Wednesday, July 24News That Matters

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NRI cannot seek registration as foreign portfolio investor: Sebi

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SEBI has said a non-resident Indian (NRI) will not be allowed to seek registration as a foreign portfolio investor (FPI). However, a fund that has NRIs as investors will not be prevented from obtaining registration as an FPI. FPIs would encompass all foreign institutional investors (FIIs), their sub-accounts and qualified foreign investors (QFI) under a new regime that comes into force on June 1. Existing overseas investor classes such as FIIs, sub-accounts and QFIs will have to convert to the new regime eventually. "An NRI cannot seek registration as FPI," according to information available on the Securities and Exchange Board of India (Sebi) website. "Presently, a fund having NRIs as its investors is not prohibited from obtaining registration as FII/SA. The same practice shall con...

Now 10 year olds can open and operate bank account alone: RBI

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No more piggy banks for little ones because now children above the age of 10 can open their own bank accounts and withdraw, transfer and deposit money all by themselves. Children older than 10 years will no longer need the help of their parents or guardians to open and operate a savings bank account. To boost financial inclusion, the Reserve Bank of India (RBI) said that banks were at liberty to allow minors above 10 years to independently open and operate savings bank accounts. As of now, banks allow minors to operate bank accounts only along with a parent or a guardian. All children and teenagers below the age of 18 are considered minors under current rules. RBI also allowed banks to offer additional facilities like internet banking, ATM, debit card and chequebook to a minor. However, ...

Santosh Garg – who bought Rs 2000 crore shares in one day – got SEBI notice

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Santosh Kumar Garg, a resident of west Delhi, has purchased shares worth more than Rs 2,000 crore on Friday when markets scaled new heights. Securities and Exchange Board of India (Sebi) have issued a showcause notice to examine the transaction closely. The investor hadn't traded extensively on the markets before Friday. Garg, who bought select banking stocks, has been asked to explain the reasons behind the transactions SEBI is keeping a close watch on the market with its surveillance team looking to spot abnormal or suspicious trading patterns. Anything that stands out from routine trading patterns will come under the regulator's scrutiny and be investigated further to prevent any unscrupulous elements from destabilising the market. On Friday, the benchmark Sensex crossed the 23,000...

Highest Celebrity Tax Payers in India

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We have compiled these numbers based on news available in media regarding advance tax paid by these celebrities   Rs Amitabh Bachhan 37 crores MS Dhoni 20 crores Akshay Kumar 18 crores Salman Khan 11 crores Shah Rukh Khan 10.5 crores Aamir Khan 8 crores Hrithik Roshan 7 crores Katrina Kaif 4.5 crores Kareena Kapoor Khan 4 crores Priyanka Chopra 2 crores

Number of income tax payers in India

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Do you know how many people pay Income Tax in India?  How many people in India pay Income Taxes? Just less than 3% of total population !!!   Unbelievable !!!  In a population of 1.2 billion, there are just about 35 million taxpayers. In comparison - There are 138 million taxpayers in the United States. ( out of about 308 million people). So,  Out of the total population, 45% are taxpayers. Out of these 3.5 Crore people, 89% pay taxes in the tax slab of 0 – 5 Lakh rupees, Only 1.3% of all tax payers have income about 20 Lakh! And, of these, there are only 42,800 persons (0.1%) who admitted to having a taxable income exceeding Rs 1 crore. I believe, Salaried class bears most of the tax burden as the Tax is deducted at source by employers. How do you feel about these numbers ??? Also Read -...

No Penalty charge on pre-payment of loans – RBI

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Do you want to pre-pay your loan, but worried about the 1-2% pre-payment penalty charged by bank ? Now you should not worry about that as RBI has directed banks not to levy any penalty on individual borrowers for pre-paying floating loans. RBI said in a notification -   "it is advised that banks will not be permitted to charge foreclosure charges or pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect," RBI Circular  -  RBI/2013-14/582    DBOD. Dir.BC.No.110/13.03.00/2013-14 https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8868&Mode=0 Some banks are charging pre-payment penalty of up to 2% of the outstanding loans. Two years ago, RBI had barred banks from levying foreclosure charges or pre-payment penalties on home...

No penalty charges if minimum balance not kept in dormant bank account – RBI

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Do you have old inoperative or dormant bank acount? Whether Bank is charging penalty for not keeping minimum balance? Now RBI has asked banks NOT to penalise account holders for not maintaining minimum balance in their inoperative accounts. In recent times, there have been cases where due to penalty charges in inoperative accounts, customers had negative balances. And when they went to close such accounts, they were asked to pay up. The latest RBI circular will avoid such situations.  Banks cannot slap charges on customers for not maintaining the minimum balance in inoperative savings and current accounts — in which no transactions have been made for two years. Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit s...

e-Gold by National Spot Exchange (NSEL) – Benefits, Buying Process, Charges & Tax aspects

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All Trading on NSEL is currently suspended. NSEL went bust in July 2013  after two dozen counterparties declared their inability to settle payments amounting to Rs 5,600 crore to more than 13,000 investors. UPDATE - 27  Mar 2014 NSEL is grappling with a payment crisis for settling dues worth Rs. 5,600 crore after it suspend trading activities in July 2013  following a government directive. The Forward Markets Commission (FMC) on Mar 27 2014 allowed scam-hit National Spot Exchange Ltd (NSEL) to convert e-series gold contracts into physical form - a move that would benefit 33,000 investors. --------------------------- Previously we discussed the benefits of trading / investing in electronic form of Gold (Gold ETF, Gold Funds etc) over buying physical gold, coins, jewellery etc. In this post...

Withdraw money from ATM without Card / Bank Account

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Yes, you read it right.. You can now withdraw money from ATM even if you DONOT have Debit card / ATM card or not even Bank Account. On Monday, Bank of India became the first PSU Bank to allow withdrawal of funds to individuals from its ATMs without an account in the bank. The Bank launched a domestic remittance service called 'Instant money transfer (IMT)' that allows cardless cash withdrawal from it select ATMs which are tuned for this facility. Under this facility, a Bank of India customer can send money to anyone using regular Bank of India ATMs or through Internet banking, by using the receiver’s mobile number. How will it work? BoI cutstomer will have to provide the reeiver's mobile number, a sender code, and the amount through a text message or through Internet banking or ATM. ...

IRDA allows insurers to invest in equity ETF

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3/3/2014 IRDA allowed Insurance companies to invest in Equity ETF subject to certain conditions. This will help to increase the inflows in Equity Market. Exchange Traded Fund -  ETF are passively managed fund that tracks an index, basket of assets, commodity etc.  ETFs were introduced in India in 2001. Currently, there are about 33 ETFs with assets under management of close to Rs 11,500 crore held by 6.2 lakh investors. Gold ETFs dominate the market in India. In which ETF, Insurers can invest ? Insurers can invest in only those equity ETFs are Equity ETFs &  registered with Sebi and governed by Sebi (Mutual Funds) Regulations, 1996. that do not hold more than 15% of the fund in a single company. total exposure to a sector does not exceed 30%. have overall expense ratio below ...