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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Borrowing for business : 3. Export funding

The Banks and Financial institutions extend various facilities to the exporters. The intention is to promote and facilitate exporters to do more to get more foreign exchange into India.The facilities extended can be categorized into Fund based and Non-fund based facilities.Fund based is more of extending funds to the exporters and non-fund based (as you guessed) is more of extending non-fund base facilities like guarantee or letter of credit etc.,Fund basedPre-shipment facilityPacking creditBasically...

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Borrowing for business : 2. Types of funding available

In the earlier post, we looked at the basic understanding of getting loans. In this post, let us see from where can get loans and the various types of funding available.Normally, the loans are given by Banks, Financial Institutions and NBFCsAgain the facilities that can be availed are categorized into Fund based and Non-fund based.What type of funding that we can get from them? The funding are classified in terms of Duration: Short Term funding and Long Term funding.Security : Secured...

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NSE EMERGE : MSME can tap public for funding

Do you know that Micro, Small and Medium Enterprises (MSME) can tap the public through stock market?Yes, you are reading it right. MSME can get their shares listed through National Stock Exchange of India (NSE).NSE has created a platform called EMERGE for the SMEs to enable them to list their shares in their trading platform. Once the MSME exhausted...

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Borrowing for business : 1. Basics to understand

There are many entrepreneurs who have ideas and passion for pursuing their dreams. Many are successful, few struggle and few create history.What are the challenges they face in their starting stage?Getting financeHow to convert their ideas to a marketable product or serviceMarketing their product or serviceI have worked all through my life starting as finance head, borrowing funds for my organization or for my company's clients. With that experience, I am lining out few tips to those who are looking...

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MSME Series: 1. ATMANITBHAR BHARAT ABHIYAAN - ECLGS

Prime Minister Shri Narendra Modi on 13-May-2020 announced various measures under the umbrella Atmanirbhar Bharat Abhiyaan. That means a self reliant India movement.There are lot of presentations on this Rs. 20 Lakh crore package. I am going to write in my MSME series, each schemes in a nutshell. The Atmanirbhar Bharat Abhiyaan has 5 pillars     (1) Economy : That can take a quantum leap   (2) Infrastructure : World class one with Indian identity   (3) System ; More technology...

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