: HOW DO WE DECIDE THE PRICE OF THE SHARE : TAKE AN COMPANY : WE STUDY :  1. DEMAND AND SUPPLY  OF THE COMPANY 2. BALANCE SHEET OF THE COMPANY 3. GROWTH OF THE COMPANY LETS UNDERSTAND THIS WITH AN EXAMPLE: DEMAND AND SUPPLY   A CIRCUS OWNER GOES FOR THE SEARCH OF MONKYES IN THE JUNGLE BUT DOES NOT FIND ANY, AFTER A LONG SEARCH, HE FINDS A VILLAGE WHERE THERE ARE MANY MONKEYS. SO THE CIRCUS OWNER ASK ONE OF THE PERSON SITTING BY IN THE VILLAGE FOR THE MONKEYS. AS THE MONKEYS WERE AVAILABLE IN ABUNDANT THEY HAD NO VALUE, THE PERSON SITTING BY THOUGHT FOR A WHILE AND SAID TO THE CIRCUS OWNER " SIR THIS MONEY COST RUPEES 500 EACH". THE CIRCUS OWNER PAYS FOR THE MONKEY AND TAKES AWAY SOME MONKEYS. AND SAID WOULD RETURN NEXT MONTH FOR SOME MORE.  AFTER SOME DAYS THE CIRCUS OWNER THE COMES TO THE SAME VILLAGE TO BUY SOME MORE MONKEYS. NOW THE VILLAGER TELLS THE CIRCUS OWNER THAT THERE IS SCARCITY OF MONKEYS AND NOW IT WOULD ...

  The Directorate of Enforcement (ED) : The Directorate of Enforcement, with its headquarters at New Delhi, is headed by the Director of Enforcement. There are five regional offices at Mumbai, Chennai, Chandigarh, Kolkata and Delhi headed by Special Directors of Enforcement. Zonal offices of the Directorate are at Ahmedabad, Bangalore, Chandigarh, Chennai, Kochi, Delhi, Panaji, Guwahati, Hyderabad, Jaipur, Jalandhar, Kolkata, Lucknow, Mumbai, Patna and Srinagar. These are headed by a Joint Director. The Directorate has sub-zonal offices at Bhubaneshwar, Kozhikode, Indore, Madurai, Nagpur, Allahabad, Raipur, Dehradun, Ranchi, Surat, Shimla, Vishakhapatnam and Jammu which are headed by a Deputy Director. The  Directorate of Enforcement  ( ED ) is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in  India. It is part of the Department of Revenue, Ministry of Finance and Government of India...

Corporate Guarantee: Everything You Need to Know A corporate guarantee is an agreement in which one party, called the guarantor, takes on the payments or responsibilities of a debt if the debtor defaults on the loan. What Is a Guarantee? A corporate guarantee is also written as a "guaranty" or "corporate guaranty." This guarantee benefits the debtor and the lender. For the lender, the loan is more secure since the guarantor assures that the money will be repaid. A debtor can become eligible for a loan that they wouldn't have otherwise qualified for, thanks to the assurance provided by the guarantor. Debtors with lower credit scores might need corporate guarantees to qualify for loans. Other names for a corporate guarantee include: Third-party guarantee Guaranty Guarantee Guaranteed loan Who Are the Parties in a Guarantee? In a corporate guarantee, the parties refer to the entities or individuals that are responsible to fulfill any obligations ou...

Who Should Invest in ELSS? ELSS offers an amazing opportunity to investors who want to reduce their tax liability along with high capital growth. If you’re looking for equity investment avenues that will deliver significant returns in the long run, you can opt for this fund. This scheme is suitable for investors with a long term investment horizon (preferably more than 3 years), as the fund has a minimum lock-in period of 3 years. Also, it has been observed that equity securities perform well in the long run, and this mandatory lock-in period ensures that the investors remain invested. As the underlying assets mostly comprise equity securities, which are quite volatile, it is important that the investor has a high risk appetite to invest in ELSS and a long term wealth creation goal. If you have already invested ₹1.5 lakh in various tax saving instruments under Section 80(C), it is advisable to opt for other equi...

How To Make The Most of Power of Compounding? As an investor, you can inculcate the following financial habits in your financial decisions to benefit from your mutual fund investment via the power of compounding: Start Investing Early The earlier you start investing, the better it is as it allows you to have a longer investment horizon. Longer the investment horizon, greater the probability of earning higher returns as investment risk gets reduced over longer time periods. So, in order to make the most of the power of compounding from your mutual fund investments, start investing as early as you can. If you have not started yet, start investing now! Be a Disciplined Investor Being a disciplined investor means investing regularly and monitoring it periodically. Investors should avoid ad hoc and abrupt investment decisions and follow a proactive and well thought out investment strategy. Be A Patient Investor Patience and investing go hand in hand. In order to earn go...

What are Small Cap Mutual Fund? Small-Cap Funds refer to those mutual funds which primarily invest in companies which have been ranked below 250 in terms of market capitalization. Small-Cap funds invest in equity and equity-related instruments of companies to take advantage of their high growth potential. These funds allocate at least 65% of their total assets in small-cap equity and the rest can be invested in any of the large, mid or small cap equity. Features of Small Cap Funds Investment Style:  These funds invest in smaller companies which include start-ups or small revenue generating companies which are in the early stage of development Risk Involved:  Small cap Funds are highly risky because such stocks have higher chances of getting affected by market recessions. They take a lot of time to recover from these effects of market fluctuations. Also, such funds offer less liquidity as compared to other fund types and require an intrinsic ...

What are Mid-Cap Mutual funds? What is the right time to invest in Mid-Cap companies? Understanding Mid- Cap Funds Companies listed on stock exchanges of India have been classified according to their ‘market capitalization’. Based on market caps, SEBI has categorized listed companies in three types: Large-Cap, Mid-Cap, and Small-Cap. Features 1. Mid cap equity funds are mutual funds that primarily invest in the shares of mid-cap companies. These companies fall between the 101st and 250th largest companies in terms of market capitalization, as per the rules laid by  SEBI . 2. Mid cap funds feature the perfect blend of risk and returns as they invest in the stocks of companies which hold a considerable amount of stability, along with being responsive to stock market changes. It must be noted that the size of an organization is an important factor while deciding which company to invest in. This is because the risks and opportunities in your ...