THE INVETORS ARE PILLARS FOR THE ECONOMY. THE INVESTOR SHOULD BE ASSURED OF RETURN ON INVESTMENT, SAFETY OF INVESTMENT AND LIQUIDITY AS AND WHEN HE IS IN REQUIREMENT. THE INVESTMENTS CAN BE LONG-TERM AND SHORT-TERM ACCORDING THE DISCRETION OF THE INVESTORS. ALSO HE CAN INVEST ACCORDING TO HIS RISK TAKING CAPACITY SINCE ALL INVESTMENTS ARE NOT SAFE, INCOME EARNING TO RISK TAKING AND PERIOD BASED ON HIS LIQUIDITY REQUIREMENT.
1. INVESTMMENT IN EQUITY : THE INVESTMENT IN EQUITY RELATED MARKET IS TREATED AS INVESTMENT BY THE COMMON MAN. THE MARKET EXTENDS TO EQUITY, FUTURES & OPTIONS, DERIVATIVES, INTERNATIONAL AND NATIONAL FINANCIAL INSTRUMENTS AND SPECULATION RELATED TRANSACTIONS.
2. OPTIONS FOR INVESTMENT : THE INVESTMENTS CAN BE MADE IN MANY OTHER SAFE AREAS LIKE BANK DEPOSITS, REAL ESTATE, INSURANCE PRODUCTS, AND BUSINESS EITHER OWN OR IN PARTNERSHIP, GOLD, BULLION, JEWELLERY AND MANY AREAS. THE INVESTOR SELECTS ANY ONE OR MORE OPTIONS OF THE INVESTMENT OPPORTUNITIES BASED ON HIS RISK TAKING CAPACITY, LIQUIDTY REQUIREMENTS AND INCOME FROM THE INVESTMENT.
3. INFORMATION : INFORMATION TO THE INVESTOR PLAYS A KEY ROLE IN OPTING FOR HIS INVESTMENT. THE QUANTITY OF THE INFORMATION DOES NOT PLAY KEY ROLE. HENCE THE INFORMATION PRODIVED SHOULD BE OF THE THIRD PARTY, INDEPENDENT AND EXPERT OPINION WHICH IS MORE RELIABLE. IF THE INFORMATION PROIVDED IS NOT RELIABLE THE INVESTORS HAS TO DEPEND UPON RUMOURS, SPECULATIONS AND OTHER UNSAFE METHODS.
4. FRESH INVESTMENTS : THE INVESTORS SAFETY OF INVESTMENT ATTRACTS FRESH INVESTMENTS IF PROPERLY AND RELIABLY INFORMED, OTHERWISE HE WILL ENTER THE UNPRODUCTIVE AND SHOWOFF INVESTMENTS WHICH EARNS NOTHING TO HIM AND NOT USEFUL TO INDUSTRY, ECONOMY AND SOCIETY AT LARGE.
5. REGULATORY SUPREMACY : IT GENERALLY FELT THAT THE SHAREHOLDERS ARE THE SUPREME WHO CAN DECIDE THE ACTIVITIES OF THE CORPORATE ENTITY BY APPROVING THE PROPOSALS PROPOSED BY THE BOARD OF DIRECTORS. BUT I FEEL THAT THE OBJECTS, REGULATIONS MENTIOINED IN THE MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION ARE SUPERIOR TO SHARE HOLDERS OF EVERY ORGANISATION. ALSO THE PROVISONS MADE IN THE CORPORATE LAWS ARE MORE SUPERIOR TO THE MEMORANDUM OF ASSOCIATION AND ARTICELS OF ASSOCIATION AND DECISIONS OF THE SHAREHOLDERS.
6. RELATED SECTIONS : THE CORPORATE LAWS SHOULD BE MADE MORE STRINGENT AND ACCOUNTABLE TO EVERY SECTION OF THE SOCIETY WHICH INCLUDES SHAREHOLDERS. THE OTHER EFFECTED SECTIONS OF THE SOCIETY ARE:
- LOSS TO CREDITORS, FINANCIAL INSTITUTIONS.
- LOSS OF PRODUCTIVITY AND WASTE OF RESOURCES.
- LOSS TO DISTRIBUTORS, DEALERS, CUSTOMERS.
- LOSS TO EMPLOYEES DUE TO LOSS OF EMPLOYMENT.
- LOSS TO RAW MATERIAL SUPPLIERS.
- LOSS TO GOVT. DUE TO LOSS OF REVENUE.
- LOSS TO INDUSTRY, DEVELOPMENT AS A WHOLE.
- LOSS TO INVESTORS CONFIDENCE.
- LOSS TO IMAGE AND GOODWILL OF THE COMPANY AND ITS GROUP.
- LOSS OF PRODUCTIVITY OF STAKE HOLDERS.
- LOSS OF QUANTITY AND QUALITY.
7. DE-LISTING : THE COMPANIES SHOULD NOT BE ALLOWED TO DE-LIST FROM THE STOCK EXCHANGES FOR ANY REASON. THE DE-LISTING WILL ALMOST WIPE AWAY THE INVESTMENT OF THE INVETORS.
8. PERFORMANCE : THE PERFORMANCE SHOULD BE ANALISED IN ADVANCE THROUGH PROPER, REGULAR ANALYSIS OF THE PERFORMANCE OF THE COMMERCIAL ORGANISATION.
9. INDUSTRY INVESTMENTS : MORE AND MORE FUNDS SHOULD BE ATTRATCTED FOR INDUSTRY THAN IN CAPITAL MARKET WHICH MEANS, THE ADDITIONAL FUNDS INFLATES THE PRICES WITHOUT CREATING ANY ASSET AND ENCOURAGEMENT FOR INDUSTRY.
10. FOREIGN INSTITUTIONAL INVESTORS: THE FOREIGN INVESTORS ALSO OPTING FOR INVESTMENT IN CAPITAL MARKET FOR THE STATED REASON THEY CAN WITHDRAW AS AND WHEN THERE IS A NEED. THIS IS TYPE OF ASSISTANCE IS NOT EXPECTED FROM FOREGIN INSTITUTIONAL INVESTORS SINCE THE INVESTMENTS SHOULD BE LONGER PERIOD. SHORTER THE PERIOD, THERE IS A SCOPE FOR SPECULATION. FREQUENT CHANGES WILL DESTABILISE THE ENTIRE IMAGE OF THE COMPANY AND INDUSTRY ALSO.
11. LENDING : MORE AND MORE LENDING SHOULD BE ACCORDED FOR INVESTMENT IN INDUSTRY RATHER THAN INVESTMENT IN CAPITAL MARKET RELATED TRANSACTIONS. IN OTHER WORDS THE LENDING SHOULD BE FOR INVESMENT IN IPOS ONLY OR ACQUIRING DELIVERY RELATED EQUITY AND NOT FOR SPECULATION IN THE FORM OF FUTURES & OPTIONS.
12. SPECULATION VS. DELIVERY : THE MARKET SHOULD REFLECT THE REALITY OF INVESTMENT BUT NOT SPECULATIONS LIKE FUTURES & OPTIONS. TRADING IN FUTURES & OPTIONS SHOULD BE DISCOUORAGED TO REFLECT ACTUAL DELIVERY BASED TRADING. THE TRADING IN DELIVERY BASED TRADING LEADS TO GAINS TO ACTUAL INVESTORS WHO WILL BE MORE ENCOURAGED TO INVESTMENT IN INDUSTRY THROUGH IPOS OR DELIVERY BASED EQUITIES WHICH SHOULD BE MADE MORE AND MORE ATTRACTIVE. AT PRESENT DELIVERY BASED TRANSACTIONS ARE VERY LESS WHEN COMPARED TO FUTURES & OPTIONS TRANSACTIONS.
13. WHISTLE BLOWER : THERE IS NO AUTHORITY OR ORGANISATION TO ACT AS WHISTLE BLOWER AGAINST POSSIBLE CHANGES IN THE PRICES EXCEPT RUMOURS, SPECULATION BASED ACTIVITES.
14. TAXATION BENEFITS : THE INVESTMENTS SHOULD BE ENCOURAGED THROUGH ACCORDING EXEMPTIONS, DEUDCTION IN TAX LAWS.
15. INFRASTRCTURE: ALSO,THE INVESTMENT IN INFRASTRUCTURE SHOULD BE MORE AND MORE ENCOURAGED SINCE THERE IS ACCUTE REQUIREMENT OF FUNDS IN THIS VAST AREA OF OPERATIONS IN EDUCATION, TRANSPORTATION, RAILWAYS, POWER, ROADS, COMMUNICATION ETC. ACCORDING TO THE FINANCE MINISTERS STATEMENT THE INDIAN ECONOMY NEEDS $1 LAKH (RS.46 LAKH CRORES) FOR DEVELOPMENT @ 9% IN INFRASTRUCTURE SECTOR. THIS CAN BE ACHIEVED TO SOME EXTENT BY ENCOURAGING THE SAVINGS,TRANSFERRINGING TOWARDS INVESTMENT IN INFRASTRUCTURE THROUGH GOVT, MONITERED REGULATORY BODY LIKE “INFRASTRUCTURE DEVELOPMENT CORPORATION” FOR ALL SECTIONS INFRASTRUCTURE REQUIREMENTS.
16. RETURN ON INVESTMENTS : THE LONGER PERIOD INVESTMENTS SHOULD BE ENCOURAGED BY ASSURING REGULARITY OF INCOMES, THROUGH DIVIDENDS,ANNOUNCEMENT THROUGH RIGHTS, BONUS ETC. ALSO IT IS ADVISAVLE TO SPECIFY THAT THERE SHOULD BE A PARTICULAR PERCENTAGE OF NETPROFITS TO DECLARE AS DIVIDENDS OR RIGHTS, BONUS ETC. TO THE INVESTORS. THE STEP WILL GIVE LOT OF ENCOURAGEMENT TO THE INVESTORS. THE DECLARATION OF DIVIDENDS SHOULD NOT BE AT THE DISCRETION OF THE MANAGEMENT OF THE COMPANY.
– K. HANMANDLOO
