Reserve Bank of India introduced Public Tech Platform for Effortless Credit Access

The Reserve Bank of India (RBI) is embarking on a pioneering journey to revolutionize credit access through the launch of the Public Tech Platform on...

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Reserve Bank of India Issued New Guidelines on Loan Account Penalties

The Reserve Bank of India (RBI) has taken a significant step to reform the way penalties are levied on loan accounts.

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Indian Government Launched CRCS-Sahara Refund Portal for Cooperative Societies Depositors

The Indian government has initiated the process of refunding Rs5,000 crore to depositors whose funds are stuck in four cooperative societies of the...

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Lightweight Payment System proposed by RBI will ensure Secure Transactions in Extreme Situations

The Reserve Bank of India (RBI) is preparing to revolutionize the Indian payment landscape with its innovative lightweight payment and settlement...

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PAN Mandatory for Cash Deposits of Rs2000 Notes Exceeding Rs50,000

The Reserve Bank of India (RBI) has recently withdrawn the Rs2000 notes from circulation, and individuals who possess these notes now have two...

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DCB bank hiked FD rates upto 8.50% for senior citizens from 16th Feb 2023

The interest rate on fixed deposits under Rs2 Cr has increased at the private sector lender DCB Bank.

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Canara bank has hiked FD interest rates for individuals and senior citizens

Canara Bank has increased interest rates on fixed deposits under Rs2 crore. According to the bank's official website, the new rates are in effect...

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ICICI Bank launches ‘iBox’, a unique self-service delivery facility for customers

ICICI Bank has launched a unique self-service delivery facility, enabling its customers to collect their deliverables such as debit card, credit...

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Home Buyers seek government intervention against Jaypee Infra.

Jaypee Infratech home buyers on Sunday urged the Indian government to direct IDBI Bank to back the state-run NBCC's bid for the purchase of the...

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RBI proposes to change the ATM transaction charges for other bank ATMs

The ATM charges for cards used in other bank ATMs are likely to increase. The Reserve Bank of India in its monetary policy announced on 6 June 2019,...

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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