FYERS
- Thread starter Tejas Khoday
- Start date
- Tags broker in india brokerage demat account discount brokerage fyers trading account trading platform
Hello folks, I wrote an article in The Financial Express about hedging/protecting downside risk. Read it when you have some free time: http://www.financialexpress.com/mon...ortfolio-in-a-stock-market-correction/861315/
Here's a screenshot that didn't come out the way it should have:
Here's a screenshot that didn't come out the way it should have:
Last edited:
Today, the news publishers seem to have taken a liking to us. Here's another article on investing in companies whose promoters have pledged a significant portion of their stake: http://www.moneycontrol.com/news/bu...moter-pledges-are-a-risky-affair-2392355.html
A screenshot, if you're too lazy to click:
A screenshot, if you're too lazy to click:
I DONT HAVE PROBLEM NOW AS such as i have managed to install fyers and pi in 2 different system. but if resource like .net is same for many other trading software eg tradetiger of sharekhan. in that case i don't know what wud be the preference for client. any way another point that fyers web version intraday chart is better than fyersone desktop. better keep that software for real time chart mainly and sud have a provision to logg in both desktop and web version simultaniously as trade can be done wathching web version.
another point that if i run fyersone or install in a same system then after closing fyersone also, pi chart option not working
another point that if i run fyersone or install in a same system then after closing fyersone also, pi chart option not working
Last edited:
Here's another way of posting articles from other websites. use "Insert--> Quote" option. Various formatting/ editing options are available too.
Why betting on stocks with high promoter pledges is a risky affair
Depending on the circumstances, promoter pledge of shares could either be read as a sign of great conviction or an act of desperation.
Tejas Khoday
The stock market in India has witnessed numerous instances of the promoters pledging their shares. Consequently, thousands of common investors tend to wonder about such trends and wish to know the reason behind this, which in fact is not a complicated riddle to solve.
By and large, the promoters pledge their shares to raise the debt for their business and meet the planned expenditure including future growth. It could be to raise working capital loans or long-term loans to increase their holdings in the company or to even finance an acquisition.
Since promoters' equity stake is their proclaimed asset, they can utilise the amount raised in any way. It is a good sign as long as the funds are being utilised for the same company. But the investors should be wary if the funds are being used for personal reasons or towards activities which will not benefit the company.
In such a scenario, it is essential for investors to know what are the risks associated while investing in high pledge companies. They must gear up to identify risk vis-à-vis volatility while investing and realise that when promoters pledge their shares to raise loans, it can have a major impact on the stock price.
Since the pledged shares are liquid and traded on the exchange, the price can fluctuate quite a bit. In the event that the stock price goes down below a certain limit agreed by both parties to loan agreement, the promoter has to pledge additional shares to ensure that collateral value is maintained.
The loans are structured in a way that collateral value has to be updated on a timely basis in a marked-to-market type of setup. In case the promoter fails to pledge additional shares when required or repay the loan on time, the bank/lender reserves the right to sell the pledged shares in the open market to recover the value of the outstanding loan.
The possibility of this happening can have a significant impact on the stock and the prices might become more volatile than usual. The act of selling a huge chunk of shares by lenders in the open market can make the stock prices crash if there are no immediate takers. It is common for promoters to pledge their shares and raise debt capital, but the danger is when they pledge a significant portion of their ownership in the company.
Depending on the circumstances, it could either be read as a sign of great conviction or an act of desperation. For example, if a promoter group is raising capital to purchase an additional stake in their own profit-making business, then it's a good sign.
However, if the business is not doing well and the promoters are betting on a turnaround amidst grim circumstances or acting out of an emotional bias, then it's a warning sign. Also, if a promoter is pledging his shares to raise debt for a new business with no proven revenues or cash flows, it could become a problem. If the expectations turn sour, the pledged shares can turn into a stranglehold for the promoters and it is not desirable to the existing shareholders either.
Most Indian companies are promoter-centric as they have the most dominant share of the ownership structure. Forced selling by the lenders in the event of non-payment of loans could set off a chain of unpredictable reactions which would ultimately hurt the existing shareholders.
If investors have sufficient knowledge about their financial health and are confident of a bright future, then they could own shares. If the company's earnings continue to grow, everything will be fine. Most companies which have high promoter pledged shares are small and mid-cap by size.
As of August 11, the total value of promoters' pledge holding from 3141 companies stands at Rs 2,48,181 crore. In my opinion, it is best to stay away from them because if the promoters are unable to repay the loans, they might indulge in other activities like increasing their salary compensations, perks, bonuses or other unethical practices to earn money for as long as they continue to be in control.
Also, considering the shareholding structure of small companies, the promoters control the board and the board appoints the executives. Such an environment is likely to have corporate governance issues and hence, it is irrational to expect wealth creation.
Thus, the question emerges as to what is the difference between pledging of shares by general shareholders and promoters? Indeed, the ownership of other shareholders is usually much smaller and mostly their interests are financial rather than strategic.
If they borrow shares and are unable to repay, the lender will sell their shares but it will not have any material impact on how the company is run unless the size of ownership was significant enough to instigate a hostile takeover which is rarely the case.
However, the consequences of the lender liquidating promoters' pledged shares in the open market can have a game changing impact on the future of the company liquidating promoters' pledged shares in the open market can have a game-changing impact on the future of the company amidst the legal disclaimers which can be referred to SEBI in case of serious anomalies for redressal of grievances.
The writer is Co-founder & CEO, FYERS
Depending on the circumstances, promoter pledge of shares could either be read as a sign of great conviction or an act of desperation.
Tejas Khoday
The stock market in India has witnessed numerous instances of the promoters pledging their shares. Consequently, thousands of common investors tend to wonder about such trends and wish to know the reason behind this, which in fact is not a complicated riddle to solve.
By and large, the promoters pledge their shares to raise the debt for their business and meet the planned expenditure including future growth. It could be to raise working capital loans or long-term loans to increase their holdings in the company or to even finance an acquisition.
Since promoters' equity stake is their proclaimed asset, they can utilise the amount raised in any way. It is a good sign as long as the funds are being utilised for the same company. But the investors should be wary if the funds are being used for personal reasons or towards activities which will not benefit the company.
In such a scenario, it is essential for investors to know what are the risks associated while investing in high pledge companies. They must gear up to identify risk vis-à-vis volatility while investing and realise that when promoters pledge their shares to raise loans, it can have a major impact on the stock price.
Since the pledged shares are liquid and traded on the exchange, the price can fluctuate quite a bit. In the event that the stock price goes down below a certain limit agreed by both parties to loan agreement, the promoter has to pledge additional shares to ensure that collateral value is maintained.
The loans are structured in a way that collateral value has to be updated on a timely basis in a marked-to-market type of setup. In case the promoter fails to pledge additional shares when required or repay the loan on time, the bank/lender reserves the right to sell the pledged shares in the open market to recover the value of the outstanding loan.
The possibility of this happening can have a significant impact on the stock and the prices might become more volatile than usual. The act of selling a huge chunk of shares by lenders in the open market can make the stock prices crash if there are no immediate takers. It is common for promoters to pledge their shares and raise debt capital, but the danger is when they pledge a significant portion of their ownership in the company.
Depending on the circumstances, it could either be read as a sign of great conviction or an act of desperation. For example, if a promoter group is raising capital to purchase an additional stake in their own profit-making business, then it's a good sign.
However, if the business is not doing well and the promoters are betting on a turnaround amidst grim circumstances or acting out of an emotional bias, then it's a warning sign. Also, if a promoter is pledging his shares to raise debt for a new business with no proven revenues or cash flows, it could become a problem. If the expectations turn sour, the pledged shares can turn into a stranglehold for the promoters and it is not desirable to the existing shareholders either.
Most Indian companies are promoter-centric as they have the most dominant share of the ownership structure. Forced selling by the lenders in the event of non-payment of loans could set off a chain of unpredictable reactions which would ultimately hurt the existing shareholders.
If investors have sufficient knowledge about their financial health and are confident of a bright future, then they could own shares. If the company's earnings continue to grow, everything will be fine. Most companies which have high promoter pledged shares are small and mid-cap by size.
As of August 11, the total value of promoters' pledge holding from 3141 companies stands at Rs 2,48,181 crore. In my opinion, it is best to stay away from them because if the promoters are unable to repay the loans, they might indulge in other activities like increasing their salary compensations, perks, bonuses or other unethical practices to earn money for as long as they continue to be in control.
Also, considering the shareholding structure of small companies, the promoters control the board and the board appoints the executives. Such an environment is likely to have corporate governance issues and hence, it is irrational to expect wealth creation.
Thus, the question emerges as to what is the difference between pledging of shares by general shareholders and promoters? Indeed, the ownership of other shareholders is usually much smaller and mostly their interests are financial rather than strategic.
If they borrow shares and are unable to repay, the lender will sell their shares but it will not have any material impact on how the company is run unless the size of ownership was significant enough to instigate a hostile takeover which is rarely the case.
However, the consequences of the lender liquidating promoters' pledged shares in the open market can have a game changing impact on the future of the company liquidating promoters' pledged shares in the open market can have a game-changing impact on the future of the company amidst the legal disclaimers which can be referred to SEBI in case of serious anomalies for redressal of grievances.
The writer is Co-founder & CEO, FYERS
Hi @thesoulstealer , If this happens, it is usually because of connectivity issues. You can do the following:
1. You can select another symbol and re-select the previous scrip which shows "invalid symbol". It will show live prices.
2. You can also click on the "Reload Page" if this happens.
1. You can select another symbol and re-select the previous scrip which shows "invalid symbol". It will show live prices.
2. You can also click on the "Reload Page" if this happens.
@Tejas Khoday
Is hourly gainers/ loosers scanner available in FYERS one/ web ?
Is hourly gainers/ loosers scanner available in FYERS one/ web ?
Nope, but would you find a vanilla screener like that useful? If you can suggest a more detailed one than that, we'll try to implement it on Fyers Web soon.
On Fyers One, we have a screener for intraday recover/fall which can be categorized based on industry or sectors. Also you have resistance and support screener and heat maps.
On Fyers One, we have a screener for intraday recover/fall which can be categorized based on industry or sectors. Also you have resistance and support screener and heat maps.
Hi Tejas Khoday,
I think customised screeners will be a great hit if implemented giving flexibility of adjusting parameters as per the wish of the trader. FyersOne scanners are no doubt very useful but somehow a trader needs some more room to identify opportunities beyond those fixed parameters.
Like for eg. the GAP scanner in FyersOne is quite what I meant by flexibility. In that we can adjust the percentage of GAP which we would like to scan.
Eg. I want to scan stocks which have traded in the first 30 minutes or an hour only 10 % of their 5 day ATR etc.
I hope you bring out a boom scanner .. Wish U Best.
I think customised screeners will be a great hit if implemented giving flexibility of adjusting parameters as per the wish of the trader. FyersOne scanners are no doubt very useful but somehow a trader needs some more room to identify opportunities beyond those fixed parameters.
Like for eg. the GAP scanner in FyersOne is quite what I meant by flexibility. In that we can adjust the percentage of GAP which we would like to scan.
Eg. I want to scan stocks which have traded in the first 30 minutes or an hour only 10 % of their 5 day ATR etc.
I hope you bring out a boom scanner .. Wish U Best.
Similar threads
-
THIRD GRADE FYERS HELPLINE-UNABLE TO TRANSFER FUNDS FROM DAY 1
- Started by anilkhub
- Replies: 2
-
Fyers employees squaring off clients' positions without consent?
- Started by newtrader101
- Replies: 80
-
-
-
Fyers One not working from 20/04/200, customer support not responding
- Started by Shrebiz
- Replies: 7