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

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

ADAG enters Saudi financial services sector

Overseas financial services business is the new target of Indian firms. Reliance-ADAG is picking up 26% stake with management control in a full-fledged financial services company in Saudi Arabia. The group is in the process of raising around 200 million Saudi riyals (Rs 230 crore) from Middle East sovereign wealth funds and other institutional investors who will together hold 74% stake in the venture.

R-ADAG will be the single-largest shareholder in the firm, which has been christened Riyada Reliance Money. There will be a small group of around seven to eight investors. However, none of them will have more than 26% stake in the company.

Riyada Reliance Money will be engaged in various activities, including brokerage, depository services, investment advisory, asset management and investment banking. Incidentally, this would also mark the group’s entry into investment banking, an area where R-ADAG’s financial arm Reliance Capital is not present in India. The venture will be an extension of R-ADAG’s existing retail brokerage and financial products distribution business which is under Reliance Money, which is a subsidiary of publicly-listed Reliance Capital.

Reliance Money’s director & CEO Sudip Bandyopadhyay said:

Trai for affordable financial services on mobiles

India’s telecom regulator Trai wants to fix tariffs for banking and other financial services on mobile phones to ensure that this facility is affordable to the masses.

At present, market forces determine telecom tariffs in India, with very little intervention from Trai or the government. The regulator is of the opinion that ‘the proposed framework for delivery of basic financial services is intended to promote financial inclusion, including transfer of funds under various government schemes and programmes targeted to poor people’, which calls for regulating tariffs for such services.

“Tariff regulation would be crucial if adoption of mobile banking is to be encouraged especially among the unbanked segments of the population. In such a situation cost effectiveness of delivery of basic financial services through mobile phones becomes an important consideration. Every effort should be made to keep the provisioning of the services affordable for the target beneficiaries,” the regulator said when launching a consultation process to gauge the industry’s reaction to this proposal.

The consultation process will also enable the regulator to fianlise its recommendations on other policy issues that are vital for framing guidelines for mobile banking services.

Trai has also sought the

Essar to foray into financial services

The Essar group has made its foray into the financial services in India and in the process joined the likes of ADAG and Tatas. The group holding company Essar Global is buying out group company Essar Capital (ECL), and infusing Rs 560 crore into it. ECL is likely to offer non-banking financial services, asset management, equity broking, fund management and wealth management services in the country.

Currently the entire share capital of ECL is held by another Essar Group entity called Essar Investments, a company incorporated in India. The Essar group has approached the Foreign Investment Promotion Board (FIPB), the body that vets FDI proposals, seeking approval for Essar Global to buy out ECL. The group needs the FIPB approval since Essar Global is incorporated in Cayman Islands.

A senior Essar executive told ET that ECL was incorporated in January 2007, but not made operational. “It was only in December 2007 that the Essar group actively considered getting into financial services and decided to enter it through ECL. But since ECL is new and not operational, we decided that Essar Global should buy it out and then

Financial services to drive Oracle’s Apac growth

The world’s largest enterprise software maker, Oracle, is targeting the financial services area to drive its growth in the Asia Pacific (Apac) region.

With financial services companies having to deal with a raft of legislations such as the Sarbanes Oxley Act and Basel II, Mr Mark Gibbs, vice president, Oracle, Asia Pacific, told ET that the area of regulatory compliance would be a major growth driver for the company.

“Earlier we had sales and marketing teams in the financial services vertical. Today in addition to this we have domain experts who have extensive experience in the field,” Mr Gibbs said. India, is incidentally, a base for a sizeable portion of compliance-related software development for Oracle.

According to him, financial services companies today have to make unavoidable investments in meeting various compliance norms. “Coupled with this a strong trend in banks to move their core banking systems from main frame to open systems like Unix and Linux,” he said.

He explained that Oracle was looking at the compliance issue not as a stand-alone problem, but as a complete performance management situation.

“What we are doing

Financial services to drive Oracle’s Apac growth

The world’s largest enterprise software maker, Oracle, is targeting the financial services area to drive its growth in the Asia Pacific (Apac) region.

With financial services companies having to deal with a raft of legislations such as the Sarbanes Oxley Act and Basel II, Mr Mark Gibbs, vice president, Oracle, Asia Pacific, told ET that the area of regulatory compliance would be a major growth driver for the company.

“Earlier we had sales and marketing teams in the financial services vertical. Today in addition to this we have domain experts who have extensive experience in the field,” Mr Gibbs said. India, is incidentally, a base for a sizeable portion of compliance-related software development for Oracle.

According to him, financial services companies today have to make unavoidable investments in meeting various compliance norms. “Coupled with this a strong trend in banks to move their core banking systems from main frame to open systems like Unix and Linux,” he said.

He explained that Oracle was looking at the compliance issue not as a stand-alone problem, but as a complete performance management situation.

“What we are doing

Financial services next engine of growth FM

India has said its growth story, steered mainly by IT and telecom so far, will shift gear towards financial services to drive expansion.

“It is our intention to make financial services the next growth engine for India,” finance minister P Chidambaram said at ICICI Securities Investor Conference here on Thursday.

As the economy becomes more open and trade intensity increases, big financial flows would be intermediated in the country, he said.

Pointing out that India is a purchaser of international financial services, he said there is an opportunity for the country to become a provider of these services as well.

He cited a recent report to state that these services were valued at $13 billion a year and would rise to $48 billion by 2015.

A government-constituted committee had earlier this year submitted its recommendations on making Mumbai an international financial centre.

“It is, therefore, our intention to make Mumbai an international financial centre,” he said, adding the report is in the public domain and the process of building a consensus on the key recommendations is on.

Pointing out that outlook for