A shareholder or stockholder is an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation.

Stockholders are granted special privileges depending on the class of stock. These rights may include:

The right to sell their shares. The right to vote on the directors nominated by the board. The right to nominate directors (although this is very difficult in practice because of minority protections) and propose shareholder resolutions. The right to dividends if they are declared. The right to purchase new shares issued by the company. The right to what assets remain after a liquidation.

Stockholders or shareholders are considered by some to be a subset of stakeholders, which may include anyone who has a direct or indirect interest in the business entity. For example, labor, suppliers, customers, the community, etc., are typically considered stakeholders because they contribute value and/or are impacted by the corporation. Shareholders in the primary market who buy IPOs provide capital to corporations; however, the vast majority of shareholders are in the secondary market and provide no capital directly to the corporation.

A debenture is a document that either creates a debt or acknowledges it, and it is a

debt without collateral. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital.[1] Senior debentures get paid before subordinate debentures, and there are varying rates of risk and payoff for these categories. Debentures are generally freely transferable by the debenture holder. Debenture holders have no rights to vote in the company's general meetings of shareholders, but they may have separate meetings or votes e.g. on changes to the rights attached to the debentures. The interest paid to them is a charge against profit in the company's financial statements.

Investor
An investor is a person who allocates capital with the expectation of a financial return. The types of investments include, gambling and speculation, equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc. This definition makes no

distinction between those in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. Since those in the secondary market are considered investors, speculators are also investors. According to this definition there is no difference

Types of investors
The following classes of investors are not mutually exclusive:

Individuals gambling in games of chance. Individual investors (including trusts on behalf of individuals, and umbrella companies formed by two or more to pool investment funds) Collectors of art, antiques, and other things of value Angel investors (individuals and groups) Sweat equity investor Venture capital funds, which serve as investment collectives on behalf of individuals, companies, pension plans, insurance reserves, or other funds. Businesses that make investments, either directly or via a captive fund Investment trusts, including real estate investment trusts Mutual funds, hedge funds, and other funds, ownership of which may or may not be publicly traded (these funds typically pool money raised from their owner-subscribers to invest in securities) Sovereign wealth funds

Also, investors might be classified according to their styles. In this respect, an important distinctive investor psychology trait is risk attitude.

Investor protection
The term investor protection defines the entity of efforts and activities to observe, safeguard and enforce the rights and claims of a person in his role as an investor. This includes advice and legal action. The assumption of a need of protection is based on the experience that financial investors are usually structurally inferior to providers of financial services and products due to lack of professional knowledge, information or experience. Countries with stronger investor protections tend to grow faster than those with poor investor protections.

Creditor
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"Creditors" redirects here. For the 1889 play by August Strindberg, see Creditors (play). A creditor is a party (e.g. person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed.[1] The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property and service. The second party is frequently called a debtor or borrower. The first party is the creditor, which is the lender of property, service or money. The term creditor is frequently used in the financial world, especially in reference to short-term loans, long-term bonds, and mortgage loans. In law, a person who has a money judgment entered in their favor by a court is called a judgment creditor. The term creditor derives from the notion of credit. In modern America, credit also refers to a rating which indicates the likelihood a borrower will pay back his or her loan. In earlier times, credit also referred to reputation or trustworthiness.

Customer
A customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration.[1][2] Customers are generally categorized into two types:

An intermediate customer or trade customer (more informally: "the trade") who is a dealer that purchases goods for re-sale.[3][1] An ultimate customer who does not in turn re-sell the things bought but either passes them to the consumer or actually is the consumer.[3][1]

A customer may or may not also be a consumer, but the two notions are distinct, even though the terms are commonly confused.[3][1] A customer purchases goods; a consumer uses them.[4][5] An ultimate customer may be a consumer as well, but just as equally may have purchased items for someone else to consume. An intermediate customer is not a consumer at all.[3][1] The situation is somewhat complicated in that ultimate customers of so-called industrial goods and services (who are entities such as government bodies, manufacturers, and educational and medical institutions) either themselves use up the goods and services that they buy, or incorporate them into other finished products, and so are technically consumers, too. However, they are rarely called that, but are rather called industrial customers or business-to-business customers.[3] Similarly, customers who buy services rather than goods are rarely called consumers.[1]

COMMERCIAL BANKS

A commercial bank is a type of bank that provides services, such as accepting deposits, giving business loans and basic investment products. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking).

Insurance COMPANIES in India

From Wikipedia, the free encyclopedia

Insurance is a subject listed in the Union list in the Seventh Schedule to the Constitution of India where only centre can legislate. The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment of up to 26% (as of 2013 there have been proposals to extend the FDI up to 49% to strengthen the Insurance Market even further) the insurance sector has been a booming market. However, the largest life-insurance company in India, Life Insurance Corporation of India is still owned by the government.

CHARITABLE INVESTMENT TRUSTS

A charitable trust is an irrevocable trust established for charitable purposes, and is a more specific term than "charitable organization". In India, trusts set up for the social causes and approved by the Income Tax Department, get not only exemption from payment of tax but also the donors to such trusts can deduct the amount of donation to [1] the trust from their taxable income. The legal framework in India recognizes activities including "relief of the poor, education, medical relief, and the advancement of any other object of general public utility" as [2] charitable purposes. Companies formed under Section 25 of the Companies Act, 1956 for promoting charity also receive benefits under law including exemption from various procedural provisions of the Companies Act, either fully or in part, and are also entitled to such other exemptions that the Central [3] Government may accord through its orders.

Industrial Finance Corporation of India

From Wikipedia, the free encyclopedia

At the time of independence in 1947, India's capital market was relatively underdeveloped. Although there was significant demand for new capital, there was a dearth of providers. Merchant bankers and underwriting firms were almost non-existent. And commercial bankswere not equipped to provide long-term industrial finance in any significant manner. It is against this backdrop that the government established The Industrial Finance Corporation of India (IFCI) on July 1, 1948, as the firstDevelopment Financial Institution in the country to cater to the long-term finance needs of the industrial sector. The newly-established DFI was provided access to low-cost funds through the central

bank's Statutory Liquidity Ratio or SLR which in turn enabled it to provide loans and advances to corporate borrowers at concessional rates. This arrangement continued until the 1990's when it was recognized that there was need for greater flexibility to respond to the changing financial system. It was also felt that IFCI should directly access the capital markets for its funds needs. It is with this objective the constitution of IFCI was changed in 1993 from a statutory corporation to a company under the Indian Companies Act, 1956. Subsequently the name of the company was also changed to 'IFCI Limited ' with effect from October 1999. IFCI has fulfilled its original mandate as a DFI by providing long term financial support to all segments of Indian Industry. It has also been chiefly instrumental in translating the government's development priorities into reality. Until the establishment of ICICI in 1956, IFCI remained solely responsible for implementation of the government's industrial policy initiatives. Its contribution to the modernization of Indian Industry, export promotion, import substitution, entrepreneurship development, pollution control, energy conservation and generation of both direct and indirect employment is noteworthy.

Formation of IFCI[edit source | editbeta]

The IFCI was the 1st specialized financial institution setup in India to provide term finance to large industries in India. It was established on 1st July, 1948 under The Industrial Finance Corporation Act of 1948. In 1993 it was reconstituted as a company to impart higher degree of operational flexibility.

Objectives of IFCI[edit source | editbeta]

The main objective of IFCI is to provide medium and long term financial assistance to large scale industrial undertakings, particularly when ordinary bank accommodation does not suit the undertaking or finance cannot be profitably raised by the concerned by the issue of shares.

Functions of IFCI[edit source | editbeta]

1) For setting up a new industrial undertaking. 2) For expansion and diversification of existing industrial undertaking. 3) For renovation and modernization of existing concerns. 4) For meeting the working capital requirements of industrial concerns in some exceptional cases. 5) Direct financial support (by way of rupee term loans as well as foreign currency loans) to industrial units for under taking new projects, expansion, modernization, diversification etc. 6) Subscription and underwriting of public issues of shares and debentures. 7) Guaranteeing of foreign currency loans and also deferred payment guarantees.

8) Merchant banking, leasing and equipment finance.

Securities and Futures Commission (SFC)

The Securities and Futures Commission (SFC) is an independent non-governmental statutory body outside the civil service, responsible for regulating the securities and futures markets inHong Kong and facilitating and encouraging the development of these markets. It was established by the Securities and Futures Commission Ordinance (SFCO). The SFCO and nine other securities and futures related ordinances were consolidated into the Securities and Futures Ordinance (SFO), which came into operation on 1 April 2003. SFC's statutory regulatory objectives as set out in the SFO are:

to maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry; to promote understanding by the public of the operation and functioning of the securities and futures industry; to provide protection for members of the public investing in or holding financial products; to minimise crime and misconduct in the securities and futures industry; to reduce systemic risks in the securities and futures industry; and to assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate steps in relation to the securities and futures industry. The SFC is divided into four operational divisions: Corporate Finance, Intermediaries and Investment Products, Enforcement, and Supervision of Markets. The Commission is supported by the Legal Services Division and Corporate Affairs Division.

Unit Trust of India is a financial organization in India, which was created by the UTI Act
passed by the Parliament in 1964. For more than two decades it remained the sole vehicle for investment in the capital market by the Indian citizens. In mid- 1980s public sector banks were allowed to open mutual funds. The real vibrancy and competition in the MF industry came with the setting up of the Regulator SEBI and its laying down the MF Regulations in 1993.UTI maintained its pre-eminent place till 2001, when a massive decline in the market indices and negative investor sentiments after Ketan Parekh scam created doubts about the capacity of UTI to meet its obligations to the investors. This was further compounded by two factors; namely, its flagship and largest scheme US 64 was sold and re-purchased not at intrinsic NAV but at artificial price and its Assured Return Schemes had promised returns as high [3] as 18% over a period going up to two decades.
[2]

Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing

industry in the country. Although Government shareholding in the Bank came down below 100% following IDBIs public issue in July 1995, the former continues to be the major shareholder (current shareholding: 75%). IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI also provides indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting [citation needed] of bills of exchange arising out of sale of indigenous machinery on deferred payment terms.

ICICI Bank is an Indian multinational bank and financial services company headquartered
in Mumbai. Based on 2013 information, it is the second largest bank in India by assets and third largest by market capitalisation. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The [2] Bank has a network of 3,350 branches and 10,486 ATM's in India, and has a presence in 19 countries.

Life Insurance Corporation of India (LIC)

is the largestinsurance

group and investment company in India. It's a state-owned company whereGovernment of India has [1] 100%stake. It has assets estimated of 1560481.84 crore(US$250 billion). Total Life Fund Rs.1433103.14 crore (as on 31st March 2013). No. of Policies sold 367.82 lakh in 2012-13. It was founded in 1956 with the merger of 245 insurance companies and provident societies(154 life insurance companies,16 foreign companies & 75 provident companies).

GIC of India is the sole reinsurance company in the Indian insurance market with over three
decades of experience. The General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares. GIC was formed to control and operate the business of general insurance in India.