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China makes rules to check online payment risks
China's central bank released detailed regulations for online payment services by non-bank institutions in the latest effort to contain possible risks in the booming internet finance industry.
 
The new rules issued on Monday require real-name registration for all non-bank payment accounts and classifies them into three categories depending on the security levels, the Global Times reported on Tuesday. 
 
The size of payments allowed through such accounts will then range from 1,000 yuan ($155) to 200,000 yuan per year. 
 
Transactions through banking payment platforms would not be restricted by the regulation, the central bank said. 
 
The aim of the policy is partly to avoid large sums of money being deposited in third-party payment accounts, which are beyond the protection of bank deposit insurance and will leave consumers vulnerable to possible risks. 
 
Since the creation of Alibaba's Alipay, China's third-party payment industry has expanded rapidly. In the first three quarters of 2015, payment institutions' online transaction volume totalled 32.97 trillion yuan, surging 98.8 percent year on year. 
 
In addition to limiting the size of transactions, the new regulation also bans payment institutions from opening accounts for firms engaged in financial businesses. 
 
The new policy will come into effect from July 1, 2016.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article. 

 

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Turnaround belied for realty, recovery likely to be slow
The realty sector reeled under fund crunch that has proved to be its biggest bane over the last few years
 
The hopes of an early turnaround of the beleaguered real estate sector, kindled by the installation of a stable, reform-oriented government headed by Prime Minister Narendra Modi, were belied in 2015.
 
The fund-starved sector continued to be bogged down by weak demand and muted sales. As the year draws to a close, Despite some signs of revival, the delayed reforms continues to take a toll on the business sentiment, and it may take long before the sector gets stabilised with healthy long-term sustainable growth.
 
The realty sector reeled under fund crunch that has proved to be its biggest bane over the last few years.
 
According to Crisil, India's top 25 developers, making up for 95 percent of the sector's capitalisation, face the risk of refinancing Rs.3,000 crore ($452 million) of debt.
 
These fund woes, besides delayed regulatory permissions, were responsible for large scale project delays and resultant cost escalations, badly affecting the sentiment of property buyers and investors.
 
Similarly, Liases Foras said out of the total space of 3.2 billion square feet under construction across 25 cities, about 34 percent of the space valued at Rs.165,064 crore (1.32 percent of GDP) was delayed by over a year.
 
In this grim backdrop, the year saw the rise of a cautious and discerning buyer taking a backseat in the property market, largely concerned about the safety of his investment.
 
Even the investors -- disillusioned and dejected by the stuck investments and falling returns -- withdrew from the market. 
 
So much so that even the luring marketing schemes like subsidised home loans, EMI waiver till possession and other discounts on registration, car parking and club fee offered through the year, failed to entice buyers.
 
The demand-supply mismatch further gave upper hand to buyers and investors.
 
On the investment front, it was a year of record inflow of foreign direct and and private equity investments, with the investments by the latter touching a record high of $14 billion till October, 2015.
 
Funding to income yielding office segment also surpassed residential real estate. In 2016, too, commercial and residential in top seven cities, is expected to continue getting major private equity funding, while retail will gain traction.
 
Amid large-scale delivery defaults, slow sales and huge unsold inventory, residential real estate like last year, remained in the slow lane.
 
Luxury real estate was badly hit, though affordable housing segment gained some ground. 
 
There were however some green shoots especially in cities like Mumbai, Bengaluru, Hyderabad. The year 2016 may however see some revival, with greater impetus to low- cost housing. 
 
On the retail real estate front, it was a no-show with hardly any quality retail space added to the stock. Though no significant quality mall space is expected to be added next year, we may yet see the positive trend of emerging Tier II aNd Tier III markets.
 
There was a big boost to office space absorption of 3.5 million square feet, the second highest after 2011, with rise in rents across cities, especially in certain segments in in Tier I cities. The year 2016 is expected to see consistent increase in demand driven by IT/ITES, like this year.
 
As regards reforms, Ot was a year of mixed fortunes for realty industry. For the fund- starved sector, there was a foreign equity bonanza, waiver of entry and exit barriers, raising of approval limit for the Foreign Investment Promotion Board limit from Rs.3,000 crore to to Rs.5,000 crore, doing away with area restrictions of 20,000 square meters and capitalisation of $5 million, besides allowing investment repatriation before project completion with three-year lock-in.
 
The government also fast-tracked environmental clearances. However, key reforms like bills on real estate regulator, pan-India goods and services tax regime and arbitration, and policy measures like single window clearance to check delays and price escalation, and ensuring ease of doing business, got stalled, leading to dip in business sentiment.
 
The first full-fledged budget of the Modi government also failed to provide necessary fillip. 
 
Except for a couple of good initiatives like making realty investment trusts viable with provision of pass through tax for investments and rationalisation of tax gains, and allowing foreign investments in alternate investment funds, it failed to address the core issue of increasing affordability and supply of low-cost housing.
 
In a further setback, the budget, instead of removing service tax on affordable housing, hiked it from 12.36 percent to 14 percent, besides marginally raising excise duty.
 
As property buyers increasingly demand value housing, timely project execution and right quality with right pricing hold key to revival of real estate.
 
With the government focusing on reforms like Real Estate Regulation, GST and Arbitration Acts,aimed at strengthening sector fundamentals instead of offering sops, the new year will provide the much needed push to realty. A series of policy measures for catalysing business and investments like progressive and predictable tax regime, rationalisation of labour laws and single window clearance for ease of doing business are underway. 
 
And with further drop in interest rates and rise in uffice rentals in the coming months, the year 2016 may herald a new era for retail investors. 
 
On the mortgage reforms front, apart from further cuts in interest rates, RBI's proposed reduction in minimum risk weightage on individual housing loans for low-cost homes, will boost affordable housing which is key to real estate revival.
 
With commercial real estate set to gain further momentum, real estate sector is headed for a well- regulated, transparent and consolidation phase with healthy and sustained growth over medium to long term.
 
Realty Highlights for 2015
 
*Record PE investments of Rs.18,300 crore in first three quarters of 2015.
 
* RBI liberalise FDI and ECB norms
 
*Rise of property portals with emerging trend of online home sales
 
*Entry of institutional investors in retail real estate
 
* Corporate land deals pick up in sluggish real estate market
 
* Shift from investments in physical to financial assets.
 
* Crucial reform bills like Land Acquistion Bill, Real Estate Regulation Bill, GST Bill, Arbitration Bills stuck in parliament.
 
* REITs fail to take off due to unfavourable realty tax regime.
 
* Not a single IPO launched
 
*Slump in new project launches
 
* High demand for ready-to-move homes while under-construction homes take a beating due to high delivery defaults
 
* Real Estate Sentiment Index dips
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article. 

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COMMENTS

manoharlalsharma

11 months ago

there is no crunch of money but it is in CASH and whatever is collected by cheque from client r paid as TAXES on over treading or playing with consumer.

Modi starts trend in year 'Indianness' found feet in men's fashion
Several fashion events plugged the gap between women and men's fashion
 
Prime Minister Narendra Modi's sartorial taste continued to create waves as multiple designers made a splash in the growing segment of menswear and 2015 turned out to be a year for the style-conscious male to rejoice.
 
Modi's style statements - from the US to China - have been inspiring many men, says designer Troy Costa, who was roped in to create some outfits for the PM last year.
 
"He's a leader. People are getting inspired by what he is wearing. He has started a trend of his own," Costa told IANS, referring to Modi's jackets which he has made popular globally by flaunting them during international visits.
 
Designer Raghvendra Rathore said that Modi "has opened up the walls of the mind of the youth".
 
"I don't believe in this or that party. I believe that the most important thing is to unlock the imagination of the youth. He has done that by creating an appetite for what I think is the Indian look...11 years from now, we will remember this day. It's like a Renaissance of a sort.
 
"It is about reaching out to weavers and using our resources. It's the revival of classic clothing. Why do we always need a three-button suit or a tuxedo when we can do a good job with a bandhgala jacket," Rathore, known for the iconic Jodhpur style Bandhgala suits, told IANS.
 
Several fashion events plugged the gap between women and men's fashion. Even the country's fashion galas this year gave a push to the booming menswear segment, which saw experiments with cuts and colours. 
 
Joining the wagon was renowned designer Manish Malhotra, who has completed 25 years as a costume designer and 10 years of his label. He showcased his debut menswear line titled 'The Gentlemen's Club' at a fashion week in Mumbai in August.
 
The collection had suits and jackets in abundance with embroidery and intricate detailing, and much more.
 
Actor-comedian Vir Das surprisingly displayed another creative side by showcasing his debut collection as a designer on the runway this year. He launched a quirky clothing line under his company Weirdass Comedy. There were also boxer shorts, which Vir had conceptualised himself. He even created T-shirts dedicated to Bollywood's star comedian Govinda.
 
Later this year, Gionee India Beach Fashion Week (GIBFW) 2015 soared the temperature of Goa with bikinis and bold resort wear for women. But it was the menswear that stole the show. Ace designers including Wendell Rodricks offered more options for men through their collections that consisted of bright coloured swimming trunks, shirts with lungis and sherwanis with palazzo pants.
 
Popular magazine for men GQ India and Van Heusen, a premium lifestyle brand for professionals, commemorated the best of menswear in India through an event - Van Heusen + GQ Fashion Nights. It saw designers like Raghavendra Rathore, Rajesh Pratap Singh and Shantanu & Nikhil -- who are set to launch a menswear store in Kolkata soon, showcasing trends that are sophisticated and sharp, catering proficiently to the urban Indian men.
 
Delhi hosted L'Homme, Men's Weekend, which was first launched in 2013, and introduced a fashion show exclusively for men, in December.
 
"With a lack of men-centric activations in the country today wherein all major activations are targeted towards women like Amazon India Fashion Week and wedding shows, we at DLF Emporio, aimed to plug-in this gap by growing our brand property L'Homme with men's fashion show that highlighted DLF Emporio as one stop destination for menswear from international and Indian luxury brands," said Dinaz Madhukar, senior vice-president, DLF Emporio.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article. 

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