LS Industries Shares Drop Amid SEBI Investigation

Shares of LS Industries Ltd (LSIL) have taken a hit, falling 4.99% today to ₹64.56 by 10:20 AM. Over the last five days, the stock has dropped 9.96%, and in the past month, it has lost 20.98%. The decline follows an interim order from the Securities and Exchange Board of India (SEBI), which flagged suspicious trading activity and possible regulatory violations.

Interim Order and Trading Restrictions

SEBI issued an interim order restricting LSIL and multiple individuals from trading. It also impounded ₹1.14 crore in unlawful gains from Jahangir Panikkaveettil Perumbarambathu, the NRI who received shares at a fraction of their value.

Additionally, LSIL has been barred from accessing the capital market until further notice, impacting investor confidence.

SEBI Flags Unusual Price Movements

The stock saw an unusual surge of 1089% in just over two months, climbing from ₹22.50 on July 23, 2024, to ₹267.50 on September 27, 2024. This sharp rise was seen despite LSIL reporting negligible revenue and operational losses for years.

SEBI noted that the company’s former director transferred shares worth crores for just $1 (₹75) to a Dubai-based NRI, raising questions about possible violations of the Foreign Exchange Management Act (FEMA).

Financials Don’t Match Valuation

LSIL, previously known as Lifestyle Fabrics Ltd., has reported negligible revenue from FY22 to FY24. Its financials show:

  • Total income in FY24: ₹0.58 crore
  • Consistently negative or nil cash from operations since FY16
  • Debtor days rising from 118 in FY11 to 58, 416 in FY24

Despite these weak financials, LSIL’s market capitalization touched ₹22,700 crore in September 2024, raising concerns about price manipulation.

Suspicious Trading Patterns

SEBI’s investigation found that a few entities repeatedly placed buy orders, causing a rapid price increase. These same entities then offloaded shares in large volumes, leading to a price drop.

By November 21, 2024, the stock had fallen to ₹42.39, an 84.15% drop from its peak. The trading pattern closely resembled a pump-and-dump scheme.

Stock Continues to Decline

With the SEBI probe ongoing and trading restrictions in place, LSIL’s stock has continued to slide. The coming months will likely determine how the company responds to regulatory scrutiny and whether further action is taken.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

BPCL to Receive 2.5 Million Tons of LNG from ADNOC

Bharat Petroleum Corporation Ltd (BPCL) has signed a five-year deal with Abu Dhabi National Oil Company (ADNOC) for the supply of 2.5 million tons of liquefied natural gas (LNG), according to news reports. The agreement will see BPCL receiving 40 cargoes over the contract period, with deliveries starting in April, as per news roports.

In the first two years, the supply will be lower and will gradually increase over time. No further details were provided about the specific volume distribution across the years.

Deal to Be Signed at India Energy Week

News reports indicate that the agreement will be formalised during the India Energy Week conference, a four-day event where multiple energy-related discussions and deals are taking place.

ADNOC’s Additional Agreement with IOC

Apart from the BPCL deal, ADNOC is also expected to sign a separate 15-year LNG supply agreement with Indian Oil Corporation (IOC). This agreement, which was originally made in September last year, will begin LNG deliveries from April 2025.

India’s LNG Imports and Plans

India is currently the fourth-largest importer of LNG in the world. The country is aiming to increase the share of natural gas in its total energy mix from 6.2% to 15% by 2030. This shift is part of a broader plan to reduce reliance on conventional fossil fuels.

Indian companies are also looking at alternative LNG suppliers, including the United States. Oil Secretary Pankaj Jain mentioned on Monday that discussions are underway to explore additional sources.

Market Performance

As of February 11, 10:39 AM, Bharat Petroleum Corporation Ltd (BPCL) is trading at ₹258.50, down ₹1.40 (0.54%)for the day. Over the past month, the stock has declined by 2.53%, while its year-to-date performance shows a deeper drop of 12.43%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

BSE Subsidiary Asia Index Introduces 5 New Indices

Asia Index, a subsidiary of the Bombay Stock Exchange (BSE), has launched 5 new stock market indices aimed at providing broader market representation. The newly introduced indices are BSE 1000, BSE Next 500, BSE 250 Microcap, BSE Next 250 Microcap, and BSE 1000 Multicap Equal Size Weighted (25%).

Objective and Market Coverage

The indices are to track companies across different market segments, from large-cap to micro-cap. This provides a structured approach for investors and market participants to monitor stock performance across various categories.

According to the Asia Index, these indices will serve as benchmarks and could be used for passive investment strategies, including index funds and ETFs.

Details of the New Indices

  • BSE 1000: Represents the 1000 largest and most liquid companies under the BSE AllCap universe.
  • BSE Next 500: Consists of 500 companies within BSE 1000 that are not included in BSE 500.
  • BSE 250 Microcap: Tracks 250 of the largest and most liquid companies within BSE Next 500.
  • BSE Next 250 Microcap: Includes the remaining 250 companies from BSE Next 500 that are not part of BSE 250 Microcap.
  • BSE 1000 Multicap Equal Size Weighted (25%): Comprises companies from different size segments – BSE 100 LargeCap, BSE 150 MidCap, BSE 250 SmallCap, and BSE Next 500, each given an equal weight of 25%.

BSE 1000 accounts for over 93% of India’s market capitalisation. 

Commentary from Asia Index

Ashutosh Singh, MD and CEO of Asia Index said “BSE 1000 represents over 93% of India’s overall market capitalisation and therefore will serve as a relevant benchmark for the overall stock market. The index is designed to serve as a comprehensive barometer of India’s growing economy, reflecting the diversity and dynamism of our corporate sector, representing companies that are industry leaders and emerging businesses.”

With the introduction of these indices, investors and analysts now have additional tools to assess market trends and stock performance across different categories.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Franklin India Low Duration Fund Files Draft with SEBI

Franklin Templeton Mutual Fund has submitted a draft to SEBI for the Franklin India Low Duration Fund (FILDF). This is an open-ended debt scheme that will invest in low-duration debt and money market instruments. The scheme will maintain a Macaulay duration of 6 to 12 months, categorising it as a short-term debt fund.

NFO Details

The New Fund Offer (NFO) opens on February 25, 2025, and closes on March 5, 2025. The scheme will reopen for continuous purchase and redemption on March 7, 2025. Units will be available at ₹10 per unit during the NFO period. The minimum investment amount is ₹5,000, with additional purchases allowed in multiples of ₹1.

The scheme aims to generate income by investing in debt securities, corporate bonds, PSU bonds, and money market instruments. The benchmark for this fund is the NIFTY Low Duration Debt Index A-I.

Risk Classification

As per SEBI guidelines, the fund falls under Potential Risk Class (PRC) B-III, which indicates moderate credit risk and relatively high interest rate risk. This classification means that while the fund will invest in relatively safer instruments, its value may be affected by fluctuations in interest rates.

Asset Allocation

The fund will primarily invest in debt and money market securities, with a securitized debt exposure of up to 50%. It may also use derivatives for risk management. The scheme does not propose to invest in foreign securities, REITs, or InvITs.

There is no exit load for this scheme. The expense ratio will be aligned with SEBI regulations, with a maximum cap of 2% on the first ₹500 crore of assets under management (AUM).

Redemption and Liquidity

Investors can redeem units on any business day, with proceeds expected within three working days. The fund aims to maintain sufficient liquidity to meet redemption requests. The scheme will be managed by Chandni Gupta and Rahul Goswami, who have experience in fixed-income investments.

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Canara Robeco Multi Asset Allocation Fund Filed Draft With SEBI

Canara Robeco Mutual Fund has submitted a draft offer document to SEBI for its upcoming Canara Robeco Multi Asset Allocation Fund. This is an open-ended hybrid scheme that plans to invest in multiple asset classes, including equities, debt instruments, and commodities like gold and silver ETFs.

Asset Allocation Breakdown

The fund will follow a structured asset allocation model:

  • Equities and Equity-related Instruments: 65%-80%
  • Debt and Money Market Instruments: 10%-25%
  • Gold and Silver ETFs: 10%-25%

It also invests up to 10% in units issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The fund’s exposure to derivatives will be capped at 50% of net assets, mainly for hedging and portfolio balancing purposes.

Liquidity and Redemption Process

As an open-ended scheme, investors will be able to subscribe or redeem units on any business day. The fund will not be listed on stock exchanges. Redemption proceeds are expected to be processed within three working days, barring exceptional situations that may warrant additional time.

Benchmark Composition

To assess the fund’s performance, it will be benchmarked against a mixed index for exposure across various asset classes.:

  • 65% BSE 200 TRI
  • 20% NIFTY Short Duration Debt Index
  • 10% Domestic Gold Price
  • 5% Domestic Silver Price

Investment Objective

The scheme aims for long-term capital appreciation by diversifying across asset classes. However, as with any mutual fund, returns are not guaranteed. Investors should assess their risk appetite before investing.

Key Details

  • Minimum Investment: ₹5,000 for lump sum purchases
  • SIP Investment: ₹1,000 per month or ₹2,000 per quarter
  • Exit Load: 1% if redeemed within 365 days for amounts exceeding 12% of allotted units; Nil for redemptions beyond one year.

The equity portion will be managed by Ennette Fernandes and the debt segment will be overseen by Kunal Jain, who has experience in fixed-income securities.The fund’s launch date and subscription details will be provided once SEBI grants approval. 

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Bandhan Hybrid Equity Fund Renamed To Bandhan Aggressive Hybrid Fund

Bandhan Mutual Fund has announced that the Bandhan Hybrid Equity Fund will now be called Bandhan Aggressive Hybrid Fund, effective March 19, 2025. The change is limited to the name, and there are no modifications in the investment approach or portfolio composition.

Structure and Exit Load

The fund requires a minimum investment of ₹1,000, with the same amount needed for additional contributions. SIP investments start at ₹100, while the minimum withdrawal limit is ₹500. Investors need to provide at least six cheques to initiate SIPs. The minimum balance requirement is ₹1.

The exit load structure remains unchanged. If investors redeem more than 10% of their units within a year, they will be charged 1% as an exit load. There is no lock-in period, making it flexible for those who may need liquidity.

Performance and Management

Launched on December 30, 2016, the fund has delivered a return of 12.84% since inception. It follows the CRISIL Hybrid 35+65 Aggressive Index as its benchmark. The assets under management (AUM) stand at ₹786 crore as of January 31, 2025, with an expense ratio of 1.03%. It falls under the very high-risk category according to the riskometer and is graded as above average in risk assessment.

 The fund is managed by Prateek Poddar, who oversees the allocation between equity and debt.

Portfolio and Dividend History

The scheme primarily invests in equity and equity-related instruments for long-term capital appreciation, along with debt securities and money market instruments. It follows an aggressive hybrid strategy, typically allocating a higher portion to equities while maintaining a debt component for risk management.

The most recent dividend payout under the IDCW plan was ₹0.337 per unit, recorded on December 30, 2024. While the name is changing, the fund’s core investment philosophy remains the same.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Policybazaar Partners with HDFC Life for a Term Plan with 100% Claim Assurance

Policybazaar has collaborated with HDFC Life to introduce a new term insurance plan, HDFC Life Click 2 Protect Ultimate. The plan comes with a 100% claim settlement guarantee, aiming to address concerns related to claim rejections and to help with financial security for policyholders’ families.

Features of the Plan

HDFC Life Click 2 Protect Ultimate includes features to provide flexibility and financial benefits to policyholders:

  • Return of Premium on Maturity – If the policyholder outlives the policy term, they receive all the premiums paid.
  • Smart Exit Benefit – Allows policyholders to exit the plan and get a refund of total premiums paid (excluding taxes).
  • Terminal Illness Benefit – If diagnosed with a specified terminal illness, the death benefit is paid out in advance. This comes with a six-month waiting period.

Target and Availability

HDFC Life Click 2 Protect Ultimate is available to salaried professionals earning ₹10 lakh or more annually. The plan requires a detailed medical underwriting process for approval. It is currently offered in major Indian cities, including Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, and Pune.

Claims and Transparency

The 100% claim settlement assurance is one of the primary aspects of this plan. By ensuring that valid claims are honoured, the plan aims to remove uncertainty for beneficiaries. 

Santosh Agarwal, Chief Business Officer, Life Insurance, Policybazaar, mentioned that the plan is designed to simplify claim settlements for customers. Jatin Sabhani, Chief BroCA & Digital Alliances Officer, HDFC Life, stated that the partnership aligns with their goal of enhancing financial protection for policyholders.

With a focus on claim certainty, flexibility, and additional benefits, HDFC Life Click 2 Protect Ultimate is positioned as an option for those looking for structured financial security.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Tata Power To Expand Clean Energy Portfolio with Hydropower and Nuclear Projects

Tata Power is accelerating its clean energy initiatives by expanding hydropower capacity and exploring nuclear energy opportunities. The company is also working on international projects, particularly in Bhutan, while strengthening its renewable energy portfolio within India. 

According to a Bloomberg report, Tata Power CEO Praveer Sinha stated that the company is actively evaluating new clean energy projects, including hydropower and nuclear energy.

Hydropower Expansion and Domestic Growth

As of 31 December 2024, hydroelectric power accounted for about 10% of India’s total energy capacity. Tata Power is set to enhance this sector with two new hydropower projects. The first project, with a 1 GW capacity, is expected to be operational by March 2029, followed by a second 1.8 GW project a year later.

Additionally, the company is conducting feasibility studies on two more potential projects within its existing reservoirs. Tata Power currently has an installed capacity of 14.45 GW, with nearly 40% coming from renewable sources.

The company is also looking to capitalise on recent amendments to the Nuclear Power Act by exploring partnerships with the government for small modular nuclear reactors. This move aligns with India’s increasing focus on clean energy, despite financial challenges faced by utilities in upgrading their infrastructure.

International Expansion and Infrastructure Development

Tata Power has commenced work on a 600 MW hydropower plant in Bhutan and is seeking opportunities for two additional large-scale projects, with at least one expected to begin by the end of 2025.

Tata Power will look for opportunities to set up small modular nuclear reactors in partnership with the government following recent changes to the Nuclear Power Act.

Tata Power Share Performance

As of February 10, 2025, at 3:20 PM, the shares of Tata Power are trading at ₹358.10 per share down by 2.48% from its previous closing price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

New Income Tax Bill to be Tabled Soon – Here’s What You Need to Know!

The Budget Session of Parliament resumed on Monday, 10 February 2025, and one of the most anticipated developments is the tabling of the new Income Tax Bill. Cleared by the Union Cabinet last week as per reports, the bill is expected to be introduced in the Lok Sabha soon. Even if it is not presented today, discussions around the bill are likely to stir significant debate in Parliament.

The Union Budget 2025 had already indicated that the Ministry of Finance would present the new tax bill to the Union Cabinet this week. At a press conference following the Budget, Finance Minister Nirmala Sitharaman expressed optimism that the bill would pass without major hurdles. The government has assured that the new legislation will be 50% shorter than the existing tax code, with improved clarity and simplified provisions.

What is the New Income Tax Bill?

The proposed Income Tax Bill aims to replace the Income Tax Act of 1961 with a modern and streamlined version of tax laws. The primary goal is to eliminate ambiguity, reduce legal complexities, and improve transparency in tax regulations.

One of the most notable aspects of the bill is its concise structure—the government intends to halve the length of the current tax legislation while ensuring that its provisions remain comprehensive. This simplification will make it easier for taxpayers to understand their obligations without relying heavily on tax professionals.

According to Finance Secretary Tuhin Kanta Pandey, the new bill will remove complex legal jargon, making interpretation simpler and reducing the scope for tax disputes. The initiative aligns with the government’s broader vision of improving the ease of doing business in India.

Key Highlights: How the New Bill Simplifies Tax Laws

1. Removal of Outdated Provisions

The current Income Tax Act of 1961 consists of 298 sections spread across 23 chapters. Over the years, multiple amendments have been made, leading to overlapping provisions and redundant taxes. The new bill aims to eliminate outdated sections and streamline the tax framework.

Notably, India has already abolished several taxes such as:

  • Wealth tax
  • Gift tax
  • Fringe benefit tax

These removals have simplified tax compliance, and the upcoming bill is expected to continue in this direction by discarding provisions that no longer serve a practical purpose.

2. Clarity Through Simplified Language

A major challenge with existing tax laws is their complex wording and extensive cross-referencing, which makes interpretation difficult. The new bill seeks to:
Use clear and direct language to make tax laws more accessible.
Reduce legal disputes caused by misinterpretation of provisions.
Ensure taxpayers can independently understand their liabilities without excessive dependence on legal professionals.

3. Lower Legal Disputes and Tax Litigation

The government aims to address long-standing tax disputes by providing greater certainty in tax provisions. Currently, many corporate and individual taxpayers are engaged in litigation due to unclear tax laws. With simplified rules and fewer ambiguous provisions, the new Income Tax Bill is expected to minimise tax-related court cases.

4. Alignment with Global Best Practices

Several developed economies have shifted to simpler tax regimes that encourage compliance and reduce tax evasion. The new bill is expected to align India’s tax structure with global standards, making it easier for both domestic and foreign investors to navigate the system.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Reliance Infrastructure Resolves ₹6,503 Crore Dispute with CPL

Reliance Infrastructure Limited has settled its dispute with CLE Private Limited (CPL) through mediation under the Bombay High Court. The resolution involves a total amount of ₹6,503.13 crore, bringing an end to the long-standing legal matter between the two companies.

Breakdown of the Settlement

As part of the settlement, ₹5,777.13 crore worth of assets and economic interests from CPL will be transferred to Reliance Infrastructure. Additionally, ₹726 crore, which was previously a decreed amount, will now be converted into a secured loan. The company has stated that the agreement includes standard legal provisions such as warranties and indemnities in its favor.

Mediation Process

The settlement was filed under the Mediation Act, 2023. Both parties submitted the agreement to the Bombay High Court’s mediation center. The company has confirmed that this is a full and final resolution of all claims and disputes between them.

No Related-Party Involvement

Reliance Infrastructure has clarified that it does not hold any shareholding in CPL, and the transaction does not qualify as a related-party transaction. The company also confirmed that the agreement does not involve any special rights related to shareholding, directorships, or capital structure changes.

Impact on Financials

The settlement allows Reliance Infrastructure to gain control over assets previously held by CPL, which could impact its financial position. However, the company has not disclosed how or when these assets will be utilized.

Company Overview

Reliance Infrastructure operates in the power, roads, and metro sectors with a focus on engineering, procurement, and construction (EPC) projects.

  • YTD Price Performance: -10.18%
  • Average Trading Volume: 201,794
  • Market Capitalization: ₹113.4 billion

As of February 10, 11:37 AM, Reliance Infrastructure Ltd is trading at ₹288.70, up ₹2.20 (0.77%) today, showing a 27.71% gain over the past six months and a 42.74% rise in the past year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.