The increase in inflation is alarming to many. It is especially concerning to those who are approaching retirement and need their savings to last the remainder of their life. The key for retirees is to plan ahead.
The regulator is more carefully scrutinising applications by infrastructure investment vehicles that have a limited number of investors. They have been asked to broaden their investor base before application approval, according to two people familiar with the matter. The Securities and Exchange Board of India is concerned about the structure being used for getting around tax requirements, according to one of the sources. “They are apparently informed that people are structuring investments through InvITs to avoid tax,” said one of the people. A second person confirmed the move. The scrutiny applies to private unlisted InvITs. An InvIT is an investment vehicle which holds an infrastructure asset such as roads or power plant. The cash flow from the underlying asset is used to pay investors who have bought units in the InvIT. It is considered a useful way to monetise such assets, and also raise money for funding infrastructure projects.
ETP Guide: How Exchange Traded Products Work
2021-06-01 17:30:00
DFX Research,
WHAT IS AN ETP?
Exchange traded products (ETPs) are exchange-listed investment vehicles that typically track the movements of an underlying index, sector, commodity or financial instrument. The value of each ETP security is tied to both the value of its underlying and its market demand. This means that prices can appreciate or depreciate – like stocks and other securities – over time.
To restate this, ETPs are securities that can be bought and sold on public exchanges in the same way as normal stocks. Whereas a stock’s price is highly dependent on the value of the company it represents, the value of an ETP is largely based on the value of the securities or assets it tracks.