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...


SBI Offers Kavach Personal Loan of Rs 5 lakh with 8.50% Interest for Covid Treatment

State Bank of India has launched a special personal loan – Kavach – for its customers and their family members who have got Covid.


RBI Directs HDFC Bank To Refund GPS Device Commission Mis-sold to Auto Loan Customers

In a remarkably tough action rarely seen from regulatory authorities in India, HDFC Bank Ltd has been asked to refund commission it earned from GPS...


Housing loan market rebounds with 9.6% growth; loan delinquencies on the rise

The housing loan market in the country witnessed a rebound and registered a year-on-year growth of 9.6% in terms of portfolio outstanding (PoS) in...


Private sector banks failed in passing benefit of low interest rates to borrowers

Private sector banks failed to match the Reserve Bank of India's reduction in the interest rate in the past year to ease the pain inflicted by...


Education loan demand rose in pandemic; 3 lakh new borrowers added

Demand for education loans rose to a record level in 2020 despite the pandemic, writes The Economic Times.


Small personal loan disbursements are up five times in 2 years

According to a report by credit bureau CRIF High Mark, the share of small-ticket loans in personal loans disbursed during the last two years has...


HDFC CEO expects lower home loan interest rates to continue for the next 12 months

The existing home loan rates are at their lowest level in the last four decades and this benign regime is expected to continue for another six to...


Waiver of interest-on-interest scheme to be implemented by 5 November

The Reserve Bank has asked all lending institutions, including non-banking financial companies, to implement the waiver of interest on interest for...


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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
  • The investools will have to be reworked and will offer model portfolios. 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