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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Stock Market Shifts to T+1 Settlement Cycle

The Indian stock market shifted to the shorter and quicker T+1 or 'Trade plus 1' settlement cycle on Friday. In the first phase, 100 stocks based on...

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Nikhil Kamath: No Easy Money; Less Than 1% Active Traders Beat Bank FDs

The year 2021 saw a record number of new traders and investors. Despite the recent correction, Nifty 50 rose 23% for the year, so it is still very...

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The Great IPO Rush of 2021

As per a report in ‘The Economic Times’, fundraising through initial public offerings (IPOs) touched a record high in the year 2021.

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India’s Demat Account Holders More Than Double in 3 Years to 7.38 Crore in October 2021

As per the information provided by the Securities and Exchange Board of India (SEBI), as of 31 October 2021, there are around 2.75 crore mutual fund...

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Stock Exchanges to Rollout T+1 Settlement In Equities From 25th February

Stock exchanges said that they will introduce the T+1 settlement cycle for trading equity shares and other instruments in a phased manner, starting...

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Weekly sector: Transport & logistics up, stock broking down

The sectors which gained the most during the week were transport & logistics (+11%), footwear (+10%), garments (+10). The biggest losers were stock...

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Demat, trading accounts should be KYC compliant by 31 December 2021

The Securities and Exchange Board of India (Sebi) has extended the deadline for making demat and trading accounts KYC-compliant to December 31, 2021,...

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NSE stays REITs, InvITs inclusion in Nifty Indices

The National Stock Exchange (NSE) has put on hold inclusion of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) in...

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Sebi proposes T+1 settlement for select stocks from 1 January

The Securities and Exchange Board of India has proposed a ‘Trade-plus-one’ (T+1) settlement cycle from January 1, reducing the settlement...

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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