Citizens' Issues
Is AAP Delhi water formula full of leaks?

The people of Delhi may be in for a rude shock, following the new water pricing formula of AAP. They may have to shell-out 2-3 times more. Where meters are faulty, cost will be even higher

The Aam Aadmi Party (AAP) has delivered on its electoral promise of providing 700 litres of free water per day per household even before they have proven their majority in the legislature. However, putting aside questions of political morality, no analysis of probable impact of this move on households and on fiscal health of the government, has been released by AAP so far. How genuine is the promise of free water? Could it be that the water bills are set to actually rise for a large number of people?


AAP claims to have pioneered the concept of “lifeline water” in India by promising minimum quantity of water required for survival. But how does the economics of water work in practice in Delhi as against what has been claimed conceptually?  How does it impact household budgets? What probable behavioural changes could be expected from different sections of Delhi population because of this measure? Is it a subsidy for the poor or the middle class? Here is the reality.


There are three major components of water charge that is billed to domestic consumers (Category 1) in Delhi. (There are two more categories of consumers, residential with mixed commercial use (Category 1A) and commercial and industrial use (Category II) but we have kept them out of our analysis as subsidy is not applicable to them.)

  • Metered water consumption: Divided into four slabs with progressively higher rates
  • Sewerage maintenance charges: Levied at 60% of price for metered water consumption
  • Fixed service charges: Levied based on slab under which your metered water consumption falls

There are two more components -- water cess charge and meter rent of Delhi Jal Board (DJB) which is negligible and hence not considered in this analysis.

The four slabs with progressively higher rates for each slab for both metered water consumption and fixed service charge are given in Table 1.1


Table 1.1

Consumption  per month

Old Rates

Fixed charges

1-10 KL



10-20 KL



20-30 KL



30-above KL



1 KL = 1,000 litres


Now, the AAP government has made consumption within first two slabs free of cost and increased rates for both metered water consumption and fixed service charge by 10% as per this ET report. Additionally, consumption beyond 20 KL in a month would be chargeable in full and it is implied in this report that such calculation would be on the basis of higher slab rates. The new rate brought in force by AAP is given in Table 1.2


Table 1.2

Consumption  per month

New Rates

Fixed charges

1-10 KL



10-20 KL



20-30 KL



30-above KL



    1 KL = 1,000 litres


So, how does water billing change at different consumption points for Delhi households? Below is the table (Table 1.3) and graph (Graph 1.1) for comparison. Also, DJB claims to incur a cost of Rs28 per KL including sewerage maintenance cost for supplying water.


Table 1.3

S No             

Consumption per month (In KL)

Billing Amount (Old Rate)

Billing Amount (New Rate)

Additional burden due to new rates

Increase in Billing

























































































































What are the conclusions from this chart?

  1. Earlier there was a gradual increase in prices as you consume more. Now, there is a steep incline at 21 KL consumption due to a massive combined effect of free water till 20 KL, higher applicable slabs and increase in rates above 20 KL
  2. Marginal rate for consumption even slightly above 20 KL per month is severely high compared to earlier rates, an incredible Rs871 against Rs308 earlier!
  3. Consumers in the 20-30 KL slab get the worst deal and would have to pay 200%-300% times more!
  4. Against principles of fairness, cost for higher category consumers (>30 KL per month) will be less steeper as their bills would go up by 30%-80%

Faulty Meters

Apart from the steep hike, there is an additional problem of fast meters that many in Delhi complain about. We have monitored our meter for past three days and found it to be running faster by 25%-40% (showing a gain of 1.25 to 1.4 KL for filling a water tank of 1,000 litre). Any evidence for such faulty meters is largely anecdotal and a systematic study is required to establish it as a fact. However, complaints of fast-running faulty meter are widespread. If we assume it to be a factor, then actual consumption would have to be limited to less than 500 litres per day to take advantage of new tariff structure. Suspicion about faulty meters will get combined with incentive to stay below the punitive consumption threshold. This will force consumers into adopting means that are totally against the principle and philosophy of AAP. Talk of unintended consequences!


Over the course of the next few months, all this will get clearer to Delhi citizens. How will it impact the different consumer classes and what impact it may have on their behaviour?

  1. The middle class in Delhi, who have placed high hopes on AAP due to its clean image, would be in for a rude shock. Any additional gain they expected may not be realised and they may actually have to shell-out 2-3 times more.
  2. Those who can limit their consumption to 20 KL per month do not pay anything and get the best deal. However, if they fail to do so in even one billing cycle, their entire gains would be wiped out and they may have to shell-out some additional money (DJB seems to be settling into a 3-month billing cycle so we have assumed four bills in a year) due to steep incline at 21 KL consumption level. A lower-income category household of up to 5 persons can be expected to limit their consumption within the free water limit and gain from this scenario. However, excess consumption due to extraneous factors (festival consumption, water coolers use in summers, temporary increase in household number due to guests) in even one billing cycle would prove very costly.
  3. DJB allows households to install their own meters which can be sourced from certified manufacturers. But all kinds of water meters are available in the market which can be easily registered with DJB. Of course, it’s entirely possible that model citizens of Delhi would display exemplary behaviour and actually get down to learning about water conservation! And in the case of deviation, the gargantuan bureaucracy planned by AAP that goes by the name of Jan Lokpal would be at hand to take care of the enforcement problem! 
  4. Even assuming that 40%-50% households would be able to limit their consumption and gain from new tariff structure, their gains would be Rs218 per month at the most. However, it does not bear out that such gains are so substantial even for lowest income category that it has become a calling card for AAP. The minimum wage in Delhi for unskilled category is Rs8,086 per month and Rs218 per month for water was a sensible tariff to charge.

As far as fiscal health of DJB is concerned, in the earlier tariff structure, DJB was giving a subsidy of Rs17-18 per KL up to 20 KL per month consumption and was recovering full cost for consumption between 20-30 KL and making a profit of ~40% on consumption beyond 30 KL. In the new tariff structure, DJB would be providing subsidy of Rs28 per KL up to 20 KL per month consumption and would not be able to recover any part of the cost, but would make profit of  ~30% for consumption between 20-30 KL and super-profit of ~50% for consumption beyond 30 KL. Additionally, rate increase is expected across-the-board so billing for other two categories of consumers would also be higher so it may be possible that the new tariff structure actually bring additional revenues to DJB. (The ET report suggests that DJB officials expect a subsidy of Rs160 crore annually. However, this is not clear as household data for water consumption in Delhi is not available in public domain)


This policy definitely does not address concerns like water for all, assured supply, good quality, developing long-term sources as Delhi ‘imports’ 80% of its water from other states, cleaning river Yamuna, dual supply lines for potable and non-potable water, metering all connections, tackling tanker mafia, reducing distribution losses for long-term sustainable water availability and supply. Instead, AAP has taken the easy route to gain political mileage. Strangely, price of water was hardly an issue in Delhi (price of electricity was definitely an electoral issue). This move is of a piece whereby a supposed benefit has been provided to half of Delhi which was not asked for but would create a legacy that may be replicated elsewhere and would be difficult to eradicate in near future.


Another calling card of AAP, which has generated even more interest and debate, is their promise to reduce electricity rates by 50%. Given that electricity pricing, unlike water pricing, is not entirely in the hands of the Government of Delhi, AAP may want to replicate the same model for new power tariff structure as well. However, sensitivity to electricity bills is quite high in Delhi and any such move to cross-subsidise part of the population may have negative consequences


New water tariff structure has been approved for the period Jan-Mar 2014. The bills, therefore, would start hitting households in the month of April and would provide quite a shock just in time for parliamentary elections and a possible re-election in Delhi. AAP would be well-advised to re-think the tariff structure and at least continue with the earlier rates for 0-10 KL and 10-20 KL slabs for billing of consumption beyond 20 KL. Otherwise, the most vociferous backers of AAP, the middle class and young, may not be available to vote for AAP six months down the line.


(Vivek Khaitan is an MBA from IIM Calcutta and is working as a management consultant for past five years in New Delhi)



T Sekhar

3 years ago

Mr. Vivek,

AAP has been in power for only a week. They will streamline all the above issues in due course. There is nothing wrong in taxing the rich (all of us are paying through our nose now for LPG, petrol etc. - isn't it?), who have wasted public money earlier while in power, collecting only 40% of the water bills! People would now take more care to ensure that they have properly working meters, and Govt. staff who do not co-operate will be taken to task by the Delhi Govt. quickly.

It is better if you post these issues in the AAP site for quicker attention. Pl. see the following video if you have missed out seeing it earlier, to know how Delhi Jal Nigam worked earlier: https://


3 years ago

Vivek, I am still awaiting your response to your comment where you said - "The methodology of calculation" is also changing...


3 years ago

Vivek, you need to first explain how did you get this calculation of 100% increase.
If the slab rates change only by less than Rs. 3, how did you manage to project such a huge increase. What additional subsidy has been considered in Old rate calculation? And what additional costs for New rate calculation?
Is it a hoax to undermine AAP's policy impact?


Abhijit Gosavi

In Reply to kritika 3 years ago

Boy, how many times do you expect the author to explain? :(

Nothing wrong in some objective questioning, but go the extra mile with some individual effort (read all comments & use a calculator) --- before calling something a hoax in a public comment :(


PS: I have also explained some calculations in my own comments, but I sat with EXCEL. And although pricing is a research area for me, I had never seen such a scheme for water before.


3 years ago

good points to ponder. it is definitely wrong to increase the
bill of 20kl to 30kl range by more than 100%.
but that does not negate the need for supplying free water and if possible free power to those who can not afford the cost.
may be aap will rework the rates to redistribute the subsidy burden which should not be very difficult.
or decide to meet the subsidy from the tax funds.
either way it should not be such a big issue to warrant reconsideration of the free water promise.
as rightly pointed out in this article, aap should find time and expertise to reduce the cost and avoid waste. not only in water and power but also in all the segments of governance. which should not be difficult given the sincerity of aap leaders and involvement of the people


3 years ago

This is just another biased article. There are many facts, which have not been considered.

I wish that the author had shown the same sincerity to point out mistakes in previous government's policies.


shadi katyal

In Reply to rohit 3 years ago

The previous Govt did not give free water.
If you have any facts different than this please enlighten us.

shadi katyal

3 years ago

It is evident that only way to get elected is to buy voters with this kind of figure juggling. Now when the populism has become part of elections, why not let the nation flow down with such shenanigan.
Kejriwal is no different than other politicians and he wants perks and power.We saw how he accepted the house and after people criticized he is willing to give it up.
Some one should write about his background.

Sandeep Chowdary

3 years ago

Agree that DJB might make more money now than earlier with the new tariff kicking in.

From the consumer stand point, I believe this will help in water conservation especially by those families who would like to avoid the financial burden due crossing the 20KL, and for those who dont mind the large marginal increase, they will pay more due to the usage.

Also on the 50% reduction in power tariff. While this can be perceived as a populist move, it could very well be a valid number, given the example of what price Gujarat Govt could procure power for, if they wouldnt have opted for taking power from Adani Group for twice the rate.
Another key component of power tariff is cost due to power theft, which was not reduced due to the corruption. Fixing this also would contribute to Power tariff reduction.


3 years ago

Our leaders are short sighted and Kejriwal is no exception. How long would they cheat people with these freebies.


T Sekhar

In Reply to SATTI RAJU DUMPALA 3 years ago

I do not understand how Kejriwal is taken as short-sighted. Pl. see the following link for more on how AAP decided on this equitable re-allocation of water of Delhi:


Ashok Aggarwal

3 years ago

The Article is misleading. It is not correct that if a consumer uses more than 20 kl/month, he/she pays for the entire consumption @slab rate of 20-30 kl. it is evident from the press statement as below:

Those consuming more than 20,000 litres per month xwill need to foot the full bill according to the hiked tariff of 10%, also applicable from January 1.

The author should verify facts and correct his post.


Vivek Khaitan

In Reply to Ashok Aggarwal 3 years ago

This reply is for all those who are doubting calculations and its basis.

As I have said in the article, the basis for the assumption is the news reports (hyperlinked in the article) after DJB press conference which implies that consumption beyond 20 KL would be charged at higher slab and not in respective consumption slabs as was the case earlier. Lots of people have already checked the calculations and found it to be absolutely correct. Please read full comments section for that esp. the exchange between me, Abhijeet Gosavi and Amitabh Kumar

The other thing, about getting the clarification on exact calculation method from govt or DJB, unless you write about such things, you don't get clarification. The purpose of this piece is to get that clarification. Otherwise, bills would start hitting in April 2014 without anybody being wiser about it. If indeed no new calculation method is proposed, a clarification needs to be issued


3 years ago

Hi Vivek, In one of your replies you mentioned - "There is a new method of calculation too, no slab-wise calculation like earlier but all consumption between 20-30 KL would be charged at 20-30 KL slab rates which is 6-9 times higher than first 2 slabs so the effect of exponential increase"

Can you please confirm the source of this because this is the inherent assumption in your calculations?


3 years ago

25 Kl will be charged 19.97 per KL (Table 1.2)
bill will be (19.97x25=499.25) +fixed surcharge + sever charges
( for 21KL fixed charge=199.65 table 1.2)
499.25+199.65 =698.9

now 60% of 499 is severage chages which will also add to bill
60% of 419.02 is 299.55

now total= bill + severage charges (which is 60% of bill)
= 499.25+199.65+299.55
= 998.45

where as in old bill it is
424Rs I think it is straight 50% rise in bill

the article seems to be legitimately right and Delhi Jal Board press release does not says any thing about these calculations

and most of the people on AAP group or other places are doubting this article saying that author has assumed that if someone is using even 1 litre extra than 20K then he will have to pay full , I do not know what is an answer to that,except I learnt at some places that it is done to save water but what about tenants who live at the mercy of land lords



In Reply to abhishek 3 years ago

Please do the same calculation useing the old rates it comes to 907.5

Increase is only 10%. The basis of the article is not correct.


3 years ago

Use less water - period!
Save natural resources which are anyways not abundant - whichever govt rules - nature rules over us all - What we NEED is <500 Litres - rest are wants


3 years ago

The whole basis of this article which is the table 1.3 is wrong. It needs to be corrected. 60% charge not applied properly on he old rates section.


3 years ago

Why is 60% charge(Sewerage maintenance charges) not added in the old bill table BUT added in the new Bill table. Is it not applicable?

Calculations need to be correct. Approx increase is 10%. Max to 11%.

Quantum MF head, Ajit Dayal, hits out at HDFC MF

Ajit Dayal, founder, Quantum Asset Managers, has lashed out against the market practices of HDFC Mutual Fund and other large players

Recently, HDFC Mutual Fund took over the assets of Morgan Stanley Mutual Fund. While the reaction of various mutual fund heads was hardly worth noting, Ajit Dayal, founder of Quantum Asset Management, a small but top-performing mutual fund has hit out at HDFC MF and other large players. In a weekly opinion letter called The Honest Truth, he ranted: “As much as I like HDFC as a company, I continue to be amazed why it tolerates the business practices of its affiliate, HDFC Mutual Fund. While HDFC is reputed for setting higher standards in the home lending business, HDFC Mutual Fund - and most of the other fund houses in this "business" of mutual funds - cannot claim any such distinction.”

Dayal points out that “HDFC Mutual Fund and its representatives have been involved with various committees of AMFI - the association of the people who run mutual funds - and have had ample opportunity to build something of immense value for India's retail investors. Yet, HDFC Mutual Fund, which - in my opinion - sponges off the immense goodwill of the HDFC brand name, has been a party to practices that hurt retail investors and protect the franchise of the business houses that control the mutual fund industry.”

According to Dayal, HDFC Mutual Fund, with the brand of HDFC behind it, “should be aiming to lead the charge of higher standards, better business practices, and more competition. It is, after all, a "leader". But don't hold your breath for this. Reading the chairman of HDFC Group, Mr Deepak Parekh's recent comment about a need for "consolidation" in the industry and the view that India has too many mutual fund houses shows the complete lack of understanding of our profession…But it does show the naked desire to convert a profession into a business: a "business person" wants less competition, a "business person" wants less disclosure, and a "business person" wants growth at any cost. A professional is trained to honour the contract with a client and look after the clients' best interest.”

Dayal argues that “Fund managers are professionals: most have rapidly and willingly been converted into doormats for the CEOs who run the mutual fund business. Doctors are professionals: they are now being made part of the profitability chain of diagnostic centres and hospitals via undisclosed commissions for recommending unnecessary tests. The mutual fund industry had endorsed this methodology. The distributor is king and the Indian retail investor has been the sacrificial offering at the slaughter house. Hail the CEOs and their focus on growing Assets under Management! Hail the Fund Managers who pretend that their only job is to manage the investments and turn a blind eye to how the assets were collected or how many lives have been decimated from suspect practices. Their intellectual superiority would make the MBA schools they graduated from proud of their achievements. "Ethics in Business" was a course they probably skipped.”

This is not the first time the founder of Quantum Mutual Fund has lashed out on HDFC Mutual Fund. Earlier in the year he called HDFC MF as part of a racket in the mutual fund business which has focused on gathering assets and figuring out ways to ensure that the payment of commissions to distributors is never compromised. (Read: Ajit Dayal, founder of Quantum MF, lashes out at HDFC MF)

Dayal’s letter of 30th December says “Rather than fighting for a disclosure of the distribution costs - which comes from the pocket of the retail investor - the fund houses have supported the efforts of AMFI to work for the benefit of distributors and reinstate high, and opaque, commissions. There has been no public voice of persistent dissent by the leadership of HDFC Mutual Fund or any of the "leading" fund houses.”

The mutual fund industry lobby is Association of Mutual Funds of India. According to Dayal, AMFI is known to be biased to a few large players. In the past, the larger mutual funds that effectively controls AMFI have been instrumental in endlessly postponing the decision on trail commission, had made a last-ditch effort to preserve the status quo, presumably because large commercial interests were involved. (Read: Foot-dragging on trail commission raises stink of commercial interests). Even recently, the efforts of small distributors to promote trail commissions and scrap upfront commissions have gone in vain as last year AMFI scrapped the plan to ban upfront commission. High upfront commissions lead to the practice of excessive churning by unscrupulous mutual fund distributors in order to earn themselves a higher commission. This practice of fund houses offering a higher upfront commission and lower trail commission is detrimental to many honest distributors who promote investing in mutual funds for the long-term. Only large fund houses can afford paying high upfront commissions to promote their schemes.

Dayal further lashes out at large fund houses like HDFC MF saying, “Rather than using their position as a leader in the mutual fund industry to force the industry to adopt better disclosure standards on portfolio turnover, payment to brokers as commissions, payment to investment professionals and senior managements, the opaque practices of limited reporting carry on. Similarly, the recent attempt by SEBI to raise the minimum net worth to run a mutual fund "business" from the existing Rs10 crore to Rs25 crore smacks of a bad policy influenced by a desire to have a closed club of limited members.”

Towards the end of the post, Mr Dayal states that, “Sadly, the chapters of the persistent battering of the Indian retail investor will continue to be written. And it is a shame that "leading" mutual fund groups like HDFC Mutual Fund and their well-respected Chairman - who are in prominent positions of leadership or are respected because they carry the HDFC tag on their visiting cards - continue to perpetrate this sorry state of affairs: whether by design or by sheer ignorance.”




3 years ago

Mr. Dayal's thinking is restricted to T-15 cities and HNIs only. He is a frustrated person managing a meager AUM. The fact remains that Mutual Funds with 4-5% penetration in the country can not afford the views of Mr. Dayal. He has done nothing to spread awareness and financial literacy among the masses/ retail investors beyond T-15 and simply preferred to eye only the elite class of investors IN T-15. He has got no right to preach the other fund houses. If he is really favouring the investors, he should first attempt to work for financial literacy in B-15 and remote areas. After all T-15 only is not INDIA, it is beyond T-15 also.



In Reply to tewarisurendra 3 years ago

Lack of desired results clearly point towards exaggerated expectations from Financial literacy programmes.

However, forced spending on financial literacy programmes have ended up creating perverse incentives for rent-seeking agencies under the pretext of financial literacy.


3 years ago

Mr. Dayal's thinking is restricted to T-15 cities and HNIs only. He is a frustrated person managing a meager AUM. The fact remains that Mutual Funds with 4-5% penetration in the country can not afford the views of Mr. Dayal. He has done nothing to spread awareness and financial literacy among the masses/ retail investors beyond T-15 and simply preferred to eye only the elite class of investors IN T-15. He has got no right to preach the other fund houses. If he is really favouring the investors, he should first attempt to work for financial literacy in B-15 and remote areas. After all T-15 only is not INDIA, it is beyond T-15 also.


3 years ago

Mr. Dayal's thinking is restricted to T-15 cities and HNIs only. He is a frustrated person managing a meager AUM. The fact remains that Mutual Funds with 4-5% penetration in the country can not afford the views of Mr. Dayal. He has done nothing to spread awareness and financial literacy among the masses/ retail investors beyond T-15 and simply preferred to eye only the elite class of investors IN T-15. He has got no right to preach the other fund houses. If he is really favouring the investors, he should first attempt to work for financial literacy in B-15 and remote areas. After all T-15 only is not INDIA, it is beyond T-15 also.


3 years ago

Mr. Dayal's thinking is restricted to T-15 cities and HNIs only. He is a frustrated person managing a meager AUM. The fact remains that Mutual Funds with 4-5% penetration in the country can not afford the views of Mr. Dayal. He has done nothing to spread awareness and financial literacy among the masses/ retail investors beyond T-15 and simply preferred to eye only the elite class of investors IN T-15. He has got no right to preach the other fund houses. If he is really favouring the investors, he should first attempt to work for financial literacy in B-15 and remote areas. After all T-15 only is not INDIA, it is beyond T-15 also.

Anand Doctor

3 years ago

There is a very simple solution for the investors and honest financial advisors - Skip the commission game; go for 'Direct' plans of mutual funds.
Investors: Find an honest advisor who is ready to work for a fee instead of commission and invest in direct plans as advised by him. Yes, pay a fee. It's cheaper than the results of bad/no advice!
Advisors: Offer the client a fee option and guide them on managing direct plans.



In Reply to Anand Doctor 3 years ago

Even more simpler solution would be for investors to skip advisors and go for the direct plan.

And for advisors to skip advising investors and focus on their own investments.

Why bother about wasting time on a meaningless exercise?

Anand Doctor

In Reply to Nilesh KAMERKAR 3 years ago

Dear Mr. Kamerkar, a lot of investors need guidance for even the most basic aspects of investments and financial planning. Even most HNIs with portfolios in crores of crores have many knowledge and behavioral areas where they need professional help.
Sometimes, it takes people years to even realise that they could have avoided costly mistakes or done much better with a bit of sound advice.
I would go so far as to say that even advisors need to take help from other advisors to understand their own blind spots.
However, to each his own! So feel free to disagree with everything I've written here.
Wish you a healthy financial life!


In Reply to Anand Doctor 3 years ago

Where investors do not seem to get enough value and advisers fail to get their fair share of remuneration. . . Why get involved in such a transaction?

Anand Doctor

In Reply to Anand Doctor 3 years ago

Investors can also read this article for simple and easy financial planning:

Sam Koshy

3 years ago

Even though Mr Dayal said the truth, there arise a doubt that what prompted him to say this now. Everyone knows that Quantum Mutual Fund do not entertain distributors for their product, so what is his intentions behind this saying now which he seems supporting honest &small distributors. Is there a row inside the AMFI?


Suiketu Shah

In Reply to Sam Koshy 3 years ago

Quantum is clearly very unpopular among distributors as they donot encourage them and rightly so.Most MF distributors are just out to fool customers into MF which give highest commission ot them.Beyond that ,not sure what the reason is but it is true Quantum MF has performed far better than HDFC MF last 2 yrs by quite a margin.

Suiketu Shah

3 years ago

Dayal's MF Quantum has performed far better than HDFC's last 1-2 yrs and he had every right to hit out.However his recommendation on equitymaster are below average.


3 years ago

i don't understand the value added in this 'report' - one could have just given a link to the article published by Ajit instead of the kind of amateurish job done...


3 years ago

Very well written, kudos to Mr Dayal for bringing the truth to the forth. I have been advocating that under performing schemes should not be allowed to charge any Management fees and the same has fallen on deaf ears.Giants like HDFC MF instead of creating a level playing field in the Industry are able to bend the rules to their advantage. 2008 RBI Credit Window when in liquidity crisis, Front running by their staff these are few misdeeds which never got highlighted. AMFI is a cotrie of top few MF players where Committees work to interpret regulations suiting their requirement.


3 years ago

Not only HDFC MF but HDFC Life Insurance also not living up to the expectations of investors what HDFC as a brand is expected of.HDFC AMC boasts of most profitable AMC whereas there leading equity schemes like HDFC Equity Fund giving below average returns,reasons must be what Mr.Dayal has disclosed in above article.Practices at HDFC life are welkwown.

R Balakrishnan

3 years ago

AMFI has always been a club for the big funds to shut out the small ones. the nexus between distributors, CEOs and CMOs is too deep and will not fall off easily. There is a lot of personal things at some one else's cost that goes on.
The important thing is to remove the distinction between PMS and MFs. That can be done by taxing the MFs as is done in the US or UK on all realised gains. Make it a level playing field so that those who cannot have large capital can operate PMS

Rohit c shah

3 years ago

the reality we cannot do anything



In Reply to Rohit c shah 3 years ago

You can stop giving them your money!

Nifty, Sensex tantalise bulls and bears : Tuesday closing report

Nifty direction may be clearer by the end of the week

The market today opened in the positive and stayed there almost for the entire session except for a few minutes in the first half. Yesterday, we had mentioned in the closing report Sensex, Nifty may suffer a short decline but this decline has been elusive.
Today the Sensex opened at 21,178 and moved in the range of 21,123 and 21,231  and closed at 21,171 (up 28 points or 0.13%) while the Nifty opened at 6,307 and moved in the range of 6,287 and 6,317  and closed at 6,304 (up 13 points or 0.21%). The NSE recorded a volume of 58.33 crore shares.
Except for MNC (down 0.23%) and Metal (down 0.2%) all the other indices on the NSE closed in the green. The top five gainers were Midcap (0.76%); Energy (0.65%); PSU Bank (0.53%); Nifty Midcap 50 (0.51%) and Infra (0.48%).
Of the 50 stocks on the Nifty, 33 ended in the green. The top five gainers were IDFC (4.72%); Jaiprakash Associates (3.13%); Tata Power (2.53%); UltraTech Cement (1.54%) and HCL Technologies (1.52%). The bottom five losers were Bhel (1.78%); Maruti (0.86%); Jindal Steel (0.82%); M&M (0.67%) and Tata Steel (0.59%).
Of the 1,226 companies on the NSE, 678 closed in the green, 483 closed in the negative while 65 closed flat.
Today, there were rumours about that the prime minister Dr Manmohan Singh is likely to officially opt himself out of the prime minister's race after the 2014 elections. However the PMO said that Manmohan Singh has no intention of stepping down ahead of the 2014 polls.
Yesterday, the Confederation of Indian Industry (CII) said that the CII Business Confidence Index (CII-BCI) rose sharply to 54.9% in Q3 December 2013, from 45.7% in Q2 September 2013. The pick-up in BCI for the current quarter comes as a major relief for the economy. The survey also strikes a note of caution as the downside risks to growth have still not abated and supply side bottlenecks continue to pose a problem.
US indices had a mixed performance yesterday. The National Association of Realtors said its index of pending home sales rose 0.2% in November to 101.7, slightly above a 10-month low of 101.5 in October, but down from 103.3 in November 2012. The US stock market is closed tomorrow, 1 January 2014, for New Year's Day holiday.
Among the Asian indices which were trading today, Shanghai Composite was the top gainer, up 0.88% while NZSE 50 was the top loser down 0.67%.
China is scheduled to post its manufacturing purchasing managers' index for December 2013 tomorrow. China should continue its current prudent monetary policy and maintain appropriate liquidity for the world's second-largest economy in 2014, the monetary-policy committee advising the People's Bank of China (PBOC, central bank) said Tuesday in a statement. This should bring about "reasonable growth" of credit.
European indices had mixed trading while US Futures were trading flat.


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