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...


Consumer courts empowered to direct refund, compensate buyer for not delivering flat: SC

The Supreme Court (SC) has held that consumer courts can grant relief to flat purchasers who are aggrieved with delay in handing over of the flat as...


Home-buyers Get Priority over Banks in Case of Builder Defaults, Rules SC

In a significant order giving relief to lakhs of home-buyers, the Supreme Court (SC) has ruled that the interest of home buyers is more important...


Second-hand flat buyers have same rights as original allottees, says Supreme Court

The Supreme Court has given a major relief to homebuyers who purchased flats from original allottees but were not delivered the apartments.


RBI fines HDFC Bank Rs 10 crore for irregularities in auto loan book

The Reserve Bank of India fined HDFC Bank Rs 10 crore for irregularities found in its auto loan book. The regulator found the bank deficient in...


Deadline for Hallmarking Gold Jewellery Extended to 15 June

The government has extended the deadline for hallmarking gold jewellery to June 15 from June 1 in view of the Covid-19 second wave, writes The...


Obtain learners license, renew driving license and more online by getting Aadhar authentication

Driving license holders and vehicle owners can now avail 16 types of online and contactless services and avoid the hassles of visiting offices of...


Government may extend deadline for FASTag use for toll payment on National Highways

The government is set to extend the deadline for 100% collection of toll charges on the National Highway (NH) network through FASTag, reports The...


More than 50% of Indians recharge their phones online

The share of digital mobile phone recharges in India crossed 50% for the first time in 2020 as the pandemic led people to minimise stepping out to...


Flying out of IGI Airport in Delhi to be a bit costlier from February

The Airports Economic Regulatory Authority (AERA) has allowed Delhi International Airport Ltd to levy Rs 65.98 plus taxes per departing passenger...


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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.
Debashis Basu