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How can I invest in bonds and debentures?
A: As long as you have a demat account, you can purchase bonds/debentures in a primary issuance, by filling up the application form provided by the manager to the issue/sub-broker to the lead manager. For a secondary market trade, you need to go through a broker.
Who can participate in OFS?
Except “Seller”, all market participants like individuals, mutual funds, foreign portfolio investors (FPIs/FIIs), insurance companies, corporates, other qualified institutional bidders (QIBs), HUFs, NRIs etc. can bid/participate in the OFS process to buy the shares. 2.
How do I buy a warrant stock?
The easiest way to exercise a warrant is through your broker. When a warrant is exercised, the company issues new shares, increasing the total number of shares outstanding, which has a dilutive effect. Warrants can be bought and sold on the secondary market up until expiry.
How do I pay for rights issue?
The process of applying for a rights issue is through ASBA (Applications Supported by Blocked Amount). If your bank supports it, you can apply online just like an IPO. If not then you would have received a courier of the Composite Application Form (CAF) from RTA (Registrar and Transfer Agent) of the company.
How can I buy debentures online?
You need to have the usual trading and a demat account to buy a non convertible debenture (NCD). The process to buy a NCD is the same as that for a share. You log into your trading account or ask your broker to buy you an NCD on your behalf. The manner in which you buy and the brokerage is the same as that for shares.
How can I buy OFS from Icicidirect?
To place a BUY order for the OFS, follow the steps: www.icicidirect.com > Login to your account > Trade & Invest > Equity > Transact > Offer For Sale. To know more about Offer for Sale click here for FAQs.
Is a specific offer for sale?
Definition: Offer for sale (OFS) is a simpler method of share sale through the exchange platform for listed companies. In an OFS, a minimum of 25 per cent of the shares offered, are reserved for mutual funds (MFs) and insurance companies.
Can I buy warrants on Fidelity?
As I’m sure you know, warrants are more like options than stocks. However, on Fidelity’s online brokerage platform, you can trade warrants using the same interface as you would for stocks or ETFs. (Options require you to select a different interface.)
As per Section 71 of the Companies Act, 2013, a company can issue debentures with an option to convert such debentures into shares, either wholly or partly at the time of redemption.
How debentures can be secured?
(2) Issue of debentures shall be secured by the creation of a charge on the properties/assets of the company/ its subsidiaries/ its holding company/ its associates companies, having a value which is sufficient for the due repayment of the amount of debentures and interest thereon
Where is premium on redemption of debentures shown on balance sheet?
Premium on redemption of debentures account is shown under the ‘Securities Premium’ in the Balance Sheet. False 7. Which of the following statements is false? a. A company can issue convertible debentures
What are the features of maturity date of debenture?
Maturity Date 1 A debenture pays a regular interest rate or coupon rate return to investors. 2 Convertible debentures can be converted to equity shares after a specified period, making them more appealing to investors. 3 In the event of a corporation’s bankruptcy, the debenture is paid before common stock shareholders.