Motilal Oswal MF launches MOSt10-year Gilt Fund

Motilal Oswal new issue closes on 5th December

Motilal Oswal Mutual Fund has launched Motilal Oswal MOSt 10-Year Gilt Fund, an open-ended gilt fund.

The investment objective of the scheme is to generate credit risk-free returns by investing in a portfolio of securities issued by the central government and state government. The new issue closes on 5 December 2011. The minimum investment amount is Rs10,000.

The 10-year Benchmark GOI Dated Security and CRISIL Gilt Index are the benchmark indices. Abhiroop Mukherjee is the fund manager.


Are insurance comparison sites going out of business?

IRDA’s guidelines on comparison websites will make it impossible for likes of and to survive in their current form

The Insurance Regulatory and Development Authority’s (IRDA) stringent guidelines for comparison websites are seen as a deathblow for likes of, and Clamping down on advertising, ratings, endorsements or bestselling insurance products will surely help customers to get unbiased information for making a good buying decision. The main points, which will help customers, are as follows –

  • Comparison websites shall not display ratings, rankings, endorsements or bestselling insurance products on their website. The content of the comparison websites shall be unbiased and factual in nature; they shall desist from commenting on insurers or their products in their editorials or at any other location in their websites.
  • Comparison websites shall disclose prominently on the home page that the client/visitor’s particulars could be shared with insurers/insurance brokers.
  • Comparison websites shall not carry any advertisements or sponsored content on their websites.
  • Product comparisons that are displayed shall be up-to-date and reflect a true picture of the products.
  •  Comparison websites shall display product information purely on the basis of the information furnished to them by insurers.
  • Web aggregator shall not transmit the data of a client to insurer(s) other than the one(s) preferred by the client. Provided that, if the client evinces interest in buying insurance but does not prefer any insurer, the web aggregator shall not transmit the lead to more than three insurers in the same class of insurance business or one insurance broker.

The main points which do not help web aggregator business are as follows –

  • Remuneration shall be payable to comparison websites by insurers in compliance with the following provisions: a) A flat fee not exceeding Rs1 lakh per year towards each product displayed by the web aggregator in the comparison charts of its website. b) An amount not exceeding Rs10 towards each lead transmitted by the web aggregator.
  • If the lead gets converted into sales, the web aggregator payment shall not exceed 25% of the commission payable or actually paid, whichever is lower, on the first-year premium of the first policy sold on the basis of the lead obtained from the web aggregator.

Lead generation, which refers to website visitor information (with approval) being sold to insurance companies for pursuing sales was the main business of comparison websites. The commissions for many online products were negligible, but revenues were generated from advertising. They earned Rs80-Rs100 per lead with quality leads sold to one insurer even fetching Rs200 to Rs250. IRDA regulating the financial remuneration will cut-off all sources of money being passed for wrong reasons and bringing the lead generation to Rs10 will wipe out the business.

Deepak Yohannan, chief executive officer, has a balanced view of the guidelines. According to him, “Approved channel from the regulator will give confidence to the customers. The insurance industry will take the channel seriously. Banning advertising, ratings, endorsements or bestsellers is also positive step. IRDA was very receptive of our views and gave us a patient hearing.”

“Lead payment of Rs10 is impractical and impossible. One Google click costs more than Rs10 and it takes 10 clicks to generate a lead. If my cost is Rs100, how can I sell for Rs10 to maximum three insurers? If IRDA had allowed Rs50 per lead, it may have been viable considering three insurers may buy the lead. Moreover, getting 25% of the commission when brokers/agents get 100% of commission is also unfair. We want to display information of all the insurers’ products. Why will all insurers pay Rs1 lakh per year when they can get it for free?” he said., the leader in the web aggregation business, is also an unhappy camper. Akshay Mehrotra, chief marketing officer,, said, “The guidelines will result in companies like us almost not to function. We used to specify which product is bestselling, but we cannot do it anymore. How can IRDA stop public opinion on product feedback? It is vested interest of some insurers who don’t want comparison websites.”

“We make for 70% of online insurance sales today which helps in reducing distribution costs of insurance companies. We had suggested to IRDA for allowing Rs100 per lead. Why should I get only Rs10 per lead and 25% of the commission? Is it legitimate regulation? It is like telling us to shut down our business. We may have to change the business model to not sell leads or go out of business,” he added.




5 years ago

I have purchased my bike and term life insurance from The comparison they provide are very useful adn the best prat is I they also provide in wrting the comparison of features and no insurance company hard sell


5 years ago

So the grouse of the websites is the lowering of returns. This is what I gathered from reading the article. This is precisely what the mutual fund advisors cried when the commission payable to them was abolished. If the cost of going to a client is Rs. 200, how can they survive from Rs.50/- earned by him?? But then a few valued readers of this website had commented on the discussion page that abolition of entry loads and consequently the commission to agents was good for the investors.

On representative of had bravely suggested that the breed of individual insurance agents are a dying breed because the future of the insurance sales lies in websites like theirs. But one small change in the policy and they are worried they will be out of business!!



5 years ago

I have used policybazaar on a few occassions & it was very helpful to me in getting all the rates at one point, instead of wasting time referring each insurer's site.
If the new rules lead to closing down of aggregator sites, the common man will be the loser.
But in any case i am not surprised, i have come to expect ill thought out decisions from Indian regulators. Sad, really.


5 years ago

All insurance companies must form a consortium & fund such an initiative of ensuring that the end customer gets the best product as per his need. Web aggregator's objective is transperency & he must get his due.

AK Sharma

5 years ago

what about

They dont do product comparison, its classified...


5 years ago is one such website which is very biased and shows wrong results just for sake of more comissions. They also trouble customers by unwanted calls.

PFC publishes investor data on the web, raising privacy concerns

PFC has published names, complete addresses, telephone or mobile numbers and email IDs of around 1.2 lakh individuals, which raises several questions of privacy and investor protection

In yet another instance that proves the government and its units are insensitive to issues of transparency and privacy, Power Finance Corp (PFC) has published complete data of its investors on the web. This too when, concerns are being raised about the government's unique identification (UID) program that not only collects detailed information, but also takes biometric data like iris and finger scans. This UID data is accessible for anyone who is associated with the UID Authority of India (UIDAI) as registrar.

In a stunning case of placing private data out in the public domain PFC, which collected money from investors for its infrastructure bonds, has published names, addresses, telephone or mobile numbers and email IDs of around 1.2 lakh individuals. The revelation of this data has angered several investors. "I was not aware of my personal data being uploaded on the website. This is a clear violation of my privacy," says a Mumbai-based investor.

This is surprising, especially when last year Finance Minister Pranab Mukherjee rejected a proposal from National Intelligence Grid (NatGrid) to access details of all bank accounts. Mr Mukherjee, in a hand written note, had warned that intrusion into the privacy of bank depositors will discredit the banking system and people will start using other modes for securing their funds.

However, either PFC is not aware of the Finance Minister’s opinion or does not understand the difference between transparency in its operations and violating personal privacy.

Currently, the UIDAI is under heavy criticism on privacy issues, use of biometrics and the incentives being paid for enrolling more residents. Many voices have been raised against the forceful implementation of the UID project, with most objections focused on concerns over privacy. Advocate and activist Kamayani Bali Mahabal, who started petitioning Prime Minister Dr Manmohan Singh against UID scheme or Aadhaar, said, "Privacy law is still being made, and until it is in place, the UIDAI should not be doing what it is, and it certainly cannot be allowed to share information as it proposes to do under the 'information consent' clause in its form."

Although, the Constitution does not explicitly specify privacy rights, the Supreme Court in a landmark judgement (Unni Krishnan, J.P & Ors. Etc., versus State of Andhra Pradesh & Ors,) on 4 February 1993, had ruled that "This Court has held that several un-enumerated rights fall within Article (21) since personal liberty is of widest amplitude."

We sent a mail to PFC officials, who assured us that the mail has been forwarded to concerned department and they will act upon the issue at the earliest.




5 years ago

Can someone give the URL where this data exists ?

R Nandy

5 years ago

Wonderful! The PFC data base is almost perfect. It only doesn't have the date of birth and marital status
of the Bond Holders. Those can easily be acquired by calling the Bond Holder and telling them that you are calling from PFC and gain their confidence by stating their PAN number. And, bingo you have the Date of birth. Please don't blame me for writing this,any identity thief knows this. :)

UID(Aadhar) is another wonderful project which is going on. It will institutionalize identity theft in India. Last week I was in the HAL II post office in Bangalore. The primitive way the enrollment was being handled with huge stacks of address/id proofs collected is baffling. No doubt a lot of them will end up being used in opening of new bank accounts to be used as money mules.

PFC will not do anything unless you cause them a lot of pain either by lodging a FIR against the head or a PIL. And, Arora does have a point

indira jain

5 years ago

The number of comments to this post so far show the level of interest in privacy as an issue :-) 2 from arora , on from moneylife!

Find it hard to agree with the savage nastiness of Arora. As a reader, I am happy Moneylife has named names.
Also, as a tech person, I think it would take a few seconds for PFC's webmaster to disable the link. So why should it be Moneylife's responsibility not to name names?
Maybe Arora is from PFC and hence the irrational anger??
Glad she has rested her case and hopefully will keep it that way!
lage raho moneylife


Hemant Bhatia

In Reply to indira jain 5 years ago

I agree with Arora & it is childish to say that if you disagree with ML you are from PFC. I also rest my case & you be glad again.

Alisha Arora

5 years ago

ML should have reported this matter responsibly, citing "a major sectoral finance company has violated shareholder privacy", instead of revealing the exact name of the company. Such kind of reportage, leads to readers and surfers, to visit the website, on your prompting.

PFC has erred greatly but ML has multiplied the damage insensibly.

Poor reporting standards at ML; sensationalism overtaking pragmatism.

Web editorial maturity was conspicuous by its absence, in this case.



In Reply to Alisha Arora 5 years ago

We strongly disagree. without a name the report would have been meaningless and would have seen no action at all for the next few years!!!
As a responsible magazine, we called the PRO and urged him to respond. We hoped they would disable the link before we went public with the story. We told them we are doing public. If the company didn't wake up even then, you cannot hold us accountable.
If you want expemplary action, then dont tell us not to expose wrongdoing, instead file a complaint and ensure exemplary punishment for PFC so that it jolts others.

Alisha Arora

In Reply to MLD 5 years ago

Extent of damage was amplified by irresponsible reporting, when the objective was to protect the privacy of the undermined investors, and not to induce further damage.

Poor logic furnished with defiant denial of responsibility towards privacy of those affected juxtaposed with urge to do expose on errant company!

Public interest is undermined by corporate carelessness enlarged by journalistic blunder.

Whenever internet credit card data is exposed, the reputed international news reporting is done not by propagating the data leakage but just the news of it after ensuring blocking the leakage, with embargo till it is secured.

Jumping the gun might be for journalistic fun devoid of public interest principles !

Rest my case, no more posts to drive home the point, if you are determined to miss it :-(

Rambabu Shastri

5 years ago

Data privacy is only the privilege of the foreign national whose data gets processed by BPOs. The BPOs and Nasscomm have set up a DSCI organization that ensures they have good standards and practices to protect data. However, these bodies or standards have little or no focus on the data of Indian citizens. After all, there are so many of us, that a leakage of information of about a lakh or so individuals, does not make any difference on percentages of the whole population. The leakage is not just the PFC, but also the PCMC, MSEDL MTNL and other bodies who have taken to e-commerce and web-facing applications without any standards, directions or skills on information security. The situation will take ages to remediate in India and till then, the leakage of about 1 lakh customers information by the PFC is miniscule and too trivial to be of any consequence. The UIDAI is also being scuttled as there are ulterior political motives to ensure it does not happen.

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