Finance World
What is E-Voting and why should an investor participate?
What are e-votes and their history
e-Votes are electronic votes that all the shareholders can cast for the resolutions passed in general meetings and this process of casting the votes is known as e-Voting. The shareholders cast their votes from their remote locations without the drawback of being physically present to vote.
The e-Voting facility was launched by NSDL( National securities depository limited) in the year 2012. NSDL facilitates e-Voting to shareholders who hold shares in both demat format and physical format. Any company which wishes to avail of e-Voting approaches NSDL or CDSL ( Central depository services limited). Through these depositories, the shareholders can avail e-Voting facility from their home/office.
Similarly, the custodians can vote on behalf of their clients. NSDL has a separate custodian module for such custodians who can easily participate in various postal ballots/general meetings.
Who can cast e-votes?
Every shareholder can cast their vote. Typically the shareholder can cast one vote per share he/she possess in their portfolio. As we know investing in a company through shares is partly owning the company, the right to vote is mandatory for an investor. A common shareholder can cast one vote per share he holds, and the shareholders who own preference shares do not have voting rights. ( Shares that are allotted to shareholders before the common shareholders receive their shares, and they are entitled to get a share of the company if the company goes into bankruptcy). Also, the SEBI restricts voting by shareholders who hold depository receipts of foreign countries. For example, an individual holding ADR of Infosys will not be able to cast his e-votes in any of the AGMs.
Why do shareholders vote?
Voting in general is a meeting or electorate, where a group of people meet together to take a collaborative decision, usually to choose a well-equipped or qualified candidate. It is critical to choose the right candidate because the elected candidate represents the constituency from where he hails and addresses the government directly. This is the process of conducting elections in any democratic country. In the same way, corporates conduct elections among shareholders to select the board of directors. While political elections are mandated by electoral laws, corporate elections are mandated by corporate laws. Shareholders also vote on
- Corporate actions like dividends, bonus issues, rights issues, stock split, merger, acquisition, etc.
- Adding in or removing any of the Board of Directors (BOD).
- Any other major corporate actions.
Timeline for e-voting
- The shareholder receives a mail consisting of the postal ballot for the voting company, in which he holds a share. Let’s take an example of a postal ballot here:
This is made available a few days earlier before the e-Voting begins. The shareholder thus gets time to research the resolutions which will be open for voting on future dates.
- The shareholder will receive a mail from CDSL or NSDL where the e-Voting takes place with details of e-Voting in it.
- There are 2 options for individual shareholders with demat securities and non-individual shareholders and shareholders with physical stocks. The depository services namely CSDL and NSDL provide separate logins to the above entities.
- CSDL had made a facility known as CDSL Easi, where the shareholder can reach the e-Voting page without any further authentication.
- Alternatively, the shareholder can log in through the CDSL e-Voting page after providing the demat account number and PAN number. This page authenticates the shareholder through OTP in mobile and Demat accounts.
- After logging in the user will be able to vote from a list of companies where the e-Voting is in progress.
What happens after e-Voting?
The company will issue the results of the voting in the CDSL and NSDL sites under the category of results.
We will take the example of Chambal Breweries & Distilleries Ltd which announced its results after conducting the AGM of shareholders on 10th July 2023.
Two resolutions were passed in the AGM
- To adopt the Audited Financial statements of the company for the year ended March 31, 2023, together with reports of Auditors, Board of directors thereon.
- Another resolution is to appoint a Director in place of Mr.Parasram Jhamani, who retires by rotation and is eligible and offers himself for re-appointment.
In both cases, the meeting took into account the majority of shares and passed the resolution supporting the majority.
Recent e-voting news in the stock market
- A Scrutinizer report which was released in June 2023, mentions the shareholders of Wipro approved the buyback of shares worth Rs.12,000 crores which include 26.96 crores equity shares
- Shareholders of Adani Group acquired NDTV have approved proposals for the appointment of new directors. The important resolutions passed during the AGM are the appointment of independent directors, remuneration payable to non-executive directors, and appointment of additional directors.
- Adani Transmission seeks Rs.8500 crores through the issuance of equity shares on a qualified institutional placement basis.
From this article, we understood the meaning of e-voting in the stock market and when was it introduced. We also discussed the individuals qualified to vote, and the reasons to vote in a Annual general body meeting. We tool real-time examples to understand the timeline of the e-voting process and what happens after the e-voting process completes. Voting is a right and this right gives the shareholder ownership of a company. If an investor wishes to invest more shares in the future, it is essential for him to understand the corporate actions, select the best directors, CEOs, and auditors and most importantly he gets to decide on the dividends, which is a crucial return for an investor. Though the votes cast by an individual investor do not reflect much in decisions, a collection of such unified decisions can create ripples in the company.
This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?
What is the business of Muthoot Finance?
First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.
Muthoot Finance target price by Kotak
Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.
New Friends and New Frontiers
Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.
Spreading Their Wings
Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.
Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:
So, What’s the Deal?
While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.
Keep following us for more such latest news on TradeAlone.
Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.
XDuce: A Hub of Innovation
Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.
A Fusion of Giants
So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.
Redefining Financial Technology
Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.
The Road Ahead
According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.
Infibeam Avenues Ltd at a Glance
Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.
Wrapping Up
The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.
Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.
Finance World
Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year
In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.
A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.
Why Telangana and Andhra Pradesh?
The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.
SCNL’s Blueprint for Empowerment
SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.
A Message from the Leadership
Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”
Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.
Beyond Expansion – A Look at SCNL’s Innovations
SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.
The Road Ahead for SCNL
As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.
Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.
Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.
Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.
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