What sensational did you miss this week?
• The government has allocated 39,600 MW of domestic solar PV module manufacturing capacity to 11 companies under the PLI scheme.
What can you learn from this?
• The capacity allocation to 11 companies have to be found out and Fundamental Analysis is to be carried out on them. Those who stand out, need to assessed technically on charts for verification and identification of the right opportunity to enter.
Upcoming IPOs & Corporate Actions:
• Tata Technologies IPO: Check complete info here!
• Avalon Tech IPO will open for subscription on 3rd Apr & closes on 6th Apr 2023. It is a leading fully integrated Electronic Manufacturing Services (“EMS”) company having end-to-end capabilities in delivering box-build solutions in India, focusing on high-value precision engineered products. The company is one of the leaders in the segment in India in terms of revenue in Fiscal 2022. The objective of the IPO is prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and one of the material subsidiaries, i.e. Avalon Technology and Services Private Limited (ATSPL), funding the working capital requirements of the company & general corporate purposes.
• L&T: L&T Finance Holdings has received approval from RBI for the merger of its subsidiaries – L&T Finance, L&T Infra Credit, and L&T Mutual Fund Trustee with itself.
• JG Chemicals has received approval from SEBI for an IPO.
Video in Focus!
Market Outlook this coming week!
Nifty50 : This Week
Not To Miss Updates!!!
• The deadline to fill the nominee details for existing trading, demat account & MF holders to Sep 30, 2023 from Mar 31, 2023 by SEBI.
• NSE has rolled back the 6% increase in transaction charges on equity cash and derivatives segment, w.e.f. 1st Apr 2023.
• NPCI has introduced interchange charges on UPI on wallet transactions. Customers don’t have to pay anything extra. The costs will be paid by merchants like petrol pumps and supermarkets.
• The date for linking PAN-Aadhaar has been extended by the government to June 30, 2023. Those who link it now will have to pay a fine of Rs 1,000. The fine was levied after last year’s deadline of June 30, 2022. If you fail to link your PAN and Aadhaar after June 30, 2023, you will not be able to receive your income tax refunds, TDS and TCS will also be deducted at a higher rate, among other penalties.
Focused Story of the Week: Hindenburg comes up with a new report!
Hindenburg’s latest target is “Block Inc”. Block is an American mobile payments company, founded by Twitter co-founder Jack Dorsey.
Block is the developer of Cash App; Cash App is a mobile payment service available in the United States and the United Kingdom that allows users to transfer money to one another using a mobile phone app.
Hindenburg alleges that the firm overstated its user accounts, understated its customer acquisition costs, and allowed criminal activity. According to the report that 40-75% of accounts were fake, involved in fraud, or were additional accounts linked to a single individual.
The name “Elon Musk” also appears on dozens of obvious fake Cash App accounts.
This happens because the company continues to allow people to set up its most basic account by providing only a phone number or email and a zip code. No bank account is required.
How it impacts regular users?
One of the pastors at Brown Missionary Church lost hundreds of dollars to phony Cash App accounts.
In June 2022, the pastor discovered that he was not receiving money sent by parishioners because they were directing the money to scam Cash App accounts set up to impersonate his account.
Ordered fake cash app card
Hindenburg Research also ordered a Cash App Card to check if Block’s compliance would take issue. They called for card by the name of “Donald Trump” and they could obtain that card in reality.
You Ask, We Deliver Section: Financial Bill 2023
Requested by: Arun
- From April 1, 2023, the indexation benefits on long-term capital gains (LTCG) on debt mutual funds will be gone. Debt MF will be taxed at income tax rates as per an individual’s income from April 1 2023.
- Securities Transaction Tax (STT) on selling options has been increased to 0.062% from 0.05%.
- STT on the sale of futures has been increased from 0.01% to 0.0125%.
- Basic exemption limit raised to Rs 3 lakh and threshold limit for total income eligible for rebate under Section 87A increased to Rs 7 lakh.
- Tax rate of 30% on any winning from online gaming.
Question of the Week #10
What is a Backstop Fund?
• Emergency Fund for companies & MF in exchange of bonds & debt securities.
• Bonds backed by govt. for companies & MF for their investment requirements.
• Emergency Fund for companies & MF for their investment requirements.
• Bonds backed by govt. for companies & MF in exchange of bonds & debt securities.
Answer to Week#9 was Option c: 25% should be the minimum public participation (in share %age) in a listed company in India. NSE & BSE had frozen the shares of promoter group entities of Patanjali Foods on March 15 for not meeting the minimum public shareholding norm within the stipulated deadline.
**Make sure you note your choices somewhere as we’ll covering the answers in our next issue…
Word of the week
Benefit of Indexation: Indexation helps investors to bring down taxes. It calculates the taxes after accounting for inflation. In a high inflation environment, indexation brings down the taxes significantly.
Indexation is an advantage in which if your fund generates 8% return over 3 years and inflation in the same period was 6%, you pay a 20% tax on the difference 8-6 = 2%. So a total tax of 2*20% = 0.4% making your post tax at 8-0.4 = 7.6%.
In conclusion, if you want to succeed in the stock market, it’s essential to stay informed, develop your skills and knowledge, and take advantage of the many educational resources available to you, including stock market courses online with certificate and the best certification courses for stock market.