10 March 2021

The Securities and Exchange Board of India (Sebi) in a circular today set a limit of 10% of AUM on mutual fund investment in debt with special features such as debt that converts to equity.

 The Securities and Exchange Board of India (Sebi) in a circular today set a limit of 10% of AUM on mutual fund investment in debt with special features such as debt that converts to equity.

This includes Additional Tier 1 (AT 1) and Additional Tier (AT2) bonds, the regulator specified. Investment in a single issuer of such debt cannot exceed 5% of assets. Funds with such investments or even enabling provisions for such investments should enable side pocketing in their schemes, the regulator said. However existing investments above the limits will be grandfathered (permitted to continue) and the limit will only apply to fresh investments. The circular will come into effect from 1st April 2021.


The portfolio the executives administration (PMS) firms of two pro financial backers are set to invasion into common asset business

 MUMBAI: The portfolio the executives administration (PMS) firms of two pro financial backers are set to invasion into common asset business. Helios Capital Management, established by Singapore-based Samir Arora, and Alchemy Capital Management, a firm helped to establish by Rakesh Jhunjhunwala, has applied for a common asset permit with the Indian capital market controller Securities and Exchange Board of India (Sebi). 

The advancement comes when retail craze has seen a huge ascent on Dalal Street, because of ..


09 March 2021

Welspun declares new capex plans

Welspun declares new capex plans 

~ Welspun has affirmed limit extension plan for the Home Textile business through debottlenecking and rebalancing of offices at Vapi and Anjar. It will be a capital light, speedy turnaround development, bringing about expanded limit of Towels by 7%, Bed Linen by 20% and Rugs and Carpets by 80%. The organization is relied upon to spend around ₹ 2,250 mn for the development over FY 21 and FY 22. The advantages of this development will begin accumulating in stages from as right on time as Q1 FY22. This extension has an income capability of ₹ 12,000 mn from second year of activity. 

Welspun has re-adjusted its interest in Advanced Textile development project diminishing the size of venture from ₹ 4,957 mn to ₹ 2,996 mn. The new Disinfectant wipes line is relied upon to begin creation in February 2021 while the extension of Spunlace business is required to initiate tasks by September 2021. These would assist this business with accomplishing topline of around ₹ 6,000 mn by FY 23. 


Till date Welspun has spent ₹ 2,930 mn in capex and for the entire year it is required to be near ₹ 5,000 mn including the venture reported for the home material business. The organization's net obligation is required to stay underneath ₹ 24,000 mn as on 31st March 21. 

Welspun's flooring business has been seeing consistent development. Hard deck plant is running at ideal limit because of the solid interest and request book. While the limit of the hard deck plant has been multiplied in January 2021, it is as a rule additionally multiplied by Q2FY22 to oblige the developing interest. Delicate deck has likewise begun acquiring foothold with solid enquiries from US, Canada and ROW. To improve limit usage of the delicate deck plant, Welspun plans to deliver mats and covers for its Home Textile clients from Welspun flooring office, as its office at Vapi is running at top limit. 


"I'm satisfied with the inside and out presentation during the quarter. In difficult stretches, the Welspun family has been at the front line changing over difficulties into promising circumstances and 2020 was the same. We worked more diligently than any time in recent memory and our endeavors are being perceived by customers and other partners. 

In the course of recent years we have made critical interests in the territories of supportability, circularity, "Turned" including among others, and going ahead we are bringing all such activities under overall system of ESG. We have accomplished high evaluating for ESG by one of the main worldwide rating offices and the Board is resolved to speed up this interaction to take it to the following level. 

We keep on pursueing our separation procedure through marking and development, combined with the push on digitalization and E-business activities. We are very much ready to fulfill the expanding need radiating from the underlying movement in the worldwide home material industry". 

Mr. B.K. Goenka, Chairman, Welspun Group


08 March 2021

Why should you use a covered call strategy?

Why should you use a covered call strategy?
A covered call strategy can be initiated by simultaneously purchasing a stock and selling a call option. It
can also be used by someone who is holding a stock and wants to earn a regular income. Generally, the
call option which is sold/written will be of at-the-money or out-the-money strike price and it will not get
exercised unless the stock price increases above the strike price.
How should you use the covered call strategy?
Choosing between the ideal strikes involves a trade-off between priorities. An investor can select higher
out-the-money strike price and preserve some more upside potential. However, more out-the-money
would generate less premium income, which means that there would be a smaller downside protection in
case of stock decline. The expiration month reflects the time horizon of his market view.
Delivery Holdings in a stock & Sell call option
Long Ultra Tech & Short Ultra Tech 7500 CE
Expiry Date 25th Mar 2021
Market Outlook Moderately bullish
Breakeven (Rs.) at expiry Stock price paid-premium received
Maximum Risk Stock price paid-call premium
Reward Limited
Margin required No – If one can pledge the stock holding
Let’s try to understand the Strategy:
Ultra Tech 6870
Strike price Rs.7500
Premium Received (per share) Rs.62
BEP (Current Market Price - Premium paid) Rs. 6808
Lot size (in units) 200
Let us consider the following scenario: Mr. A has a delivery holding of 200 shares of Ultra Tech. Mr A sells
a 9.17% out of the money call option with a strike price of Rs.7500 for Rs.62. The upside profit potential is
limited to the premium received from the call option sold plus the difference between the current market
price of stock at the time of option writing and its strike price.
In the above example, if stock price surges above the 7500 level, then the maximum profit would be
calculated as:(7500-6870+62)*200 = (692*200) = Rs. 1,38,400. If the stock price stays at or below Rs.
7500, the call option will not get exercised and Mr. A can retain the premium of Rs. 12,400 per lot, which
is an extra income. Mr. A can do the similar strategy every month to generate addition income on his stock

holding. For the ease of understanding, concepts such as commission, dividend, margin, tax and other
transaction charges have not been included in the above example.
What to do if the stock price surge above the Call writing strike price?
As we are selling 19 delta OTM strike price, the probability of the stock expiring below the Call writing strike
price is approximately 19%. However, there will be occasions when the Stock could breach the mentioned
strike price, in that case one must follow the following approaches.
1. Give the stock delivery
2. Hold the stock & rollover the call writing positions to the next series
Payoff Schedule:
Note: The covered call strategy is best used when an investor wishes to generate income in addition to
any dividends from shares of stocks he or she owns. However, it may not be a very profitable strategy for
an investor whose main interest is to gain substantial profit and who wants to protect downside risk.


releted post

Recent Posts Widget
Distributed By GYANSAFAR & Design by gyansafar | Blogger Theme by gyansafar.in