#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

[angfinverse]

Investing in Bonds in Ahmedabad

Bonds and Debentures

We, ANG Finverse, are experts in managing a wide range of debt instruments for our clients in Gujarat and other parts of India. Generally, if the risk appetite of an investor is low, he prefers bonds and debentures. We assure you an assured stream of returns on your investments.

Providing investment guidelines

As professionals, we have observed that investors often struggle in understanding the various guidelines for investing in various bonds and debentures. We come to the rescue. You can rely on our skills to avail of the right guidelines and instructions properly and invest, without any hassles.

Assuring returns from safe investment

We expertly help investors to put their money in bonds and debentures with assured returns. We take care of the technical details and ensure the investment is safe.

Complying with market norms

We are experts in complying with the standard market norms of the financial domains. As professionals, it is one of our main priorities to operate within the regulatory framework, following government instructions. Our investment solutions are tested and certified. We consistently create lucrative opportunities for investors. They receive considerable tax benefits in several cases.

Addressing your investment queries

As veterans in the industry, we leave no stone unturned in addressing your investment queries. You get your undivided attention from one of our experienced managers. The expert pays heed to your questions and solves issues proactively. You can give us a call to know more details. We are here to serve you in the best possible way.

Article Source: ANG Finverse

[bondsindia]

Why A Nonconvertible Debenture Is The Best IPO For Private Companies

A nonconvertible debenture (NCD) is the best initial public offering (IPO) for private companies for several reasons. First, NCDs are not convertible into equity shares, so they do not dilute the ownership of existing shareholders. Second, NCDs are unsecured, so they do not require collateral. Third, NCDs have a fixed interest rate, so they offer predictable cash flows to investors. Finally, NCDs have a longer maturity than most other debt instruments, so they provide private companies with long-term financing.

A non-convertible debenture (NCD) is a type of debt instrument that does not have the option to be converted into equity shares. NCDs are typically issued by companies to raise capital, and are often listed on stock exchanges. Interest on NCDs is generally paid out at fixed intervals, and the principal amount is repaid at maturity.

NCDs have become increasingly popular in recent years as a means for corporates to raise capital. The main advantage of issuing NCDs is that it allows companies to tap into new sources of funding, without having to dilute their equity shareholding. Additionally, interest payments on NCDs are typically tax-deductible, making them an attractive investment for many investors.

There are some disadvantages to issuing NCDs as well. Firstly, they typically have a longer tenure than other debt instruments, which can increase the risk for the issuer. Secondly, interest payments on NCDs are not always predictable, as they may be linked to market rates. This can make it difficult for issuers to budget for interest payments in advance. Finally, NCDs typically have higher coupon rates than other debt instruments, which can increase the cost of borrowing for the issuer.

New IPO Click Now

Overall, NCDs can be a useful tool for corporates looking to raise capital. However, it is important to consider the risks and costs associated with this type of financing before making any decisions.

[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.

Continue reading.

[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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[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.

[pesoftsblog]

Retirement Planning for Indian Armed Forces Officers

Retirement is a significant milestone in one’s life, especially for officers of the Indian Armed Forces. It marks the transition from active service to a well-deserved phase of rest and enjoyment. At Humfauji, we offer specialized retirement planning services tailored exclusively for officers in the armed forces. We understand that every individual's path to retirement is unique, and we are committed to ensuring your retirement planning aligns perfectly with your goals and lifestyle. Whether you're just starting out or nearing retirement, our tailored solutions will help you achieve financial security and peace of mind.

For the Carefree Individual (Under 30 Years)

In your twenties, the focus is on building wealth and establishing a strong financial foundation. Here’s how you can strategically plan your investments:

Equities (50-70%): Invest a significant portion in equities to leverage potential growth. Your long-term financial goals will guide this allocation, adjusting as needed based on your evolving circumstances.

Fixed Income (10-20%): Keep some funds in fixed-income investments to cover short-term needs and emergencies.

Gold (5%): Allocate a small percentage to gold to hedge against currency fluctuations and diversify your investments.

Insurance: Ensure you have adequate insurance coverage to protect against unforeseen events and secure your investments.

Projected Future Value

Monthly Expense: ₹30,000

Rate of Inflation: 7%

Years to Retirement: 25

Future Value: ₹1.63 Lakhs

Start planning now to ensure a secure and comfortable future!

For Married Individuals with Two Children (30-45 Years)

Balancing retirement planning with family needs and children's education is crucial during this phase. Here’s how you can structure your investments:

Equities (50%): Continue investing in equities for long-term growth. Avoid selling in a downturn to maintain financial stability.

Debt Mutual Funds/Bonds (25%): Invest in these to provide a steady income stream and financial support for your family.

Gold (5%): Keep a portion in gold to safeguard against market volatility and currency depreciation.

Planning wisely now will benefit both your retirement and your children's future, including their education and initial assets.

Aggressive Retirement Corpus Building (45-55 Years)

At this stage, you’re in a prime position to build your retirement corpus. You have likely addressed your children's higher education needs, so it’s time to focus on:

Equities (50%): Maintain a significant investment in equities for growth while avoiding panic selling.

Debentures and Bonds (25%): Utilize these for stable returns to support your lifestyle as retirement approaches.

Gold (5%): Continue to invest in gold for diversification and protection against currency risks.

With disciplined planning, you’re well on your way to a fulfilling retirement.

Planning in Later Stages of Service (36-50 Years)

As you approach retirement, it’s important to adjust your strategy to ensure a smooth transition:

Savings Accounts (15%): Maintain a small percentage in savings for liquidity.

Equities (40%): Focus on long-term investments but be prepared to adjust based on market conditions.

Debentures and Bonds (35%): Ensure steady income to manage your future expenses.

Gold (10%): Increase your investment in gold for additional security.

Retirement and Beyond (55 Years and Above)

Having built a solid retirement foundation, you can now focus on enjoying your retirement:

Savings Accounts (20%): Keep a buffer for emergencies.

Equities (20-30%): Invest prudently to sustain your lifestyle without needing to sell in a downturn.

Debentures and Bonds (40-50%): These will provide regular income and help manage your expenses.

Gold (5%): Retain some gold as a hedge against economic instability.

Enjoy the rewards of your diligent planning and take time to savor your retirement years.

Connect with Us

Ready to tailor a retirement plan that meets your unique needs? Our experts are here to guide you every step of the way. Contact us today to start your journey towards a secure and fulfilling retirement. With our personalized approach to retirement planning for Indian Armed Forces officers, you can confidently navigate the transition to this new and exciting chapter in your life.

[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…