#bonds and debentures

[jiraafinvestment1]

Union Budget 2023: Implications for MLD Investors 

Are there any alternatives to MLDs? 

This article will provide a brief overview of MLDs, their tax implications, and how the Union Budget of 2023-2024 will impact them. 

Let us begin by understanding MLDs,

What are MLDs?

The full form of MLD is Market-Linked Debentures. Market-linked debentures or MLDs are debt securities whose returns are based on the indices they are linked with. These indices can be Nifty 50, Sensex, Government securities, gold index funds, etc. Their value is tied to the performance of the indices. 

MLDs are mostly listed and regulated by SEBI. 

The tenure of MLDs typically is between 12-36 months. 

Before Jan 2023, the minimum face value of MLDs was Rs 10 lakhs. But an amendment made in Jan 2023 by SEBI brought a reduction of the face value of MLDs to Rs 1 Lakh per unit, making it more affordable amongst the masses. 

In general, issuers of MLDs define performance criteria tied to an underlying asset/index in a such way that it provides adequate downsize immunity for smaller market fluctuations thereby giving more protection to the underlying investment.  

  

What has changed with MLDs – Union Budget 2023 – 2024? 

 Pre Budget 2023

A listed MLD held for more than 12 months was taxed as LTCG (10%).  

Union Budget Announcement 

In the budget 2023-2024, Finance Minister Nirmala Sitharaman announced that, from 1st April 2023, the tax implication for MLDs will be the same as any other debt. The preferential taxation to these listed debentures will be scrapped. 

Also, before the budget 2023-2024, listed debentures available under section 193 of the Income Tax Act were exempted from TDS. However, the amendment has also removed this dispensation. 

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[priyashareindia9]

The term debenture comes from the Latin word ‘debentur’, which means borrow. Debentures are one of the types of bonds that government entities or corporations use to raise capital. They are one of the most popular debt instruments, along with bonds. 

[finwisor]

Beginner investors are advised to start with bonds and gradually explore debenture opportunities. When investing in either loan instrument, it is crucial to take important elements into account such as interest rates, payback terms, and other pertinent possibilities.

[pallavirajput74]

Pros and Cons of Market-Linked Debentures

When it comes to growing your money, the world of finance offers a variety of avenues to explore. One such option that’s been making waves in India is Market Linked Debentures, also known as MLD bonds.

[rexsecuritieslaw]

Justin Singletary-Former Westpark Capital Broker- Discloses Customer Dispute Involving GWWG L-Bonds - San Clemente, CA

Justin Singletary Investigation June 2023 – San Clemente, CA According to publicly available records  Justin Singletary ,  a  stockbroker previously employed by Westpark Capital,  discloses a  pending customer dispute involving GWG L-Bonds. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and…

[thefixedincome]

Bonds Vs Non-convertible Debentures:- Everything you need to know

Non-convertible debentures and bonds are both types of fixed-income securities, and many times both words are used interchangeably though they are both distinct fixed-income investment options. In this article, we will be understanding fixed-income instruments like bonds and non-convertible debentures and discussing their advantages and disadvantages. Contact us to know everything about bonds vs non-convertible debentures

[allthebrazilianpolitics]

Credit fundraising slows down in Brazil

Trend driven by closure of contributions, particularly in more liquid portfolios

After seven consecutive months of record-breaking net funding, corporate debt funds saw their first slowdown of the year. A report from Banco ABC Brasil’s research department shows that in September, the volume of fundraising dropped from the previous range of R$40 billion to R$50 billion per month to just R$17 billion. According to fund managers, the deceleration is primarily due to large funds—especially those with high liquidity, allowing same-day or next-day redemptions—that had been attracting most of the investments in the category since the beginning of the year. These funds are now closing to new contributions, as surging demand has driven risk premiums on bonds down significantly, making it harder to allocate resources effectively.

A survey conducted by Valor on the Brazilian Securities and Exchange Commission (CVM) website revealed that between September 5 and October 14, Santander closed five funds to new funding, three of which were corporate debt funds, with the remaining two focused on infrastructure. The two incentivized debenture funds reopened briefly but soon closed again. During the same period, Itaú Asset closed about 15 fixed-income funds, three of which were dedicated exclusively to corporate debt, while reopening three others, two of which were corporate debt funds. Caixa closed a corporate debt fund, and BTG Pactual shut down an infrastructure fund. Among independent players, SulAmérica also closed a corporate debt fund.

In the case of infrastructure funds, halting new contributions had already become a common practice since May, when risk premiums plummeted, and the supply of new issues failed to meet demand. Sparta, for instance, was one of the first to adopt this strategy, and many of its products have remained closed in recent months. However, closures within corporate debt were sporadic and minimal until September and October, when they became more widespread.

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[haku2naomi420]

• 社債 「しゃさい」 - corporate bond, corporate debenture

• 国債 「こくさい」 - national debt, national securities, government bonds, government securities

• 債権 「さいけん」 - credit, claim

• 債務 「さいむ」 - debt, liabilities, obligation to a person or party (usually legal or contractual)

• 公債 「こうさい」 - public debt, public bond, government securities

• 負債 「ふさい」 - debt, liabilities

• 募債 「ぼさい」 - raising of a loan, loan floatation

• 債券 「さいけん」 - bond, debenture

[samarthcapital]

How Can NRIs Invest in India With NRI Services?

Non-resident Indians (NRIs) hold a unique position in the Indian economy. They are not only a valuable source of foreign exchange, but also a potential force driving the country's growth story. Navigating investments in India can be a bit confusing for NRIs. Understanding where and how to invest amidst regulations, tax implications, and diverse options can feel tricky, which is why, NRIs willing to invest in India can rely on NRI services, which make investing easier as per the rules set by RBI and SEBI under the Foreign Exchange Management Act (FEMA).

Where Can NRIs Invest in India?

NRI services encompass a range of financial solutions tailored specifically for non-resident Indians seeking to invest, manage their wealth, and connect with their homeland. It is vital to understand where NRIs can invest in India.

Equities

NRIs can invest directly in Indian stocks through the Portfolio Investment Scheme (PIS) by the Reserve Bank of India (RBI).

Mutual Funds

Investing in Mutual Funds offers various choices like Equity, Balanced, Bond, and Liquid Funds. Unlike direct equities, NRIs investing in Mutual Funds do not require PIS permissions from RBI. However, some restrictions may apply to NRIs from the US and Canada due to reporting regulations.

Government Securities

NRIs can invest in government securities on NRE and NRO basis, each with different tax implications based on the type of investment.

Fixed Deposits

Investment opportunities in fixed deposits are available for NRIs through Banks or Non-Banking Financial Companies (NBFCs), each with its tax implications based on the NRE (Non-Resident External) or NRO (Non-Resident Ordinary) basis. NRIs can also invest in Foreign Currency Non-Resident (FCNR) fixed deposits.

Real Estate

NRIs can invest in real estate except for certain property types like agricultural land, farmland, or plantations.

National Pension Scheme (NPS)

NPS, a retirement savings plan, offers tax benefits. Contributions can be made from NRE or NRO accounts, but the pension must be received in India.

Portfolio Investment Scheme (PIS)

PIS allows NRIs to trade in shares and debentures through a designated bank account. It helps regulate NRI holdings in Indian companies, preventing breaches of set limits.

How Experts Simplify NRI Services?

Experts like Samarth Capital simplify the investment process by providing guidance, ensuring NRIs make informed decisions aligned with their goals. Here’s how they make investing easy for NRIs.

Helping open NRE / NRO savings and PIS bank accounts.

Setting up brokerage and demat accounts for trade.

Monitoring your portfolio regularly.

Engaging tax consultants for compliance.

Understanding Taxes and Rules

For NRIs, it's crucial to understand tax implications in India and their country of residence. Compliance with the Double Tax Avoidance Agreement (DTAA) and filing taxes in India if taxable income exceeds the exemption limit is important.

Wrapping Up

Investing in India as an NRI offers diverse opportunities. With guidance and a grasp of regulations, NRIs can navigate this landscape effectively and make the most of available avenues. Samarth Capital, not only facilitates NRI investments but also helps foreigners invest in India with FPI services. So, whether you're an NRI or a foreigner, investment in India isn't a far-fetched dream anymore.

[jiraafinvestment1]

What Is Commercial Paper – The Beginner’s Guide

What is commercial paper?

Commercial papers are debt instruments issued by corporations to finance their short-term liquidity needs. These liquidity needs can be for funding working capital, enabling operations or financing inventory, or meeting payroll expenses. Off late, it is gaining in popularity as a fixed-income investment in India.

Why do companies issue commercial papers instead of borrowing from banks?

Companies issue commercial papers as a form of short-term financing because it is a source of diversified and flexible fundraising from individual investors.

Who can issue commercial papers?

Banks, NBFCs, financial institutions, foreign corporations, and other such entities issue commercial papers. The issuer entities generally undergo the due diligence of credit ratings agencies like CRISIL (Credit Rating Information Services of India Ltd.), ICRA (Investment Information and Credit Rating Agency of India Ltd.), and CARE (Credit Analysis and Research Ltd.) to evaluate their credibility and financial health.

What is the general tenure of commercial papers?

Commercial papers are debt tools with tenure as short as 7 days but not more than one year.

Are commercial papers secured?

Commercial papers are unsecured debt instruments with a promise of repayment on the maturity date. The issuer of the commercial paper promises to pay the purchaser a specified amount in cash at a future date without any collateral or assets backing the payment.

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[humfaujii]

Retirement Planning for Indian Armed Forces Officers: Securing Your Future

Transitioning from a structured life in the armed forces to a financially independent future is a critical step for officers. Retirement planning ensures that you and your family enjoy a secure, comfortable post-retirement life, free from financial worry.

Building the Foundation: Early Retirement Planning

The key to long-term financial security lies in starting early. Here's how you can lay a strong foundation:

Savings Accounts (10-15%): Keep a portion of your funds in liquid accounts for emergencies. Avoid excessive funds in low-yield options.

Equity Investments (50%): Allocate long-term funds to the equity market for higher returns. Diversify your portfolio to minimize risks.

Debt Instruments (25%): Bonds or debt mutual funds offer steady income, which can support dependents.

Gold (5%): Protect your wealth from currency risks by investing in gold.

Refining Financial Goals: Mid-Career Adjustments

By mid-career, refine your financial goals, focusing on building a robust corpus for life’s major expenses:

Equity (50%): Continue leveraging equity investments while monitoring market trends.

Debt Instruments (25%): Secure a stable income stream from bonds and debt funds.

Gold (5%): Keep gold investments as a safeguard for wealth.

Post-Retirement Planning: Sustaining Your Lifestyle

Once you retire, adjust your finances to sustain your lifestyle:

Savings Accounts (20%): Keep funds easily accessible for emergencies.

Equity (20-30%): Moderate equity investments to balance risk and growth.

Debt Instruments (40-50%): Secure steady income through bonds and debentures.

Gold (5%): Continue safeguarding your wealth with gold.

A well-structured retirement plan not only secures your future but also allows you to pursue personal passions like travel or social work. Enjoy the peace of mind that comes with financial security and a fulfilling retirement lifestyle.

[muzan21]

Debentures: High Yield Fixed Income Investments

Debentures are unsecured debt instruments that offer attractive returns. Unlike bonds, debentures rely on the issuer's creditworthiness. This blog explores the types of debentures, including convertible and non convertible, and explains why they are an excellent choice for investors seeking higher yields. Learn how to evaluate debentures and integrate them into your investment strategy.

[pallavirajput74]

Non-Convertible Debentures: A Safe and Reliable Investment

[rexsecuritieslaw]

Andrew Keefer- IFP Securities Broker- Has $500K Pending Customer Dispute Involving GWG Bonds-Orlando, FL

Andrew Keefer Investigation June 2023 – Orlando, FL According to publicly available records  Andrew J. Keefer ,  a broker with Independent Financial Partners/IFP Securities,  discloses a $500,000 pending customer dispute  The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to…

[forblogmostly]

Vipul Limited Announces Board Meeting to Explore Fundraising Strategies

Vipul Limited, a prominent name in real estate and infrastructure development, has announced a significant development in its corporate journey. The company, with its registered office at Maviya Nagar, New Delhi, has scheduled a meeting of its Board of Directors on December 10, 2024. This meeting is expected to shape the company's financial strategies for the near future.

The agenda for the meeting focuses on exploring avenues for raising funds, an initiative poised to enhance the company's capital structure and fuel its growth aspirations. Vipul Limited is considering various options, including the issuance of equity shares or equity-linked instruments. Among these instruments are convertible preference shares, bonds, foreign currency convertible bonds, and non-convertible debt instruments. The potential fundraising options also extend to warrants, convertible debentures, and other equity-based instruments.

The company is deliberating several modes of fundraising. These include private placement, qualified institutional placement (QIP), further public issuance of equity, rights issues, preferential allotments, or any other method permissible under applicable laws. Any decision reached during the board meeting will be subject to approval from the company’s shareholders and the requisite statutory and regulatory permissions.

Vipul Limited's decision to consider such diverse financial mechanisms demonstrates its commitment to staying flexible and adaptive in a dynamic market environment. This strategic move aligns with the company's broader vision of leveraging financial resources to achieve sustainable growth and fortify its position within the competitive landscape of real estate and infrastructure development.

In compliance with the Securities and Exchange Board of India (SEBI) regulations, Vipul Limited has also announced a temporary closure of its trading window. From December 4, 2024, to December 12, 2024, all designated persons, including insiders, will be prohibited from trading in the company's securities. This precautionary measure ensures adherence to the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the company's own Code of Conduct for the Prevention of Insider Trading. The trading window will reopen on December 13, 2024, restoring regular trading activities for stakeholders.

Vipul Limited’s commitment to transparency and regulatory compliance reflects its dedication to maintaining investor trust while pursuing innovative financial strategies. The outcomes of the upcoming board meeting are anticipated to have a substantial impact on the company’s trajectory, underscoring its intent to remain agile and forward-thinking in a competitive business environment.