Fixed Income

Yes Bank Hikes FD Premature Withdrawal Penalty

Yes Bank has stated on its website that it will impose a penalty charge for premature withdrawals for fixed deposits under 181 days.

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Mutual Funds

No Restriction on Redemption From Axis Mutual Fund schemes : Chandresh Nigam

Chandresh Nigam, MD & CEO, Axis Mutual Fund, has said that Axis Mutual Fund will continue to maintain the highest governance standards,

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Tax

No Notice for AY14 to AY16 if Untaxed Amount Less Than Rs 50 lakh: CBDT's Instructions to Field Officials

In a relief for small taxpayers, the Central Board of Direct Taxes (CBDT) has said no reassessment notices would be issued for assessment years (AY)...

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Loans

Banks Follow in RBI’s Footsteps, Start Rate Hikes

Close on the heels of the Reserve Bank of India (RBI)’s surprise increase of 40 bps (basis points) in its repo rate to tame the rising...

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Tax

SC Upholds Tax Reassessment Notices Issued During April- June 2021

The Supreme Court on Wednesday invoked its extraordinary powers under Article 142 of the Constitution to uphold all reassessment notices issued after...

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Mutual Funds

Axis MF suspends two fund managers amid allegations of irregularities

Axis Mutual Fund (MF), India’s seventh-biggest asset manager by way of pooled cash under management, has suspended two fund managers --Viresh...

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Stocks

LIC launches India's largest IPO; issue opens on 4th May

Life Insurance Corporation (LIC) on Wednesday said it will launch its initial public offer (IPO) on 4th May and the issue will close on 9th May.

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Banking

India Post Warns Customers Of Fraud Websites Claiming To Offer Subsidies

The Department of Post (DoP) has warned its customers by sending SMSs asking them not to fall prey for fraudulent claims offering government...

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Banking

SBI Warns About Digital Security: Shares Guidelines for Customers

State Bank of India (SBI) has asked customers to be safe and secure when doing online transactions.

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Consumer Issues

Failure of car manufacturer to provide airbag system should be subject to punitive damages: SC

Failure of a car manufacturer to provide an airbag system should be subject to punitive damages which can have a deterrent effect, the Supreme Court...

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Changes in Our Business Model
 
 
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