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SEBI requirements for IPO

 Lets understand  SEBI Requirement  SEBI requirements for directors/promoters/founders/investors There is no disciplinary action against the company founders/promoters/directors/selling shareholders. The promoters/directors/founders/investors/issuing company should not be barred from accessing the capital markets . The company cannot apply for an IPO until the debarment period has expired. The promoters/managers/founders/investors should not be affiliated with another company that is excluded from access to capital markets. The promoters/directors/founders/investors should not be defaulters. The promoters/directors/founders/investors must not be classified as fugitive offenders as defined in the Fugitive Economic Offenders Act 2018. The promoters should individually or collectively own at least 20% of the equity after the IPO. 2. NSE IPO Eligibility Criteria In addition to the IPO guidelines prescribed by SEBI, the NSE requires that the issuing company meet the following eligibility cr

Why does a Company Issues IPO shares?

 Hello friends why company issue shares  Why does a Company Issues IPO shares? A company issues an IPO for a number of reasons. Let us look at each of these reasons in detail: Raising Capital One of the main reasons for IPO is to raise capital for expansion, growth, debt repayment, and for the future. A company needs capital at every stage of its life cycle. It cannot go public immediately after it is established. A company goes through various financing phases to meet its capital needs before going public. Funding stages in a company's life cycle: Self-funding, funding from family and friends. Angel Investors Venture Capitalists Private Equity Investors Bank Loan When the above sources of funding have been exhausted, a company chooses an IPO over another source of funding for the following reasons: Angel investors have already exhausted their capacity. Raising more funds from Venture Capitalists or private equity investors would mean losing control over the company with the majori

How to use Bollinger Bands: A powerful technical tool for traders

 How to use Bollinger Bands: A powerful technical tool for traders Bollinger Bands are a popular  technical analysis  tool used by stock market traders to assess price volatility and identify potential buy or sell signals. Developed in the early 1980s by John Bollinger, a renowned trader and Chartered Market Technician (CMT), Bollinger Bands provide insights into market conditions by combining the concepts of a moving average and a volatility measure in one indicator. According to Bollinger, his namesake indicator is not just for stocks, but can also be used for  futures ,  commodities , and  currency trading . In addition, Bollinger Bands are time frame agnostic, meaning they apply to all time period charts. The mechanics of Bollinger Bands Bollinger Bands combine a simple moving average (SMA) and a measure of price volatility via standard deviations (SD). The calculation of Bollinger Bands involves three main components: Simple moving average.   The SMA is calculated by summing up a