Equity & Equity Derivatives
Equity is the one of the asset classes which priode stake in a company. It is a
popular choice among investors as it provides a high-returns and a cushion against
Equity shareholders get return in form of dividend or price appreciation. However,
Dividends are not compulsory for the company to pay to their stakeholders but some
companies do pay a portion of their profits in form of dividends and the rest is
retained into the company’s business. Investing in an equity stock the investor
can earn profit via capital gain or price appreciation. As a particle owner of the
company, the shareholder has a voting right in the company’s major decisions.
Equity Derivative Segment
Equity derivatives instruments facilitate trading of a component of price risk,
which is inherent to investment in securities. Price risk is nothing but change
in the price movement of assets, held by a market participant, in an unfavourable
direction. This risk broadly divided into two components ‐ specific risk or unsystematic
risk and market risk or systematic risk.
To take the advantage of the market, Equity Derivative provides an edge to the market
movement. Returns are visible in short duration. The equity derivative is a class
of derivatives whose value is based on equity movement of the underlying asset.
The investor used equity derivatives to hedge the risk in the stock by taking long
or short positions or even to speculate the price movement of the underlying asset.
Option and Futures are by far the most comment on equity derivative products.
Currency market internationally is very big and very mature in terms of market share,
which is bigger than equity and commodity markets. It is operated 24/7 globally.
Currency Derivatives are traded in Foreign Exchange market(FOREX) which is a globally
decentralized market. Indian currency markets have gained a lot of attention from
retail investors in recent years. It is a contract between the seller and buyer,
whose value is to be derived from the currency value.Currency derivatives are in
form future and option contact where the investor can buy or sell a specific quantity
of a particular currency at a predetermined date. The participants are from all
round the world who want to buy, sell, exchange and speculate with different currencies.It
is traded in pairs like USD/INR or GBP/INR. Forex market is affected by various
reasons such as economic, political, international trade and interest rate conditions
of the related currency. Many investors find the current derivative more attractive
as it provides portfolio diversification, requires lower margins and much less scripts
Securities Lending and Borrowings(SLB)
Stocks also can be lent or borrowed. Securities Lending and Borrowing(SLB) is a
temporary lending of securities for an agreed duration with a fee. More than 370
stocks are available on NSE SLB platform. The contacts are available for a duration
of a month to twelve months. SLC provides liquidity in the market which increases
the efficiency of the markets. It is an Exchange Traded Product. Investors who have
certain stock holdings in their Demat account and are not planning to sell that
stock holding in near future can lend their shares through the SLB segment by charging
certain fees and a fixed duration. The Lender can utilize their portfolio holding
for additional income. After lending the security, the right is still entitled to
any corporate action like dividend, bonus. The lender The borrowers are the traders
who are taking advantage of them for a short term opportunity for possible gain
for a stock's momentum. It allows them to meet obligations in case of shortage in
delivery and avoid auction in the Cash segment. Lending and borrowing of shares
does not mean a transfer of ownership rights of the shares, it simply means to let
out the shares which are owned by the investor. The transactions are cleared by
Clearing Corporations thus no counterparty risk.
Commodity Market is a marketplace for buying, selling and trading products such
as precious metals,energy, oil, species and so on. The investor aims to diversify
their portfolio by investing into various perishable and non-perishable products,
thereby reducing risk as commodities have very little or negative correlation with
other asset classes. Commodities are risky investments as the price can be affected
by various uncertainties such as the weather, epidemics or disasters. Just like
the equity market segment, it is necessary to have apt knowledge of factors and
various strategies before investing into commodities. This segment provides hedge
against price inflation as the market has a negative correlation with the equity
and bond markets. The trading hours are long from 09:00am to 11:30/11:55 pm, which
allows the investors to be in the market longer and capture international benchmark
prices. Investment in commodities can be done by Futures contacts, options and exchange-traded
funds(ETFs). In India, some of the popular forward market commissions are ; Multi
Commodity Exchange of India (MCX), Indian Commodity Exchange (ICEX), National Multi
Commodity Exchange of India( NMCE), National Commodity and Derivative Exchange (NCDEX).
All the commodities traded on MCX have an international linkage for a greater trading
Depository is a place where financial securities are held in dematerialised form.
It is responsible for maintenance of ownership records and facilitation of trading
in dematerialised securities. Depository Participant(DP) serves as an mediator between
various depositories and investors. In India, National Securities Depository Limited(NSDL)
and Central Depository Securities Limited (CDSL) are two depository participants
operating the Indian stock market to maintain various asset classes in electronic
form. With DP keeping the securities in electrical form, they purchase their securities
in the name of the investors and save them in Demat Account, with that it provides
easy mobility. They are registered with the Security Exchange Board of india (SEBI).
Ensure that the investors’ investment is safe.
Mutual Fund distributors
Mutual fund is an ideal investment for the investor who wants to invest in various
schemes with investment goals. However, don't have the time or understanding of
the stock markets. An individual who facilitates buying and selling of units within
a mutual fund between an Asset Management Company(AMC) and interested investors,
is a mutual fund distributor. The distributor acts as an agent by making investors
aware about the various products available in the market. A distributor helps the
investors in carrying out investment transactions related to switching, redemption
and guide them periodically on the performance of their investment.
Initial Public Offerings [IPO]
The process of offering fresh equity to the investors for the first time in the
primary markets is called Initial Public Offerings(IPO). Is it a process of transforming
a private company or corporation into a public company. Through IPO, the company
gets its name listed on the stock exchange and raises funds for various reasons
like expansion, repayment of loads, restructuring, or monetize the investments made
by the existing stakeholders. The company going public will publish a prospectus
which is a detailed document of the proposed offerings. As soon as the stock is
listed in the exchange, it can be traded freely in the secondary market. While investing
in an IPO there are various things to keep in mind for a smart investment to earn
a good return. However, investing in any IPO would not result in a good return.
There has to be a good understanding of the private company before investing in
it. We provide updated IPO information for the investors who are interested in this
investment opportunity. The company can later issue more shares through Offer for
Sale(OFS) to its existing shareholders.
New Pension System(NPS)
New Pension scheme, now known as New Pension System (NPS) is a pension plan introduced
by the government of India to secure the financial future of the individuals after
retirement. NPS is regulated by the Pension Fund Regulatory and Development Authority
of India (PFRDA). The scheme is for all citizens of India between the ages of 18-60
years. Earlier pension schemes used to be for employed individuals only however,
NPS is for employed or self-employed or even house-makers. The minimum contribution
starts from Rs.500 per month to Rs.6000 per annum. We invest into NPS on behalf
of the investor. The funds are invested in debt and equity markets by the government.
They offer a return from 8% to 10% per annum. Having a secured retirement and pension
provides a sense of security and acts as a source of investment. It is also one
of the best tax saving investment options. The investor can claim up to Rs1.5 lakh
of deduction under section 80(C) of the Income Tax Act. There is no tax implication
for investors of New Pension Scheme as there is a provided tax benefit of over and
above Rs 1 lakh under section 80(C) of the income tax.
Corporate Fixed Deposits, Bonds & Debentures
Company Fixed Deposit
Company Fixed Deposit (Corporate FD)is a deposit, where the duration and rate of
interest is predetermined and remains fixed. Financial and Non-Banking Financial
Companies (NBFCs) usually offer these kinds of deposits. The returns are higher
from corporate FDs as compared to bank FDs.
Corporate FDs are flexible as the investor can choose according to their preference
from various duration from monthly, quarterly, semi-annually or even annually.
If the inverter has a gola to invest for a short term and with comparatively lower
risk than the stock markets than Corporate FDs are a good tool of investment.
Bonds are fixed-income instruments which act as an acknowledgment of debt, which
includes details of the loan and its payments. Bonds are issued by companies, government,
municipalities and sovereign governments to raise funds to financial projects and
operations. In the market, bond prices are inversely correlated with interest rates
i.e, when rates increase, bonds prices decrease. In India, the bond market has high
liquidity, is a stable and relatively safe source of investment for risk-averse
Debentures are a debt instrument, which is not backed by any collateral securities
and are usually issued for a medium to long term. They are backed by reputation
and creditworthiness of the issue.
Mobile trading Services
The investor can have access to their information available in their hands and can
initiate orders from their mobile devices. The application allows the users to get
live market data. In this 21st century where everything is digital and fast paced,
JK offers a complete financial portal offering service as a form of a mobile trading
application. Which gives you portable personal trading experience to our client
with just one tap. It comes ready with various tools like mobile trading, mutual
fund management and many more which empowers you to closely monitor your financial
growth, on your hand.
With digital India, now there is a place where all the insurance policies can be
kept in one place in a digital form. Converting into digital form, one can store,
maintain and retrieve their polices and the information very easily. The investor
can also modify or revise the insurance policies much faster and accurately.