Corporate Valuations’ Post

Knowledge series 1 #workingcapital #cashcredit What are the differences between cash credit limit and overdraft limit? CC limit given by banks taking stock and debtors as primary securtiy. Bank may ask fixed assets of the borrower or company as additional security. OD limit given by bank taking fixed assets as primary security.

Regulators to review mutual-fund sales practices in bank branches. The announced investigation is a response to findings revealed in a public report. https://hubs.la/Q02-Yfq_0

Global financial services provider Barclays Capital Inc. has been censured and fined $1 million by the Financial Industry Regulatory Authority (FINRA) for violations of rules relating to net capital. #alternativeinvestments #brokerdealer #RIA #FINRA #financialservices #adviser #brokerage #registeredinvestmentadviser #FinancialIndustryRegulatoryAuthority #brokerage #misconduct #Barclays #BarclaysCapital #NetCapital

Continuous journey of improving post-trade processing requires vigilance, collaboration https://lnkd.in/gFV6mwYh #Finance #Settlement #ViewPoint #Securities

Discover how lenders evaluate risk when unsecured portions of loans are paid in securities. Learn about counterparty credit risk, collateral quality, and regulatory considerations in this comprehensive guide. #bankruptcy #chapter11 #chapter7 #business

How long should it take to transfer a brokerage account from one firm to another? 🤔 While transfers should typically take just 4 business days and operationally excellent firms can typically do them in 3, many firms aren't communicating this clearly to their clients. In our latest article, we break down: 1️⃣ What a brokerage account transfer is and the timelines that many banks and brokerages present. 2️⃣ What actually happens during the 3-4 business days of a typical transfer. 3️⃣ How upcoming changes will make transfers even faster. Read the full analysis here: https://lnkd.in/eTUBq_DS

Introducing the Securities Lending Working Group! Their mission is to establish comprehensive market practice standards for all securities lending related activity. They're tackling key issues including: 🔹Collaborating with RMA on updates to their Buy-In best practice. 🔹Creating recommended best practices for custody clients/IMs effectuating trade partials. 🔹Proposing an automated claim adjusted process specifically for US Treasuries lending activity. The Securities Lending Working Group is working hard to ensure a more efficient and standardized securities lending market. For more information, visit: https://lnkd.in/eWW7i2_J  #SecuritiesLending #MarketStandards #IndustryCollaboration #RiskManagement

Companies may have a tendency to overstate their cash balance. A company that is trying to improve its balance sheet will have a tendency to accelerate recording of deposits, so a deposit that wasn't really made until January might be erroneously listed as a deposit in transit at year-end. Tracing deposits from the cutoff statement to the year-end bank reconciliation won't identify this error, since there is no mention in this option of identifying the actual dates the deposits were made.

𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐞𝐝 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐨𝐫 𝐬𝐰𝐞𝐚𝐭 𝐞𝐪𝐮𝐢𝐭𝐲 𝐬𝐡𝐚𝐫𝐞: 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐀𝐜𝐭, 𝟏𝟗𝟔𝟏. What is the Transaction? Determining the Fair price for specified security or sweat equity share being a share in the company.   𝐖𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐆𝐨𝐯𝐞𝐫𝐧𝐢𝐧𝐠 𝐏𝐫𝐨𝐯𝐢𝐬𝐢𝐨𝐧 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧? The governing Section for specified security or sweat equity share being a share in the company is  𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟏𝟓𝐖𝐂 𝐚𝐧𝐝 𝐑𝐮𝐥𝐞 𝟒𝟎𝐂.   𝐖𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐓𝐫𝐢𝐠𝐠𝐞𝐫 𝐏𝐨𝐢𝐧𝐭 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧? Trigger Point for the transaction is at the date on which the option vests with the employee.       𝐖𝐡𝐨 𝐝𝐨𝐞𝐬 𝐢𝐭? 𝐒𝐄𝐁𝐈-𝐫𝐞𝐠𝐢𝐬𝐭𝐞𝐫𝐞𝐝 𝐂𝐚𝐭-𝟏 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐭 𝐁𝐚𝐧𝐤𝐞𝐫. 𝐅𝐨𝐥𝐥𝐨𝐰 Corporate Valuations 𝐟𝐨𝐫 𝐦𝐨𝐫𝐞 𝐬𝐮𝐜𝐡 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 #Valuation #SweatEquity #SpecifiedSecurities #IncomeTaxAct #Section115WC #Rule40C #FairValuation #SEBI #MerchantBanker #CorporateGovernance #EquityShares #EmployeeStockOptions #Compliance #TaxRegulations #SEBIRegulations #StockValuation

A bank guarantee is a financial instrument issued by a bank on behalf of a client, ensuring that the bank will cover a specific amount if the client fails to meet their contractual obligations. Essentially, it's a promise by the bank to fulfill the payment or performance obligations of its client if the client defaults. Process: Request: The client applies for a bank guarantee from their bank, providing details of the transaction or contract for which the guarantee is required. Issuance: The bank assesses the client’s creditworthiness and issues the guarantee if satisfied. The guarantee will specify the terms, conditions, and amount covered. Claim: If the client defaults, the beneficiary can make a claim on the guarantee. The bank will review the claim and, if valid, make the payment to the beneficiary.