Why invest in India and how to invest in India?
It is not enough on this basis. India also has many exclusive rules. For example, the company’s directors have insider trading and manipulate the market. They will retreat directly.I have to retreat, and there are insufficient liquidity of stocks, like Hong Kong immortal stocks, I have to retreat …, I ca n’t say it, just post it for yourself.
In so many aspects, you have to go in this market, so there are more retired numbers.Is it over if it retreats, of course not.Saying a shareholder of A shares dare not think:
Once the delisting is forced to take effect, the exchange will immediately send an independent professional team to evaluate the company’s assets and set a fair price for the stock.The delisting company must repurchase the stock to investors at this price. If it does not perform, it will face punishment.
A bit around, it means that the company has to buy all your stocks back at the price set by the exchange.
In addition, the company’s fraud is considered criminal responsibility and is an irreplaceable crime.According to the Indian company law, companies involved in financial fraud may be at least six months and the highest ten years of imprisonment.
It is not over to go to jail. You have to bear civil liability. Facing 100%-300%of the amount involved in the case, and the enforcement of the court to ensure that the benefits of the invasion can be returned to a listed company.
In a word, if you dare to fraud, you will be punished for your family to go to jail, so it is difficult for those companies in India to go on the market.
Even if it is listed, there are regulations: the initiator shall not be less than 20%and lock at least 3 years.If you want to go on the market as soon as possible, it is not so easy.
It is also worth saying that there is no so -called "transition period" in the Indian exchanges’ delisting procedures.Once a special group decides to retreat, it will take effect immediately after the complaint period on the 15th.
Unlike Indian stocks, it will go through the suspension of listing for a period of time before the implementation of the delisting of Indian stocks. A large number of hats wearing companies have enough time to pick up the star to take off their hats for "shell".For many years, this has also created the fantasy phenomenon of hot -fried Stocks, and shareholders and listed companies coexist.
The following figure is comparison of the delisting process of several exchanges. You can see that India is the only one, the final institution is the Supreme Court, and does not support the issuer’s rectification.
Speaking of which I want to vomit.Indian shareholders are very entangled. On the one hand, they want to purchase new shares to obtain huge profits, and on the other hand, they are afraid of expanding new shares.The difficulty of listed on the market, and the difficulty of delisting is a phenomenon that the Indian market has never had it.
In addition, India has implemented T+0 turning transactions, and the settlement cycle on March 28 this year has also been changed from T+1 to T+0, that is, it can be traded on the same day.The market is extremely free, but it is incredible that the Indian stock market has a far -reaching rate of turnover than A shares.
The above figure shows the annual change rate of India’s annual change since 2000, with a median number of 60%.Under the T+1 system, the Indian stock market also created an average annual turnover rate of about 600%. It can be seen that Indian shareholders are indeed "stock trading" and retail investors have contributed more than 82%of transactions.
In general, we will think that if there is no change rate, there is no popularity, and there is no bull market.So, how does the Indian stock market have such a low turnover rate to maintain popularity and cattle?
In 1992, when the two stock exchanges in India were established less than 2 years after the establishment, the Indian stock market began to open to the outside world, allowing foreign institutions to enter, and in a few years, the proportion of foreign investment participation from 24%to 30%, even if it passed through the pass, even if it passed throughThe board of directors agreed that the maximum can reach 49%, and foreign capital can invest in derivatives in addition to stocks.
After 1999, it entered the stage of deepening, and continued to relax foreign exchange control and capital exit control. By 2012, foreign individual investors were allowed to directly enter the Indian stock market.
By 2023, India’s foreign -funded shareholding ratio reached about 38%, and local institutions accounted for 23%.Except for non -exchanges shareholders, more than half of institutional investors, of course, will not be as keen as retail investors who are enthusiastic about frying, leek.
It is worth mentioning that India also allows overseas companies to IPOs. Several foreign companies have been listed on the Indian stock market, including United Leahua, Siemens, Hyundai Motors and other big -name companies, and A shares have not been listed by foreign companies so far.In combination with this dimension, the Indian stock market is already a high degree of internationalization.
Therefore, India, a country that we think is backward, its stock market is actually quite mature. In addition to the above -mentioned regulations, systems, market environments, and investor structures, India’s securitization rate has also been higher than India.
The securitization rate of a country = the total market value of the stock/GDP. In short, the total assets of the stock market are compared with the GDP. The countries with a high securitization rate usually have a more developed capital market.
The figure above is the securitization rate data of India since 1988. It can be seen that it has reached more than 100%in recent years and has reached the level of developed countries.Except for India, there are only a few more than 100%in the United States, Britain, Japan and South Korea, and 150%in the highest United States.
And I calculated only 57%of the latest data of A shares, so our capital market still has a lot of space.If it can be supported by a sound regulations, the future is also very expected.
I saw a statistics on the Internet last year. All Indian companies listed abroad have calculated, including B -shares and Hong Kong stocks, only 80.7%.I posted it below:Kolkata Wealth Management
As mentioned earlier, there are nearly 5,000 stocks in the Mumbai Exchange. There is a phenomenon that must be paid attention to. 90%of which are composed of 500 companies.Sexuality is also low.
So here we can draw a more preliminary conclusion that investing in India must not speculate in small stir.Because institutional investors hold groups inside, those companies with delisting risks are no longer worthless when they are on the market.
The above content is just about the development of a healthy and stable stock market, which requires the basic conditions, and whether the stock market can riseKanpur Stock. The core support is the economic fundamentals.At this point, I feel that the article is already very long. I am afraid that everyone will not read it, and it will not be digested too much at once.
The day before yesterday, I just wrote an Indian fund to call everyone to buy itBangalore Investment. Yesterday, I announced the restriction of purchase. Now each person can only buy 300 yuan per day.However, it is enough for ordinary people as one of the fixed investment varieties. Write a few advanced varieties today, but you need overseas accounts.
The varieties mentioned above are all listed on U.S. stocksSurat Investment. At present, it is just a popular investment variety. Investment conclusion I have finished writing and then I went through the stock selection.Give everyone