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10 Best YouTube Channels for Stock Market in India

The stock market is one of the quickest ways to create wealth and attracts thousands of investors and traders in India. Whether you are an amateur who wants to understand the very basic concepts or an experienced trader seeking to refine their strategies, YouTube has it all to offer. Thousands of YouTube channels in their field of stock market education provide tutorials on stock analysis, investment tips, and trading strategies.

In this article, we’ll be talking about the top 10 YouTube channels for the stock market in India that can help you take your stock market journey to the next level.

Each of these YouTube channels has earned a name for sharing quality stock market information, making them the hotspots for stock market enthusiasts. Let’s head into the details of each of these channels, along with a few of their best-known playlists.

Top Stock Market YouTube Channels Comparison

Channels Name	Subscribers	Videos	Views
Trading Chanakya	479K	1.4K	46,125,737
Pranjal Kamra	6.29M	544	517,633,486
Amit Kukreja	48K	2.6k	13,057,464
CA Rachana Phadke Ranade	5.12M	1.3K	297,613,932
Yadnya Investment Academy	876K	2K	67,502,786
The Financial Analyst	30.6K	235	1,039,336
Elearnmarkets	1.01M	1.7K	83,841,304
Money Grower	270K	339	11,807,040
Asset Yogi	3.8M	670	256,473,409
Nitin Bhatia	1.01M	1.6K	70,768,886

Best YouTube Channel Overview

1. Trading Chanakya

Trading Chanakya is one of the best YouTube channels to learn trading in India. The YouTube channel deep dives into investment strategies and risk management. The channel is recommended for both novices and advanced traders. The channel will help you understand the psychology behind the trading and will help you execute profitable trades in the stock market.

Popular Playlists on Trading Chanakya:

Basics of Stock Market: This playlist for beginners explains the basics of the stock market, including how to analyze stocks and market cycles, along with important financial metrics.

Options Trading: This is a deep dive into options trading strategies, teaching viewers how to use leverage options for profit and manage risks.

Stock Market Analysis: This playlist is for those who already have some knowledge of trading and teaches about technical analysis, chart patterns, and indicators.

Investing for Long Term: This playlist aims at long-term wealth creation through stock investments, where one focuses a lot on the importance of the fundamental analysis.

Why Follow?
Great for novice and advanced traders seeking actionable insights.

2. Pranjal Kamra

Pranjal Kamra is one of the most popular YouTubers teaching about the stock market in India. He explains the most complex concepts in a very simple and easy-to-understand method through his tutorials on stock market investing, personal finance, and financial planning. He teaches the audience about the power of compounding and long-term investing.

Popular Playlists by Pranjal Kamra:

Stock Market for Beginners: A step-by-step guide to understanding the stock markets. This is the perfect playlist for all the new folks.

Investment Strategies: Advanced strategies, including value investing, growth investing and portfolio diversification.

Personal Finance: A comprehensive playlist encompassing financial planning, wealth creation, and retirement planning.

Mutual Funds: This playlist encompasses mutual fund investments, an excellent idea for those who wish to diversify their investments.

Why Follow?
Pranjal’s practical advice and real-life examples make complex concepts easy to grasp.

3. Amit Kukreja

Amit Kukreja is another esteemed name in the category of personal finance and stock market education. His YouTube channel aims to educate people about specific investment strategies, financial planning, and market analysis. Given his detailed and easy-to-follow content, Amit Kukreja simplifies complex financial thoughts for beginners and provides more insight for experienced investors.

Trending Playlists on Amit Kukreja:

Stock Market Insights: In-depth reviews of stock market trends, the latest economic updates, and sector-specific reviews.

Investment Strategies: Tips and strategies for building a diversified portfolio aimed at meeting long-term financial goals.

Mutual Funds Masterclass: Reviewing mutual funds in detail with head-to-head comparisons to guide the audience toward making the right investment choices.

Wealth Planning Basics: Financial planning, retirement planning, and essentials about wealth management.

Why Follow?
His channel provides a balanced mix of theoretical and practical financial knowledge.

4. CA Rachana Phadke Ranade

CA Rachana Phadke Ranade is one of the best stock market teachers on YouTube. With a background in finance, she is a trusted name for financial education. Her channel offers detailed lessons on all aspects of a stock market, be it trading strategy or financial literacy.

Top Playlists on CA Rachana Phadke Ranade:

Stock Market Course in Hindi: It is a complete stock market course for beginners, ranging from basic aspects of the market to advanced topics.

Technical Analysis: Offers deep insights on technical analysis, chart patterns, and key indicators, which helps traders make informed trading decisions.

Fundamental Analysis: The playlist teaches how to analyze a company on the basis of its financial statements and determine intrinsic value.

Investing in Stocks: A playlist of long-term investments focusing on portfolio management and risk management, including diversifying investment portfolios.

Why Follow?
Rachana’s structured courses are excellent for beginners and advanced learners alike.

5. Yadnya Investment Academy

Yadnya Investment Academy is one of the most well-respected channels that has always focused on delivering deep insights into financial planning, mutual funds, and the stock market. It is a platform that empowers retail investors with strategic investment opportunities for long-term wealth creation.

Popular Playlists on Yadnya Investment Academy:

Stock Market Insights: Analysis of the Indian stock market trends based on sectoral performance and macroeconomic conditions.

Mutual Funds Simplified: Guidelines on how to select the right mutual fund as per your financial goals, risk appetite, and specific performance metric.

Detailed Breakdown of listed companies, company fundamentals, and growth prospects for informed decision-making.

Why Follow?
Perfect for those looking to build sustainable investment portfolios.

6. The Financial Analyst

The Financial Analyst is a popular YouTube channel that focuses on stock market analysis, investments, and personal finance. The playlists are meant to help people make better decisions regarding their money.

Most Popular Playlists on The Financial Analyst

Stock Market Analysis: It offers an overview of the current trends in the stock markets, technical analysis, and stock recommendations.

Investment Strategies: Several investment techniques are shared on how to build long-term wealth.

Stock Picks: This playlist features stocks that should be worth investing in, with a detailed analysis of their growth prospects.

Financial Planning: The playlist takes one through the entire personal finance spectrum, from budgeting to wealth management.

Why Follow?
Offers quick, actionable tips for improving financial health.

7. Elearnmarkets

Elearnmarkets is a popular channel that aims to provide educational content to stock market enthusiasts. It is designed for those interested in learning trading and investing from scratch. The channel offers expert guidance with easy-to-understand tutorials, thus making complex financial concepts understandable to everyone.

Popular Playlists on Elearnmarkets:

Stock Market Basics: A playlist of beginner-friendly lessons to understand the basics of the stock market.

Technical Analysis: Comprehensive playlists on chart pattern recognition, indicators, and trading tools necessary for any successful trader.

Financial Planning: The playlist explains personal finance, wealth management, and financial planning.

Advanced Trading Strategies: Options trading, derivatives, and algorithmic trading are covered in this playlist.

Why Follow?
An excellent resource for traders looking to advance their technical skills.

8. Money Grower

Money Grower is a YouTube channel that provides a combination of stock market analysis, trading techniques, and general financial knowledge. This interesting approach to teaching the viewers made Money Grower one of the top stock market YouTube channels.

Most Popular Playlists on Money Grower:

Stock Market for Beginners Series: This all-inclusive series covers the basics of the stock market.

Technical Analysis: Individuals can watch this playlist to learn how to use chart patterns for trading decisions.

Stock Picking: This playlist teaches you how to select individual stocks with long-term growth potential.

Investment Strategies: Learn how to make a very powerful investment portfolio.

Why Follow?
Simplifies technical concepts into easily digestible lessons.

9. Asset Yogi

Asset Yogi is one of the popular channels providing informative content on stock market basics and investing strategies. The channel’s content caters to individuals with different experience levels, breaks down complex financial concepts, and provides actionable insights toward creating wealth. What makes Asset Yogi stand out is its ability to explain academic content through practical applications, which makes it useful for making the right financial decisions.

Trending Playlists on Asset Yogi:

Personal Finance Fundamentals: Beginners can watch this playlist to learn how to manage your personal finances.

Stock Market for Beginners: Learn how the stock market works and start your investing journey smoothly.

Real Estate Investment: A comprehensive guide on how to invest in property, the returns, and the general market trends.

Understanding Mutual Funds: In-depth studies of mutual fund types and returns and criteria that determine the best mutual fund for a particular investor.

Why Follow?
The practical approach ensures relevance to real-life investment scenarios.

10. Nitin Bhatia

Nitin Bhatia is a popular YouTuber in the Indian stock market. He offers excellent content on stock trading, personal finance, and investment strategies. His channel is suitable for both beginners and advanced traders.

Read Also: Best Trading Apps in India

Popular Playlists of Nitin Bhatia:

Stock Market Basics: This is a list of videos for beginners who want to know the basics of investing and trading in the stock market.

Personal Finance: Learn how important financial planning is in life.

Stock Picking: Identify growth stocks and learn how to analyze them.

Investing for the Long-Term: Understand the significance of long-term investing and how to create a diversified portfolio.

Why Follow?
His well-rounded content is beneficial for both beginners and experienced investors.

Conclusion

These YouTube channels provide some of the best educational content on stock markets in India. Be it learning the basics or advanced technical analysis, these channels will help you achieve your financial goals.

With the best stock market YouTube channel, you gain valuable insights, market updates, and upgrade your investing and trading approaches and strategies. Patience, discipline, and the pursuit of knowledge are key success factors in investing. However, it is advised to consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

Who gives the best stock advice on YouTube?
Some of the best stock advisors on YouTube are Pranjal Kamra, Rachana Ranade, and Trading Chanakya.
Can I learn trading on YouTube?
It is possible to learn trading on YouTube because channels like Trading Chanakya, Elearnmarkets and Rachna Ranade offer quality educational content.
Who is the best stock market teacher?
The best YouTube stock market teacher is Rachana Ranade due to her clear explanations and easy-to-understand content.
Which of the following are the 5 best YouTube channels to learn about the Indian stock market?
The best 5 YouTube channels for the stock market in India are Pranjal Kamra, Rachana Ranade, Trading Chanakya, Elearnmarkets, and The Financial Analyst.
Can I trade based on the information provided by a YouTube channel?
It is advised to consult a financial advisor before making trading decisions.

LTP in Stock Market: Meaning, Full Form, Strategy and Calculation

While trading or investing in the stock market, one common term that market participants come across is LTP (Last Traded Price). LTP is the price at which a stock or security was last traded. Unlike opening or closing prices of a day, LTP continuously changes during the trading session. This provides insight for short-term traders.

In this blog, we will discuss what LTP means and its full form, how it is calculated, and how it is used in trading. We will also be discussing how LTP stacks up against other price metrics.

What is LTP?

LTP stands for Last Traded Price. It denotes the price at which the most recent transaction or trade involving a stock was executed. It is dynamic and varies throughout the trading day due to continuous buying and selling activity.

LTP is determined directly from the transaction data recorded by the stock exchange. Here is a simplified breakdown.

Whenever a security is bought or sold, the exchange meticulously documents the transaction.
Every transaction record captures the exact price at which the trade was executed, along with a precise timestamp, ensuring comprehensive details for every transaction.

LTP of an asset represents the price at which the most recent transaction involving the asset has been completed. Furthermore, it is updated in real time as new transactions occur. For example, if the last transaction for a particular stock was executed at INR 500 at 3:15 PM, then the LTP at that instant would be INR 500.

LTP vs Other Key Price Metrics

Knowing the differences between LTP and other price metrics can improve your investment decisions and trading styles. Some of the key price metrics are:

Open Price – It marks the price at which the first trade of the day takes place, offering valuable insights into the market’s initial sentiment.
High Price – This represents the highest price achieved during a trading day. It reveals the highest price paid for that security on that day.
Closing Price – It is the weighted average price of the last thirty minutes of the trading day.
Average Price – This represents the mean price of all transactions conducted within a designated time frame. It offers a broader perspective on price fluctuations during the trading session.
Volume – It refers to the total number of shares exchanged during a specific timeframe. The volume shows the interest and activity levels in the security.

Uses of LTP in Stock Trading

LTP can be used in stock trading in the following ways:

Trend Analysis – Traders closely monitor the Last Traded Price (LTP) to discern market trends, helping them determine whether a stock is experiencing an upward or downward trajectory.
Momentum Trading – Traders seize opportunities in stocks that exhibit consistently increasing or decreasing LTPs, signaling a strong momentum.
Support & Resistance –The LTP is instrumental in recognizing important levels from where the price generally reverses, i.e. support and resistance levels.
Intraday trading – For short-term traders, the LTP is an essential tool for making buy or sell decisions based on minute-by-minute fluctuations.
Scalping – It is a dynamic trading strategy that focuses on executing rapid buy and sell transactions to capitalize on minor price movements. Traders frequently rely on LTP as a key indicator in this approach.

LTP and Technical Analysis

The LTP serves as a key element in technical analysis. It offers real-time insights to analysts, which helps them spot trends, patterns, and possible future price changes. Let us have a quick overview of how LTP can be used in technical analysis.

The ability to read charts is a key skill in technical analysis. LTP is illustrated on price charts to provide a visual depiction of a security’s price history.
Analysts use LTP to spot uptrends, downtrends, and sideways trends. LTP data also helps in analyzing historical support or resistance levels for an asset.
Technical indicators like moving averages, RSI, and Stochastic Oscillator use LTP data to generate signals.
LTP, when analyzed alongside volume, empowers traders to gauge whether price fluctuations are backed by substantial trading activity.

Factors Affecting LTP

Various factors affect the LTP of a stock, some of which are listed below:

Economic Indicators

Economic Indicators such as GDP, inflation rates, and employment data play a crucial role in shaping overall market sentiment and consequently influencing the LTP.

Supply & Demand

Supply refers to the total quantity of shares that can be offered for sale in the market. An increase in the number of sellers leads to a higher supply of stock, which can lower the last traded price.

Demand refers to the quantity of shares that can be bought in the market. Increased buyer interest raises demand, which pushes the stock’s last traded price up.

So, LTP represents a point at which supply and demand converge, signifying the price at which the buyer and seller reached an agreement to complete a transaction.

Corporate Announcements

Earnings Reports, whether positive or negative, can lead to substantial price fluctuations. Company events like mergers, acquisitions, product launches, or legal issues can also affect LTP. The performance of the industry in which a company operates also impacts its stock price. Dividend announcements can also attract investors and raise the stock price.

Bid-Ask Spread

The bid-ask spread is the difference between the bid price and the ask price. The bid price is the highest price a buyer will pay, and the ask price is the lowest price a seller will accept. The LTP usually falls within this range and adjusts as trades occur between the bid and ask prices.

A narrow bid-ask spread shows high liquidity and reduced volatility, whereas a wide bid-ask spread shows low liquidity, resulting in greater fluctuations in the LTPs.

Conclusion

Understanding the concept of LTP is essential for anyone engaged in trading or investing in the stock market. It stands for the last traded price of an asset, which is necessary for quick decision-making, especially for day traders and short-term investors. LTP changes with each transaction and is affected by supply and demand, market sentiment, corporate performance, and global events. Including LTP in your trading strategy can keep you updated on market trends, help identify important buying or selling opportunities, and improve trading performance. Remember, LTP is only one aspect of analysis; it is also essential to consider metrics like opening price, closing price, volume, etc. It is advised to consult a financial advisor before investing or trading.

Frequently Asked Questions

Is LTP the same as the closing price?
No, LTP reflects the price at which the most recent transaction was completed, while the closing price is the weighted average price of transactions during the final moments of the trading day.
How often does LTP change?
LTP changes every time a new transaction happens, making it a real-time indicator of stock price movements.
Is LTP useful for long-term investors?
While it is more useful for short-term traders, long-term investors might use it alongside other metrics to identify major support and resistance levels.
Why does LTP fluctuate during market hours?
LTP fluctuates because of ongoing trading activity, influenced by market dynamics and investor sentiment.
Can LTP be manipulated?
In highly liquid markets, it is difficult to manipulate LTP. However, in low-volume stocks, large block deals can cause large price swings.

October 21, 2024

The stock market has always been a captivating subject, full of drama, suspense, and high stakes. Hollywood and streaming platforms have turned the thrill of trading, investing, and corporate battles into some of the most engaging movies and web series. Stock markets are a place with a lot of interesting stories, which the entertainment industry has depicted in creative ways over the years. The entertainment industry has done an excellent job of simplifying complex financial events so that anyone can understand them. However, most of them are based on real-life incidents that caused the stock markets to plummet.

In this blog, we will provide an overview of the best movies and web series about the share market that are worth watching.

Performance Table: Best Stock Market Movies and Web Series

S.No.	Title	Release Year	Genre	IMDB Rating	Rotten Tomatoes Rating	Key Focus
1	The Wolf of Wall Street	2013	Biography, Comedy, Crime	8.2	80%	Unethical practices, stockbroker lifestyle
2	Scam 1992: The Harshad Mehta Story	2020	Biography, Crime, Drama	9.3	N/A	Stock market manipulation, Indian finance
3	Margin Call	2011	Drama, Thriller	7.1	87%	2008 Financial Crisis, risk management
4	Inside Job	2010	Documentary	8.2	98%	Financial corruption, 2008 crisis
5	Rogue Trader	1999	Biography, Drama	6.4	30%	Unauthorized trading, bank collapse
6	Wall Street	1987	Drama	7.4	78%	Insider trading, corporate greed
7	The Big Short	2015	Biography, Comedy, Drama	7.8	88%	2008 crisis, housing market collapse
8	Boiler Room	2000	Crime, Drama, Thriller	7	66%	Stock fraud, pump-and-dump schemes
9	Too Big to Fail	2011	Drama	7.3	N/A	2008 financial crisis response
10	Enron: The Smartest Guys in the Room	2005	Documentary	7.6	97%	Corporate scandal, accounting fraud
11	Billions (TV Series)	2016-	Drama	8.4	N/A	Legal and personal conflicts, hedge funds
12	Baazaar	2018	Crime, Drama, Thriller	6.6	N/A	Ambition, insider trading
13	Gafla	2006	Drama, Thriller	7.4	N/A	Stock market manipulation, Harshad Mehta-inspired
14	Black Monday	2019-2021	Comedy, Drama	7.4	56%	1987 market crash, financial chaos
15	Equity	2016	Drama, Thriller	5.5	80%	Women in finance, IPO drama

Read Also: Best Trading Apps in India

List of Best Stock Market Movies in Hindi

Here’s a table listing the best stock market-related movies in Hindi:

S.No.	Movie/Series	Year	Plot/Theme	Highlights
1	Gafla	2006	A young man enters the stock market and gets involved in scams.	Inspired by the Harshad Mehta scam.
2	Scam 1992: The Harshad Mehta Story	2020	Chronicles the rise and fall of Harshad Mehta in the stock market.	Realistic depiction of the stock market and its inner workings.
3	Corporate	2006	A drama about corporate rivalries and ethical dilemmas.	Explores power dynamics in business boardrooms.
4	Baazaar	2018	A young aspirant gets involved in the greed and deception of the financial world.	Slick portrayal of the stock market with standout performances.
5	The Big Bull	2021	A dramatized take on the Harshad Mehta-inspired stock market boom of the ’80s and ’90s.	Comparable to Scam 1992 but with a cinematic approach.
6	Share Bazaar	1997	Focuses on the ups and downs of the stock market.	One of the earliest Hindi films about the stock market.
7	Guru	2007	Loosely inspired by Dhirubhai Ambani’s life and rise as an industrial tycoon.	Explores ambition, business strategies, and financial risk-taking.

These movies and series provide a mix of drama, thrill, and education about the stock market and financial industries, making them engaging for audiences with an interest in this field.

The overview of the stock market movies and web series are:

1. The Wolf of Wall Street (2013)

The film, which was released in 2013, was based on the true story of Jordan Belfort, a stockbroker who operated a dishonest brokerage business. It is revealed in this film that Jordan co-founded Stratton Oakmont with a man by the name of Donnie and that the company participated in pump-and-dump stock price manipulation. As a result, Jordan has amassed an enormous fortune over time and subsequently becomes entangled in illicit operations, including drugs, women, and other things. Subsequently, they caught the interest of law authorities, notably the FBI. After an investigation, he lost all his wealth and faced serious repercussions. Leonardo DiCaprio portrayed Jordan in the film. The film was financially successful and made over $400 million.

Genre: Biography, Comedy, Crime
Director: Martin Scorsese
Starring: Leonardo DiCaprio, Jonah Hill, Margot Robbie
Key Takeaway: The dangers of unethical practices in the stock market.Language: English
Budget: ₹830 crore (approx.)
Earnings: ₹3,254 crore (approx.)
Available On: Netflix, Amazon Prime Video

2. Scam 1992: The Harshad Mehta Story (2020)

A book named “The Scam: Who Won, Who Lost, Who Got Away” was written by journalists Sucheta Dalal and Debashis Basu. The book’s contents served as the basis for the “Scam 1992: The Harshad Mehta Story”, which was released in 2020. The series narrates the tale of the largest financial fraud in India, which took place in the early 1990s. Pratik Gandhi played the role of Harshad Mehta. Mehta was well-known for his aggressive investment strategies and market manipulation methods. During his time, the Indian stock market soared to astronomical highs, due to which he was known as the “The Big Bull.” His prowess in manipulating the Indian Banking System and stock prices caught the attention of journalist Sucheta Dalal, portrayed by Shreya Dhanwanthary. She investigated the fraud and released her findings, which led to Harshad Mehta’s arrest, and ultimately, the Indian stock market crashed.

Genre: Biography, Crime, Drama
Director: Hansal Mehta
Starring: Pratik Gandhi, Shreya Dhanwanthary, Hemant Kher
Key Takeaway: The importance of transparency and the potential consequences of exploiting financial loopholes.
Language: Hindi
Budget: Not publicly disclosed
Earnings: Not applicable (TV series)
Available On: SonyLIV

3. Margin Call (2011)

This American film narrates the actions performed by the employees at a large Wall Street investment bank for 24 hours during the financial crisis of 2007–2008. The movie’s title describes a scenario where an investor must increase the assets pledged as security for a loan after their value drops below a predetermined threshold. Eric Dale, the company’s head of risk management, developed a model that reveals a financial risk that could cause the firm to collapse. He alerted his bosses and other executives to the risk, but they initially ignored it. In an attempt to stay out of bankruptcy, companies strive to sell off their assets by the next day. This film illustrates how financial company mismanagement caused the global share market to crash.

Genre: Drama, Thriller
Director: J.C. Chandor
Starring: Kevin Spacey, Paul Bettany, Jeremy Irons
Key Takeaway: The risks involved in financial markets and how decisions made in crisis moments can impact the world.
Language: English
Budget: ₹29 crore (approx.)
Earnings: ₹161 crore (approx.)
Available On: Amazon Prime Video, Hulu, Peacock

4. Inside Job (2010)

The 2010 documentary Inside Job showcases the circumstances leading up to the financial crisis of 2007-2008. The documentary starts with an analysis of prevalent deregulations in the finance industry in the early 1980s. The dangerous aspects of these decisions are explained in the film, including mortgage-backed securities and credit default swaps. The film examines the economic bubble and how rising real estate prices encouraged banks to lend money without first determining the borrower’s creditworthiness. In 2007 and 2008, subprime loan defaults caused investment banks like Lehman Brothers and Bear Stearns to fail, while the government bailed out other institutions like AIG. The film illustrates how senior bank executives disregarded established guidelines, which caused the world stock market to collapse.

Genre: Documentary
Director: Charles Ferguson
Narrated by: Matt Damon
Key Takeaway: The far-reaching consequences of financial corruption and the need for transparency and regulation in the financial industry.
Language: English
Budget: ₹17 crore (approx.)
Earnings: ₹64 crore (approx.)
Available On: Netflix

5. Rogue Trader (1999)

Rogue Trader is a movie based on a true story about a reckless trader named Nick Leeson who made financial decisions that caused the UK-based Barings Bank to fail. The autobiography “Rogue Trader: How I Bought the Barings Bank and Shook the Financial World” served as the inspiration for the film. The film starts with the story of a young banker named Nick Lesson, portrayed by Ewan McGregor, who works for Barings Bank and is assigned to Singapore to oversee derivatives trading at the Singapore International Monetary Exchange. Through his aggressive trading, he generated significant profits right away. Afterwards, he started to lose money, but instead of disclosing it, he kept it hidden in a secret account and intended to use riskier wagers to win it back. After placing a large bet on the potential stability of the Japanese market, he lost a significant amount of money—roughly 827 million Euros—when the Japanese stock market experienced a correction in 1995 due to an earthquake in Japan. This event ultimately caused Barings Bank to fail.

Genre: Biography, Drama
Director: James Dearden
Starring: Ewan McGregor, Anna Friel
Key Takeaway: The dangers of unchecked power and the devastating impact one individual’s actions can have on the financial world.
Language: English
Budget: ₹105 crore (approx.)
Earnings: ₹13 crore (approx.)
Available On: Amazon Prime Video, Tubi

6. Wall Street

Wall Street is a film about the ins and outs of Wall Street and how people engage in insider trading. The film’s protagonist, Charlie Sheen, plays the role of Bud Fox, a young stockbroker with big goals in the financial world. Gordon Gekko is a smooth-talking, brash and ruthless corporate raider, portrayed by Michael Douglas. In search of success, Bud, a junior stockbroker, encountered Gordon Gekko, a wealthy and assertive stock market participant. Fox’s father, a maintenance worker’s union leader at an airline, provides him with some insider knowledge about a business, which Bud tells Gordon. For his performance in this film, actor Michael Douglas was awarded the Academy Award for Best Actor. The greed, power, ambition, and ethics of a person who is prepared to give up all for their achievement are all depicted in the film.

Genre: Drama
Director: Oliver Stone
Starring: Michael Douglas, Charlie Sheen
Key Takeaway: The consequences of corporate greed and ethical compromises.
Language: English
Budget: ₹124 crore (approx.)
Earnings: ₹362 crore (approx.)
Available On: Disney+, Amazon Prime Video

7. The Big Short

The Big Short, based on a non-fiction book by Michael Lewis, was released in 2015 and was regarded as a critically acclaimed film. Adam Mckay directed it. The events leading up to the 2008 financial crisis are explained in the movie. The film is about the people who foresaw the 2008 financial institution meltdown and placed bets against it, ultimately making substantial profits.

Christian Bale plays the role of Michael Burry, a hedge fund manager with a distinct perspective on the market. He studies the mortgage industry and concludes that the loans given out by financial institutions are risky and prone to fail. It draws attention to how subprime loans triggered the expansion and collapse of the US housing market. In addition to being a commercial success, this film won other accolades, including the Academy Award for Best Adapted Screenplay.

Genre: Biography, Comedy, Drama
Director: Adam McKay
Starring: Christian Bale, Steve Carell, Ryan Gosling
Key Takeaway: Understanding the risks and ethical implications of subprime mortgages.
Language: English
Budget: ₹231 crore (approx.)
Earnings: ₹1,102 crore (approx.)
Available On: Netflix, Amazon Prime Video

8. Boiler Room

The film Boiler Room, directed by Ben Younger, was released in 2000. The film is focused on the world of brokerage firms involved in questionable and frequently unlawful trading activities. Giovanni Ribisi played the role of Seth Davis, a young man who operates an unlicensed casino in his apartment after dropping out of college. He later worked for a brokerage company called J.T. Marlin, where he learned how to aggressively offer worthless penny stocks—to gullible customers and persuade them that they have a fantastic investment opportunity. He later learns about the negative aspects of JT Marlin’s company, including the pump and dump strategy, exploiting clients to make enormous profits. The film was made on a budget of $7 million and earned approximately $28 million at the box office.

Genre: Crime, Drama, Thriller
Director: Ben Younger
Starring: Giovanni Ribisi, Vin Diesel
Key Takeaway: The dangers of stock fraud and the impact of unethical trading.
Language: English
Budget: ₹58 crore (approx.)
Earnings: ₹232 crore (approx.)
Available On: Amazon Prime Video, Hulu

9. Too Big to Fail

The 2011 HBO film centers on the 2008 financial crisis and the responses of Federal Reserve Chairman Ben Bernake and Treasury Secretary Henry Paulson to the failure of Lehman Brothers. The film’s central theme is how the collapse of one organization might affect the collapse of the global financial system. Intense pressure and political scheming were also featured in the film as the Fed Chairman and New York Fed President attempted to stop the financial system from collapsing. Paul Giamatti played the role of Federal Reserve Chairman Ben Bernanke in the film, while James Woods portrayed Lehman Brothers CEO Dick Fuld. Critics praised the film for its narrative, directing, and acting, and it has been nominated for multiple awards, including the Screen Actors Guild and Golden Globes.

Genre: Drama
Director: Curtis Hanson
Starring: William Hurt, Paul Giamatti
Key Takeaway: The consequences of poor financial management and the efforts to prevent economic disaster.
Language: English
Budget: Not publicly disclosed
Earnings: Not applicable (TV film)
Available On: HBO Max

10. Enron: The Smartest Guys in the Room

The growth and fall of the Enron Corporation, one of the worst business scandals in the United States, is the subject of the 2005 documentary Enron, which Alex Gibney directed. Bethany Mclean and Peter Elkind’s book served as the basis for this documentary. Enron’s management committed a significant accounting scandal that ultimately caused the company to go bankrupt in 2001. The corporation manipulates accounting procedures and inflates its profits. Energy costs increase due to the company’s purposely induced power and energy constraints in California. In addition to receiving numerous honors and praise from critics, this documentary was nominated for an Academy Award for Best Documentary Feature.

Genre: Documentary
Director: Alex Gibney
Key Takeaway: The destructive effects of corporate fraud and the need for transparency.
Language: English
Budget: ₹5.8 crore (approx.)
Earnings: ₹39 crore (approx.)
Available On: Amazon Prime Video, Hulu

11. Billions

In 2016, this American television show made its debut. Personal rivalry, legal conflicts, and the fierce world of hedge funds were portrayed in the series. The show centers on two powerful individuals: Bobby Axelrod, played by Damian Lewis, who is the head of Axe Capital and a billionaire hedge fund manager, and Chuck Rhoades, played by Paul Giamatti, a US attorney who, despite his intelligence, has a vicious personality and is determined to bring Axelrod down. Later in the series, Mike Prince, a billionaire, appeared as Axe’s new rival. The script, directing, plot, acting, and other aspects of the Billions series have all won praise from critics.

Genre: Drama
Creator: Brian Koppelman, David Levien
Starring: Damian Lewis, Paul Giamatti
Key Takeaway: The personal and legal battles within the hedge fund industry.
Language: English
Budget: Not publicly disclosed
Earnings: Not applicable (TV series)
Available On: Showtime, Amazon Prime Video

12. Baazaar

Gauravv K. Chawla directed the 2018 Bollywood film Baazaar. Rohan Mehra portrayed the character of Rizwan Ahmad, an ambitious man from a tiny Indian town who wants to pursue a career in the stock market. Saif Ali Khan, a formidable and enigmatic businessman, portrayed Shakun Kothari. After meeting Shakun Kothari, Rizwan began managing his investments and used insider information to make profits. The negative aspects of the stock market are portrayed in this film. The film, which portrays greed, ambition, and moral compromise, draws inspiration from several Hollywood productions, including Wall Street and The Wolf of Wall Street.

Genre: Crime, Drama, ThrillerDirector: Gauravv K. Chawla
Starring: Saif Ali Khan, Rohan Mehra
Key Takeaway: The moral compromises people make to achieve financial success.
Language: Hindi
Budget: ₹34 crore (approx.)
Earnings: ₹40 crore (approx.)
Available On: Amazon Prime Video

13. Gafla

Gafla is a 2006 Bollywood film directed by Sameer Hanchate. The main focus of the film is to portray the details of Harshad Mehta’s stock market scam. The movie shows how a driven individual who aspires to succeed discovers loopholes in the Indian financial system and utilizes them to make huge profits. The story’s protagonist, Subhod Mehta, is a tiny businessman with an interest in the stock market. He quickly establishes his financial empire by using his high-risk trading methods to control stock prices, but he must finally confront the market’s negative aspects, too. He joined the stock market with huge ambitions but later turned to immoral behavior in an attempt to appease brokers and investors.

Genre: Drama, Thriller
Director: Sameer Hanchate
Starring: Vinod Sharawat
Key Takeaway: How ambition and manipulation can lead to massive consequences.
Language: Hindi
Budget: Not publicly disclosed
Earnings: Not widely released
Available On: YouTube

14. Black Monday

It’s a television show that ran from 2019 to 2021 and was produced by David Caspe alongside Jordan Cahan. The film is based on an event that occurred in 1987, when one of the biggest stock market crashes in history occurred on October 19. Don Cheadle plays the role of Maurice Monroe, the head of a successful brokerage firm named the Jammer Group. He was extremely ambitious yet ethically flexible. Andrew Rannells portrayed the character of Blair Pfaff, a crucial member of the firm and an unpredictable stockbroker. The show highlights the challenging situations protagonists face as Black Monday approaches.

Genre: Comedy, Drama
Creators: David Caspe, Jordan Cahan
Starring: Don Cheadle, Andrew Rannells
Key Takeaway: The impact of risky trades and unethical practices in volatile times.
Language: English
Budget: Not publicly disclosed
Earnings: Not applicable (TV series)
Available On: Showtime, Amazon Prime Video

15. Equity

The 2016 financial thriller Equity, directed by Meera Menon, centers on Naomi Bishop, a senior investment banker. The film covers the narrative of men’s domination in the finance industry and offers a distinctive viewpoint on the field. Anna Gunn, James Purefoy, and Alysia Renier were the film’s main actors. While working on an IPO for a tech company, Naomi encountered several challenges, including mistrust from their male coworkers and her complex relationship with a hedge fund manager. The film is notable because it depicts the realities faced by women in the finance industry.

Genre: Drama, Thriller
Director: Meera Menon
Starring: Anna Gunn, James Purefoy
Key Takeaway: The challenges and biases women face in finance.
Language: English
Budget: ₹29 crore (approx.)
Earnings: ₹13 crore (approx.)
Available On: Amazon Prime Video, Hulu

Here’s a list of some of the best stock market movies in Hindi or movies with a significant financial and stock market theme that may interest Bollywood enthusiasts:

Conclusion

Many films on the stock market have been made all over the world, but the majority of them are based on the financial crises that occurred in different nations. While some were based on the 2008 financial crisis, others were based on India’s 1992 stock market collapse or the 1995 Japanese market collapse. Every film imparts the wisdom that, despite possible short-term causes for market declines, investors should maintain faith in the stock market because, in the end, it will rise and surpass its prior peak.

Frequently Asked Questions (FAQs)

Which is the best movie based on the stock market?
The stock market has been the subject of many films, such as Rogue Trader, Margin Call, The Wolf of Wall Street, etc.
Which Indian web series is based on the Indian Stock Market crash?
The 1992 Indian stock market crash is the subject of the web series Scam 1992, which is based on financial fraud committed by Harshad Mehta.
What was the reason for the stock market fall in the year 2008?
The collapse of US financial institutions like Lehman Brothers led to a decline in investor trust in banks, which in turn caused the 2008 stock market crisis.
Who played the role of Harshad Mehta in the Scam 1992 web series?
Pratik Gandhi played the role of Harshad Mehta in the Scam 1992 web series.
Who exposed the Scam of 1992?
The scam caused by Harshad Mehta was exposed by a journalist named Suchita Dalal.

Why Do We Pay Taxes to the Government?

On one fine day, sitting calmly in your chair, you hear the news regarding the due date for filing your income tax return, and the government may penalize you for not paying income tax by the due date. You must have thought about why you are paying a portion of your hard-earned money to the government. Is it necessary? How are you going to benefit from it?

In this blog, we are going to discuss how the government uses taxes for the benefit of the nation’s citizens. Moreover, we will give you some interesting, unpopular facts about the taxpayers in India. So, read on.

What is Tax?

Taxes are mandatory contributions made by corporations and individuals to the government. Governments use these funds to provide public services, such as police services and roads, to the public. The government also pays the salaries of civil servants. The public does not pay directly for these goods and services or for the time of public servants when they visit government offices; it pays indirectly through taxation. The government, therefore, regularly decides how much to spend, what to spend it on, and how to finance its expenditure.

Types of Taxes in India

There are different kinds of taxes levied on different assessees. However, these taxes are broadly classified into two major categories:

1. Direct Tax

Direct taxes are levied on individuals, corporations, and other entities. As the name suggests, direct taxes are the taxes that are paid by the taxpayers directly to the government. This tax is applicable to taxpayers earning income above some specific threshold, and it cannot be shifted to another taxpayer. That means not all individuals are liable to pay direct tax. Direct tax includes the following types of taxes:

Income Tax
Corporate Tax
Security Transaction Tax
Capital Gains Tax
Gift Tax

2. Indirect Tax

The indirect tax is not paid directly to the government but levied on the taxpayers at the time of purchase or consumption of goods and services, irrespective of the taxpayer’s income. The tax amount is included in the cost of goods or services, and the tax burden is passed on from the wholesalers to retailers, who pass it on to the customers. Examples of indirect tax are:

Goods and Services Tax
Custom Duty
Value Added Tax

How Does the Government Use Taxes?

Taxes are levied by the government and collected by tax authorities for the development of the nation. The tax collected by the government, which is the major source of revenue for the government, is used to fund various sectors in the country, such as:

Healthcare
Education
Infrastructure
Social Security
Defence
Environment Protection
International Relations
Emergency & Contingency Funds

Some Interesting Facts About Taxpayers in India

Here are some interesting facts about taxpayers in India:

A mere 5-6% of India’s population contributes to income tax, indicating a small number of taxpayers.
The new tax regime launched in FY 2020 features six slabs with rates from 0% to 30%, along with various exemptions under the previous regime.
As of 2023, 1.40 crore businesses are registered under the Goods and Services Tax (GST) system.
The largest group of individual tax filers falls within the ₹5-10 lakh annual income range.
Following demonetization, there was a 25% increase in income tax returns filed between FY 2016 and FY 2017.

Importance of Taxes in Making India a Developed Nation

Before we discuss how taxes are important in making India a developed nation, let’s talk about what makes a country developed. A country with a strong economy, a high quality of life, equal distribution of income among its citizens, low poverty and employment rates, access to quality health and education, and a diverse industrial sector is considered a developed nation. Below, we are listing a few key points of how taxes can help India achieve all those things and make it a developed economy:

The government uses taxes to build infrastructure, which is essential for any country’s economic growth.
The taxes received by the government are also used to fund social initiatives and welfare programs.
No country can become a developed country without education. Government-collected taxes are used to fund quality education in rural as well as urban areas, which includes school infrastructure, teacher’s salaries, etc.
The government bears the expenditure on health and medical R&D, hospital infrastructure, health insurance, and other services.
Taxes fund schemes to help people who are unemployed or have low levels of income.
Governments introduced progressive taxation in order to reduce income inequality by making people who earn more pay more taxes and build an equitable society.

Conclusion

For the government of any country, taxes are the primary source of revenue. The major categories of taxes are direct taxes and indirect taxes. This money is used to fund public infrastructure, public services, welfare programs, etc. Moreover, taxes are critical in making India a developed nation in the future. The tax rates and tax-related regulations are different for different taxpayers in India. By adopting a progressive tax system, the Indian Government is trying to make an equitable society.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Budget 2024: Explainer On Changes In SIP Taxation
2	Budget 2024: F&O Trading Gets More Expensive?
3	Budget 2024-25: How Will New Tax Slabs Benefit The Middle Class?
4	What To Expect In The Budget 2024?
5	Unveiling the Budget 2024: Key Takeaways

Frequently Asked Questions (FAQs)

What are the different types of taxes we pay?
Common types of taxes an Indian citizen pays include income tax, goods and services tax (GST), property tax, and excise duty, each contributing to government revenues.
What happens if people don’t pay taxes?
If tax revenue falls short, the government may struggle to provide basic services, resulting in poor-quality infrastructure and public amenities.
Why is it mandatory to pay taxes?
Tax laws require individuals to pay taxes, as these funds are essential for the government’s operations and contribute to the nation’s economic stability.
How do taxes help in reducing inequality?
Taxes fund welfare programs, subsidies, and public services that assist lower-income groups, helping to bridge the wealth gap.
Can paying taxes improve our creditworthiness?
Yes, having a good tax record can enhance creditworthiness, particularly for individuals looking to secure loans or financial assistance.

September 24, 2024

What is Profit After Tax & How to Calculate It?

Profit After Tax is a key metric that shows the true profitability of a company. With the understanding of PAT, you can make better estimates about the financial health of a company, its investment potential, and its growth prospects.

In this blog, we’ll explain exactly what Profit After Tax means and why it’s such a big deal. We will present a simple step-by-step guide on how to calculate it, as well as the impact of DTL and DTA on PAT and key PAT ratios.

What is PAT?

PAT, or Profit After Tax, is also known as net profit and is the amount of income left over after deducting all operating expenses, interest, and taxes from the total revenues. PAT reflects the actual profitability of the business and provides an accurate picture of the profit left for the shareholders after fulfilling all kinds of obligations. It is considered one of the important financial health indicators and indicates the company’s efficiency in managing its expenses and taxes.

PAT is an important metric for investors and analysts when judging a company’s performance. A high PAT generally indicates a strong financial position, enabling the company to reinvest for growth, pay dividends, or reduce debt.

Calculation of PAT

The process of calculation of PAT involves the deduction of all the expenses from total revenue. Here’s a step-by-step process for calculating PAT:

Determine Total Revenue: Ascertain the total revenue or sales generated by the company during a certain period.
Subtract Cost of Goods Sold (COGS): Subtract the COGS, or the direct costs incurred to produce the goods or services. The resulting figure is known as Gross Profit.
Less Operating Expenses: Subtract all operating expenses like salaries, rent, utilities, administrative, depreciation, etc. to arrive at Operating Profit, known as EBIT.
Less Interest Expenses: Subtract interest expenses on loans or borrowings to get Earnings Before Tax (EBT).
Apply Tax Rate: Apply the appropriate tax rate on EBT and determine the amount of tax amount. Deduct the tax amount from EBT to arrive at Profit After Tax (PAT).

This process ensures that you eventually get the net profit or PAT, which reflects the company’s profitability in its true essence after deducting all expenses and taxes.

Formula: PAT = Total Revenue−COGS−Operating Expenses−Interest Expenses−Taxes

Importance of PAT

Profit After Tax (PAT) is an important metric due to the following reasons:

1. Indicator of True Profitability: PAT depicts the actual profit of a company after all expenses, which gives a proper view of its financial health.

2. Basis for Investment Decisions: Investors use PAT to evaluate the firm’s performance, judge its growth potential, and use this as a basis for their investment decisions.

3. Helps in Financial Planning: Companies always consider PAT before making any critical decision regarding reinvestment, expansion, debt reduction, or distribution of dividends.

4. Measure of Efficiency: PAT reflects the efficiency with which an organization controls its costs, expenses, and taxes.

5. Impacts Shareholder Value: A good PAT might increase dividends and appreciation in the market price of stocks, hence increasing shareholder value.

Impact of Deferred Tax Assets and Deferred Tax Liabilities on PAT

Impact of Deferred Tax Asset (DTA) on PAT	Impact of Deferred Tax Liability (DTL) on PAT
1. Increase in PAT in Future Periods:DTA can be utilized to reduce taxable incomes in future periods, thus increasing Profit After Tax.	1. Reduces Future PAT:DTL, in simple terms, basically accounts for the amount of taxes that are to be paid at some future date, which would reduce PAT.
2. Enhances Cash Flows:By reducing future tax liabilities, DTAs enhance the future cash flows of a company, with more funds available for reinvestment or distribution.	2. Decreases Future Cash Flows:As the DTLs become due, they result in a cash outflow that affects the liquidity of the company and may hamper reinvestments.

Key PAT Ratios and Metrics

Profit After Tax (PAT) can be used to calculate various ratios and metrics mentioned below:

1. Net Profit Margin Ratio:

Formula: Net Profit Margin = (Profit After Tax / Total Revenues) × 100
Use: This ratio represents the portion of revenues that a company retains as profit after taking into account all the expenses, including those related to taxes. A higher net profit margin would indicate better control over cost and more efficiency. This helps the analyst interpret the profitability of a firm in comparison with its peers.

2. Earnings Per Share (EPS):

Formula: EPS = (Profit After Tax – Dividends on Preferred Shares) / No of Outstanding Shares
Use: EPS reflects the profit earned by each outstanding share of the company. In other words, EPS is the net income a company has generated per share. A higher EPS relative to its peers shows the company is more profitable than its peers.

3. Return on Equity (ROE):

Formula: ROE = (Profit After Tax / Shareholders’ Equity) × 100
Use: ROE reflects the company’s efficiency in using shareholders’ investments to earn profits. A higher ROE compared to peers indicates more efficient management in generating profit. Therefore, it is a very important ratio for peer comparison.

4. Return on Assets (ROA):

Formula: ROA = (Profit After Tax / Total Assets) × 100
Use: ROA measures the profitability of a business in relation to its total assets. It helps the analyst or investor gauge how effectively the company has deployed its assets compared to other companies in the sector.

5. Dividend Payout Ratio:

Formula: Dividend Payout Ratio = (Dividends Paid / Profit After Tax) × 100
Use: The ratio indicates the percentage of earnings paid as dividends to its shareholders. This allows the investor to understand how well the company balances reinvesting for growth versus returning cash to shareholders.

Conclusion

An understanding of PAT and its related ratios is crucial to gauge the financial health of a company and make appropriate investment decisions. PAT shows not only the actual profitability of an enterprise but also acts as a key metric for other financial metrics that act as guidelines for investors and analysts. By being able to calculate and interpret PAT, you will be better equipped to grasp key details about the efficiency of the firm, its future growth potential, and overall performance and make well-informed investment decisions.

Frequently Asked Questions (FAQs)

How does PAT impact EPS?
PAT affects EPS directly as an increase in PAT increases the EPS and vice-versa if the number of outstanding shares remains constant.
What is the impact of DTL on PAT?
The PAT for future periods will be reduced as DTL increases taxes payable in the future.
What is the impact of DTA on PAT?
The PAT for future periods will increase as DTA decreases taxes payable in the future.
What is a good PAT margin?
A good PAT margin depends on various factors such as industry, company’s life cycle, etc., but generally speaking, the higher the PAT margin, the better profitability and cost management.
Why is PAT important to investors?
PAT helps the investor gauge the real profitability of a company, its financial health, and future growth potential.

September 23, 2024

Budget 2024: Explainer On Changes In SIP Taxation

The Mutual fund industry of India is currently valued at $0.66 trillion and is expected to grow to $1.61 trillion by 2029 in terms of assets under management (AUM). Investors are offered two modes of investment in mutual funds: Lumpsum and SIP. The calculation of taxes payable on lump sum investments is pretty straightforward, but what about SIP investments, which are a more popular way of investing among the general public?

In this blog, we will discuss the changes in STCG and LTCG tax introduced in the Budget 2024, process of calculating taxes on SIP and the impact of tax rate changes.

What is Capital Gains Tax?

It is a tax applicable to the profits earned from the sale of a capital asset. When you sell an asset at a price higher than initial buying price, you earn capital gains. In case of mutual funds, allotment is done based on the NAV.

For example – You bought one unit of a mutual fund having NAV of 100. Your total buying was 1*100 = INR 100. Now, after some time, you sold this one unit at 150. So, you earned 50*1= INR 50, i.e., capital gains.

It can be of two types based on the holding period of the asset:

Long term capital gains tax is the tax applicable to the profits earned upon selling the asset after a certain time period.
Short term capital gains tax is the tax applicable to the profits earned upon selling the asset before a certain period of time.

The time period for equity or equity oriented mutual funds is one year, which means STCG will apply if the holding period is less than a year and LTCG if the holding period exceeds one year. Keep in mind that the time period for distinction between long term and short term varies for different assets. However, in this blog we will only deal with equity mutual funds for easy understanding.

BUDGET 2024 Update

Currently, in LTCG in equity, there is no tax till the income of one lakh; post this limit, a 10% tax is applicable without indexation benefit. In the case of STCG, there is a flat 15% tax on gains without indexation benefit.

The budget introduced by the Government of India proposed the following changes:

LTCG for equity and equity-related instruments has been hiked from 10% to 12.5% and exemption limit has also been raised from INR 1,00,000 to INR 1,25,000

STCG for equity and equity-related instruments has been hiked from 15% to 20%

How Will the SIPs Be Taxed?

SIP or Systematic Investment Plan is a type of investment plan in which an investor invests small amounts periodically instead of a lump sum investment. Each installment of a SIP is considered as a separate investment for tax purposes due to which the holding period of each installment will be different from one another. Let’s understand how the SIPs will be taxed with the help of an example.

Suppose Rohan started a monthly SIP of INR 1,00,000 in an equity mutual fund for 2 years, starting from 1 Aug 2024 till 1 July 2026. On 1 Aug 2024, with an SIP amount of 1,00,000 he purchased 1,000 units with an NAV of 100 (1,00,000 INR /100 NAV = 1,000 units). With each SIP, he accumulated certain units of the mutual fund.

So, after 24 months, i.e. 1 July 2026, his total value of the portfolio is app. INR 30 lakhs (investment amount = 24 lakhs, profit = 6 lakhs). Now, on 2 July 2026, he wants to sell the entire mutual fund units with an NAV of 142.

Remember that, for calculation of capital gains, we use the First-in First-out (FIFO) method, i.e., the units which are purchased first assume to be sold first. As installments were invested at different points in time, we need to separate LTCG and STCG. The gains earned during the first 12 months will be termed as long term capital gains as one year is completed and gains earned in the last 12 months will be termed as short term capital gains because they are redeemed before completing one year.

Have a look at the table below:

Sl. No.	Date	SIP Amount	NAV	Units	Capital Gain	Holding Period (Months)	STCG	LTCG
1	01-Aug-24	1,00,000	100	1,000	42,000	23	–	42,000
2	01-Sep-24	1,00,000	105	952	35,238	22	–	35,238
3	01-Oct-24	1,00,000	98	1,020	44,898	21	–	44,898
4	01-Nov-24	1,00,000	106	943	33,962	20	–	33,962
5	01-Dec-24	1,00,000	103	971	37,864	19	–	37,864
6	01-Jan-25	1,00,000	105	952	35,238	18	–	35,238
7	01-Feb-25	1,00,000	109	917	30,275	17	–	30,275
8	01-Mar-25	1,00,000	107	935	32,710	16	–	32,710
9	01-Apr-25	1,00,000	111	901	27,928	15	–	27,928
10	01-May-25	1,00,000	104	962	36,538	14	–	36,538
11	01-Jun-25	1,00,000	112	893	26,786	13	–	26,786
12	01-Jul-25	1,00,000	107	935	32,710	12	–	32,710
13	01-Aug-25	1,00,000	99	1,010	43,434	11	43,434	–
14	01-Sep-25	1,00,000	108	928	31,725	10	31,725	–
15	01-Oct-25	1,00,000	118	847	20,339	9	20,339	–
16	01-Nov-25	1,00,000	119	840	19,328	8	19,328	–
17	01-Dec-25	1,00,000	121	826	17,355	7	17,355	–
18	01-Jan-26	1,00,000	124	806	14,516	6	14,516	–
19	01-Feb-26	1,00,000	134	746	5,970	5	5,970	–
20	01-Mar-26	1,00,000	132	758	7,576	4	7,576	–
21	01-Apr-26	1,00,000	127	787	11,811	3	11,811	–
22	01-May-26	1,00,000	135	741	5,185	2	5,185	–
23	01-Jun-26	1,00,000	135	741	5,185	1	5,185	–
24	01-Jul-26	1,00,000	140	714	1,426	0	1,426	–
	Total	24,00,000		21,127	6,00,000		1,83,852	4,16,148

He sold the entire holding with an applicable NAV of 142 on 2 July 2026, which earned him INR 6 lakhs as capital gains. Here,

Short term capital gains = INR 1,83,852
Long term capital gains = INR 4,16,148

Tax Calculation

Now, we will calculate the tax on the capital gains made by him.

Based on tax rates before Budget 2024:

LTCG after deduction = INR 4,16,148 – INR 1,00,000 = INR 3,16,148

LTCG tax rate = 10%

LTCG taxes = 10% * 3,16,148 = INR 31,615

STCG tax rate = 15%

STCG taxes = 15% of 1,83,852 = INR 27,578

Total taxes payable = INR 31,615 + INR 27,578 = INR 59,193

Based on tax rates proposed in Budget 2024:

LTCG after deduction = INR 4,16,148 – INR 1,25,000 = INR 2,91,148

LTCG tax rate = 12.5%

LTCG taxes = 12.5% * 2,91,148 = INR 36,394.

STCG tax rate = 20%

STCG taxes = 20% of 1,83,852 = INR 36,770.

Total taxes payable = INR 36,394 + INR 36,770 = INR 73,164

Particulars	Tax payable as per earlier rates	Tax payable as per new rates	Difference
STCG Tax	27,578	36,770	9,192
LTCG Tax	31,615	36,394	4,779
Total Tax Liability	59,913	73,164	13,251

From the above example, it is clearly visible that Rohan incurs a greater income tax liability due to the hike in capital gains tax rate introduced in Budget 2024.

Conclusion

Many new investors prefer starting their mutual fund journey through a Systematic Investment Plan (SIP) as it is the most popular investment method in equity mutual funds. However, understanding the taxation of returns earned is crucial.

The Budget 2024 has introduced changes to capital gains tax rates, resulting in higher tax liabilities for investors. It is important to understand the impact of the recent hike in Short term capital gains (STCG) and Long term capital gains (LTCG) rates. It is recommended to get in touch with your tax advisor for more detailed insights and calculations.

Frequently Asked Questions (FAQs)

What are the changes introduced in Budget 2024 in relation to capital gains tax?
In Budget 2024, the LTCG tax has been hiked from 10% to 12.5% and STCG tax increased from 15% to 20%.
What are the two types of capital gains?
Long term capital gains (LTCG) and short term capital gains (STCG) are the two types of capital gains.
How much capital gains are tax-free?
As per the Budget 2024, in the case of LTCG in equity, there is no tax till the income of 1.25 lakhs; post this limit, a 12.5% tax is applicable without indexation benefit.
Is the amount of tax automatically deducted from the profit?
The tax is not automatically deducted, investors must compute their gain and pay tax at the time of filing income tax return.
How can an investor invest in mutual funds?
Investors can invest in mutual funds either through SIP route or lump sum investment.

August 1, 2024

Budget 2024: F&O Trading Gets More Expensive?

Futures & Options (F&O) trading is no walk in the park—it can take years to become profitable. And with various charges and taxes eating into your profits, it’s a bit of a negative sum game. Now, the Indian government has hiked the Securities Transaction Tax (STT) in the Union budget of 2024-25. But what exactly is STT, and what is the motive behind this increase?

In this blog, we will discuss the changes introduced in the Budget 2024-25 regarding the Securities & Transaction Taxes and explore what it means for traders.

What is Securities Transaction Tax (STT)?

Securities Transaction Tax (STT) is a form of direct tax charged on the buying and selling of securities listed on the stock exchanges, i.e. NSE and BSE in India. It increases the transaction cost for the market participants and reduces overall returns. It was introduced in 2004 by P. Chidambaram, former finance minister. It has the following features:

STT is calculated as a percentage of the transaction value.
The rate is different for different assets.
STT is a source of revenue for the government.
STT is collected by stock exchanges, i.e., NSE and BSE and then subsequently paid to the central government.

Did you know?

In 2013, brokers and trading members protested against the STT, and the government was forced to lower the taxation rate of STT.

Impact of STT

The STT significantly affects investors and traders in the following ways:

Transaction Cost – The imposed STT rate elevates the cost of trading, which ultimately reduces net profit, particularly for active traders who trade frequently.
Liquidity – As the STT increases trading costs and lowers profits, some traders might avoid the market and seek alternative investment options, affecting the overall market volume.
Investment Strategies – Taxes such as STT may influence investment strategies, prompting market participants to favor long-term investments over short-term trades.

Important updates from Budget 2024-25

The Budget 2024 introduced changes in Securities & Transaction Tax rates applicable to the F&O segment. Experts believe that the STT hike aims to discourage retail traders from engaging in speculative activity in the F&O segment. The changes introduced are:

STT applicable on the futures increased from 0.0125% to 0.02%
STT applicable on the options premium increased from 0.0625% to 0.1%

Impact of STT hike on F&O Traders

Let’s understand the impact of change in STT rates on Futures & Options (F&O) trading.

Impact on Futures

Let’s suppose a trader buys 5 lots (1 lot = 25 qty.) of Nifty futures at INR 24,000 and sells it for INR 24,050; then the calculation of STT will be:

As per previous STT rate: The previous STT rate for futures was 0.0125%, which was applicable on the sell side of the transaction. In the above example, the 5 lots of Nifty futures were sold for 24,050, and the STT for this transaction would be:

STT = 0.0125% * 24,050 * 25 * 5 = INR 375.78

As per revised STT rate: The new STT rate for futures is hiked from 0.0125% to 0.02%. Based on the changes introduced in Budget 2024-25, the STT on the transaction would be:

STT = 0.02% * 24,050 * 25 * 5 = INR 601.25

So, the increase in the STT rate has increased the tax liability and decreased the net profit.

Impact on Options

Suppose Nifty is trading at 24,000, and the trader sells 10 lots of call options with a strike price of 24,200 for a premium of INR 60.

– 1 Lot size of Nifty = 25

– Total premium received = 25*10*60 = INR 15,000

For Options, the STT will be calculated as a percentage of the option premium shorted by the trader or the intrinsic value of long options that are exercised. In our example, the trader has initiated a short position, so the calculation of STT is as follows:

As per previous STT rate: The previous STT rate for options was 0.0625%, applicable to the option premium received from the short positions.

STT = 0.0625% * 15,000 = INR 9.375

As per revised STT rate: The new STT rate for options is hiked from 0.0625% to 0.1%. Based on the changes introduced in Budget 2024, the STT would be:

STT = 0.1% * 15,000 = INR 15

From the above case, we can conclude that due to an increase in the STT rate, the trader is liable to pay more in taxes, and thus, returns are reduced.

Views of SEBI on the F&O Trading

The Securities and Exchange Board of India regulates the financial markets in India and aims to protect the interests of market participants, i.e. the investors and traders. In recent years, there has been a sharp rise in the participation of retailers in the F&O trading. In Q1 2024, 84% of all equity options traded globally were on Indian exchanges, i.e., the NSE and BSE, up from just 15% a decade ago.

According to a study conducted by the SEBI in 2023, 9 out of 10 retail traders lose money in the F&O trading of equity segment with an average loss of INR 50,000. The worst part is the majority of these losses are incurred by those who cannot afford to lose. Now, the SEBI is worried about this and is looking to curb the speculation activity happening in the F&O segment.

In order to protect retail traders, the SEBI formed an expert panel led by G Padmanabhan, former Reserve Bank of India Executive Director. Some of the measures suggested are:

Proposal to increase the minimum lot size from INR 5 lakh to INR 25 lakh.
Increase in upfront margin requirements.
Increased monitoring of intraday position limits.
Decreasing the number of strike prices for option contracts.
Limiting weekly options to one expiry per exchange per week.

The expert panel has presented the above measures, and the SEBI is quite serious regarding this and may come up with a consultation paper in the coming months.

Read Also: What To Expect In The Budget 2024?

Conclusion

Securities Transaction Tax (STT) is one of the taxes imposed based on the transaction value of securities. It reduces the net return for the market participants, i.e., Traders and Investors.

In Budget 2024-25, the STT rates for the F&O segment have been increased from 0.0125% to 0.02% for futures and from 0.0625% to 0.1% for options premium. This hike is anticipated to affect market behaviour significantly. Experts suggest that the aim of this increase is to curb speculative trading in the F&O segment.

Frequently Asked Questions (FAQs)

What is STT?
The Securities Transaction Tax (STT) is a form of direct tax charged on the buying and selling of securities. It is levied as a percentage of the transaction value.
What are the changes introduced in Budget 2024-25 related to STT?
The STT was hiked for both futures and options segment. For futures, the STT has been increased from 0.0125% to 0.02%, and for the options premium, the STT has been increased from 0.0625% to 0.1%.
When was STT introduced in India?
In India, the Securities Transaction Tax (STT) was introduced in 2004 by Finance Minister P. Chidambaram.
Why is SEBI worried about rise of retail participation in the F&O segment?
According to a study conducted by the SEBI in 2023, 9 out of 10 individual traders lose money in equity F&O trading, and the concerning part is most of the losses occur by those who can’t afford to lose. This is why the SEBI aims to reduce retail participation in the F&O segment.
Who regulates financial markets in India?
The Securities and Exchange Board of India (SEBI) regulates the financial markets in India.

July 25, 2024

Budget 2024-25: How Will New Tax Slabs Benefit The Middle Class?

The Government of India introduced the Union budget for the 2024-25 on July 23, 2024. It was the first budget of the third term of the Modi Government. The budget featured a wide array of changes to achieve economic development targets.

For the middle class, some of the key features of the budget are introduction of new tax slabs under the new regime, hike in the standard deduction limit, etc.

In this blog, we will discuss the changes introduced in Budget 2024 for the general public, i.e., the new tax slabs and standard deduction.

What is Income Tax and the Slab Rates?

Income tax is the direct tax which is imposed on income or profits earned by individuals and corporations. It is a major source of revenue for the government; in fact, almost 19% of the govt. revenue comes from Income tax only in FY 23-24. This 19% covers Corporation Tax (CIT) and Personal Income Tax (PIT) including Securities Transaction Tax (STT).

India has a progressive income tax system, which means people with higher incomes pay more of their income in taxes. Income is divided into different slabs, each with a specific tax rate.

Additionally, India offers two tax regimes: the old tax regime and the new tax regime. The new regime offers a lower tax rate but comes with fewer deductions. An individual can choose the regime that best suits their situation.

In the union budget of 2024-25, the govt. has revised the tax slabs under the new tax regime. Keep in mind that there is no modification in slabs of the old tax regime. Let’s have a look at the existing slabs of new tax regime:

Income Tax Slab (in INR)	Income Tax Rate (%)
Up to 3,00,000	0
3,00,001 – 6,00,000	5%
6,00,001 – 9,00,000	10%
9,00,001 – 12,00,000	15%
12,00,001 – 15,00,000	20%
15,00,001 and above	30%

Slab Rates Proposed in Budget 2024-25

The income tax slab rates for the new tax regime proposed in Budget 2024-25 are:

Income Tax Slab (in INR)	Income Tax Rate (%)
Up to 3,00,000	0
3,00,001 – 7,00,000	5%
7,00,001 – 10,00,000	10%
10,00,001 – 12,00,000	15%
12,00,001 – 15,00,000	20%
15,00,001 and above	30%

Did you know?

Finance Minister Nirmala Sitharaman made history on 23 July 2024, by presenting her seventh consecutive budget—six annual budgets and one interim budget. No other finance minister in India’s history has reached this milestone. This achievement surpasses the previous record held by former Finance Minister Morarji Desai, who presented six budgets in a row.

What is Standard Deduction?

In the Income Tax Act, we have certain exemptions and deductions to reduce our tax liability. Deductions are provisions that allow an individual to reduce his/her income and, thus, reduce the tax liability.

Standard deduction is one of the most popular deductions claimed by individuals. It is a flat deduction that an individual can subtract from the total salary or pension received in a given financial year. Remember that the standard deduction is not available for business income.

An important change regarding the standard deduction under the new tax regime was announced in the Budget 2024-25. The limit was hiked from INR 50,000 to INR 75,000. Similarly, for family pensioners, the deduction has been increased from INR 15,000 to INR 25,000.

How Much Tax Can You Save?

Now the main question arrives: how much can an individual actually save because of the above-mentioned changes? Let’s have an analysis on this.

We will calculate the income tax based on the new slab rates and the slab rates prior to the Budget 2024-25. Suppose Raman works in an MNC and earns INR 13,50,000 from salary in a given financial year. Considering he has no other source of income, let’s calculate his tax liability based on existing and revised slab rates of new tax regime:

Based on the existing slab rates (prior to Budget 2024-25)

Salaried Income = INR 13,50,000

Net Income after standard deduction of INR 50,000 = INR 13,00,000

Tax Calculation

Slab (INR)	Income Tax Rate	Income Tax (INR)
Up to 3,00,000	0%	0
3,00,001 to 6,00,000	5%	15,000
6,00,001 to 9,00,000	10%	30,000
9,00,001 to 12,00,000	15%	45,000
12,00,001 to 13,00,000	20%	20,000

Total tax payable as per the existing slabs of new tax regime is INR 1,10,000.

Based on New Slab Rates (announced in Budget 2024-25)

Salaried Income = INR 13,50,000

Income after Standard Deduction of INR 75,000 = INR 12,75,000

Tax Calculation

Slab (INR)	Income Tax Rate	Income Tax (INR)
Up to 3,00,000	0%	0
3,00,001 to 7,00,000	5%	20,000
7,00,001 to 10,00,000	10%	30,000
10,00,001 to 12,00,000	15%	30,000
12,00,001 to 12,75,000	20%	15,000

Total tax payable as per latest slabs of the new tax regime is INR 95,000.

So, in our example, if an individual is earning INR 13.5 lakhs from salary, then he or she can save INR 15,000 in taxes based on the revised tax slabs under new tax regime.

Conclusion

In summation, the tax slab rate changes for new tax regime introduced in Budget 2024, along with an increase in the standard deduction, will result in increased tax savings for the middle class. The reduced tax liability will result in a rise in disposable income, resulting in an increase in consumption and ultimately end up in boosting the growth of the Indian economy.

However, you must be wondering why the government has announced these changes. If people pay less tax, doesn’t that mean the government earns less? The answer to this is not that simple. There are a few changes announced in the Budget 2024-25 which are not beneficial for the general public. For example, there’s an increase in the Short-Term and Long-Term Capital Gains tax rates, removal of the indexation benefit for real estate, etc. We’ll discuss these changes in more detail in another blog.

Frequently Asked Questions (FAQs)

What is Income Tax?
Income tax is the tax imposed on the income or profits earned by individuals and businesses. It is a direct tax and a major source of revenue for the government.
What is standard deduction?
A standard deduction is a flat deduction that an individual can subtract from the total salary or pension earned in a given financial year.
In which regime are the changes introduced in Budget 24-25?
The govt. introduced changes in slab rates of the new tax regime in the Union budget of 2024-25.
What are the changes introduced with respect to the standard deduction in Budget 2024-25?
The standard deduction has been hiked from INR 50,000 to INR 75,000 for salaried individuals and from INR 15,000 to INR 25,000 for family pensioners.
What will be the impact of increased standard deduction for the middle class?
An increase in the standard deduction will result in higher tax savings and higher disposable income.

July 25, 2024

Semiconductor Industry in India

The tiny chips in electronic devices that often go unnoticed are an important part of the contemporary world. Semiconductors are the powerful brains that drive everything from the smartphones in our pockets to the ground-breaking artificial intelligence revolutionizing several industries. With India’s increasing prominence in the global semiconductor industry, it is important to know the steps taken by the Government of India to make India a global hub of the semiconductor industry.

In today’s blog, we will explore the semiconductor industry in India, the India Semiconductor mission, factors that favor the semiconductor industry, and its future outlook.

Overview of the Semiconductor Industry in India

The Indian semiconductor market is experiencing strong growth and is expected to grow at 17.10% CAGR between 2024 and 2028 due to its growing population, rising disposable incomes, etc. India aims to become a global leader in the semiconductor industry, with its domestic semiconductor consumption projected to exceed $80 billion by 2028. This industry is fiercely competitive, with major players from countries like the United States, China, South Korea, and Taiwan dominating the market.

The Indian Government wants to boost the semiconductor industry with the ‘Make in India’ campaign and has also announced plans to establish semiconductor fabrication plants in the country.

India Semiconductor Mission (ISM)

Indian Semiconductor Mission is a specialized and independent business division of Digital India Corporation (DIC). The aim of the mission is to make India self-reliant in terms of semiconductors.

The mission received an allocation of INR 76,000 crore for the establishment of three semiconductor units. The approved three semiconductor units are:

Semiconductor Fabrication plant: Tata Electronics Private Limited (“TEPL”) will collaborate with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, to set up a semiconductor fabrication unit in Gujarat. PSMC is well known for its logic and memory foundry segments and has six semiconductor foundries in Taiwan. The fabrication plant will have a capacity of 50,000 wafer starts per month (WSPM).

Semiconductor ATMP unit in Assam: Tata Semiconductor Assembly and Test Pvt Ltd. (“TSAT”) will set up a semiconductor ATMP (Assembly, Test, Marking and Packaging) unit in Assam. The unit is developing indigenous advanced semiconductor packaging technologies and will have a capacity of 48 million semiconductor chips per day.
Semiconductor ATMP unit for specialized chips: CG Power will partner with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, to set up a semiconductor unit in Gujarat. Renesas is a market leader in developing specialized chips and operates 12 semiconductor facilities. The unit will have a capacity of 15 million semiconductor chips per day.

The chips developed in the above three units will have applications in various industries, such as electric vehicles, consumer electronics, mobile phones, etc. Moreover, these units will generate 20,000 direct jobs and about 60,000 indirect jobs.

Favorable Factors for the Semiconductor Industry in India

There are numerous factors that will help India to become a global leader in the semiconductor industry. Some of these factors are:

Skilled Workforce: India has a large workforce in the fields of Science, Technology, Engineering, and Mathematics (STEM), which is required for semiconductor design, manufacturing, etc.
Cost Advantage: Companies are investing in India due to the lower cost of production. Moreover, the location of India is also a benefit as it is close to major semiconductor markets in Asia, which reduces transportation costs.
Global supply chain diversification: Until now, the semiconductor industry has been concentrated in a few countries, which makes the industry prone to concentration risk and can result in supply shocks. The development of the semiconductor industry in India will reduce the concentration risk.
Government support: The government of India has launched ISM and has introduced favorable policies.

Future Outlook of Semiconductor Industry

The future of the semiconductor industry looks bright due to the following reasons:

The demand for semiconductors in AI and ML applications is projected to experience substantial growth.
IoT (Internet of Things) devices, including smartphones, industrial automation, and healthcare, will boost demand for semiconductors.
The rollout of 5G networks is fuelling the need for advanced semiconductors in mobile devices, base stations, and IoT applications.
The growth of renewable energy sources, such as solar and wind power, will drive the demand for semiconductors used in energy conversion and storage systems.

Conclusion

To summarize, the semiconductor industry has a lot of growth potential and is an exciting and dynamic space. The Government of India has identified this opportunity and launched the India Semiconductor Mission to make India a semiconductor hub in the future. Many foreign companies have partnered with Indian firms to set up facilities in India. Moreover, factors such as lower cost of production, skilled workforce, strategic location, and favorable government policies will help the semiconductor industry grow in India.

Frequently Asked Questions (FAQs)

What are Semiconductors?
A semiconductor is a material with electrical conductivity ranging between that of an insulator and a conductor and has unique electronic properties.
What are the favorable factors for the semiconductor industry in India?
Lower cost of production, skilled workforce, and government support are a few factors that support the growth of the semiconductor industry in India.
What is ISM?
ISM refers to the India Semiconductor Mission, which was launched by the Government of India.
What is the expected growth rate of the semiconductor industry in India?
The Indian semiconductor industry is expected to grow at a CAGR of 17.10% between 2024 and 2028.
Which foreign companies are collaborating with Indian firms to establish semiconductor units in India?
Powerchip Semiconductor Manufacturing Corp (PSMC), Renesas Electronics Corporation, and Stars Microelectronics are a few prominent companies collaborating with Indian firms to establish semiconductor manufacturing facilities.

July 23, 2024

What is National Company Law Tribunal?

When there is a dispute between two people, they appear in court and lay out their case. The judge passes a judgment based on the law. However, have you ever considered what a corporation would do if there were a dispute with another corporation? The National Company Law Tribunal (NCLT) has been established to settle disputes between companies.

In this blog, we will explore NCLT in detail and understand its functions.

What is NCLT?

The Companies Act of 2013 established the National Company Law Tribunal, or NCLT, as a special court to handle business-related disputes. NCLT doesn’t handle criminal cases for violations of the Companies Act. The NCLT has several benches around the nation and, thus, provides a simpler way for corporations to resolve their problems.

The Justice Eradi Committee recommended the creation of the National Corporate Law Tribunal as a quasi-judicial entity to handle insolvencies and malpractices of Indian companies. The tribunal was established on 1 June 2016 under Section 408 of the Companies Act, 2013.

Objective of NCLT

NCLT plays an important role in protecting the rights of all stakeholders and aims to achieve the following objectives:

Its primary goal is to resolve disputes involving companies through its numerous benches across India.
NCLT assists businesses in streamlining their insolvency procedures.
NCLT protects the rights of all stakeholders and promotes a business-friendly environment.
It ensures restructuring processes follow the regulations and are in the interest of stakeholders.

Functions of NCLT

The major tasks performed by NCLT are as follows:

Registration of Companies: The NCLT is authorized to settle disputes about company registration. It has the authority to cancel a company’s registration at any moment and hold members accountable for not meeting legal requirements.
Class action: It prevents companies from engaging in activities outside the Memorandum of Association (MOA) and Article of Association (AOA). A class action can be filed against both private and public companies.
Transfer of Shares: The NCLT handles complaints about company shares and securities transfers. NCLT intervenes if a company refuses to transfer securities.
Deposits: Since the NCLT was established, they have handled all deposit-related matters. Disgruntled depositors now have the option to sue the corporation and seek compensation for any acts that affect their rights as depositors.
Investigation: Based on the application of 100 members, the NCLT has the complete authority to look into any matter about the corporation. An individual can also convince NCLT to look into the matter even if they have no connection to the business. An investigation can be launched in India or around the globe.
Asset Freezing: According to section 221 of the Companies Act of 2013, the NCLT is authorized to freeze the company’s assets and can initiate investigations.
Conversion of Company’s Status: Sections 13 to 18 of the Indian Companies Act 2013 state that a company may only change from a public limited company to a private limited company after the NCLT’s approval. In addition, section 459 of the Companies Act 2013 permits the NCLT to impose further requirements.

Benches of NCLT

The NCLT operates across India through its various benches –

National Company Law Tribunal (NCLT) Benches	Jurisdiction
NCLT Ahmedabad Bench	State of GujaratUnion Territory of Daman and DiuUnion Territory of Dadra and Nagar Haveli
NCLT Allahabad Bench	State of Uttar PradeshState of Uttarakhand
NCLT Amaravati Bench	State of Andhra Pradesh
NCLT Bengaluru Bench	State of Karnataka
NCLT Chandigarh Bench	State of HaryanaState of PunjabState of Jammu and KashmirState of Himachal PradeshUnion Territory of Chandigarh
NCLT Chennai Bench	State of Tamil NaduUnion Territory of Puducherry
NCLT Cuttack Bench	State of OdishaState of Chhattisgarh
NCLT Delhi Bench	Union Territory of Delhi
NCLT Principal Bench	Union Territory of Delhi
NCLT Guwahati Bench	State of Arunachal PradeshState of AssamState of ManipurState of MizoramState of MeghalayaState of NagalandState of SikkimState of Tripura
NCLT Hyderabad Bench	State of Telangana
NCLT Indore Bench	State of Madhya Pradesh
NCLT Jaipur Branch	State of Rajasthan
NCLT Kochi Bench	State of KeralaUnion Territory of Lakshadweep
NCLT Kolkata Branch	State of West BengalState of BiharState of JharkhandUnion Territory of Andaman and Nicobar Islands
NCLT Mumbai Bench	State of GoaState of Maharashtra

Advantages of NCLT

The advantages of NCLT are as follows:

It serves as a specialized court for corporate disputes, which results in quick resolution of the disputes.
NCLT consists of judicial and technical members to give a fair judgment on the dispute.
It has multiple branches and helps reduce the time to resolve disputes.
NCLT encourages better corporate governance and protects stakeholder’s interests.

Conclusion

In conclusion, the National Company Law Tribunal was established on 1 June 2016 to settle business-related conflicts like insolvency and other corporate concerns. It has various branches across the country, resulting in quick dispute resolution. It helps businesses by giving them a better working environment and also safeguards the interests of the stakeholders. However, the decisions of NCLT can be challenged in the National Company Law Appellate Tribunal, which can be further appealed in the Supreme Court of India.

Frequently Asked Questions (FAQs)

What is NCLT?
National Company Law Tribunal, or NCLT, is a specialized court that handles various company-related disputes.
What does NCLT stand for in financial terms?
NCLT refers to the “National Company Law Tribunal”.
Where is the headquarters of NCLT?
Although the NCLT’s main office is in New Delhi, it has other benches all over India.
What is the difference between a court and a tribunal?
A court is a part of the conventional Indian judicial system and resolves criminal and civil cases. In contrast, a tribunal is regarded as an organization with the authority to function as a court on cases of special matters, such as issues linked to companies.
Can I file an appeal against the NCLT decision?
A challenge to any NCLT ruling may be made through the National Company Law Appellate Tribunal.
Who is the president of the National Company Law Tribunal?
Shri Ramalingam Sudhakar is the current president of the National Company Law Tribunal.

July 19, 2024

Category: Personal Finance

Top 10 Stock Market YouTube Channels

Top Stock Market YouTube Channels Comparison

Best YouTube Channel Overview

1. Trading Chanakya

2. Pranjal Kamra

3. Amit Kukreja

4. CA Rachana Phadke Ranade

5. Yadnya Investment Academy

6. The Financial Analyst

7. Elearnmarkets

8. Money Grower

9. Asset Yogi

10. Nitin Bhatia

Conclusion

Frequently Asked Questions (FAQs)

Who gives the best stock advice on YouTube?

Can I learn trading on YouTube?

Who is the best stock market teacher?

Which of the following are the 5 best YouTube channels to learn about the Indian stock market?

Can I trade based on the information provided by a YouTube channel?

What is LTP?

How is LTP Calculated in the Share Market?

LTP vs Other Key Price Metrics

Uses of LTP in Stock Trading

LTP and Technical Analysis

Factors Affecting LTP

Conclusion

Frequently Asked Questions

Is LTP the same as the closing price?

How often does LTP change?

Is LTP useful for long-term investors?

Why does LTP fluctuate during market hours?

Can LTP be manipulated?

Performance Table: Best Stock Market Movies and Web Series

List of Best Stock Market Movies in Hindi

Overview of the Best Share Market Movies and Web Series

1. The Wolf of Wall Street (2013)

2. Scam 1992: The Harshad Mehta Story (2020)

3. Margin Call (2011)

4. Inside Job (2010)

5. Rogue Trader (1999)

6. Wall Street

7. The Big Short

8. Boiler Room

9. Too Big to Fail

10. Enron: The Smartest Guys in the Room

11. Billions

12. Baazaar

13. Gafla

14. Black Monday

15. Equity

Conclusion

Frequently Asked Questions (FAQs)

Which is the best movie based on the stock market?

Which Indian web series is based on the Indian Stock Market crash?

What was the reason for the stock market fall in the year 2008?

Who played the role of Harshad Mehta in the Scam 1992 web series?

Who exposed the Scam of 1992?

What is Tax?

Types of Taxes in India

1. Direct Tax

2. Indirect Tax

How Does the Government Use Taxes?

Some Interesting Facts About Taxpayers in India

Importance of Taxes in Making India a Developed Nation

Conclusion

Frequently Asked Questions (FAQs)

What are the different types of taxes we pay?

What happens if people don’t pay taxes?

Why is it mandatory to pay taxes?

How do taxes help in reducing inequality?

Can paying taxes improve our creditworthiness?

What is PAT?

Calculation of PAT

Importance of PAT

Impact of Deferred Tax Assets and Deferred Tax Liabilities on PAT

Key PAT Ratios and Metrics

Conclusion

Frequently Asked Questions (FAQs)