More Powers to SEBI Planned

Parliament is planning to pass a proposal to give more powers to SEBI. The main aim I guess here is to scrutinise, restrict and disallow certain Foreign Direct Investment.
This step is an exact opposite of stock market functioning. Can the government prevent a thief from buying a share? If it cannot then it cannot also ask thief not to put money in bulk.
When I have a mango to sell, I am interested in two things. First of all I should get a good price. Second is I cannot wait long otherwise the mango will rot. Shares work on such principles. There is a desire to get good price. And there is a force which is against it.
A healthy share system is not governed by laws. It is governed by market forces.
Remember, the old Murphy's law. A thing which can go wrong will go wrong eventually. But by putting a wrong law we cannot have a right system. Unfortunately this is how our system works. It is time to change this. Time to change for the better. Time for BJP.
 

Uncertain Times

The economic scene today seems uncertain. It is mainly due to the crisis in political circles. I shall make you see this in this write-up.
Situation now is,

1. Inflation is easing

• Probably, better transport co-ordination.(Good functioning by transporters)
• Probably, more production. (Kudos farmers)
• Probably, redundancy of middlemen and illegal storage handling. (Fear of police danda)

(People are so fed up of politicians, that the efficiency of transporters, farmers, police have improved).

    2. Gold Import rising

• Probably, businessmen/importers filling demand of public (They are right here)
• Probably, ineffective import duty (Fear of losing votes by politicians)

    3. Petroleum Products

• Factually, rising fuel prices (Incompetent handling of refinery businessmen by politicians)
• The news is, gas for thermal power plants better and improving (rabble rousing politicians(coal scam))

    4. Banking

• We read that, bad loans are there (corrupt politicians inspire people to not return loans by not resigning themselves on money corruption)

   5. Falling rupee

• Image of government is corroding in US. And Narendra Modi (supported by NRIs) has been snubbed by JD(U), though it is none of JD(U)'s business. These two have been perceived bad by Indians, themselves. Then why should NRI care. And the dollar-rupee rates are before you.

It is clear from above that politicians are responsible for economic damage. Yes, it is true. Economy as of today is also an image. Politicians also creating image. Somehow these two are colliding and the economy is suffering.
Solution? Simple. Guidance. Or responsibility. Clearly it is not a one man job. It is a collective responsibility. And who has to lead for collectiveness? Politicians.

Mobile Economy

I have Nokia 510 with Windows 7.8 operating system. I have one SIM card. I neither have two devices or two SIM cards. I had mobiles purchased earlier, but these I have successfully managed to give to my family members. Resources should not be wasted. They should be used wisely.
Each of the mobile / software combination has its own advantages. One cannot have enough of these. If Nokia-Windows promises to give you blur free photographs using advanced hardware and software, Samsung supplies digital pen with some of their devices to develop the artist in you. Then we have Apple with their own high standard audio and video. As a programmer one tends to admire Samsung / Android as these promote free, liberal thinking programmers. Apple and Windows have employees as programmers.
One must realise that we cannot go on manufacturing and allow imports of mobile devices. The government and controlling military is stupid if it thinks that they will satisfy public demands. Instead the government and military command should help the big companies to initiate common hardware and software standard for India. We are a large nation and not scared sheep in lion's garb.
 

Food Security Bill

Economy can be difficult. It is mainly about demand.
In India education and jobs do not require much effort from the politicians. They need not help. The demand from public is so much that education happens. Getting into a job also happens, though may not to the extent of education. These are self driven economies and only opposition we have to these is the dissatisfaction of the people. One may say I did not get right education. Or I did not get right job. These grudges will get a patient hearing only when you are a vote bank. The caste factor. Upper caste people normally are pushed behind by this demand of the public. The merit system may not work.
What about food? One cannot run in an empty stomach and find food. There has to be food security. Amartya Sen, Nobel prize economist quite rightly has advocated for food security bill. He said in one interview that we have enough gold in our country and food security bill should be passed.
Another brilliant thing is the view of the communists. If people in high places are unable to bear grudges against each other then they have to get rid of this grudges first. This would mean that no difference in people are there in economic terms. Every people has similar demand and have equal opportunity to fulfil this demand.
Let us hope that better sense prevails and politicians join hands together and bring into reality Smt. Sonia Gandhi's dream of Food Security Bill.

Go For Gold

The gold is falling.
Cyprus has pledged gold. China economy is slowing. US is planning subsidy reduction. Some banks have reduced value of banks. All these have made gold unattractive.
But in India the demand for gold keeps increasing. Because of two reasons. Population and greed for more. Gold was always felt to be the most stable. And investment in gold is most welcome.
How to buy gold during these times. The best option is to buy in installments. Buy one lot now. Buy another one later. Why? Because gold price may vary. May increase or fall. So, it is safer that one buys gold in installments.
After all, safety is what Indian life is all about.

Insider Trading - Understanding

My blogs may be good. Anil Ambani likes it. He wants to do a favor. He wants to pay money. Will he pay from his own pocket or will he pay from his company's account? If he pays from his own pocket it is insider trading. If he pays from his company's account it is not.
We have seen the attitude of people. The so called high class society. They move in flashy cars, wearing choicest of garments, perfumes. But when it comes to giving alms to beggars, they just raise their window glass.
The above is not involving in insider trading.
Today, the share market is stable. It is no longer vacillating in huge swings. It is due to the commitment of brokers and fund managers who have taken exceptional pride in their jobs and have shown sheer brilliance and apt hard work.
We all need to rise up and give alms to beggars. We all must switch off ACs at red lights and breathe in fresh air. And then we must ask the question "Am I an Inside Trader?"

Respect for rupee

It is a matter of concern when the corruption figures are shown in lakhs of crores. Some newspaper claim that the whole of India can be wiped of poverty with the money that is stored in foreign banks.
What has caused the downfall? People say morality of the people has fallen and they resort to incorrect and illegal activities to achieve things. People hoard perishables and sell them off at convenient times just to earn extra money. People take admission to colleges on the basis of money.
Demand is more than supply. And money is expected to fill it.
The situation now has changed so bad that shopkeepers sell items below MRP. What is it that makes them so confident? Where do they have an extra source of income?
Many times artificial demand is created. When a minister says 100 flats be alloted, their chamchas often keep 70% and 30% are only legally sold as per minister's order. For the other 70% false legal papers, bogus claims etc. are entertained. This is the seed for corruption.
The police have to be extremely strong in such things. They cannot remain quiet. I remember in Howrah station we were prevented taking a bag of rice from the Howrah station to Ballygunge gardens. Because in those days only ration rice was permitted.
Reverting back to old systems is futile. And is not permitted by laws of heat. Entropy cannot be reversed. Yes, Stephen Hawking, the broken cup on the floor cannot join back and fly up to the table. No, it cannot. But I wonder why a human does not pick up the cup, glue it and keep it back.