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Friday, September 30, 2016

INDIAN RETAIL INVESTORS:- MY OBSERVATIONS ABOUT INDIAN STOCK MARKET


1. NEVER INVEST JUST THAT SOMEONE ADVISED YOU TO INVEST.DO NOT DEPEND ON TIPS

2. STUDY THE BUSINESS MODEL AND SCOPE OF FUTURE EARNINGS AND SPECIALLY GENERATION OF FREE CASH BY COMPANY.(FREE CASH MEANS PROFIT BEFORE DEPRECIATION BUT AFTER TAX AND ADJUST WORKING CAPITAL INCREASE AND DECREASE BETWEEN DATES OF COMPARISON) NET EFFECT
WILL SHOW THE REAL CASH GENERATED BY COMPANY.REMAIN CAUTIOUS WITH COMPANY WITH VERY HIGH PE RATIO AS COMPARED TO PEERS AND INDUSTRY.

3. CHECK THE INTEGRITY OF PROMOTERS.

4. NEVER INVEST ON THURSDAY IN RISING MARKETS AS ON FRIDAY BROKERS PULL THE SHARES DOWN

5. INDIAN MARKET IS TRIPLE SANDWICHED AMONG USA (CLOSING AFTER MIDNIGHT)–FOLLOWED BY ASIAN IN THE MORNING AND THEN MID DAY BY EUROPEAN AND HENCE THEY IMPACT OUR MARKETS.KEEP A TRACK ON THESE MARKETS.

6. READ MAIN NEWS PAPERS LIKE THE ECONOMIC TIMES/SITE LIKE MONEY CONTROL TO KEEP WATCH ON NEWS RELATED TO STOCK SPECIFIC COMPANIES.

7. AVOID PLAYING INTO DAY TO DAY TRADING AND F & O UNLESS YOU HAVE SURPLUS MONEY AND EXPERTISE.

8. INDIAN ECONOMY DEPENDS ON OIL PRICES-GOING UP GOOD FOR USA BUT NOT FOR INDIA.

9. IF YOU ARE SITTING ON GOOD PROFITS THEN TRY TO COME OUT AROUND DIWALI DAYS AS MUTUAL FUNDS AND FIIs LIQUIDATE SOME PERCENTAGE OF THEIR HOLDING 7 TO 10 DAYS BEFORE CHRISTMAS FOR DIVIDEND DISTRIBUTION TO INVESTORS.

10. INVEST IN COMPANIES HAVING REGULAR GOOD VOLUMES ON DAY TO DAY BASIS AS IT IS EASY TO COME OUT WHEN YOU NEED MONEY.

11. BE CAREFUL AT THE TIME OF BUYING AND SELLING THOSE SHARES WHERE THERE IS WIDE GAP BETWEEN SELLING AND BUYING PRICE QUOTES.

12. AND LAST A WORD OF CAUTION.STOCK MARKET CAN GIVE UNEXPECTED JERKS SO PLEASE MAKE SURE YOU HAVE SUFFICIENT FUNDS PARKED SAFELY TO MEET YOUR DAY TO DAY EXPENSES FOR
SURVIVAL.

13.BE EXTRA CAREFUL ON LAST THURSDAY OF THE MONTH BEING EXPIRY DAY. 


HAPPY INVESTING AND GOOD LUCK! 




Sunday, September 25, 2016

DEDICATED TO ALL CORPORATE GUYS WORLD OVER

Project Manager is a Person who thinks nine women can deliver a baby in One month.

Procurement manager is a Person who thinks it will take 18 months to deliver a Baby.

Operations Head is one who thinks single woman can deliver nine babies in one month if works harder.

Marketing Manager is a person who convinces anyone that he can deliver a baby even if no man and woman are
available.

Financial Budget Team thinks they don't need a man or woman; they'll produce a child with zero resources.

Planning Team thinks they don't care whether the child is delivered, they'll just document 9 months.

Quality Auditor is the person who is never happy with a delivered baby.

HR Manager is a person who thinks that... a Donkey can deliver a Human Baby - if given 9 Months.

Customer is the one who doesn't know why he wants a baby….!!!!!

Thursday, September 22, 2016

WHAT NEGATIVE RATE OF INTEREST BY SOME DEVELOPED COUNTRIES LIKE JAPAN SIGNIFIES? LOOKS LIKE RENTAL FOR KEEPING CASH (OF A DEAD PERSON) IN THE LOCKER WITH THE BANK

UNDERSTANDING THE MEANING OF NEGATIVE INTEREST RATES?

Negative interest rates mean that depositors which in case here are the banks in a country pay money to save their money, being just a reversal of the normal rules of banking and economics.Like general public keeping accounts at a local bank, lenders hold their unused cash at country's central banks like the USA Federal Reserve, the European Central Bank and the Bank of Japan. Normally, they receive a small amount of interest in return.But with negative rates, central banks charge a fee instead. The idea is to encourage banks to put their money to more productive use, lending it to households and businesses. Negative rates are supposed to then ripple through contry economies by lowering the cost of borrowing for all — something that should encourage economic growth.It sounds like a lay man taking on rent a bank locker to keep his/her cash .How funny?

Which countries have negative rates?

Those with very low levels of inflation or deflation, meaning falling prices associated with weak economic growth. The European Central Bank, which oversees monetary policy for countries that use the euro, introduced negative rates in 2014. Denmark, Sweden and Switzerland, which are not part of the eurozone, also have negative rates.Japan’s central bank followed in January, announcing that it would charge commercial banks a fee of 0.1 percent on a portion of their reserves that they keep with it.

What are the economic dangers of situation like negative rates ?

1.It shows that countries economic activities are not picking up.

2.Indication of fall in corporate earnings/revenues due to lower consumer prices and thereby companies failing to repay loans to banks.

3.Overall economic sentiments are low.Public confidence go low.

4.can lead to banks failure


5.Stock markets may sooner or later collapse due to money lying idle with banks without any productive end use as corporate expected future earnings which form the basis of Stock prices valuations will be in reverse order.Companies having high stock?share valuations not supported by Price /earnings ratio (PE ratio) will be the first to get harsh beating at stock exchanges and bringing the dooms day for Retail Investors in general.This is also clearly visible as to why USA fed Reserve is finding it difficult to raise interest rates and still having dovish tone.






Sunday, September 11, 2016

MASALA BONDS

The term Masala Bonds is used to refer to rupee-denominated borrowings by Indian entities in overseas markets. The International Finance Corporation (IFC), the investment arm of the World Bank, last November, issued a ₹1,000 crore bond to fund infrastructure projects in India. These bonds were listed on the London Stock Exchange (LSE). IFC then named them Masala bonds to give a local flavour by calling to mind Indian culture and cuisine. While it may seem odd to name a staid debt instrument after food stuffs, it has been done in the past. Chinese bonds, named Dim-sum bonds after a popular dish in Hong Kong, have been around for while. So have Japanese bonds named Samurai after the country’s warrior class.

Monday, September 5, 2016

When I visited the Vatican City

Dear Readers

I was born as Hindu in Mission Hospital at Indian Border town Firozpur (Punjab) and was nursed by Sister named Kamla a Catholic Christian.(Fortunately my Hospital Birth card carries her name on it) And being the last and youngest of all siblings I was the only one who was delivered in a hospital.

My mother who made me a man of principles and with basic human Values always wanted me to grow big in life and go around the world and also to visit Vatican City once in life as per the wish of my nurse Kamla. Due to blessings of almighty I could make it in May 2008 to visit Vatican City and could feel the divine atmosphere prevailing there .I always believed GOD is ONE although worshipped by different peoples by different names around the World.Although I never saw my nurse when I grew up but I raised my head above to tell her that I made her wish come true.I could get chance to visit many places of Worship of Christians -Brussels, Amsterdam,Italy,Heidelberg,Austria to name a few and every time I thanked Kamla for this.






Why attribute irrational miracles to Mother Teresa? an important article by Pallava Bagla published in The Economic times Sep 4,2016


In her lifetime, she had already earned the title 'saint of the gutters' and to the thousands of destitute and needy who she cared for she was a 'living god'. 

And today, Agnes Gonxha Bojaxhiu, a Catholic nun who served the poor inKolkata, is formally bestowed the title of Saint Teresa by Pope John Paul II at a function at the Vatican City. 

Her journey from her birth place Skopje, now in Macedonia, to her yeoman work in West Bengal is itself a 'miracle' but after her death to attribute this diminutive woman with a Herculean grit for serving the poor of having performed 'miracles' like curing two people of diseases borders on irrationality. 

Mother Teresa should have been made a saint without having so-called miracles associated with her name. 

It is worth highlighting that the Constitution of India in Article 51A (h) enunciates "to develop the scientific temper, humanism and the spirit of inquiry and reform". This is where attribution of so-called miracles comes into conflict with the under standings of modern science. But India is complex civilisation where faith, science, religion and superstition all co-exit mostly in harmony but occasionally in conflict. 

India's best known living scientist and recent Bharat Ratna Professor CNR Rao on being asked said "No,I do not believe in miracles. One in thing general I will tell you, in India there is confusion between religion, faith, superstition and science. 

"Faith everybody should have one thing or the other, like if in science you must have faith in the laws of
physics. Faith is something everybody should have. If somebody has faith in philosophy or God, I have nothing against it; however, it should not give rise to superstition. 

"Even Einstein said nobody could be without faith. Religion also you can have any religion, but do not mix it up with other things in life. Faith has nothing to do with believing in things that cannot happen against the laws of physics." 

But for Mother Teresa to officially become a saint she needed to perform some miracles and according to the National Catholic Register: "The first [miracle] took place in West Bengal, India, and involved the healing of an Indian woman, Monica Besra, whose abdominal tumour was so severe that her doctors abandoned hope of saving her. 

"Taken into the care of the Missionaries of Charity, she continued to decline and endured such agony from the tumour that she could no longer sleep. On the one-year anniversary of Mother's passing, the sisters at the home placed a Miraculous Medal that had been touched to the body of Mother Teresa on Besra's stomach. The suffering woman fell asleep, and when she woke up, her pain was gone. Doctors examined her and found the reason why: The tumour had disappeared completely."

Saturday, September 3, 2016

DOUBLE WHAMMY;WHAT THE SURROGACY BILL BRINGS FOR INDIA

By Prabha Raghavan & Divya Rajagopal, ET Bureau | Sep 03, 2016, 03.33 AM IST 

It took two decades of savings, a long, unsuccessful attempt at adoption and an uncooperative family before Mrs.X and her husband used the last resort - a surrogate mother - to have their baby. Sitting at her doctor's clinic in south Delhi, Mrs X, now 48, narrates how the painful and expensive invitro fertilisation (IVF) treatment failed her four times since 1995 and how her endeavor to adopt caused a furor after her in-laws found out. That's when she and her husband decided to have a child through surrogacy, where a young woman bears a child for someone else. In India, a surrogate mother often bears the child for a price, which benefits both sides. However, if the Indian government has its way, a new bill will all but shut the doors on surrogacy, one of the least-used options by childless Indians. Last week, the Union Cabinet approved the Surrogacy (Regulation) Bill, 2016, which is aimed at curbing unethical and commercial practices and preventing the exploitation of poor women as substitute mothers. 

In the process, however, the bill proposes to narrow options for those wanting children and shuts out an income-earning opportunity for women as surrogate mothers. For one thing, the bill makes only married couples eligible for surrogacy - no single parents, live-in couples and gays, please. The couple must certify that one of them is medically unfit to reproduce naturally. Those who have biological or adopted children will not be eligible for a surrogate, a point emphasised by external affairs  . Sushma Swaraj, who targeted celebrities opting for surrogacy after having their own biological children. 


"I am sad to say that what was started to fulfill a necessity is now treated as fashion," Swaraj had complained. She was one of the members of the committee that prepared the bill. These restrictions, especially those based on marital status, have drawn criticism. "When the law allows adoption by a single parent, why not allow surrogacy too?" Indira Hinduja, a Mumbai-based infertility specialist who delivered India's first test-tube baby in 1988, asked soon after the cabinet approved the bill. In response, health minister JP Nadda said a family institution was required to protect children from potential abuse and the adoption laws, too, need many changes that will be taken up later on. Swaraj had suggested that couples who don't have close relatives who can offer to be surrogate mothers should look at adoption more closely. As far as surrogates are concerned, the government's heart might be in the right place in wanting to curb the exploitation of poor women hired to bear children for for others. Not that the government wants to completely ban the renting of wombs, but it wants to make it an altruistic practice, where eligible women offer to be surrogates for family members in need. The bill says surrogate mothers should be married and should have given birth to a healthy child before.

Women who are foreign nationals, non-resident Indians or overseas citizens of India cannot become surrogate mothers. "How many women will agree to bear someone's child for nine months for altruistic reasons without any advantage? Could there be the possibility of coercion of daughters-in-law in families?" asked Duru Shah, President of Indian Society for Assisted Reproduction, a lobby group of top IVF doctors. Experts say couples in India try various medical treatment options before they go for surrogacy, which can cost as much as Rs 15 lakh. 

Dr Aniruddha Malpani, who runs an IVF clinic in Mumbai, says that only 10,000 surrogacy treatments are done in a year, which is too small a number. Even so, it eliminates a lifeline for those willing to become surrogate mothers. In a south Delhi IVF clinic, 25-year-old Priya (name changed), a surrogate mother, is waiting for her appointment. With her dupatta, she tries to cover her bulge, but the seven-month baby she carries is difficult to hide. The mother of two children aged 6 and 4, Priya agreed to be a surrogate for a couple after her neighbour told her about the possibility of earning more than what she would as a daily-wage labourer. 

With a family income of Rs 8,000 per month, it was difficult for Priya and her husband to feed their two children, let alone educate them. Priya decided to rent her womb so that she could secure a better future for her children. "There was a time we didn't even have money to buy milk. Now, I'm able to feed myself and my kids and even pay their school fees," Priya told ET. She has been promised `4 lakh, excluding the treatment and delivery costs, which the commissioning couple pays for.Not all suurrogate mothers are treated the way Priya is - and that was the genesis of this bill. 

The lack of provisions to regulate surrogacy, which was legalised here in 2002, made it easy to commission economically poor and illiterate women to be surrogates, a practice that put many of their lives at risk, according to activists and researchers. Some surrogates reportedly rented out their wombs more than once despite the perils associated with pregnancy. The bill proposes a fine of `10 lakh and jail terms of up to 10 years for violations. Many IVF specialists, while welcoming clearer guidelines for strict punishment, have frowned upon the proposed restrictions and some have even called it an attempt to impose a certain religious or moral ideal in a secular country. 



"This is a black day in the history of science and scientific development. We have put our country back by many years," said Rita Bakshi, who runs the International Fertility Centre in New Delhi. Health minister Nadda has said that while the government is open to ideas to improve the bill, provisions to protect women from being exploited were non-negotiable. He cited instances where children born through surrogacy had been abandoned and a surrogate woman's family not being compensated after she died during childbirth. Commercial surrogacy is banned in most countries, argued Nadda. "The reality is that the government has been forced to step in because the medical profession failed to regulate itself," said Malpani. 

"So when an IVF doctor takes advantage of the fact that there is no law or regulation and performs completely unacceptable treatments because he is not barred from doing so by the law and other doctors keep quiet and do nothing about this, then how can the government continue to remain a silent bystander?" There is unanimous agreement among healthcare professionals on the need for regulation - what's open for debate is how it should be done. Malpani suggested that surrogacy should be governed by the Central Adoption Resource Authority, which can help coordinate the process and keep a check on exploitation. The other issue is whether the state should have a say on what women do with their bodies. 


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Laws related to registration of property transactions in India

Source: Housing.com/news


The law of registration of documents is contained in the Indian Registration Act. This legislation provides for the registration of various documents, to ensure conservation of evidence, prevention of fraud and assurance of title. Documents of property requiring mandatory registration As per Section 17 of the Registration Act, 1908, all transactions that involve the sale of an immovable property for a value exceeding Rs 100, should be registered. This effectively means that all the transactions of sale of immovable property have to be registered, as no immovable property can be purchased for merely Rs 100. 

Additionally, all transactions of gift of an immovable property, as well as lease for a period exceeding 12 months, are also mandatorily required to be registered. In special cases, when a party to the transaction cannot come to the sub-registrar’s office, the sub-registrar may depute any of its officers to accept the documents for registration, at the residence of such person. 

The term ‘immovable property’ includes land, buildings and any rights attached to these properties. See also: Stamp duty is compulsory during property registration Procedure and documents required The property documents that need to be registered, should be submitted to the office of the Sub-Registrar of Assurances within whose jurisdiction the property, which is the subject matter of transfer, is situated. The authorised signatories for the seller and the purchaser, have to be present along with two witnesses, for registration of the documents. 

The signatories should carry their proof of identity. The documents that are accepted for this purpose, include Aadhaar Card, PAN Card, or any other proof of identity issued by a government authority. The signatories also have to furnish the power of authority, if they are representing someone else.  In case a company is party to the agreement, the person representing the company has to carry adequate documents, like power of attorney/letter of authority, along with a copy of the resolution of the company’s board, authorising him to carry out the registration. 

You need to present the property card to the sub-registrar, along with the original documents and proof of payment of stamp duty. Before registering the documents, the sub-registrar will verify whether adequate stamp duty has been paid for the property, as per the stamp duty ready reckoner. In case there is any deficit in the stamp duty, the registrar will refuse to register the documents. Time limit and fee payable Documents that have to be mandatorily registered, should be presented within four months from the date of their execution, along with the requisite fee. In case the time limit has expired, you can make an application to the sub-registrar for condonation of the delay, within the next four months and the registrar may agree to register such documents, on payment of a fine that may be up to ten times the original registration fee. 

The registration fee for property documents is 1% of the value of the property, subject to a maximum of Rs 30,000. Earlier, the documents that were presented for registration, would be returned to you after a period of six months. However, with computerisation of the offices of the sub-registrar, the documents (bearing the registration number and proof that the documents have been registered by the registrar) are scanned and returned to you on the same day. Impact of non-registration Failure to register the purchase agreement of a property, could put you at a huge risk. Any document that is mandatorily required to be registered but is not registered, cannot be admitted as evidence in any court of law.

Read more at: 
http://www.moneycontrol.com/news/real-estate/laws-related-to-registrationproperty-transactionsindia_7395301.html?utm_source=ref_article