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What is Rollovers in Stock Market?

Every month, as futures contracts near expiry, a unique buzz builds in the stock market. Instead of closing their positions, many traders carry them forward into the next month’s series. This process is called a rollover. Still, a lot of people wonder what rollover really means in the stock market, how it works, and why it matters.

In this blog, we will explain rollover in simple words and show why carrying futures positions forward is an important part of trading.

What is Rollover in the Stock Market?

Rollover in the stock market means transferring your futures position from the current month’s series to the next month’s series that too before expiry. When a trader moves his position to the next month, it is called rollover in the stock market.

This process happens on both sides :

If you are holding a long position (buy) in the current month’s futures contract, you can roll it over by closing that position and simultaneously creating a new long position in the next month’s contract. This allows you to continue your bullish view without interruption.
On the other hand, if you are holding a short position (sell), you can also maintain it through rollover. To do this, you square off your existing short position in the current series and open a fresh short position in the next month’s futures. This way, your bearish view remains intact even after the current contract expires.

In India, the monthly expiry of futures contracts usually takes place on the last working Thursday of every month. Before that, traders roll over their positions and shift them to the next month.

The purpose of a rollover is to extend an open futures position into the next month’s contract without letting it expire. This process helps gauge overall market sentiment and reveals whether traders are maintaining or shifting their confidence in the prevailing trend.

Why Rollovers Matter: Purpose and Significance

In futures trading, rollover in the stock market is not just a position transfer, but it also gives many big signals and benefits. Know below what is the importance of rollover and why this data is so important for market analysts and traders.

Avoiding settlement : Every futures contract has a fixed expiry date. If the trader holds it till expiry, he has to face settlement or delivery. But when the trader wants to continue his view further, he closes the position of the current series and takes the same position again in the next series. This is called rollover, which can avoid settlement.
Correct use of leverage : For traders trading on margin, rollover is an effective way to maintain their position in less funds. If a trade is profitable and the trader wants to hold it till the next month, he can rollover without investing additional capital. This makes better use of capital possible.
Change in volume and liquidity : As the expiry approaches, traders start building positions in the new month’s contract by exiting the old futures contract. Due to this, trading volume and liquidity gradually shift to the next series. Keeping this change in mind, experienced traders take timely entry in the new series so that better prices and volume can be obtained.
Indication of Market Sentiment : Rollover data helps in understanding the mood of the market. If most traders are increasing their positions in the same direction till the next month, then it shows that confidence remains in the market. On the other hand, if the rollover is decreasing or is happening in the opposite direction, then it may be a sign of uncertainty or change in trend. This is why analysts and traders take this data very seriously.

How to Roll Over Futures Positions

How to roll over futures in the stock market is a question that comes to the mind of every new trader. The process of rollover is technically easy, but timing, cost and correct entry are very important in it.

Square off the existing position : The first step to rollover is to close your existing futures position before expiry. If you have bought, then sell it, and if you have sold, then buy it. This closes the position of your old series.
Create the same position in the next series : Now open a new position in the same direction in the next month’s futures series of the same stock or index. This keeps your trading view continuous without a break. For example, if you bought Nifty in July, then now buy Nifty of August series.
Keep costs in mind : There are some important costs involved in rollovers such as brokerage charges, Securities Transaction Tax (STT), and bid-ask spread. Sometimes, when liquidity is low in the new series, there is a slight difference in the prices, which can increase the trading cost. Therefore, it is better to do price trend, volume and chart analysis while rolling over.

Rollover is not just a technical move, it is a way to keep your trading strategy on track. A rollover done at the right time not only manages risk, but also helps in understanding market sentiment.

Rollover vs Fresh Positions: What’s the Difference?

Parameter	Rollover Position	Fresh Position
Definition	Carrying forward an existing futures position to the next month’s contract	Initiating a brand-new position in the next month’s contract without any prior link
Purpose	To continue an existing market view by shifting position before expiry	To enter a new trading opportunity based on current market trends
Where It Reflects	Visible in rollover data and open interest shift between series	Reflected through a rise in open interest due to new participants
Market Sentiment	Indicates that traders are maintaining confidence in their earlier view	Suggests new traders are entering with a fresh outlook or expectation
Risk Factor	Can lead to losses if the previous trend reverses unexpectedly	Based on current data and trend, so risk may be more manageable
Trading Cost	Slightly higher due to exit and re-entry (two transactions)	Lower cost as it’s a single entry transaction

Who Uses Rollovers: Retail vs Institutional Perspective

Rollover in the stock market is used strategically not only by retail traders but also by large institutional players.

Retail traders usually rollover to maintain their speculative positions till the next month. Their aim is to keep following the trend in low margin and capture short term profits.

On the other hand, institutional investors, such as hedge funds, mutual funds or prop trading firms, use rollover for long term strategy or hedging. These institutions trade in large volumes and their activities affect the direction of the market.

The rollover data of FII and DII is of special importance, because rolling their large positions indicates whether they are positive or negative about the market.

Risks & Mistakes to Avoid While Rolling Over

While doing rollovers in futures trading, traders often face huge losses due to small mistakes. The 5 important points given below will help you to be cautious.

Lack of liquidity : The volume in the next series of futures contracts is low in the beginning. Due to low liquidity, execution can be slow or at a high price.
Risk of price slippage : At the time of rollover, prices can change rapidly, making it difficult to get entry or exit at the desired rate.
Wrong calculation of spread : Not estimating the bid-ask spread and rollover cost correctly can reduce trading profits.
Not re-assessing the view : Many traders rollover with the old view, without seeing whether the market direction is still the same or not.
Wrong selection of time : Waiting till the last day for rollover can be risky. It is better to plan the timing and roll in advance.

Rollover Process: An Example

The budget week of February 2025 saw a unique activity in Bank Nifty futures. Bank Nifty saw a huge rollover with high open interest a few days before expiry and premiums on new contracts rising. This indicated that traders wanted to hold their bullish positions for the next month. It was not just numbers it reflected positive budget expectations across the banking sector.

A smart trader could have read this data and understood that there was bullish carry forward and not short covering in the market. This meant that the big players were expecting a rally in banking stocks.

This teaches us that it is important to look at rollover data not just in percentage terms but also in the context of market conditions and news. Rollover, seen in the right context, can become a strong trading signal.

Conclusion

Every trade in the market is not only about profit or loss; it also reflects the sentiment and expectations of participants. Rollover is one such signal. When a position is carried forward to the next month’s contract, it reflects the trader’s confidence in continuing a particular view on future price movement. As each expiry approaches, monitoring rollover activity can provide valuable insight into market sentiment and may serve as an important input for developing future trading strategies.

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Frequently Asked Questions (FAQs)

What is rollover in the stock market?
Rollover means transferring your existing futures position to the next month’s series.
When does rollover happen in India?
Rollover is usually highest in the last week before the expiry of every month.
Is rollover a good or bad signal?
It depends on which direction the rollover is taking place and with what open interest.
How to roll over futures manually?
After squaring off the position of the old series, a new position has to be taken in the same direction in the next series.
Do all traders need to roll over?
No, only those traders who want to maintain the trading view even after expiry.
Does rollover affect stock prices?
Yes, more or less rollover can affect the price of the stock or index according to the trend, sentiment.
Where can I see rollover data?
Rollover data is available on the NSE website, trading platforms and market research reports.

August 25, 2025

What is Swaps Derivatives?

Swaps are one of the most powerful yet lesser-known instruments in the world of derivatives. Unlike futures, options or forwards that most people are familiar with, swaps are agreements between two parties to exchange financial obligations. They are widely used to manage risks such as interest rate fluctuations and currency movements, making them an essential part of today’s global financial markets.

In this blog we will explain what swap derivatives are, how they work and the different types you should know about. Whether you are a finance student, trader or investor, this guide will help you build a clear understanding of swaps.

What is Swap in Derivatives?

Swaps derivatives are a type of financial contract in which two parties agree to exchange future cash flows. The exchanged cash flows are typically linked to financial variables such as interest rates, currencies, commodity prices, or credit risk, and the primary purpose of swaps is to hedge risk, manage exposure, or speculate on market movements. This exchange takes place on the basis of predefined rules and a notional amount, but the actual amount is not exchanged. Swaps often take place in the OTC (Over-the-Counter) market, that is, they are not listed on a bank or exchange, but are directly negotiated between two parties. This is why they are completely customized; the parties can set the terms as per their convenience. Not being standardized like futures and options, swaps in derivatives are more flexible, but they also have counterparty risk associated with them. The biggest advantage of swaps derivatives is that with their help companies can protect themselves from interest rate risk, currency fluctuation or commodity price volatility. Sometimes they are also used for arbitrage or speculative purposes.

History & Evolution of Swaps Derivatives

1. Early 1980s

Interest rate swaps were conceptualized in the late 1970s, and were used in the interbank market in the early 1980s. The British Bankers’ Association standardized them, making them increasingly popular in financial markets.

2. 1981: The First Currency Swap between IBM and World Bank

The first documented and high-profile deal involving swap derivatives occurred in 1981, when IBM and the World Bank signed the first currency swap agreement. The deal proved to be a major turning point in international financial strategy.

3. 1990s: The Rise of Credit Default Swaps (CDS)

Bankers Trust in 1991 and J.P. Morgan in 1994 used CDS as a form of credit risk management. It was a type of contract that provided financial protection in case of default.

4. 2008: Global Financial Crisis and the role of CDS

Excessive use of CDS without proper controls worsened the financial crisis of 2008. Large institutions like AIG came close to collapse due to CDS exposure, after which global regulators tightened regulation of the swap market.

5. 2025 Statistics

According to the ISDA report, the notional outstanding of global OTC derivatives was $699.5 trillion by the second half of 2024, of which interest rate derivatives alone accounted for $579 trillion. This segment makes up the largest part of the OTC derivatives market and has recorded a growth of around 4.9% year-on-year.

How Do Swaps Derivatives Work?

Nature of the contract : A swap derivative is a bilateral contract in which two parties agree to exchange future payments on pre-determined terms for a fixed period of time. These payments are based on an underlying financial factor, such as interest rates or currency rates.
Calculation of payments : In this contract, payments are fixed based on a fixed notional amount. This amount is only for calculation, and there is no actual transaction. For example, one party pays at a fixed interest rate, while the other pays at a floating rate .
Interval and settlement : Both parties calculate their respective payment amounts at a fixed interval (such as every 6 months). In the end, only the difference between the two payments is transacted. This is called net settlement. This prevents either party from making a full payment unnecessarily.
Change in value : The value of a swap contract keeps changing over time. As the underlying rate (e.g. interest rate) fluctuates, the present value of the contract fluctuates. This is called the mark-to-market valuation.
Purpose and utility : The purpose of this process is not just to exchange payments but to strategically manage risk. Corporates and financial institutions use it to manage interest rate risk or control costs without changing their existing loan or investment structure.

Types of Swaps in Derivatives

1. Interest Rate Swap

In this swap, two parties transact interest rates – one at a fixed rate and the other at a floating rate. Its purpose is to avoid the risk arising from fluctuations in interest rates.

Example: Suppose an Indian company has taken a loan of ₹ 100 crore from a bank on which it has to pay 9% fixed interest every year. But the company feels that floating rates will remain low in the future, so it does a swap deal with a bank in which it starts paying at a floating rate (eg MIBOR + 1%) instead of a fixed rate. This allows the company to take advantage of a possible fall in interest rates.

2. Currency Swap

In this, two parties exchange the principal and interest of loans taken in different currencies. These swaps are especially done when a company has to borrow in foreign currency but wants to avoid risk.

Example: An Indian company has taken a loan from the US in USD but it is easier to pay in rupees in the future. So it does a currency swap with an American company – the Indian company pays in dollars, and the American company in INR. This saves both parties from risk by paying in their respective country’s currency.

3. Commodity Swap

In this swap, two parties make payments based on mutually agreed price and market price of a commodity such as oil, gas, or metal. This is done to protect against price uncertainty.

Example: Suppose an Indian airline company needs 1 lakh liters of jet fuel every month. It fears that oil prices may rise in the future. It does such a swap with an oil supplier in which a fixed price (eg ₹ 85 per liter) is fixed every month, whether the market price is ₹ 90 or ₹ 75. This gives it stability in the budget.

4. Credit Default Swap (CDS)

This is a contract in which one party promises to compensate the other party in case of default of a loan or bond. This is a kind of “credit insurance”.

Example: Suppose an Indian bank has given a big loan to a real estate company. It fears that the company may go bankrupt. The bank takes CDS from an insurance company. Now if that real estate company does not repay the loan, the insurance company will compensate for the loss.

5. Equity Swap

In this, two parties make payment based on the return of the stock market and a fixed interest rate. In this, actual shares are not purchased, only the return is transacted.

Example: Suppose an Indian mutual fund wants a return of Nifty 50 but does not want to buy shares directly. It does an equity swap with a bank in which the bank gives it a return of Nifty 50, and in return the fund gives fixed interest (eg 7%).

Benefits of Using Swap Derivatives

Protection from interest rate risk : Swaps allow switching between fixed and floating rates, allowing companies to hedge their expenses against interest rate fluctuations.
Control of currency risk : Currency swaps help manage the exchange rate risk associated with foreign currency loans or liabilities.
Cost reduction : Swaps with more favourable terms can help organizations reduce their financing costs and improve cash flow.
Customised financial strategy : Swaps can be customised, allowing companies to control their balance sheet risk in a customised way.

Risks Involved in Swap Derivatives

Counterparty Risk : Swap derivatives are often over-the-counter (OTC), that is, they are traded directly between two parties rather than through an exchange. In such a situation, if one party does not fulfill the terms of the contract (defaults), then the other party can suffer huge losses. This risk increases further, especially in long-term swaps.
Liquidity Risk : Swap contracts are highly customized, which makes it difficult to sell them in the secondary market or exit them prematurely. This is why the investor or institution has to remain in it for the entire period, even if the market conditions change.
Valuation Risk : Since swaps do not have a uniform market price, valuing them is challenging. Complex financial models and assumptions are required to mark them to market. Valuation based on incorrect estimates can lead to huge losses.
Regulatory Risk : After the 2008 financial crisis, derivatives regulations have been tightened around the world. In India, there has been increased oversight of OTC derivatives by RBI and SEBI. Many swaps now need to be settled through a clearing house, increasing the regulatory burden and reporting.
Market Risk : Swap contracts depend on market-linked factors such as interest rates, currency rates, or commodity prices. If these change suddenly or unfavorably, it can expose the parties to huge losses. Without the right hedging strategy, this risk can be huge.

Why Do Investors and Institutions Use Swaps?

Risk Management : The most common use of swaps is to protect against fluctuations in interest rates, currency rates or commodity prices. This helps companies stabilize their future payments.
Speculative Use : Some professional traders use swaps to bet on the direction of the market, such as whether interest rates will rise or fall. In this, a position can be taken without buying the actual asset.
Arbitrage Opportunities : When there is a price difference in two financial markets, investors can take advantage of low cost and high returns through swaps.
Balance Sheet Management : Banks and corporate entities use swaps to improve their asset-liability matching and cash flow structure.
Customised Financial Structure : Swaps are completely customisable, allowing companies to design them to suit their needs and precisely control risk.

Conclusion

Swap derivatives have become an essential tool in today’s complex financial environment for managing interest rate risks, foreign exchange volatility, etc. They are different from traditional derivatives because they are completely customizable. Although they come with risks, but with the right strategy and understanding, they can be very beneficial for institutions and experienced investors. It is important to examine them closely and seek professional advice before using them.

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Frequently Asked Questions (FAQs)

What is a swap derivative in simple terms?
It is an agreement in which two parties exchange money or returns in the future.
Are swaps only used for interest rates?
No, they are used for a variety of assets such as currency, commodity and credit risk.
Are swap contracts risky?
Yes, they involve a variety of risks such as counterparty risk and market risk.
Can individual investors use swap derivatives?
Not usually, they are designed for large investors and institutions.
Are swap contracts legally binding?
Yes, these are fully legal contracts and parties are required to make payments as per the terms.

August 24, 2025

Reverse Cash and Carry Arbitrage Explained

Everyone wants to make a profit in the stock market but did you know that some smart traders make money without risk even when the market is stable? This is called Arbitrage Strategy.

In this blog, we will understand in simple language what is Reverse Cash and Carry Arbitrage, how it works, and how to make a profit from it too without knowing the direction of the market. If you want to know what is cash and carry arbitrage and its reverse form, then this guide is for you.

What is Cash and Carry Arbitrage?

Cash and Carry Arbitrage is a trading strategy in which traders buy an asset (such as a stock or index) at the current price (spot price) and sell the same asset at a fixed price (futures price) in the futures market. It is profitable when the futures price is higher than the spot price, that is, when the market is in contango.

Let us understand with an example : Suppose the spot price of Stock A is ₹5,100 now, and the futures price after one month is ₹5,350.The trader buys Stock A at ₹5,100 and sells the futures at ₹5,350. Here the difference is ₹250. If the total expenses (like brokerage, funding cost etc.) are ₹100, then a net profit of ₹150 is left without any directional risk.

Step	Description
Spot Buy	Buying Stock A at ₹5,100
Futures Sell	Sell futures at ₹5,350 at the same time
Net Profit	₹250 – ₹100 = ₹150 (almost assured profit)

Cash carry arbitrage is used extensively by large investors, professional traders and arbitrage mutual funds, especially when such price gaps are present in the market and execution can be fast.

The Opposite Side: What is Reverse Cash and Carry Arbitrage?

Reverse Cash and Carry Arbitrage is a trading strategy in which the trader sells an asset in the spot market (short sell) and buys the same asset in the futures market (buy futures). This strategy is exactly the opposite of cash and carry arbitrage where first you buy and then sell.

It is beneficial when the market is in backwardation, that is, when the price of futures is lower than the spot. In such a situation, the trader sells at a higher price today and takes a contract to buy the same asset in the future at a lower price.

Let us understand with an example:

Suppose the current (spot) price of Stock B is ₹7,252, and the futures price is ₹6,800.

The trader shorts (borrows and sells) Stock B at ₹7,252 and buys its futures at ₹6,800. If the total expenses are ₹300 (loan cost, brokerage etc.), his potential profit will be: ₹7,252 – ₹6,800 – ₹300 = ₹152 per share.

Step	Description
Spot Sell	Short (Sell) Stock B at ₹7,252
Futures Buy	Buying Stock B Futures at ₹6,800
Net Profit	₹152 (after deducting all expenses)

There is profit in this (riskless arbitrage), provided the asset can be shorted and all transactions are completed on time and at a low cost. This strategy is mostly used by institutional investors and proprietary trading desks, as it requires a good understanding of both cash flow and borrowing.

Cash and Carry vs. Reverse Cash and Carry Arbitrage

Factor	Cash and Carry	Reverse Cash and Carry
What to do in Spot Market	Buy	Short Sell
What to do in Futures Market	Sell	Buy
When is it used	When futures price is higher than spot	When futures price is lower than spot
Objective	Lock in the premium	Benefit from the discount
Risk Level	Very Low	Low, but requires short selling facility
Who typically uses it	Mutual Funds, HNIs, Professional Traders	Proprietary Traders, Institutional Investors

Key Conditions for Profitable Reverse Arbitrage

The market should be in backwardation : Reverse cash and carry arbitrage works only when the futures price is lower than the spot, i.e. the market is in backwardation. This situation usually arises when short-term demand is low or there is negative sentiment in the market. If the futures are not at a discount, then this strategy will not be profitable.

Sufficient price gap between spot and futures price : A difference of just ₹5-₹10 will give negligible profit in real-time, especially when brokerage and taxes are also deducted. Trade only when there is a clear discount in both the prices – i.e. the gap is enough to leave a net profit even after deducting all expenses.
Permission and access for short selling : The first requirement of reverse arbitrage is the facility of short selling. In India, this is possible only in the stocks of F&O segment. Apart from this, you should have experience and margin to trade in NSE F&O. This access is often limited for retail traders.
Control of funding cost or interest rate : If you have borrowed capital for short selling or buying futures, the interest charged on it will affect your earnings. Low interest rate or 0% brokerage funding schemes can make this strategy even better.
Calculate transaction costs in advance : Broker charges, STT, GST, transaction fees, and exchange charges can sometimes increase the cost by ₹100–₹200. If you do not add these in advance, your expected arbitrage profit will remain only on paper.
Impact of cash flow and interest on free funds : Some traders partially free their funds by buying futures. If they receive interest on these free funds (like liquid funds or overnight lending), it adds an extra edge to the profit — especially in high volume trades.
Liquidity and Execution Speed : The profit margins in reverse arbitrage are small, but the execution must be extremely fast and accurate. Low liquidity or delay can lead to a close spread. So focus on liquid stocks/indices like Nifty, Bank Nifty, Reliance or HDFC for this strategy.

Benefits and Risks of Reverse Cash and Carry Arbitrage

Benefits of Reverse Cash and Carry Arbitrage

Almost risk-free earnings : If all the conditions such as price gap, execution and cost control are met, this strategy is capable of delivering low-risk and assured returns.
Protection from short-term volatility : This strategy is not based on directional trading, so even if the market goes up or down, the pre-locked profit is not affected.
Capital Efficiency : Professional and HNI traders can open both the positions with limited capital which can improve their ROI. Sometimes this strategy proves to be more efficient than long-term investment.
Predictable results : If the trade is held till expiry, the profit is almost fixed due to the convergence of futures and spot prices which reduces uncertainty to a great extent.

Risks of Reverse Cash and Carry Arbitrage

Execution Risk : Both spot and futures trades need to be executed simultaneously and at the right price. A little slippage or delay can wipe out the entire profit margin.
Margin Call and Position Risk : If the market suddenly becomes very volatile, a margin call may occur, especially if the position is large. This may lead to premature closure of the trade.
Regulatory and Tax Complications : In India, STT (Securities Transaction Tax), tax on futures and limits on short selling can sometimes make this strategy less profitable.
Limited access to short selling : Retail traders are often not allowed or facilitated to short sell in the spot market, making this strategy unviable for them.

Who Can Actually Use This Strategy?

Institutional Investors : Large fund houses, insurance companies and FIIs use this strategy in large volumes as they have the capital, execution team and access to short-selling.
Proprietary Trading Firms : These are professional traders who trade with their company’s money. They have real-time systems, arbitrage models and risk management that enables such a strategy to be put into practice.
High Net Worth Individuals (HNIs) : Investors who have large trading capital and are active in the F&O segment can also take advantage of this strategy, provided they have access to short-selling.
SEBI-registered arbitrage funds : Many arbitrage mutual funds in India monetize this strategy. If you cannot implement this strategy directly, you can get indirect benefit by investing in these funds.

Why is it difficult for retail investors?

While professional and institutional players can easily make profits from this strategy, there are many obstacles for retail investors. The biggest challenge is the limited facility of short selling, which is not usually available in the cash market. Apart from this, a relatively higher margin is required for futures trading. Also, if there is even a slight delay or slippage in trading, the profits of investors with limited capital can easily be wiped out. This is the reason why this strategy is not as simple in practice for retail traders as it seems.

Conclusion

Reverse Cash and Carry Arbitrage is a strategy that offers the opportunity to generate stable returns at low risk. While the profit potential is fixed, it requires precise execution, short selling flexibility, and cost control. This strategy is usually more useful for professional and institutional traders, but retail investors can also profit indirectly especially through arbitrage mutual funds. With the right information and planning, it can be an effective trading strategy. It is advised to consult a financial advisor before trading.

Frequently Asked Questions (FAQs)

What is Reverse Cash and Carry Arbitrage?
It is a trading strategy in which an asset is sold in the spot market and bought in the futures market when the futures price is low.
When is Reverse Arbitrage profitable?
When the futures price is lower than the spot price and there is still profit after deducting all transaction costs.
Can retail investors do reverse arbitrage?
In theory yes, but in practice it is a bit difficult due to the convenience of short selling and margins.
What are the major risks involved?
Risks like execution delay, high transaction costs and restrictions on short selling are involved.
Is this strategy used by mutual funds?
Yes, many arbitrage mutual funds use this kind of strategy to get stable returns at low risk.

August 24, 2025

What is Demat Debit and Pledge Instruction (DDPI)?

If you have ever faced difficulty in selling or pledging shares while trading in the stock market, then the old POA system has been a big reason behind it. Now SEBI has implemented a new system to make it better and safer – DDPI (Demat Debit and Pledge Instruction). This method makes the process of debiting and pledging shares in your demat account easy and transparent.

In this blog we will understand in simple language the meaning of DDPI, the role of DDPI in the stock market, its advantages, disadvantages and how to activate it.

What is DDPI?

DDPI i.e. Demat Debit and Pledge Instruction, is a document that you sign and give to your broker so that he can debit (sell) or pledge shares from your demat account only after your approval. This is a more secure and limited authority method than the old Power of Attorney (POA), in which the broker gets permission to only sell and pledge that too when you do the transaction yourself.

Why was DDPI introduced?

There was more risk in the old POA system : Earlier investors had to give POA to the broker, which gave them full authority to sell or transfer shares from your demat account. In many cases, some brokers misused this right, causing loss to investors.

It was necessary to provide a safe and controlled method to investors : SEBI realized that the POA system was becoming unsafe for investors. Therefore, in 2022, SEBI issued a new rule, making DDPI an alternative to POA. Through this, investors now allow only those transactions that they initiate themselves.

Changes necessary for transparency and trust : DDPI has promoted transparency and investor protection in the stock market. Now the broker cannot touch your shares unless you yourself give a sell or pledge instruction. This gives complete control to the investor.

POA vs DDPI: What’s the Real Difference?

Feature	POA (Old Method)	DDPI (New Method)
Scope	Broad: complete freedom to sell, transfer and pledge shares	Limited: only allowed to sell and pledge
Security Risks	Higher risk of misuse	Low as action only takes place with your approval
Revocation	The process is complex and time consuming	Easy as DDPI can be deactivated in just a few steps
Control	Broker had quite broad rights	The investor retains full control

Is DDPI Mandatory for Stock Market Investors?

It is not mandatory for all investors to implement DDPI i.e. Demat Debit and Pledge Instruction. SEBI has introduced it as an optional facility, which aims to provide more security and convenience to investors. That is, if you want, you can sign DDPI, and even if you do not, you can continue trading.

1. For which investors is DDPI more useful?

If you are an active trader and regularly buy and sell shares, or want to take margin by pledging your shares, then DDPI can prove to be very useful for you. This eliminates the need to enter OTP every time, which makes transactions quick and seamless.

2. What if DDPI is not there?

If you have not activated DDPI, then every time you sell shares, you will have to go through the eDIS (Electronic Delivery Instruction Slip) process. In this, an OTP comes on your registered mobile or email, which is entered only after which the shares are debited. This method can be a little time consuming, especially when orders need to be executed quickly in the market.

3. Where does DDPI not apply?

DDPI is required only in cases of selling shares or making a pledge. If you make investments like IPO, mutual fund, or SIP, then DDPI has no role in it. A different process is adopted for such investments in which DDPI is not required.

How to Activate DDPI in Your Demat Account?

Activating Demat Debit and Pledge Instruction (DDPI) has become very easy these days. Whether you are opening a new demat account or using an existing one, you can activate DDPI either online or offline.

1. How to activate DDPI while opening a new account?

When you open a new demat account with a broker like Pocketful, the option to sign DDPI is given during the account opening process itself. This process is completely digital and you can easily complete it through Aadhaar-based eSign. Once signed, the broker registers the DDPI with your depository (NSDL or CDSL).

2. How to add DDPI to an already opened account?

If you have already opened an account and did not sign DDPI at that time, you can easily activate it later. For this, most brokers provide DDPI activation facility through online platforms or mobile apps.

3. How do Pocketful users activate DDPI?

If you have opened your account on the Pocketful App, the DDPI option is available at the time of account opening. If you did not sign up for DDPI at that time, you can activate it later.

4. How to activate DDPI on Pocketful App

Open the App > Go to Menu > Select Account Settings > Click on “DDPI” section > eSign using Aadhaar. The same facility is available on the web portal as well, where you can activate DDPI by filling the DDPI form or digitally.

5. How long does activation take?

In most cases, DDPI activation happens within 24 to 48 hours. Once it is activated, you can trade faster without the hassle of eDIS or OTP.

6. Using POA? Switch to DDPI now

If you have signed a POA earlier, you can switch to DDPI by requesting your broker. Most brokers now complete this process online, so you do not need additional documentation.

Benefits of DDPI for Retail Investors

DDPI is Safer than POA : DDPI i.e. Demat Debit and Pledge Instruction, is much safer than the traditional Power of Attorney (POA). POA gives brokers a lot of rights, whereas DDPI only allows limited and necessary tasks, which keeps your share account safe.
Get rid of OTP-based selling : If you have activated DDPI, you do not need to enter OTP every time you sell shares (as is the case with eDIS). This makes the trading experience smoother and faster, especially when you want to react immediately to market fluctuations.
Fast and Hassle-Free Execution : The trading process is much faster with DDPI because there is no need for manual steps like OTP or confirmation. This allows your deals to be executed immediately, which is especially beneficial for intraday traders.
Necessary for Margin Trading : If you want to trade through margin by pledging shares, then DDPI is necessary. It allows you to pledge your shares, which is not possible through POA or eDIS.
Control remains in your hands : DDPI gives you complete transparency and control. You decide for yourself what the brokerage firm can and cannot do. This gives peace of mind and you can invest without worry.
Completely Optional and Flexible : The best thing is that filling DDPI is not mandatory. If you do not want to activate it, you can opt for eDIS or POA. This gives you complete freedom to choose the option as per your convenience.

Limitations of DDPI

Not every brokerage is completely paperless : There is a perception that DDPI makes the entire process digital, but in reality, some brokers still ask for a signed physical copy for DDPI activation. This means you have to print the form, sign it and send it back which can be time-consuming and hassle in today’s digital age.
Not useful for all types of transactions : DDPI is used only for limited purposes, such as selling or pledging stocks. But if you want to transfer mutual funds, government bonds or other demat holdings, DDPI does not work there. Hence, you have to resort to different methods.
It is not easy to remove DDPI : If you want to cancel DDPI in the future, many brokers ask for an offline physical request for the same. This means you may have to fill and post a form to cancel DDPI, which makes the whole process a bit sluggish and inconvenient.
Not very important for those who trade less : If you trade only once or twice a month, you may not feel the need for DDPI. For such investors, eDIS (Electronic Delivery Instruction Slip) or OTP verification also works. DDPI is more useful for those who trade frequently or regularly.

Conclusion

DDPI i.e. Demat Debit and Pledge Instruction has made trading in the stock market a little easier. Now there is no need to enter OTP or give extra permission every time you sell shares – once DDPI is activated, the work is done quickly and securely. Yes, this is not necessary for all investors, but if you trade regularly and want to avoid frequent hassles, then DDPI can prove to be a good option. This is a small but important step towards smart trading.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Features and Benefits of Demat Account
2	Lifetime Free Demat Account (AMC Free)
3	How Do You Open a Demat Account Without a Broker?
4	Demat Account Charges Comparison 2025
5	Types of Demat Accounts in India

Frequently Asked Questions (FAQs)

What is DDPI in a demat account?
DDPI i.e. Demat Debit and Pledge Instruction is a digital permission that allows the broker to sell your shares or pledge without an OTP.
Is DDPI mandatory for trading?
No, it is not necessary to get DDPI. You can also trade through eDIS, but DDPI makes the process easier and faster.
Can I activate DDPI later after account opening?
Yes, you can activate DDPI even after opening the account – this facility is available on most brokers’ apps or websites.
Is DDPI safe to use?
Yes, DDPI is safe as it is activated only by registered brokers and under SEBI rules.
How can I enable DDPI in Pocketful?
If you leave the DDPI option on when opening an account on Pocketful, you can easily turn it on later by going to “Account Settings” in the app.

August 23, 2025

What is Bermuda Option?

In the field of options trading, a Bermuda Option represents a hybrid structure between American and European options. Under this contract, the holder is permitted to exercise the option only on specific predetermined dates. This feature provides a balance of flexibility and strategic control. In recent years, Bermuda options have gained increasing popularity, particularly among institutional investors, due to their customizable nature and ability to support more sophisticated risk management strategies.

This article will provide a clear and structured overview of the Bermuda option, explaining its key characteristics, advantages, and practical applications.

Bermuda Option : An Overview

A Bermuda Option is a derivative contract that allows the investor to exercise the option on certain pre-defined dates. It is neither exercised only on the expiry day like a European Option nor anytime like an American Option.

Interesting Fact: The name “Bermuda Option” comes from the island of Bermuda, which lies geographically between the United States and Europe. Just like its name, the Bermuda option sits in between the American and European styles, offering a balanced level of flexibility.

Difference between Bermuda, American and European Options

Type of Option	Exercise Timing	Flexibility	Premium Cost
American Option	Anytime before expiry	Highest	Most expensive
European Option	Only on the expiry date	Lowest	Least expensive
Bermuda Option	On specific pre-determined dates	Medium	Moderately priced

Today, many institutional investors use this option for customized risk management. This option is usually available in the OTC (Over-the-Counter) market, allowing its terms and exercise dates to be customized.

Thus, the Bermuda option provides investors with greater control, lower premiums, and limited but flexible exercise options.

How Bermuda Options Work: Real-World Example

The most special thing about Bermuda Option is that it can be exercised only on some selected dates. These dates are already fixed in the contract like the first trading date of every month or the beginning of every quarter. This means that the investor gets the opportunity to exercise even before expiry, but not on any day, but only on some fixed days.

Understand with a simple example : Suppose you have a Bermuda Call Option which gives the right to buy a stock at a strike price of ₹2,000. This option is valid for the next 6 months and it can be exercised only on the first trading date of every month. If the price of the stock becomes ₹2,300 on the first trading day of the third month, then you can buy it for ₹2,000 and earn a profit of ₹300.

What is the importance of strategy in Bermuda Trading?

Bermuda Options are useful for traders and investors who plan transactions based on a specific event or time-based movement. For example:

Just before corporate earnings
After RBI monetary policy meeting
Around the company’s dividend announcement

In such situations, Bermuda Option proves to be more effective because you can take the position on that specific date without waiting for expiry.

Why is the exercise structure of Bermuda Option special?

It offers a good balance of not too much freedom (like American) and not too restricted (like European).
It is also priced accordingly. The premium is usually higher than European and lower than American.
It is especially popular in OTC markets where institutions can customize it.

Key Features of Bermuda Options

Key feature of Bermuda options are listed below:

Pre-defined exercise dates : Bermuda options can only be exercised on certain pre-defined dates. These dates are already fixed in the option contract such as the first trading date of every month or the beginning of a quarter. This gives traders the opportunity to make strategic decisions without waiting for expiry.
Available in both Call and Put options : Bermuda options are not limited to just call options. You can buy them as both Bermuda Call Option or Bermuda Put Option, making them suitable for both bullish and bearish strategies.
Customization in the OTC market : These options are usually traded in the Over-the-Counter (OTC) market, allowing investors and institutions to customize them to their needs such as exercise dates, contract period, and asset class.
Volatility and Time Effect on Pricing : Bermuda Option prices usually depend on volatility, strike price and time left till expiry. Since they can be exercised in between, their valuation model is a little more complex than European options.
Premium Cost Balance : The premium of these options is lower than American options and higher than European options. This is attractive for traders who want flexibility and do not want to pay a high premium.

Bermuda Call Option vs Bermuda Put Option

Keeping in mind the fluctuations in the market, investors choose different types of options. Let us understand what its two main forms Call and Put Options are and how they work.

Bermuda Call Option : Bermuda Call Option is an option that gives the investor the right to buy an underlying asset (such as a stock, index or currency) at a fixed strike price on certain pre-defined dates. This option is useful when the investor expects a bullish move in the market, but does not know when the price will rise. Through this, he can get a chance to buy at the right time, without waiting for the entire expiry.

Bermuda Put Option : Bermuda Put Option gives the investor the right to sell the underlying asset at a fixed price on certain pre-defined dates. This option is better in situations when the investor fears a market fall in the future and wants to secure his portfolio in time. It is a limited but effective hedging tool.

Difference between Call and Put Option : While the Bermuda Call Option is used to profit from a potential price rise, the purpose of the Bermuda Put Option is to protect against potential losses. Both options are considered excellent for strategic trading and risk management, especially when the right timing is known but complete freedom is not required.

Why Choose Bermuda Options?

Bermuda options can be preferred for trading due to the following reasons:

Perfect flexibility : Bermuda options offer you the freedom to exercise, but it is not completely unlimited. The option to exercise on certain dates gives you both better timing and more control.
Strategic play at a lower cost : It has a lower premium than American options, which allows the trader to control his costs. It is great for those who want to take risks in a calculated manner.
Ideal for time-sensitive trading : If you think the market will move on a particular date like a result announcement or budget—then Bermuda options give you the opportunity to take a position at that time.
A reliable way of professional hedging : Many large institutional investors use this option to protect their portfolio from losses, especially when there is long-term planning.
Full customization : Bermuda Options available in the OTC market can be designed to suit your needs such as exercise dates, strike prices, or duration all on your terms

Where are Bermuda Options Traded?

Bermuda Options are primarily traded in the OTC (Over-the-Counter) market, where their terms can be customized. These options are particularly popular among large institutional investors who use them for hedging or special strategies.

Globally, these options are available as structured derivative products in financial centers such as Singapore, Hong Kong and London. In India, Bermuda trading is currently not available to ordinary retail investors, but some foreign institutions use them to indirectly hedge their exposure to the Indian markets.

Risks and Limitations of Bermuda Options

Some of the risks associated with trading Bermuda options are listed below:

Limited liquidity : Bermuda Options are mostly traded in the OTC market, where there are limited buyers and sellers. This makes them less liquid, meaning it is not easy to sell them immediately when needed.
Complexity in pricing : Simple models are not suitable for determining the value of these options. Complex models such as binomial or trinomial trees have to be used to take into account different exercise dates and volatility.
Limited availability for retail investors : Bermuda Options are primarily for institutional investors. In markets like India, they are not generally available to retail traders.
Need for accurate timing : Since they can be exercised only on certain dates, you need to have an accurate estimate of the movement of the underlying asset. A slight mistake in timing can render the option worthless.

Conclusion

The Bermuda Option provides a balanced structure through its time-based exercise feature. Unlike traditional European options, which can only be exercised at expiry, Bermuda options allow exercise on specified dates, offering flexibility while maintaining discipline. This characteristic distinguishes them as a hybrid between American and European styles. Trading in Bermuda options is most common among institutional investors and in customized derivative markets. Within the broader complexity of options trading, they represent a practical compromise between timing flexibility and pricing efficiency. It is advised to consult a financial advisor before trading in Bermuda options.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What Is an Option Contract?
2	Call and Put Options: Meaning, Types, Difference & Examples
3	What are Option Greeks?
4	Short Straddle: Option Strategy with Examples
5	Option Chain Analysis: A Detail Guide for Beginners

Frequently Asked Questions (FAQs)

What is a Bermuda Option?
A Bermuda Option is an option that can be exercised only on certain specified dates.
How is the Bermuda Option different from the American Option?
American Option can be exercised anytime, while Bermuda Option can be exercised only on specified dates.
Can retail investors trade in Bermuda Options in India?
No, these options are not generally available to retail investors in India.
Where are Bermuda Options mostly traded?
These options are mostly traded in the OTC market and at the institutional level.
Is Bermuda Option available for both call and put types?
Yes, Bermuda Option is available in both call and put forms.
Are Bermuda Options expensive?
The premium is lower than American and slightly higher than European.

August 23, 2025

Anondita Medicare Ltd. IPO Day 1: GMP & Subscription Status

Anondita Medicare Ltd. is launching its IPO as a fresh issue of approximately ₹69.50 crore, offering up to 47.93 lakh equity shares at a price band of ₹137–₹145 per share. The IPO opened on August 22, 2025, and will close on August 26, 2025. The shares are slated to list on the NSE SME platform on September 1, 2025.

Anondita Medicare IPO – Day 1 Subscription Status

The IPO saw overall subscriptions of 3.39×, driven primarily by Retail Individual Investors (RII) at 5.89×. Non-Institutional Investors (NII) contributed 1.93×, while Qualified Institutional Buyers (QIB) showed moderate participation at 0.11×.

Investors Category	Subscription (×)
Qualified Institutional Buyers (QIB)	0.11
Non-Institutional Investors (NII)	1.93
bNII (above ₹10 lakh)	1.43
sNII (less than ₹10 lakh)	2.93
Retail Individual Investors (RII)	5.89
Total Subscriptions	3.39

Total Applications: 4,956
Total Bid Amount: ₹156 Cr.

Objective of the Anondita Medicare IPO

The primary objectives include funding capital expenditure for new equipment and machinery, meeting working capital requirements to ensure smooth business operations, and allocating funds for potential acquisitions and other general corporate purposes.

Objects of the Issue	Expected Amount (in Millions)
Funding capital expenditure requirements for the purchase of equipment/machineries	60
Funding the Working Capital requirement	350
Unidentified Acquisition and General Corporate Purposes	–

Anondita Medicare IPO GMP – Day 1 Update

On August 22, 2025, the IPO recorded a Grey Market Premium (GMP) of ₹65, leading to an estimated listing price of ₹210. This indicators a strong listing gain of 44.83%, reflecting high investor enthusiasm.

Date	GMP	Estimated Listing Price	Gain
August 22, 2025 (Day 1)	₹65	₹210	44.83%

Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

Important Dates for Anondita Medicare IPO Allotment

Event	Date
Tentative Allotment	August 28, 2025
Initiation of Refunds	August 29, 2025
Credit of Shares to Demat	August 29, 2025
Listing Date on NSE SME	September 1, 2025

Anondita Medicare IPO – Key Details

Particulars	Details
IPO Opening Date	August 22, 2025
IPO Closing Date	August 26, 2025
Price Band	₹137–₹145 per share
Total Issue Size	₹69.50 crore (Fresh Issue)
Lot Size	1,000 shares
Listing Platform	NSE SME

Anondita Medicare Ltd. Overview

Anondita Medicare Ltd., incorporated in March 2024, is a Noida-based manufacturer of flavored male condoms under the brand “COBRA”, with a production capacity of 562 million pieces annually. Serving domestic and export markets (Southeast Asia, Africa, Middle East), the company demonstrated robust growth with revenue rising from ₹46.56 crore in FY24 to ₹77.13 crore in FY25, and PAT surging from ₹3.84 crore to ₹16.42 crore.

Easy Steps to Apply for Anondita Medicare IPO via Pocketful

Step 1: Install the Pocketful Trading App from Play Store or App Store.
Step 2: Sign up and complete your KYC
Step 3: Open the IPO section on the app
Step 4: Search for “Anondita Medicare”
Step 5: Tap Apply and enter your bid details

Frequently Asked Questions (FAQs)

What are the opening and closing dates of the Anondita Medicare IPO?
The IPO opened on August 22, 2025, and closes on August 26, 2025.
What is the price band of the IPO?
The price range is ₹137–₹145 per share.
What is the total size of the IPO?
The issue comprises a fresh issue of ₹69.50 crore.
When will Anondita Medicare shares be listed?
Listing is expected on September 1, 2025, on NSE SME.
What is the Day 1 subscription status?
The IPO has seen 3.39× overall subscription, led by 5.89 times in the retail category.

August 22, 2025

Shivashrit Foods Ltd. IPO Day 1: GMP & Subscription Status

Shivashrit Foods Ltd. has launched its SME IPO today, August 22, 2025, with an issue size of ₹70.03 crore, comprising a fresh issue of ₹61.29 crore and an offer-for-sale of ₹8.75 crore. The IPO will remain open for subscription till August 26, 2025, and the shares are scheduled to list on the NSE SME (Emerge) platform on September 1, 2025.

Shivashrit Foods IPO – Day 1 Subscription Status

As of Day 1, subscription numbers indicate low demand, with overall subscriptions at 0.24×. Non-Institutional Investors (NII) led with 0.57×, Retail Individual Investors (RII) participated at 0.23×, while Qualified Institutional Buyers (QIB) showed no interest (0.00×).

Investor Category	Subscription (×)
Qualified Institutional Buyers (QIB)	0.00
Non-Institutional Investors (NII)	0.57
bNII (above ₹10 lakh)	0.76
sNII (less than ₹10 lakh)	0.19
Retail Individual Investors (RII)	0.23
Total Subscriptions	0.24

Total Applications: 216
Total Bid Amount: ₹11 Cr.

Objective of the Shivashrit Foods IPO

The funds raised will be used to finance expansion projects, strengthen working capital, and support general corporate needs, enabling the company to scale its operations efficiently.

Objects of the Issue	Expected Amount (in Millions)
Capital Expenditure (“Expansion Project”)	263
Working Capital Requirement for Expansion Project	190
General Corporate Purpose	–

Shivashrit Foods IPO GMP – Day 1 Update

At the end of its first day, the IPO had a Grey Market Premium (GMP) of ₹5, resulting in an estimated listing price of ₹147. This translated to a modest listing gain of 3.52%, indicating a cautious but positive market response.

Date	GMP (₹)	Estimated Listing Price (₹)	Gain (%)
August 22, 2025 (Day 1)	₹5	₹147	3.52%

Shivashrit Foods Ltd. IPO – Key Details

Particulars	Details
IPO Opening Date	August 22, 2025
IPO Closing Date	August 26, 2025
Price Band	₹135–₹142 per share
Total Issue Size	₹70.03 crore (Fresh: ₹61.29 Cr; OFS: ₹8.75 Cr)
Lot Size	1,000 shares
Listing Platform	NSE SME
Registrar	Maashitla Securities Pvt. Ltd.

Important Dates for Shivashrit Foods IPO Allotment

Event	Date
Tentative Allotment	August 28, 2025
Refunds Initiation	August 29, 2025
Credit of Shares to Demat	August 29, 2025
Listing Date on NSE SME	September 1, 2025

Shivashrit Foods Ltd. Overview

Incorporated in 2017 and headquartered in Aligarh, Uttar Pradesh, Shivashrit Foods Ltd. is engaged in the production, supply, and export of premium potato flakes used in ready-to-eat meals, snacks, and processed foods. Its processing facility holds multiple certifications including FSSAI, ISO 22000, HALAL, BRCGS, and USFDA, ensuring global standards of quality. The company markets its products both domestically and internationally, catering to rising demand in the food processing sector.

Financially, Shivashrit Foods has demonstrated strong growth momentum, with revenue increasing from ₹77.55 crore in FY2024 to ₹105.85 crore in FY2025, while PAT rose from ₹11.61 crore to ₹12.06 crore during the same period.

Easy Steps to Apply for Shivashrit Foods IPO via Pocketful

Install the Pocketful Trading App from the Play Store or App Store.
Sign up and complete your KYC
Navigate to the IPO section on the app
Find “Shivashrit Foods” in the listing
Tap Apply and enter your bid details

Frequently Asked Questions (FAQs)

When does the Shivashrit Foods IPO open and close?
The IPO opens on August 22, 2025, and closes on August 26, 2025.
What is the price band?
Price band for the IPO is set at ₹135 to ₹142 per share.
What is the issue size and structure?
Total size is ₹70.03 crore, comprising a fresh issue of ₹61.29 crore and OFS of ₹8.75 crore.
When will the listing happen?
Shares of Shivashrit Foods will list on September 1, 2025, on NSE SME.
What are the IPO objectives?
Funds will be used for expansion capital expenditure, working capital needs, and general corporate purposes.

August 22, 2025

Classic Electrodes IPO Day 1: GMP & Subscription Status

Classic Electrodes (India) Ltd.’s IPO is a fresh issue of ₹41.51 crore, with a price band of ₹82–₹87 per share. Bidding opens on August 22, 2025, and closes on August 26, 2025. The shares will be listed on NSE SME on September 1, 2025.

Classic Electrodes IPO – Day 1 Subscription Status

Classic Electrodes IPO subscribed 1.95 times and received 2.70x subscription in the individual investors category, 1.03x in QIB (Ex Anchor), and 1.42x in the NII category on Day 1 i.e. August 22, 2025.

Investors Category	Subscription (×)
Qualified Institutional Buyers (QIB)	1.03
Non-Institutional Investors (NII)	1.42
bNII (above ₹10 lakh)	1.25
sNII (less than ₹10 lakh)	1.77
Retail Individual Investors (RII)	2.70
Total Subscriptions	1.95

Total Applications: 1,435
Total Bid Amount: ₹53 Cr.

Objective of the Classic Electrodes IPO

The primary objectives of the IPO are to fund capital expenditures, repay outstanding borrowings, meet working capital requirements, and support general corporate purposes.

Objects of the Issue	Expected Amount (in Millions)
Funding capital expenditure of our company to purchase Plant and Machinery	100
Repayment of a portion of certain outstanding borrowing availed by the company	100
Funding the working capital requirements of the company	166
General Corporate Purposes	–

Classic Electrodes IPO GMP – Day 1 Update

On August 22, 2025, the IPO showed a Grey Market Premium (GMP) of ₹20, translating to an estimated listing price of ₹107. This resulted in a healthy listing gain of 22.99% for investors, signaling strong market enthusiasm for the IPO.

Date	GMP	Est. Listing Price	Gain
August 22, 2025 (Day 1)	₹20	₹107	22.99%

Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

Classic Electrodes (India) Ltd. IPO – Key Details

Particulars	Details
IPO Opening Date	August 22, 2025
IPO Closing Date	August 26, 2025
Price Band	₹82–₹87 per share
Total Issue Size	₹41.51 crore (Fresh Issue)
Lot Size	1,600 shares
Listing Platform	NSE SME
Registrar	MUFG Intime India Pvt. Ltd.

Important Dates for Classic Electrodes IPO Allotment

Event	Date
Tentative Allotment	Thu, Aug 28, 2025
Initiation of Refunds	Thu, Aug 28, 2025
Credit of Shares to Demat	Fri, Aug 29, 2025
Listing Date on NSE SME	September 1, 2025

Classic Electrodes (India) Ltd. Overview

Established in 1997 and headquartered in Kolkata, West Bengal, Classic Electrodes (India) Limited is a leading manufacturer of welding consumables, including electrodes and MIG wires, catering to both domestic and international markets. The company offers a wide range of products such as mild steel, stainless steel, cast iron, deep penetration electrodes, and MIG wires for varied industrial applications. With two manufacturing units located in Dhulagarh, West Bengal, and Jhajjar, Haryana, it ensures strong regional coverage and efficient logistics, while the earlier Bahadurgarh unit was closed in FY 2023–24 as part of restructuring.

Easy Steps to Apply for Classic Electrodes IPO via Pocketful

Step 1: Install the Pocketful app from the Play Store or App Store.
Step 2: Complete your KYC process.
Step 3: Go to the IPO section on the app
Step 4: Find “Classic Electrodes” in the IPO list
Step 5: Tap Apply and enter your bid details

Frequently Asked Questions (FAQs)

What are the opening and closing dates of Classic Electrodes IPO?
The IPO opens on August 22, 2025, and closes on August 26, 2025.
What is the price band for the IPO?
The price band is set between ₹82 and ₹87 per share.
What is the issue size of the IPO?
The IPO size is ₹41.51 crore (fresh issue only).
When will the shares be listed?
Shares are expected to be listed on NSE SME on September 1, 2025.
What is the GMP of Classic Electrodes IPO on Day 1?
The GMP at the close of Classic Electrodes IPO on Day 1 was ₹20.

August 22, 2025

Mangal Electrical IPO Allotment Status: Check Latest GMP, Steps to Verify Status

Mangal Electrical Industries Limited, a Jaipur-based manufacturer of transformer components and customized power-infrastructure solutions, is closing its ₹400 crore IPO today, August 22, 2025. The issue is a fresh issue only, with a price band of ₹533–₹561 per share. Following allotment, shares are scheduled to list on BSE and NSE on August 28, 2025.

Mangal Electrical IPO – Day 3 Subscription Status

The IPO was oversubscribed 9.95x overall, with Non-Institutional Investors (NII) leading at 19.78x and Qualified Institutional Buyers (QIB) subscribing 11.09x. Retail Individual Investors (RII) showed moderate interest at 5.09x.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	11.09
Non-Institutional Investors (NII)	19.78
bNII (above ₹10 lakh)	20.05
sNII (less than ₹10 lakh)	19.23
Retail Individual Investors (RII)	5.09
Total	9.95

Total Applications: 4,47,732

How to Check Mangal Electrical IPO Allotment Status

The allotment status can be checked online either via the Registrar’s website (Bigshare Services Pvt.Ltd.) or the BSE website.

Method 1: Registrar’s Website

Steps to check:

Visit the Bigshare Services Pvt.Ltd. IPO allotment page.
Select “Mangal Electrical Industries IPO” from the dropdown.
Enter your PAN, Application Number, or Demat/DP Client ID.
Complete the captcha and click Submit/Search.
Your allotment status will be displayed.

Method 2: BSE Website

Steps to check:

Visit the BSE IPO allotment page.
Select the Equity segment and choose “Mangal Electrical Industries IPO.”
Enter PAN and Application Number (plus captcha, if any).
Click Submit to view allotment status.

Objective of the Mangal Electrical IPO

Mangal Electrical plans to deploy the IPO proceeds primarily for debt repayment, capacity expansion at its Unit IV facility in Rajasthan, and meeting working capital needs. A portion will also be set aside for general corporate purposes, strengthening its overall financial flexibility.

Objects of the Issue	Expected Amount (₹ in crores)
Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the Company	101.27
Capital expenditure including civil works of the Company for expanding the facility at Unit IV situated at Reengus, Sikar District, Rajasthan	87.86
Funding working capital requirements of the Company	122.00
General corporate purposes	–

Mangal Electrical IPO GMP – Day 3 Update

The last reported GMP for Mangal Electrical IPO is ₹16, last updated on August 22, 2025, 05:00 PM. With the upper price limit of ₹561, the IPO’s estimated listing price is ₹577. The expected percentage gain per share is 2.85%.

Date	GMP (₹)	Est. Listing Price (₹)	Gain (%)
22-08-2025 (DAY 3)	₹16	₹577	2.85%

Mangal Electrical IPO – Key Details

Particulars	Details
IPO Opening Date	August 20, 2025
IPO Closing Date	August 22, 2025
Price Band	₹533–₹561 per share
Issue Size	₹400 crore (Fresh Issue)
Lot Size	26 shares
Listing Platform	BSE & NSE
Registrar	Bigshare Services Pvt.Ltd.
Mangal Electrical IPO RHP	Click Here

Important Dates for Mangal Electrical IPO Allotment

Event	Date
Tentative Allotment	August 25, 2025
Refunds Initiation	August 26, 2025
Credit of Shares to Demat	August 26, 2025
Listing Date	August 28, 2025

Mangal Electrical Overview

Mangal Electrical Industries Ltd., founded in 1990 and based in Rajasthan, is a leading player in the electrical equipment manufacturing sector, specializing in transformers, cables, conductors, and other power transmission and distribution solutions. Its products cater to utilities, industrial clients, and infrastructure projects, ensuring reliable power distribution across markets. With multiple facilities, including an expanding Unit IV in Reengus, the company continues to scale its operations. Between FY24 and FY25, revenue grew by 22% while profit after tax surged 126%, reflecting strong growth momentum. Supported by a diversified product portfolio and operational efficiency, Mangal Electrical has built a resilient market position.

Frequently Asked Questions (FAQs)

What are the opening and closing dates of the Mangal Electrical IPO?
The IPO opened on August 20, 2025, and closed on August 22, 2025.
What is the price band of the IPO?
The price band is set at ₹533–₹561 per share.
What is the issue size of the IPO?
The IPO size is ₹400 crore, entirely a fresh issue.
When will the shares list?
The shares are expected to list on August 28, 2025, on BSE and NSE.
What are the objectives of the IPO?
Proceeds will be used for debt repayment, capacity expansion, funding working capital requirements and general corporate purposes.

August 22, 2025

Gem Aromatics IPO Allotment Status: Check Latest GMP, Steps to Verify Status

Gem Aromatics Limited, a leading manufacturer of specialty ingredients such as essential oils, aroma chemicals, and value-added derivatives, concluded the subscription for its ₹451.25 crore IPO on August 21, 2025. The issue comprised a fresh issue of ₹175 crore and an offer-for-sale (OFS) of up to ₹276.25 crore. The price band was set at ₹309–₹325 per share. Following allotment, the shares are scheduled to be listed on BSE and NSE on August 26, 2025.

Gem Aromatics IPO – Day 3 Subscription Status

The final day of bidding saw strong investor participation across categories. Below is the detailed subscription status as of Day 3:

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	53.76
Non-Institutional Investors (NII)	45.96
bNII (above ₹10 lakh)	48.48
sNII (less than ₹10 lakh)	40.91
Retail Individual Investors (RII)	10.49
Total	30.45

Total Applications: 10,59,134

How to Check Gem Aromatics IPO Allotment Status

Gem Aromatics IPO allotment can be checked online using the Registrar’s website (Kfin Technologies Ltd.) or via the BSE website.

Method 1: Registrar’s Website (Kfin Technologies Ltd.)

Steps to check:

Visit the Kfin Technologies Ltd. IPO allotment site.
Select “Gem Aromatics Limited IPO” from the dropdown.
Enter your PAN, Application Number, or Demat/DP Client ID.
Complete any captcha if prompted and click Submit/Search.
Allotment status will be displayed.

Method 2: BSE or NSE Website

Steps to check:

Visit the BSE or NSE IPO/allotment webpage.
Select the Equity segment, then choose “Gem Aromatics Limited IPO”.
Input your PAN and Application Number (and captcha, if any).
Click Search/Submit to view your allotment status.

Objective of the Gem Aromatics IPO

The company plans to utilize the net proceeds of the IPO towards strengthening its balance sheet by reducing debt and supporting future business needs. The funds will also be deployed for general corporate purposes, providing additional financial flexibility.

Objects of the Issue	Expected Amount (₹ in crores)
Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary, Krystal Ingredients Private Limited	140.00
General Corporate Purposes	–

Gem Aromatics IPO GMP – Day 3 Update

Gem Aromatics IPO last GMP is ₹28, last updated Aug 21st 2025 04:58 PM. With the upper limit of price band at ₹325, Gem Aromatics IPO’s estimated listing price is ₹353. The expected percentage gain/loss per share is 8.62%.

Date	GMP (₹)	Est. Listing Price (₹)	Gain (%)
21-08-2025 (DAY 3)	₹28	₹353	8.62%

Gem Aromatics IPO – Key Details

Particulars	Details
IPO Opening Date	August 19, 2025
IPO Closing Date	August 21, 2025
Price Band	₹309–₹325 per share
Issue Size	₹451.25 crore (Fresh: ₹175 Cr, OFS: ₹276.25 Cr)
Lot Size	46 shares
Listing Platform	BSE & NSE
Registrar	Kfin Technologies Ltd.
Gem Aromatics IPO DRHP	Click Here

Important Dates for Gem Aromatics IPO Allotment

Event	Date
Tentative Allotment	August 22, 2025
Refunds Initiation	August 25, 2025
Credit of Shares to Demat	August 25, 2025
Listing Date	August 26, 2025

Gem Aromatics Overview

Gem Aromatics Limited, incorporated in October 1997, is a long-established manufacturer of specialty ingredients like essential oils, aroma chemicals, and value-added derivatives. It offers about 70 products across four categories: mint and mint derivatives, clove and its derivatives, phenol, and other synthetic/natural ingredients. The company serves domestic and global markets (18 countries), through its manufacturing facilities in Budaun (UP), Silvassa, and Dahej, and maintains strong R&D and innovation capabilities.

Frequently Asked Questions (FAQs)

Q1. What is the opening and closing date of the Gem Aromatics IPO?
The Gem Aromatics IPO opens on August 19, 2025, and closes on August 21, 2025.
What is the price band of the Gem Aromatics IPO?
The price band for the IPO is set between ₹309 and ₹325 per share.
What is the total issue size of the Gem Aromatics IPO?
The total issue size is ₹451.25 crore, comprising a fresh issue of ₹175 crore and an Offer for Sale (OFS) worth ₹276.25 crore.
What is the expected listing date of Gem Aromatics?
The shares are expected to be listed on BSE and NSE on August 26, 2025.
What are the objectives of the Gem Aromatics IPO?
The proceeds will be used for repayment or prepayment of certain outstanding borrowings of the company and its subsidiary, Krystal Ingredients Private Limited, as well as for general corporate purposes.

August 22, 2025

Blog

What is Rollover in the Stock Market?

Why Rollovers Matter: Purpose and Significance

How to Roll Over Futures Positions

Rollover vs Fresh Positions: What’s the Difference?

Who Uses Rollovers: Retail vs Institutional Perspective

Risks & Mistakes to Avoid While Rolling Over

Rollover Process: An Example

Conclusion

Frequently Asked Questions (FAQs)

What is rollover in the stock market?

When does rollover happen in India?

Is rollover a good or bad signal?

How to roll over futures manually?

Do all traders need to roll over?

Does rollover affect stock prices?

Where can I see rollover data?

What is Swap in Derivatives?

History & Evolution of Swaps Derivatives

1. Early 1980s

2. 1981: The First Currency Swap between IBM and World Bank

3. 1990s: The Rise of Credit Default Swaps (CDS)

4. 2008: Global Financial Crisis and the role of CDS

5. 2025 Statistics

How Do Swaps Derivatives Work?

Types of Swaps in Derivatives

1. Interest Rate Swap

2. Currency Swap

3. Commodity Swap

4. Credit Default Swap (CDS)

5. Equity Swap

Benefits of Using Swap Derivatives

Risks Involved in Swap Derivatives

Why Do Investors and Institutions Use Swaps?

Conclusion

Frequently Asked Questions (FAQs)

What is a swap derivative in simple terms?

Are swaps only used for interest rates?

Are swap contracts risky?

Can individual investors use swap derivatives?

Are swap contracts legally binding?

What is Cash and Carry Arbitrage?

The Opposite Side: What is Reverse Cash and Carry Arbitrage?

Cash and Carry vs. Reverse Cash and Carry Arbitrage

Key Conditions for Profitable Reverse Arbitrage

Benefits and Risks of Reverse Cash and Carry Arbitrage

Benefits of Reverse Cash and Carry Arbitrage

Risks of Reverse Cash and Carry Arbitrage

Who Can Actually Use This Strategy?

Why is it difficult for retail investors?

Conclusion

Frequently Asked Questions (FAQs)

What is Reverse Cash and Carry Arbitrage?

When is Reverse Arbitrage profitable?

Can retail investors do reverse arbitrage?

What are the major risks involved?

Is this strategy used by mutual funds?

What is DDPI?

Why was DDPI introduced?

POA vs DDPI: What’s the Real Difference?

Is DDPI Mandatory for Stock Market Investors?

1. For which investors is DDPI more useful?

2. What if DDPI is not there?

3. Where does DDPI not apply?

How to Activate DDPI in Your Demat Account?

1. How to activate DDPI while opening a new account?

2. How to add DDPI to an already opened account?

3. How do Pocketful users activate DDPI?

4. How to activate DDPI on Pocketful App

5. How long does activation take?

6. Using POA? Switch to DDPI now

Benefits of DDPI for Retail Investors

Limitations of DDPI

Conclusion

Frequently Asked Questions (FAQs)

What is DDPI in a demat account?

Is DDPI mandatory for trading?

Can I activate DDPI later after account opening?

Is DDPI safe to use?

How can I enable DDPI in Pocketful?