My pranams to my gurus !

On this auspicious day of Guru Pournima, I would like to thank all my teachers/gurus who made me  a professional. My pranams to all. I tried to recollect my teachers and gurus from my school days.My first and foremost pranams (obeisance) to my parents. Every father is a hero. For me, he is a hero, a man of words, knowledge and wisdom. He is my...

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72nd Chartered Accountants day

Today, July 1 is the Chartered Accountants Day.  It is on this day of 1949 the institute came into existence through an Act of Parliament, The Chartered Accountants Act, 1949.The Institute of Chartered Accountants of India (ICAI) is the second largest professional Accounting & Finance body in the world and third largest professional...

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Sovereign Gold Bond (SGB)?

What is Sovereign Gold Bond (SGB)? SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. Some facts about SGB Issuer   Reserve Bank of India on behalf of Govt of India Denomination  ...

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BEWARE : Phishing attack in the name of CoViD19 testing

The Indian government has issued an advisory to citizens warning them against a large scale phishing campaign which impersonate the Indian government and promises free Covid -19 tests and other resourc...

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Stock Ideas - Federal Bank (CMP : 50.95)

Federal Bank Limited is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different States in India. The Bank is a pioneer among traditional banks in India in the area of using technology to leverage its operations and was among the first banks in India to computerize...

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China products - Boycott or make in India?

Off late, I see lot of people suddenly raising their voice to boycott Chinese products and social media is bubbling.India is a vast country with a huge population & consumer base. In a trading world, we see countries import and export. Not every country is self-reliant on their own. There are dependency on each others. Surplus gets exported.With...

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Proposed regulatory framework for Housing Finance cos

The Reserve Bank of India has come out with draft regulatory framework for the Housing Finance Companies (HFC).I feel this may the fallout of the various HFC which more act as an NBFC and fund their group companies.It is proposed to introduce the concept of ‘qualifying assets’ for HFCs as done in case of NBFC-MFIs. The proposed regulations are as under:Qualifying...

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One person company (OPC)

The One Person Company (OPC) was introduced through the Companies Act, 2013. Like partnership firms having an option to be a Limited Liability Partnership, sole proprietorship can look at a OPC.This will increase better compliance and put OPC in a better position in availing loans/funding. This will bring in the unorganized sector or sole proprietorship...

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Decoy effect - marketing technique / consumer preferences

Having studied, Psychology and cognitive behaviors, this is where most of the consumers, especially in supermarkets fall prey.Have you ever heard about this marketing concept - DECOY EFFECT?The consumers have a cognitive bias while shopping or buying in which they will tend to have a specific change in preferences between two options when also presented...

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Cost inflation index for Financial Year 2020-21

For computing certain long term capital gains, the cost can be adjusted for the inflation and for that purpose, the Central Board of Direct Taxes notifies the cost inflation index every financial year.On 12-Jun-2020, the cost inflation index for FY2020-21 was notified as 3...

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Will EMI moratorium impacts the credit rating?

Many people ask this question, when the EMI moratorium was extended till 31-Aug-2020 - Whether my credit rating by Credit Information Bureau (India) Limited (CIBIL) will go down due to this?RBI in their press release under Statement on Developmental and Regulatory Policies dated 22-May-2020 cleared this that the moratorium period...

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Director's salary - liable to GST? Clarified now.

Circular No: 140/10/2020 - GST dated 10-Jun-2020Finally the government has cleared the air in terms of GST applicability on Directors Remuneration. The contention here is whether the Director is an employee or not. Wholetime/Executive DirectorA whole time-director under section 2(94) of the Companies Act, 2013 is an inclusive definition, and thus he may be a person who is not an employee of the company.Independent DirectorAny such director should not have been an employee or proprietor or a...

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Sweat Equity by Startups - MCA relaxes rules.

The Ministry of Corporate Affairs (MCA) has amended the Companies (Share Capital and Debentures) Rules, 2014, to allow startups to issue sweat equity shares not exceeding 50% of its paid-up capital upto a period of 10 years from the date of registration. What is a sweat equity?It is part of the Share Capital of the Company which is issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available...

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