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.

BSE - Bearish Steered Entrepreneurs

The sentiment at BSE (Bombay Stock Exchange) is bearish. The sensex is just below 20000 and Nifty just below 6000. They do not seem to cross these magical marks. However clever brokers might be, the FII seem to be calling it a day, everyday and seem to be dictating terms on them.
The process of turning the black money white started years back. Suddenly we could see a lot of rich people appearing with cars, ACs and modern gadgets at their disposal. Loans became easy and money was not restricted in selected circles only and that too hidden. Most of Indian businessmen made money riding with the tide. The cars, ACs and cellphones were the waves they rode on and businessmen made a few bucks. But this was the maximum they could foresee. They were otherwise blind in seeing the future and in seizing the opportunity and making billions of dollars. They made only a few thousands.
Today, it is different. It is a much better connected world today. Most of the systems have been computerised and businessmen are expected to change with time. But it is hard to believe and accept that the business community has not changed. They are still "old wine" in a "new bottle".
Take for example the Sahara case. The SEBI action on Sahara group is a sadistic action of words and letters by SEBI. Why corner and bully on a single company? That too at every opportunity and every now and then. It does not seem to be India. It seems primitive Arabia.
The central government has done its maximum by delaying GAAR. It is upto brokers to capitalise on this and  make investment friendly atmosphere. It is time that every businessman worth his penny realise that the systems are no longer the same. The time calls for attracting funds from tax havens and FII.
The businessmen have to be told in harsh words that if they keep going the way they have been going in the recent past they will only achieve nothing. It is time to make investment in India attractive for investors from tax havens countries. This is the way out for them.

Budgets 2013

The railway budget and union budgets have been presented in the parliament.
The railway budget has provisions of WiFi on trains. People were commenting on uncleanliness of our toilets. No one seemed to have suggestions. Dry soil toilets can be designed which can be rotated and mixed and used upto 5 to 6 toilet sessions.
Increase in rail reservation fees are practical steps to increase revenue for rail IT setups. It would have been better if investment is made in research to tackle crowd in passenger trains.
Our food and petroleum subsidies are very high. The government cannot tackle this on its own. Private public participation is a must to tackle this burden. It calls for a strong government at the center. People should support the government and should vote collectively for a secular, principled party at the center. A party which is experience itself personified. A party which is no different from the very definition of our country. Which party, you ask? Well, ask yourself. 

Shares Buyback

Warren Buffet of Berkshire Hathway made fortunes in share by using intelligence and diligence. He was a pioneer in buyback of shares. If the share market does not give him the money the shares deserves he would buyback. He knew his value and never hesitated to assert it as an action.
In India, we have seen reports of partial buyback. This is treated as unwelcome by SEBI and Shri Sinha is framing rules to prevent them.
The earlier SEBI chief Bhave was rumoured to be Ambani protege. Shri Sinha was in Finance ministry, Central Government and took the office of SEBI with confidence. From what we could read in newspapers, he seemed to have won the confidence of many over there in Mumbai Dalal Street.
Now this shares buyback thing. One thing why should not a businessman buyback his shares? Secondly why should not he buyback partially? It is a pure financial decision of the businessman which makes him do what he feels the best for his shares.
Framing rules like a government, by SEBI is uncalled for. What profitable financial activity is done by the government? Its activities are a loss in terms of fiscal deficit. Framing rules like government will only result in more and more malpractises. It is a wrong medicine for an incorrectly perceived illness.
 

Changing Times

The times are changing fast. The economy of India is facing challenging times. However many of our CEOs seem to be comfortable with future, as a survey indicates.
The Finance minister is waging a war promising a brave approach to issues. He is confident of reducing deficit and enhancing growth without burdening the corporate world much in terms of taxation in his near future budget.
In the IT world, HCL has re-aligned their business into three major categories. They seem to be getting prepared to align themselves with the changing times. The step seemed very practical.
The resignation of Bharati Airtel CEO, Sanjeev Kapoor over his assignment to Africa seemed bad. One has to take challenging assignments and give out the best for one's company and country.
What can be the prescription to deal with these times. Increasing consumption in IT software and training is a reasonably good way to boost the economy. Quality music, e-books must be bought by payment and in fact government must take steps to ensure financial worthiness to IT software industry and boost consumption.