FIC WEEKLY

Lower circuit essentially refers to the minimum price at which a stock is allowed to fall downwards. Usually, most stocks start with a 20% circuit. Recently major stock exchanges as well as IRCTC hit the lower circuit due to the prevailing market conditions arising in the country and the world at large. BY RADHIKA SETHI | 2 MIN READ

The Christmas carol goes ‘Tis the season to be jolly’ and the stock market is no exception. Monthly patterns in Sensex show that investors have a high probability of making profits on stocks they buy in the month of December. Is it really Santa and his elves working their magic on the bourses? Not quite. BY KASHISH SINGLA | 2 Mins Read

A HELOC is a loan based on the equity of the borrower’s home. It allows you to borrow against the equity you’ve already built up in your home. In its simplest form, a HELOC works somewhat like a credit card. Money can be borrowed up to a certain credit limit set by the lender, and the homeowner then pays back the borrowed amounts along with interest. BY RADHIKA SETHI                       2 Mins Read

SPAN system measures the margin to be provided for different individuals and their whole portfolios. BY RATTANDEEP SINGH |  2 Mins Read In the stock market we are required to pay a margin whenever we purchase any security. This margin is blocked by the broker or the exchange from our trading accounts. Margins allow investors to use leverage while performing intraday trades as they allow the traders to trade any security without paying the full amount that would have been paid otherwise . These margins usually provide a buffer. In case the investor suffers any loss he is asked to pay for that loss bit because of margins , the losses are deducted from the margin that has been already collected from the investor. In India we have two types of margin, SPAN margin and the exposure margin. SPAN margin is the primary margin in place while the exposure margin is secondary and over and above the SPAN margin. SPAN margin stands for standardized portfolio analysis of...

The marginal cost of funds based lending rate (MCLR) refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. It is an internal benchmark or reference rate for the bank. MCLR actually describes the method by which the minimum interest rate for loans is determined by a bank - on the basis of marginal cost or the additional or incremental cost of arranging one more rupee to the prospective borrower. The MCLR methodology for fixing interest rates for advances was introduced by the Reserve Bank of India w.e.f April 1, 2016. This new methodology replaces the base rate system introduced in July 2010. In other words, all rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016 would be priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which will be the internal benchmark (means a reference rate determined internally by the bank) for such purposes.  Existing loans and credit li...