Retirement

NPS Voluntary Contributions via D Remit Can Now be Done via UPI

National Pension Scheme (NPS) subscribers currently deposit their voluntary contributions under D-Remit into their NPS Tier I/II accounts from their...

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Mutual Funds

Kotak Mutual Fund Launches Smart Facility for SIP, STP and SWP

Kotak Mutual Fund has launched Smart Facility for SIP, STP and SWP for all investors.

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Banking

RBI Cancels The Licence Of Rupee Co-operative Bank Pune

The Reserve Bank of India (RBI) on Wednesday said it has cancelled the licence of Rupee Co-operative Bank Ltd, Pune in compliance with the Bombay...

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Loans

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...

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Consumer Issues

SC Issues Notice on Plea By Sucheta Dalal That Information on Unclaimed Amounts Lying In Dormant Accounts Be Made Publicly Available On a Centralised Platform

The Supreme Court on Friday issued notice to ministries of finance, corporate affairs, Reserve Bank of India (RBI) and Securities & Exchange Board of...

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Tax

GST on Rent: Government Clarifies on the New Rule on Residential Properties

The union government has clarified on the new goods and services tax rules (GST) on rent, which came into effect from 18th July.

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Banking

NRIs Can Now Pay Utility Bills For Families in India via Bharat Bill Payment System

The Reserve Bank of India (RBI) said that it would allow cross-border inward payments on the Bharat Bill Payment System.

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Tax

Income Tax Returns: Time Limit for Verifying ITR Reduced to 30 Days from 120 Days

The Income Tax department has reduced the time limit for e-verification or hard copy submission of the ITR-V (income tax return verification), post...

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Retirement

You Can No Longer Make Contributions to NPS Tier II Accounts Using Credit Card

The Pension Fund Regulatory and Development Authority (PFRDA) has decided to stop accepting payment of subscriptions/contributions by using credit...

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Mutual Funds

ICICI Prudential Mutual Fund Launches Nifty Infrastructure ETF NFO

ICICI Prudential has announced the launch of ICICI Prudential Nifty Infrastructure ETF, which is an open-ended Exchange Traded Fund (ETF) tracking...

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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