Is this the end of a 'retail investor friendly' era?
In this issue:
» After telecom scam here comes 'kerosene' racket
» Are you in favour of more foreign banks in India?
» US, UK lying about inflation says Rogers
» The biggest risk to global recovery
» ...and more!!
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To make our stand clear, there is no offense meant to his successor UTI AMC chief Mr U. K Sinha. However, we believe that Mr Bhave's premature exit could leave a lot of clean-up work in the mutual fund industry incomplete. Mr Bhave has strived to provide more safety mechanisms for small investors against the might of companies and mutual funds. But probably this has brought him in the eye of storm of these biggies. And as our founder Ajit Dayal says, an independent SEBI or RBI is not in their interest. In fact there is starker reality that he highlights in the 'Honest Truth'. "In the 1980's over 10% of our annual savings went to the capital markets. Now it is less than 3%. Investors are scared of scams and scamsters. This was an opportunity to clean up the system." But unfortunately, the policymakers in India themselves seem to have got used to living in murky waters. And until retail investors in India find their next godfather, this may be the end of an era.
Do you think Mr Bhave's exit will mean the end of a 'retail investor friendly' era? Let us know your views or post them on our Facebook page.
01:20 |
Chart of the day | |
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01:50 |
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The total quantum of subsidy being 'mis-utilized' in this ingenious manner is a whopping Rs 200 bn. But the bigger shock is that this amount is half of the sum that the government is spending in the NREGA (National Rural Employment Guarantee Act) scheme to generate employment for the poor. So thanks to this racket, the poor are being hit from both sides. The fuel that has been subsidized for them goes to the truckers. And the amount of the government's subsidy that is lost on it could be better spent on generating more jobs for them. So who is to blame? The truckers, the government or just the poor for having bad luck? Probably the system. When there are loopholes there will always be the 'ingenious' corrupt who would take advantage of the same.
02:30 |
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03:03 |
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03:40 |
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Add to that inflation created by central bank printing presses. And oil prices would go soaring over rooftops. To add further, the US has enough trouble at home to worry too much about the Middle East. Rising gas taxes imposed by broke US local governments threaten to push up oil prices anyway. All this could very well see the so-called Western economic recovery "resting in peace".
04:15 |
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India (down 3.2%) was one of the worst performers of the week on concerns of food inflation and a 0.25% hike in key interest rates by the RBI. Among other Asian markets, Hong Kong was down 1.1%. However, the remaining Asian markets closed the week in the green. China and Japan closed the week up 1.4% and 0.8% respectively. US also closed the week in the red, down 0.4%.
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04:45 |
Weekend investing mantra |
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51 Responses to "Is this the end of a 'retail investor friendly' era?"
kewalkrishan
Feb 8, 2011Bhave"s contribution to the Securities market has been immense.His first priority was the of the retail investors.He deserved an extension.Despite reforms in the securities market ,the intermediaries are running amuck.Grievance redressal is in a pitiable state.Complaints against the DPS do not get redressed for years together.
Our complaints against ANAND RATHI ,who lost our shares of Aeiges Logistics(200Equity)&Venlon Polyester(360 equity)given in june,2006(BOID 1201060000421099)have still not been resolved despite writing to SEBI(reference no.MIRSD -1V/ag-DP/cdsl/199509/10 dt. 17-2-10 &CDSL no.IG/SBK/2010/2779 DT.19-5-10,despite dozens of letters &EMAILS to DP/CDSL AND SEBI during the last four years on purely frivolous grounds.And now there is a proposal to form a SUPER REGULATOR FOR THE FINANCIAL SECTOR?
Manoj Kumar
Feb 8, 2011No! I don't think so. Remember what happened after T N Sheshan, the election commission didn't lose its sheen and we continue to get the free and fair elections in all the states, similarly we expect from other independent authorities. Change is the way of life and we should accept it.
Piyush U Singh
Feb 3, 2011One can cite a phase difference in the economic status of developed & developing economies (esp. BRIC). The sentiments of consolidation (prevalent in developed economies) can be very ephemeral - as the issues of inflation & credit-payback may surface in the near term. It would be very interesting to witness the changing recipe of world economy in next 10-20 months - as there are no clear winners. Thanks to the indigenous issues fostered everywhere.
Rajesh Maydeo
Feb 1, 2011
Yes. Today i.e on 1 Feb 2011, the GoI has officially announced the appointment of Shri Sinha as the next SEBI chief. When the mutual fund industry came to know about his appointment some days back, they immediately started voicing their views about the differntial entry load and one should not be surprised if the entry load regime may be introduced in some form or the other by SEBI AND as you rightly said there is no one to protect the retail investor.
Let us hope that the wise counsel will prevail and the new SEBI chief will continue the good doings introduced by Shri Bhave.
kaycee
Feb 1, 2011Bravo BHave!
Well, from the days of close knit brokers strangulating what was then a single market BSE, in late seventies thru to early eighties, Stock Exchange to the retail investor was literally a black box. One had to accept whatever these brokers (predominantly from one community!) wrote in the slip as the best price they could buy or sell in executing your orders. NSE creation, as a fully automated and price transparent mechanism is virtually a one man show - none other than Bhave. Then came the revolution to take its access to every corner of the country. Now I can be in Dalal Street (well, for sentiment sake, though bulk of the action takes place at Kurla's NSE's non-stop Stratus computers, virtually killing the mafia controlled BSE), sitting anywhere in the country (and abroad, oops sadly letting in PNs - not Bhave's making, though), without steppting your feet on every dirty Dalal Street!! I am not kidding when I said BSE is killed - look at the contract numbers you got off BSE on two consecutive days vs same from NSE. Yet, we need the show piece called BSE, besides sentimental reasons, to give some continuing competition to NSE, so that NSE does not become monopoly controlled by a few from the same or other community. Retail investors have to really thank Mr Bhave, for what he had done to give access to all and make the whole process transparent. Consequently, the able few and large ones have since migrated to the board rooms to continue with their fraudulent activities. IN our country, I am sure it is a matter of surprise that a man like Bhave continued on for this long & that in itself is a credit to him, considering the scores of enemies he had created as went along, just to be truly fair & friendly to retail investors. Not at all surprising that MF lobby managed get somebody to press an eject button! The systems put thus far is so difficult for any future nominee of the shady-lobbyists, to undo! Yes, I too wish he continued for a few more years - besides all else, he still has age and energy to his advantage; but, you win some and you lose some. Bravo Bhave!!
RAJEEV SANGRULKAR
Feb 1, 2011YES, SHRI BHAVE'S EXIT IS VERY UNFORTUNATE. HE IS ONLY ONE, TO WHO, RETAIL CONMAN INVESTOR HAS FAITH, THAT HE WILL JUSTIFY THEIR ORIGINAL INSIDE VIEWS ABOUT INVESTMENTS, SINCE HE WAS AWARE OF BOTTOM TO TOP MECHANISM & HOLES IN SYSTEM.
WISH HIM BEST FUTURE
M T CHIDDARWAR
Feb 1, 2011An out and out corrupt govt, worst class politicians, corporates and top govt officials cannot stand an honest, upright SEBI Chairman, who is wedded to the declared purpose of SEBI and doing pioneering work for small investors and in long term for furthering healthy growth of capital markets. PM Manmohan Sing has been the most disappointing and letting down creature ever produced in this country.
MANISH SHAH
Jan 31, 2011IT IS HUMBLY REQUEST TO GIVE VERY SHORT/ VERY BRIEF TO INCREASE OUR INTEREST TO READ U.WHAT ARE GOOD STOCKS TO WATCH ETC. THE HISTORY AND LENGTHY PARA ARE NOR READABLE IN NORMAL WORKING ON DAILY BASIS.
R R Menon
Jan 31, 2011Mr. Bhave has done a great deal of good for the ordinary retail investor. His tenure should be extended for another 2 years to enable him to finish the tasks he has already taken up on hand.
Soumitra Mukhopadhyay
Feb 9, 2011Mr Bhave has been the most investor friendly administrator. In case a super regulator is put in place as suggested by the finance minister, he must find a place in that board.