india equities fund limited
frequently asked questions
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Q. What is the India Equities Fund Ltd code on the ASX?
A. It is both INE and INES.
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Q. How do I find India Equities Fund Ltd page on ASX?
A. Enter INES in the Code search to get the latest information and announcements from India Equities Fund Ltd.
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Q. Why is the India Equities Fund Ltd page on the ASX show just the “INE” and not “INES”?
A. We have been working with ASX on this and they are facing technical difficulties in making the input code “INES” consistent with what is displayed on the company page. We hope ASX will help us overcome this technical problem as soon as possible. So, if in doubt, just try both INES and INE.
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Q. Why is there an INES code?
A. The “S” in INES stands for Stapled Option. The “S” on the INES code will be removed after the option expires on 12 September 2008.
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Q. Why can’t I find India Equities Fund Ltd information on the ASX website?
A. The ASX code search system on the ASX website cannot recognize the INE code because an option is stapled to the India Equities Fund Ltd share. The ASX computer system automatically attaches an S to the code INE code.
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Q. Which code should I use for India Equities fund Ltd on the ASX website?
A. Use INES on the code search, with S indicating ‘stapled option’. You will be able to retrieve all the ASX information and announcements for India Equities Fund Ltd.
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Q. What is an NTA?
A. NTA stands for Net Tangible Assets (NTA). It is the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock.
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Q. Where can I find India Equities Fund Ltd’s NTA?
A. India Equities Fund Ltd is required by law to report its monthly NTA per share to the ASX no later than 14 calendar days after the end of the previous month. Please click here to go to the Company's NTA announcements on the ASX website.
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Q. What is an NAV?
A. NAV stands for Net Asset Value (NAV). It is the total value of the company’s assets less its liabilities. For example, if an investment company has securities and other assets worth $100 million and has liabilities of $10 million, the investment company’s NAV will be $90 million. Because an investment company’s assets and liabilities change daily, NAV will also change daily.
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Q. Is there a difference between an NTA announcement on the ASX and an NAV?
A. NTA and NAV differ slightly in calculation in that an NTA excludes, where NAV includes, the intangible assets portion in their respective calculations. However, it is important to recognize that intangible assets in investment companies are usually minor to the extent that the NTA and NAV amounts are the same. This is often why NTA is referred to as NAV in investment companies.
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Q. What is Net Tangible Asset (NTA) per share?
A. This is calculated by dividing the total Net Tangible Assets (NTA) of the company by the number of shares outstanding. Calculated as:
Net Tangible Assets per share = Total Net Tangible Assets / Number of shares outstanding
This calculation is often a fundamental analysis indicator that gives an estimate of the value of a company's shares after all assets are sold and all liabilities are paid off.
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Q. Why is there a post-tax amount on the NTA?
A. India Equities Fund Ltd is a long term investor in listed Indian securities. The Company is required under accounting standards however to provide for tax on all unrealised gains that would arise on a theoretical disposal of the total portfolio as at each reporting date.
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Q. Why is the India Equities Fund Ltd share price less than the NAV?
A. This is known as the share price selling at a “discount to the NAV”. Most Listed Investment Companies (LICs) trade at a discount at some stage. This may occur for several reasons that include, but not limited to, an indication that market anticipates the underlying assets in a company will dip in value, a temporary market over-reaction, or effects of expected dividend yield.
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Q. What is an LIC?
A. A Listed Investment Company or LIC is an Australian closed end collective investment scheme traded as securities on the Australian stock market.
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Q. When are dividends due for India Equities Fund Ltd?
A. The directors of India Equities Fund Ltd have resolved to pay an unfranked interim dividend of 1 cent per share to shareholders. The record date for payment of the dividend to shareholders is 2 October 2007. Payment of the interim dividend will be made on 15 October 2007.
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Q. Are my dividends getting automatically reinvested in the Dividend Reinvestment Plan (DRP)?
A. No. Participation in the Dividend Reinvestment Plan is optional and open to all shareholders of India Equities Fund Ltd unless expressly excluded from certain terms and condition. You will need to elect or apply to be part of this plan.
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Q. When will the Dividend Reinvestment Plan (DRP) apply?
A. The Dividend Reinvestment Plan will apply to dividends payable after the exercise date of the Stapled Option on 12 September 2008.
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Q. If I have already registered for Dividend Reinvestment Plan (DRP) do I have to do it again?
A. No
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Q. Why isn’t my dividend franked?
A. The company was listed in April 2007 and will not have settled its tax liabilities by the time of distribution. Therefore, the company will not have generated any franking credits to be used on the dividends.
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Q. Will future dividends be franked?
A. Yes, to the extent that franking credits are available.
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Q. Is there currently an option stapled to my share of India Equities Fund Ltd?
A. Yes. There are two parts to the stapled securities you currently hold.
- an underlying India Equities Fund Ltd share; and
- an option to buy another India Equities Fund Ltd share for $1.00 on 12 September 2008.
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Q. What is a Stapled Option?
A. It is an option that is stapled to the underlying India Equities Fund Ltd share. The option remains stapled to the share to a date, which in this case is 12 September 2008, specified by the company in the prospectus. The option cannot be sold separately at any stage.
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Q. How can I be sure there is an option stapled to the shares I currently hold?
A. The S at the end of the INES code at the ASX website indicates a stapled option attached to the share.
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Q. Can I trade the option in the market now?
A. No. The option remains stapled to your India Equities Fund Ltd share until 25 August, 2008. On this date, the underlying India Equities Fund Ltd share and the Option will separate, which means only the share portion will be traded on the market place without the Option portion.
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Q. Do I have to make sure I attach the option to the India Equities Fund Ltd share I trade?
A. No. Up until end of day 25 August 2008, the India Equities Fund Ltd share you trade in the market is automatically traded with the option “stapled” or attached to the share. After this date, you will only be trading the share portion and not the option. The option portion stays with you until the exercise date, by which time you can choose to exercise the option or else let the option lapse.
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Q. When can I execute the option stapled to my share?
A. You can exercise your option on the day of 12 September 2008. Exercise before this date by sending your exercise notice, and payment will only take effect on the 12 September 2008. The official record date of all the options in the market is 1 September 2008. However, the only day to exercise this option is 12 September 2008. If the option is not exercised on this date, it will expire.
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Q. Can you please show this to me visually?
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Q. Why don’t you list all the companies in the portfolio?
A. The exact portfolio changes frequently. To this end, we do announce the top 10 largest holdings in the monthly Investment Report. We will also be disclosing the full portfolio in the Annual Report 2008.
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Q. Where can I find more information about the companies that India Equities Fund Ltd invests in?
A. All companies have websites that can easily be found via an internet search. Also feel free to go to:
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Q. Is India Equities Fund Ltd a suitable investment for my portfolio?
A. We cannot provide specific investment advice to individuals. Seek professional guidance from your licensed financial adviser, stockbroker, solicitor, accountant or other professional adviser.
Consider all risks and other information about investing in the Shares in light of your investment objectives, financial situation or specific needs (including financial and tax issues).
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Q. If I have questions not addressed in this FAQ, what should I do?
A. You are encouraged to contact us directly:
We would be pleased to hear from you.
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