Month: June 2021

Bitcoin drops as hashrate declines with China mining crackdown, BFSI News, ET BFSI

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Bitcoin dropped over the weekend amid a focus on Chinese mine closures and potential regulatory scrutiny.

The largest cryptocurrency fell 5.5% to $34,142 as of 10:50 a.m. Sunday in New York, dropping for a fourth time in the past five sessions. Ether, the second-biggest, declined 5.9% to $2,095.

The hashrate in China is dropping significantly as Bitcoin mines are being closed, Jonathan Cheesman, head of over-the-counter and institutional sales at crypto-derivatives exchange FTX wrote in an email Saturday, citing reports on Twitter from handle @bigmagicdao.

“Longer term most see hashrate moving out of China as positive but in the near term may have/has already resulted in inventory sales,” Cheesman said.

Cheesman also mentioned the death cross, which occurs when the 50-day moving average drops below the 200-day, but noted that “backtesting isn’t statistically significant” on the signal for Bitcoin. When the coin experienced a death cross in March 2020, for instance, that was at the start of a yearlong rally.

Cryptocurrencies have been enduring a lull recently. Bitcoin is trading at about half its record high of nearly $65,000 reached in mid-April. The market value of all cryptocurrencies is about $1.45 trillion, as measured by CoinGecko, versus a high around $2.6 trillion last month.

One of the factors cited has been concern about China clamping down on mining amid concerns about energy usage, and in the wake of deadly coal accidents.

The city of Ya’an in the southwestern region of Sichuan has promised the provincial authorities to root out all Bitcoin and Ether mining operations within one year, said a person with knowledge of the situation. According to a report in the Communist Party-backed Global Times, the closure of many Bitcoin mines in the province has resulted in more than 90% of China’s Bitcoin mining capacity being shuttered.

About 65% of the world’s Bitcoin mining took place in China as of April 2020, according to an estimate by the University of Cambridge.

In addition, Edward Moya, senior market analyst at Oanda Corp., said Bitcoin was being pressured by the sudden drop by the Titan token to nearly zero — a stablecoin that had drawn even billionaire Mark Cuban. Regulators had already been expressing concern about stablecoins, and Cuban himself encouraged further regulation of the space after the episode.

“Bitcoin tumbled as the demise over the Titan token raised the pressure of regulators to deliver more protections for the public,” Moya said in an email Friday. “Titan’s crypto crash was a surprise to many as it is a partially collateralized stablecoin. Given the risk-off environment that is hitting Wall Street, cryptocurrencies are under pressure.”



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NCUI, BFSI News, ET BFSI

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Cooperative body NCUI has welcomed the RBI’s in-principal nod to Centrum Financial Services for the takeover of PMC Bank, but said all depositors should get back their deposits without any condition. Paving the way for the takeover of crisis-ridden Punjab and Maharashtra Cooperative Bank (PMC), the Reserve Bank of India on Friday granted in-principle approval to the Centrum Financial Services to set up a small finance bank.

Centrum Financial Services was one of the applicants for the takeover of the PMC Bank.

Reacting to RBI’s in principle approval to Centrum Financial Services, NCUI President Dileep Sanghani in a statement said, “This is indeed welcome. However, it should be ensured that all the depositors should get back their deposits without any conditionality.”

However, he said it would have been better if all the big UCBs should have mobilised the funds together to revive the bank.

National Federation of Urban Cooperative Banks and Credit Societies Ltd (NAFCUB) President Jyotindra Mehta said, “This is in accordance with the wishes of the sector, and the depositors. This will no doubt boost the image of the sector. However, the culprits who committed the fraud in the bank must be punished.”

GH Amin, Chairman, Cooperative Bank of India, and Chairman, Gujarat State Cooperative Union welcomed the move. “It is a good gesture, of taking over a crisis-hit bank by a small finance bank, and reviving it. The depositors will get an assurance of getting back their deposits.”

National Federation of State Co-operative Banks Ltd (NAFSCOB) MD Bhima Subrahmanyam said, “The move is indeed appreciable. However, all the depositors should get back their deposits without any conditionality”.

Large urban cooperative banks should have taken over PMC Bank and started a small finance bank, as the PMC had an excellent image before the fraud happened, he added. Subrahmanyam is also President International Cooperative Banking Association.

On Friday, the RBI gave ”in-principle” approval to the Centrum Financial Services Limited’s offer of February 1, 2021, for the takeover of PMC Bank Ltd.

The PMC Bank had invited Expression of Interest (EoI) from eligible investors for investment/ equity participation for its reconstruction and had received four proposals.

In September 2019, the RBI had superseded the board of PMC and placed it under regulatory restrictions, including cap on withdrawals by its customers, after detection of certain financial irregularities, hiding and mis-reporting of loans given to real estate developer HDIL.

The restrictions have been extended several times since then. PMC’s exposure to HDIL was over Rs 6,500 crore or 73 per cent of its total loan book size of Rs 8,880 crore as of September 19, 2019.

Initially, the RBI had allowed depositors to withdraw Rs 1,000 which was later raised to Rs 1 lakh per account to mitigate their difficulties.

In June 2020, the RBI had extended the regulatory restrictions on the cooperative bank by another six months till December 22, 2020.

As of March 31, 2020, PMC Bank”s total deposits stood at Rs 10,727.12 crore and total advances at Rs 4,472.78 crore. Gross non-performance assets of the bank stood at Rs 3,518.89 crore at end-March, 2020.



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PMC Plan: BharatPe and CFS will collectively infuse between Rs 500-3,000 crore in SFB

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“We do not know how much amount existing PMC Bank depositors will be able to withdraw, but we want to allow them withdrawing as much as possible,” he further said.

By Ankur Mishra

Centrum Financial Services and BharatPe, will collectively infuse anywhere between Rs 500-3,000 crore capital in the small finance bank (SFB) as per requirement, according to BharatPe group president Suhail Sameer. In an interaction with FE, he said both the partners have agreed to put an equal amount in the bank which will start with Rs 500 crore capital. He also said a final call on PMC Bank depositors will be taken after the amalgamation scheme is prepared by the regulator.

“One thing was clear in our discussion with RBI that interest of depositors is supreme,” Sameer said. According to him the new owners want to allow PMC depositors to withdraw as much as possible from the bank. “We do not know how much amount existing PMC Bank depositors will be able to withdraw, but we want to allow them withdrawing as much as possible,” he further said.

Without sharing details of exact asset-liability mismatch in PMC Bank, Sameer said they have a plan in mind to tackle the same, which is yet to be approved by the regulator.

In the next 3-4 months, the focus for Centrum-BharatPe will be to make small finance bank (SFB) operational, after Reserve Bank of India (RBI) has granted in principle approval to set up SFB on Friday. Under Section 45 of the Banking Regulation Act one can only prepare a merger scheme between two banks and, therefore, the process will start only once SFB is set up. BharatPe expects to extend its existing relationship with its merchants by offering them savings and current accounts, along with banking and credit services.

“Initially high interest rates on deposits will be our pull factor, but overall we want to offer convenience to our customers,” Sameer said. With the kind of reach BharatPe has, mobilising deposits should not be an issue for our bank, he added.

BharatPe facilitates over Rs 200 crore of loans to its merchant partners every month through its NBFC partners. The company has deployed more than 50,000 point of sales (PoS) machines and enables transactions of more than Rs 900 crore per month on PoS machines. BharatPe has presence in 75 cities in the country.

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Insurers seek re-pricing of Corona Kavach, Corona Rakshak policies

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Worried by rising claims and low premium, insurers have approached the insurance regulator IRDAI for a re-pricing of the Corona Kavach and Corona Rakshak policies.

Insurers point out that these low ticket policies were expected to be for a short duration, but with the pandemic continuing, they are turning out to be expensive propositions for them and hitting their balance sheets.

 

“The industry as a whole has asked for repricing of Corona Kavach and Corona Rakshak. We priced it around June 2020, and the actual peak has been five to 10 times of the expectation. These products are a guaranteed loss of money,” said a source privy to the development.

Sources said general insurers discussed the issue with IRDAI recently and shared data on losses.

 

“Insurers too have to report to their shareholders. These schemes were supposed to be for a short duration and no one had thought that Covid cases and claims would rise to such an extent,” noted another insurer.

Covid-specific covers

The Corona Kavach and Corona Rakshak policies were launched last year based on IRDAI guidelines by all insurers to provide Covid-specific cover to customers.

 

Corona Kavach is a family health insurance policy for Covid-19 with sum insured between ₹50,000 and ₹5 lakh available with a term of three and a half months, six and half months and nine and half months. Premiums are as low as ₹150 in some cases.

Corona Rakshak is a defined benefit policy with a sum insured between ₹50,000 and ₹2.5 lakh.

 

Comprehensive cover

Many insurers are now advising customers to move to Aarogya Sanjeevani, which is the standard health policy, which would provide more comprehensive health cover. Some insurers said that customers, too are preferring to shift to a full-fledged health cover.

 

“One of the objectives, when these policies were launched, was that they would educate customers about the benefits of health insurance and they would eventually migrate to full fledged covers,” noted an insurer.

A recent note by ICICI Securities said that industry-wide Covid claims till May 14, 2021 was 1.5 million in terms of number and $3.1 billion in value compared to 11.1 million in numbers and $2.1 billion in value in 2020-21.

 

“Our channel checks indicate that industry losses are higher on Covid-specific polices (Corona Kavach and Corona Rakshak),” it said.

The general insurance industry has over ₹24,000 crore of Covid related claims to date from the beginning of the pandemic.

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PMC Bank’s resolution could become a template for rescuing other weak UCBs

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Depositors of about 50-odd weak urban co-operative banks (UCBs), which are currently under the Reserve Bank of India’s Directions, may now have some hope of getting back their deposits.

This hope arises from the proposed amalgamation of the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank with a small finance bank (SFB) that will be floated by the Centrum Financial Services and BharatPe combine.

Template for weak UCBs

Co-operative sector experts say if the amalgamation fructifies, it could become a template for rescuing other weak UCBs in the country. Since April 1, 2015, 52 UCBs (as on December 11, 2020) have been placed under All Inclusive Directions by the Reserve Bank, as per the RBI’s latest Report on Trend and Progress of Banking in India.

 

Once a UCB is placed under Directions, deposit withdrawal is capped. The bank also cannot grant or renew any loans and advances, make any investment, incur any liability, among others. While stressed UCBs are placed under Directions by the central bank to nurse them back to health, many stay under Directions for years, bringing a lot of misery to depositors.

September 2020 amendment

Jyotindra Mehta, President, The National Federation of Urban Cooperative Banks and Credit Societies , observed that resolution of weak UCBs has brightened after the September 2020 amendment to the Banking Regulation (BR) Act, 1949, as a UCB can be merged with any bank, be it a SFB, universal bank or another UCB. “Earlier, merger was not possible. There was only takeover of the assets and liabilities of weak UCBs by another bank. But now a clear path to resolution via amalgamation is available,” Mehta said

There have been earlier instances of commercial banks taking over specific assets and liabilities of UCBs. In 2009-10, Indian Overseas Bank took over specific assets and liabilities of Pune-based Shree Suvarna Sahakari Bank. In 2011-12, Bank of Baroda took over around 15 branches of Mumbai-based Memon Co-operative Bank.

Also read: PMC Bank receives 1,229 applications for deposit withdrawal

Saraswat Bank, India’s largest UCB, had acquired seven stressed UCBs (Maratha Mandir Co-operative Bank, Mandvi Co-operative Bank, Annasaheb Karale Janata Sahakari Bank, Murgha Rajendra Sahakari Bank, Kolhapur Maratha Co-operative Bank, South Indian Co-operative Bank and Nashik People’s Co-operative Bank) during the 2006-2009 period.

Co-operative banking expert Vinayak Tarale underscored that BR Act, 1949, was amended in the wake of the debacle at PMC Bank.

“PMC Bank’s resolution, if successful, can become a test case. Other small finance banks too may feel encouraged to takeover distressed UCBs and expand their area of operation. The acquiring banks will get a ready-made branch network and customers,” he said.

Tarale emphasised that on an average, priority sector advances (loans to micro and small enterprises, housing, agriculture, etc. account for about 50 per cent of UCBs overall loan portfolio and this could engage SFBs’ attention.

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Life after LIBOR: MCA shows the way on corporate financial reporting

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Corporate India and the financial sector, including banks, now have guidance on financial reporting of the transactions undertaken with new interest rate benchmarks that are to replace the London Interbank Offered Rate (LIBOR) at the end of this year. The Ministry of Corporate Affairs (MCA) has effected amendments to several accounting standards to cover the International Accounting Standards Board’s Phase 2 amendments, Interest Rate Benchmark Reform finalised in August last year.

These changes to existing Indian accounting standards are expected to smoothen financial reporting under the replacements for LIBOR.

LIBOR was a favourite benchmark and an estimate of the rate at which big banks in London lent to each other. Every day, bankers got borrowing costs for each of the LIBOR’s five currencies — US dollar, British pound sterling, Japanese yen, Swiss franc and the euro — for periods ranging from overnight to a year.

SeveralA diversity of candidates recommended by the central banks of the US, Japan, Switzerland, UK and the EU are going to replace LIBOR as the benchmark rates, said experts in the financial sector. A major issue in the transition is that LIBOR is based on an average of bank lending rate. However, the replacement rates are based on the actual overnight money market transactions.

Replacement rates

Central banks around the world have established their own replacement rates. In the case of the dollar, it is the secured overnight financing (SOFR), while it is the sterling overnight index average (SONIA) for the pound; the Tokyo overnight average rate (TONAR) for the yen; the Swiss average rate overnight (SARON) for the Swiss franc and the Euro short term rate (ESTR) for the euro.

Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS) at EY India said: “MCA has issued Interest rate Benchmark Reform – Phase 2 Amendments and has consequently made amendments to IND AS 109, IND AS 107, IND AS 104 and IND AS 116 (Indian accounting standards). We recommend that entities complete their assessment of the accounting implications of the scenarios they expect to encounter as they transition from LIBORs to RFRs and accelerate their programmes to implement the new requirements. Where the Phase 2 amendments introduce new areas of judgment, entities need to ensure they have appropriate accounting policies and governance in place.”

Prateek Aggarwal,Partner, Nangia & Co LLP said the amendments made by MCA to various Indian Accounting Standards pertains to the the changes required in the relevant standards post Phase 2 of Interest Rate Benchmark Reforms and also due to the issuance of Conceptual Framework for Financial Reporting under Indian Accounting Standards.they believe the changes made by MCA are in line with the earlier recommendations by ICAI.

“Some of these Guidance/disclosures will enable users of financial statements to understand the effect of these changes, e.g. interest rate benchmark reform changes require an entity to disclose information about the nature and extent of risks to which the entity is exposed arising from financial instruments subject to interest rate benchmark reform and how the entity manages these risks and the entity‘s progress in completing the transition to alternative benchmark rates,” he said.

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Best Listed Defence Sector Stocks To Invest Now In India 2021

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Investment

oi-Roshni Agarwal

|

If you wish to play the recent import embargo put by the centre in respect of defence equipments, here are a few stock ideas from the defence space you can consider for investment. But before that let us know in brief the dynamics of the defence industry in India:

4 Best Listed Defence Sector Stocks To Invest Now In India 2021

4 Best Listed Defence Sector Stocks To Invest Now In India 2021

Defence sector in India

The government is majorly focused on the defence sector in India given the scope it provides in respect of both investment as well as indigenization. The last import ban imposed in August for 101 items including high end defence equipment such as missiles, radar etc. is estimated to lead to a demand creation of Rs. 4 trillion for the domestic defence sector over the next 6-7 years.

Expenditure towards the sector totals to Rs. 30 trillion and a major chunk of it is through imports i.e. around 45-50%. But now through its ‘Make in India’ and ‘Aatmanirbhar push’, the government is getting private companies’ onboard into defence equipment manufacturing, nonetheless the results will reflect over the course of time.

Why you should include defence stocks in your portfolio?

Holding a diversified portfolio is the key to success in one’s investments and so is while creating a stock basket. Talking in particular about the defence space, here are listed a few of the many reasons why stocks from defence pack offer a good opportunity to investors:

1. China-India stand off is still not resolved completely and hence there shall be requirement of defence ammunitions and hence the boosted demand for these companies.

2. Government’s ‘Aatmanirbhar’ nudge is another area that is boosting up the opportunity for the sector as now defence system in India will solely or heavily depend on indigenous suppliers. In the recent import list ban notified on May 31, 2021, 108 items have been put in the import ban list i.e. they need to be mandatorily sourced from indigenous suppliers.

3. Operating profit levels are gradually rising for these companies after the weak Q1FY21 period. Order book for these companies are full. Some of these companies like Bharat Dynamics are purely debt free companies.

List of defence related companies listed on the Indian exchanges

1. Ashok Leyland
2. Astra Microwave
3. BEML
4. Bharat Forge
5. Bharat Dynamics
6. Bharat Electronics
7. Larsen & Toubro
8. Reliance Naval & Engineering
9. Rolta India
10. Hindustan Aeronautics
11. Walchandnagar Industries
12. Cochin Shipyard
13. Garden Reach Shipbuilders

1. Bharat Forge:

1. Bharat Forge:

Set up in the year 1961 by Dr. NilkanthaRao A Kalyani is among the leading forging companies in India. The company has capabilities in developing, designing, manufacturing and engineering systems and sub-systems space for Artillery Guns, Armoured Fighting Vehicles, Protected Vehicles, Ammunition, Defence Electronics and Small Arms.

The one positive for the stock of Bharat Forge is the rising exports and because of it the scrip is constantly seeing earnings as well as price target upgrades. For the FY22, analysts have upgraded the earnings forecast for Bharat Forge by 15-20 percent given the sustainable and robust growth in exports as well as on account of resilience shown by the domestic non-auto segments. Also, as per reports, the private firm is increasing its investments so as to ramp up its capabilities in the defence domain as few of the orders are in the pipeline and the management expects to bag them.

Last the scrip of Bharat Forge closed at a price of Rs. 726.85 per share on the NSE.

M-Cap– Rs. 33,841 crore

Brokerage or Research Firm Price target for the scrip of Bharat Forge
Nomura India Rs. 924
CLSA Rs. 900
Edelweiss Rs. 880
HDFC Institutional Equities Rs. 860
Motilal Oswal Rs. 850

2. Hindustan Aeronautics Limited (HAL):

2. Hindustan Aeronautics Limited (HAL):

HAL is a Bengaluru-based PSU defence and aerospace company. The company carries out manufacturing or assembling of state of the art fighter jets as well as helicopters.

Now the Modi government’s push to manufacture defence equipments within the boundary of India will not only scale up order for these firms in the near future but also improve predictability in their cash flows.

M-Cap- Rs. 33,988 crore

Stock PE- 11.85

LTP– Rs. 1016.45

3. Bharat Electronics Limited (BEL):

3. Bharat Electronics Limited (BEL):

This is a defence PSU and it is suggested that the company is now looking to export its products to friendly nations. The company is into designing, developing and manufacturing radars, electronic weapons and also the crucial EVMs or electronic voting machine.

As per Motilal Oswal, given the company’s execution track record, it is set to benefit from the government’s rising expenditure into the defence sector. Also, the recent import embargo imposed by the centre will favour companies such as Bharat Electronics as now the country’s defence system shall totally rely on indigenous defence equipment vendors.

M-Cap– Rs. 35,622 crore

Stock PE– 20.03

Sector PE-20.40

LTP– Rs. 146.2

4. Bharat Dynamics

4. Bharat Dynamics

This is a defence PSU company engaged in missile technology and manufacturing. The company provides or supplies missiles to 3 of the country’s defence services.

Fundamentals of the company are strong with zero debt.

Promoters have close to 75% holding in the company

RoCE- 30%

Dividend Yield -2.47

Also, over a period of time, the company has performed well.

Analysts have given a ‘Buy’ call on the stock of Bharat Dynamics and set out a price target of Rs. 390-410.

M-Cap: Rs. 6537 crore

LTP-Rs. 356.7

Disclaimer: Investing in stocks are risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies is not responsible for any losses incurred due to a decision based on the above article. The story is for pure informational purpose.



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Kerala government seeks moratorium on repayment of loans, BFSI News, ET BFSI

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The Kerala government has approached the Centre to put in place a moratorium on repayment of loans till December 31 in order to provide relief to individuals in the unorganised sector, MSMEs, agriculture and others adversely affected by COVID-19 pandemic and the subsequent lockdown.

Kerala has sought a moratorium of loans without accrual of interest and penal interest during the moratorium period.

Kerala Finance Minister K N Balagopal, in a letter to Union Finance Minister Nirmala Sitharaman, said the impact of the second wave induced lockdown has adversely affected the economic and social well-being of all sectors of the society.

“…it is felt that the burden of repayment of the loans taken by individuals, especially those in the unorganised sector, MSMEs and agriculturalists is particularly onerous at this time, and these sections need some relief by way of moratorium on the repayment of loans at least till December 31, 2021,” Balagopal said in a letter dated June 16.

He said the state government has taken all steps to ameliorate the hardships faced by the people, especially the vulnerable sections.

“I request your kind intervention to put in place a moratorium on repayment of loans at least till December 31, 2021 without accrual of interest and penal interest during the moratorium period,” he said in the letter.

The Finance Minister pointed out that the economy of Kerala has been under considerable stress since 2018 due to successive natural disasters including the massive floods which lashed the state wreaking havoc in most of the districts.

The outbreak of COVID-19 in early 2020 further exacerbated the stress on the economy, he added.



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Top 8 Best Discount Stock Brokers Offering Best Demat Trading Account in India 2021

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What is a Demat Account?

A Demat account is identical to a bank account in terms of functionality. A bank account holder keeps money in the account, and entries in the passbook are made accordingly. Instead of money, securities are maintained in electronic form in a Demat account, from which credit and debit of securities can be made. Stocks, mutual funds, bonds, exchange-traded funds (ETFs), and other dematerialized securities can be held in a Demat account.

All transactions must include the Demat account number in order for trades to be settled electronically. An internet password and a transaction password are required to access the dematerialized account. Then you can start transferring or buying securities. Once transactions are validated and completed, automatic purchases and sales of securities are done on the dematerialized account.

As a result, when you make a stock purchase order, the shares are credited to your Demat account. Similarly, when you opt to sell your shares, your Demat account is debited.

Who is a discount broker?

Who is a discount broker?

A discount broker is a stockbroker who charges lower commissions on buy and sell orders than a full-service broker. In contrast to a full-service broker, a discount broker may not provide investment advice or perform analysis on behalf of a customer.

For trading in stocks, commodities, and currency derivatives, discount brokers provide low brokerage, high speed, and a quick interface. When compared to traditional Indian brokers such as HDFC Securities, ICICI Direct, SBI Cap, and others, the brokerage fees charged by these discount brokers are far lower.

A discount broker’s business model is also rather straightforward. They charge a fixed brokerage rate for all trades made by their clients, regardless of the size of the deals. This charge normally ranges between Rs 10 and Rs 20 for each trade.

The following is an accurate list of the top discount brokers in India in 2021, ranked by the number of active clients. Zerodha is the best stock broker out of all of them. Zerodha is followed by discount brokers like 5paisa, Upstox, and Samco.

Zerodha

Zerodha

This is one of the greatest places in India to open a Demat account with the cheapest brokerage. Zerodha was the largest retail stockbroker in India by active client base as of December 2020, accounting for upwards of 15% of daily retail volumes across Indian stock exchanges.

They are members of the NSE, BSE, MCX, and MCX-SX exchanges. It has quickly risen to become India’s largest discount broker, with daily trading volumes exceeding $2 billion on Indian stock exchanges. Best Demat account provider in India, with over 400,000 clients and a wide range of financial products, as well as the best Demat account for small investors.

Zerodha joined the unicorn club in June 2020, with a self-assessed valuation of around $1 billion. This estimate was based on the company’s ESOP repurchase program, which valued each share at more than four times its book value of Rs 700 a share.

Upstox

Upstox

Upstox is another excellent option for establishing the best Demat account in India in 2021. Upstox is a discount broker established in Mumbai that is backed by some of the industry’s biggest names, including Ratan Tata. Upstox offers excellent charts and tools, as well as affordable brokerage fees. Upstox is a rapidly expanding discount broker backed by several notable investors, including Kalaari Capital, Ratan Tata, GVK Davix, and others. RKSV is another name for it. Upstox began as RKSV in 2012 and changed its name to Upstox in 2015. Upstox, behind Zerodha, has the second-highest number of active clients on the NSE as of January 2021.

Groww

Groww

Groww is a web-based financial platform that allows users to buy mutual funds and equities. The company, which is headquartered in Bangalore, Karnataka, has raised over $140 million and is valued at $1 billion as of April 2021. The firm entered the stockbroking business in 2020. Direct investments in mutual funds, stocks, initial public offerings, digital gold, and exchange-traded funds are now available on the platform. Four Flipkart employees – Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh – left their jobs in 2016 to launch a business that would make investing simple.

5Paisa

5Paisa

In India, 5Paisa is a good Demat account broker. It has a simple fee structure. The discount broker is also available as a mobile app, with a very user-friendly layout. 5Paisa is a subsidiary of IIFL (India Infoline) and provides India’s cheapest stock brokerage. IIFL created 5Paisa to compete with the fast-growing discount broking market by providing a reduced brokerage platform for its clients. Apart from being one of the cheapest brokerage platforms, 5Paisa offers the benefit of no account opening fees and the ability to open a Demat account in only one day.

Paytm Money

Paytm Money

The SEBI granted Paytm permission to enter the inexpensive stockbroking industry in 2019. In the recent past, Paytm has attempted to market itself as a one-stop portal for anything money-related. Following demonetization, the online payments platform expanded to include banking services, mutual funds, SIPs, and pension plans. Paytm’s intentions to enter the stockbroking business couldn’t have come at a better time. In the months of April and May, NDSL and CDSL respectively added 2 lakh and 12 lakh new Demat accounts.

SAMCO

SAMCO

SAMCO, which was founded in 2015, is another low-cost discount broker in India. SAMCO, on the other hand, distinguishes itself from other discount brokers by providing its clients with more trading leverage. Customers can acquire up to 4x delivery leverage in cash markets, up to 80x leverage in the Nifty, 33x leverage inequities, and 60x leverage in commodities. Jimeet Modi, the company’s founder, and current CEO started the company. Samruddhi Stock Brokers Limited was acquired and renamed Samco Securities.

SAS online

SAS online

South Asian Stocks Limited (SAS Online), a member of the NSE, BSE, MCX, NCDEX, and NSDL, is an online discount brokerage firm in Indian financial markets that offers brokerage services for stocks, futures, and options, currency, and commodities. It provides services including trading, Demat, and mutual funds.SAS Online offers four distinct trading plans to fit your needs.

Wisdom Capital

Wisdom Capital

Wisdom Capital, founded in 2013, is an online discount brokerage firm that offers services in stocks, futures, and options on the NSE and BSE, as well as commodity trading on the MCX and NCDEX. It also has a FREEDOM plan with no brokerage, which draws a lot of clients. Customers can choose from three distinct brokerage plans at Wisdom Capital: Freedom, Pro, and Ultimate. Customers can select the one that best matches their needs.

These are some of the most well-known discount brokers who provide excellent service. Charges and fees, on the other hand, vary based on the sort of account you open and your trading habits.



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Karnataka Bank declares loan to Reliance Home Finance as fraud, BFSI News, ET BFSI

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Private sector Karnataka Bank has declared accounts of Reliance Home Finance and Reliance Commercial Finance a fraud with combined loan outstandings of over Rs 160 crore to the lender.

The bank has reported to the Reserve Bank regarding frauds in the credit facilities extended earlier to two listed companies — Reliance Home Finance with loan outstanding of Rs 21.94 crore and Reliance Commercial Finance Rs 138.41 crore as fraud, Karnataka Bank said in a regulatory filing.

The lender said it has been dealing with Reliance Home Finance since 2015 and with Reliance Commercial Finance since 2014.

With regard to loan to Reliance Home Finance, as many as 24 lenders were part of a multiple banking arrangement, while in case of Reliance Commercial Finance as many as 22 lenders were part of the loan arrangement.

Karnataka Bank said its share in the multiple banking arrangement to Reliance Home Finance is 0.39 per cent and to that of Reliance Commercial Finance is 1.98 per cent. The lender said it has made provision up to 100 per cent in both the cases against the loan given to the companies.

“Both the accounts were classified as NPA (non-performing assets) and have been fully provided for. As such, there is no impact on the financials of the bank going forward,” Karnataka Bank said.

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