Non dilutive shares
It is a type of business financing in which the company does not lose any equity, meaning they get money for their business without giving up any ownership in it. Loans, grants, and other non-convertible varieties are examples of non- dilutive financing.
A first-time stock or bond offering is referred to as a new issue. The majority of new issues are float by privately held companies that go public, providing investors with new opportunities.
Non- institutional investor
There are various categories of investor which can apply in IPO. Non institutional investors are among them. NRI, trusts, companies even individual person who invest more than Rs 2 lakh are known as Non institutional investor. These investors cannot invest at cut off price.
Neckline refers to a trendline constructed below a head and shoulders pattern that is used in technical analysis to alert about profitable investment opportunities to investors. The neckline is a straight line that extends to the right from the lows (top) or highs (inverse). If the price drops further below the neckline after the head and shoulders establish their third top, the pattern is considered complete, and a further decline is predicted. The head and shoulders chart pattern is frequently used to forecast bullish or bearish trend reversals. The slope of the neckline may need to be drawn at an angle rather than horizontally at times. If the neckline is steeply slanted higher or lower, it is less useful for trading and analysis. When the security price drops below the neckline of a topping pattern, it indicates that the previous uptrend has probably ended and a down trend has started. A stock may drop through the neckline and then rise as a result of low volume.
The National Stock Exchange is India’s leading exchange, established at the behest of the government by a group of leading Indian financial institutions to bring transparency to the Indian capital market. With world’s largest derivatives exchange as of 2021 by number of contracts traded based on the statistics maintained by Futures Industry Association (FIA). The exchange was founded in 1992 and is located in Mumbai, Maharashtra. It was the first exchange to set floor for dematerialized electronic shares in the country. The NSE was the first exchange to provide a modern, fully automated screen-based electronic trading system replacing the paper based settlement of trades that allowed investors across the country to trade easily and trades executed on time. One of the most important changes was the implementation of a robust risk management system to ensure that settlement guarantees would protect investors from broker defaults. The National Stock Exchange provides trading, clearing, and settlement services in the equity, equity derivative, debt, commodity derivatives, and currency derivatives segments.
Trading through this stock exchange is carried out through an electronic order book where order matching takes place through a trading computer. This entire process does not have the involvement of specialised experts is driven entirely by orders, meaning that when investors place a market order, it is automatically marched with limit order. Thus in the marker seller and buyer have the advantage of remaining incognito.
NSCCL and ICCL
The National Security Clearing Corporation Ltd (NSCCL) is a wholly owned subsidiary of the National Stock Exchange, and the Indian Clearing Corporation (ICCL) is a wholly owned subsidiary of the Bombay Stock Exchange. A clearing corporation is an organisation affiliated with an exchange that handles transaction confirmation, settlement, and delivery.
Suppose you want to buy 1 share of TCS. For buying, there must be a willing seller. The clearing corporation’s role is to ensure:
- Identify the buyer and seller quotes and facilitate the process.
- The clearing corporation also ensures there are no defaults by either party. The buyer and seller should live up to their part of commitments.