In 20 years, Tata stock has grown from 1 lakh to 169 crores. From ₹3 to ₹2535
A multi-bagger stock is one in which a long-term stock investor benefits not just from an increase in the share price of its portfolio stock. There are numerous alternative sources of income for shareholders that allow their money to increase even when the stock is not rising. Announcements of interim dividends, bonus shares, and share buybacks, among other things, are additional avenues by which a long-term stock investor’s money can expand. However, if the stock grows in tandem with these factors, it becomes the frosting on the cake for stock investors.
Titan Company shares are one such firm that has provided excellent returns to its owners while also announcing bonus shares and a stock split. Titan shares are among the multibagger equities that the Indian stock market has produced in recent years.
Titan’s share price has risen from 3 to 2,535 per share, increasing over 845 times in the last 20 years. However, long-term investors have benefited from more than just stock price increase. During this time, the company also announced a 10:1 stock split and a 1:1 bonus share. Though an investor does not profit from a stock split, the number of shares issued increases and the input cost decreases. As the Tata group company announced a 10:1 stock split in June 2011, the stockholders who purchased Titan shares 20 years ago in August 2002 saw their input cost drop to 10% of their actual cost.
In June 2011, the Tata group corporation announced a 1:1 bonus share for its stockholders. As a result of the bonus share issuance, the cost price of Titan shares purchased 20 years ago fell by 50%. Because of the stock split, their input cost was already 10% of the total cost. The bonus share issue reduced their cost price to 5% of their actual purchase price. Due to the 10:1 stock split and 1:1 bonus shares announcement, the actual cost of one Titan share for such investors came down to 0.15 apiece.
As a result, long-term investors who purchased Titan Company shares 20 years ago for $3 per share now pay $0.15 per share thanks to the 10:1 stock split and 1:1 bonus shares announced in June 2011. Titan share price has risen from 0.15 to 2,535 per share, logging 16,900 times in the last two decades for such long-term investors.
If an investor had invested one lakh rupees in Titan Company shares twenty years ago at a price of three rupees, the amount would have increased 16,900 times (2535/0.15), amounting to 169 crore in the last two decades.
For a long time, the stock market has been one of the public’s preferred investing options. It has made many people wealthy by returning high returns on their investments. However, there have been instances where fraudsters duped investors and misled the market, creating irreversible and irreplaceable damage, and those stories will be remembered for years to come.
In this post, we’ll take a look at several fraudulent acts that had such a big impact that they shook the stock market when they were found.
This had a negative impact on the system’s normal operation as well as the finances of the investors, lowering the overall worth of the system.
Scam
Nature of Industry
Fraud Perpetrators
Year
Modus Operandi
Harshad Mehta scam
Capital market
Harshad Mehta
1992
Harshad Mehta used bank receipts extensively to raise funds from the banks. Subsequently invested the same in the stocks listed in the BSE to inflate the stock prices artificially
CRB scam
Capital Market
C R Bhansali
1996
Raised public money through various instruments like Fixed Deposits, Mutual Funds via non-existent firms used the same to rig share prices in the stock market
Ketan Parekh scam
Capital Market
Ketan Parekh
2001
Procured funds from banks and other financial institutions.Used those funds to inflate the stock prices artificially through circular trading
UTI scam
Mutual Fund
Chairman, Executive Director, Stock Broker
2001
The mismanagement of continuously investing in high-risk stocks and share heavy investments in Ketan Parekh’s K-10 shares
Satyam Scam
IT Company
Auditor, Director, Managers
2009
The top management of the software company manipulated the accounts to show inflated sales, profits and margins from 2003 to 2008Overstated the assets false disclosures
Sahara scam
NBFC
Subrata Roy
2009
Sahara Housing Investment Corp. Ltd. (SHICL), issued Optional Fully Convertible Debentures (OFCD) and illegally collected investor money circumventing the provisions of SEBI
Saradha Chit Fund scam
Ponzi scheme
Sudipta Sen
2013
The Ponzi scheme run by Saradha Group collected money from low-income investors by issuing redeemable bonds and secured debentures, promising incredibly high profits from reasonable investments. Embezzled the money of the investors and defaulted on repayments
NSEL* scam*NSEL, a company that provided an electronic platform to farmers and traders for spot trading in farm products and bullion among others
commodity market
CEO, Promoters
2013
The commodities that were traded were not found in the warehousesExcessive short selling and false reporting to exchange default on a payment to investors
PACL scam
Ponzi scheme
MD, Promoters, Directors
2014
The Ponzi land scheme run by PACL Ltd. duped investors in the name of assured returns from selling non-existent landsSiphoned the collected money and defaulted on re-payment
Co-location scam
Capital Market
Officials of NSE, Brokers
2015
Selected players allegedly obtained market price information ahead of the rest of the market through a co-location facility
Other notable frauds in the stock market that made headlines are:
Mishka Finance and Trading Limited – IPO Fraud: 2013-14
Rakhi Trading Case & Ors-Reversal Trades in F&O: 2007/2014-15.
Eco-Friendly Food and Esteem Bio Organic – LTCG/Penny Stock Fraud
WhatsApp Leak Case – Mass Insider Trading Case of 2017
Billionaire investor Rakesh Jhunjhunwala, dubbed “India’s Warren Buffet,” died on Sunday at the age of 62 in Mumbai. He had been ill for a few days and died today in Mumbai’s Breach Candy Hospital, according to hospital sources.
Jhunjhunwala founded Akasa Air and was dubbed “India’s Warren Buffett.” Rakesh Jhunjhunwala, a self-made trader, investor, and businessman, was the son of an income tax officer and is survived by his wife and three children.
Jhunjhunwala developed a youthful interest in stocks after witnessing his father, a retired tax commissioner, manage market interests, he told Bloomberg News in 2005.
Jhunjhunwala, who graduated with honours from Mumbai’s Sydenham College of Commerce and Economics, borrowed $100 from a brother-in-law in 1985 and began buying shares when he was 25.
Rakesh Jhunjhunwala was indomitable. Full of life, witty and insightful, he leaves behind an indelible contribution to the financial world. He was also very passionate about India’s progress. His passing away is saddening. My condolences to his family and admirers. Om Shanti. pic.twitter.com/DR2uIiiUb7
According to the Breach Candy Hospital in Mumbai, Jhunjhunwala had been ill for a few days and died today.
Rakesh Jhunjhunwala, who was born on July 5, 1960, attended the Institute of Chartered Accountants of India and married Rekha Jhunjunwala, who is also a stock market investor.
Jhunjhunwala was the owner of RARE Enterprises, a privately held stock trading firm.
He was also the owner of Akasa Air, India’s newest airline, which took to the sky earlier this month.
Many people questioned why he wanted to create an airline at a time when aviation was struggling, to which he responded, “I say I’m prepared for failure.” Rakesh Jhunjhunwala was always optimistic about India’s stock market, and the majority of the stocks he bought turned out to be multi-baggers. Rakesh Jhunjhunwala died at the age of 62. He began his stock market career while still in college with a Rs 5,000 investment, and he recently teamed up with ex-Jet Airways CEO Vinay Dube and former IndiGo CEO Aditya Ghosh to create Akasa Air, India’s newest budget carrier. On August 7, the airline launched commercial operations with a flight from Mumbai to Ahmedabad.
Jhunjhunwala, an investor with a Midas touch, was the country’s 48th richest man.
Jhunjhunwala invested Rs 5,000 in stock in 1985. That capital had grown to Rs 11,000 crore by September 2018. Rakesh Jhunjhunwala’s death leaves an indelible mark on the financial world, according to Prime Minister Narendra Modi. Rakesh Jhunjhunwala will be remembered for providing India with its new airline, Akasa Air, after more than a decade, said aviation minister Jyotiraditya Scindia on Sunday, while expressing condolences on the ace investor’s death.
Scindia inaugurated Akasa Air’s inaugural flight, from Mumbai to Ahmedabad, on August 7. The airline acquired its air operator licence from the Directorate General of Civil Aviation on July 7. (DGCA).
Rakesh Jhunjhunwala: my school and college mate. One year my junior. Believed stock India was undervalued. He is right. Amazingly sharp in understanding financial markets. We spoke regularly, more so during Covid. Will miss you Rakesh!
"You may call me a fool, you may call me anything, I may not live to see it but I can tell you one thing – India will overtake China in the next 25 years”
Rakesh Jhunjhunwala, Legendary Big Bull of India, said this last year. And India will overtake both China, USA
Deeply saddened by Rakesh Jhunjhunwala Ji's passing. A veteran investor & industrialist, his contribution to the Indian Capital Market was immense. The Big Bull of Dalal Street leaves behind an inspiring legacy. Condolences to his family and friends. pic.twitter.com/9Km2Phzsmy
Anguished to learn about the passing away of Rakesh Jhunjhunwala Ji. His vast experience and understanding of the stock market have inspired countless investors. He will always be remembered for his bullish outlook. My deepest condolences to his family. Om Shanti Shanti.
Instagram has been one of the sources to gain financial knowledge. If you are into trading and investing and use Instagram frequently. You should try out these amazing Instagram accounts. with over combines million followers, these folks are giving away the best of information through social media.
one can simply keep themselves updated by simply following them on Instagram. Here is the list of the top most accounts. If you like what they do, do follow them.
The NCFM stands for NSE Certification in Financial Market India. Students who take this course will be able to get knowledge of mutual funds, financial markets, equities research, capital markets, and currency derivatives. NISM, on the other hand, is an abbreviation for the National Institute of Securities Market, which is part of the Securities Exchange Board of India.
The NCFM and NISM certifications provide courses for applicants interested in expanding and structuring their careers in the stock market, derivatives, the mutual funds industry, and the general public who wish to learn more about the financial market.
What is NCFM (National Stock Exchange) Financial Markets Certification?
It may appear terrible to you, but it is not as frightening as it appears. The NSE established NCFM as an institute to create trained human resources with expertise in certain market segments and the industry to guide market participants.
Many certifications are held under the NCFM title to educate people working in the financial sector to follow the code of conduct established by the regulator, the SEBI (Stock Exchange Board of India), as well as to acquire the necessary skills and ability to understand the workings of the system and guide the audiences accordingly. The NCFM values human competence over technology, believing that the individual providing sales and service in the sector should be knowledgeable.
What is NISM (National Institute of Securities Markets)?
The NISM is an Indian public trust that develops and improves financial education for those working in the finance industry in order to maintain a financial literacy standard. The SEBI, the regulator, established this institute in 2006.
The NISM improves quality by starting educational programmes for industry participants. An international advisory group provides strategic guidance. NISM is made up of six separate schools offering various certificates.
They are named below: –
School for Investor Education and Financial Literacy (SIEFL)
School for Certification of Intermediaries (SCI)
School for Securities Information and Research (SSIR)
School for Regulatory Studies and Supervision (SRSS)
School for Corporate Governance (SCG)
School for Securities Education (SSE)
These schools educate persons who buy and sell assets in the securities market, as well as those hired directly or indirectly by financial institutions, as well as those engaged in securities market research and market supervision, such as ministers and officers.
It also holds corporate governance training and conferences. The goal of this institute is to provide education in accordance with the framework, objective, and vision of NISM in order to prepare competent professionals capable of serving the security markets.
NCFM vs NISM Infographics
Source: wallstreetmojo
NISM vs NCFM Exam Requirements
NISM Prerequisite
To apply for any NISM certificate, you must first complete out the online registration form on their website. Fill out the enrollment form to enrol in the certification of your choosing. The examination must be taken within 180 days following enrolment. Following that, you can select the examination centre and slot that are offered online. Students should use internet study materials to prepare for the examination. Following that, an online exam must be administered, with the results announced once the exam is completed.
NCFM is required
Register for this course online and reserve a slot for a convenient date and time. The training materials can be downloaded online or ordered from the institute. Different exams have different passing percentages that must be met. Some tests feature negative indications as well. You will be a qualified professional if you pass the online examination with the required passing percentage.
Comparative Table
Section
NCFM
NISM
Institution Created By
NCFM is created by the NSE – The National Stock Exchange.
The regulator, SEBI, makes NISM.
The number of Modules
NCFM has over 50 modules with foundations, intermediate, and advanced modules.
NISM has over 15 different courses and modules.
Mode of Examination
The NCFM provides online tests.
The NISM tests are all online.
Exam Window
The NCFM examination windows are open for candidates to book their seats at their convenience.
The NISM examination windows are available for candidates to reserve their seats at their convenience.
Subjects
The NCFM covers trading, mutual funds, currency derivatives, interest rates, banking, etc.
The NISM covers interest rate derivatives, currency derivatives, depository operations, mutual funds foundation, etc.
Pass Percentage
The NCFM passing percentage depends on the module you choose to appear for. Mostly the passing rate is between 50% to 60%; however, some examinations have negative markings.
The NISM passing percentage depends on the module you choose to appear for. Mostly the passing rate is between 50% to 60%; however, some examinations have negative markings.
Fees
The fee structure for the NCFM modules is priced at ₹ 1,500/- is revised to ₹ 1,700/- and taxes with effect from April 1, 2017.
Most NISM certifications are below ₹ 2,000; however, several cost higher than ₹ 10,000.
Job Opportunites/Job Titles
The NCFM job opportunities differ depending on your earned certificate.
The NISM job opportunities vary depending on the certificate you earned.
Important differences
The NCFM course was developed by the National Stock Exchange or NSE. The NISM course was developed by the Securities Exchange Board of India (SEBI).
Currency derivatives, banking, interest rates, trading, and mutual funds are among the topics covered by the NCFM. Currency derivatives, mutual fund foundation, depository activities, and interest rate derivatives are among the issues covered by the NISM.
An NCFM degree qualifies a candidate for the positions of trader, financial market consultant, stockbroker, dealer, analyst, and investor. A candidate with a NISM degree can apply for jobs as a banker, stockbroker, or securities market analyst.
The major goal of the NCFM course is to provide professionals with information, abilities, and expertise in comprehending essential financial sector features such as interest rates, currency derivatives, and so on. The NCFM course adds value to professionals’ jobs because no official training is currently available on the ever-changing dynamics of the financial business.
The National Institute of Securities Market NISM course, on the other hand, is designed to provide financial education and financial literacy to players in the financial sector. In other words, NISM focuses on providing financial market professionals with a deep understanding of the dynamics of ever-changing financial needs.
Why pursue NCFM?
The NCFM certification focuses on important areas of the financial sector; its primary goal is to provide knowledge and skills to financial industry professionals. Because there is no formal schooling or training for financial markets in India, these sector certifications for diverse fields are quite valuable in adding value to a profession.
NCFM has developed with a diverse set of qualifications, specialities, and orientations in all facets of the sector. Furthermore, the entire testing and scoring process for the evaluations is automated. These assessments are significant because they assess the candidate’s ability, practical knowledge, and skill in operating and performing in the financial market.
Why pursue NISM?
In the greatest interests of investors, the SEBI founded the NISM institute and guided individuals working in and throughout the business in learning and understanding financial markets.
The primary goal of this institute is to provide financial literacy and financial education to market participants. SEBI aims to improve the financial market’s quality by launching quality financial education.
If you are planning to appear for the NISM certification exam. It is very important that you enrol yourself and prepare alongside. one can prepare him/her through mock tests provided by sites like prepcafe/passforsure. Learning sharks students have scored more than 90% in their exams. One can learn about the modules in our derivativecourse.
You can go through the list of exams with their duration, fees, max marks, no. of questions pass marks and certificate.
Do you need to make an ATM withdrawal? When it comes to withdrawing cash quickly, a little cabin with a machine inside, known as an Automated Teller Machine (ATM), may be the best option.
The banks where we have bank accounts provide us with an ATM/debit card so that we may conveniently withdraw cash from ATMs.
Let us now look at the steps to withdraw money from an ATM.
Step 1: Insert ATM Card:
Insert your ATM Card in the ATM machine in the slot as marked in the above diagram.
Step 2: Select Language
Select your language from the language options appearing on the display screen (shown in the diagram above).
Step 3: Enter 4-Digit ATM Pin:
Use the Keypad(as marked in the diagram) to enter your 4 digit ATM Pin Number.
Do not ever share your ATM Pin with anyone. Ensure that nobody is watching you, while you enter the Pin.
Be careful while entering the Pin, as a wrong PIN may lead to the blockage of the ATM card.
Step 4: Select the type of Transaction:
On the ATM screen, you will be able to see different types of transaction options such as Deposit, Transfer, Withdrawal of Money, etc.
For cash withdrawal, you will have to select the Withdrawal Option.
Step 5: Select the Type of Account:
After selecting the cash withdrawal option, the screen will display different account types, select your account type.
As an individual banker, you should be choosing a savings account, as current accounts are a special type of accounts used by businesses.
Some ATMs offer you a choice to add a line of credit to your account. This can help a banker when they need excessive money in an emergency.
Step 6: Enter the withdrawal amount
Now, enter your withdrawal amount.
Make sure that you do not enter a withdrawal amount more than the balance in your account.
Now press enter.
Step 7: Collect the Cash:
Now collect the cash from the lower slot of the machine (as shown in the picture above).
Step 8: Take a printed receipt, if needed:
After you collect the cash, you will get an option of whatever you want a printed receipt of the transaction. If you want a printed receipt, click yes and close the transaction.
Step 9: Another Transaction:
If you want to undertake another transaction then select that option.
Withdrawals from an ATM card debit amount from any existing bank account (either savings or current), so when you wish to withdraw, ensure that you have sufficient balance in the account.
Are you a beginner or an intermediate? we get students who happen to be a noobie. We recommend starting from the basics of the stock market. This 2 day’s class not only covers what is NSE and BSE? or what is stock market knowledge and words. It includes all the stock market topics you need to be aware of. These topics will be covered by an expert cum trader.
Further, we have Financial derivatives. This covers the options, futures, and strategies like a bull call spread, bear call ladder and so on. The derivative analysis course will be taken by a separate mentor cum full-time trader. He has experience in trading all the strategies. He is not only a mentor but a long-time profitable trader.
Later comes the Technical analysis module. This is known to be the backbone of the course. This includes over 25+ trading strategies, 35+ Chart patterns, Types of candles and so much more. This course is also taken by a separate mentor cum trader. He is a full-fledged technical analyst and has an experience in trading profitably. He introduces live trading from the first class.
Last but not the least, we have psychology and risk management. This module is the Most Important &covers over 100+ topics including what to expect, risks and so much more.
Once you complete this 2 months course, there is a paid internship. Where you sit down with your batch mates and take 100 trades. You can take trades in the classroom or after it. You will be assigned with a trading buddy ( who has an experience in trading for years) and he will guide you through. He knows how to handle an inexperienced trader. After all, he himself was a noobie once.
Apart from the batch mates, and teachers, he will be the best trading friend. You can share your trades with him through. He reports to all the mentors and will stop you from putting loss-making trades. While encouraging you with a green flag when the trade is right.
Is that all? well one more surprise, since you read till the end. We provide students with funds up to 10 lac. During your internship, you get to trade with our money and practise as much. If you manage to stay profitable, you get to keep the 70% profit. If you lose, it’s all on us. It’s all real money btw.
How does that sound now? Too good to be true, right? oh well. Now you know why ” learning sharks” is considered to be the best stock market institute.
Need time to decide? if you still want to learn “how to trade” in the stock market from us? Take all the time in the world.No rush.
Just so you know
The Indian stock market is full of opportunities and is not going anywhere. However, your mind will.
Feel like speaking to the counsellor, who is a trader himself/herself? Go ahead, Dial us at 8595071711 or drop your questions at support@learningsharks.in
Do you ever just feel like you are acting mindlessly or like you are going through the motions? Are you shocked that your emotional responses cause you to sell when you should have planned to wait a bit longer? Or do you enter a deal too quickly without first carefully formulating a trading strategy? It’s possible that you’re succumbing to a natural tendency to follow the pack. Although it could appear normal, if you aren’t entirely aware of what you’re doing, you might find yourself forfeiting profits.
Even the masses who invest in the markets occasionally appear to behave without thinking. Once more, there is safety in numbers, and the masses find solace in doing as the throng does. They look for affirmation and attempt to follow the crowd. For instance, it is typical to observe the general public responding hastily to news headlines. Regardless of the underlying fundamentals driving the broader trend, traders in large numbers start selling as soon as they hear that a company has missed an analyst’s prediction. People start buying when a stock is hyped up, even if it is just due to unsubstantiated rumours.
Source: oakridger
The disciplined trader adheres to a thorough trading strategy. Impulsive traders operate on the assumption that everything will work out as they go along. Trading automatically can work if you are a really experienced trader, but if you are a new trader, you risk making mistakes. You can succumb to regret, greed, hope, or terror. However, when you allow your emotions rule, you’ll often behave like the crowd, and when you trade like a mindless herd member, you’ll incur losses.
Trading in the right frame of mind is frequently a need for success as a trader. Trading psychologist Dr. Van K. Tharp, founder of the Van Tharp Institute and author of numerous best-selling books on trading psychology, outlines three mental states that could influence your trading strategy. Traders transition from a “having” state of mind to a “doing” state of mind as they gain expertise trading the markets. But when they get to a “being” state of mind, they become profitable. Which mentality best describes your trading?
Many traders begin their careers with a mindset that prioritises “having.” They are preoccupied with profits and what they may buy with those profits rather than concentrating on how to trade in harmony with the markets. The primary objective is to make money, which can then be utilised to buy desirable items like a flashy red sports car, a roomy, opulent home, or a sizable collection of upscale clothing. They think that having enormous financial success will be the answer to all of their issues. Trading is more than simply a career; it is their last resort. Despite the fact that many traders are driven by financial gain, concentrating on what you might acquire as a result of your profits has drawbacks.
Source: The new york times
A trader’s mentality eventually shifts from “having” to “doing.” When a trader is in a “doing” frame of mind, their attention is directed toward understanding trading strategies and when they work and when they don’t. Dr. Tharp asserts that traders in the “doing” frame of mind continue to prioritise performance problems. What can this trading strategy do for me, they enquire? They are worried about how the technique can make them wealthy. Trading in the “doing” frame of mind is about evaluating the strategy and pondering if it is “working” rather than becoming involved with the markets.
However, picking a certain approach and applying it at random is not how trading is done. Developing your trading abilities is necessary to become a successful trader. You must cultivate your intuition by engaging in trading using a number of strategies under a variety of market circumstances and figuring out how the right strategy fits with the ideal market circumstances. Trading in a “doing” state of mind is essential for achieving market mastery, despite the fact that it rarely results in long-term profitability. You acquire the knowledge necessary to trade naturally and with a top performance attitude throughout this phase.
The “being” state of mind is the ideal mental condition for successful trading. A trader in the “being” frame of mind is completely tuned in to the markets rather than concentrating on results. He or she trades in time with the movement of the market. Trading the market and accepting it on its own terms are firmly committed to. A trader who is focused on trading right now intuitively recognises successful setups and trades them with ease. You can trade with a “being” frame of mind with enough practise and experience, albeit it might not happen right away.
