Monday 30 December 2019

Words Matter

The recent opposition in India for The Citizenship (Amendment) Act, 2019 No. 47 of 2019 issued on 12th December 2019 generated few thoughts.

It will be immensely satisfying to know how many have downloaded and read the amendment in the gazette. Especially celebrities / students who are against / supporting it.

If it is checked, majority would have not read it.

It is worth remembering that  "Words are free. It's how you use them that may cost you." -KushandWizdom.

The changes issued in the Gazette is as follows:

"Provided that any person belonging to Hindu, Sikh, Buddhist, Jain, Parsi or Christian community from Afghanistan, Bangladesh or Pakistan, who entered into India on or before the 31st day of December, 2014 and who has been exempted by the Central Government by or under clause (c) of sub-section (2) of section 3 of the Passport (Entry into India) Act, 1920 or from the application of the provisions of the Foreigners Act, 1946 or any rule or order made thereunder, shall not be treated as illegal migrant for the purposes of this Act;".

Just a thought, if the words would have replaced with the following (bold, italics, blue) in the Gazette would there have been an understanding of what it is currently understood:

"Provided that any person belonging to minority community from Afghanistan, Bangladesh or Pakistan, who entered into India on or before the 31st day of December, 2014 and who has been exempted by the Central Government by or under clause (c) of sub-section (2) of section 3 of the Passport (Entry into India) Act, 1920 or from the application of the provisions of the Foreigners Act, 1946 or any rule or order made thereunder, shall not be treated as illegal migrant for the purposes of this Act;".

"Raise your words, not your voice. It is rain that grows flowers, not thunder." -Rumi

It is better not to become a pawn in the hands of political parities.

Few questions to political parties:

1. Will all of the protesters / supporters especially students will get a cabinet berth if either side wins
2. If the State Governments which is supporting violent protesters by not taking action against them for destroying public property are signalling what their actions speak about their thoughts
3. As stated above how many political party members have downloaded the gazette and read it

"All I need is a sheet of paper and something to write with, and then I can turn the world upside down." -Friedrich Nietzsche

Would recommend to watch interesting scene from the movie Ankhon Dekhi (2014) directed by Rajat Kapoor. Start from 3:20 to 6:15 :

Saturday 28 December 2019

How to avoid hubris in Mutual Funds?

Avoiding drunkenness and hubris in Mutual Fund investing is the key and it was very well explained by Shanker Naren (Chief Investment Officer of ICICI Prudential).

His solutions:

  • Hybrid Funds
  • Credit Funds
  • Closed End Funds
  • No Leverage
Please listen to the below video and start from to 49:50


It is recommended to listen the full speech and understand the journey of an Investor as an Mutual Fund Chief Investment Officer.

Learning - Jesse Livermore


Book: Reminiscences of a Stock Operator - Edwin LeFevre

What you can learn from the book?

·        How bears operate?
·        Who and what of Speculators?
·        Key role of Investors
·        How stock manipulation is done?
·        How business newspaper plays mischief?
·        How insiders (promoters) play mischief?

The book is a must read for all stock market participants.

The book written in 1923 is basically explaining the Psychology of human being. The book is supposed to be narrated by legendary stock trader / speculator Jesse Livermore and written by Edwin LeFevre.

I would have been happy if there is a single book of this nature published in India. Unfortunately, none. This is despite Bombay Stock Exchange (1875) is in existence for 145 years.

Ultimate Lesson in the Stock MarketAnother lesson I learned early is that there is nothing new in Wall Street. There can't be because speculation is as old as the hills. Whatever happens in the stock market to-day has happened before and will happen again. I've never forgotten that. I suppose I really manage to remember when and how it happened. The fact that I remember that way is my way of capitalizing experience.
On when to trade
What beat me was not having brains enough to stick to my own game that is, to play the market only when I was satisfied that precedents favored my play. There is a time for all things, but I didn't know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. No man can always have adequate reasons for buying or selling stocks daily or sufficient knowledge to make his play an intelligent play.

Why you lose at Wall Street?
You are wiped too easily and quickly. The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.

Who is the enemy in stock market?
A stock operator has to fight a lot of expensive enemies within himself.

The truth
There I was, a mere kid, who had never before been away from home, flat broke; but I knew there wasn't anything wrong with me; only with my play. I don't know whether I make myself plain, but I never lose my temper over the stock market. I never argue with the tape. Getting sore at the market doesn't get you anywhere.

Message to day traders
And then I never would have learned that there was much more to the game of stock speculation than to play for fluctuations of a few points.

On learning from mistakes
It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side.
With me I must back my opinions with my money. My losses have taught me that I must not begin to advance until I am sure I shall not have to retreat. But if I cannot advance I do not move at all. I do not mean by this that a man should not limit his losses when he is wrong. He should. But that should not breed indecision. All my life I have made mistakes, but in losing money I have gained experience and accumulated a lot of valuable don'ts. I have been flat broke several times, but my loss has never been a total loss. Otherwise, I wouldn't be here now. I always knew I would have another chance and that I would not make the same mistake a second time. I believed in myself.

On stock investing tips
A man must believe in himself and his judgment if he expects to make a living at this game. That is why I don't believe in tips. If I buy stocks on Smith's tip I must sell those same stocks on Smith's tip. I am depending on him. Suppose Smith is away on a holiday when the selling time comes around? No, sir, nobody can make big money on what someone else tells him to do. I know from experience that nobody can give me a tip or a series of tips that will make more money for me than my own judgment. It took me five years to learn to play the game intelligently enough to make big money when I was right.

On Losing money
I went broke several times, and that is never pleasant, but the way I lost money is the way everybody loses money who loses money in Wall Street. Speculation is a hard and trying business, and a speculator must be on the job all the time or he'll soon have no job to be on.

On what is learnt
To look at speculation from another angle. But I didn't know that there was much more to the game than I could possibly learn in the bucket shops. There I thought I was beating the game when in reality I was only beating the shop. At the same time the tape reading ability that trading in bucket shops developed in me and the training of my memory have been extremely valuable. Both of these things came easy to me. I owe my early success as a trader to them and not to brains or knowledge, because my mind was untrained and my ignorance was colossal. The game taught me the game. And it didn't spare the rod while teaching.

What is speculating?
If somebody had told me my method would not work, I nevertheless would have tried it out to make sure for myself, for when I am wrong only one thing convinces me of it, and that is, to lose money. And I am only right when I make money. That is speculating.

On Learning
There is nothing like losing all you have in the world for teaching you what not to do. And when you know what not to do in order not to lose money, you begin to learn what to do in order to win. Did you get that? You begin to learn! 

Study of stocks
There is what I call the behavior of a stock, actions that enable you to judge whether or not it is going to proceed in accordance with the precedents that your observation has noted. If a stock doesn't act right don't touch it; because, being unable to tell precisely what is wrong, you cannot tell which way it is going. No diagnosis, no prognosis. No prognosis, no profit.

On Mathematics
He said that the only thing that didn't lie because it simply couldn't was mathematics.

On Markets bull / bear
But not even a world war can keep the stock market from being a bull market when conditions are bullish, or a bear market when conditions are bearish. And all a man needs to know to make money is to appraise conditions.

On Average Stock Speculator
I know now what I did not know then, and I think of the mistakes of my ignorance because those are the very mistakes that the average stock speculator makes year in and year out.

Usual experience
The more I made the more I spent. This is the usual experience with most men.

On fortune
They say you never grow poor taking profits. No, you don't. But neither do you grow rich taking a four-point profit in a bull market.

How I was defined?
The second-grade sucker knows how to keep from losing his money in some of the ways that get the raw beginner. It is this semisucker rather than the 100 per cent article who is the real all-the-year-round support of the commission houses. He lasts about three and a half years on an average, as compared with a single season of from three to thirty weeks, which is the usual Wall Street life of a first offender. It is naturally the semisucker who is always quoting the famous trading aphorisms and the various rules of the game. He knows all the don'ts that ever fell from the oracular lips of the old stagers excepting the principal one, which is: Don't be a sucker!

About big money
I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling the other customers, "Well, you know this is a bull market!" he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend.
And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.
The reason is that a man may see straight and clearly and yet become impatient or doubtful when the market takes its time about doing as he figured it must do. That is why so many men in Wall Street, who are not at all in the sucker class, not even in the third grade, nevertheless lose money. The market does not beat them. They beat themselves, because though they have brains they cannot sit tight. Old Turkey was dead right in doing and saying what he did. He had not only the courage of his convictions but the intelligent patience to sit tight.

On Faith
Without faith in his own judgment no man can go very far in this game.

On Learning
If I learned all this so slowly it was because I learned by my mistakes, and some time always elapses between making a mistake and realizing it, and more time between realizing it and exactly determining it.
Every time I found the reason for a loss or the why and how of another mistake, I added a brand-new Don't! to my schedule of assets.
Remember that stocks are never too high for you to begin buying or too low to begin selling.
To be angry at the market because it unexpectedly or even illogically goes against you is like getting mad at your lungs because you have pneumonia.

On Spending after winning / losing
I mean that after a man makes money in the stock market he very quickly loses the habit of not spending. But after he loses his money it takes him a long time to lose the habit of spending.

The truth about speculators / traders
The one game of all games that really requires study before making a play is the one he goes into without his usual highly intelligent preliminary and precautionary doubts. He will risk half his fortune in the stock market with less reflection than he devotes to the selection of a medium-priced automobile.

A trader’s view on price
Prices, we know, will move either up or down according to the resistance they encounter. For purposes of easy explanation we will say that prices, like everything else, move along the line of least resistance. They will do whatever comes easiest, therefore they will go up if there is less resistance to an advance than to a decline; and vice versa.

What you should guard?
But in actual practice a man has to guard against many things, and most of all against himself that is, against human nature. That is the reason why I say that the man who is right always has two forces working in his favor basic conditions and the men who are wrong. In a bull market bear factors are ignored. That is human nature, and yet human beings profess astonishment at it.

When markets are narrow
This experience has been the experience of so many traders so many times that I can give this rule: In a narrow market, when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be up or down. The thing to do is to watch the market, read the tape to determine the limits of the get-nowhere prices, and make up your mind that you will not take an interest until the price breaks through the limit in either direction. A speculator must concern himself with making money out of the market and not with insisting that the tape must agree with him. Never argue with it or ask it for reasons or explanations. Stock-market postmortems don't pay dividends.

Fear and Greed
The speculator's chief enemies are always boring from within. It is inseparable from
 human nature to hope and to fear. In speculation when the market goes against you you hope that every day will be the last day and you lose more than you should had you not listened to hope to the same ally that is so potent a success-bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit. It is absolutely wrong to gamble in stocks the way the average man does.

Eternal truth on beating the market
I have been in the speculative game ever since I was fourteen. It is all I have ever done. I think I know what I am talking about. And the conclusion that I have reached after nearly thirty years of constant trading, both on a shoestring and with millions of dollars back of me, is this: A man may beat a stock or a group at a certain time, but no man living can beat the stock market! A man may make money out of individual deals in cotton or grain, but no man can beat the cotton market or the grain market. It's like the track. A man may beat a horse race, but he cannot beat horse racing.

On True earning
"If I fool myself," I told him, "I alone suffer and I pay the bill at once. There are no drawn-out payments or unexpected annoyances. I play a lone hand by choice and also because it is the wisest and cheapest way to trade. I get my pleasure out of matching my brains against the brains of other traders men whom I have never seen and never talked to and never advised to buy or sell and never expect to meet or know. When I make money I make it backing my own opinions. I don't sell them or capitalise them. If I made money in any other way I would imagine I had not earned it. Your proposition does not interest me because I am interested in the game only as I play it for myself and in my own way."

On averaging loss
Of all speculative blunders there are few greater than trying to average a losing game.

How fate presents her bill
To learn that a man can make foolish plays for no reason whatever was a valuable lesson. It cost me millions to learn that another dangerous enemy to a trader is his susceptibility to the urgings of a magnetic personality when plausibly expressed by a brilliant mind. It has always seemed to me, however, that I might have learned my lesson quite as well if the cost had been only one million. But Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill, knowing you have to pay it, no matter what the amount may be. Having learned what folly I was capable of I closed that particular incident. Percy Thomas went out of my life.

Truth about stock market on making paying bills
Just think of it! If you know much about the average customer of the average commission house you will agree with me that the hope of making the stock market pay your bill is one of the most prolific sources of loss in Wall Street. You will chip out all you have if you adhere to your determination.
But they all said that it wasn't a sporting thing to do; that if I wanted the coat for myself I ought to let the market give it to me.
That was only one case. There isn't a man in Wall Street who has not lost money trying to make the market pay for an automobile or a bracelet or a motor boat or a painting. I could build a huge hospital with the birthday presents that the tight-fisted stock market has refused to pay for. In fact, of all hoodoos in Wall Street I think the resolve to induce the stock market to act as a fairy godmother is the busiest and most persistent.

On why market does not pay your bills
Like all well-authenticated hoodoos this has its reason for being. What does a man do when he sets out to make the stock market pay for a sudden need? Why, he merely hopes. He gambles. He therefore runs much greater risks than he would if he were speculating intelligently, in accordance with opinions or beliefs logically arrived at after a dispassionate study of underlying conditions. To begin with, he is after an immediate profit. He cannot afford to wait. The market must be nice to him at once if at all. He flatters himself that he is not asking more than to place an even-money bet. Because he is prepared to run quick say, stop his loss at two points when all he hopes to make is two points he hugs the fallacy that he is merely taking a fifty-fifty chance. Why, I've known men to lose thousands of dollars on such trades, particularly on purchases made at the height of a bull market just before a moderate reaction. It certainly is no way to trade. Well, that crowning folly of my career as a stock operator was the last straw. It beat me. I lost what little my cotton deal had left me. It did even more harm, for I kept on trading and losing. I persisted in thinking that the stock market must perforce make money for me in the end. But the only end in sight was the end of my resources. I went into debt, not only to my principal brokers but to other houses that accepted business from me without my putting up an adequate margin. I not only got in debt but I stayed in debt from then on. 

On Human mind
There is no mind so machine like that you can depend upon it to function with equal efficiency at all times. I now learned that I could not trust myself to remain equally unaffected by men and misfortunes at all times.
A man must know himself thoroughly if he is going to make a good job out of trading in the speculative markets.

On favors
I was very grateful to him, but I am so constituted that I don't like to owe money or favours. I can pay the money back with money, but the favors and kindnesses I must pay back in kind and you are apt to find these moral obligations mighty high priced at times. Moreover there is no statute of limitations.
And so my feelings again won over my judgment and I gave in. To subordinate my judgment to his desires was the undoing of me. Gratitude is something a decent man can't help feeling, but it is for a fellow to keep it from completely tying him up.

On Human nature
That the public did not turn all their paper profits into good hard cash or that they did not long keep what profits they actually took was merely history repeating itself. Nowhere does history indulge in repetitions so often or so uniformly as in Wall Street. When you read contemporary accounts of booms or panics the one thing that strikes you most forcibly is how little either stock speculation or stock speculators to-day differ from yesterday. The game does not change and neither does human nature.

On booking profit
I have in mind certain hazards of speculation that from time to time remind a man that no profit should be counted safe until it is deposited in your bank to your credit.
On Post mortem of Speculation
Post-mortems in speculation are a waste of time. They get you nowhere.
You cannot be dead sure of anything in a speculative operation.

On tipsters
I sometimes think that tip-takers are like drunkards.
I am definitely aware that no end of them cherish mistaken notions of me because I never give anybody tips. If I told the average man, "Sell yourself five thousand Steel!" he would do it on the spot. But if I tell him I am quite bearish on the entire market and give him my reasons in detail, he finds trouble in listening and after I'm done talking he will glare at me for wasting his time expressing my views on general conditions instead of giving him a direct and specific tip, like a real philanthropist of the type that is so abundant in Wall Street the sort who loves to put millions into the pockets of friends, acquaintances and utter strangers alike.
The farther away the source the purer the tip.

For investors when to sell
Mr. Reinhart not only denied the allegations emphatically but said even more: He proceeded to prove by figures that the allegators were malicious liars. The Pennsylvania Dutchman had asked for exact information and the president gave it to him, showing him what the company was doing and how it stood financially, to a cent. 
The Pennsylvania Dutchman thanked President Reinhart, returned to New York and promptly sold all his Atchison holdings. A week or so later he used his idle funds to buy a big lot of Delaware, Lackawanna & Western. 
Years afterward we were talking of lucky swaps and he cited his own case. He explained what prompted him to make it. 
"You see," he said, "I noticed that President Reinhart, when he wrote down figures, took sheets of letter paper from a pigeonhole in his mahogany roll-top desk. It was fine heavy linen paper with beautifully engraved letterheads in two colors. It was not only very expensive but worse it was unnecessarily expensive. He would write a few figures on a sheet to show me exactly what the company was earning on certain divisions or to prove how they were cutting down expenses or reducing operating costs, and then he would crumple up the sheet of the expensive paper and throw it in the waste-basket. Pretty soon he would want to impress me with the economies they were introducing and he would reach for a fresh sheet of the beautiful notepaper with the engraved letterheads in two colors. A few figures and bingo, into the waste-basket! More money wasted without a thought. It struck me that if the president was that kind of a man he would scarcely be likely to insist upon having or rewarding economical assistants. I therefore decided to believe the people who had told me the management was extravagant instead of accepting the president's version and I sold what Atchison stock I held.
He believed in asking his own questions and in doing his seeing with his own eyes. He had no use for another man's spectacles.

On experience
You can transmit knowledge that is, your particular collection of card-indexed facts but not your experience. A man may know what to do and lose money if he doesn't do it quickly enough.
Observation, experience, memory and mathematics these are what the successful trader must depend on. He must not only observe accurately but remember at all times what he has observed. He cannot bet on the unreasonable or on the unexpected, however strong his personal convictions may be about man's unreasonableness or however certain he may feel that the unexpected happens very frequently. He m ust bet always on probabilities that is, try to anticipate them. Years of practice at the game, of constant study, of always remembering, enable the trader to act on the instant when the unexpected happens as well as when the expected comes to pass.
A man can have great mathematical ability and an unusual power of accurate observation and yet fail in speculation unless he also possesses the experience and the memory. And then, like the physician who keeps up with the advances of science, the wise trader never ceases to study general conditions, to keep track of developments everywhere that are likely to affect or influence the course of the various markets. After years at the game it becomes a habit to keep posted. He acts almost automatically. He acquires the invaluable professional attitude and that enables him to beat the game at times! This difference between the professional and the amateur or occasional trader cannot be over emphasized. I find, for instance, that memory and mathematics help me very much. Wall Street makes its money on a mathematical basis. I mean, it makes its money by dealing with facts and figures.

On warnings
I don't look out for the breaks; I look out for the warnings.

On easy money
People who look for easy money invariably pay for the privilege of proving conclusively that it cannot be found on this sordid earth. At. first, when I listened to the accounts of old-time deals and devices I used to think that people were more gullible in the l860's and '70's than in the 1900's. But I was sure to read in the newspapers that very day or the next something about the latest Ponzi or the bust-up of some bucketing broker and about the millions of sucker money gone to join the silent majority of vanished savings.

On Money
Vision without money means heartaches; with money, it means achievement; and that means power; and that means money; and that means achievement; and so on, over and over and over.

Regret
It is a matter of regret that Keene did not leave an accurate record of his greatest exploit the successful manipulation of the U. S. Steel shares in the spring of 1901.

On Experience
It isn't good business for a man to act against the teachings of experience and against common sense.

Eternal truths for a speculator
Speculation in stocks will never disappear. It isn't desirable that it should. It cannot be checked by warnings as to its dangers. You cannot prevent people from guessing wrong no matter how able or how experienced they may be. Carefully laid plans will miscarry because the unexpected and even the unexpectable will happen. Disaster may come from a convulsion of nature or from the weather, from your own greed or from some man's vanity; from fear or from uncontrol led hope. But apart from what one might call his natural foes, a speculator in stocks has to contend with certain practices or abuses that are indefensible morally as well as commercially.
The speculator's deadly enemies are: Ignorance, greed, fear and hope. All the statute books in the world and all the rules of all the Exchanges on earth cannot eliminate these from the human animal.

The fact a investor must know
In addition to trying to determine how to make money one must also try to keep from losing money. It is almost as important to know what not to do as to know what should be done.

The Stock Market Truth
I have said many times and cannot say it too often that the experience of years as a stock operator has convinced me that no man can consistently and continuously beat the stock market though he may make money in individual stocks on certain occasions. No matter how experienced a trader is the possibility of his making losing plays is always present because speculation cannot be made 100 per cent safe. Wall Street professionals know that acting on "inside" tips will break a man more quickly than famine, pestilence, crop failures, political readjustments or what might be called normal accidents. There is no asphalt boulevard to success in Wall Street or anywhere else. Why additionally block traffic?

Monday 23 December 2019

Lets reflect

There comes a time when you have to sit and reflect on what went by. It is advisable to recollect what Confucius had stated:

"By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.".

Three songs will assist us to reflect and aid us in understanding human life better:





Saturday 7 December 2019

Clarity on Constitutional Law

It appeared objective of Karan Thapar was to show Modi Government (2nd Term):

1. Misused Article 370
2. There was abuse of power by Executive
3. Supreme Court supported Government
4. Judges in the Supreme Court are biased

Interview of Mr. Harish Salve by Karan Thapar has to be viewed for following reasons:

1. Clarity with respect to Constitutional Law in the eyes of Mr. Salve
2. Correcting the misconceptions held by Karan Thapar (media personalities)
3. Clarity of what is Abuse of Power ( serious subject but handled like a child's play)
4. Court management in United Kingdom
5. Incorrect comparison on Brexit by Karan Thapar. Mr Salve - clarified excellently
6. About mischievous media
7. Nonsense talk of media about Supreme Court Judges

Mr. Salve handled it as if a first grade student is asking tough questions to a seasoned professor. One instance where Mr. Salve clarified Karan on Special and replaced it with Different is worth watching and learning.

Great replies by Mr. Harish Salve.

The interview is worthy of watching because of replies by Mr. Harish Salve.


Tuesday 3 December 2019

I K Gujral and Balasaheb Thackeray

Times of India newspaper (print) 4th December 2019 carried an advertisement stating contribution of former Indian Prime Minister I K Gujral.

The advertisement was placed by Maharashtra Government with Chief Minister Uddhav Thackeray photo on it.

It is surprising to understand the relationship between I K Gujral and Balasaheb Thackeray (Shiv Sena).

An internet search could reveal only following interview of Balasaheb Thackeray:

What if there was a strong government at the Centre? Would this have meant the Bharatiya Janata Party-Sena government's dismissal?

It depends on the person. A V P Singh government would have surely acted with vengeance. Remember Amitabh Bachchan? V P Singh would have bayed for our blood. I have basically a sense of respect for I K Gujral. He is a dignified man. I think Gujral wants to remain aloof from dirty political treachery. He's above all this.

I was surprised to hear in the same interview of Balasaheb that I K Gujral was a Communist:

You fought against the Communists, but you have gone to their doors to save your government?

Are you talking about Gujral?

Yes.

No, he is not an umbrella Communist. He is not one of those who will open their umbrella here when it rains in the Soviet Union. He is a Communist of a higher level. Today they don't play the politics of "brothers in red". The world had undergone a drastic change. Be it I K Gujral or Indrajit Gupta, they know it.

Gupta is behaving as a responsible central home minister. I can't openly abuse them as 'red brothers'. Such good people have become a rarity in politics today. That is why people of this country have a lot of hope in Gujral and Gupta. I have myself experienced their non-interference in the development of this nation. They are the people who deserve to be held in high esteem.

Despite both the leaders passed away in the year 2012 (7 years back) and still Shiv Sena Government remembering him, it is a good gesture.

Today it is not clear. Hope i may understand about it later.

Advertisement from Times of India newspaper (online version):

Sunday 1 December 2019

Coincidence or Cartel

Indian telecom industry mainly consist of three main players Reliance Jio, Airtel and Voda Idea.

Thanks to intense price rate cutting Indian users benefited immensely. Mobile phones are available even without any concern about income earning capacity.

It was agreed that the rate and services offered by trio made it difficult for them especially Airtel and Voda Idea to sustain.

On December 01, 2019 all three Jio, Airtel and Voda Idea announced they will increase the tariff rates. I will reproduce it from the newspaper (online) headlines:

Reliance Jio to raise mobile services rates by up to 40% from 6 December.

Voda Idea to raise mobile call, data charges from Dec 3 by up to 42%.

Airtel hikes prepaid tariffs by up to 42%; to charge for calls made to other telcos.

The magic number is 40% to 42%. A very surprising that despite intense competition / rivalry between the three operators they agree with rate of 42% / 40%.

As Sherlock Holmes said food for thought:

Is the above percentage hike a coincidence or an agreed rate hike (cartel)?

Nitin Gadkari - Mission Paani

Worth watching what Indian Minister Nitin Gadkari spoke on Mission Paani.


NCLT - Loan Shifter

Central Government of India appointed National Company Law Tribunal (NCLT) for taking care of corporate insolvency.

The purpose was to recover money for operational and financial vendors.  NCLT will accept companies brought to it by vendors due to Non Performing Assets. After carrying out the necessary process new bidders will be invited for the insolvent companies. Vendors will look into the terms of acquiring and insolvent companies will be sold to highest bidders.

The tragedy.

Company :

Ruchi Soya Total debt Rs.12, 000 crores

Lenders and exposure:

SBI has the highest exposure to Ruchi Soya at Rs 1,800 crore, followed by Central Bank of India (Rs 816 crore), PNB (Rs 743 crore), Standard Chartered Bank India (Rs 608 crore) and DBS (Rs 243 crore). The FMCG major has a total debt of Rs 12,000 crore. 

Major lenders:

Other lenders include Central Bank of India, Punjab National Bank, Corporation Bank, IDBI Bank, ICICI Bank, Bank of India, Standard Chartered Bank India, UCO Bank, Union Bank of India, Bank of Maharashtra, Axis Bank, DBS Bank Singapore, Bank of Baroda, IDFC-Edelweiss ARC, Dena Bank, Karur Vyasa Bank and HDFC Bank.


Haircut (loss to vendors):

Lenders will take 60% haircut. If loan provided by State Bank of India was Rs.1, 800 crore, it will get Rs.1,080 crores i.e. loss of Rs.720 crores.

Problem :

NCLT approved Patanjali's offer of Rs.4, 350 crore resolution plan.  Source of funds "Patanjali will borrow Rs 1,200 crore from SBI, Rs 700 crore from PNB, Rs 600 crore from Union Bank of India, Rs 400 crore from Syndicate Bank and Rs 300 crore from Allahabad Bank. "

My take:

The acquirers should pay cash for procurement of NCLT cases.

In case of Ruchi Soya exposure of State Bank of India is Rs.1,080 crores (old) + Rs.1,200 crores (new) = Total Rs.2,280 crores.

Why private banks are not providing the loans to Patanjali?
Why only public sector banks have to take bulk of the responsibility?

I reiterate following to Government of India?
1. Do not close public sector banks.
2. Ignore private bankers / industrialist statements on Public sector banks.
3. Ultimate responsibility of economic growth is in the hands of Government private players will walk away with fat bonus after selling the shares. 

This looks very weird.

Business loans -  Hefty haircut (form of waiver)
Agricultural Loans for farmers - Waived

Housing loans by individual - Pay principal with interest on time or before time.

I think repeated waiver of loans to Business and Agriculture will create doubts in the minds of honest consumers. Since there are job crunches and less increase in pay structure for honest employees, it is matter of time when they will also stop paying and will ask Government for waiver. 

Signals:

Consumer loans may be the next big headache for NBFCs: RBI report.

Recommendation to NCLT:

Please display the following data for each NCLT case on the website in a tabular form:
1. Company and promoter name , Directors at the time of NCLT reference
2. Vendor wise total debt (interest should be shown separately)
3. Bids received , bid amount and bidder name
4. Selected bidder
5. Mode of payment i.e. cash , debt
6. Source of cash and debt i.e. vendor name
7. Total money recovered as a percentage of total debt
8. Vendor name and the loss suffered due to NCLT
9. Other debts outstanding by insolvent company
10. Time taken for settlement