Investment banks await clarity on GST impact on financial services

Investment banking experts are waiting for clarity on rules that will govern how the Goods and Services Tax, which is proposed to be implemented in April 2016, will be implemented on financial services, saying it will impact their competitiveness.

Analysts say that while currently the location of the client is immaterial for either an investment bank or the client himself, this would change once GST is implemented.

“Hypothetically if a Mumbaiheadquartered investment bank has a mandate of an Orissa-based firm for an IPO how would the GST be calculated?” said Sameer Gupta, financial services tax leader, EY.

“One of the biggest issues is which state should charge GST, where the client is located or where the service provider is located? If the rules are linked to the latter, it could mean that many niche investment banks could become more expensive compared to those who have an office where their client is,” he said.

If that is the case, then players such as ICICI and SBI, which have a national presence, will have a clear competitive advantage over multinational rivals that operate from a place like Mumbai or New Delhi and serve clients across the

PM Modi’s Digital India project: Government to ensure that every Indian has smartphone by 2019

The Digital India project that aims to offer a one-stop shop for government services would use the mobile phone as the backbone of its delivery mechanism. The government hopes the Rs 1.13-lakh crore initiative that seeks to transform India into a connected economy to also attract investment in electronics manufacturing, create millions of jobs and support trade.

In an interview with ET, telecom minister Ravi Shankar Prasad said the government of Prime Minister Narendra Modi wants to ensure a smartphone in the hands of every citizen by 2019. Currently, nearly 74% of the population has mobile phones, most of which though is in the hands of urban India.

“We want to ensure that all the services can be provided through a mobile handset, especially, health, education, various government services and retail,” Prasad said. “We want it (handset) to be used as a tool for empowerment. We will need to incentivise its usage in order to promote the social and the economic objectives of the government.”

In order to use the mobile phone to help achieve financial inclusion, the government will need to structure the delivery of financial services in a

Top 10 companies that pay more than 25% dividend

Ask the average Indian what he wants from his investments and the answer would probably be, ‘stable returns’. This is why bank fixed deposits and small savings schemes are so popular while stocks account for less than 5% of total household wealth. Individuals stay away from stocks because it’s a volatile asset class. But take a closer look and you will find that some companies have given steady income to investors. They have consistently given back a significant chunk of their net profits to shareholders in the form of dividends.

Not surprisingly, such stocks are a huge draw among investors. We scoured the past 10 years’ data for companies that have consistently paid more than 25% of their net profits as dividends, while also outperforming the index in at least seven of the 10 years under consideration. Out of the BSE-500 universe, only 38 companies made the cut. However, only a handful of these have the enviable record of beating the Sensex on at least seven of the 10 occasions.

Our cover story looks at the top 10 dividend-paying stocks that have beaten the Sensex at least seven times

The Best Cars for a New Driver

Do you have a new driver in your family? If you do then you know it’s not about looking good when it comes to getting them a car. It comes down to making sure that they’re going to be safe when they’re some of the most dangerous drivers on the road. So what vehicles are going to keep them the safest? Well there are actually several that are not too big but also not too small. This can be extremely important with newer drivers.

Honda Accord Sedan

The Honda Accord is a moderately priced vehicle, actually coming in at a pretty good price and with some pretty great fuel economy as well. This is extremely important because teens tend to not have a lot of extra money to put in the gas tank and you don’t want to be giving them all kinds of money to fill it. It’s also got power outlets and a good audio system that runs Pandora. Plus it’s a top safety pick that has extra, added safety features for just a small upgrade.

Hyundai Sonata

At just a little less money this vehicle is also a sedan, which means

The rise of Infrastructure debt investment management


Debt investment management is an activity that came into prominence post global economic crisis that surfaced in 2008. This was the time when it started to become very difficult to obtain funds for infrastructure projects and the gap between demand and supply of funds started increasing. Banks that used to be the backbone of project financing were strapped by several restrictions that curbed lending to infrastructure. Governments had never been a stable source of finance and funds. Against this backdrop, infrastructure debt funds of private institutions started emerging that provided institutional investors with the much needed conduit for investing directly in infrastructure projects. Today, infrastructure debts are one of the most attractive long term investments for institutional investors and its demand is rising.  According to projections available, the annual gap between funds needed and available public funds is around $500 billion and this trend is likely to continue till 2030.

The story of the beginning

With so much money flowing, there is need for efficient management of investments on behalf of investors to ensure that their investment goals

Gap Insurance for a Brand New Motor Vehicle?

Copy of Gap-insurance-help

Today, more and more banks have special financial packages and they offer long loans to people who want to buy a new car. It seems like great news. Now quite! Of course, long loans means that we will have more time to pay it off and that we can count on a lower monthly installments. On the other hand, this longer period means bigger worries, because some really nasty things can happen during this time. For example, your new car can be stolen or totaled.

Most people think it doesn’t have to be big problem because they have universal insurance plan. But this people don’t know one important thing: every insurer will pay you only for the actual value of your vehicle, not the price you have spent on a new car. This means that you will have to face the brutal reality and that fact that your car doesn’t worth as you thought. This is why gap insurance is so important. It is the best way to resolve this unpleasant situation and fill the gap between

5 Different Ways of Getting an SME Business Loan

In order to generate huge profits from your small or medium-sized business, you need to first invest huge sums of money. Without putting in a lot of money you cannot expect to earn a lot of profit, however, it is not very easy to arrange the required amount of money to start a new business or expand your existing one.

Many budding small and medium enterprises do not have any idea where to get the business loan or SME loan they need, what to look for, and how to apply for one. Here is a quick view of the 5 different ways of getting an SME loan.

  1. Online SME Loans

Over the past few years, the trend to get online SME loans has gained a lot of popularity.  Online lenders such as OnDeck and Kabbage have slowly but surely replaced the traditional business loanalternatives. The process to apply for an online SME loan is pretty simple and straightforward and is completed within minutes as opposed to the traditional business loan process which takes days and sometimes even weeks.

  1. Home Equity Loan

All those lucky ones who own a home or any

Rules to Follow for Successful CFD Trading

CFD trading is an interesting way to invest your money. In CFD trading, you speculate on the rise or fall in price of a particular asset and if your prediction turns out to be correct, you will profit from the trade. Here are a few rules to follow that will help you in CFD trading.

  1. Keep Your Emotions Under Control

Fear and greed are the two most common emotions surrounding CFD trading and investing in general. The “gut feeling” may work occasionally, however, emotional trading can also led to impulsive decisions – which you may end up regretting in the future. Logic works better than emotional trading. Thus, if you start to feel a little overwhelmed, it’s time to take a few moments and breathe deeply before making a CFD trading decision.

  1. Don’t Put Your All of Your Eggs in One Basket

Placing all of your investing capital in a single CFD trade is the best way to mess up your chances of success. Diversification is probably the most important rule in investing, CFD trading included. As a rule of thumb, each of your trades should be 2% or less of your

The 6 Best Things about Content Writing

There are many facets to being a good content writer it is one skill which will always help you at some point in your life. Most people don’t find the time to sharpen their writing skills but being a content writer helps you explore your thoughts and see how well they can be put into words. If you come from an environment where reading well and being aware of the spoken word is considered important then you are quite well placed to be a content writer. For others, they need to put in some extra effort to develop themselves as freelance writers. It becomes slightly more challenging when you are writing in languages other than your mother tongue. Still, step by step writing can be improved by taking tips from good sources.

Content writing especially online offers vast amount of opportunities to write and earn, let us have a look at some of the points which make it quite rewarding –

  • Firstly, it helps you arrange your thought process. The ability to analyse different subjects and come up with many interesting ideas to write about sharpens your It helps in the overall communication which you may use in everyday life or

Best Ways to Make the Most Money in an Estate Liquidation Auction

Having an estate liquidation auction is a great way to get rid of a bunch of household items all at once and rake in a chunk of money in the process.

Yet holding an estate sale willy-nilly isn’t the way to go. If you want to make the most money possible, you need to dedicate time to careful planning. Below are a few of our top tips on how to make the most of your estate liquidation auction.

  1. Choose the Right Date

Set the date for your estate liquidation auction ahead of time. Most are held over the course of three days. Be sure that your dates don’t coincide with a major holiday as this will likely mean less foot traffic. It’s also important to schedule your sale during a time of year when rain won’t be an issue.

  1. Take Track of Inventory

The golden rule here is “don’t throw anything away.” Unless an item is absolutely unsalable, you should try to sell it at your auction. Take photos ahead of time and place these online. Doing this helps draw in those that are looking for a specific

ADX line to determine the potential of the trend

Not only beginners, but experienced traders often suffer a seemingly simple question: how to determine the potential of the Forex trend? The main problem is that it is difficult to understand what is happening now on the market: the corrective waves are coming in response to an impulse or a similar trend has decided to radically shift. If you make a mistake in the assessment of the situation, you may lose profit or, at best, to bring down the strategy. Proper identification of opportunities tendencies gives unconditional competitive advantage and self-confidence in forex market analysis.

To determine what the potential forex trend?

Determining potential trend will not tell you how much you will receive after completion of the transaction, and get it at all, since the answer to these questions need some additional calculations. However, the potential of forex weekly analysis will tell you, how long will the trend, and this is very important information for a good deal.

In today’s trading oscillators are widely used – applications that are indicators of the various market factors. Standard oscillator – a set of several indicators. It now will be on the popular analyzer ADX.

ADX oscillator Line

The chart is the middle line. Its

Best Way to Find a Deal on a Home

House hunting can be time-consuming and frustrating. The variety of options involved could befuddle anyone, and who wants to spend hours calculating mortgage rates and down payments? However, to truly find a good deal on a house, a good amount of legwork is a must. It will be well worth it, as by shopping around the right way, you may end up saving hundreds or thousands of dollars.

The idea of new house can be enticing, and it is tempting to spend more for something that looks better or fits an ideal. Take time to look around at other factors – the neighborhood, the commute time, how much your neighbors houses are worth – in order to avoid any pitfalls. Another huge money suck is unforeseen repairs and expenses, so many sure you do a thorough one-over of the house before you commit to buying. Talk to a local mortgage lender in Phoenix, AZ if you’re not sure what you’ll be able to afford based on you rincome.

Using an estate agent is a good option if you want to be aware of the best deals around. While they will cost you, the cost will be offset by

Quicken is Saving Me Money

I have always kept meticulous financial records. It is not hard to do when you don’t have a whole lot of money though! I have a great job, but I also have a lot of bills because of a medical condition that I had as well as a different condition that cost me a lot of money for my dog. I have no complaints though because we are both still here, and I feel blessed for that. Once I paid off my dog’s vet bills, I decided to take the plunge and get Quicken 2016.

My brother had been after me for a long time to get with modern times and get a software program that helps me with my banking details, but I never saw the need. Well, they say hindsight is 20/20 vision, and this time was no different. Read more

Post Flood Cleanup

If you’ve been affected by flooding, it’s critical to start cleaning up mud, dirt, and debris as soon as possible after the water recedes. Mud left behind by floodwaters can contain a variety of microorganisms that can cause illness and infection, and the water can cause damage that can make your home a health and safety hazard. It is possible to recover and save your home from problems with a thorough cleaning. Shoveling out the mud will be physically demanding, especially if you haven’t used a shovel in years (or ever). If you aren’t keen on cleaning up yourself, or not sure if you can do it, there are companies that specialize in water damage that can handle the mud removal for you.

Flooding will affect every room on the ground floor or the basement of your home. It is possible to repair the water damage in your home, if you approach the job systematically and thoroughly.

The kitchen

The first order of business in cleaning a flooded area is to remove the mud and potential pathogens. Start by soaking all glass, plastic, and wooden dishes and utensils in disinfectant solution. Chlorine bleach is

Talking About Selecting A Financial Advisor

You probably have some money you want to invest, if you are seeking an independent financial advisor. Of course, you are wanting to get the safest and surest investments to get involved with, and the right expert will point out the best investments to consider. Other reasons you may be looking might be for counsel on the binary options market, the stock market, or possibly your pension funds. No matter what the reason might be, you want to deal with an experienced and qualified financial expert. This is your money we are talking about, and that is a critical topic. Take a look below at some suggestions to help you locate the best expert to manage and grow your money.

Make A Decision Just What It Is You Want

Before even speaking to an expert, take the time to decide precisely what it is they you want. Let’s then jump ahead to Nov 15 – choosing a UK independent financial advisor time. Hopefully, you now know just what it is you are seeking to get from this advisor. Perhaps you have several streams of income, because you are self-employed. Perhaps you are seeking to do some investments abroad, to go along with

10 Commandments of Personal Finance

10. Thou Shalt Take Action

Reading about how to improve your personal finances is a start, but it has absolutely no meaning if you don’t take the action of putting what you learn into motion. Before you can get anywhere with your personal finances, you need to begin — right now. If you are reading this article, you know that you should be taking steps to get your personal finances in order. Print out this list and place it where you will see it every day, so that you are reminded that personal finance is a priority in your life and that you will take some action each and every day to try to improve your lot. If you aren’t sure where to begin, start with getting your banking accounts in order.

9. Thou Shalt Pay Off All Credit Card Debt

Credit card debt is, in most cases, the No. 1 enemy to your personal finances. It can have a huge negative effect if your credit card bills are not paid off in full every single month. Sit down and work out a plan to pay off any credit card debt that you currently have,

Big Banks Who’s In Charge Post-Crisis?

It may seem like business as usual today as the world struggles to get back on its feet post-2008, but there have been some changes made in not just the way financial institutions are being run but in who is running them. A new study by boutique wealth advisory company Ahmadoff & Company which studied 74 major banks (including BNP Paribas, Wells Fargo, HSBC, JPMorgan Chase, UBS, Bank of China…) with a market cap in excess of $20 billion as of January 1, 2015, in 29 countries from all sections of the globe, between 2008 to 2014 paints an in-depth portrait of those banking leaders.

Culled from open-source material and selected interviews, the in-depth study even looked into the 15 universities most represented by the new banking world leadership, including Harvard, Oxford, Stanford, University of Pennsylvania, etc. In a nutshell, five conclusions stand out: banking’s new leaders are older, more likely to be ex-pats, with central bank and policy-making experience, legal education…and occasionally be female.

The entire study is available here.

“In the pre-crisis period, financial leadership was quite basic and simple compared to today’s environment,” says study author Fakhri Ahmadov, CEO of the eponymous

RBI opposes financial services liberalisation under S’pore pact

The proposed comprehensive economic co-operation agreement (CECA) with Singapore is running into rough weather with the Reserve Bank of India expressing reservations over the move to liberalise market access in financial services.

Providing liberal market access in financial services to a country with open economy would result in de facto capital convertibility, the apex bank has said during consultations on the proposed CECA which also includes a free trade agreement (FTA).

The RBI’s view is that the government should not go beyond commitments made under GATS (General Agreement on Trade in Services) to all WTO members.

The development comes at a time when revised offers are being submitted for liberalisation of the services sector, along with agriculture, under the next phase of WTO negotiations.

The apex bank has also emphasised that only entities owned by Singapore nationals should be allowed to enjoy concessions allowed under the CECA.

The debate in this case relates to the definition of ‘juridical’ persons — individuals and entities allowed under Singapore law to enjoy the benefits of citizens of the country. “we should not agree to the relaxation of juridical persons in financial services, because of the liberal entry policy

Financial services sector has bright future Anil Ambani

Painting a bright future for the Indian financial services sector, Anil Dhirubhai Ambani Group (ADAG) Chairman, Anil Ambani on Tuesday said that “the headroom for (its) growth is virtually limitless.”

“In financial services, as in many other sectors of the Indian economy, we have barely scratched the surface,” Ambani told shareholders at the annual general meeting (AGM) of Reliance Capital, a leading player in the Indian financial services space.

Comparing the mutual funds industry of the US with India, Ambani said that while 31 per cent of the US population invests in mutual funds, the figure for India is barely four per cent.

Of the nearly 400-million bank account holders (out of a population of 1-billion-plus), barely 45-million have mutual fund accounts and only 15-million hold demat accounts, he said.

On the insurance sector, in which the ADA Group has emerged as a leading player, Ambani said that India offered a large untapped market as nearly 80 per cent of the Indian population was without life, health and non-life insurance.

“While life insurance penetration is low at 4 per cent, non-life penetration is even lower at 0.6 per cent,”

Mumbai tops list of cities offering financial services

Among important centres of commerce in emerging countries, India’s financial capital Mumbai offers the best financial services environment, ahead of Shanghai and Kuala Lumpur, says a MasterCard survey.

“In terms of financial services environment, Mumbai ranks one among all 65 cities covered by the index. It received the top score in the dimension of banking services and currency exchange regulations, and ranked highly on the volume of financial services traded”, it said.

Other important financial services providers among the emerging economies include Johannesburg, Sao Paulo, Moscow and Bangkok.

In addition to Mumbai, seven other cities including New Delhi, Bangalore, Chennai, Hyderabad, Kolkata, Pune and Coimbatore found mention in the 65 important commercial centres in the emerging markets.

As against eight cities from India, 15 Chinese cities figured in the MasterCard survey.

Among the centres providing commercial connectivity, New Delhi was ranked sixth, below Shanghai, Bangkok, Moscow and Sao Paulo.

In terms of overall ranking Shanghai tops the list followed by Beijing and Budapest, while Mumbai was ranked at 19th place and New Delhi at 28th position.

Among the other Indian cities, Bangalore was placed at 38th position,

Foreign students must leave UK as college loses licence

London School of Business and Finance (LSBF) has had its permission to recruit and teach non-EU students revoked, the Home Office has confirmed.

One student said he feared he would be unable to complete his £8,500 course.

The college said it would intensify teaching to ensure all students gained their qualifications in time.

‘Genuine students’

“These are genuine and good students,” said LSBF rector and chief executive Prof Maurits van Rooijen.

“We will deal with every student on an individual basis to ensure they will be able to continue their courses and complete their qualifications.”

One student studying for a master’s degree in business administration at LSBF said almost half the students on his course had so far received a Home Office “notice of curtailment”.

“I paid £8,500 up front, which is a lot of money in Africa,” said the student, who asked not to be named.

“I did not expect this to happen in Europe and in the UK particularly.

“No-one at the college will address the question properly.

“At this time they are offering to compress the schedule so that we can finish the course

Top 5 stocks which could be multibaggers in the next 2-7 years

Stock picking is a tricky business. More so when the environment around you keeps on giving mixed signals. For instance, after registering a sharp rally of about 30 per cent in the previous calendar year, the S&P BSE Sensex has lost steam in the year 2015.

Experts are of the view that investors with a 3 to 5-year kind of horizon should look at entering the markets at current levels or on dips. But the most important thing for them is to focus on quality rather than going after momentum stocks.

Vinay Khattar, Senior VP, Head Research, Edelweiss Financial Services Ltd, advises investors to make money depending on the time horizon, and if they have an investment horizon which is long enough, they should be making money.

“If you have a 3, 5, 7, 10-years view, definitely equities are likely to do relatively far better than most of the other asset classes,” said Navneet Munot, CIO, SBI MF, in an interview with ET Now earlier in July.

Investing in equity markets is always risky, and to safeguard from uncertainties, investors can invest a small amount in the markets via the mutual fund route.

Investment should