Finance Literacy

Understanding SEBI’s Report on Algorithmic Trading and Its Impact on Retail Investors The financial markets have been revolutionized by algorithmic trading, a technological advancement that has given proprietary traders (prop traders) and Foreign Portfolio Investors (FPIs) a significant edge. According to SEBI’s recent study, algo trading has accounted for more than 96% of their profits … Read more

Retail investors have long been attracted to equity derivatives, especially in futures and options (F&O) trading, hoping for quick financial gains. Yet, a recent report by the Securities and Exchange Board of India (SEBI) offers a startling reality check: 93% of retail investors suffered significant financial losses in this market between FY22 and FY24. What’s … Read more

The landscape of non-institutional investors in Indian IPOs has experienced a seismic shift, thanks to recent SEBI policy changes. This article dives into the segmentation of NIIs into small-NIIs and big-NIIs, exploring how these new rules are revolutionizing IPO participation, oversubscription rates, and market stability. Understanding SEBI’s New NII Segmentation: Small-NIIs vs. Big-NIIs Historically, non-institutional … Read more

The world of Initial Public Offerings (IPOs) often defies traditional financial logic. A prime example of this is the disposition effect, a behavioral bias where investors are more likely to sell appreciated shares while holding onto those that have lost value. This article explores the disposition effect among IPO investors, its roots in behavioral finance … Read more

Retail investors in Indian IPOs is experiencing a surge, and a recent SEBI report uncovers an intriguing trend: a significant regional concentration of retail investors. Leading the charge is Gujarat, contributing a staggering 39% of retail IPO investors, with Maharashtra and Rajasthan following behind. But what drives this regional skew? Let’s explore why Gujarat dominates … Read more

Attract retail investors during an IPO is essential for creating a balanced, diverse, and dynamic shareholder base. Retail investors bring liquidity, long-term stability, and can help mitigate the influence of large institutional players. But how can companies effectively win over retail investors in a competitive IPO landscape? Below are 10 powerful strategies that companies can … Read more

In the world of Initial Public Offerings (IPOs), anchor investors are considered the cornerstone of stability and trust. These large institutional investors commit to buying a significant portion of shares before the IPO hits the market, signaling confidence and ensuring a smooth launch. However, what often goes unnoticed is the risk of over-reliance on these … Read more

Anchor investors play a pivotal role in the success of Initial Public Offerings (IPOs). These institutional investors, such as mutual funds, insurance companies, and pension funds, commit to purchasing shares before the IPO opens to the public. Their involvement not only boosts confidence among other investors but also stabilizes the IPO process. This article explores … Read more

The landscape of Initial Public Offerings (IPOs) in India has undergone significant transformations due to policy changes implemented by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). These changes, particularly the shift from pro-rata to lottery-based allotments for Non-Institutional Investors (NIIs) and restrictions on IPO funding by Non-Banking … Read more

Flipping behavior in IPO markets refers to the practice of buying shares during an initial public offering (IPO) and then quickly selling them for a profit once they start trading on the open market. This strategy takes advantage of the typical surge in share prices that can occur when a company goes public. The phenomenon … Read more