India

Posted By Steve On Wednesday, October 28th, 2009 With 0 Comments

Bombay Stock Exchange Equities

Instruments

Equities: Ordinary shares, preference shares, participating preference shares, cumulative preference shares, cumulative convertible preference shares, warrants, rights renunciations
Debt: Loans, debentures, convertible bonds, zero-coupon bonds, public sector undertaking bonds, State and Central Government bonds
Money Market: Governement Seurities, Treasury bills, commercial paper, bonds, bills of exchnage and promissory notes.
Derivatives: Index Futures and Options, Single Stock Futures and Options, Interest Rate Futures
Other: Mutual Fund units, Exchange Traded funds

Board Lots

Equities: In the dematerialised segment, a board lot is one share.
Physical shares: 5, 10, 50 and 100 shares, odd lots can be sold, typically at a discount to current price. (However trading in physical segment is not open to Institutional investors. Institutions are allowed to sell physical securities provided the security is not connected to both / one of the depositories)
Debt: Board lots vary according to type of debt security.
Derivatives: Lot sizes for derivatives are defined for each underlying security by the Exchanges.

Entitlements

Dividend Payment Frequency: Varies with issue, although normally annually.

Interest Payment Frequency: Varies with issue, although usually semi-annually.

Interest Accrual Rate
Government Debt – 30/360 day basis
Other Debt – Actual/365 day basis

Corporate Actions
Common Events: Cash dividend, Stock dividend, Rights
Initial Public Offers (book building and fixed price)
Open Offers, Buy-backs (through stock market or tender offer route), Mergers and De-mergers
Stock Splits, Income, Redemption, New issues
Rights Tradeable: Yes only on BSE and the settlement is by DVP mode between the contracting parties. The clearing house mechanism is not available for rights forms settlement.
New Shares from Exercised Rights: Allotment/credit of shares under rights is normally effected within 3-5 weeks from application / closure of the issue.

Proxy Voting

Foreign Investor Restrictions
Foreign investors are entitled to exercise voting rights, with restrictions (e.g. a maximum cap is specified for voting rights for an Investor in a Private Sector bank).

Shares Blocked
No

Meeting Notices/ Agendas
Provided in English. General meetings are announced three weeks in advance.

Meeting Outcome
On request, subject to availability

Company Reports
On request, subject to availability

Power of Attorney: Required

Other
Postal votes against management are not allowed. Voting is executed by a show of hands unless a poll is demanded. A proxy may demand a poll if they hold 10% of the voting rights or INR 50,000 paid up capital. Proxies can only vote if there is a poll.

Foreign Ownership

Market Entrance Requirements: Alternatively, foreign investors may apply for individual FII status directly with the Indian authorities. Such approval takes longer than the time taken for sub account approval as documentation requirements are more stringent. The FII registration process takes approximately seven working days, whereas sub-account approval takes approximately three to four days. The cost of opening an individual FII status is considerably more than opening a sub account.

FIIs require prior approval from SEBI (RBI has recently granted a generic approval to all FIIs registered with SEBI). Local regulations require appointment of tax consuItants to make tax payments prior to repatriation of sale proceeds. The tax consultant will compute profit and loss and file tax returns on behalf of the investor.

Filing of Tax returns and payment of taxes require quoting of Permanent Account Number (PAN). Recent guidelines by NSDL and CDSL mandate the verification of PAN by the depositary participant for all depository accounts. Further, for opening a fresh depository account, verified copies of PAN card is mandated by SEBI.

From July 2, 2007 the Permanent Account Number (PAN), is the sole identification number for all participants transacting in the Indian securities market. In accordance with this SEBI has instructed all stock exchanges, depositories and SEBI-registered market intermediaries, to take the necessary steps to update their individual databases and infrastructure so that all clients and client transactions are linked to the PAN details. All intermediaries have been directed to collect Income Tax PAN cards of their existing and new clients, after verifying the original.

Effective July 2, 2007, investments held in physical securities will also require a PAN, and existing investments held in physical securities require a PAN by this date.

Investment Restrictions

No single FII or a sub-account of an FII can hold more than 10% of the paid-up capital of a company. In respect of foreign corporates and individuals investing as sub-accounts of FIIs, this limit is restricted to 5% of the paid-up capital.

Aggregate FII holdings in securities of an Indian company is limited to 20% in the case of Public Sector Banks and 24% in case of other companies. The foreign share holding limit can be increased by a company subject to shareholder approval and industry wide maximum foreign shareholdings limits.

SEBI has announced the limit for foreign investment in Stock Exchanges, Depositories and Clearing Corporation is 49%. This overall limit of 49% is further segregated into the following:

  • FII limit of 23%, which is allowed only through purchases in the secondary market.
  • FIIs are not permitted to have representation on the Boards of such companies.
  • Restricting level of equity investment to 5% by a foreign investor, either individually or persons acting in concert.

RBI monitors aggregate foreign investment levels in Public Sector Banks, companies where permitted FII investment limits is 24%, and companies which have received shareholder approval to raise the Foreign Shareholding up to the maximum level.

For effective monitoring, RBI has set a cautionary limit at 0.5% below the permitted investment ceiling limit for companies with equity capital of INR 10 billion or more, and at 2% for companies with equity capital less than INR 10 billion.

Custodians (and FIIs) are notified when the cautionary limit is reached. Once notified, FIIs can only purchase additional shares in these companies after prior approval by RBI (custodians facilitate the application to RBI in such cases). Trades between FIIs can, however, be conducted without prior RBI approval, subject to the trade being executed in a specified trading segment (also known as the Inter-FII Segment).

FIIs are required to restrict investment in debt securities to a maximum of 30%. Equity investments must comprise a minimum of 70% of the total investments. FIIs’ are allowed to set up dedicated debt funds where all investments are made in debt. Specific SEBI approval is required for such funds. Investment limits for such funds are approved by SEBI and are allocated out of the overall limits for Foreign Investment in Debt Securities (Government Securities and Corporate Debt). Total FII investment in debt securities is capped at USD 4.1 billion, this comprises a USD 1.5 billion cap on investment in corporate debt and a USD 2.6 billion cap on investments in government securities. This 2.6 billion cap is in turn sub-divided into cap on investment by 100% debt FIIs at USD 2.0 billion and investment under the 70:30 route at USD 0.6 billion. For corporate debt, the USD1.5 billion cap is sub-divided into a USD1 billion cap on investment by 100% debt FIIs and a USD0.5 billion cap on investment by 70:30 debt FIIs. The limits are as below:

Instrument Type of FII Current debt limit (USD bill) Current headroom (USD bill) Current investible debt limits (USD bill)
G-Sec / Treasury Biils 100% debt FII
70:30 FII
2.00
0.60
0.655
0.060
1.345
0.540
Total 2.60 0.715 1.885
Corporate Bond 100% debt FII
70:30 FII
1.00
0.50
0.080
0.050
0.920
0.450
Total 1.50 0.130 1.370

100% debt FII/sub accounts:

* Individual 100% debt FIIs would be allotted separate limits for investments in G-sec/T-bills aggregating to USD 1345 million and in corporate bond aggregating USD 920 million.
* Investments beyond USD 1,345 million and USD 920 million in G-sec / T-bills and Corporate Debt respectively would require prior SEBI approval.

70:30 FII/sub-accounts

* 70:30 FIIs can invest till the overall limit reaches USD 540 million in G-sec and USD 450 million in corporate debt.
* Investments in G-sec/T-bills beyond USD 540 mio and in corporate debt beyond USD 450 million would require prior SEBI approval

FIIs are also permitted to invest in Debt Capital Instruments raised in INR by Banks in India. The aggregate limit of investments is fixed at USD 500 million. This limit is over and above the limits in debt securities (G-sec and Corporate debt) specified above.

Type of FII / sub-account Limits allocated (USD million)
100% debt FII 390
70:30 FII 110
Total 500
  • 70:30 FIIs can invest till the overall aggregate limit reaches USD 90 million
  • Thereafter prior approval of SEBI is required for limit allocation
  • Each of the 100% debt FIIs granted individual separate limits for investment in DCI

Repatriation Policy

FIIs are free to repatriate the capital, capital gains, dividends, interest and other income after payment of applicable taxes.

Securities Lending

The Securities Lending Scheme (restricted to equity shares) was first introduced by SEBI in 1997 to increase liquidity in the market and to facilitate timely delivery of securities. FIIs were only allowed to lend securities (not borrow). Consequently the FII participation in securities lending and borrowing was negligible.

NSE’s Automated Lending and Borrowing Mechanism (ALBM) and BSE’s Borrowing and Lending of Securities Scheme (BLESS) were discontinued by SEBI on July 2, 2001. Consequently, there were no Stock Exchange administered securities lending and borrowing schemes available in the market. Following representations by market participants, SEBI decided to re-introduce this scheme through the Stock Exchanges in a revamped manner with effect from April 1, 2004.

Under the new scheme, Stock Exchanges have now been permitted to borrow shares to meet a shortfall in securities at the time of settlement, which is expected to do away with the practice of auction (buy-in) for meeting shortfall in securities.

In January 2006, SEBI had invited views from market participants on the discussion paper that it released on Securities borrowing and lending and allowing short sales by Institutional Investors. SEBI has set short selling by institutional investors, and securities lending and borrowing on its priority list for this year. It is expected SEBI will notify the modalities in this financial year.

Taxation

Dividend Tax Rate
Dividends paid by companies, on or after April 1, 2003, are not taxed in the hands of the investors. In lieu of this, a dividend distribution tax of 14.025% is levied on the company distributing the dividend. Accordingly, all dividends are received by FIIs on a gross basis.

Interest Tax Rate
Interest earned by FIIs on securities normally attracts income tax at the rate of 20% (20% + applicable surcharge + education cess). While, normally, the issuer deducts such taxes at source, interest payments on Government Debt and Discount instruments (such as treasury bills) are made gross, without deduction of tax at source.

Capital Gains Tax Rate
Profits made on sale of investments attract Capital Gains tax.

In respect of securities transactions executed on Stock Exchanges (where Securities Transaction Tax is levied), profits on sale of securities held for twelve months or less are termed short-term gains and are taxed at 10%. Profits on sale of securities held for more than twelve months are termed long-term gains and are currently exempt from tax, provided STT is paid at the time of sale of such shares.

Tax laws require capital gains to be computed by allocating securities on a First-in, First-out (FIFO) basis. Dematerialised securities are deemed to have been sold on a FIFO basis according to date of credit by the depository, irrespective of the sequence of actual purchase.

Tax Treaties

Armenia Kazakhstan Slovenia
Australia Kenya Singapore
Austria Korea (South) South Africa
Bangladesh Kyrgyz Republic Spain
Belarus Libya Sri Lanka
Belgium Malaysia Sudan
Brazil Malta Sweden
Bulgaria Mauritius Swiss Confederation
Canada Mongolia Syria
China Morocco Tanzania
Cyprus Namibia Thailand
Czech Republic Nepal Trinidad and Tobago
Denmark Netherlands Turkey
Finland New Zealand Turkmenistan
French Republic Norway Uganda
Germany Oman Ukraine
Greece Philippines United Arab Emirates
Hungary Poland United Arab Republic
Indonesia Portugal United Kingdom
Israel Qatar United States of America
Ireland Romania Uzbekistan
Italy Russian Federation Vietnam
Japan
Jordan
Saudi Arabia Zambia

 

Stamp Duty
Stamp Duty is payable on registration of physical securities. Stamp duty, at 0.25% of the consideration price or the market rate (whichever is higher) is payable by the buyer when physical shares are sent for registration. Stamp duty on debt instruments varies from state to state.

Other Taxes
All taxes applicable to FII transactions must be paid prior to repatriation of funds. Repatriations can be effected after the No Objection Certificate (NOC) is obtained from a tax consultant. Advance tax must be paid five times a year by the dates mentioned below, which is a percentage of the clients’ estimated tax liability by the due dates. These percentages are prescribed by the tax authorities. The tax consultant, while computing the tax liability, considers all transactions contracted till the due dates. Delays in payment attract penal interest and penalty

Due dates for payment of advance tax are June 15, September 15, December 15, March 15 and 31 March (end of financial year).

Stock and Indices Charts for
Indian Stocks

Stock and
Indices Charts for Indian Stocks

These charts are provided by Yahoo and may not include some of the stocks listed.


Intra Day Chart
5
Day Chart

Daily Chart

BSE Sensex

BSE Sensex


BSE Sensex


NSE Nifty 50


NSE Nifty 50


NSE Nifty 50


ACC


ACC

ACC

Aftek Infosys

Aftek Infosys

Aftek Infosys

Andhra Bank

Andhra Bank

Andhra Bank

Arvind Mills

Arvind Mills

Arvind Mills


Aurobindo Pharma

Aurobindo Pharma


Aurobindo Pharma

Bajaj Auto


Bajaj Auto

Bajaj Auto

BASF

BASF

BASF

Bank of Raj

Bank of Raj

Bank of Raj

Bayer

Bayer

Bayer


Bayer ABS

Bayer ABS


Bayer ABS

Bharat Forge


Bharat Forge

Bharat Forge

BHEL

BHEL

BHEL

Biocon

Biocon

Biocon

BOB

BOB

BOB


BOI

BOI


BOI

BPCL


BPCL

BPCL

CIPLA

CIPLA

CIPLA

Digi Global

DigiGlobal

DigiGlobal

Dr. Reddy

Dr. Reddy

Dr. Reddy


DSQ Software

DSQ Software


DSQ Software

EIH


EIH

EIH

GAIL

GAIL

GAIL

Geometric Soft.

Geometric Soft.

Geometric Soft.

Glenmark Pharma

Glenmark Pharma

Glenmark Pharma


Global Tele

Global Tele


Global Tele

Grasim


Grasim

Grasim

Guj. Ambuja Cem

Guj. Ambuja Cem

Guj. Ambuja Cem

HCL Infosys

HCL Infosys

HCL Infosys

HCL Tech

HCL Tech

HCL Tech


HDFC

HDFC


HDFC

HDFC Bank


HDFC Bank

HDFC Bank

Hexaware Tech

Hexaware Tech

Hexaware Tech

Hero Honda

Hero Honda

Hero Honda

HFCL

HFCL

HFCL


Hind. Lever Ltd.

Hind. Lever Ltd


Hind. Lever Ltd.

HPCL


HPCL

HPCL

Hughes Soft.

Hughes Soft

Hughes Soft

ICICI Bank

ICICI Bank

ICICI Bank

India Cement

India Cement

India Cement


Infosys

Infosys


Infosys

Infotech Enter


Infotech Enter

Infotech Enter

ITC

ITC

ITC

Jindal Iron & Steel

Jindal Iron & Steel

Jindal Iron & Steel

Jindal Vijay

Jindal Vijay

Jindal Vijay

Larsen & Toubro

Larsen & Toubro

Larsen & Toubro

LIC Housing

LIC Housing

LIC Housing

Maars Software

Maars Software

Maars Software

Mah & Mah

Mah & Mah

Mah & Mah

Maruti Udyog


Maruti Udyog

Maruti Udyog

Mascot Systems

Mascot Systems

Maars Software

Mastek

Mastek

Mastek

Mascon Global

Mascon Global

Mascon Global


McDowell

McDowell


McDowell

Morepen Labs.


Morepen Labs.

Morepan Labs.

MTNL

MTNL

MTNL

Mukta Arts

Mukta Arts

Mukta Arts

NIIT

NIIT

NIIT


ONGC

ONGC


ONGC

Orient Info


Orient Info

Orient Info

Padmini Poly

Padmini Poly

Padmini Poly

PentaMedia Graphics

PentaMedia Graphics

PentaMedia Graphics

PentaSoft Tech.

PentaSoft Tech.

PentaSoft Tech.


Polaris Software

Polaris Software


Polaris Software

Ranbaxy Lab


Ranbaxy Lab

Ranbaxy Lab

Reliance Capital

Reliance Capital

Reliance Capital

Reliance Ind.

Reliance Ind.

Reliance Ind.

Rel Petro

Rel Petro

Rel Petro


Rolta

Rolta


Rolta

Satyam Comp. Ltd.


Satyam Comp. Ltd.

Satyam Comp Ltd.

SBI

SBI

SBI

SCI

SCI

SCI

Shyam Tele

Shyam Tele

Shyam Tele


Silverline

Silverline


Silverline

Sonata Software


Sonata Software

Sonata Software

SquareD Soft.

SquareD Soft.

SquareD Soft

Sri Adhikari

Sri Adhikari

Sri Adhikari

SSI

SSI

SSI


Sterlite Ind.

Sterlite Ind.


Sterlite Ind.

Sterlite Optical


Sterlite Optical

Sterlite Optical

Tata Chem

Tata Chem

Tata Chem

Tata Elxsi

Tata Elxsi

Tata Elxsi

Tata Power

Tata Power

Tata Power


Tata Tea

Tata Tea


Tata Tea

TELCO


TELCO

TELCO

TISCO

TISCO

TISCO

TVS Motors

TVS Motors

TVS Motors

UTI Bank

UTI Bank

UTI Bank


Visual Soft

Visual Soft


Visual Soft

WIPRO


WIPRO

WIPRO

Wockhardt

Wockhardt

Wockhardt

Zee Tele Ltd.

Zee Tele Ltd.

Zee Tele Ltd.

To add your favourite stock to this list please
contact us.

SENSEX Calculation Methodology

SENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.

The base period of SENSEX is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of SENSEX involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time.

SENSEX Constituents: 10-Jul-07
Code Name Sector
500410 ACC Ltd. Housing Related
500490 Bajaj Auto Ltd. Transport Equipments
500103 Bharat Heavy Electricals Ltd. Capital Goods
532454 Bharti Airtel Ltd. Telecom
500087 Cipla Ltd. Healthcare
500124 Dr. Reddy’s Laboratories Ltd. Healthcare
500300 Grasim Industries Ltd. Diversified
500425 Ambuja Cements Ltd. Housing Related
500010 HDFC Finance
500180 HDFC Bank Ltd. Finance
500440 Hindalco Industries Ltd. Metal
500696 Hindustan Unilever Ltd. FMCG
532174 ICICI Bank Ltd. Finance
500209 Infosys Technologies Ltd. Information Technology
500875 ITC Ltd. FMCG
500510 Larsen & Toubro Limited Capital Goods
500520 Mahindra & Mahindra Ltd. Transport Equipments
532500 Maruti Udyog Ltd. Transport Equipments
532555 NTPC Ltd. Power
500312 ONGC Ltd. Oil & Gas
500359 Ranbaxy Laboratories Ltd. Healthcare
532712 Reliance Communications Limited Telecom
500390 Reliance Energy Ltd. Power
500325 Reliance Industries Ltd. Oil & Gas
500376 Satyam Computer Services Ltd. Information Technology
500112 State Bank of India Finance
532540 Tata Consultnacy Service Limited Information Technology
500570 Tata Motors Ltd Transport Equipments
500470 Tata Steel Ltd. Metal
507685 Wipro Ltd. Information Technology

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