Retirement

NPS Withdrawal Timelines Shortened

Pension Fund Regulatory and Development Authority (PFRDA) intermediaries have decided to reduce the timelines of various transactions under the...

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Cards

Rent Paid Through ICICI Credit Card to Attract 1% Fee

“Dear Customer, starting 20 October 2022, all transactions on your ICICI Bank Credit Card towards rent payment will be charged a 1% fee.

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Fixed Income

HDFC Bank & IDBI Bank To End Senior Citizen Special Fixed Deposit Scheme From 1st October

Most of the main banks introduced Senior Citizens' Term Deposit schemes for senior citizens during the Covid-19 epidemic.

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Mutual Funds

ICICI Prudential MF Launches Nifty50 Equal Weight Index Fund

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty50 Equal Weight Index Fund.

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Mutual Funds

Aditya Birla Sun Life Mutual Fund launches Turbo Systematic Transfer Plan

Aditya Birla Sun Life AMC Ltd has launched turbo systematic transfer plan (STP), wherein unit-holders can opt to transfer variable amounts from a...

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Retirement

NPS Exit Form to be Treated as Proposal to Purchase Annuity Products: IRDAI

The insurance regulator Insurance Regulatory and Development Authority (IRDAI) has eased the requirement of submitting separate proposal forms by...

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Mutual Funds

HDFC Mutual Fund Launches Three Smart Beta Funds

HDFC Asset Management Company Ltd has announced the launch of Nifty100 Quality 30 ETF, Nifty50 Value 20 ETF and Nifty Growth Sectors 15 ETF, in order...

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Tax

Paying Tax Through e-filing Portal by Using ‘Payment Gateway’ Attracts Convenience Charges, 18% GST

The government has enabled the option of payment through credit card, UPI, and internet banking on the income tax e-filing portal.

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Tax

CBDT Asks the Winners of Online Games to Pay Taxes, File Updated ITR

Tax evasion in the gaming industry has come under the radar of the tax department. The Central Board of Direct Taxes (CBDT) has urged the winners of...

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Regulation

Demat Account Log In Will Not Work Without Two Factor Authentication From 1st October

Holders of demat accounts may not be able to log in to their accounts if they do not enable two-factor authentication by 30 September 2022, according...

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Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
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Debashis Basu
Founder