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Friday, September 22, 2006

RBI to float Depositor Protection Fund (DPF)

MUMBAI, September 21: To educate small investors and save them from making wrong investment decisions, the Reserve Bank of India is planning to set up a Depositor Protection Fund (DPF).

The fund will be utilised towards generating greater awareness for the common man on issues relating to financial education and counselling, RBI governor Y.V. Reddy said at a seminar in New Delhi today.

“This could be complemented with providing greater role to our regional offices to promote financial education in their respective jurisdictions,” Reddy said.

Interestingly, the RBI fund would be similar to the stock market regulator Sebi’s proposed Investors’ Protection Fund which would be created out of resources such as dividend or interest, lying unclaimed for seven years with any mutual funds or CIS or venture capital fund. Monies realised by Sebi through penalties will also be used to create the fund.

The Sebi fund is also aimed to educate investors for compensation to the small investors in respect of fraud or misrepresentations or misstatements by companies or intermediaries.

Reddy said financial education would help investors to take effective actions to improve overall well-being and avoid financial distress. An individual usually has limited resources and skills to understand the complexities of financial dealings with financial intermediaries on matters relating to personal finance on a day-to-day basis. The fund will small investors to understand the market intricacies, said Reddy.

Reddy said from a regulator’s perspective, financial education empowers the common person and thus reduces the burden of protecting the common person from the elements of market failure. “For example, the emphasis on market discipline, as one of the three pillars of banking regulation, especially under Basel II, is best served by participation of financially literate bank customers in the financial marketplace,” he said.

Financial education can make a difference not only in the quality of life that individuals can afford, but also the integrity and quality of markets. Reddy said proper education would give individuals with proper tools for budgeting, help them to acquire the discipline to save and thus, ensure that they can enjoy a dignified life after retirement. “Financially educated consumers, in turn, can benefit the economy by encouraging genuine competition, forcing the service providers to innovate and improve their levels of efficiency,” he said.

Story Curtesy: Indian Express

Wednesday, August 09, 2006

R Trade ties up with UTI Bank - The Hindu Business Line

R Trade, the financial services brand promoted by the Anil Ambani group, has tied up with UTI Bank which will serve as its main banker. Online services, incidentally, will be the group's special focus. Besides the two broking firms, the group has also set up a separate firm named R Trade Financial Services; the latter has recently received RBI's consent for commencing business. R Trade, sources indicated, proposed to partly outsource news content from Dow Jones, the global information major. Clients will be able to access DJ news - which is otherwise a subscription-based service - that will be made available on the site.>> Read More, Click Here

Monday, August 07, 2006

Now, BSE to launch website in Hindi: MUMBAI MIRROR

By October, Hindi website to be ready. Its Gujarati version gets poor response in city unlike a hit in towns of Gujarat. >> Click Here to Read full story

Vijay Rao (a techie) Suggests Do's and Don'ts for Online Trading Safety

To a post written by Vijay Rao at India - Information Technology Pulse: BPO Fraud - Future of security in financial institutions where he disscussed HSBC fraud involving a BPO employee who reportedly had leaked out customer bank account details to third party. We asked Vijay his comments on how safe did he think was online trading? He replied with a list of Do's and Don't s. >> Read Full Story and Comments

Implications of Pune’s cyber security fraud - Sucheta Dala of Indian Express, Analyses

The world is worried at the sheer opportunity for the proliferation of cyber crime. And India, as one of the leading player in the IT business needs to watch international developments and beef up its legislation to avoid nasty surprises emanating from international legislation.
For starters, although the Pune police have done us proud, we need to check if our cyber security legislation and privacy laws are demonstrably adequate to deal with cybercrime on an international level. >>
Click here to read full story

Know Your Middlemen - Outlook Money Feature

In him we can’t trust--far from looking out for you, the broker may be selling you short. Put him to the test.
Rajesh Gajra of Outlook Money puts a checklist of things you ought to know. >>Click here to read full story.


Sunday, August 06, 2006

Mark Mahorney Adds Perspective on the BSE Bubble in reply to a 'Know Your Broker' query

Know Your Broker asked Mark what was his take on the rise and fall in the Indian stock markets. He replied on his blog with a post called the BSE Bubble, detailing how worldwide, unexpected turn of events have factored in to reflect on the prices. Read More, Click Here.
Mark Mahorney, best known for his 'tell it like it is' take on the markets, has earned the respect of the mainstream media and industry pundits alike with his insightful and alternative commentary. As an independent analyst, newsletter publisher, and financial writer, The Wall Street Journal Online, Barron’s, and The Motley Fool are some of the places his work has been featured. You can find him writing daily at, contributing to's The Money Blogs, or start off at his HQ

Saturday, August 05, 2006

Dabba Trading also does it to the retail investor. Channel Seven Expose

The fate of the retail investor is jeoperdised beyond belief. Another growing threat is from the Dabba Traders. In an exclusive last night, Channel Seven reported arrest of 5 such Dabba Traders who were arrested on a tip off by the Channel. Known for manupulating stock prices through unfair practices, the Dabba Traders are a growing menace. What makes things worse is the fact that these Dabba Traders enjoy Mafia patronage as well. Here's hoping more such arrests would happen in the near future to save the retail investor and the country's economy thereof.

Friday, August 04, 2006

TV Contacts: Ask all you want to from the experts

Channel: Aaj Tak

Programme: Dhan Daulat
Timing:Sat – 5:30 P.MSun – 1:30 P.M
Sms-2424 Type dhan give a space followed by your question
Email : dhandaulat@aajtak.comTel-23684888

Channel: Headlines Today
Programme: Sensex Today
Timing: Every 1 hr

No sms facility. Regarding live phone calls they decide according to the requirement of the program

Channel: Zee Business
Aap Ka Bazaar l Timing:12-1 PM (Monday to Friday)
Antim Bazee l 2:30-4 P.M(Monday to Friday )
Sms – 7575
Type Share give space and then type your query
Type Bazee give space and then your queryTel-95120-2511064

Channel: Times Now
Programme: Business Buzz
Timing: 9:30-10:30 A.M3 – 4 P.M
Tel- Delhi- 23310000
Mumbai – 95-22-24999944

Channel: Star News
Programme: Fund Ka Funda
Timing: 1:30 P.M (Sunday)12:30 P.M (Repeat Telecast – Monday)
Tel- Del: 41002000

Channel: NDTV Profit

Bohni (Hindi) l 8-9 P.M
Buy or Sell l 11:30-1 P.M
Kal par Nazar l 4-5 P.M
Sms- 6388Email –
Tel- Del: 26446666/41577777

Channel: CNBC Awaaz
Programme: Aap ke Share
Sms – 2622 Type ys –space- questione-
Call in – 022 40019655
Tel-Del: 4341818/3987777

Channel: Total TV
Programme: Bulls & Bears
Sunday 11.30 a.m.
Call in – 011 41512075
Channel: CNBC TV18
Programme: Bazaar Morning Call l 9 a.m
Open Exchange l 10 a.m
Your Stocks l 11 a.m
Your Stocks with UM l 5.30 p.m
Call in – 022 40019655

Brokers bear the blame.

Retail investors who use the Internet feel being cheated by brokers and sub-brokers, reveals a Starcom survey.

STOCK MARKETS are going through turmoil and retail investors are feeling a sense of betrayal. When things go wrong, blame it on the advisors. One out of three small and medium investors, who trade through their brokers or sub-brokers, feel cheated, suggests a recent survey. A survey of investors, who use Internet, across the country by Starcom MediaVest says, “There is a significant feeling of being cheated by the brokers amongst (sic) investors.” As much as 66 per cent of the 6,980 respondents say that brokers do not give fair and unbiased advice.

More than half the respondents felt that the system of fixed percentage broking, the usual method in which the broker gets a fixed percentage of the gains of the investor’s trade, is unfair. Starcom MediaVest is the media research arm of the French major Publicis group. There is no geographical bias of feeling cheated, as people in all major cities are equally strong in their views.
Even those who don’t feel they have been diddled by brokers themselves, know someone close who has been, says the survey.

Investors with longer trading history have stronger feeling about being duped, which is interesting, since the survey was conducted in July, when the market had already gone through roller-coaster in May and June. In fact, longer the investment expe rience, higher the chances of being conned by a broker, claims the survey. Self-employed professionals have the strongest feeling of being taken for a ride, while retired persons with equity investments feel the least. More than half the respondents were salaried individuals working in private companies.

The Indian stock market has gone through a roller-coaster ride since May 11, losing more than 2,000 points in two months after a dizzying upward spiral that lasted almost two years. There is, however, contrasting opinion among investors who were not a part of the survey. “There’s nothing specific that can be pointed out with respect to the fact that brokers are cheating investors.

If you look at portfolio man agement services (PMS), there’s an online record that allows to view your profile and one can act accordingly. Nothing is hidden from the investor,” Mitesh Valia, an investor told Hindustan Times. Other investors feel that this grouse could be true for mid and small-cap stocks since they took a beating recently. About 70 per cent of the respondents were from the top 10 cities in India, claims Starcom.

Thursday, August 03, 2006

Online Trading Safety Debate Heats up! Hacker Challenges Indiabulls.

The 'Online Trading Safety Debate' has heated up. Last night in an exclusive expose, India TV featured a man named Kalpesh, a supposed techie who challenged the Indiabulls Brass saying their online trading platform has many chinks and that he could hack any account on the platform. Amid vehement refuting and rebuttals, the Indiabulls staffer called Kalpesh to their office and show the hacking to prove his point. A punishable offence under law for which Kalpesh has been behind the bars for 15 days (as admitted by Kalpesh), online hacking is growing menace threatening investor security. The online safety debade continues. Safe, or is it? So, what do you think?