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“Ye le beta, humare khaandani sone ke gehne. Ise girvi rakhva de, shayad kuch paise aa jaye ghar main.” How many times have we seen similar dialogues repeat itself in Bollywood films of the 70s and 80s—abject poverty and a frail-looking old mother pleading to her son to pawn the family’s heirloom gold ornaments to a jeweller, all to get a few bucks? Well, if you’d ask that son in 2024, he’d rather hit the loan button on his <keyword id="105386" type="General" weightage="20" keywordseo="Demat-account" source="Orion">Demat account</keyword> than pawn his mother’s gold jewellery. Given how Indians are rapidly resorting to taking loans against their investments in shares and mutual funds, these might as well be a cherished family heirloom in today’s time. Fair warning though; it's not as if gold and loans against it are going down in India’s lending scene. It's very much the opposite, shining brighter than ever! The secured loan category is having its time in the spotlight, and people are certainly looking beyond land and property to get their hands on some extra monies! But what is funding the steep rise behind these loans? And are they as failsafe and secure as they’re made out to be? We decode for you in this week’s Simply Put. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">The great Indian pawning party</h2>Pawning one’s gold has been, by far, the OG Indian financial move to get a loan. That continues well into 2024, and apparently, more so when India decides to wed and celebrate! Data from <keyword id="30067" type="General" weightage="20" keywordseo="RBI" source="Orion">RBI</keyword> suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024. It looks like Gold took the motto of rise and shine too seriously! Table 1: Growth in gold loans <table class="redcator-table-advance" style="border-width: initial; border-style: none; background-color: rgb(255, 255, 255); font-size: 16px; line-height: 1.6em; box-shadow: none; width: 468pt; font-family: Merriweather; table-layout: fixed; padding-bottom: 10px !important; background-image: inherit !important; background-position: inherit !important; background-size: inherit !important; background-repeat: inherit !important; background-attachment: inherit !important; background-origin: inherit !important; background-clip: inherit !important;"></colgroup><tbody><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">Year </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">Amount (In Rs crore) </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">September 2022 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">85,009 </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">March 2023 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">89,370 </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">September 2023 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">97,426 </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">March 2024 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">1,02,562 </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">September 2024 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">1,47,081 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: RBI data While the world continues to be riled up in multiple geopolitical crises in 2024, gold has been making merry of these tough times. Thus far this year, <keyword id="3886593" type="General" weightage="20" keywordseo="domestic-gold" source="Orion">domestic gold</keyword> prices have grown by 23%, outperforming benchmark indices like Nifty and Sensex by a mile, which have gone up by 9.85% and 8.86%, respectively. The growth in gold loan disbursal rates month on month this year could also put Nifty and Sensex’s growth to shame. In just September 2024, gold loans grew an astounding 51%, up from 40.9% in August, 30.5% in June, and just 14.8% in March. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">Hey, wait up for me, says LAS</h2>In lockstep with the elder, gold loan sibling, advances against shares and bonds have also been inching up since 2022. Data from RBI (Reserve Bank of India) notes that as of September 2022, the outstanding quantum of loans that were taken against shares (LAS) and bonds stood at Rs 7,397.94 crores. This inched up to Rs 7,764 crore in September 2023. Come 2024, and it looked like this was LAS’ time to shine. Loans swiftly skyrocketed, with outstanding loans in this category going up from Rs 8,492 crore in March 2022 to a staggering Rs 9,546 crore at the end of September 2024. Naturally, the smoke of LAS has its fire in the record inflows that Indians are pouring into the stock market and mutual funds month on month. Per AMFI (<keyword id="134904" type="General" weightage="20" keywordseo="Association-of-Mutual-Funds-in-India" source="Orion">Association of Mutual Funds in India</keyword>), the net AUM (assets under management) of India’s mutual fund industry grew to Rs 67,25,614.61 crores in October 2024, up from Rs 67,09,259.24 crores in September 2024. Even the number of retail mutual fund folios, which include equity, hybrid, and solution-oriented mutual funds, burgeoned to 17,23,52,296 in October, as compared to 16,81,61,366 in September. The same goes for stock investments in India, where the number of new demat accounts that are added every month just simply refuses to climb down. As of last month, total demat accounts in the country stood at 17.9 crore, which is more than the entire population of full-fledged nations like Japan (12.45 crore), Russia (14.38 crore), and Bangladesh (17.3 crore). In fact, since February this year, the monthly growth of LAS has been hitting double digits. From 11.3% in March to 21.6% in May to 26.8% in August, growth in LAS has been exceptional, hitting 22.9% in September this year. For context, monthly growth in the LAS segment was at a mere 5% in September 2023. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">What's driving the growth?</h2>It's a win-win for both the bank and the customer. Customers love them because LAS is available at a lower interest rate compared to unsecured personal loans. You can get a loan at an interest rate of anywhere between 9 and 12% by pledging your gold, MF units, or shares. Compare this to over 10-28% rates, which is the range where unsecured personal loans charge interest. Banks love <keyword id="827883" type="General" weightage="100" keywordseo="Secured-Loans" source="Orion">secured loans</keyword> since they are well-secured. In case you default on paying back, the bank can sell off your gold, shares, or mutual fund units to recover the amount. This takes a lot of stress off the banks, which are already dealing with secured loans’ riskier sibling-<keyword id="947940" type="General" weightage="20" keywordseo="unsecured-lending" source="Orion">unsecured lending</keyword>. High NPAs (non-performing assets) and non-payments in the unsecured borrowing space have already put RBI on red alert, which is why the apex bank is tightening the screws on unsecured lending, which was well on its way to becoming a ticking time bomb. As a result, credit growth has moderated to 12.8% YoY in October, as against the 19.3% rise recorded in the year-ago period. Yet it's not like the banks won't feel the heat. Analysts at Nomura note that <keyword id="23954457" type="General" weightage="20" keywordseo="personal-loan-delinquencies" source="Orion">personal loan delinquencies</keyword> in India that have been overdue by over 90 days rose to 5.1% in the last financial year, as opposed to just 3.9% in the year prior. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">How does it work?</h2>Both these loans work on a similar principle: Your <keyword id="857141" type="General" weightage="20" keywordseo="loan-amount" source="Orion">loan amount</keyword> is equal to a certain percentage of the actual market value of your asset. This is known as the LTV (loan-to-value ratio). In the case of gold and debt mutual funds, RBI mandates that this LTV be about 75-80%. So, for every Rs 100 of gold or debt mutual fund unit you pledge, your maximum loan amount cannot exceed Rs 80. If you pledge gold, which has a market value of Rs 10 lakh, you can take a loan of up to Rs 8,00,000. In the case of shares and mutual fund units, this limit is set at 50%. So, your shares worth Rs 5,00,000 can only get you a loan worth Rs 2,50,000. But the bright side? You can continue earning returns on your investments and pay interest only on the amount you use, since this loan works as an overdraft facility. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">Super safe, you say?</h2>Interest rates on both of these loans are very much dependent on the market value of the asset, which wildly fluctuates on a day-to-day basis. So, in case the value of your asset falls, you’ll have to keep a margin or more of the same asset in order to continue with the loan and maintain the LTV balance. Failure to do so could mean the bank can even sell off your asset. Says financial planner Nema Chaya Buch. “Yes, LAS offers easy availability of funds since these loans come with a lower interest rate as compared to personal loans. Also, you continue to earn average returns of 10–13% on your equity investments. But the downside is, in case of emergency, those pledged securities cannot be sold. Also, if the equity market goes down, then the bank may ask for additional collateral. Raghvendra Nath, MD, Ladderup Wealth Management notes that taking a LAS is best when the value of your securities has appreciated significantly. “This allows you to maximize the loan amount based on your collateral while also addressing financial needs without having to liquidate your investment portfolio. However, there are notable disadvantages to consider. The market risk is significant; a substantial decline in market value could lead to margin calls, which may incur fees and charges if there are delays or prepayments, ultimately increasing the effective cost of borrowing. Furthermore, failure to make timely payments could result in the loss of your assets.”. Umesh Mohanan, ED &amp; CEO, of Indel Money, cautions that one should have a sufficient quantity of gold to get the loan amount one wants. "According to the current RBI rules, the loan applicant/borrower can draw up to 75% of the total market value of the collateral/gold jewellery. So, always carry a sufficient quantity of gold based on one’s loan requirement. “The most important thing is that the valuation of the gold depends on the purity of the gold. If the borrower pledges gold with higher purity, such as 24 carats or 22 carats, he will get the maximum loan amount," he adds.

Secured Loans 2.0 — why more and more Indians are turning to gold, shares and mutual funds to get loans

<div type="image" title="Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024." msid="115250619" hostid="261" sizebytes="118350" caption="&amp;lt;p&amp;gt;Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024.&amp;lt;/p&amp;gt;"></div> “Ye le beta, humare khaandani sone ke gehne. Ise girvi rakhva de, shayad kuch paise aa jaye ghar main.” How many times have we seen similar dialogues repeat itself in Bollywood films of the 70s and 80s—abject poverty and a frail-looking old mother pleading to her son to pawn the family’s heirloom <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> ornaments to a jeweller, all to get a few bucks? Well, if you’d ask that son in 2024, he’d rather hit the loan button on his <keyword id="19977340" type="General" weightage="20" keywordseo="demat" source="keywords">Demat</keyword> account than pawn his mother’s gold jewellery. Given how Indians are rapidly resorting to taking loans against their investments in shares and mutual funds, these might as well be a cherished family heirloom in today’s time. Fair warning though; it's not as if gold and loans against it are going down in India’s lending scene. It's very much the opposite, shining brighter than ever! The secured loan category is having its time in the spotlight, and people are certainly looking beyond land and property to get their hands on some extra monies! But what is funding the steep rise behind these loans? And are they as failsafe and secure as they’re made out to be? We decode for you in this week’s Simply Put. <h2>The great Indian pawning party</h2>Pawning one’s gold has been, by far, the OG Indian financial move to get a loan. That continues well into 2024, and apparently, more so when India decides to wed and celebrate! Data from <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024. It looks like Gold took the motto of rise and shine too seriously! Table 1: Growth in gold loans <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount (In Rs crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85,009 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">89,370 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">97,426 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,02,562 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,47,081 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: RBI data While the world continues to be riled up in multiple geopolitical crises in 2024, gold has been making merry of these tough times. Thus far this year, domestic gold prices have grown by 23%, outperforming benchmark indices like Nifty and Sensex by a mile, which have gone up by 9.85% and 8.86%, respectively. The growth in gold loan disbursal rates month on month this year could also put Nifty and Sensex’s growth to shame. In just September 2024, gold loans grew an astounding 51%, up from 40.9% in August, 30.5% in June, and just 14.8% in March. <h2>Hey, wait up for me, says <keyword id="23953567" type="General" weightage="20" keywordseo="las" source="keywords">LAS</keyword></h2>In lockstep with the elder, gold loan sibling, advances against shares and bonds have also been inching up since 2022. Data from RBI (Reserve Bank of India) notes that as of September 2022, the outstanding quantum of loans that were taken against shares (LAS) and bonds stood at Rs 7,397.94 crores. This inched up to Rs 7,764 crore in September 2023. Come 2024, and it looked like this was LAS’ time to shine. Loans swiftly skyrocketed, with outstanding loans in this category going up from Rs 8,492 crore in March 2022 to a staggering Rs 9,546 crore at the end of September 2024. Naturally, the smoke of LAS has its fire in the record inflows that Indians are pouring into the stock market and mutual funds month on month. Per AMFI (<keyword id="20090034" type="General" weightage="20" keywordseo="association-of-mutual-funds" source="keywords">Association of Mutual Funds</keyword> in India), the net AUM (assets under management) of India’s mutual fund industry grew to Rs 67,25,614.61 crores in October 2024, up from Rs 67,09,259.24 crores in September 2024. Even the number of retail mutual fund folios, which include equity, hybrid, and solution-oriented mutual funds, burgeoned to 17,23,52,296 in October, as compared to 16,81,61,366 in September. The same goes for stock investments in India, where the number of new demat accounts that are added every month just simply refuses to climb down. As of last month, total demat accounts in the country stood at 17.9 crore, which is more than the entire population of full-fledged nations like Japan (12.45 crore), Russia (14.38 crore), and Bangladesh (17.3 crore). In fact, since February this year, the monthly growth of LAS has been hitting double digits. From 11.3% in March to 21.6% in May to 26.8% in August, growth in LAS has been exceptional, hitting 22.9% in September this year. For context, monthly growth in the LAS segment was at a mere 5% in September 2023. <h2>What's driving the growth?</h2>It's a win-win for both the bank and the customer. Customers love them because LAS is available at a lower interest rate compared to unsecured personal loans. You can get a loan at an interest rate of anywhere between 9 and 12% by pledging your gold, MF units, or shares. Compare this to over 10-28% rates, which is the range where unsecured personal loans charge interest. Banks love <keyword id="827883" type="General" weightage="100" keywordseo="secured-loans" source="Orion">secured loans</keyword> since they are well-secured. In case you default on paying back, the bank can sell off your gold, shares, or mutual fund units to recover the amount. This takes a lot of stress off the banks, which are already dealing with secured loans’ riskier sibling-unsecured lending. High NPAs (non-performing assets) and non-payments in the unsecured borrowing space have already put RBI on red alert, which is why the apex bank is tightening the screws on unsecured lending, which was well on its way to becoming a ticking time bomb. As a result, credit growth has moderated to 12.8% YoY in October, as against the 19.3% rise recorded in the year-ago period. Yet it's not like the banks won't feel the heat. Analysts at Nomura note that personal loan delinquencies in India that have been overdue by over 90 days rose to 5.1% in the last financial year, as opposed to just 3.9% in the year prior. <h2>How does it work?</h2>Both these loans work on a similar principle: Your loan amount is equal to a certain percentage of the actual market value of your asset. This is known as the <keyword id="20051485" type="General" weightage="20" keywordseo="ltv" source="keywords">LTV</keyword> (loan-to-value ratio). In the case of gold and debt mutual funds, RBI mandates that this LTV be about 75-80%. So, for every Rs 100 of gold or debt mutual fund unit you pledge, your maximum loan amount cannot exceed Rs 80. If you pledge gold, which has a market value of Rs 10 lakh, you can take a loan of up to Rs 8,00,000. In the case of shares and mutual fund units, this limit is set at 50%. So, your shares worth Rs 5,00,000 can only get you a loan worth Rs 2,50,000. But the bright side? You can continue earning returns on your investments and pay interest only on the amount you use, since this loan works as an overdraft facility. <h2>Super safe, you say?</h2>Interest rates on both of these loans are very much dependent on the market value of the asset, which wildly fluctuates on a day-to-day basis. So, in case the value of your asset falls, you’ll have to keep a margin or more of the same asset in order to continue with the loan and maintain the LTV balance. Failure to do so could mean the bank can even sell off your asset. Says financial planner Nema Chaya Buch. “Yes, LAS offers easy availability of funds since these loans come with a lower interest rate as compared to personal loans. Also, you continue to earn average returns of 10–13% on your equity investments. But the downside is, in case of emergency, those pledged securities cannot be sold. Also, if the equity market goes down, then the bank may ask for additional collateral. Raghvendra Nath, MD, Ladderup Wealth Management notes that taking a LAS is best when the value of your securities has appreciated significantly. “This allows you to maximize the loan amount based on your collateral while also addressing financial needs without having to liquidate your investment portfolio. However, there are notable disadvantages to consider. The market risk is significant; a substantial decline in market value could lead to margin calls, which may incur fees and charges if there are delays or prepayments, ultimately increasing the effective cost of borrowing. Furthermore, failure to make timely payments could result in the loss of your assets.”. Umesh Mohanan, ED &amp; CEO, of Indel Money, cautions that one should have a sufficient quantity of gold to get the loan amount one wants. "According to the current RBI rules, the loan applicant/borrower can draw up to 75% of the total market value of the collateral/gold jewellery. So, always carry a sufficient quantity of gold based on one’s loan requirement. “The most important thing is that the valuation of the gold depends on the purity of the gold. If the borrower pledges gold with higher purity, such as 24 carats or 22 carats, he will get the maximum loan amount," he adds.

Simply Put: Secured Loans 2.0 — why more and more Indians are turning to gold, shares and mutual funds to get loans

The entire country celebrating Raksha Bandhan today. But are you one of those elder siblings still mulling and stuck over the perfect gift to give your younger ones? Well, then it is time for you to move beyond your traditional gift ideas like sweets, gadgets, clothes, and jewelry, and invest in their future prosperity. How? By gifting them <keyword id="19905382" type="General" weightage="20" keywordseo="stocks" source="keywords">stocks</keyword>, or even mutual fund units. Here's a deep dive into how you can lay the foundations of a lasting bond with your siblings, and cement their financial future, one stock and one mutual fund unit at a time. <h2>How can I gift shares ?</h2>You can swiftly transfer shares online, provided both you and your siblings have a <keyword id="19977340" type="General" weightage="20" keywordseo="demat" source="keywords">demat</keyword> account. Many brokerage firms like Zerodha, Groww and others also offer this facility. For this, you will need to input details like your sibling's name (who you wish should receive these shares), particulars of their demat account, the amount of shares you wish to give as gift, and the name and 12-digit ISIN number of the company whose stocks you want to transfer. In addition, you will also have to provide the beneficiary owner ID of your siblings, reason for transferring these shares, and bank account details. In order to kickstart the process, you'll have to initiate what is known as an off-market settlement. This means without the stock exchange coming into the picture, two parties i.e. you and your sibling will mutually settle shares. For this, you will have to submit a delivery instruction slip (DIS) to your DP, or depository participant, which serves as a bridge between you and the depository. When you are transferring shares, you are essentially transferring your ownership of such stocks to them, and thus, you need to inform your DP and depository of the same. At present, there are only 2 depositories present in the country, namely NSDL and CDSL. You can submit this DIS both online and offline. If you have more than one siblings you wish to transfer shares to, remember to use separate DIS for each recipient's account. Once you initiate the transfer, your broker will send an email and SMS to the recipient, who will have 7 days to accept this. But remember, once you've transferred these shares, there is no provision to revoke this transfer. And just like with your clothes, accessories and everything else in life, your siblings will have full freedom and ownership to do whatever they deem fit with these shares! However, what you can certainly do, and make this gift more meaningful, is drive home the value of holding these securities for the long term, so that they are able to make the most of this investments. Ideally, a good start would be to start investing in stocks of large-cap, blue-chip companies, and them eventually complement them with small and midcap stocks, which offer higher legroom for growth. Per brokerage firm Master Capital Services Ltd, "consider choosing stocks from well-established companies with a solid track record and growth potential. It is essential to consider risk tolerance, investment horizon, and financial goals before selecting stocks for your brothers and sisters. The finest present you could give your siblings this year would be long-lasting financial stability". If you're looking for some stock recommendations you can consider for your siblings, we have you covered as well: <h4>Larsen &amp; Toubro Ltd. </h4>Why you should consider this? The company has shown consistent revenue growth and profitability in the past years while maintaining stability with its ROCE &amp; ROE of around 19% and 15%. L&amp;T has a significant global presence, with projects and operations in various international markets. This geographic diversification helps in tapping into global opportunities and reduces dependence on the domestic market. <h4>HCL Technologies Ltd. </h4>Why you should consider this? HCL Technologies is one of the IT giants of India, which is ranked amongst the top five Indian IT services companies in terms of revenues. HCL offers a wide array of IT, business services, engineering, R&amp;D services, and software products with operations in 60 countries. The company has been investing heavily in digital technologies, including cloud computing, artificial intelligence (AI), and automation. This focus aligns with current industry trends and positions the company to capture growth in the high-demand areas. <h4>TATA Motors Ltd.</h4>Tata Motors Limited is a leading manufacturer of automobiles and one of the largest OEM in India offering a wide range of passenger and commercial vehicles. Tata motors owns the flagship brand of Jaguar and Land Rover (JLR) which is a dominant automobile player in the global market. Its early entry in the electric vehicle segment has positioned it well ahead of many competitors and currently, it enjoys the largest market share in the EV segment in India. The focus on innovation and sustainability, along with a robust product lineup, positions Tata Motors well for future growth and market opportunities. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">Tax Implications of gifting shares</h2>The best part about gifting shares is that it is tax-exempt, since you're giving it to your relative. This means your sibling will not be liable to pay any taxes on this gift. However, to be on the safer side, make sure that the market value of the shares that you gift them does not exceed Rs 50,000, or else your siblings, i.e. the recipient will have to incur a tax liability. If your siblings decide to sell these gifted shares, they will have to pay LTCG (long-term capital gains) tax at the rate of 12.5%, or STCG (short-term capital gains) tax at the rate of 20%, depending on how long they hold these securities for. <h2>Gifting mutual fund units? </h2>Unfortunately, you cant transfer your mutual fund units to your siblings. The transfer of mutual fund units is only possible in case the unitholder passes away. But the one thing you can certainly do is start an SIP, or systematic investment plan (SIP) in their name. With as much as Rs 5,000 per month, invested over a period of 10 years, you 'll have invested Rs 6,00,000 for you siblings, which would have earned returns worth Rs 5,61,695, taking their total corpus to Rs 11,61,695. You can even start an SIP with just Rs 500/month in their name. You can nudge them into continuing this, so that you instill the value of financial discipline and long-term investing in them. Remember, at the end of the day, the true value of your gift lies not just in its monetary worth, but in the knowledge, responsibility, and financial acumen that you will pass on to your siblings. So, this <keyword id="22639140" type="General" weightage="100" keywordseo="Rakshabandhan" source="keywords">Rakshabandhan</keyword>, consider tying not just a rakhi, but also a knot of financial empowerment.

Move over regular gifts! Gift your sister stocks, MF units this Rakhi

<ul><li>In some cases, companies are unable to send dividends due to incorrect mailing addresses, lost cheques, or failure on the part of shareholders to encash the dividend cheques. </li><li>Shareholders may not get the credit of dividends to their bank accounts due to change in their bank account details or accounts becoming dormant. </li><li>Unclaimed shares can occur if a shareholder forgets about investments, passes away without leaving instructions to heirs, or fails to update their contact information. </li><li>Read more to find out how you can recover your investments from the IEPF. </li></ul> Investing money in various financial instruments such as stocks, bonds, mutual funds, and other securities can help generate substantial returns over time, along with the potential to receive passive income through dividends. Investors get much calculative while investing because at a point of time they will be expecting a handsome return from their investments. However, in some cases, the dividends accruing on these investments remain unpaid because of various reasons, such as when a company declares a dividend but is unable to send it to the shareholders due to incorrect mailing addresses, lost cheques, or failure on the part of shareholders to encash the dividend cheques. In some cases, shareholders may not get the credit of dividends to their bank accounts in the first place because of change in their bank account details or the accounts becoming dormant. Unclaimed shares can occur if a shareholder forgets about their investments, passes away without leaving clear instructions for their heirs, or fails to update their contact information with the company because of which they don’t get the dividends. In some cases, the shareholder may not even be aware that they own shares in a particular company due to various corporate actions. In both cases, the company is required to hold the unclaimed dividends and shares in trust for the shareholder. These unclaimed dividends are then transferred to the <keyword id="161459" type="General" weightage="50" keywordseo="investor-education-and-protection-fund" source="Orion">Investor Education and Protection Fund</keyword> (IEPF) account, which is managed by the <keyword id="6376435" type="General" weightage="50" keywordseo="ministry-of-corporate-affairs" source="Orion">Ministry of Corporate Affairs</keyword>. The <keyword id="2980446" type="General" weightage="50" keywordseo="iepf-authority" source="Orion">IEPF Authority</keyword> was established by the government under the Companies Act 2013 with the aim of promoting investor education and awareness, as well as protecting the interests of investors. Its significance can be highlighted by the fact that by the end of the Financial Year 2022, it is safeguarding unclaimed dividends of listed companies to the tune of a staggering ₹5,685 crore and a staggering 117 crore of unclaimed shares have been transferred to the IEPF Authority. As per Section 125 (2) (c) and Rule 7 (1) of the Investor Education and <keyword id="17056549" type="General" weightage="50" keywordseo="protection-fund-authority" source="Orion">Protection Fund Authority</keyword> of the Companies Act 2013, companies should transfer the amount of the unpaid dividends to the IEPF Authority’s account. According to the IEPF rules, shareholders can claim amounts by submitting the IEPF-5 Form for unclaimed dividends, matured debentures, matured deposits, and shares, refundable application fees, interest on fractional share sale proceeds, preference share redemption proceeds, etc., that are unclaimed for a minimum time period of seven years. Also, the IEPF maintains a database of unclaimed dividends and shares, and investors can claim their such dividends and shares by following the prescribed process. The objective of the IEPF is to ensure that the unclaimed dividend amount is returned to the rightful owners and that their interests are protected. During the recent Union Budget 2023 announcement, the Finance Minister emphasized the need for an efficient and streamlined process for investors to reclaim their unclaimed shares and unpaid dividends. As a result, an integrated IT portal will be established to make this process much easier and more convenient. This portal will enable shareholders to claim their unpaid or unclaimed shares/dividend amount through a simple and user-friendly procedure. Process of getting money back from IEPF If you have invested in a company’s shares and are facing difficulties in getting your investments back, you can follow the process below to recover your investments from the IEPF: Step 1: Check the IEPF website The first step is to go to the IEPF website, which is iepf.gov.in. On the homepage, click on the 'Claim Refund' tab to proceed. Then click on the “Upload eForms” link on the left side of the page which will take you to the MCA login page. Step 2: Login on the MCA Portal If you have a login ID, login using the same on the MCA Portal and click on “MCA Services” and then click on “IEPF-5”. Step 3: Fill out the online form Next, you need to fill out the refund claim form online on the website. Provide all the required details, such as your name, address, PAN number, and bank details. Also, provide details of your investment, such as the company's name and the dividends unclaimed. Step 4: Attach Documents Attach all the necessary documents, such as your PAN card, cancelled cheque, <keyword id="105386" type="General" weightage="50" keywordseo="demat-account" source="Orion">demat account</keyword> client master list and any other documents that prove your entitlement to the investment in the company. Step 5: Submit the Form After filling out the form and attaching the documents, submit it to the IEPF Authority. Once the form is submitted online, a SRN acknowledgement will be created, which can be used to track the status of your claim. Step 6: Send physical documents to Nodal Officer After submission, print the form and send the physical copy duly signed with all supporting documents to the Nodal Officer of the Company. Step 7: Company will file Verification Report On receipt of physical documents, the Nodal Officer of the company will verify the documents and send an online E-Verification Report with Approval to the IEPF Authority. Step 8: IEPF Authority will approve The IEPF authorities will verify your claim and may ask for additional documents or information if required. The verification process may take some time, and you may need to follow up with the authority for updates. After verification, the IEPF Authority will send an Approval email to the registered email id of the claimant. Step 9: Receive the Refund If your claim is verified and approved, the IEPF Authority will initiate the refund process, and then your amount will be credited to your bank account and the shares to the Demat Account. However, recovering unclaimed shares and unpaid dividends from the IEPF can be a challenging task for some shareholders, especially senior citizens, NRIs, legal heirs of deceased shareholders for which shareholders might need the assistance of a professional who has the requisite domain knowledge. Moreover, shareholders can avail various recovery advisors who offer services including issue of duplicate shares, issue of succession certificates, undertaking name deletion, and claim from IEPF. By providing such services, companies aim to simplify the process for shareholders and ensure that they can reclaim their rightful share of unclaimed dividends and shares without any hassle. (The writer is the co-founder &amp; CEO of GLC Wealth Advisor LLP)

Getting back unpaid dividends, unclaimed shares: Insights into the process to claim from IEPF Authority

An Ahmedabad citizen got a lottery of not a few hundreds or lakhs, but Rs 11,677 crore in his demat account only to be taken back in a few hours. The money was in his account for more than eight hours. <keyword id="774513" type="General" weightage="80" keywordseo="ramesh-sagar" source="Orion">Ramesh Sagar</keyword> has been investing in the stock market for the last five to six years. A year ago, he opened his demat account with <keyword id="66607" type="General" weightage="80" keywordseo="kotak-securities" source="Orion">Kotak Securities</keyword>. "On July 26, 2022, I received Rs 116,77,24,43,277.10 crore in my account, of which I invested Rs two crore in the stock market and booked profit of Rs five lakh. That very evening around 8 to 8.30 p.m, the bank withdrew the amount," he told IANS. He said he had received a notification from the bank stating: "There is an issue with margin update in the app. you can continue to place orders, but the margin shown will not be updated. We regret the inconvenience and are working on resolving this at the earliest." Not just him, many other demat account holders were also lucky to hit a jackpot that day. When IANS tried to get Kotak Securities' comment on the issue from the western zonal office (<keyword id="6358070" type="General" weightage="20" keywordseo="mumbai" source="Orion">Mumbai</keyword>), the officer on phone said that the investor's pan card or demat account number can't verify the claim and comment on the issue. Update: Kotak Securities has issued the following statement: “On 26th July 2022, due to a technical glitch, additional margin limits were inadvertently uploaded in few clients' trading accounts by Kotak Securities Limited (KSL). These additional limits were reflecting in the clients' trading accounts for a short period. Our IT team had worked on this issue and withdrew the additional limits in a short span of time within the trading hours. We confirm that no amount was transferred to the bank accounts of the clients in this regard. KSL had also promptly reported the said issue to the Exchange on the same day. At KSL we strive hard to make our systems robust and error free to avoid any such incidence in the future.” SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/there-is-a-caste-and-religion-bias-in-salaries-says-an-oxfam-report/articleshow/94219196.cms">There is a caste and religion bias in salaries says an Oxfam report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/oral-nasal-urine-samples-necessary-for-monkeypox-diagnosis-icmr/articleshow/94219524.cms">Oral, nasal, urine samples necessary for monkeypox diagnosis: ICMR</a>

Tech Glitch: Man loses ₹11,677 crore windfall from demat account in hours

Financial markets regulator <keyword id="6355630" type="General" weightage="20" keywordseo="securities-and-exchange-board-of-india" source="Orion">Securities and Exchange Board of India</keyword> (<keyword id="35210" type="General" weightage="20" keywordseo="sebi" source="Orion">SEBI</keyword>) has banned three individuals and two entities (in total five) from securities markets in a case of front-running trades in <keyword id="17271372" type="General" weightage="20" keywordseo="life-insurance-corporation-of-india-" source="Orion">Life Insurance Corporation of India.</keyword> The practice by dealers of dealing with advance information provided by their brokers and investment analysts, before their clients have been given the information is known as front running. Of the individuals was <keyword id="6367143" type="General" weightage="20" keywordseo="lic" source="Orion">LIC</keyword>'s employee Yogesh Garg since November 08, 2011. The rest are Sarita Garg, Kamlesh Agarwal, Ved Prakash HUF, and Sarita Garg HUF. Also, SEBI impounded Rs 2.44 crore in total from their accounts. SEBI's interim order on Thursday said the entities shall cease and desist from, directly or indirectly, engaging in any fraudulent, manipulative or unfair trade practice including front running thereby committing or causing a violation of any provisions under relevant laws. "...it is prima facie concluded that Noticees 1 to 5 (five entities) were involved in a scheme to front run the trades of the Big Client and therefore they are prima facie jointly and severally liable for the proceeds generated from the front running trades," the SEBI order read. It was prima facie observed that Yogesh Garg, being a dealer in LIC, was in possession of non-public information regarding impending orders of LIC and he acted as an information carrier. SEBI concluded that these five entities had a distinct role to play in the fraudulent scheme devised for front-running the orders of LIC. The entities are now directed to provide a full inventory of all assets held in their name, whether movable or immovable or any interest or investment or charge on any of such assets, including details of all bank accounts, <keyword id="104763" type="General" weightage="20" keywordseo="demat" source="Orion">Demat</keyword> accounts and mutual fund investments, immediately but not later than 15 days. Against that backdrop, SEBI advised LIC to review its processes and take all necessary additional measures to prevent, detect, and remediate any fraudulent, manipulative or unfair trade practices by its employees in relation to its investment activities. .SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/filmfare-awards-2023-gangubai-kathiawadi-makes-a-clean-sweep/slidelist/99833037.cms">Filmfare Awards 2023: Gangubai Kathiawadi makes a clean sweep</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/indian-stock-indices-hold-steady-as-investors-monitor-earnings-wipro-is-top-gainer/articleshow/99834835.cms">Indian stock indices hold steady as investors monitor earnings; Wipro is top gainer</a>

SEBI bans five entities in LIC front running case, impounds ₹2.44 crore

<ul><li>Nirmala Sitharaman said that a <keyword id="105386" type="PERSON" weightage="20" keywordseo="demat-account" source="Orion">demat account</keyword> can be opened using an Aadhaar card. </li><li>Finance Minister Nirmala Sitharaman also said that banks will be able to raise an additional ₹5 lakh crore which will help recapitalise banks which are stressed with non-performing assets. </li><li>Further, there will be no tax surcharge on foreign and domestic investors.</li></ul>In a major relief to those who are looking to invest in the stock markets, Finance Minister Nirmala Sitharaman said that a demat account can be opened using an Aadhaar card. A demat account is necessary to invest in stock markets and it helps investors to hold and keep track of shares and securities in an electronic format. Currently, opening demat requires six different types of documents that makes it a cumbersome process. Now, Sitharaman has eased it. Here are the documents required to open a demat account which is required no more, according to HDFC bank: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Documents required previously </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Documents required now </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Identity proof: Passport/ Driving licence/ Voter’s identity card/ Aadhaar card/ PAN card </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Aadhaar </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Address proof: Ration card/ Passport/ Voter’s identity card / Driving licence/ Bank passbook or bank statement/ Utility bills such as electricity bills or landline phone bills </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Income proof: Salary slips/ income tax returns, </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;"> Bank account proof: Cancelled bank cheque </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">PAN card </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Other announcements Finance Minister Nirmala Sitharaman also said that banks will be able to raise an additional ₹5 lakh crore which will help recapitalise banks which are stressed with non-performing assets. Further, there will be no tax surcharge on foreign and domestic investors.

Now you can open a demat account with just an Aadhaar card

New Delhi, Nov 15 () Capital markets regulator Sebi on Friday put in place a mechanism for stock exchanges and depositories to map the unique client code (UCC) with the demat account of a client.
 "Stock exchanges and depositories shall map the existing UCCs with the demat account of the clients latest by December 31, 2019," the regulator said in a circular.
 Sebi said "UCC allotted by the trading member (TM) to the client shall be mapped with the demat account of the client."
 "A client may trade through multiple TMs in which case each such UCC shall be mapped with one or more demat account(s)," it added.
 Sebi has asked the bourses to share the UCC data having PAN, segment, TM/CM (clearing member) code and the allotted UCC with the depositories.
 The UCC data is to be shared with the depositories on a one-time basis by November 30, 2019, and subsequently the incremental data in respect of new UCCs shall be shared on a daily basis, Sebi said.
 Besides, depositories need to map the UCC data in the demat account based on the PAN provided in the UCC database.
 Additionally, clients can make a request to their depository participants to delink or add UCC details which will then be processed by the depository through depository participants.
 Before any addition of UCC in the demat account, the depositories shall validate the same with the stock exchanges and client.
 The regulator has also asked exchanges and depositories to have a mechanism in place to address clients' complaints with regard to UCC mapping with their demat accounts.
 "Stock Exchanges and Depositories shall have a mechanism in place to ensure that inactive, non-operational UCCs are not misused and also a mechanism to ensure that inactive, non-operational UCCs are weeded out in the process of mapping clients' UCC with their demat account," Sebi said.
 The framework has been put in place pursuant to discussions with exchanges and depositories in order to facilitate ease in reconciliation, it added. SRS ABM
ABM

Sebi lays down mechanism to map unique client code with demat account

Indian financial services firm <keyword id="19913826" type="General" weightage="100" keywordseo="Zerodha" source="keywords" meta.keywordsubtype="org" meta.entityname="Zerodha" meta.hostid="261" meta.entityid="Zerodha">Zerodha</keyword> made headlines recently for hitting ₹8,320 crore revenue in FY24. However, its CEO and co-founder <keyword id="19923447" type="General" weightage="20" keywordseo="Nithin-Kamath" source="keywords">Nithin Kamath</keyword> says that the company is preparing for a decline in revenue as several regulatory changes are expected to take effect later this year. Kamath, in a blog post, outlined the challenges ahead, which could result in a <keyword id="20168027" type="General" weightage="20" keywordseo="revenue-drop" source="keywords">revenue drop</keyword> of up to 50% as Zerodha faces a combination of stricter regulations and shifting market conditions. <h2>Zerodha braces for revenue drop</h2>One of the main concerns for Zerodha is the new Securities and Exchange Board of India (SEBI) regulation, which will be implemented on October 1, 2024. Kamath expects a 10% dip in revenue as the "true-to-label" circular is enforced. This change will impose stricter guidelines on brokers like Zerodha regarding the kind of financial products they offer, potentially limiting some of their key revenue-generating activities. Another significant factor affecting Zerodha’s future revenue is the ongoing review of index derivatives regulations. Index derivatives, which are a crucial part of Zerodha's business model, could soon face changes that might severely impact the company’s earnings. Kamath estimates that such modifications could reduce earnings by 30-50%. Additionally, with the <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword> (STT) set to rise in October 2024, the costs of futures trading could further impact Zerodha’s profitability, though the effect on options trading may be limited. Zerodha is also set to face revenue pressures due to changes in Annual Maintenance Charges (AMC) under the new Basic Services Demat Account (BSDA) thresholds. From October 2024, brokers will only be able to charge full AMC fees from customers with holdings of ₹10 lakhs or more, up from ₹4 lakhs currently. Combined with Zerodha's removal of account opening fees, this is expected to significantly impact their revenue. Yet another challenge comes from Zerodha’s decision to halt payouts from its referral program. The program, which incentivised customers to refer others to the platform, will now only allow payouts to Authorised Persons (AP) registered with exchanges. This new regulation limits the number of people who can refer customers, slowing the firm's growth. <h2>Zerodha's financial results</h2>Despite these looming challenges, Zerodha posted strong financial results for the fiscal year 2024. The firm recorded a 62% increase in profits, reaching ₹4,700 crore, with revenue climbing by 21% to ₹8,320 crore. Traders using Zerodha's platform are also sitting on over ₹1 lakh crore in unrealised profits, largely driven by strong market performance and increased retail participation. However, Kamath also cautioned that the profitability boost in recent years has been fuelled by a bull market, which could reverse at any time. If the market turns, Zerodha, like many other financial service providers, may face significant challenges. To prepare for such an eventuality, the company has built up a strong financial position, with Kamath stating that their net worth now stands at nearly 40% of the customer funds they manage.

Zerodha co-founder Nithin Kamath says bracing for a huge revenue hit even as the company hits ₹8,320 crore revenue in FY24

<ul><li>With <keyword id="57156" type="General" weightage="20" keywordseo="gold-etfs" source="Orion">gold ETFs</keyword>, you can enter or exit at any point in time taking timely advantage of the price movements. </li><li><keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">Gold</keyword> ETFs mirror the current market value of <keyword id="737155" type="General" weightage="20" keywordseo="physical-gold" source="Orion">physical gold</keyword>, enabling investors to trade them on the exchange throughout market hours. </li><li>Investors who do not have a demat account choose to invest in Gold ETFs through gold fund of funds. </li></ul>Gold has had a good 2023 with gold prices having gone up 14% in 2023. Furthermore, the yellow metal is expected continue shining in 2024 as market watchers opinie that another <a href="https://www.businessinsider.in/personal-finance/news/gold-rush-dont-recycle-or-book-profits-yet-another-bull-run-on-the-way-say-analysts/articleshow/105803018.cms">bull run is on the way</a>. Also, the multiple geopolitical issues look to continue, which may elevate <a href="https://www.businessinsider.in/personal-finance/news/bullion-bull-run-to-continue-white-metal-may-see-a-breakout-in-2024/articleshow/106432925.cms">gold prices to higher levels</a>. Both Gold ETFs as well as <keyword id="2754241" type="General" weightage="20" keywordseo="sovereign-gold-bonds" source="Orion">sovereign gold bonds</keyword> (SGBs) are suitable for long-term investment in gold and score above physical gold (laden with purity concerns, storage issues and price inefficiencies) as an investment avenue. A gold ETF is a passive investment instrument that invests in physical gold of very high purity and aims to mimic the returns of domestic physical gold. SGBs, on the other hand, are government securities denominated in grams of gold. SGBs surpass gold ETFs in returns due to their 2.5% annual interest and tax benefits on capital gains upon maturity. Yet, investors persist in Gold ETFs for various reasons. Some of those reasons are. Gold backing: Unlike Gold ETFs, SGB’s are not backed by physical gold. Many investors prefer the security of gold backing instead of a government guarantee. That is justified because gold’s value is derived from the fact that unlike equities and debt, it is no one's liability. Flexibility to enter and exit: While investing in a SGB with the intention of holding the bond till its maturity and benefitting from the capital gains tax advantage, the investor lands up taking a bet that gold prices will be up 8 years later at time of redemption, which may or may not be the case. “For instance, gold prices may peak 4 years into the investor’s SGB holding period, but the investor will be unable to sell it and book profits. By the time the maturity arrives, prices may have moved down again," says Ghazal Jain, fund manager, alternative investments, Quantum AMC. . Thus, you may have bought SGBs to capitalise on the capital gains tax advantage but that will be helpful only if there are gains to be taxed. Although gold has historically given better returns over long time periods, there may be cycles where gold doesn’t perform. For instance, gold bought in 2011 didn’t have much capital gains in the ensuing 8-year period. So was the case for gold bought in the 1980s until the mid-1990s. This lack of flexibility is not only true for selling, but also relevant in case of buying. When gold falls and becomes attractive, there may not be a SGB tranche available for one to invest. In such cases one may lose out on a lucrative entry point for gold. This is not the case with gold ETFs, where you can enter or exit at any point in time taking timely advantage of the price movements in gold to either build your exposure or book profits. Liquidity at fair prices: SGBs have an 8-year tenure with an exit option from 5th year onwards only. Tax benefits are only applicable if the bond is held till maturity, which limits liquidity in secondary markets. Thus, SGBs are usually seen trading at a discount on the exchanges. “So, if an investor wishes to sell the SGB before the 8-year maturity, he may be forced to sell the bond at a discount in the secondary market which would eat into investor’s returns,” says Jain. On the contrary, Gold ETFs offer high liquidity. These ETF units mirror the current market value of physical gold, enabling investors to trade them on the exchange throughout market hours at rates closely aligned with the market price. Consequently, Gold ETFs are viewed as a more effective and efficient addition to a portfolio. Gold ETF Vs Gold fund of fund Generally, one Gold ETF unit is approximately equal to 0.01 grams of gold. “The units are listed and traded on stock exchanges, and investors can invest in Gold ETFs using a demat account. Gold ETFs offer the investor the ease and flexibility of stock investments and the simplicity of gold investments,” says Jain. Investors who do not have a demat account choose to invest in Gold ETFs through gold fund of funds. These mutual funds enable them to opt for a systematic investment plan (SIP) and regularly invest in this strategic asset class without having to worry about timing the market. “Fund of fund is a mutual fund product which invests in an underlying fund. Any investor who wants to go the demat way can go and buy and sell the ETFs in the secondary market. A mutual fund investor can buy a fund of funds,” says Tapan Patel, fund manager, commodities, Tata AMC. A fund of funds will incur some management fees of the mutual fund, but that will have a minimal effect. Things to keep in mind “One should know the expense ratio of the fund. One should also take note of the tracking error,” says Patel. The tracking error measures how closely an investment matches its benchmark; higher values indicate more divergence from the index, reflecting potential risk. Experts recommend keeping a 10-15% allocation in the portfolio to ride out the ups and downs of the markets. One is also advised to stagger their investments to lower their average purchasing costs.

Gold ETFs vs sovereign gold bonds: Which one should you choose now?

<ul><li>When considering the <keyword id="47201" type="General" weightage="20" keywordseo="income" source="Orion">income</keyword> of minors, distinguish between two forms of income - earned and unearned.</li><li><keyword id="19679475" type="General" weightage="20" keywordseo="earned-income" source="Orion">Earned income</keyword> isn’t clubbed with the parent’s income.</li><li><keyword id="6306327" type="General" weightage="20" keywordseo="unearned-income" source="Orion">Unearned income</keyword> offers certain deductions to the parent. </li></ul>12-year old Mayank has become the youngest child to win ₹1 crore at the ‘Kaun Banega Crorepati 15’ in its ‘KBC Juniors Week.’ When talented kids like Mayank win prize money in contests and shows, how is the income taxed? Also, how is other income of a child taxed? We take a look. How the income of a <keyword id="43583" type="General" weightage="20" keywordseo="minor" source="Orion">minor</keyword> is taxed Income earned by a minor child from activities involving their skills, talent, or specialised knowledge, such as winnings from contests like KBC, is generally subject to taxation. “According to section 115BB of the Act, minors are required to pay tax on this income at a flat rate of 30% on a gross basis. Additionally, there's a health and education cess of 4 % on the basic tax liability,” says Abhishek Soni, CEO, Tax2Win.in, a tax filing platform. The entity that disbursed this income would have already deducted tax from the prize money at a flat rate of 30%, plus health and education cess of 4%. Importantly, no tax deduction or exemption is allowed against this type of income for minors. Distinguishing between ‘earned’ and ‘unearned’ income When considering the income of minors, it is important to distinguish between two forms of income - earned and unearned income. Earned income: If the child earns income through prizes in competitions, shows, sports, or engages in personal business must be treated as earned income. “Basically, earned income refers to the money a minor earns through manual work or by applying their skills, talents, specialised knowledge, or experience. Earned income will not be clubbed with parent’s income. It will be taxed in the hands of the minor,” says Archit Gupta, Founder and CEO, Clear, a fintech company. Unearned income: Under the <keyword id="6354751" type="General" weightage="20" keywordseo="income-tax" source="Orion">Income Tax</keyword> Act, if a minor receives funds as gifts or earns interest through savings, fixed deposits, or investments made in their name by parents, relatives, or friends, it's categorised as unearned income. This includes interest accrued from savings accounts or investments in the minor's name facilitated by parents. “According to section 64(1A) of the Act, any such income received by a minor is included in the parent's income, known as "clubbing of income”, says Soni. Here, there can be two scenarios. Minor's income up to ₹1,500/-year: If the minor's annual income remains within ₹1,500, it won't be added to the parent's income. Section 10(32) allows for tax exemption on income up to ₹1,500 per child, with a maximum of two minor children. This exempted income can include amounts transferred by parents, grandparents, or any other person. Minor's income exceeding ₹1,500/year: If the minor's income exceeds ₹1,500 annually, it will be clubbed with the higher-earning parent's income for tax purposes. However, a tax exemption of ₹1,500 per child per year, up to a maximum of two children, is available to parents. This exemption is claimed under section 10(32) of the Income Tax Act. However, the parent claiming this deduction on the minor's clubbed income must opt for the old tax regime; it's not applicable in the new tax regime. Tax implications when income of a minor is invested Parents can invest in bank fixed deposits (FDs) or various post office schemes in the name of their minor child. When it comes to investing in mutual funds or equities in the name of a minor there is no restriction. However, this process usually requires offline procedures, including physical documentation. “Parents cannot make these investments online on behalf of their children. For investing in equities, a parent can open a demat account specifically in the name of the minor. This account allows for the purchase and holding of shares in the minor's name,” say Soni. Income from any such investment falls under the category of unearned income and is hence taxed in the way mentioned above. Does a child need to file income tax returns? A minor can have a PAN card. The parents or guardian can apply for a PAN card on behalf of the minor child. “If the minor child’s tax returns are being filed independently, he will need to have a PAN card along with other details like bank account, mobile number, e-mail ID etc,” says Gupta. So, if a minor generates income from sources like winnings in competitions, performances, sports, or through personal business, self-employment, or part-time work, it qualifies as earned income. This income remains separate from the parent's or guardian's earnings. The minor must file an income tax Return (ITR) and must obtain a PAN card for this purpose.

Tax implications on income of a minor – What every parent should know

Luxury carmaker <keyword id="6363321" type="General" weightage="80" keywordseo="audi" source="Orion">Audi</keyword> <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> on Tuesday said its sales witnessed over two-fold jump at 1,950 units in the January-March <keyword id="15308631" type="TOPIC" weightage="60" keywordseo="Quarter" source="TOPIC" sourcekeytype="equity,investopedia" meta.keywordsubtype="null" meta.msid="92652086" meta.seopath="q/quarter" meta.entityname="Quarter" meta.hostid="153" meta.entityid="quarter">quarter</keyword> this year as compared with the same period last year. The company had sold 862 units in the first quarter of 2022. "Our <keyword id="15330375" type="TOPIC" weightage="60" keywordseo="Product" source="TOPIC" sourcekeytype="marketing,investopedia" meta.keywordsubtype="null" meta.seopath="p/product" meta.entityname="Product" meta.hostid="153" meta.entityid="product">product</keyword> line-up boasts of sixteen models and we currently have the strongest ever SUV <keyword id="15309292" type="TOPIC" weightage="60" keywordseo="Portfolio" source="TOPIC" sourcekeytype="equity,investopedia" meta.keywordsubtype="null" meta.seopath="p/portfolio" meta.entityname="Portfolio" meta.hostid="153" meta.entityid="portfolio">portfolio</keyword> contributing to over 60 per cent of our total sales," Audi India head Balbir Singh Dhillon said in a statement. The newly launched Q3 and Q3 Sportback are witnessing strong <keyword id="15308237" type="TOPIC" weightage="60" keywordseo="Demand" source="TOPIC" sourcekeytype="economy,investopedia" meta.keywordsubtype="null" meta.msid="92562122" meta.seopath="d/demand" meta.entityname="Demand" meta.hostid="153" meta.entityid="demand">demand</keyword> from across the country, he added. "We are on a growth path and are confident of a bullish performance through the year 2023," Dhillon noted. The company said it also continues the expansion of its pre-owned car business, Audi Approved: plus, in India. Currently operating with twentytwo outlets across all major hubs in the country, the brand is rapidly expanding and will have twentyfive-plus pre-owned car facilities by the end of the year, it added. Audi sells A4, A6, A8 L, Q3, Q3 Sportback, Q5, Q7, Q8, S5 Sportback, RS5 Sportback, RS Q8, e-tron 50, e-tron 55, e-tron Sportback 55, e-tron GT and RS e-tron GT in the Indian market. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/youtube-announces-new-policies-on-eating-disorder-content/articleshow/99607321.cms">YouTube announces new policies on eating disorder content</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/demat-account-additions-slow-as-markets-languish-upstox-icici-securities-5paisa-capital-lose-market-share/articleshow/99607157.cms">Demat account additions slow as markets languish; Upstox, ICICI Securities, 5Paisa Capital lose market share</a>

Audi India reports over two-fold jump in sales in January-March quarter

Google-owned YouTube has announced that it will update its approach to eating disorder-related content to create space for community, recovery and resources while protecting viewers in the coming weeks. "We've long had policies to remove content that glorifies or promotes eating disorders. Moving forward, we'll be updating our Community Guidelines to also prohibit content about eating disorders that feature imitable behaviour, or behaviour that we worked with experts to determine can lead at-risk viewers to imitate," Youtube said in a blogpost. According to the company, the policies could include -- disordered eating behaviours, such as purging after eating or severely restricting calories, and weight-based bullying in the context of eating disorders. The company has collaborated closely with <keyword id="309749" type="General" weightage="20" keywordseo="neda" source="Orion">NEDA</keyword> (<keyword id="15799100" type="General" weightage="80" keywordseo="national-eating-disorder-association" source="Orion">National Eating Disorder Association</keyword>) and other organisations to deepen its understanding of imitable behaviour, its potential manifestations in content, and its impact on vulnerable viewers as part of the development of its new policies. Moreover, to ensure appropriate content viewing, the company has implemented 'age restrictions' on certain materials discussing disordered eating behaviours in the context of recovery, as well as those that feature <keyword id="17187575" type="General" weightage="80" keywordseo="edsa" source="Orion">EDSA</keyword>, as they may not be suitable for all ages. "Some videos will not be available to viewers under 18 if you're signed out, or if the video is embedded on another website," the company said. Further, Youtube has introduced eating disorder crisis resource panels under videos, which are currently available at the top of search results related to eating disorders in the US, UK, <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword>, <keyword id="6356687" type="General" weightage="20" keywordseo="canada" source="Orion">Canada</keyword>, Japan, Korea, Mexico, France and Germany, the company said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/top-10-great-place-to-work-in-india-as-per-linkedin/slidelist/99606287.cms">Looking for a great place to work? Here are India’s most coveted companies</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/demat-account-additions-slow-as-markets-languish-upstox-icici-securities-5paisa-capital-lose-market-share/articleshow/99607157.cms">Demat account additions slow as markets languish; Upstox, ICICI Securities, 5Paisa Capital lose market share</a>

You Searched For "demat account additions" and got 13 results

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Tech Glitch: Man loses ₹11,677 crore windfall from demat account in hours

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SEBI bans five entities in LIC front running case, impounds ₹2.44 crore

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Now you can open a demat account with just an Aadhaar card

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Sebi lays down mechanism to map unique client code with demat account

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Zerodha co-founder Nithin Kamath says bracing for a huge revenue hit even as the company hits ₹8,320 crore revenue in FY24

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Gold ETFs vs sovereign gold bonds: Which one should you choose now?

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Tax implications on income of a minor – What every parent should know

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Audi India reports over two-fold jump in sales in January-March quarter

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YouTube announces new policies on eating disorder content

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