know your broker

RBI to float Depositor Protection Fund (DPF)

2006-09-22T02:13:00.000-07:00

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

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

2006-08-09T07:22:00.000-07:00

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

Now, BSE to launch website in Hindi: MUMBAI MIRROR

2006-08-07T23:59:00.000-07:00

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

2006-08-07T23:38:00.000-07:00

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

2006-08-07T22:38:00.000-07:00

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

2006-08-07T22:33:00.000-07:00

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.

Also read: >> TEN COMMANDMENTS FOR SMALL INVESTORS

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

2006-08-06T22:27:00.000-07:00

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 Stockblog.com, contributing to TradingMarkets.com's The Money Blogs, or start off at his HQ DanceBearDance.com.

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

2006-08-05T01:22:00.000-07:00

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.

TV Contacts: Ask all you want to from the experts

2006-08-04T05:44:00.000-07:00

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
Tel-23684878

Channel: Zee Business
Programmes:
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
Sms-8888
Email- biznow@timesgroup.com
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)
Sms-7827
Email- skf@starnews.co.in
Tel- Del: 41002000
Mumbai-95-22-66630000

Channel: NDTV Profit
Programmes:

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 – biz@ndtv.com
Tel- Del: 26446666/41577777

Channel: CNBC Awaaz
Programme: Aap ke Share
Sms – 2622 Type ys –space- questione-
mail:fa@moneycontrol.com
Call in – 022 40019655
Tel-Del: 4341818/3987777
Mumbai-95-22-40019547

Channel: Total TV
Programme: Bulls & Bears
Sunday 11.30 a.m.
Call in – 011 41512075
e-mail: rajsenior@rediffmail.com
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.

2006-08-04T00:11:00.000-07:00

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.

Online Trading Safety Debate Heats up! Hacker Challenges Indiabulls.

2006-08-03T22:44:00.000-07:00

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?

DO YOU THINK ONLINE TRADING IS SAFE?

2006-07-12T07:54:00.000-07:00

What do you think? Let us know. Take our Survey. Share a story, an observation or leave your comments ...

Online Scamsters Target Indian Customers With ICICI Bank Phishing Scam

2006-07-12T05:41:00.000-07:00

Phishing is a relatively new phenomenon in India, though United States, South America and Europe have been reeling under its impact for years now. Read more, click here.

Hyderabad Beware: ATM/ Debit Cards Security Threats

2006-07-11T03:32:00.000-07:00

Your ICICI ATM / Debit cards can be used at SBI ATMs to withdraw money and most shocking thing is, it does not ask for your PIN**. Even if it ask for pin and if u cancel it. It goes on to the next screen and enables you to withdraw cash. This security vulnerability was shown live on India TV news channel at SBI ATM in Hyderabad. So please take utmost care of your ICICI ATM / Debit cards to avoid any such misuse.

Mumbai: The next time you decide to use your credit card on a shopping trip,think again.

2006-07-11T02:38:00.000-07:00

The Mumbai police have busted a hitech credit card fraud whichthey believe is the crime of the future. Four gadget-savvy youngsters from Andheri, two of them software engineers,got together to earn a quick buck and ended up ripping off over Rs 3 lakh ofcitizens' money. The foursome were arrested by the Juhu police on Tuesday.Interestingly, one of the boys was all set to leave for the United State sfor a job in a wellplaced computer firm . According to the police, the mastermind of the gang is 19-year-old Leo Paul.A second-year engineering student at a Bandra college, Paul had read about amagnetic card-reading device which could store data once you swipe a cardthrough it. Data from at least 12 such cards could be stored at a time. Paulrealised that if credit cards were swiped though the machine, the personaldata of a customer stored on it could be accessed. He then teamed with AkashKamble, a 19-year-old Lokhandwala resident, and ordered the card-reader fromUSA, using the internet, since it's not available in India. "The boys befriended a waiter at Kings International hotel at Juhu to taketheir plan ahead. Every time someone ate a meal in the hotel and paid bycredit card, the waiter would discreetly swipe it through the magneticcard-reader, which is no more than 6-inches long and can be stored in thepocket,'' said investigating officer Ramesh Nangare. Once the waiter was done, he would hand over the device to Paul who woulddownload the data from the cards on to Kamble's personal computer. The duowould then feed the data into blank cards, available in the grey market. Thecards were now ready to be used in shopping malls and theatres, or to withdraw money from an ATM. Senior inspector Pradeep Shinde said that the boys forged information frommore than 22 cards in this manner. The fraud came to light after officialsfrom HSBC bank complained to the police. The cops quizzed customers whosecards had been duplicated and discovered they had all visited Hotel KingsInternational and paid by credit card. Investigators then caught the waiterwho led them to the four youngsters. Paul, Kamble and the two othercollegians identified as Manoj Chauhan (24) and Mahesh Valani (20), havebeen remanded to police custody.

NEW-AGE CRIME A portable magnetic cardreader can store data from around a dozen cards that have been swiped through it; made in China, the device was bought on thenet for Rs 18,000. The card-reader is connected to a computer and the entire data istransferred there. The data is then stored in blank cards available in the grey market. These duplicate cards can now be used to buy a fortune and also withdrawmoney from ATMs.

Internet Securities Fraud: Old Trick, New Medium

2006-06-27T05:00:00.000-07:00

Click here to Read More

How safe is Online Trading?

2006-06-27T04:58:00.000-07:00

Click here to read!

Regular Income, Equity Mutual Fund Returns, VISA ATM Card, Capital Appreciation - Now That's an idea

2006-06-22T22:57:00.000-07:00

Chek this post out from Gautam. Raving about a neat plan. Concerned Citizen asked him how to accertain market Risks? Click here to read >>

Using Internet Explorer for financial websites is like showing up for war in your pajamas.

2006-06-18T23:09:00.000-07:00

Online safety compromises forced on users by HDFC and Geojit. Vikram analyses.

The man who lost 20,000 in a span of 2 days!

2006-06-15T09:36:00.001-07:00

Naeem, a small business owner in the small town of Meerut, UP in India was completely shattered when he was told by his broker, Kapil that his 3 month's savings worth Rs. 20,000 thata he had invested in some equities as suggested by the latter; had been reduced to Rs. 200. Now Naeem is forced to taking loan at a whopping 25 % compound rate from a local broker to save his business that feeds his family of 7. Naeem is not the only one to face this plight. There are many Naeems in Indian small towns today who are lured by unscruplous brokers and land up loosing their hard earned money. Above is Naeem's shop where he personalises knick-knacks like Key Chains with Names ising a letterpress.

The question Naeem is asking and so are we: how does one get such brokers accountable?

Where to learn all about online trading?

2006-06-15T09:09:00.000-07:00

Trading Academy an American online resource has web tutorials on basic fundamentals. Click Here Wonder when are we going to have something like this in India. Here's hoping someday ...