Moneylife Foundation headed over to Pune to engage the attentive audience in another interactive discussion on issues ranging from credit worthiness and no-fear investing to wills and nominations
Pune, 23 October, 2010: To spread further the message of financial literacy and awareness, Moneylife Foundation had stepped out into the city of Pune in August, where we had received an overwhelming response from the audience. On popular demand from Pune's receptive audience, we headed to the city again today, this time engaging the eager public in an interactive discussion on issues ranging from credit worthiness and no-fear investing to wills and nominations.
In the first half of the seminar, Mr Debashis Basu, Editor of Moneylife and Ms Sucheta Dalal, Managing Editor of Moneylife held an interactive working session on finance titled 'How to be safe and smart with money'. Ms Dalal spoke on how to avoid losses by staying away from certain kinds of investments like chain marketing and pyramid schemes. She explained how these scamsters operate and advised investors to stay away from such frauds. She also spoke about the implications of credit card transactions and the implications of default and its impact on an individual's credit history and ability to borrow.
Mr Basu told people that investment does not have to be difficult and complicated if one was clear about the basic objectives, avoided obvious pitfalls and followed a sensible and consistent investment policy. "Many a times, investors are lured by fast and big returns and opt out for short-term investment. To avoid such risks, investors should think about the long-term and fix goals accordingly," said Mr Basu. He showed how one could keep things simple, avoid complications and make steady returns without becoming an expert on stock markets.
This workshop was followed by another interesting discussion by Aashish Somaiyaa, head - retail sales, ICICI Prudential Mutual Fund. Mr Somaiyaa elaborated on how to go about investing smartly in mutual funds, pointing out the intricacies in choosing the right mutual fund.
Thereafter, Jayesh Desai, senior associate with Singhi & Co engaged the audience on the issue of wills and nomination, bringing out the vastness of the issue and complications that could arise in the same. Mr Desai elaborated on what is a will, its importance and terminology; he explained the requirements of a will and types of wills, the need for a probate, the cost of a probate, how to make changes in the will and described crucial details involving documentation of nominations.
Everybody would want to ensure proper legacy for their loved ones. The way to do this is through a comprehensive will and by completing nominations and transmission formalities for one's movable and immovable properties. Getting a will right is crucial if disputes between heirs over legacy are to be avoided. A will could clear the way. Most of the questions that were raised by the participants related to their individual situations. Mr Desai addressed each question patiently, clearly explaining all important aspects.
Finally, Ch Vishwanath, general manager and head - legal & compliance, Karvy spoke to the audience on the burning issue of transmission of financial instruments.
The Indian market ended flat in the week ended 22nd October, after a two-week losing streak. Global cues, quarterly earning figures and fund flows towards the mega Coal India Ltd (CIL) initial public offer (IPO) led to volatile trading throughout the week.
The market, which traded lower for a major part of the session on Monday, sprang a surprise at the fag end of day closing with marginal gains. The gains were short-lived as the indices were in and out of the red on quite a few occasions on the back of a highly choppy session, ending the day with cuts of nearly a percent on Tuesday. Sluggish global cues pulled the market down for the second day in a row on Wednesday. Participation by institutional investors in the secondary market was muted in the early part of the week on account of the CIL IPO.
Easing of global pressures helped the domestic market close with handsome gains on Thursday. Lower food inflation numbers and upbeat earnings data also supported the broad-based rally. Profit-taking made its appearance on the last trading day of the week. Investors preferred to stay on the sidelines as cautiousness prevailed ahead of the two-day Group of Twenty (G20) meeting being held in South Korea.
The market settled in neutral territory with the Sensex logging gains of 40.81 points and the Nifty adding 3.40 points in the week.
The top weekly gainers were TCS (up 9%), Reliance Industries (RIL), Cipla (up 4% each), Hero Honda (up 3%) and Reliance Communications (RCom) (up 2%). On the flip side, Sterlite Industries (down 6%), Wipro, HDFC (down 5% each), Jaiprakash Associates (down 4%) and Tata Steel (down 3%) were the key losers.
BSE Healthcare (HC) and BSE Oil & Gas (up 3% each) were the top sectoral performers during the week while BSE Metal (down 3%) and BSE Realty (down 2%) were the sectoral losers in the week.
Food inflation eased to 15.53% as of 9th October and the fall gave the Planning Commission a reason to forecast single-digit food inflation by December.
Food inflation declined 0.84 percentage points from 16.37% in the previous week.
Overall wholesale price index (WPI) based inflation for September rose to 8.62%, from 8.5% in the previous month, prompting analysts to project a 25 basis points increase in key policy rates in the Reserve Bank of India's (RBI) 2nd November policy review. The central bank has raised policy rates five times so far this year.
Robust demand from all classes of investors saw Coal India Ltd's (CIL) mega initial share sale offer being oversubscribed 15.20 times on the final day of the issue, generating bids worth Rs2,35,290 crore.
The IPO, which was open between 18th October and 21st October, garnered total demand for over 960.36 crore shares, as against 63.16 crore equities on offer as per data from the National Stock Exchange. This translated into total demand worth Rs2.35 lakh crore - the highest upfront payment for any IPO in the country.
India's foreign exchange reserves rose by $641 million to $296.43 billion on the back of a sizable jump in foreign currency assets, making it the fifth consecutive weekly rise in the kitty.
Foreign currency assets, a major component of the forex pie, shot up by $582 million to $268.68 billion for the week, according to Reserve Bank of India (RBI) data.
The country's largest lender State Bank of India (SBI) increased its base rate or the minimum lending rate for new borrowers by 10 basis points to 7.6%, a move that would make all kinds of advances, including corporate loans, costlier.
The bank has revised the base rate below which banks cannot offer loans, upwards by 10 basis points from 7.5% to 7.6%, effective from 21 October 2010. This is the first review of the base rate since it was introduced in July this year. As per RBI guidelines, banks have to review their base rate every quarter.
Mumbai: Union minister of state for corporate affairs, Salman Khurshid has said that the government would resolve the 'technical issues' pertaining to the SKS Microfinance case, reports PTI.
"The Andhra Pradesh High Court has given its decision on the matter (sacking of the company's CEO Suresh Gurumani). When courts take a decision, we obviously have to comply with it," Mr Khurshid told journalists on the sidelines of an event in Mumbai on Friday. "Courts have taken a view on this...it will obviously reflect in what the ministry has to do going forward." The minister said that there are certain technical issues and "we will resolve them."
On 4th October, SKS Microfinance sacked Mr Gurumani from the post of CEO and managing director, a few months after it had successfully raised about Rs1,500 crore through a share sale. Founder and chairman Vikram Akula had said that Mr Gurumani was removed because of "inter-personal" issues.
However, Mr Gurumani petitioned the Andhra Pradesh High Court, which allowed him to continue as a director. The court did not stay the company's decision to terminate his services as CEO and managing director.
Asked about weak corporate governance processes in the micro-finance sector, Mr Khurshid said, "Corporate governance is not something that should be limited to companies." The minister said that as far as corporate governance was concerned, it applies across the board. "It has to go to other platforms as well, which come under this broad area. Of course, the levels of compliance and expectation will have to be different," he said.
"Where public money is involved it is one level and where public money is not involved, it is another level. Similarly, corporate governance parameters are different for both private companies and limited liability partnerships. But there has to be basic standards for everyone. There is a need for compliance with rules and regulations along with transparency for efficiency and perfection," Mr Khurshid said.