Mutual Funds
MONEYLIFE SURVEY: Mutual fund investors from US and Canada facing difficulty for purchases
Our online survey on “Foreign Account Tax Compliance Act (FATCA) declaration” shows that nearly 40% of US and Canada investors are unable to make new or existing folio purchase since the FATCA declaration came into existence one year ago. The number of respondents not able to purchase in the last three years has been at 50%. Some asset management companies (AMCs) have actually started accepting investment from US and Canada since end of 2015. It means FATCA declaration has nothing to do with difficulty for US and Canada investors. The reason for AMCs stopping investment from US and Canada investors three years ago is the lack of registration with US Securities & Exchange Commission (SEC).
 
Half of the US and Canada investors have filed FATCA declaration with Karvy, CAMS or AMCs. Surprisingly, only 65% were honest about declaring US and Canada resident or person status along with details of tax identification number in US and Canada. It means many US and Canada investors do not want to disclose their status to avoid AMCs from stopping them from investing. But, it is a dangerous move as making dishonest declaration can come back to bite in future. Beware of it and make an honest declaration, while investing with any financial institution.
 
Nearly, 14% of US and Canada investors say that they have been forced to redeem their existing folio by AMCs since January 2016. It is possible, but the AMCs who responded to Moneylife cover story questions denied such a move. US and Canada investors are certainly having a difficult time investing in Indian AMCs. The good old days before 2013 for US and Canada investors are finished. The future is uncertain.
 
Nearly, half of the respondents were not asked for their FATCA declaration by brokerages, banks, real estate developers and other financial institutions. It means that FATCA declaration which MF industry has been getting from investors is not as much an issue with other financial institutions. Moneylife survey had US and Canada investor respondents staying in US and Canada residents and US and Canada person who are not residing in US/Canada. Apart from US and Canada cities, the respondents were mainly from Mumbai and Pune.
 
Read Moneylife cover story – “Beware! Investors in Indian Mutual Funds from US & Canada” 
 

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COMMENTS

Suketu Shah

4 months ago

These are the things one expects when you have a FMinister like we have.The main problem in current govt is our Finance Minster as Dr Swamy rightly said.Everything else is working very well.

Nishesh Jambudi

4 months ago

As USA citizen I have very hard time to reset password to buy mutual fund. I have no idea how to deal this.

SC seeks report on Bihar Minister's pictures with murder accused
The Supreme Court on Monday asked the Siwan Sessions Judge to submit a report whether the alleged criminals photographed with Bihar Minister Tej Pratap Singh were proclaimed offenders on the day the pictures were taken.
 
The apex court was referring to the photographs of Mohammad Kaif and Mohammad Javed seen along with Bihar Health Minister and Lalu Prasad's son. 
 
The bench of Justice Dipak Misra and Justice Amitava Roy sought a report on the status of the two accused.
 
Tej Pratap Singh and the Bihar government had told the court that on the day the two were seen with the Bihar lawmaker, they were not proclaimed offenders and his meeting them was a matter of chance. 
 
The court said that the report should reach it before November 28 -- the next date of hearing. 
 
Of the two accused, Kaif has surrendered and Javed is still absconding.
 
While seeking report from the Sessions Judge, the court also asked the Central Bureau of Investigation (CBI) to submit a report on the status of its investigation into the murder of journalist Rajdev Ranjan, in which both the accused were allegedly involved.
 
The court's order came on a petition by the victim's widow Asha Ranjan alleging proximity between Kaif, Javed, Tej Pratap Singh and Rashtriya Janata Dal strongman Mohammad Shahabuddin -- who is now in jail. 
 
She also sought transfer of the trial outside Bihar. 
 
The court had given CBI three months to complete the investigation. 
 
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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Undertrial prisoners in India equals Population of Barbados
-- Rudal Shah, arrested in 1953, remained in Bihar's Muzaffarpur jail for 30 years despite being acquitted in 1968.
 
-- Boka Thakur, arrested at 16, was jailed and detained without trial for 36 years in Bihar's Madhubani jail.
 
Shah and Thakur are just two of the 282,879 undertrials in Indian prisons, according to Prison Statistics 2014 -- a number equal to the population of the Caribbean nation of Barbados.
 
An IndiaSpend analysis of available data reveals the extent of the problem: Between 2010 and 2014, 25 per cent undertrials had been jailed for more than one year. The percentage of undertrials to total prisoners has remained over 65 per cent during this period.
 
In 2014, seven in 10 prisoners were undertrials, and two in 10 had been detained for more than one year without being convicted.
 
Undertrials -- those detained in prisons during trial, investigation or inquiry -- are presumed innocent till proven guilty. But they are often subjected to psychological and physical torture during detention and exposed to prison violence and poor living conditions. Many lose their family ties and, often, their livelihoods.
 
Undertrials tend to have restricted access to legal representatives for two reasons: Lack of resources and curtailed liberty to communicate with lawyers from within the jail premises. This is despite a 1980 Supreme Court ruling that Article 21 of the Constitution entitles prisoners to a fair and speedy trial as part of their fundamental right to life and liberty.
 
The court also pointed out that prisoners face a "double handicap" -- most are poor, come from disadvantaged social groups, have little education, and their voices are rarely heard.
 
"The judiciary and the government have admitted that many undertrials are poor people accused of minor offences, locked away for long periods because they don't know their rights and cannot access legal aid," Arijit Sen, Manager, Undertrials Project at Amnesty International, an advocacy, said in an email interview.
 
Undertrials often remain behind bars for years despite the provisions of Section 436A of the Code of Criminal Procedure (CrPC) which came into effect in 2005. This section mandates the release, on personal bond with or without surety, of undertrial detainees who have been imprisoned for half the maximum sentence they would have received if convicted for the offence they are charged with.
 
This section does not apply to those who could be sentenced to death or life term. But 39 per cent of those charged for crimes under the Indian Penal Code (IPC) couldn't be punished with life term or death penalty, Prison Statistics 2014 show. 
 
As many as 122,056 undertrial prisoners (43 per cent) have been detained for more than six months to more than five years by the end of 2014. Many of them have remained in prison for more than the period of punishment they would have got had they been convicted.
 
The number of undertrial prisoners in all detention periods increased over five years, except in the case of detention up to three months. The highest increase was seen in the category of detention for three-to-five years.
 
More than 25 per cent of undertrial prisoners in 16 out of 36 states and Union territories have been detained for more than one year in 2014. Jammu and Kashmir leads this list with 54 per cent, followed by Goa (50 per cent) and Gujarat (42 per cent). Uttar Pradesh leads in terms of sheer numbers (18,214).
 
In June 2013, in a letter to the Supreme Court, former Chief Justice of India R.C. Lahoti had talked about how inhuman conditions persisted in 1,382 prisons despite a series of court and government orders.
 
In response to this letter, which was later registered as a public interest writ petition -- and despite the lukewarm response from the states -- the Supreme Court, in a landmark 2014 judgement, ordered the immediate release of undertrial prisoners eligible to benefit under Section 436A of the CrPc by establishing an Under Trial Review Committee (UTRC) in every district, recommended by a 2013 interim order.
 
A UTRC includes the District Judge, District Magistrate and Superintendent of Police, collectively responsible for speedy trials and review of cases. "About 6,000 undertrial prisoners were released between July 1, 2015, and January 31, 2016. This is certainly a step in the right direction," Sen said.
 
However, those released were 2 per cent of undertrial prisoners in Indian jails. The pendency rate of IPC crimes -- 84 per cent and 86 per cent in 2014 and 2015, respectively -- shows how slow the process of change will be.
 
One of the major causes of high pendency is vacancies in lower courts. It would take a minimum of 12 years to clear the 25 million pending cases in Indian courts.
 
There is also little awareness among police and prison inmates about Section 436A of the CrPC. This section, which is a procedural mandate under CrPC, is often mistaken for an offence under IPC, according to Amnesty International.
 
Non-functional UTRCs, discrepancies in prison records, poor management of information systems, lack of effective legal aid and cancellation of trials due to shortage of police escorts and video conference facilities are factors that keep the number of undertrial prisoners in Indian jails high, reported Amnesty International.
 
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

Simple Indian

4 months ago

It's a shame that all the stakeholders of our legal system - the police, lawyers, and judges - are equally responsible for this despicable situation in our prisons. The snail-paced legal system of India is legendary, and one knows all too well, that a case filed in one's lifetime will be decided only when his/her grandchildren become adults. While criminal cases drag on for decades at times, civil cases being decided by judges within 10 years is unheard of. Justice delayed is justice denied is just a slogan which none of the stakeholders in our legal system take seriously. It's an open secret that only the rich and powerful manage to get verdicts (usually in their favour) while the poor and resourceless citizens languish in jails for years, with no means to pay for their bail bonds or sureties of even a few thousand rupees.

Deepak Narain

4 months ago

It is a matter of shame for all those authorities who have the power to improve this dismal position., e g, the executive, judiciary, police, etc.

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