RBI Implement Transparent Guidelines for Resetting Floating-Interest Rates on Loans

The Reserve Bank of India (RBI) has taken a significant step towards enhancing borrower transparency and empowerment in the lending landscape. On...


RBI releases guidelines for banks on penal charges, bringing some comfort to borrowers

The Reserve Bank of India (RBI) has released a draft circular for banks to ensure fair lending practices, particularly in the disclosure of penal...


Borrowers Don't Have to be Told Individually About Change in Rates: Consumer Court

The national consumer court has ruled that banks are not required to inform each borrower individually about any automatic change in interest rates...


Now File Unresolved Credit Score Complaints With RBI Ombudsman

Customers of registered credit bureaus can now approach the Reserve Bank of India (RBI) for faster resolution of their credit scores and related...


HDFC Raises Home Loan Interest Rate by 50 bps

Lending major Housing Development Finance Corporation (HDFC) has increased its Retail Prime Lending Rate (RPLR) on housing loans -- on which its...


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...


Latest Financial Fad: ‘Buy-Now, Pay-Later’ Loans Fuel India’s Festive Recovery

Indian consumers are raking up buy-now-pay-later (BNPL) installment plans to purchase everything from washing machines to vacations online as the...


HDFC cuts home loan rate to 6.7% as part of festive offer

Non-banking financial company HDFC has announced a festive offer on home loans starting from 6.70%, writes The Economic Times.


SBI waives processing fees, cuts home loan interest rate to 6.7%

As part of its festive season, the State Bank of India (SBI) will be offering credit score linked home loans at 6.7%, irrespective of the loan...


Assessing Parent’s Financial Position Not Required for Education Loans, states Kerala High Court

The Kerala High Court recently held that repayment possibilities of education loans should not be assessed based on the financial position of the...


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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.
Debashis Basu