Loans

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...

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Mutual Funds

White Oak Capital to acquire Yes Mutual Fund

White Oak Capital’s subsidiary GPL Finance and Investments has received capital markets regulator Sebi's approval to acquire Yes Asset...

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Stocks

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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Mutual Funds

New SIP accounts broke record with 24.9 lakh registrations in August

Investments in mutual funds via systematic investment planning (SIP) route hit a new record in August with new SIP account registration hitting 24.9...

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Tax

Tax tribunal rules in favour of actor who got Rs 30 lakh as ‘gift’ from father

The Mumbai bench of the Income Tax Appellate Tribunal, comprising accountant member S Rifaur Rahman and judicial member Ravish Sood, has ruled that...

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Tax

Income tax return deadline extended again to 31 December 2021

The central board of direct taxes (CBDT) has extended the date to file income tax return (ITR) for FY 2020-21 by three months to December 31, 2021...

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Mutual Funds

MF August Inflows: Equity funds added the most assets at Rs 8,667 crore

Mutual fund investors added a net Rs 8,666.68 crore in equity mutual fund schemes in August 2021, compared to Rs 22,583.52 crore in the previous...

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Stocks

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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Regulation

Govt prepares draft bill for defining cryptocurrency assets and their taxation

The government is drafting a new bill to define cryptocurrency and proposes to compartmentalise virtual currencies on the basis of their use cases,...

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Other Insurance

Madras HC’s order for mandatory bumper-to-bumper car insurance put on hold

The Madras High Court has put on hold its earlier order mandating bumper-to-bumper cover for new vehicles sold from September 1, as reported by...

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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.
 
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Debashis Basu
Founder