SMALL INVESTORS FORUM

What are some of the mistakes of Indians that are destroying their financial lives? *Buying insurance policies for investment purpose*: Have you invested your money in insurance plan to get a return in future? Big mistake! Out of 100 people I have spoken, 95 have made this mistake.. Very few people understand the difference between term plan, endowment plan, etc. *Not able to crack the credit card mystery:* Are you paying the minimum amout due on your credit card payment? If yes, you are trapped in credit card mystery. On the other side, very few people really enjoy the benefits like free lounge access, buy one get one movie ticket, etc. *No idea about the power of compounding:* Everyone has come across the formula of compounding but very few people really understand its power. This is the reason people do not start saving early and hence lose out on the power of compounding. Albert Einstein said that power of compounding is the eighth wonder of the world. *Buying sto...

The Council might also consider reducing tax on cement from 28 per cent to 18 per cent to boost the realty sector. A Group of Ministers (GoM) headed by Gujarat Deputy Chief Minister Nitin Patel which has favoured 3 per cent tax on the affordable housing category, down from 8 per cent, has submitted its report to the  GST Council  for taking it up and decide on it by Wednesday. The Council, in its meeting on Wednesday, might also consider reducing tax on cement from 28 per cent to 18 per cent to boost the realty sector. The proposed  Goods and Services Tax  ( GST ) cut in cement and the GoM report are on the agenda of the meeting, sources said, adding that the government is looking at the housing sector closely ahead of the coming Lok Sabha elections. Another ministerial panel set up to review tax rate on lottery favoured a uniform GST rate but whether it is 18 or 28 per cent, a final call would be taken at the meeting. Currently, a state-organised lottery ...

A special MPID court in Pune is already hearing the state’s plea for public auction of 143 “free hold” properties of developer D S Kulkarni, alias DSK, and his group. The affected depositors may find themselves waiting longer than expected for the recovery of dues considering the legal issues arising from the Enforcement Directorate’s (ED) recent attachment of assets worth Rs 904 crore of the  DSK group  under the Prevention of Money Laundering Act ( PMLA ).  A special MPID court in Pune is already hearing the state’s plea for public auction of 143 “free hold” properties of developer D S Kulkarni, alias DSK, and his group.  Legal experts said with the ED attaching the same properties the state had attached in May last year under the MPID Act (a state law), the action under PMLA, a central enactment, will now prevail. They said all cases against DSK group, in Pune or elsewhere, may get transferred in due course to the designated PMLA court in Mumbai.  The mini...

गेल्या वर्षी मालमत्ता करामध्ये १० टक्के करवाढ सुचवण्यात आली असली तरी आज सादर झालेल्या ठाणे महापालिकेच्या अर्थसंकल्पात पालिका आयुक्त संजीव जयस्वाल यांनी कोणत्याही प्रकारची करवाढ सुचवली नाही. गेल्या वर्षी मालमत्ता करामध्ये १० टक्के करवाढ सुचवण्यात आली असली तरी आज सादर झालेल्या  ठाणे  महापालिकेच्या  अर्थसंकल्पात  पालिका आयुक्त संजीव जयस्वाल यांनी कोणत्याही प्रकारची करवाढ सुचवली नाही. ठाणेकरांवर कराचा बोजा न लादता केवळ अपूर्ण प्रकल्प पूर्ण करण्याचा संकल्प मांडण्यात आला आहे. गेल्या वर्षी ३ हजार 600 कोटींचा  अर्थसंकल्प  सादर करण्यात आला होता. यंदा 3861 कोटींचा संकल्पपूर्ती अर्थसंकल्प सादर झाला आहे. मागील वर्षी  जयस्वाल यांनी सुमारे 3,600 कोटींचा अर्थसंकल्प सादर केला होता. यावर्षी त्यामध्ये सुमारे 200 कोटींची भर घातली गेली आहे. मागील चार वर्षात शहरात विविध विकास कामांची घोषणा केली होती. त्यापैकी काही कामांची अंमलबजावणी झाली तर काही कामे अजूनही प्रलंबित आहेत. खार्‍या पाण्यापासून गोड पाणी करणे, घोडबंदर मार्गाकरिता पर्यायी कोस्टल रोड, जल वाहतूक, कचर्‍याप...

The Supreme Court, on February 20. 2019, held Reliance Communications and its Chairperson Anil Ambani guilty of contempt of court in the petition filed by Ericsson. The judgment was rendered by a Bench of Justices  Rohinton Nariman  and  Vineet Saran . The Bench held that three Reliance companies had no intention to pay the money it owed Ericsson, and that their conduct amounted to contempt. The Court further held that the unconditional apology given by Reliance cannot be accepted, in light of its cavalier attitude towards the highest Court of the land. Reliance Communications, headed by Anil Ambani, has therefore been directed to pay Ericsson  Rs. 453 crore  within four weeks. This is in addition to the Rs. 118 crore which Reliance had undertaken to deposit with the Court Registry. In case of failure to pay, Chairperson Anil Ambani, who gave the undertaking to pay, will have to undergo three months’ imprisonment, the Bench stated. Additionally,...

The B anning of Unregulated Deposit Schemes Bill, 2018 The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given approval to introduce the  banning of Unregulated Deposit Schemes Bill, 2018 in Parliament. The bill is aimed at tackling the menace of illicit deposit taking activities in the country. Companies/ institutions running such schemes exploit existing regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings. Details: The Banning of Unregulated Deposit Schemes Bill, 2018 will provide a comprehensive legislation to deal with the menace of illicit deposit schemes in the country through, complete prohibition of unregulated deposit taking activity; deterrent punishment for promoting or operating an unregulated deposit taking scheme; stringent punishment for fraudulent default in repayment to depositors; designation of a Competent Authority by the State Government to ensure repaym...

Investment fraud Investments may have two faces: Positive: Leading to development of an individual and the economy of the country. Negative: Involving certain deceptive practices that scammers use to induce investors to make investing decisions. A number of cases have been filed for a wide range of such deceptive practices. These scammers generally persuade innocent people to invest their money in stocks, bonds, real estates, or even currencies, by providing them false information. Common investment frauds Most common investment frauds include: Pyramid schemes A Pyramid scheme is a sort of a business structure wherein members are recruited by the scammers with a promise that they can turn their small investments into large profits within a short period of time. There is no sale of products or services, rather the existing member gets money by recruiting other new members. Ponzi schemes A Ponzi scheme is a business model wherein the proceeds of new in...

The ordinance on ponzi schemes will prohibit all deposit-taking activities that are not regulated by various regulators.. The Union Cabinet on Tuesday cleared four ordinances, including those banning unregulated deposit or ponzi schemes and allowing amendments to the Companies Act, after the Bills concerned could not be taken up the Rajya Sabha due to disturbance despite being cleared in the Lok Sabha. The other two were the re-issuance of the contentious triple talaq ordinance that makes the practice of instant divorce by Muslim men a penal offence, and the Indian Medical Council (Amendment) Second Ordinance, 2019, to allow the Board of Governors (BoG) to run the scam-tainted apex body for regulating medical education. After the Cabinet meeting in the evening, Finance Minister Arun Jaitley said it has requested President Ram Nath Kovind to promulgate these ordinances. The ordinance on ponzi schemes will prohibit all deposit-taking activities that are no...