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Money Mindset: Approach problems in a non-linear fashion

My husband and I were contemplating a laid-back retired life when the tables suddenly turned. My partner and dear friend suffered a paralytic stroke just a few months before he was to retire.


Here’s how I tackled it and my advice to younger women.


Don’t minimize your role as a wife or as a woman.


Don’t assume that finances are only your husband’s problem, even if you are not earning. It is a partnership. You both are in the marriage together. Money decisions affect everyone in the house.


Society is always feeding us a narrative. You don’t have the mind for finances. You are too young. You are too old. Who is to make that decision for you? Why must age be a barrier? Why must gender be a barrier?


Take an interest. Question. Do your research. Offer solutions. Discuss. Start investing, whatever be your age or social status. If you husband gives you a monthly budget to run the house, you can even take as little as Rs 1,000 and start a systematic investment plan (SIP) into a mutual fund or a bank recurring deposit.


Never assume that good times are a given.


Besides the emotional and physical impact of me taking on the role of a caregiver, I was forced to take charge of the finances, something he had looked after all our married life.


The best time to educate yourself is when the going is good. I sometimes regret that I wasn’t this financially aware while we had a regular monthly income. I could have done so much more. Now, I even have an emergency fund in case I require it for a sudden medical expense. That way, I do not have to touch my investments.


Be clear on what you want.


When the final settlement cheque of my husband’s company was handed over to me, I realized that it was not the amount I envisaged. We had taken a loan on his provident fund to purchase a 2-bedroom apartment Bangalore.


The remaining amount would rapidly disappear if I did not take charge instantly and invest it.


I had one goal: Be financially independent and not ask my daughter for monetary support. All my actions stemmed from this decisions.


Approach problems from multiple angles.

I was brutally honest and aware of my complete lack of knowledge when it came to stock market. I did not understand chit funds.


This was in the mid-1990s when government undertakings were issuing bonds to the public at around 15% per annum. And, non-banking financial companies, or NBFCs, were passing on huge commissions to investors who invested in their debt instruments.


I began investing in these bonds and lived off the interest. By living frugally, I also was able to reinvest the interest too, and gradually increased the principle. When interest rates began to dip, I started to look at mutual funds.


I scheduled my investments to ensure that cash flow comes from a Systematic Withdrawal Plan (SWP), dividends or interest payments. With these inflows, I managed my daily expenses, outings and pampered my two grandsons. Larger purchases and expenses are put off till an investment matures.


When I was handed the cheque, I realized that I needed to attack the problem from various aspects. For one, I had to cut down on wasteful expenditure and adopt a frugal lifestyle. This would help save my corpus from getting depleted. But simultaneously, I had to grow the corpus. Because the erosion of the value of money due to inflation would continue, irrespective of my circumstances. Hence, I had to invest the money and take a call not to touch the principal, and instead add to it when possible.


Approach a problem from different angles. To be financially independent, I had to do various things – cut down on frivolous expenditure, increase my corpus and ensure inflows. Good investing is not just about knowing where to invest, but what to avoid.


Don’t blindly follow what another is doing. You need to take a hard look at your circumstances, and knowledge and what you are comfortable with.


Never be afraid to ask questions. Never be too arrogant to not reach out for help. Where I am today is because of the sound advice from well-meaning individuals.

Just because I avoided an investment at one time (equity), doesn’t mean I should continue. Allow yourself to evolve, as an investor and as a woman.


Padma Ramarathnam’s husband passed away. Thanks to her decisions, she is financially independent even in her 80s.



Source: Morningstar

Procedure of SME Listing on SME Exchange In India

SME Exchange provides a great opportunity to small and medium enterprises to raise equity capital for the growth and expansion of their business. SME exchange is a stock exchange for trading the shares of small and medium enterprises who otherwise would find it difficult and costly to get listed in the main board of a recognised stock exchange.


“SME exchange” means a trading platform of a recognised stock exchange having nationwide trading terminals permitted by SEBI to list the specified securities issued in accordance with Chapter IX of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and includes a stock exchange granted recognition for this purpose but does not include the Main Board. Currently there are 2 stock exchanges providing SME exchange in the country, they are:


NSE’s SME Exchange i.e., NSE EMERGE.
BSE’s SME Exchange i.e., BSE SME.


SME Exchange is growing at a very fast pace which can be seen from the data available with the BSE SME website which states that there currently around 336 companies which have listed their share on SME Exchange with a total market capital of Rs. 27,318.64 Crore till date. Additionally, Rs. 3,492.54 Crore have been raised via various means on the BSE SME Exchange till date.




Higher visibility and Recognition.


Higher credibility with stakeholders like customers, vendors, employees, etc.


Equity financing provides growth opportunities like expansion, mergers and acquisitions thus being a cost effective and tax efficient mode.


Higher valuation of the company.


Enables Liquidity for Shareholders.




1. Appointment of Intermediaries – This stage includes appointment of various intermediaries required for listing under SME Exchange such as Merchant Bankers registered with SEBI to act as Lead Manager to the Issue, Underwriters and Legal Advisors.


2. Pre- IPO Stage- This refers to the procedural aspects for listing under SME Exchange which includes Increase of Authorised Share Capital, passing of resolution for further issue of share capital under section 62(1)(c) of the Companies Act, 2013, Re-Structuring of Boarde., Appointment of Directors to satisfy the conditions prescribed under the Companies Act as well as the SEBI Regulations.


3. Preparation Stage – This stage includes conducting of Due diligence by the Lead Manager to the Issue i.e., the Merchant bankers who would check all the documentation including all the financial documents, material contracts, Government Approvals, Promoter details etc. This exercise would also help in preparing Offer Document appropriately.


4. In-principal approval of draft prospectus – The Issuer shall file the draft prospectus along with the documents in accordance with the SEBI (ICDR) Regulations, other statutes, notifications, circulars, etc. governing preparation and issue of prospectus prevailing at the relevant time. The Issuers may particularly bear in mind the provisions of Companies Act, Securities Contracts (Regulation) Act, the SEBI Act and the relevant subordinate legislations thereto.


5. Application to BSE SME Exchange – On completion of Due diligence by the merchant Banker along with approval of the Draft prospectus, an application shall be filed with the stock exchange for admission of their securities to dealings in their respective exchange, i.e., taking in-principal approval from the stock exchange.


6. Filing of RHP/Prospectus – Merchant Banker then files these documents with the ROC indicating the opening and closing date of the issue. Once approval is received from the ROC, they intimate the Exchange regarding the opening dates of the issue along with the required documents.


7. Post Listing – Stock Exchange then finalizes the basis of allotment and issues the Notice regarding Listing and Trading.




1. Regulation 33: Financial Results: -The listed entity shall submit financial results to the stock exchange within forty-five days of end of each half year as compared to quarterly submission prescribed for companies listed on Main Board of the Exchanges.


2. Regulation 47: Advertisements in Newspapers: – The requirements of this regulation shall not be applicable in case of listed entities which have listed their specified securities on SME Exchange.


3. Regulation 31: Holding of specified securities and shareholding pattern: – The listed entities which have listed their specified securities on SME Exchange shall submit to the stock exchange(s) a statement showing holding of securities and shareholding pattern separately for each class of securities on a half yearly basis within twenty-one days from the end of each half year as compared to quarterly submission prescribed for companies listed on Main Board of the Exchanges.


Source: Taxguru

Unlock the Potential of SME Trading in India – Here’s How

Stock market investing involves a wide array of options. It is not just about buying and selling shares in the secondary market. There are so many different strategies out there. Not to mention, different markets. You have the Initial Public Offer (IPO) or primary market, the derivatives segment, and now the latest Small-Medium Enterprises (SME) exchange.


For savvy investors looking for newer, more profitable options, the SME exchange can be a great platform.


What is SME?
Usually, companies listed their shares on the exchange in the primary market through an Initial Public Offer (IPO). This included firms of all sizes – small, medium and large. However, small and medium enterprises had a greater scope of risk than larger companies. Investors needed a high degree of stock market knowledge to sift through the companies and find companies that matched their risk appetite. This is not possible for every investor. As a result, many small investors made losses. To avoid this, both NSE and BSE created separate exchanges in India catering only to small and medium-sized firms. The BSE calls it SME exchange, while NSE’s exchange is called ‘Emerge.’


Why should you trade SMEs?
There are so many small and medium-sized companies listed on the regular stock market segment. It is difficult for the interested investor to sift through the thousands of smallcap and midcap stocks to identify value-making companies. This is not so in the SME exchange. It is a niche segment for small and medium enterprises, which have the potential to give higher returns. Moreover, the exchanges have entry restrictions like positive net worth and cash flows for two years before listing. Also, companies, which had once applied for winding up or restructuring, are not allowed to list on the exchange. These restrictions help insulate investors from additional risk.


How do you trade SMEs?
Trading on the SME exchanges is almost like the normal buy and sell procedure. It does not require any extra procedures. However, some trading rules differ. For one, the SME exchange has a larger-than-normal lot size – the minimum number of shares you can buy or sell in each transaction. You cannot trade amounts lower than Rs 1 lakh. Also, the lot size varies with the price of the stocks. For example, on the NSE Emerge, if the stock price is lower than Rs 14, then the lot size is 10,000. However, if the stock price is between Rs 120 and Rs 150, then the lot size falls to 1,000.


Other trading guidelines
These stocks are traded in the cash segment. They can be bought and sold either in the continuous market or specifically in the call auction market. Just like the normal cash segment, these shares fall into different series like the ‘rolling settlement,’ ‘block trading window,’ ‘ odd lot trading,’ and so on. Moreover, you can place both market as well as limit orders just like a normal trade. These can be modified and cancelled until processed. Once settled, the shares will be delivered in T+2 days.


Some care should be taken while trading on the SME exchanges in India. First of all, investors should know that the risk factor is quite high while investing in small and medium sized companies. Yes, they are capable of giving really great returns, but they also have a higher than average probability of turning bust. Ensure you get your research correct. Also, liquidity is lower on the SME exchanges. Unlike the regular exchange, your order may not find a matching buyer/seller immediately. In such a case, the exchange may also cancel order, especially in the call auction market.


Source: Upstox

BSE SME Exchange has produced many micro Rakesh Jhunjhunwalas

Since the launch of BSE SME Exchange on March 13, 2012, a total of 359 small and medium enterprises (SMEs) have been listed so far at the exchange, raising funds to the tune of around ₹3,800 crore. Their net market capital today is around ₹52,000 crore. In a decade, the gross level estimated return by the SME Exchange has been around 3.4, which means that an investor has got return of ₹3.4 on one’s Re 1 investment in these 10 years. In fact, majority of the SMEs got listed at the BSE SME Exchange in last 5 years, so the actual return would come much higher if the return is seen through this angle.


BSE Ltd set up the BSE SME Platform to enable the listing of SMEs from the unorganized sector scattered throughout India, into a regulated and organized sector.


On nearing 10 years of BSE SME Exchange, Ajay Thakur, Head at BSE SME in a conversation with Livemint said, “In this one decade time, 359 BSE SMEs have raised around 3,800 crore. The average gross level estimated return is around 3.4, which could become possible because of the emergence of new set of merchant bankers who are ready to aid small ticket sized companies with their network. Apart from this, in the last one decade, the Exchange has been able to attract small and micro ace investors who are ready to invest in a small company and wait for two to three years after listing.”


The exchange has become a relevant platform for the SMEs to raise fund through Initial Public Offering (IPO), helping good number of merchant bankers and small ticket sized ace investors.

After the launch of BSE SME Exchange, a good number of MSMEx cohorts have emerged. “These MSMEx cohorts motivate quality SMEs to go for listing and raise fund through IPOs. Since ticket size of these SME IPOs are very small, targeting ace investors like Rakesh Jhunjhunwala, Dolly Khanna, Vijay Kedia, Ashish Kacholia, etc. is not viable,” highlighted Amit Kumar, CEO & Co-founder at MSMEx.


But, Kumar said that there is huge number of micro ace investors, who got attracted to these BSE SME listed companies. “Their 1 crore to 5 crore investments in SME stocks have helped the listed SME to grow at a faster rate delivering stellar returns to its shareholders. This is getting reflected in the number of SME stocks entering in the list multibagger stocks in 2021 in India.”


So, one can say that BSE SME Exchange has produced new set of merchant bankers and a huge number of micro ace investors such as Rakesh Jhunjhunwala, Dolly Khanna, Vijay Kedia, Ashish Kacholia, he added.


Source: livemint

BITO the first Bitcoin futures ETF starts trading on NYSE

The long wait for Bitcoin futures exchange-traded fund (ETF) in the U.S. is finally over when the cryptocurrency officially hit the New York Stock Exchange (NYSE) during the week with the launch of the new Bitcoin-linked futures ETF. 

The ProShares Bitcoin Strategy ETF (NYSE: BITO) started trading on the exchange with increased participation from the Wall Street investors.

ETF touches a $1 billion in trading volumes on the first day of trading

The ETF started trading on October 19, for $40 a share and posted a rise of 4.85% before closing on the first day with gains of 2.59%, at $41.94 per share. At the end of Day 1 of trading, the ETF surpassed the $1 billion in volumes and becomes the second most traded ETF on its first day. 

The number one position is held by the BlackRock U.S. Carbon Transition Readiness ETF with $1.16 billion in trading volumes on its first day.

What are Bitcoin Futures?

Bitcoins and Bitcoin futures are two different assets. In the futures contract, as in the case of BITO, an investor will agree to buy or sell the asset in the future at some specified price (similar to other stock futures contracts). 

Futures contracts here are derivatives of Bitcoins and are not directly backed by physical Bitcoins. Investors are not directly buying and selling the underlying asset (Bitcoin in this case).

How does this ETF work?

The ETF trading under the ticker symbol BITO, lets investors buy into bitcoins through the futures contract (F&O segment) without actually buying it on a crypto exchange. By investing in this new ETF fund, investors are likely to be betting on the potential of the shares of the ETF to be worth more in the future. 

The underlying driver behind the value of the shares in this fund is Bitcoins. This works similar to other futures contracts like the commodities ETF or the gold futures ETF where the investors do not buy physical gold or gold bars. 

How does a Bitcoin ETF impact the price of Bitcoins?

Bitcoin price surged to a record high of more than $60,000 on the news and touched $66,974 on Wednesday, crossing the previous high of $64,889 set in April. Since this ETF is a future-based ETF that tracks futures contracts as opposed to the current price of the asset, the price of the ProShares ETF won’t be the same as the price of the Bitcoin.


ProShares had to peg the future price to a listed exchange price and has picked the Chicago Mercantile Exchange (CME) as the benchmark. This may lead to a situation where the ProShares’ fund is likely to trade at a premium in a bull market and a discount in a bear market which might make the ETF a good short-term investment than for an investor who is looking at long-term investments. 


What are the costs involved?

BITO has an expense ratio of 0.95% which looks quite high at the moment. In other words, if an investor invested $10,000 in this fund $95 will go towards the funds’ operating expenses. 

The ideal low-cost index funds have an expense ratio of around 0.30%. Since this is a new asset class, there may be many middlemen and the price of the futures ETF is likely to be high until more competition brings down the fees and expenses of the ETF. 

It also seems that in the coming months, it’s likely that more firms will follow in ProShares’ footsteps and offer their own futures-based crypto ETFs. Fund houses like Valkyrie Investments, VanEck, and Invesco are awaiting the SEC’s green signal.

Market hours

BITO will be trading at regular market hours like any other stock, unlike Bitcoin which can be bought, sold, or traded at any time. Investors can place orders for BITO during off-market hours, however, the orders will be executed during the market hours only unlike Bitcoins. 


Bitcoin-linked ETF comes with protection in line with other conventional investments. While only a cash balance in a traditional brokerage account is covered by FDIC insurance, brokerage accounts are protected by the Securities Investor Protection Corporation (SIPC). 

This insurance covers accounts up to $500,000 in securities if a brokerage is closed due to bankruptcy or other financial difficulties and if customers’ assets are missing from accounts.

So, should you buy a Bitcoin-linked ETF?

Bitcoin is still very new compared to conventional stock market investing, which means it lacks the historical track record which investors can use to anticipate future performance. 

While there may be a difference in the price of Bitcoin and the price of BITO, Bitcoin is highly volatile and the ETF is also likely to see similar volatility. Bitcoin prices saw an all-time high of over $60,000 in April before losing half of their value and trading below $30,000 and have now returned to $60,000 levels once again. 


Investors can expose 5-10% of their portfolios in buying cryptos or investing in crypto-linked ETFs like BITO. 

Also, investors should remember that investments in any speculative investment should never be at the expense of other financial goals like paying off high-interest debt or saving for retirement since these are high-risk-high-return assets in the portfolios.

Having said that, we are pleased to bring BITO, the first Bitcoin-linked ETF, on our platform for our investors to make use of this opportunity so that they can conveniently invest in Bitcoin ETF in their regular brokerage account.  

This ETF is going to allow many investors who were looking to invest in Bitcoins and other Cryptos but did not know how to begin with.  Also, BITO is safe for investors to gain access to the crypto world as it is regulated by the SEC, marking it the first regulated cryptocurrency investment vehicle in the U.S. to go mainstream. 

ETFs allow investors to diversify their portfolios without having to own the assets themselves. We have seen some good participation from Indian investors in BITO after the ETF was available on our platform during the week.