As against the ambitious target of raising Rs40,000 crore from sale of shares of the state-owned enterprises, the government has so far raised a little over Rs1,144 crore by offloading stake in the Power Finance Corporation
Mumbai: The government on Monday indicated it may lower the Rs40,000 crore disinvestment target for the current fiscal in view of the recent bloodbath in the stock markets on account of global uncertainty, reports PTI.
"It is difficult to say, if the current target will remain intact or revised," disinvestment secretary Mohammed Haleem Khan told reporters here when asked if the government is contemplating to lower the disinvestment target for the current fiscal.
As against the ambitious target of raising Rs40,000 crore from sale of shares of the state-owned enterprises, the government has so far raised a little over Rs1,144 crore by offloading stake in the Power Finance Corporation.
Following the downgrade of sovereign credit rating of the US to AA+ from AAA by Standard and Poor's, the BSE Sensex plunged to below 17,000 mark during the intra-day trade before reducing losses.
"There are a few companies in the pipeline for disinvestment, but it is difficult to say when. We have a set of professional advisors to advise us on disinvestment," Mr Khan said, adding the government is monitoring the situation.
A senior official in the Disinvestment Department had earlier said that the government hopes to raise a little over Rs15,000 crore through share sale of PFC, SAIL, ONGC and HCL. PFC follow-on offer hit the market in May.
RINL, MMTC and NBCC were also on the government's radar for disinvestment but the current financial turmoil may prompt the government to postpone equity sale.
Last fiscal, the government had raised Rs22,763 crore from sale of equity in public sector enterprises against a target of Rs40,000 crore. It offloaded equity in SJVN, Engineers India, Coal India, PowerGrid, and Shipping Corporation of India.
The Indian stock market never made a prolonged bull run so far in the current fiscal in the wake of debt crisis in Europe, stubborn inflation within the country and a series of rate hikes by the Reserve Bank of India.
Sucheta Dalal (Trustee, Moneylife Foundation and Managing Editor, Moneylife magazine) warned students from falling for the lure of get-rich-quick schemes, while Debashis Basu (Trustee, Moneylife Foundation and Editor & Publisher, Moneylife) explained how one can make money over the long run by using the power of compounding
Moneylife Foundation conducted an exclusive workshop for the students of the Sadhana Centre for Management and Leadership Development, on Saturday, 30th July. Over 120 students attended this session from various academic disciplines offered by the management college.
The first session was on 'How to be Safe with Your Money' by Ms Sucheta Dalal, Trustee of Moneylife Foundation and Managing Editor of Moneylife magazine. Ms Dalal spoke on how investors should remain safe by avoiding pyramid schemes and multi-level marketing schemes.
"Any scheme that asks you to introduce two more investors to get extraordinary returns is avoidable," warned Ms Dalal.
Citing the examples of popular pyramid schemes such as Citi Limouzine, which duped gullible investors on the promise of exceptional returns, Ms Dalal explained how these schemes even target professionals such as lawyers, policemen and doctors to gain legitimacy. Their modus operandi is simple-they target people, pay them returns, then ensure that their target's friends and relatives start investing.
The second session was on 'How to be Smart with Your Money' by Mr Debashis Basu, Trustee of Moneylife Foundation and Editor & Publisher of Moneylife magazine. Mr Basu spoke on risk and returns of various investment options-from gold to bank deposits to real estate and equity.
Mr Basu described simple investment principles that can lead to substantial wealth creation over a long period of time. He explained how to invest smartly in equity schemes and stocks, and pointed out the merits of compounded interest over a long term. The key, he said, was to start early and with modest expectations and hold on for a long term.
Mr Basu explained the power of compounding and how regular saving and re-investing of the money saved can give substantial gains over the long term. But the key is to start early, save regularly, remain invested and ensure that there are no losses or gaps during any year, cautioned Mr Basu.
He also emphasised on the need to select a few key products that will cover the bulk of one's financial needs and not give in to the temptation of trying to make easy money without adequate knowledge of speculative products-usually derivatives, which are meant for professional traders.
The card will be offered to eligible salary account holders of IDBI Bank
Public sector bank IDBI Bank has launched a unique offering, IDBI Magic Card. It encompasses the features of a debit card with a credit limit, that charges much less than a regular credit card.
The card will be offered to eligible salary account holders of IDBI Bank and the credit limit would be a multiple of the monthly salary earned by the card holder. There is no processing fee for the card, neither any charges for cash withdrawal, with a daily limit of Rs50,000 from any bank ATM or purchase transaction. There would also be loyalty points for amount spent for purchases and insurance cover for lost/stolen/counterfeit cards etc. The card is expected to be a game changer in the market of cards.