SEBI's move is aimed at addressing conflicts of interest in distribution of financial product
Mumbai: The proposed regulation of investment advisors will benefit the industry once enforced, a senior Securities and Exchange Board (SEBI) official said on Friday, reports PTI.
"Once the regulation of investment advisors comes into effect, the industry will benefit," SEBI deputy general manager Maninder Cheema said while addressing a seminar on 'Future of career in financial planning,' organised by the Financial Planning Standards Board.
In a move aimed at addressing conflicts of interest in distribution of financial products, the SEBI had issued a concept paper to regulate investment advisors last September.
The capital markets regulator intends to keep a check on investment advisors through the self-regulatory organisation (SRO) route.
The proposed regulatory framework is on the activity of providing investment advisory services in general, not limited to securities, insurance and pension funds.
Addressing the meeting, Reserve Bank General Manager DG Kale said, "While the regulators take care of three 'I's ( instruments, infrastructure and investors) the fourth 'I' (individuals) needs to be addressed by professional financial planning bodies such as the FPSB promoting CFP certification, in terms of building the right knowledge base for ensuring that investors meet their needs in a holistic and ethical manner."
FPSB India vice-chairman Ranjeet S Mudholkar said, "Financial planning profession has gained credence to be recognised as a distinct profession across the world in the personal finance domain, and CFP certification is now widely accepted as the global mark of excellence in financial planning. We now need a more collaborative effort amongst all stakeholders to take forward the financial planning movement ahead in the country."
While the Goa chief minister is firm on inducting Alina Saldanha as new minister, the EC feels that it would hamper the upcoming bypoll in Cortalim where Ms Saldanha would be the BJP candidate
Panaji: Goa Chief Minister Manohar Parrikar and the Election Commission (EC) are at loggerheads over the proposed induction of a new minister in the cabinet, reports PTI.
While Mr Parrikar on Friday said he will induct Alina Saldanha in the cabinet, the state chief electoral officer has asked the chief secretary to defer the induction, as it will affect level-playing field for the Cortalim bypoll.
Ms Alina, wife of former state tourism minister Matanhy Saldanha in Manohar Parrikar-led cabinet, is tipped off to be BJP candidate for forthcoming 2nd June Cortalim by-election necessitated after demise of her husband. She is scheduled to be inducted in the cabinet on 8th May.
"In my opinion, the alleged proposal, if any, tends to project a contesting candidate which would disturb the level playing field," chief electoral officer (CEO) S Kumarswamy has said in his letter to Chief Secretary Sanjay Srivastava.
The CEO has requested that chief secretary to take up with the state government to defer the induction, till bypoll is over.
RTI activist Aires Rodrigues had today lodged a complaint with the Election Commission of India (ECI) claiming that induction of Ms Saldanha amounts to violation of code of conduct.
Earlier in the day, Mr Parrikar, told reporters that Constitution of India empowers him to induct anyone in his cabinet, provided he/she is elected to the house within six months. "The question is whether Constitution is important or Code of Conduct, which is not even a legal document," the chief minister commented.
Responding to the claim that induction would amount to influencing the voters, Mr Parrikar said, "You have to influence the voter when you are contesting an election. What is an election manifesto meant for? Only issue is that one should not take undue advantage."
BSB Trading promises dubious double your money in a matter of months
While offering guaranteed returns from trading in equities is impossible, many multi-level marketing schemes are luring gullible investors by assuring them huge returns. BSB Trading House is one such company. It claims to be in the brokerage service business. The twist is that it also sells 'kits' which gives certain income based on binary, referral and other plans-typically allotted by any MLM scheme.
BSB is a part of Big Sale Retail Bazaar Pvt Ltd, with its corporate office in Delhi at Govind Puri near Metro Station. It claims to provide brokerage service in equities, commodities and also in the futures market. This company is mass mailing its services with the objective of luring the greedy.
According to the information on company's website, after registering with a payment of Rs500, one can buy the kits. The company then invests the money by identifying "emerging market opportunities where we can anticipate best returns". There are three kits-basic, advanced, and standard sold for Rs4,999, Rs9,998 and Rs14,997 respectively. However there are certain restrictions. For instance, in the basic kit, a discount voucher of Rs500 per month for 10 months can be used. And one such discount voucher of Rs500 will be adjusted in the billing amount of Rs2,500. Similarly in advance and standard, the discount vouchers can be used for 20 months and 30 months respectively.
BSB claims that once your registered ID top-up of any of the three kits is done, the amount would double after five similar top-ups are done anywhere in the company. So Rs4,999 will double to Rs10,000 and so on. Again these five IDs could also be entitled for double income after five more persons joins the company.
Further, the company guarantees assured returns in case the money is not doubled in 15 days. Accordingly, for the basic kit 20% assured returns is given on the top-up for 10 months, 25% in case of advance kit and 30% for standard kit. This apart, BSB also promises 10% on each direct referral given by you to join the company. Like most of MLM schemes, BSB also assures binary income. Enrolling two members on each side (1:1) is essential for binary income.
BSB currently is also offering pre-launch rewards. For enrolling 11 pairs it rewards with a mobile, for 25-a laptop and further for 999 pairs-a Honda City and so on.
The company specifically mentions for every payment there is guaranteed returns or else the payment amount will be refunded by the company.
All these features are a sham to create a chain money scheme. These binary business models are bound to collapse after the chain has spread wide enough for the promoters.