Securities Transaction Tax (STT)

STT is levied on the value of certain transactions. These transactions include the purchase and sale of equity shares, purchase and sale of units of an equity oriented fund, sale of a unit of an equity oriented fund to the mutual fund and sale of a derivative. The rates applicable on different transactions differ depending on the type of security that is traded and whether the transaction is delivery based or not. Further, in some cases the seller is required to pay the tax and in other cases the buyer has to pay (see table below).

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Suzlon Energy is a fully integrated international wind power company and ranks as the world’s sixth leading supplier of wind turbines. For the quarter ended Dec 31, 2007 , consolidated sales increased 66% to Rs 3,169.76 crore. PAT before minority interest was lower by 17% at Rs 142.84 crore. Taxation zoomed 844% to Rs 87.32 crore. Net profit stood at Rs 151.69 crore, down 13%. The company’s order book stood at Rs 17,107 crore with domestic orders at Rs 2,404 crore and international orders amounting to Rs 14,703 crore. In terms of volumes, domestic orders amounted to 441 MW and international order to 2,916 MW aggregating to a total of 3,357 MW. The per MW realisation for domestic order registered a growth of 2.99% to Rs 5.45 crore and that for international orders by 5.61% to Rs 5.04 crore.

How To Survive In A Bear Market - A Warren Buffett Style

The market has corrected very sharply in the past few days, so I thought it would be useful to consider few ways to survive in a bear market and of course following the Warren Buffett style.

I’ve selected a few quotes by Warren Buffett which makes sense and if you follow that you can survive any bear market.

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DNA Money India reports that the recent rise in market capitalization of Reliance Group (both Mukesh Ambani and Anil Ambani) stocks has caught the attention of SEBI. SEBI is investigating whether there was a market capitalization race between the two brothers.

I strongly believe that SEBI is right. It’s crystal clear that both the brothers are inflating their stock prices artificially. Otherwise the group stocks like AdLabs, Reliance Natural Resources, Reliance Industrial Infrastructure would never have climbed that much in months. That’s the reason why these stocks lost more than 50% of their market capital in two days (i.e January 21st and 22nd).

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If you have invested in the equity markets your investment needs to be continuously monitored. Even if you buy into equity with a long-term view, you still need to assess the performance of your portfolio on a regular basis. To assess the stock performance you need to monitor the performance of the company as well as the industry. You also need to keep in mind the economical, political and global factors affecting the firm. Therefore, take a closer look at the following factors while measuring the performance of stocks:

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Managing investments is a serious business. It can be a time-consuming task, because it requires intelligent planning, continuous monitoring and periodic adjustments. And it can be challenging, because it requires expert knowledge and experience. Equity investment does not provide you the luxury of sleeping over your investment just as would be possible in case of fixed income securities. Indian markets no longer work in isolation. You need to be very well aware of not only happenings of national interest but global issues which affect the future prosperity of your investment. Selecting stocks for one’s portfolio is only the beginning of the investment process. You need to review your valuation metrics to determine which stocks remain undervalued and which are approaching or have surpassed their fair value.