Qualified institutional placement allows Indian listed companies to raise funds from domestic market. This process was introduced by Securities and Exchange Board of India to enable Indian listed companies to raise funds without providing preliminary filling regarding the issue of funds.
The fund can be raised through the issue of securities to qualified institutional buyers.
Net asset value (NAV) refers to the market value of single unit and is calculated by dividing the net assets by total number of outstanding units.
Here,
Net assets = Total assets – Total liabilities
Outstanding units = Units or shares currently held by shareholders or investors
The following formula can be used in the computation of NAV:
NAV is associated with mutual funds and in that context, it represents market value of single unit of a particular fund. The market value of unit is the price at which unit can be trade in the market.
Lets assume that Vikas Yadav wants to invest in mutual fund of XYZ Ltd and has the following figures:
Total assets of mutual fund = INR 1,00,000
Total liabilities of mutual fund = INR 30,000
Total outstanding units : 5,000
He can calculate the market value or NAV as below:
Market value or NAV = (1,00,000 – 30,000)/ 5,000 = INR 14
Wholesale price index (WPI) is used as a measure of inflation in some countries. This index measures and tracks the change in price of commodities at wholesale level. It means that change in price of goods is measured at the beginning and at the end of concerned time period. It includes goods that are sold in bulk and traded between organizations instead of consumers.
Memorandum of association is a legal document that regulates a company’s external activities. This document is drawn up at the time of formation of a registered company.
Memorandum of association along with article of association forms a company’s constitution.
MOA is a public document and it may be accessed by anyone.
Article of association refers to a document which specifies regulations for the operations of a firm. The article of association defines a company’s purpose and lays down the process of accomplishing tasks within an organization. It also includes the process of appointing directors and handling the financial records.
