TABLE OF CONTENT

Introduction:

Dipping your foot in something new might always be quite unnerving. So many new terms to learn, so many new concepts and ideas. Then the lurking fear of possible failure. But there is also quite as rewarding as finally learning and mastering a new craft.

Starting off investing in the stock market is very much the same too. Except, despite the risks involved, getting the hang of investment also has the potential to earn you large monetary returns. With investing, it is important to learn to pick the right company to invest in. And one great way to do that is by looking at the company’s ‘market cap’.

‘Market Cap’ or ‘Market capitalization’ is one of the most basic investment concepts one can start off learning and a great way tell you a lot about what to expect if you're planning to buy a stock.

What is Market Capitalization?

Market capitalization, generally called market cap, is a measure used to determine the total value of a publicly traded company. It is calculated by multiplying the company's current share price or the market price of the shares by the total number of outstanding shares.

Market capitalization represents the market's impression of a company's worth. Once a company goes public and its shares start trading on the exchange, the price of the shares on the daily basis is decided by the demand and supply of the shares in the market. If the demand is high, it means investors trust the company and the share price goes up and vice versa. So, the subsequent change in the market cap of the company becomes a real-time indicator of the company’s worth.

Market cap in the stock market is used to categorize companies into different size categories such as large-cap, mid-cap, and small-cap. These categories can help newer as well as experienced investors decide on which companies, they want to invest in based on their risk appetite and their goals.

Why market cap is important and how to use it:

Market cap in the stock market is a measure of a company's worth in the open market. It is considered one of the best and most easily available measures of a company’s size and it can tell you a lot about what to expect if you're planning to buy stock.

Generally speaking, large companies with a higher market cap are considered to be more stable and mature companies. They have proven themselves over time and grown through a lot of difficult market conditions. Due to this, they have been able to withstand headwinds and can emerge even stronger. But the growth prospects for these large entities tend to be bounded as they have already established themselves in the broader market.

By contrast, medium and smaller companies with respective levels of market cap still have a lot of room to grow. One should note that companies with smaller market caps tend to be riskier when compared to large mature and well-established companies. This is because they may be relatively newer to the market and their business models haven't yet been proven in the long run. This results in their odds of failure being higher than big and large well-established companies.

What are the factors that affect market cap?

Market cap isn't just some random number; it's influenced by a bunch of things that can make it go up or down. Here's the lowdown on the factors at play:

  • Stock Price Swing: If a company's stock price is fluctuating, its market cap moves with it. A soaring stock price gives a nice boost to the cap, while a slide can bring it down.
  • Shares in the Mix: The more shares a company has floating around, the higher the market cap gets. It's like a popularity contest where the more the merrier.
  • Investor Sentiment: Think of market cap as a litmus test for companies. Good news, positive outlook, more investors jumping on board – cap goes up. Shaky faith, investor hesitation – cap heads down.
  • Financial Performance: How a company is doing on the earnings playground matters. Strong profits and growth can inflate the market cap, while losses might deflate it.
  • Industry Trends: Sometimes the market cap movement is all about the industry’s mood. If a whole sector is on fire, caps might inflate together. If the sector outlook is down, they could all take a hit.
  • Economic Factors: Big economic shifts can play puppeteer with market caps. Like, a recession can make them shrink collectively, while a boom can make them bloom.

How is the market cap of a company calculated?

The market cap of a company is calculated by multiplying the current market price of the shares of the company by the total number of shares of said company.

MC = N x SP
MC: Market cap N: Total number of shares SP: Selling price of the shares

So, for example, if company ABC Ltd has 50,000 outstanding shares with selling price ₹150, the market cap of the company would be calculated as:

50,000×15 = ₹75,00,000

This was about what market capitalization means, now let's look at the various types of market capitalization of a company represents. Here is a quick look at the categories companies are divided into based on their market cap:

Type of Stock Market Capitalization Range
Large cap ₹7,000 crores up to ₹20,000
Mid-cap ₹500 crores to ₹7,000 crores
Small cap ₹500 crores and below


Let’s understand more about these categories in detail.

1. Large-cap stocks

Large-cap stocks have market caps of ₹7,000 crores up to ₹20,000. Most of the big companies in the world are Large-cap stocks. Most large-cap companies have mature businesses and generate considerable amounts of revenue. They often earn significant profits and have a large, sizable market share within their industries.

They are most of the time market leaders in their fields. They're also more likely than smaller companies to pay higher dividends to their shareholders because their businesses tend to produce greater amounts of available cash.

But large-cap companies have already experienced and undergone their period of maximum growth. As a result, even successful large-cap companies that pay healthy dividends and whose shares have gone up in value consistently will only sometimes be able to match the massive returns that smaller companies can achieve.

2. Mid-cap stocks

Midcap stocks have market caps in the range of ₹500 crores to ₹7,000 crores, occupying the middle ground between large and small-cap companies. Midcap companies are large enough to have made considerable progress in building up successful business models, and that gives their investors some stability and protection against future challenges that the company will face.

However, they're small enough that they still give investors a longer runway for future growth than a large-cap stock. That said, midcaps also face the difficult task of trying to catch up and surpass their larger rivals in their industries, and they often don't have as many financial resources to do so.

It's important when investing in midcap stocks to know their history. Some midcap companies are still in their high growth phase, while others have reached their full potential in a relatively small niche industry of limited size. Still, others are older companies that used to be large caps but have had their businesses lose steam. Any of these can be good investments under the right circumstances, but they have very different characteristics in terms of growth potential, dividend, income, and valuation.

If you're looking in the midcap space, ideally, you're buying companies that are still posting impressive growth and gaining market share. Those are the kinds of businesses that ultimately become large-cap companies and reward shareholders along the way.

3. Small-cap stocks

Small-cap stocks have market capitalizations of ₹500 crores and below. Small-cap companies tend to be younger than large caps or mid-caps, and they also have a much shorter operating history as a business. Small caps often have considerable growth potential, but investors in small caps face a lot more uncertainty about their future.

In many cases, small caps must give tough competition to much larger competitors to stake their claim within a given industry. And for every small company that succeeds, many fail over time. Small-cap stocks have historically produced higher average returns than large-cap stocks, but their performance has been more volatile along the way. That requires small-cap investors to have a greater risk tolerance than those who concentrate on more extensive stocks. Those with long time horizons can typically weather the ups and downs of small-cap stocks and therefore have a better chance of enjoying the reward of greater returns.

If you want to read more about how Large-cap, Mid-cap and small-cap stocks differ from each other, click here.

How market cap can help you:

Market cap categorizes companies, and it also helps us compare them apples to apples.

Let's take two companies, Company A and Company B. Company A has a stock price of ₹30 and shares of Company B trade for ₹20. Now, which one is the more valuable company?

You can't know without also knowing how many shares each company has outstanding. Say Company A has 100 crore shares outstanding and Company B has 200 crore shares outstanding. Hence, Company B is a bigger company. Even though its share price is lower, it just happens to have sliced up ownership of the business in more ways.

That's why the market cap is a far better indication of where a company sits than the share price, and why it's important to know the size of a business you're buying before you buy it.

Some ratios to keep in mind:

Let's dive into the numbers game that can help you decode the market cap maze. Here are some ratios that are like little secret agents whispering insights in your ear:

  • Price-to-Earnings Ratio (P/E)

    • : This ratio tells you how much you're paying for each rupee you earn. A low P/E might mean a sweet deal, while a high one could mean you're paying a premium.

  • Price-to-Book Ratio (P/B)

    • : Think of this as a price tag on a company's book value. A low P/B could mean you're getting a discount on assets, while a high one might indicate potential overvaluation.

  • Dividend Yield

    • : This one's for the income seekers. It's the dividend paid out per share divided by the stock price. Higher yields mean more cash in your pocket.

  • Earnings Per Share (EPS)

    • : EPS indicates how much value each share pulls in. Rising EPS is usually a thumbs-up, but it may not always mean the same thing. Considering EPS along with other factors to make sense of it is always adviseable.

  • Debt-to-Equity Ratio

    • : This ratio is like checking a company's financial health. High debt? It might be risky business. Low debt? It's a healthier play.

  • Return on Equity (ROE)

    • : It's like peeking at a company's productivity diary. ROE tells you how well the company uses shareholder equity to fund their activities.

  • Growth Ratios

    • : Keep an eye on these as these are important and a good indicator of growth. They show how fast a company is growing its sales or profits. More growth, more returns!

  • Current Ratio

    • : This is the "emergency fund" of ratios. It tells you if a company can cover its short-term bills. Higher ratio? More financial security.

Also read: ROE Vs ROCE – Difference Between ROE (Return on Equity) and ROCE (Return on Capital Employed)

To summarize:

Market cap or the ‘Market capitalization’ of a company is the total value of all the outstanding shares of the company in the market. It is calculated by multiplying the selling price of the shares to the total number of shares. Because the prices of shares are affected by the demand and supply of the shares, the market cap represents the collective sentiment of the market towards the company. Companies are classified into large-cap, mid-cap and small-cap companies based on their market cap.

Most investors find that having a diversified portfolio that includes large-cap, mid-cap and small-cap stocks lets them tailor their desired return and risk levels to their specific wishes.

If you want your portfolio to be more stable, then you want a larger allocation to large-cap stocks. Those who want greater amounts of current income will also typically gravitate to large-cap stocks because they tend to be the dividend payers.

By contrast, if you don't need much income and your primary goal is to have your portfolio grow as much as it can over many years, then you'll likely want to make larger investments in small and midcap stocks. In case you have a high-risk tolerance, you can trade in call/ put options under the recommendation of your financial advisor.

Also read: What is a Put in Stock Trading?

Want a simpler way to invest?
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FAQS – FREQUENTLY ASKED QUESTIONS


  • How does market cap affect shares ?

    There is a misconception that the market price affects the share price. However the market price of the share actually affects the market cap of the company. Sometimes, investors perceive a share with a higher Market capitalization as stable and secure. But that is not always the case, only because a stock has a higher market cap does not mean it is a safe bet. Other financial metrics like the P/E multiple, Growth rate, return on equity, and Dividend yield should be used alongside market cap.

  • Why is market cap not important ?

    Market capitalization is computed by multiplying the number of shares outstanding by the current price of the share market. Market cap is not important because it is constantly changing as a stock price changes, so if we compared two stocks, let’s say one with a market cap of ₹500 crores and ₹600 crores. We can’t assume that the company with the higher market capitalization is better only based on its market capitalization. Market capitalization is one of the many financial metrics that analysts use to analyses the company alongside market cap

  • What is a market cap in shares ?

    Market capitalization, also called as market cap, is the total value of the company stock. It is calculated by multiplying the current price of the stock by the total number of shares outstanding in the market. Market capitalization is an important metric used by investors and financial analysts. It is also one of the most common measures to compare companies within the same industry. Popular stock indexes like the Nifty 50(India) use market capitalization as a criterion to add and remove stocks from their index.

  • How can market capitalization be increased ?

    Market capitalization consists of two components. One, the number of shares outstanding and the price per share. This means that the market capitalization of the company increases when one or a combination of the below scenarios takes place.

    1. When the company comes up with a new stock offering which results in an increase in the number of equity shares floating in the open market
    2. When the stock price of the company increases investors perceive higher earning potential for the company soon.

  • How does market capitalization affect a company's borrowing capacity ?

    Market capitalization can impact a company's borrowing capacity as it is often used as a measure of the company's financial strength and stability. Lenders and creditors may consider a company's market capitalization when determining its creditworthiness and the terms of borrowing.

  • Can market capitalization change significantly in a short period ?

    Equity markets can be volatile during uncertain market conditions. One can use a volatility index to gauge the volatility in the market.

    As market capitalization is heavily dependent on the price and volatility of the stock, yes, it is very much possible that the market capitalization can change significantly in a short price in a short period. Various factors like earnings reports, mergers and acquisitions, changes in industry trends, changes in investor sentiment and various other factors can contribute to sudden fluctuation in the company's stock.

  • Are there any limitations to using market capitalization as an investment metric ?

    Yes, market capitalization has its limitations. It provides a snapshot of a company's value but doesn’t consider factors such as debt levels, cash flow, or profitability. Also, market capitalization can be influenced by short-term market dynamics, which may not necessarily reflect a company's long-term potential or intrinsic value. It is important to also consider other financial metrics before making investment decisions.

  • What are market capitalization rules ?

    Market capitalization rules in India are regulated by the Securities and Exchange Board of India (SEBI) and the stock exchanges. Her’s an overview of market capitalization rules in India:

    1. Companies listed on Indian stock exchanges are categorized based on their market capitalization into large-cap, mid-cap, and small-cap.
    2. Indian stock exchanges maintain indicts that track the performance of companies based on their market capitalization. These indices serve as benchmarks for investors. Examples: Nifty 50, BSE Sensex, etc.
    3. Market capitalization rankings and classifications are periodically reviewed and updated.
    4. Companies listed on stock exchanges in India are required to comply with SEBI regulations regarding market capitalization disclosures and reporting.

 

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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All Personal Information including Sensitive Personal Information provided/related to you, shall be stored/used/processed/transmitted expressly for the Purpose or facilities indicated thereon at the time of collection and in accordance with the Privacy Policy. Other than those otherwise indicated and agreed by You, this Website do not collect or store or share your Personal Information. Aditya Birla Capital is the brand and accordingly all products and facilities are provided by respective ABC Companies as applicable. Therefore, for any of these Purposes, the Website will use ABC Companies their authorized third party vendors, agents, contractors, consultants or facilities providers (individually a ‘Third Party Service Provider’ and collectively, the “Third Party Service Providers”) and to that extent you understand and authorize the Facilities Provider to share/transmit such information to Third Party Service Providers. Such sharing of information will be solely for the purpose to fulfill / complete / authenticate your specific requests/transaction execution and for providing information about any ABC Companies product or facilities or services or for data analytics or to deliver to you any administrative notices, alerts or communications relevant to your Purpose (and which may include sending promotional emails or SMS or calls or any other mode permitted under law) or to analyze the usage and improve the facilities/solutions offered or for any research or troubleshooting problems, detecting and protecting against errors or to improve features, tailor the facilities on the Website to your interests, and to get in touch with you whenever necessary.

Except in the manner as stated in the Privacy Policy, the Website will not disclose your Personal Information with any affiliated or unaffiliated third parties,

You may receive e-mails /communications/notifications from the Third Party Services Providers regarding facilities updates, information/promotional e-mails/SMS and/or update on new product announcements/services in such mode as permitted under law.

Use of Website in India

This Website is controlled and operated from India and there is no representation that the Materials/information are appropriate or will be available for use in other locations. If you use this Website from outside the India, you are entirely responsible for compliance with all applicable local laws. There is no warranty or representation that a user in one region may obtain the facilities of this website in another region.

Information published on the Website may contain references or cross references to products, programs and facilities offered by ABC Companies/third parties that are not announced or available in your country. Such references do not imply that it is intended to announce such products, programs or facilities in your country. You may consult your local advisors for information regarding the products, programs and services that may be available to you.

In your use of the Website, you may enter correspondence with, purchase goods and/or facilities from, or participate in promotions of advertisers or members or sponsors of the web site, including those of ABC Companies. Unless otherwise stated, any such correspondence, advertisement, purchase or promotion, including the delivery of and the payment for goods and/or facilities, and any other term, condition, warranty or representation associated with such correspondence, purchase or promotion, is solely between you and the applicable ABC Companies and/or third parties.

You agree that Facilities Provider / ABC Companies has no liability, obligation or responsibility for any such correspondence, purchase or promotion between you and any other ABC Companies and/or third parties.

Third party websites

This Website may be linked to other websites (including those of ABC Companies) on the World Wide Web that are not under the control of or maintained by ABCL. Such links do not indicate any responsibility or endorsement on our part for the external website concerned, its contents or the links displayed on it. These links are provided only as a convenience, in order to help you find relevant websites, facilities and/or products that may be of interest to you, quickly and easily. It is your responsibility to decide whether any facilities and/or products available through any of these websites are suitable for your purposes. The Facilities Provider or ABCL is not responsible for the owners or operators of these websites or for any goods or facilities they supply or for the content of their websites and does not give or enter into any conditions, warranties or other terms or representations in relation to any of these or accept any liability in relation to any of these (including any liability arising out of any claim that the content of any external web site to which this web site includes a link infringes the intellectual property rights of any third party).

USE of APP

In case any facilities/services, access/dissemination of information or execution of transaction is done through use of any APP related to ABC Companies, the additional terms and conditions governing the Use of APP shall be applicable and to be read along these Terms of Use.

Postings and monitoring

The Facilities Provider or ABCL or ABC Companies does not routinely monitor your postings to the Website but reserves the right to do so if deemed necessary if it is related to the facilities offered on the web site and to comply with law. However, in our efforts to promote good citizenship within the internet community, if the Facilities Provider or ABCL or ABC Companies becomes aware of inappropriate use of the Website or any of its facilities, any information, opinions, advice or offers posted by any person or entity logged in to the Website or any of its associated sites is to be construed as public conversation only, and the Facilities Provider or ABC Companies shall not be liable or responsible for such public conversation. You agree that in such cases, we will respond in any way that, in our sole discretion, as deemed appropriate. You acknowledge that Facilities Provider or ABC Companies will have the right to report to law enforcement authorities any actions that may be considered illegal, as well as any information it receives of such illegal conduct. When requested, ABC Companies/Facilities Provider will co-operate fully with law enforcement agencies in any investigation of alleged illegal activity on the internet.

Submissions and unauthorized use of any Materials contained on this Website may violate copyright laws, trademark laws, the laws of privacy and publicity, certain communications statutes and regulations and other applicable laws and regulations. You alone are responsible for your actions or the actions of any person using your user name and/or password. As such, you shall indemnify and hold Facilities Provider, ABCL / ABC Companies and its officers, directors, employees, affiliates, agents, licensors, and business partners harmless from and against any and all loss, costs, damages, liabilities, and expenses (including attorneys' fees) incurred in relation to, arising from, or for the purpose of avoiding, any claim or demand from a third party that your use of the Website or the use of the Website by any person using your user name and/or password (including without limitation your participation in the posting areas or your submissions) violates any applicable law or regulation, or the rights of any third party.

We reserve the right to terminate access to this Website at any time and without notice. Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials.

If you come across any breaches/violation or offensive material you must report to us at abc.secretarial@adityabirla.com

Use of Cookies

You agree and understand that the Website will automatically receive and collect certain anonymous information in standard usage logs through the Web server, including computer/computer resource-identification information obtained from "cookies" sent to your browser from a web server or other means as explained in the Privacy Policy.  

Facilities Changes and Discontinuation

The Website reserves the right to discontinue or suspend, temporarily or permanently, the facilities. You agree that the Facilities Provider/ ABC Companies will not be liable to you in any manner whatsoever for any modification or discontinuance of the facilities. The format and content of this Website may change at any time. We may suspend the operation of this Website for support or maintenance work, in order to update the content or for any other reason.

ABCL, ABC Companies, and its directors, employees, associates, or other representatives shall not be liable for any damages or injury, arising out of or in connection with the use, or non-use including non-availability of the Website and also for any consequential loss or any damages caused because of non-performance of the system due to a computer virus, system failure, corruption of data, delay in operation or transmission, communication line failure, or any other reason whatsoever. The Website will not be responsible for any liability arising out of delay in providing any information on the Website.

Compliance with the Law

You agree that you will not:

  • Use any robot, spider, scraper, deep link or other similar automated data gathering or extraction tools, programme, algorithm or methodology to access, acquire, copy or monitor the Website, or any portion of the Website.
  • Use or attempt to use any engine, software, tool, agent, or other device or mechanism (including without limitation, browsers, spiders, robots, avatars or intelligent agents) to navigate or search the Website, other than the search engines generally available by third party web browsers
  • Post or transmit any file which contains viruses, worms, Trojan horses or any other contaminating or destructive features, or that otherwise interferes with the proper working of the Website or the facilities.
  • Attempt to decipher, decompile, disassemble, or reverse engineer any of the software, comprising or in any way making up a part of the Website or the facilities.
  • You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous (untrue and damaging to others), invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others.

Restrictions on Commercial Use or Resale

Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. Any feedback you provide will become the confidential and proprietary information of the Website, and you agree that the Website may use in any manner and without limitation, all comments, suggestions, complaints, and other feedback you provide relating to the Website. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.

No Endorsements

All product and facilities marks contained on or associated with the facilities that are not the Website marks are the trademarks of their respective owners. The Website would require you to respect the same. References to any such names, marks, products or facilities of third parties or hypertext links to third party sites or information does not imply the Website’s endorsement, sponsorship or recommendation of the third party, information, product or facilities.

Promotional Offers

You may receive from time to time, announcement about offers with intent to promote this Website and/or facilities/products of ABC Companies (“Promotional Offers”). The Promotional Offer(s) would always be governed by these Terms of Use plus certain additional terms and conditions, if any prescribed. The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion.

Charges for use of Website

There are no charges or fees to be paid by you for use of this Website. However, you are responsible for all telephone access fees and/or internet service fees that may be assessed by your telephone and/or internet service provider. You further agree to pay additional charges, if any levied by Third Party Service Provider(s), for the facilities provided by them through the Website (Additional Charges).

No Endorsement

You are advised to be cautious when browsing on the internet and to use good judgment and discretion when obtaining information or transmitting information. From this Website, users may visit or be directed to third party web sites. The Website makes no effort to review the content of these web sites, nor is the Website or its licensors responsible for the validity, legality, copyright compliance, or decency of the content contained in these sites.

In addition, the Website does not endorse or control the content of any other user and is not responsible or liable for any content, even though it could be unlawful, harassing, libelous, privacy invading, abusive, threatening, harmful, vulgar, obscene or otherwise objectionable, or that it infringes or may infringe upon the intellectual property or other rights of another. You acknowledge that the Website does not pre-screen content, but that the Website will have the right (but not the obligation) in their sole discretion to refuse, edit, move or remove any content that is available via the facilities.

Electronic Communications

These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form. Electronic communications may be posted on the Website and/or delivered to your registered email address, mobile phones etc either by Facilities Provider or ABC Companies with whom the services are availed. All communications in electronic format will be considered to be in "writing". Your consent to receive communications electronically is valid until you revoke your consent by notifying of your decision to do so. If you revoke your consent to receive communications electronically, the Facilities Provider shall have the right to terminate the facilities.

Assignment

You shall not assign your rights and obligations under this Agreement to any other party. The Website may assign or delegate its rights and/or obligations under this Agreement to any other party in future, directly or indirectly, or to an affiliated or group company.

Legal Disclaimers

The information provided on or through the Website is for general guidance and information purposes only and they do not in any manner indicate any assurance or opinion of any manner whatsoever. Any information may be prone to shortcomings, defects or inaccuracies due to technical reasons. Certain information on Website may be on the basis of our own appraisal of the applicable facts, law and regulations in force at the date hereof.

The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may therefore vary (significantly) from information obtained from other sources or other market participants. Any reference to past performance in the information should not be taken as an indication of future performance. The information is dependent on various assumptions, individual preferences and other factors and thus, results or analyses cannot be construed to be entirely accurate and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment or financial decision shall always be at your own discretion and based on your independent research; and nothing contained on the Website or in any information would construe ABCL/ABC Companies or any of its employees/authorized representative as having been in any way involved in your decision making process. Any information and commentaries provided on the Website are not meant to be an endorsement or offering of any stock or investment advice.

Nothing contained herein is to be construed as a recommendation to use any product, process, equipment or formulation, in conflict with any patent, or otherwise and Facilities Provider / ABCL/ABC Companies makes no representation or warranty, express or implied that, the use thereof will not infringe any patent, or otherwise. Information on this Website sourced from experts or third party service providers, which may also include reference to any ABCL Affiliate. However, any such information shall not be construed to represent that they belong or represent or are endorsed by the views of the Facilities Provider or ABC Companies. Any information provided or sourced from ABCL Affiliate belongs to them. ABCL is an independent entity and such information from any ABCL Affiliate are not in any manner intended or to be construed as being endorsed by ABCL or Facilities Provider. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever. Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. Investment in the securities market and any financial instruments are inherently risky and you shall always assume complete and full responsibility for the outcomes of all the financial or investment decisions that you make, including but not limited to loss of capital. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision.

No Solicitation

No Information at this Website shall constitute an invitation to invest in ABCL or any ABC Companies. These are meant for general information only or to meet statutory requirements or disclosures. ABCL or any of its employees are in no way liable for the use of the information by you, when making any decision or investing or trading through any investment vehicles or ABC Companies, or any other third party which may be engaged in offering of these services.

The information contained on this Website does not represent and should not be used to construe (i) the terms on which a new transaction would be entered into by ABCL or ABC Companies, (ii) the terms on which any existing transactions could be unwound by ABCL or ABC Companies, (iii) the calculation or estimate of an  amount that would be payable following an early termination of any past/existing transactions or (iv) the valuations given to any transactions by ABCL or ABC Companies in their books of account for financial reporting, credit or risk management purposes.

Statutory Disclosure

ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. You understand and acknowledge that Aditya Birla Money Limited (‘ABML’), Aditya Birla Finance Limited (‘ABFL’) and Aditya Birla Sun Life Asset Management Company Limited and trustees and sponsor of Aditya Birla Sun Life Mutual Fund (‘ABSLMF’) are group companies and ABML / ABFL also acts as a distributor of ABSLMF.  Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. You are free to choose the execution facilities in the manner deemed fit and proper and no commission will be paid by ABSLMF to ABML / ABFL if you choose to execute a transaction with ABSLMF on the Website, unless otherwise agreed by you and ABML/ABFL separately. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.

Similarly Aditya Birla Money Insurance Advisory Services Limited and Aditya Birla Insurance Brokers Limited are insurance intermediaries and engaged in the distribution of Insurance Products and it may services may include products of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Health Insurance Company Limited. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.

Force Majeure

The Facilities Provider, ABC Companies and any of its Third Party Service Providers shall not be liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond their reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, labour disputes, riots, insurrections, civil disturbances, shortages of labour or materials, fires, flood, storms, explosions, acts of God, war, earthquake, governmental actions, orders of domestic or foreign courts or tribunals, non-performance of third parties, or loss of or fluctuations in heat, light, or air conditioning.

Indemnification

You agree to protect and fully compensate Facilities Provider, ABCL, ABC Companies, subsidiaries, licensors, suppliers and facilities providers, employees, officers and directors, from any and all third party claims, liability, damages, expenses and costs (including but not limited to reasonable attorneys fees) caused by or arising from your use of the facilities, your violation of the Terms of Use or your infringement, or infringement by any other user of your account, of any intellectual property or other right of anyone.

No Waiver

The Facilities Provider, ABC Companies or any of its third party service providers and processor bank/merchants etc. shall not be deemed to have waived any of its/their rights or remedies hereunder, unless such waiver is in writing. No delay or omission on the part of Facilities Providers and ABC Companies, in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Exclusive Agreement

You agree that these Terms of Use are the complete and exclusive statement of agreement supersede any proposal or prior agreement, oral or written, and any other communications between you and the Facilities Provider and its Third Party Service Providers or processor bank/merchants relating to the subject matter of these Terms of Use. These Terms of Use, as the same may be amended from time to time, will prevail over any subsequent oral communications between you and the Website and/or the processor bank.

Termination

Either party can terminate this Agreement by notifying the other party in writing. Upon such termination You will not be able to use the facilities of this Website.

Governing Law and Jurisdiction

The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. The Website is specifically for users in the territory of India. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction.

These Terms and Conditions are governed by and to be interpreted in accordance with laws of India, without regard to the choice or conflicts of law provisions of any jurisdiction. You agree, in the event of any dispute arising in relation to these Terms and Conditions or any dispute arising in relation to the Website whether in contract or tort or otherwise, to submit to the jurisdiction of the courts located at Mumbai, India for the resolution of all such disputes.

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