Flame Newsletter - June 11, 2014


QUOTE OF THE WEEK:

Am conscious of the fact that I am taking over at a very challenging time, there’s a need to rebuild confidence. We have to restore growth, contain inflation, and concentrate on fiscal consolidation. - Arun Jaitley, Union Finance Minister

YOUR FINANCE DEMYSTIFIED:

Know more about e-voting system for shareholders

All of us know that shareholders normally exercised their votes on resolutions proposed by companies through postal ballot. If a company decides to pass any resolution by resorting to postal ballot, it will send a notice to all the shareholders, requesting them to send their assent or dissent in writing on a postal ballot. The process—of seeking shareholders' approval through postal ballot—is not only time consuming but also involves huge cost such as administration and posting costs, paper work, etc. To avoid all these hassles, the new Companies Act 2013, has introduced the concept of voting through electronic means.

E-voting is a common Internet Infrastructure that enables the investors to vote electronically on resolution of companies. Electronic voting replaces the postal ballot process and saves time and cost of the company. e-Voting is a mechanism through which security holders of companies can vote on resolutions electronically any-where and at any-time during the period of voting, through the electronic voting system developed by NSDL and CDSL Ventures Ltd (CVL). In case of e-voting, there is no physical collection and counting of postal ballot papers. Also, there is no need for verification of signatures of the shareholders who have exercised their votes... Read more

Should I go for a home loan or wait for rates to come down?

The best time for taking a home loan is when you have already shortlisted a house you want to buy. Waiting for interest rates to come down is an exercise in futility because your home loan is for a long period and rates are bound to fluctuate. A smart borrower will troll the market for the best deal.

There are many home loan plans available in the market. Different banks offer various kinds of home loan options. Currently, all the banks across India are offering home loans at the rate of 10.15% to 10.5% per annum in all range of loan amounts.

People equipped with relevant information about home loans, banks, interest options and EMIs are the ones to make best choices while selecting a loan. Let’s look at a broad guideline for a buyer going for home loan: Predicting the rise or fall of interest rate is difficult, therefore, the time to take home loan should instead depend on nature of the loan... Read more

DID YOU KNOW?

What is dematerialisation of securities?

As a share or debenture holder, it is important for you to be aware of the procedures to manage your investment in securities (the collective name for equity shares, debentures, bonds, mutual fund units etc.)

Managing your investment in securities is simple and easy in electronic form (dematerialised form) and it has many advantages over managing it in physical form (share / debenture certificates). Accordingly, this write-up details dematerialisation of securities, its advantages and how to manage your investment in demat mode... Read more

TERM OF THE WEEK

Show cause order: A show cause order is an order of the court, directing a party to a lawsuit to appear on a certain date to show cause why the judge should not issue a specific order or make a certain finding. It is also called an order to show cause or OSC.

IN THE NEWS THIS WEEK

RBI simplifies KYC norms for bank a/cs

Understanding insurance repository and e-insurance

General insurers total premium rises 6% in April

MFs pump in funds worth Rs 1.5 trillion in May

ABOUT FLAME

FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.



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