SMALL INVESTORS FORUM

 Alert Citizens Forum is pleased that its efforts and follow up to provide relief to the small depositors have now borne full fruit. Last year, the Finance Minister first announced the increase in Bank Deposit Insurance from Rs 1 lakh to Rs 5 lakhs. Now, this year, in a relief to depositors of stressed banks, the Cabinet on July 28,  cleared amendments to the Deposit Insurance Credit Guarantee Corporation (DICGC) Act, which will enable customers to have access to their deposits up to Rs 5 lakh within just 90 days, if their banks go bust and are placed under moratorium. The Cabinet also approved amendments to the limited liability partnership (LLP) Act to decriminalise a dozen offences and enable such entities to enjoy the same benefits as large companies—a decision that is expected to help hundreds of start-ups, among others. Briefing reporters, finance and corporate affairs minister Nirmala Sitharaman said the DICGC (amendment) Bill will cover 98.3% of depositors and 50.9% of...

 Depositors in stressed banks to get insurance money within 90 days of moratorium: The fresh amendments to the DICGC Act will provide huge relief to depositors in stressed banks.  The Union Cabinet on Wednesday cleared amendments to the Deposit Insurance Credit Guarantee Corporation (DICGC) Act, bringing relief to depositors in stressed banks or financial institutions that have been placed under a moratorium. At a press briefing, Finance Minister Nirmala Sitharaman said, “The Deposit Insurance Credit Guarantee Corporation Bill, 2021 has been cleared by the Cabinet today.” “Under DICGC Bill 2021, 98.3 per cent of all deposits will get covered and in terms of deposit value, 50.9 per cent deposit value will be covered. Global deposit value is only 80 per cent of all deposit accounts. It only covers 20-30 per cent of the deposit value.” As per the fresh amendments to the act, depositors in stressed banks that have faced regulatory action must receive insurance on their bank depos...

To many people, Mutual Funds can seem complicated or intimidating. We are going to try and simplify it for you at its very basic level. Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager. It is a trust that collects money from a number of investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments and/or other securities. Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s “Net Asset Value or NAV. Simply put, a Mutual Fund is one of the most viable investment options for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Benefits o...

  Do’s and Don’ts In The Stock Market Let’s introduce do’s and don’ts of investing Most of us have our own perception of investment based on our experiences, but also tend to be confused with the opinions given by others. Knowing the do’s and don’ts of the stock market would help us turn really as a smart investor. The do’s and don’ts in the stock market are 1. Slow, steady, and boring wins the race It is best not to panic over information about stocks on the media. Being slow and steady with looking at the activities that your money is to be used for would ensure that you invest in ventures that are good, useful and profitable. Reading good books on the personal finance will help you in taking right financial and investment decision. In addition, finding good financial advisors would help you get advice regarding stocks and mutual funds, along with entrusting the custody and management of your funds to them. All this may seem too boring andi tme consuming, but it is better to be c...

THE DOS AND DON’TS OF INVESTING If you’ve ever been curious about investing and didn’t know where to start, you’ve likely pondered a variety of questions from what types of stocks to buy to how much money to invest to who to ask to guide you along the way. Though it may seem complicated, investing doesn’t have to be difficult at all. Investing your money is critical to reaching your savings goals. With an experienced and trusted financial advisor by your side, investing can be an exciting and smooth process. To help give you some confidence when it comes to investing, here are our team’s suggested do’s and don’ts for investing beginners. WHEN IT COMES TO INVESTING, DO… 1. EDUCATE YOURSELF. You won’t likely make money from stocks if you don’t take the time to research a company before investing. Study a company’s core values, financial statements, and management, as well as any other beneficial information that gives insight into its investment potential. Even more, don’t go it alone. C...

  (Image is for representative purpose only. Courtesy: Motilal Oswal) In today’s day and age, people invest their savings into various market-linked instruments for a specific tenure and maximize the returns with minimum risk involved. The reasons for making investments are aplenty – some investors invest their money to avail of long-term financial security, whereas others need to maximize their savings to achieve their life goals. Irrespective of the investment options you choose, the decision must be based on your risk appetite, financial goals, investment horizon, and liquidity needs. For this reason, smart investors are always keen to identify and invest in various types of savings plans, which enable them to multiply their money with minimum or no risk involved quickly. Each of these investment plans carries returns and risks, which are directly proportional to each other. In other words, the higher the risk involved, the better will be the chances of returns.  When we ta...

What is the meaning of Investment : Why Investing is Important ? Investing is allocating money towards assets in the hope of making your future better. Investments are made with the view of earning returns, which grows your amount invested to a higher sum.  1. Why Should You Invest? Investing is essential to achieve your goals. It is the only way to make your future better. By making investments, you are also saving and accumulating a corpus for a rainy day. Apart from that, making regular investments forces you to set aside a sum regularly, thereby helping you instil a sense of financial discipline in the long run. 2. Impact of Inflation and the Importance of Investing Inflation, in simple terms, is a surge in the price of materials and services. It decreases the worth of your money and reduces your purchasing power. When there is a rise in the inflation rate, you buy fewer things with the same amount of money. You have no control over the inflation rate. If you are to stay ahead ...

 RBI Caps Withdrawal From Deccan Urban Cooperative Bank: On Friday, February 19, 2021, the Karnataka-Based Deccan Urban Cooperative Bank has been barred by the RBI to grant loans or accept deposits. At the same time, the restriction has been placed with respect to withdrawals which cannot be more than Rs. 1000 from their respective savings bank account for a period of six months. Moreover, the lender cannot engage in any investment nor can incur any liability without the former's permission. It has also asked the lender to refrain from disbursing any payment whether in discharge of its liabilities or otherwise, or dispose of any of its assets except as notified in the RBI direction. "Considering the bank's present liquidity position, a sum not exceeding Rs 1000 only of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn," RBI said in a release on Friday.

 *Itax update* -New *disclosures* asked in the New *ITR forms 1 to 7* are:  *1. House ownership:* Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR4. *2. Passport:* One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified. *3. Cash deposit:* For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY. *4. Foreign travel:* If you have spent more than Rs 2 lakh on traveling abroad during the FY, you need to disclose the actual amount spent. *5. Electricity consumption:* If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you need to disclose the actual amount. *6. Investment details:*  Details of investment qualifying for deduction under chapter VIA w...

 What are Options: Calls and Puts? (Part 2) An option is a derivative, a contract that gives the buyer the right, but not the obligation, to buy or sell the underlying asset by a certain date (expiration date) at a specified price (strike price).  There are two types of options: calls and puts. the strike price specified in the option contract. Investors buy calls when they believe the price of the underlying asset will increase and sell calls if they believe it will decrease. 2. Put options Puts give the buyer the right, but not the obligation, to sell the underlying asset at the strike price specified in the contract. The writer (seller) of the put option is obligated to buy the asset if the put buyer exercises their option. Investors buy puts when they believe the price of the underlying asset will decrease and sell puts if they believe it will increase. Payoffs for Options: Calls and Puts Calls              The buyer of a call option pays...

Sharing a brief on #SaradaPonzi fraud  #Unquote: SARADA SCAM in 12 points 1. The Saradha Scam is a major financial scam and Ponzi scheme run by Saradha Group, a consortium of over 200 private companies. 2. The group collected around ₹200 to 300o billion from over 1.7 million depositors before it collapsed in April 2013.  3. SIT constituted on 26 April 2014 headed by IPS Rajiv Kumar under Mamata Banerjee's TMC. 4. On 9 May 2014 Supreme Court gave charge of the case to CBI on petition by Congress and Left parties. SC asked CBI to investigate the larger conspiracy angle, the money trail and the regulatory bodies involved in the scam. 5. Rahul Gandhi tweeted on 8 May 2014 that "20 lakh people lost their money in Chit fund scam in West Bengal". On 19 April 2016 he tweeted Mamataji is "protecting those looting Bengal". 6. BJP came to power on 26 May 2014 when Modi and his cabinet took oath, but before that the Supreme Court handed Sarada Scam to CBI. 7. TMC representa...

 Futures and Options...1 Options and futures are both financial products investors can use to make money or to hedge current investments. Both an option and a future allow an investor to buy an investment at a specific price by a specific date. But the markets for these two products are very different in how they work and how risky they are to the investor. A futures contract allows you to buy or sell an underlying stock or index at a preset price for delivery on a future date. Options are of two types -- call and put. ... A call seller has the obligation to give delivery to the buyer at the preset price even if current market price is higher than former. An options contract gives an investor the right, but not the obligation, to buy (or sell) shares at a specific price at any time, as long as the contract is in effect. By contrast, a futures contract requires a buyer to purchase shares—and a seller to sell them—on a specific future date, unless the holder's position is closed befo...

  SATARK NAGRIK FOUNDATION ® (Formerly Alert Citizens Forum of India) A7/303, Saket CHSL, Thane West, Maharashtra, India 400601#8879528575 November 30, 2020 Sub: Suggestions for the Union Budget Madam, With reference to the above, we have to submit as under: 1. Request you to pay Interest on SCSS (Senior Citizen Savings Scheme) in all nationalised banks atleast @ 10 percent at par.  Currently it is paid 7.25 percent.  Interest payable quarterly to be paid  monthly.  2. Raise the limit from 15 lacs to 30 lacs.  As senior citizens will be able to get Rs 25000 monthly interest peacefully and gracefully without depending on their children. Don't deduct tax on this income requesting to fill form 15 H etc.  The period of investment should be for 15 years and not five years.  As the span of life will not be more. Make a provision to this scheme that the interest rates should never be reduced but increased to fight inflation.  3. No returns to be fil...

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 The DICGC has started the process of repaying the Deposits in CKP Co-op Bank. Letters have been posted to the depositors.  Please fill in the form and approach the branch indicated in the letter. The Bank has clarified that it will continue to receive the forms after January 30th, 2021 also. Dayanand Nene

Bank Deposit Insurance - how much money you will get if a Bank goes bust?* The DICGC has started the process of repaying the Deposits in CKP Co-op Bank. Letters have been posted to the depositors*.  *Who are eligible to get back their deposits and how much?* *We take a look at these questions:* Last year, the Bank Deposit Insurance Cover has been raised five-fold to Rs 5 lakh — a huge comfort for small depositors - some of whom have been staring at losing their money kept in fraud-hit and mismanaged cooperative banks.  Now if any bank fails, the depositors will get as much as Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI). It took 27 years and a Rs 6,670-crore fraud in multi-state Punjab and Maharashtra Co-operative Bank to raise the cover. The latest revision, sixth since it started in 1962 with a Rs 1,500 cover, has been long overdue. Even though it’s a big jump from Rs 1 lakh, the l...