Case study

Business Standard analyses one family's finances and suggests a way forward

Business Standard

Pledging of shares at seven-year high: study

What does it mean if the shares of a company are pledged by the promoter? Pranav Haldea, managing director of Prime Database, says pledging of shares by promoters is by itself not a bad thing, as it is the fastest and cheapest way to raise funds. But, a combination of high levels of promoters pledging shares, high debt and bad financials can be risky. "While there is no scientific number to the percentage of promoters' shareholding under pledge, if it is more than 50-60 per cent, I would stay away from such companies. Additionally, if there is a market correction and share prices fall, there could be a margin call which might even lead to a change in management. As an investor, I would watch out for such events,'' he adds.Of the 1,517 National Stock Exchange-listed companies, promoters' shares were pledged in as many as 509 companies as on June 30, compared with 496 companies a year before.As on August 11, the number of companies in which promoters' shares were pledged increased to 522

UPI: It's not only about transferring money

The interface allows you to add multiple banks and transfer money, even between payment wallets, for a fraction of existing costs

Register the property as soon as you book

You can get indexation benefit on each instalment paid at the time of selling

UPI will make mobile payments easier

You can even send a collection request if you have loaned money to someone. If he does not approve the payment, his intention would be suspect

How UPI may score over IMPS for making mobile payments

Click on graphic

Business Standard analyses one family's finances and suggests a way forward>Status & GoalsKurien is a retired person and living alone in his self-owned apartment. His wife expired two years ago. His children are married and well-settled. He has a huge insurance premium payment liability, due to insurance policies mis-sold to him. Kurien wants to see if his funds are adequate to ensure a comfortable retirement.

Realty check

Rajiv Anand, executive director, retail banking, Axis Bank, answers your questions

Readers' Corner: Banking

The builder must get occupancy certificate on time. In case of any delay, the builder must compensate the buyer with rent for that period

Allotment of flat without OC is illegal

If you are in your 40s and not saving enough, here are a few ways to set it right

Fast-track your savings for retirement

Bank frauds: Limited liability for customers?

Facebook, Twitter, Google to battle online extremism

If RBI's recommendations are finalised, it will give more teeth to the existing fair practice code

Now, quote PAN if e-wallet spend exceeds Rs 50k a yr

Recently, Edelweiss Financial Services launched a Wealth Pack app

Apps to manage your expenses

Prices are hitting levels where double-digit growth would be required to justify valuationsAn old saying, 'Follow the Money' often helps clear up apparently mysterious business developments. Financial inflows can be a very good indicator of rising demand and activity. A look at inflows to the so-called core and infrastructure sectors over 2015-16 makes one wonder if there has been much in the way of genuine growth in these areas.Data are available from several sources of funding such as bank credit, external commercial borrowings (ECBs), initial public offerings (IPOs) and foreign direct investment (FDI) inflows. Overall, gross bank credit to mining, petroleum, gas & coal, cement, iron & steel, construction, power, telecom, roads and other infrastructure grew only four per cent, up from Rs 14.3 lakh crore in 2014-15 to Rs 14.9 lakh crore in 2015-16. Credit growth was flat in construction, and shrank in telecom, cement and petroleum.There were a total of six infrastructure IPOs

The bubble in infrastructure

Rally in gold may continue

A woman buying gold as part of Dussehra celebrations in Mumbai (pic: Kamlesh Pednekar)

There may be further upside, as negative real interest rates in developed world unlikely to end soon

New vehicles act will encourage people to buy motor insurance

Expect premiums to go up or introduction of a co-pay option for third-party damage

Motor Vehicles Act: Steep fines make insurance important

EPFO avoids private route for ETF corpus management

Benefit from low expense ratios of ETFs

Expense ratios of ETFs have declined primarily due to fund houses' desire to attract institutional money, chiefly from the EPFO

India retirement system ranks last in the global pension index

Buy a retirement home for use, not for investment

Independent living for senior citizens

Business Standard analyses one family's finances and suggests a way forward>Status & GoalsIndranil works as a project manager with an infrastructure company, while his wife is a homemaker. Their son, Rahul, is studying in the third year in an Indian Institute of Technology. The couple primarily wants to fund their son's master's degree, followed by retirement planning

Like banks, Piramal to extend line of credit to developers

Track record of fund manager most relevant

AIFs give wider choice, diversification and could offer unique investment options. But the amount of research required from investors is a lot more

Kuldip Kumar, partner and leader, personal tax, PwC India, answers your questions

Readers' Corner: Taxation

Real estate

In the past three to four years, this area has become one of the most preferred residential markets for people working in the Camp areas

Page 8 - Investment