Personal finance Tuesday

Future Generali unveils new online term plan Smart Life; IRDA slaps Rs10 lakh penalty on Reliance Life; Shipping Corp files final papers with SEBI for FPO; IDBI Mutual Fund files offer document with SEBI to launch Tax Saving Plan

Future Generali unveils new online term plan Smart Life

Future Generali India Life Insurance Company has launched a new term plan - Smart Life - that can be purchased online.

 Smart Life is a non-linked, non-participating plan that provides rebates on premium for higher sum assured. It offers cover till 68 years, for customers in the age group of 18-60 years, and is also available online.

Future Generali is a joint venture between Future Group of India and Generali Group of Italy.

IRDA slaps Rs10 lakh penalty on Reliance Life

Insurance Regulatory and Development Authority (IRDA) has imposed a fine of Rs10 lakh on Reliance Life Insurance Company for violating the norms.
The company was directed to pay a penalty of Rs10 lakh and was asked to adhere strictly to the guidelines in future, said an order by IRDA chairman J Hari Narayan which was posted on the official website of the regulator.

Reliance Life, according to the order passed in August by the IRDA, was fined for paying excess referral fees and not following the regulatory guidelines with respect to group products.

The order followed a meeting between the IRDA officials and Reliance Life management in July, during which six charges were discussed.

The insurance regulator has observed that Reliance Life had paid excess referral fees than envisaged in the referral guideline.

In its reply to the IRDA, the company had agreed for the lapses and said that these fees were paid in anticipation of business volumes to be generated as per initial commitments.

"The company is directed to pay a penalty of Rs5 lakh for the violation and cautioned to ensure that they adhere strictly to the guidelines in future," the IRDA said.

The regulator has also said that the company has deviated in the "F&U procedure" particularly in group products and the comments received from the company on this were not satisfactory.

"The company is directed to pay a penalty of Rs5 lakh for the violation and cautioned to ensure that they adhere strictly to the guidelines in future," IRDA said.

Shipping Corp files final papers with SEBI for FPO

Shipping Corporation of India has filed the final papers with the Securities and Exchange Board of India (SEBI) for its upcoming follow-on public offer (FPO).
The Rs1,300 crore FPO is likely to hit the capital markets by the end of November or early December.

The government in October, had approved selling its 10% stake, comprising 42.35 million shares, in Shipping Corporation of India and allowed the company to issue fresh equity to the tune of 10% of the paid-up capital.

Post stake sale, the government's holding in the company will come down to 63.75% from 80.12% currently.

The company plans to use the money for its expansion plans, which includes entry into port and terminal management in joint venture with a global company. It has already expressed interest in picking up 10%-15% in leading shipbuilders in the country.

Retail investors and employees of the largest domestic shipping liner would get 5% discount on the issue price in the FPO, while the employees will also get a quota of 0.5% of share sale.

The company had appointed SBI Caps, IDFC Capital and ICICI Securities as the book running lead managers for the issue in August.

IDBI Mutual Fund files offer document with SEBI to launch Tax Saving Plan

IDBI Mutual Fund has filed an offer document with the Securities and Exchange Board of India (SEBI) to launch IDBI Tax Savings Plan, an open-ended equity linked savings scheme (ELSS). The new fund offer (NFO) price is Rs10 per unit.
The Scheme will seek to invest predominantly in the stocks and equity-related instruments comprising the BSE Sensitive Index (Sensex) passively, with the objective to provide investors with opportunities for capital appreciation and income along with the benefit of income-tax deduction (under Section 80C of the Income-Tax Act) on their investments. Investments in this scheme would be subject to a lock-in period of three years from the date of investment to avail the income-tax benefits under Section 80C.

The scheme will invest 80%-100% in equity and equity-related instruments linked to the constituents of Sensex. The scheme shall also invest up to 20% in debt and money market instruments.

The scheme will offer growth and dividend option. The exit load for the scheme is nil. The minimum investment amount is Rs500. The minimum target amount is Rs1 crore.

The benchmark index for the scheme will be BSE Sensitive Index. The scheme will be managed by Syed Sagheer.


Home Truths: Leading expert clears the confusion on housing society co-operative laws

Vimal Punmiya, one of the country’s leading experts on property matters, shared his insights on almost each and every matter with regard to co-operative housing societies, and more

On Tuesday, Moneylife Foundation conducted a seminar in Mumbai on one of the most contentious subjects in the city-co-operative housing society rules.

Mr Vimal Punmiya, a chartered accountant with more than 34 years of experience and an expert on property matters, shared his extensive knowledge on four main topics with regard to co-operative housing societies-bye-laws, stamp duty charges and registration rules, income-tax laws and accounting provisions, along with norms related to wills, nominations and transmission.

The response was overwhelming. The audience was fascinated by the depth and range of Mr Punmiya's observations, which touched upon almost each and every aspect regarding co-operative housing societies.

For a matter as important as housing, the laws in India are in complete disarray and Maharashtra is no exception. These laws-especially those governing co-operative housing societies-are extremely arbitrary, frequently-changing and subject to innumerable interpretations.

Mr Punmiya helped to clear the fog, but even the marathon 120-minute session was not enough, and the audience kept asking the obliging expert for much more.

It is really a matter of concern that the country's mass media has almost never touched upon the topics that Moneylife Foundation along with Mr Punmiya, managed to highlight.

Explaining the basic concept of a co-operative housing society, Mr Punmiya said, "Under a co-operative housing society, you are much superior to tenants (as far as your title is concerned) but inferior to the landlord. The society is the owner of the property and members only have a certain share of the society." This means that despite having a clear title to property, residents of co-operative societies are often left in limbo whenever any kind of dispute crops up.

On the current scenario with regard to co-operative societies in the state, Mr Punmiya said, "In Maharashtra, there are 60,000 housing societies, out of which 35,000 are in Mumbai. And out of these 35,000 societies, for about 28,000 societies, builders have not (properly) conveyed property to these societies."

He also pointed out how society laws were frequently amended in the past, and ran the audience through the difference between the old bye-laws and new modern bye-laws.

"Under old bye-laws, housing societies, which were formed up to 1984, had rights to make their own laws. However, after 1984, modern bye-laws were introduced. Societies which don't want to follow their own bye-laws can adopt the modern bye-laws. Societies formed before 1984 can also follow the modern bye-laws. In 2001, the new modern bye-laws were introduced," Mr Punmiya said. He also explained the rules under the new modern bye-laws. "Joint ownership is recognised in the new modern bye-laws," he said.

Mr Punmiya went on to explain various other aspects of a co-operative housing society's laws and the rights of the residents. He also fleshed out other issues relating to stamp duty and registration and explained the importance of conveyance of property.

He talked about stamp duty on lease agreements and leave & license agreements. He also explained the process of property registration and guided the audience on wills, nominations and transmission of property in co-operative housing societies.    

Mr Punmiya's exhaustive session was followed by an extensive and interactive question & answer session-where numerous questions were asked, and in-depth answers were given by the speaker in his inimitable style.

Mr Punmiya has written a number of books on subjects like transfer of flats, stamp duty, registration, and capital gains. Moneylife Foundation will continue to host such seminars on topics which affect the life of the common citizen.  

Pictures of the event



Those seeking help or advice on CHS issues can contact
Moneylife Foundation’s Legal Resource Centre (LRC) ( )




6 years ago

Need to contact Mr.Vimal Punmiya on society matter , need his mobile no. and e mail id.

Chetan Bordawekar

7 years ago

It was indeed a very informative seminar I have ever attended. Good Concept, all the topics covered with adequate explanation, satisfactory reply to each & every query of the audiance, various examples given whenever necessary, well managed question-answer session to give a chance to every member to ask the question one-by-one. Thanks MoneyLIFE Foundation for organizing such a wonderful seminar & looking forward for more such seminars in near future. Thanks & Regards. Chetan Bordawekar


7 years ago


India launches road-safety program for highways in association with the World Bank

Around 2,00,000 people are killed yearly on Indian roads; the country has barely 15% of the world’s road facilities

The government of India and the World Bank have come together to launch a road-safety initiative to reduce the high and increasing number of fatalities and serious injuries on Indian roads. An average of 550 Indians are killed in road accidents each day and the government estimates that the situation may deteriorate with rapid motorisation and traffic growth unless safety measures are rapidly integrated into the road-development program.

The project, which will implement the International Road Assessment Program (iRAP), will assist the ministry of road transport and highways and state Public Works Departments (PWDs) in Assam, Gujarat and Karnataka to improve road safety on 3,000km of high-risk roads. 

The World Health Organization estimates that about 200,000 people are killed yearly on Indian roads. This represents 15% of the world's road fatalities, despite the fact that India has only 1% of the world's motor vehicles.  A large number of these fatalities are attributed to poor road design and lack of protective features for road users. With economic development and motorisation, this number will most likely increase in the coming years unless efficient measures are implemented. In fact, India has overtaken China to top the world in road fatalities and continues to pull steadily ahead. In comparison, road deaths in China, despite its own auto boom, have been falling for much of the past decade, to 73,500 in 2008.

There is a need for a programme that will assess the safety of these roads and propose measures to improve them. The government's Sundar Committee Report on Road Safety and Traffic Management (2007) made a comprehensive assessment of the road safety situation and provided detailed recommendations to make Indian roads safer for all. The iRAP project is part of the World Bank's ongoing efforts to help the government implement the Sundar Committee's key recommendations.

Speaking at the project launch in New Delhi, World Bank country director Roberto Zagha said, "No other country has ever had such a high number of vulnerable road users. Given the scale of this unique challenge, India cannot afford to emulate the slow path to safer roads taken by the high-income countries; rapid and innovative action is needed if a major public health crisis is to be averted."

The India project will inspect more than 3,000km of national and state highways sections in Assam, Gujarat and Karnataka. It will also use the latest digital imaging technology on the identified stretches to bring in cost-effective improvements that could help reduce road deaths and injuries on these roads.  "The inspections will help identify affordable improvements that can dramatically reduce road death and injury. We know, for example, that the provision of flexible posts in the centre of the road can significantly reduce head-on crashes," said iRAP Asia Pacific regional director Greg Smith.

While the World Bank, through its multi-donor Global Road Safety Facility (GRSF) will finance and oversee the iRAP Project in India, the Australian Road Research Group and India Road Survey and Management will assist state PWDs in Assam, Karnataka and Gujarat in its implementation.



V S K Kaumudi IPS

7 years ago

Police is the most effective traffic enforcement ageny in India. Any scheme for road safety must have police officers to implement it,otherwise it will not succeed.


7 years ago

It should be made mandatory for all non-highway roads to have pedestrian friendly features like raised pavements and safe crossings, before these are allowed to be built. Existing roads should also be modified in a planned time-bound manner.

Before a Driving Licence is given, the drivers should be asked to pass a basic safety and courtesy test also, in the absence of an IQ test, which of course, would have been ideal, if it allowed a drastic reduction in the large number of half-wits who have been allowed to be at large on Indian roads.

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