investment

What is the Indian Energy Exchange? 5 Things to Know About the Newest Stock Exchange in India

The Indian energy sector is expected to see considerable growth over the next decade. In this high-growth environment, independent and liquid secondary marketplaces have become a necessity for actors to access capital. Therefore, in December 2017, the Union Cabinet approved the establishment of the Indian Energy Exchange (IEX)—a stock exchange for trading in listed securities and derivatives of energy companies operating in India. This new stock exchange will provide a mechanism for capital allocation within the sector by allowing investors to trade shares in public companies that operate in the energy space. This blog takes a look at some key things you need to know about IEX as it undergoes its first phase of operation starting on April 6, 2018. What is the Indian Energy Exchange? An Indian energy exchange is a stock exchange for trading listed securities and derivatives of energy companies operating in India. IEX will build a transparent market for the trading of listed energy companies in India. To do this, it will provide a mechanism for capital allocation within the sector by allowing investors to trade shares in public companies that operate in the energy space. In the early years of the Indian economy and energy sector, there was no specific organized mechanism or platform for trading shares in the energy companies. In response to the growing demand for secondary market trading, the Exchange and Brokerage Departments of the National Stock Exchange of India Limited (NSE-EB) and the Securities and Exchange Board of India (SEBI) have come together to launch the Indian Energy Exchange (IEX) with the objective of making listed energy companies more accessible to investors. Objectives of IEX The primary objective of the IEX is to facilitate secondary market trading in listed shares of companies operating in the energy sector through a transparent and regulated exchange. IEX will enable investors to trade shares in public companies that operate in the energy sector, including oil and gas exploration and production companies, power companies, oil marketing companies, and gas storage companies. The secondary market trading on the exchange will help increase liquidity and widen the investor base, thereby making it easier and safer for investors to invest in listed shares of companies operating in the energy sector. With the increased liquidity on the exchange, investors will also be able to hedge their energy portfolio risk by entering into short or long term energy derivatives contracts. Using the same platform, investors will also be able to buy and sell energy-linked exchange-traded products such as energy index futures or options. Key features of IEx – A stock market for listed energy companies in India – Transactions in energy-related shares are free of charge – Trading of energy-linked products – A liquid market with a strong support mechanism – A transparent market with a varied basket of securities – More than 50 industry-specific indices for benchmarking – A robust and sophisticated trading system – Dedicated customer service channels – Preservation and dissemination of traditional financial market knowledge – Compliance with securities laws and regulations – Strong investor protection mechanism – Strengthening of India’s financial infrastructure Who can trade on IEX? The exchange will offer trading in shares of listed companies operating in the energy sector. The exchange will have a basket of listed securities for trading, including stocks of exploration and production companies, power companies, oil and gas marketing companies, and gas storage companies. Investors can also trade in energy-linked products, such as futures and options on the commodity indices underlying the basket of listed securities. The exchange will also offer trading in index-based products such as equity index futures, equity index options, and equity index options on the commodity indices. To get access to the trading platform, investors will have to register with the exchange as a trader. After registering, investors can deposit shares in companies that operate in the energy sector or buy shares in companies that operate in the energy sector. How to register on IEX? Investors can register on the exchange as an entity or as a retail investor. The registration process is similar to that of a financial broker. Once an investor registers with the exchange, they will be given a unique investor account number on the exchange. This number will be the same across all the exchanges where the investor trades shares. Investors can then log into the exchange website and create an account with the username and password they have chosen. After logging in, investors will see the trading platform on the exchange. For trading, investors will have to select their username and password in the exchange website. Once investors have registered on the exchange, they will have access to the trading platform. Trading Platform and Pricing Schemes The exchange will have a variety of trading mechanisms, including a modern trading system, a robust risk management system, and a robust market surveillance system. The trading system on IEX will be based on the NSE-EB and SEBI trading systems. The exchange will have multiple price mechanisms for trading in listed securities. Market makers and liquidity providers can trade on an Athens-like auction-based price mechanism. In contrast, the exchange will have a continuous auction-based price mechanism that is based on the NSE-EB and SEBI reference rates, which is based on the interbank offered rate (IBOR). Conclusion The Indian energy sector is expected to see considerable growth over the next decade, driven by a rapidly growing economy and increasing energy demand. As a result, the market is expected to become highly attractive for investors. The Indian energy sector, however, remains highly fragmented and lacks a strong secondary market for trading shares. The Indian Energy Exchange will create a liquid market for trading shares in listed energy companies that will be open to both institutional and retail investors.

How to Build Wealth: A Journey of Wealth Creation

Everyone wants to be financially secure. Whether it’s because you want the freedom to do what you want or because you want to support your family and give them a better future, many people are looking towards building wealth as a way to achieve this. Creating wealth is not as hard as many think. While there are certain risks involved in trying to create wealth, most people can take steps that will help them along their journey. In this article, we will talk about different ways to build wealth. It could be from a small amount of money or several hundred thousand dollars but it’s all about how much effort you put into it and how long you plan on doing it for. This is not an article about financial advice or some kind of investment advice; this is more about the nuts and bolts of how you can actually begin building up your savings account and start making progress towards becoming financially secure in the future. Invest Your Money The first thing to think about when trying to build wealth is to ensure you are putting your money to work. If you have a million dollars in the bank and have never done anything with it, it’s worth very little. The first thing to do is to find an investment broker (a broker is a person who helps you buy and sell securities and other financial assets like stocks and bonds). There are many online brokers that offer low-cost access to financial markets but, if you have a brokerage account at a traditional brokerage, you can still make use of it. Unlike banks, brokerage accounts allow you to make trades like buying and selling stocks and bonds. You can also transfer your money from one broker to another. The more money you put into your account the more trades you’ll have to make and the sooner you’ll get the returns that come with those trades. The highest returns are typically found in the first few months after the trade. So, the first thing you can do is to invest your money. Make Smart Debt Payments There are a lot of people out there who are trying to build wealth, but they’re trying to do it by taking on high interest debt. The problem is that if you have a high interest rate on your debt, then it will take a long time for you to build up any kind of wealth. You’ll need to make a lot of interest payments before you start to make significant progress building up your savings account. The first thing you can do here is to find out what your debt interest rates are. If you have a high interest rate on your debt, you may want to consider refinancing it. There are a lot of companies out there that will refinance your debt at a lower interest rate, so you can potentially save a lot of money here. Diversify Your Investments One of the most important things you can do to build wealth is to diversify your investments. Now, a lot of people would argue that one single investment that is the reason behind their wealth creation, but that is not entirely true. When you diversify your investments, you are spreading out your money across different areas and different types of investments. This will not only help you diversify your risks but it will also help you get a broader return on all of your money. One of the most important things to do when trying to build wealth is to diversify your investments. This way, you’ll be less exposed to one or two big investments and more likely to get a positive return from a lot of different ones. Save Up For A Financial Goal One of the most important things you can do is to save up for a financial goal. Now, many people don’t like to talk about saving money, but saving is the first step to wealth creation. For many years, we’ve all heard that it takes 10,000 hours of doing something to become an expert at it. We’ve all heard that you need 10,000 hours of practicing a skill to become an expert at it. Now, that’s not just in sports; that’s in art, music and anything else you might be interested in. The same applies to wealth creation and financial planning. You need 10,000 hours of doing it to become an expert at it. Now, that doesn’t mean you have to spend 10,000 hours working on your finances; but you need to spend a certain amount of time working on how you plan to get there. One of the things you can do is to get a goal in mind. Now, a lot of people like to say that they want to build wealth or want to be financially secure but a lot of them don’t have a specific goal in mind. Having a specific goal will help you see progress and will help you stick with it. Network And Be Involved In The Community If you want to build wealth quickly, you are going to want to network with people and be involved in your community. One of the most important things you can do is to network and meet people. Now, a lot of people think that networking is only for business owners and entrepreneurs, but it is so much more than that. Networking is all about building relationships, so that when you need something, whether it’s work or help, you have people you can go to. Networking is about building relationships and it is so much more than just meeting people for business deals; networking is about meeting people and getting to know them on a personal level. The more you get involved in the community, the more you’ll get to meet other people and make new friends. The more you get involved in the community, the more you’ll get to meet other …

How to Build Wealth: A Journey of Wealth Creation Read More »