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Share market is where investments are bought and sold. Share market provides a forum for the investors to connect with public companies and buy shares of ownership. In practical terms, the terms share market and stock market mean the same and are used interchangeably. What is the stock market? When we say “stock market”, the term often refers to any one of the major stock indexes. It is very difficult to keep track of every single stock. Hence these indexes include a given section of the stock market. In this case, the performance of the particular index is considered as the representative performance of the whole market. Every day, you would have come across news headlines that say that the stock market has moved up or low or that it has closed up or down at the end of the day. This will mean that the sticks within the particular index have either gained or lost on the whole in their value. This kind of movement in the stick prices enable the investors to make profits while they buy and sell the stocks. How does the stock market work? The concept underlying the working of the stock market is very simple to understand. It works similar to how an auction house works. In the stock market, the buyers and sellers negotiate the prices and trade on the stocks. The stock market functions through a network of exchanges. Companies that have gone public list their stocks on an exchange. This is meant to raise the capital to run their business. Investors get to purchase these stocks. These investors, in turn, buy and sell the stocks among themselves. The exchange tracks the supply and demand of each of the stocks listed. This supply and demand are the factors that decide on the price of the securities or the levels the stakeholders in a stock market are willing to buy or sell. Most of these calculations in the stock market are done by computer algorithms. The buyers propose a bid which means the highest amount they shall be willing to pay. This value is in most cases lower than the amount that the sellers ask for in exchange. This difference is usually called the bid-ask spread. For a trade to happen, either a buyer must increase his price or the seller must be willing to decrease his. Stock market investments Like any other investments, stock market investments also carry a lot of risks. However, they also have good potential for a reward. The history of gains in a market will increase in its value over a period of time. At the same time, it is not uncommon for the stocks to face sudden dips. An index fund is a kind of mutual fund which is also called an exchange-traded fund. The objective of these funds is to reflect the performance of a given index by holding all of the investments or stocks in that index. Hence. Investing in an index fund is a way to build a diversified portfolio that rules out the need to purchase a number of independent stocks. In this way, the risks associated with independent stocks are also minimized to a great extent.

Explained: How Share Market works

Deep convolutional neural networks (DCNNs) do not see objects the way humans do -- using configural shape perception -- and that could be dangerous in real-world artificial intelligence (Al) applications, say researchers. DCNNs are the type most commonly used to identify patterns in images and video. "Our results explain why deep AI models fail under certain conditions and point to the need to consider tasks beyond object recognition in order to understand visual processing in the brain," said researcher <keyword id="15021557" type="General" weightage="80" keywordseo="james-elder" source="Orion">James Elder</keyword> from <keyword id="196997" type="General" weightage="50" keywordseo="york-university" source="Orion">York University</keyword> in Toronto. "These deep models tend to take 'shortcuts' when solving complex recognition tasks. While these shortcuts may work in many cases, they can be dangerous in some of the real-world AI applications we are currently working on with our industry and government partners," <keyword id="6470117" type="General" weightage="80" keywordseo="elder" source="Orion">Elder</keyword> added. For the study, published in the journal <keyword id="12161883" type="General" weightage="50" keywordseo="iscience" source="Orion">iScience</keyword>, the team employed novel visual stimuli called "<keyword id="15021558" type="General" weightage="80" keywordseo="frankensteins" source="Orion">Frankensteins</keyword>" to explore how the human brain and DCNNs process holistic, configural object properties. "Frankensteins are simply objects that have been taken apart and put back together the wrong way around. As a result, they have all the right local features, but in the wrong places," Elder said. The investigators found that while the human visual system is confused by Frankensteins, DCNNs are not -- revealing an insensitivity to configural object properties. According to the researchers, modifications to training and architecture aimed at making networks more brain-like did not lead to configural processing, and none of the networks were able to predict trial-by-trial human object judgements accurately. "We speculate that to match human configural sensitivity, networks must be trained to solve a broader range of object tasks beyond category recognition," Elder noted. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/healthy-lifestyle-may-reduce-dementia-risk-in-diabetic-patients/articleshow/94293286.cms">Healthy lifestyle may reduce dementia risk in diabetic patients</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-gains-343-points-nifty-up-106-points-mm-indusind-top-gainers/articleshow/94293184.cms">Sensex gains 343 points, Nifty up 106 points – M&amp;M, IndusInd top gainers</a>

Even smartest AI models don't match human visual processing: Study

<ul><li><keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> is considering banning <keyword id="155669" type="PERSON" weightage="20" keywordseo="short-selling">short selling</keyword> to control the fall of shares due to the coronavirus outbreak.</li><li>Several countries have already banned short selling temporarily.</li></ul>Short selling is a trading strategy in which an investor sells shares expecting their price to decline in the near future. As and if the price declines, the investor buys those shares at a predetermined price The difference between the selling price and the buying price will be the investor’s profit or loss. What is short selling? Think of short selling as the opposite of a regular purchase – in a regular purchase, you first buy the shares at a price and sell them at a higher price. In short selling, the shares are first sold at a higher price and then bought back at a lower price. More or less, it is a bet like any form of trading but in this method, investors gain by betting that the stock price will fall. Generally, short selling happens when investors expect the prices of shares to fall. This means that there is a bearish sentiment in the market. Essentially, short sellers are bears – they try to drive the price down to make a profit. How does short selling work? Let us understand short selling with an example. Suppose the shares of a company XYZ are currently at ₹500. There is an investor in the market who expects the price to go down to ₹300 in the near future. This means that the investor thinks that the prices are currently high, so buying at this price is not an option. So, to make a profit, the investor first sells 100 shares of XYZ at ₹500, so he has ₹50,000 from the sale. When the price of XYZ’s shares come down to ₹300, the short seller buys XYZ shares by paying ₹30,000. The difference of ₹20,000 is the investor’s profit. A risky gamble Short selling is a risky gamble – there is no limit on prices, so you can end up with unlimited losses. Shorting is where you guess the price of a stock on a date in the future, and agree to buy it. So one has to buy it even if the stock price is high! If there is excessive short selling in the market, it also suggests that the bears have taken over and the share or the market could end up crashing, leading to losses for a lot of retail investors. Why is SEBI considering banning it? The <keyword id="53581" type="COMPANY" weightage="20" keywordseo="NATIONAL-STOCK-EXCHANGE">National Stock Exchange</keyword> and <keyword id="6484188" type="DEFINITION" weightage="20" keywordseo="sensex">Sensex</keyword> have crashed by more than 18% in March alone, wiping off crores of investor wealth in the process. To keep the fall under control, the Securities Exchange Board of India (SEBI) is considering a ban on short selling, says a report by <a href="https://www.business-standard.com/article/markets/sebi-considers-short-selling-ban-trading-curbs-to-reduce-market-volatility-120031500915_1.html">Business Standard</a>. This would prevent bears from controlling the market and crashing it further. Countries like the UK, Italy, Spain, South Korea have temporarily banned short selling in the wake of the coronavirus crisis. See also: <a href="https://www.businessinsider.in/stock-market/news/short-sellers-reaped-51-billion-in-7-days-as-markets-tanked-on-coronavirus-panic/articleshow/74498304.cms">Short sellers reaped $51 billion in 7 days as markets tanked on coronavirus panic</a> <a href="https://www.businessinsider.in/stock-market/news/short-selling-should-be-illegal-elon-musk-praised-a-crackdown-on-shorts-by-the-worlds-biggest-pension-fund/articleshow/72352486.cms">'Short selling should be illegal' - Elon Musk praised a crackdown on shorts by the world's biggest pension fund</a>

What is short selling and why is SEBI considering banning it?

<ul><li>The Surat-based company, Anupam Rasayan, kicked off its public offering today, and the issue will remain open for subscription till March 16.</li><li>The company has fixed a price band of ₹553-555 a share for its IPO.</li><li>The aggressively priced IPO has received mixed recommendations from investment experts.</li><li>Some believe the current valuations exceed growth prospects, while others bet on long-term gains, robust growth, and market share gains.</li></ul>A ₹760-crore initial share-sale of speciality chemical company Anupam Rasayan is now open for public subscription. The Surat-based company kicked off its public offering today, and the issue will remain open for subscription till March 16. It plans to use the funds to repay its debt partly. As of September, the company had a total debt of ₹814.48 crore, and it plans to repay at least ₹556.20 crore in debt. The company has fixed a price band of ₹553-555 a share for its initial public offering (IPO). Half of the issue is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional bidders. Anupam Rasayan commenced operations in 1984 with conventional products, and now it makes speciality chemicals that involve multi-step synthesis and complex chemistries. Anupam Rasayan's business has two verticals — life science related to speciality chemicals and other speciality chemicals. The life science-related speciality chemicals are used in agrochemicals, personal care, and pharmaceutical sectors, whereas the other is used for pigment, dyes, polymer additives, etc. The aggressively priced IPO has received mixed recommendations from investment experts. Some believe the current valuations exceed growth prospects, while others bet on long-term gains, robust growth, and market share gains. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Choice Broking </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for long term </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Angel Broking </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Anand Rathi Financial Services </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ventura Securities </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr></tbody></table> Here's what works for it and what doesn’t The aggressively priced IPO According to a Reliance Securities IPO note, the <keyword id="10487969" type="UNKNOWN" weightage="20" keywordseo="Anupam-Rasayan-IPO">Anupam Rasayan IPO</keyword> is demanding a price-to-earnings (PE) of 80 times FY20 earnings and 69 times FY21 annualised earnings, which look aggressively priced. It further added that considering capacity utilisation of 75% in the first nine months of FY21 and likely interest cost savings from debt repayment from IPO proceeds, we believe its earnings can potentially grow 35-40% compound annual growth rate over FY20-23. Despite factoring this, the stock would trade at over 40 times of FY23 earnings, which is expensive compared with its quality peers like SRF and PI Industries. Strong and long-term relationships with diversified customers According to HDFC Securities, the company has developed strong and long-term relationships with various multinational corporations that have helped to expand its product offerings, processes and geographic reach. “Its customers are typically engaged in various industries, including agrochemicals, personal care, pharmaceuticals, specialty pigments and dyes, and polymer additives, and spread across various geographies, which helps it mitigate risks resulting from customer, industry and geographic concentration,” it added. The company has established relationships with various multinational corporations, such as Syngenta Asia Pacific, Sumitomo Chemical Company Limited and UPL Limited, across Europe, Japan, the United States and India. Consistent track record of financial performance The company has demonstrated consistent growth in terms of revenues and profitability. The revenue from operations has increased at a CAGR of 24.29% from ₹349.18 crore in FY2018 to ₹539.38 crore in FY2020. The company’s profit has also grown nearly 45% from ₹73.5 crore in FY18 to ₹134.9 crore in FY20. <div type="image" title="_Anupam Rasayan" msid="81462795" hostid="261"></div> Client concentration remains a key risk According to ICICI Direct, the top five clients constitute 50% of its overall revenue, while the top 10 clients contribute to the tune of 84%. “Since the company has different major customers in its business profile, any loss in customers can impact order backlog and thereby revenue performance,” the analyst report said. On the other hand, Angel Broking believes the company has significant indebtedness, and an inability to comply with repayment could adversely affect the business. It further added that the company is experiencing insufficient cash flows to meet required payments on debt and working capital requirements, which could have an impact on operations. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-jumps-500-points-nifty-above-15200-banking-metal-stocks-shine/articleshow/81460616.cms">Sensex jumps 500 points, Nifty above 15,200 — banking, metal stocks shine</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-jumps-500-points-nifty-above-15200-banking-metal-stocks-shine/articleshow/81460616.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/kamala-harris-will-also-participate-in-the-first-quad-summit-with-joe-biden-and-narendra-modi/articleshow/81460216.cms">Kamala Harris will also participate in the first Quad summit with Joe Biden and Narendra Modi</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/kamala-harris-will-also-participate-in-the-first-quad-summit-with-joe-biden-and-narendra-modi/articleshow/81460216.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/these-are-the-top-five-cars-with-the-highest-waiting-period-in-india/slidelist/81459899.cms">These are the top five cars with the highest waiting period in India</a>

The ₹760-crore Anupam Rasayan IPO has received a mixed response from brokerages — here's what works for it and what doesn't

When Delhi-based Shyam Sundar was hospitalised this year, his wife received several calls from the relationship manager of his <keyword id="45252" type="POSITION" weightage="40" keywordseo="stock-broker">stock broker</keyword>. He wasn’t calling to ask how her husband was doing, but for permission to transact in the futures and options (F&amp;O) segment on Sundar’s behalf. Though she told him to wait till her husband had recovered, the relationship manager went ahead and executed the transactions. When Sundar got home from hospital, he discovered that the unauthorised transactions had led to a loss for him. 
 This horror story has a somewhat happy ending. Sundar complained to the broking house, but they claimed he had authorised the transactions. An adamant Sundar demanded proof and threatened to complain to the Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="40" keywordseo="sebi">Sebi</keyword>). That’s when the broking house gave in and made good the loss he had incurred due to the rogue deals. 
 Sundar won because he had an airtight case. The <keyword id="49221" type="POSITION" weightage="80" keywordseo="Broker">broker</keyword> had no evidence that the deals had been authorised. Sebi rules make it mandatory for brokers to maintain records of telephone calls with clients. However, not all investors are so lucky. Brokers manage to get away by exploiting loopholes in the law. They are able to do so because few investors are aware of the rules or their rights. In our cover story this week, we look at the tricks that brokers deploy to take investors for a ride, and how you can avoid falling into these traps. 
 
DON’T SIGN AWAY YOUR RIGHTS 
 
The first pitfall comes at the time of opening a trading account with a broker. You are given a lengthy application form and a voluminous agreement booklet with clauses in small print. Very few investors have the patience to go through the fine print or the ability to decipher the legalese. The relationship manager helpfully puts crosses at the places you need to sign on the agreement. Do so without reading the clauses and you could be headed for disaster. 
 
What should you do? 
 Take time to go through the form and the agreement. In particular, pay attention to the power of <keyword id="46551" type="POSITION" weightage="40" keywordseo="attorney">attorney</keyword> (PoA) section. The PoA allows the broker to transact on your behalf. When you sign on the dotted line on the PoA pages, you basically sign your rights away. In 2010, Sebi issued new guidelines for PoA to intermediaries following large-scale complaints of misuse. 
 These new rules curtailed some of the actions that a broker could take on your behalf. Even so, a broker can transfer shares sold by you to the stock exchange, pledge <keyword id="6354298" type="ORGANIZATION" weightage="40" keywordseo="stocks">stocks</keyword> to meet your margin requirements, and apply for <keyword id="6357979" type="ORGANIZATION" weightage="40" keywordseo="mutual-funds">mutual funds</keyword>, IPOs, rights, and offer of shares based on your instructions. He can also transfer funds from your bank account for your settlement obligations and margin requirements, as well as recover dues of your trading activity or other charges. 
 Some investors blindly sign on the form with a brokerage firm and give PoA for moving funds from their bank accounts, whenever required. They do so because it is very convenient. When they place orders on phone, the money automatically moves from their <keyword id="25450" type="UNKNOWN" weightage="40" keywordseo="savings">savings</keyword> accounts to their trading accounts. However, this convenience can cost them dearly if their brokerage firm executes unauthorised trades from their accounts. Ideally, the investor should transfer money from his savings account to the brokerage account whenever needed. 
 
The broker cannot execute trades without the client’s consent or transfer funds from his bank account to conduct transactions with another broker. He cannot also transfer stocks for offmarket trades or merge the balance from other accounts to nullify debit in any other trading account. 
 
DON’T CHURN AND BURN 
 
Once you sign up as a customer, the stock broker will start bombarding you with phone calls, stock recommendations and SMSes, all of which will urge you to buy this stock or sell that one. The tempo rises when the markets are on the upswing. “If you don’t buy now, you could miss out on a multi-bagger opportunity,” your broker will tell you. 
 
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Before you fall for the bait, remember that the broker makes money every time you transact. His goal is to get you to buy and sell at a furious pace. When you do so too often, it’s certain that your costs will go up. What is not so certain is whether you will make profits. However, your broker may not care. Whether you make or lose money, he will earn his brokerage fee. 
 
What should you do? 
 When you buy a mutual fund, your money is invested across a basket of well-chosen stocks. You can be sure the <keyword id="109711" type="POSITION" weightage="40" keywordseo="Fund-manager">fund manager</keyword> and his team have researched the stocks threadbare before including them in the portfolio. Investing on the basis of tips from your broker is a different ball game. The risk is considerably higher and avoidable. Do not blindly accept the broker’s recommendations. Instead, for each suggestion, conduct your own checks. Are the company’s fundamentals sound? Is the valuation attractive? 
 
Similarly, when the broker recommends a sale, find out whether the company’s fundamentals have been irreparably damaged. Or has the stock become over-valued? Don’t let your broker force you to take buy and sell decisions. 
 It’s often said that if your stock portfolio can beat a mutual fund or the broader market, you are in the wrong profession. Check the returns from your stock investment. “If, after a year or so, you find that your direct investment portfolio has underperformed a broader index, such as the <keyword id="6484188" type="CITY" weightage="40" keywordseo="Sensex">Sensex</keyword> or the <keyword id="6354813" type="COMPANY" weightage="40" keywordseo="nifty">Nifty</keyword>, quit direct investing and put your money in actively managed funds or low-cost index funds,” suggests Vishal Dhawan, head of Mumbaibased <keyword id="25456" type="ORGANIZATION" weightage="40" keywordseo="financial-planning">financial planning</keyword> firm <keyword id="1978973" type="COMPANY" weightage="40" keywordseo="Plan-Ahead-Wealth">Plan Ahead Wealth</keyword> Advisors. 
 
DON’T BE LURED INTO THE F&amp;O TRAP 
 <keyword id="6358963" type="PERSON" weightage="40" keywordseo="Warren-Buffett">Warren Buffett</keyword> calls them the financial weapons of mass destruction. Though derivatives have their uses, these leveraged instruments can become very dangerous in the hands of retail investors. Still, the F&amp;O segment has a very high retail participation. This is also the area where the maximum cases of unauthorised trading take place. 
 
It’s easy to lure clients into this financial equivalent of a minefield. Relationship managers of brokerage houses tell stories of how they have made fabulous sums of money for clients by trading in F&amp;O. Customers often give consent to the relationship manager to trade on their behalf. More often than not, losses follow and the customer is left holding the can. 
 
What should you do? 
 
Derivatives are essentially meant for hedging and should have no place in the small investor’s portfolio. Nip the problem in the bud and don’t opt for trading in the derivative segment when you fill up the account opening form. Says Kunal Pawaskar, head of Capital Orbit, a Mumbai-based investor education firm: “Novice investors who don’t understand derivatives should not opt for this segment at all.” 
 
If you have already signed up for investing in the F&amp;O segment, avoid the temptation to trade in it. While you can indeed make lots of money in this space, you can also incur steep losses. Don’t get swayed by the relationship manager’s promises to earn big money. Under no circumstance should you give him the authorisation to trade in F&amp;Os on your behalf. Keep a close eye on all the SMSes and e-mails from your broker (alerts to customers after every transaction have become mandatory). 
 
Besides the brokerage commissions, another source from which brokers make money is by getting you to engage in margin trading. Under this arrangement, the broker lends you money to trade against the stocks lying in your account. Like F&amp;O, margin trading is also a leveraged position and should be avoided by retail investors. If the stock drops, you lose on two counts: on the value and the interest that you will have to pay. 
 
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DON’T BELIEVE ALL BROKERAGE REPORTS 
 Brokerage houses regularly come out with reports on stocks. Before you base your decision on these reports, keep in mind that the <keyword id="6354241" type="COMPANY" weightage="40" keywordseo="Financial-Services">financial services</keyword> industry is facing a crunch. With commission rates on the decline, most brokerage firms are not making much money from this source. The larger slice of their earnings comes from <keyword id="48051" type="ORGANIZATION" weightage="40" keywordseo="investment-banking">investment banking</keyword>: helping companies raise capital through public issues of shares and bonds. A firm that wants to get the investment banking mandate from a company would hardly issue a negative report on it. Not surprisingly, the number of ‘buy’ reports exceeds ‘sell’ reports. 
 
What should you do? 
 
Should you then rely on brokerage house reports? Yes, but with a few caveats. Gathering information on a company is difficult. You may read its annual reports and track reports on it in the business media. Nonetheless, you may miss out on crucial information because the management only reveals such information to analysts. 
 
Read brokerage reports, but not from just one brokerage house. See what different analysts have to say about a company’s fundamentals. When it comes to assessment of forward earnings, valuation and target price, make your own judgement. 
 
Dhawan says one should not consider only the firm’s growth prospects highlighted in the report. “Pay equal attention to the risk factors,” he adds. Many reports also carry a history of past recommendations. See how you would have fared if you had acted upon them. 
 
Do not blindly follow the broking house’s buy and sell calls. In fact, if you decide to be a buyand-hold investor, who holds stocks for at least three years, you will cut out much of the noise that emanates from brokerages. 
 <keyword id="109296" type="POSITION" weightage="40" keywordseo="Investment-Analyst">Investment analyst</keyword> R Balakrishnan says your only chance of getting unbiased reports is from independent research firms that make their money by selling their research reports and don’t have investment banking arms. 
 
“There are very few such firms because research is costly and most investors are reluctant to pay for it,” he adds. Canadabased Veritas is one example of an independent research firm. 
 
ENSURE TRADING AND BROKING ARE SEPARATE 
 
Brokerage houses employ traders, who use the firm’s capital to trade in the stock markets. This is called proprietary trading. Firms also trade on their clients’ behalf. Typically, brokerage firms are required to maintain separate books for their proprietary trades and the ones they conduct on their clients’ behalf. Sometimes, however, the firewall breaks down. Traders use clients’ money to trade. When they sustain losses, not only does their firm suffer, but the clients, who never authorised these trades, also take a hit. 
 
What should you do? 
 
You may make enquiries at the brokerage house. In all likelihood, the firm will fob you off with replies to the effect that the separation of proprietary trading and client trading is treated as sacrosanct at their firm. 
 
A better way of avoiding falling prey to this misuse is not to keep excess money in your brokerage account. Transfer money from your savings account to your brokerage account just before a purchase. If you have sold stocks and don’t intend to use the money to buy another set, don’t leave the money lying in the account. Have it transferred to your savings account. 
 
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Guarding against misuse of your trading account 
 
Step 1: You place order to buy or sell stocks. 
 
Step 2: Order executed. 
 
Step 3: Stocks or cash credited to trading account. (Could be misused by broker for unauthorised trading.) 
 
Step 4: Transfer from trading account to demat or bank account. 
 
How to seek redressal 
 Stock exchanges offer a grievance redressal mechanism. An Investment Protection Committee looks into complaints from investors, and if the charges are proved correct, investors are reimbursed from an <keyword id="1975059" type="UNKNOWN" weightage="40" keywordseo="Investment-Protection-Fund">Investment Protection Fund</keyword>. There may also be disgorging of profits. 
 
However, you need to be aware of a few things. “Investors often lose out because ignorance is not really protected under the law. If you have signed off your rights, and subsequently get cheated, you may not get protection. Only if you can establish that there has been a fraud or malpractice will you get protection,” says Uma Shashikant, managing director, Centre for Investment Education and Learning. 
 
Find out who the grievance redressal authority at the stock exchange is. Meet the person and explain your case. Submit all the documentary evidence you have. If he thinks that prima facie there is a case, he will admit it. 
 
On the flip side, the adjudication and grievance redressal process can be long drawn. If the stock exchange does not give you redressal, you can escalate the matter to Sebi. 
 
Do you have a complaint against a broker? 
 
Visit Sebi’s Scores (Sebi Complaints Redress System) website to file your complaint online. 
 
1) Apprise your broker of your grievance. 
 
2) If the response is not satisfactory, tell him you will complain to Sebi. 
 
3) The Sebi threat usually works. If he doesn’t agree, lodge a complaint online on the Scores at www. scores.gov.in. 
 
4) Scan the relevant documents and upload them on this website. 
 
5) Sebi forwards your complaint to the concerned brokerage firm. 
 
6) The firm must reply to your complaint within 30 days. 
 
7) You can track the progress on your complaint on the website (click on ‘View Complaint Status’ button on the main page). 
 8) If the brokerage firm does not reply to your complaint within 30 days, the matter gets passed on to a <keyword id="1978974" type="POSITION" weightage="40" keywordseo="dealing-officer">dealing officer</keyword> at Sebi. 
 
9) Scores also has a helpline: 18002667575.

Is your stock broker cheating you? Here's how you can avoid being duped

<keyword id="18635" type="General" weightage="100" keywordseo="amazon" source="Orion">Amazon</keyword> has started notifying its employees affected by its new round of layoffs, as a part of its plan to reduce its headcount by around 18,000 people, the media reported. It however, remains unclear as to how many employees are being affected in this particular round, but the company already laid off 2,300 employees in Washington of which the majority worked in Seattle, where one of the company's headquarters is located, reports The Verge. Amazon had started its first round of layoffs last November. At the time, there were reports that around 10,000 people would be affected, including members of its hardware and services, human resources, and retail teams. Earlier this month, Amazon confirmed the layoffs and their massive scale, saying that including the ones from last year, Wednesday's round, and potential additional cuts in 2023, they would affect 18,000 employees overall. A memo from CEO Andy Jassy posted on the company's website announced that impacted employees would be notified starting on Wednesday. Jassy said in a statement that they were not done with the annual planning process as earlier mentioned, and "I expected there would be more role reductions in early 2023". As Amazon announced to lay off 18,000 employees globally, including nearly 1,000 in India, reports have surfaced that some of the impacted employees broke down and were left "crying in the office" when they heard they have been asked to go. On Grapevine, a community app for Indian professionals, an Amazon India employee posted sad scenes at offices, including people crying after the announcement of layoffs. Amazon earlier admitted it was consolidating "some teams and programmes" in its hardware and services division, and Jassy had told workers that there would be "more role reductions as leaders continue to make adjustments" in 2023. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/ril-q3-to-be-a-mixed-bag-muted-growth-in-o2c-robust-retail-and-jio-performance/articleshow/97094061.cms">RIL’s Q3 to be a mixed bag: Muted growth seen in O2C, robust performance projected for retail and Jio</a> <a href="https://www.businessinsider.in/stock-market/news/hul-indusind-bank-adani-enterprises-among-stocks-in-focus/articleshow/97115029.cms">Sensex, Nifty50 likely to open in the red amid negative global cues: HUL, IndusInd Bank, Adani Enterprises among stocks in focus</a> <a href="https://www.businessinsider.in/finance/banks/news/indusind-bank-q3-net-profit-grows-69-yoy-to-1959-crore-margin-and-asset-quality-see-improvements/articleshow/97093861.cms">IndusInd Bank Q3 net profit grows 69% YoY to ₹1,959 crore, margin and asset quality see improvements</a>

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