Episode 3: Different Kinds of Investment in Indian Stock Market

Different Kinds of Investment in Indian Stock Market

  In this Episode, we are going to explore various kinds of investment made in Indian Securities Market.

1. Equity Shares:

The form of partial ownership in a company endeavor is represented by equity shares. Collectively, equity stockholders own the business. They take on the risk and benefit from ownership. This equity shares are Issued by the companies through direct issuance and by stock Exchange. SEBI is the main regulatory board. Here the Investors can be Institutional and Individual

2. Debentures/Bonds/Notes:

The instruments used to raise long-term debt are debentures, bonds, and notes. Debentures can be secured (backed by collateral backing) or unsecured (without collateral support). Debentures and bonds come in a variety of forms, including completely convertible, non-convertible, and partially convertible debentures.

• Fully convertible debentures can be converted into common shares of the entity issuing them. At the time of issuance, the conditions of conversion are stated.

• Partially convertible debentures (PCDs) can be converted into common shares of the issuing firm in certain circumstances, which are laid out at the time of the issuance. These debentures' non-convertible portion is redeemed similarly to any other regular debenture.

• Non-Convertible Debentures (NCDs), which lack the ability to convert, are purely debt securities. At maturity, NCDs are repaid or redeemed.

Additionally, debt for durations up to a year is raised via short-term debt instruments. These include the government-issued Treasury Bills, company Commercial Papers, and bank-issued Certificates of Deposit.

This Debentures/bonds/notes are Issued by Companies and Government. Here the Investors can be Institutional and Individual. The Issue is done by Direct issuance by issuers and Stock Exchange and Regulated by RBI, SEBI and Regulators under the Companies Act

3. Warrants and Convertible Warrants

Options called warrants give the holder the right to purchase equity shares of the issuing company at a set price and time in the future. In the Indian Securities Market, only few businesses have so far issued warrants.

These Warrants are Issued by Companies. Here the investors can be Institutional and Individual. The issue can be done through Direct issuance by companies and Stock Exchange and regulated by SEBI.

In Next Episode 4 we are going to see other Remaining investments that we can make in Indian Stock Market