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What is an FPO - Why Do Companies Opt for an FPO

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  What is an FPO? A Comprehensive Guide In the world of finance, businesses often need to raise capital to fund growth, reduce debt, or pursue strategic initiatives. One of the methods companies use to achieve this is through an FPO or Follow-on Public Offering . If you’re familiar with an Initial Public Offering (IPO), an FPO can be seen as a subsequent step for already-listed companies. In this article, we’ll delve into the meaning of an FPO, how it works, its types, and the implications for both companies and investors. What is an FPO? An FPO, or Follow-on Public Offering , is a process by which a publicly traded company issues additional shares to the public after its initial public offering (IPO). The primary aim of an FPO is to raise additional capital by offering new shares or selling existing shares held by promoters or early investors. Key Characteristics of an FPO: Post-IPO Mechanism: It occurs after the company has already gone public through ...
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How to list securities in RSE - tradecareer

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                        How to list securities in RSE                                              Listing of Securities How to list securities in RSE :- Listing of securities with stock exchange is a matter of great importance for companies and investors as it provides the liquidity to the securities in the market. The prices at which the securities are traded in the stock exchange are published in the News Papers and other online plateforms. A public company wishes to get its securities listed on a RSE, shall apply to the stock exchange for listing of securities along with the following documents and particulars: - a) MOA and AOA and a copy of debenture trust deed in case of issue of debenture. b) Copies of prospectus or statements in lieu of prospectus issued by the company at any time. c) Copies of offers fo...
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The Audit under SEBI (Depositories & Participants) Regulation, 1996

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The Audit under SEBI (Depositories & Participants) Regulation, 1996 i. It is the duty of every issuer to submit an audit report on a quarterly basis on a recognized stock exchange. ii. Any difference in the records maintained by the issuer shall be reported to the depositories and stock exchanges. Internal Audit The two Depository service providers in India, viz., NSDL and CDSL have allowed Company Secretaries in whole-time practice to undertake internal audit of the operations of Depository Participants (DPs). Every Depository Participant shall ensure that an internal audit in respect of the operations of the Depository is conducted at intervals of not more than three months by a qualified Chartered Accountant or a Company Secretary holding a Certificate of Practice and a copy of the internal audit report shall be furnished to the Depository. Every Depository Participant shall ensure that an internal audit shall be conducted in respect of the participant's operations relating ...
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Procedure for Registration of NBFC & Housing Finance Company - tradecareer.

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       Procedure for Registration of NBFC & Housing Finance Company NO NBFC can commence or carry on business of a financial institution without obtaining a Certificate of Registration(COR) from the RBI and having a Minimum Net Owned Funds of RS. 2 Crore. 1. Incorporation of Company Firstly, incorporate a Company following the normal procedure as prescribed under co. act 2013 and rules made thereunder. 2. Pre-requisite of Registration with RBI a) It should be a company registered under Companies Act,2013 or previous Companies Act,1956. b) It should have minimum net owned funds of INR Rs. 2 crore. c) It should have minimum 1 director from NBFC background or senior Bankers as full-time director in the company d) Clean CIBIL records e) Understanding of NBFC/Finance business                                                        ...
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Benefits of incorporating NBFC - tradecareer.

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                              BENEFITS OF INCORPORATING NBFC: According to research and studies it is proved that NBFCs are outperforming banks. The continued better performance from NBFCs has given rise to an uptick of 15% customer satisfaction as compared to the banking customers. The same is agreed by the RBI according to the recent Financial Stability Report. Banks and NBFCs are financial intermediaries and the services offered by them are pretty much the same as banks.However, the benefits of incorporating an NBFC and carrying on its activities are listed below: 1.Competitive Interest Rates: Rate of interest is one of the main aspects of all types of loans. Non-Banking Financial Sectors have started to concentrate on this area in the recent decades and have brought down the interest rates to either equal to bank lending rates or at times even lower to bank rates.  With all the other benefits when rate o...
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What are the types of NBFC - tradecareer.

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                    Types  of non banking financial company  1. Asset Finance Company (AFC) 2. Investment Company (IC) 3. Loan Company (LC) 4. Infrastructure Finance Company (IFC) 5. Systemically Important Core Investment Company 6. Infrastructure Debt Fund - Non- Banking Financial Company (IDF-NBFC) 7. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI) 8. Non-Banking Financial Company – Factors (NBFC-Factors) 9. Mortgage Guarantee Companies (MGC) 10. NBFC I. Asset Finance Company (AFC): An AFC is a company which is a financial institution carrying on as its principal businessas the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipment, moving on own power and general purpose industrial machines. Principal business for this purpose is defined as aggregate of financing real/physical assets...
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What is non banking financial company ( NBFC) - tradecareer.

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              FINANCIAL SERVICE ORGANISATION & ITS REGISTRATION PROCESS NON BANKING FINANCIAL COMPANY (NBFC) A (NBFC) is a company registered under the Companies Act, 2013 ( or any earlier  enactments) engaged in the principle business of: => Loans and advances,  => Acquisition of shares/stocks/bonds/ debentures/securities issued by Government       or local authority or other marketable securities of a like nature,  => Leasing,  => Hire-purchase,  => Insurance business,  => Chit business                                                                               BUT does not include any institution whose principal business is that of: => Agriculture activity,  => Industri...
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