This open letter was half written, and lying saved on my Tweetcaster
To be finished & Tweeted to FM.
Yesterday, a Young 18 year old Chartered Accountancy Student, Abir Satsangi (Who is a protégé of sorts(More for Music as he is a singer, a great singer at that, but we have discussed & argued on life, music, palmistry, THE NEW COMPANY LAW!!!! He wasn't even a school passout then and was studying in Class XII) I must admit, at 18, he is immensely knowledgeable, his hold on accountancy, Taxation Law, Company Law & Commercial Law, is par excellence, I could gauge this, from his probing Facebook Status'!! He even got a 98 in Hindi(probably in Genes, his grandma is a knowledgable Hindi exponent.
He is originally from Agra,
Now studying in Mumbai, posted a status, that he wants to rise to be a panelist on Arnab Goswami's The Newshour.
A few comments from me, on constant propogation of 1% POV on TheNewshour in specific & The Times of India group, in general, I advised him to take, what is expressed on The Newshour, with a pinch of salt. Also that, as a future CA, his interest, lies in following the ToI POV, but at the same time, he should keep the Ethical issues in mind. I actually had a case study of Harshad Mehta, immensely knowledgable Stock Trader on the New India Assurance Co Ltd(the best Non Life Indurance firm under GIC in India) dealing room, and future Dalal Street Broker & Dr Chain Roop Bhansali(well known as CR Bhansali or CRB ) The Kolkata Chartered Accountant, both though highly knowledgable, used their knowledge for unethical money earning frauds.
I totally agree with Abir's view, that, he is still in a learning process, and that Arnab Goswami is fearless, honest & exposes scams and frauds(TOTALLY ON THE SAME PAGE WITH Abir on this)
All the same, I would want to drill the ethical issues into this brilliant future CA, so that, not only he, but those who are involved with him in future career,onnhis advise &,counsel stay firm, on the Ethical Path.
Here's the Facebook note I wrote for him.
Plus this extremely researched Open Letter to The FM.
My intentions are for public good of 26,Crore Employees, covered by EPFO.
Have no personal agenda in this, financial, politicL, or social.
This was written prior to June 10, 2014 before the Annual Budget was presented by the Honourable Minister for Finance.
I'm happy to note & thank the FM for an excellent budget, which is salaried class friendly, also noting his revival of in principle support to encourage small savings instruments, like PPF(limit of annual deposit enhanced to Rs1,50,000 from Rs1,00,000 &,Sec 80C of the Incime Tax Act 1956, enhanced to Rs1,50,000 from Rs1,50,000) and Kisan Vikas Patra(KVP) and National Savings Certificate(NSC) and also Post office savings scheme
So, I'm sure that the suggestion from me will be taken as suggested.
In other development,
I have read an interview of Mr K K Jalan, the Chief Commisioner of Provident Fund EPFO, stating that, no decision is taken yet, on investing EPFO trust funds into equity.
Also that Unions/Bharatiya Majdoor Sangh(surprisingly NOT CITU) has opposed the move to invest EPFO trust funds into equity.
Preclude
My blog dated 12 June, 2012,
"Moody Blues: Why standards at S&P are SO poor!!!"
Open Letter
To,
@narendramodi @PMOIndia
@arunjaitley FM, India,
Dear Sir,
Robert Dreyfuss, a contributing writer, to motherjones, much like me,
Wrote an scathng warning note to President Clinton, about what Bush Administration did later, which affected millions in US, with the fall of Lehman Brothers & AIG.
Against privatisation of pension fund investments(being pushed aggresively by Bankers & Insurance Firms) I am a banker, I warn you against such move, it could be fatal.
#EPFO investing in 5% #stocks
Reminds me of Lehman Brothers, AIG, Fannie & Freddie Mac, UBS
US Pension funds, erosion of social security.
Why?
Government of India,
Found, that, with 21/25 PSU Banks,
Being out of investment purview of
EPFO FDs worth Rs3,50,000 Crores, as their NPAs were exceeding requisite threshold limit of 2%
Read here.
http://articles.economictimes.indiatimes.com/2014-06-20/news/50739344_1_epfo-term-deposits-provident-fund-organisation
What did GoI do?
Instead of Allowing 5/26 PSU Banks acquiring these investments,
It allowed EPFP to invest % of its Investible Trust Funds into #equity & #Stocks.
It has hence liberalised investment
by EPFO, jeopardizing the funds, of millions of organised sector wokmen,
Held in "TRUST" for the purpose of social security, retirement benefits, saving it for a rainy day, when the employee retired, he could use THIS FUND, by investing it, in the whichever manner , S/he deems fit, and use the annuity proceeds out of it, to cater to the needs of himself & his family.
Not only is the decision highly objectionable, risky & full of risk,
but also, full of malafide intention to defraud the wealth of the average "Workperson" of India .
By such investment, there is a huge risk, of wiping out the whatever growth, EPFO investibles are likely to have otherwise .
Normally, both EPFO as well as Retired Personell, invest in Bank FDs, RBI Bonds, NSC's, KVP's, LIC annuity based scheme, NEVER IN EQUITY, MUTUAL FUNDS OR SIPS!!!
It has been an experience, both during 1993 & 2000 stock market crashes, that, children of retired persons, misguided their parents, to invest in stock market, looking at the 20% gain.
What actually happened was,
The entire proceeds of their retirement benefit social security maturity investibles, were wiped out.
The same happened to Acharya Tulsi Trust funds, during C R Bhansali scandal.
More importantly,
This is the worst time to enter into the stock market.
The #BSE #Sensex as well as the sectoral indices are 133% to 190% above their 2013Q4 levels.
Graph here.
Sensex May 2013 to June 2014
http://www.bseindia.com/indices/IndexArchiveData.aspx?expandable=1
Sectoral Indices 2012-2014
Index Watch see 52 week high/low ranges please.
http://www.bseindia.com/indices/IndexHighlight.aspx?expandable=2
Here are some relevant links
To support why EPFO Trust funds,
Must NOT be invested in Stocks & Equity Markets.
1. Sweeping reforms wipe out 2013 profits of Vatican Bank.
2. Meltdown of Late 2000s wikipedia.
3. CRB Scam & Acharya Tulsi.
4 Equity vs Debt ratio during advancing age.
5. Why Lehman Brothers collapsed.
6. JP Morgan Chase Europe fiasco.
7. What did the collapse (This is post mortem, Robert Dreyfuss & mine forewarning) of AIG mean to millions of people, who invested into peIndia, (read pension) funds.
8. What is the situation (A Compelling MUST READ OF TRUE STORIES OF PEOPLE LIKE ME & YOU Aam Aadmi/Common Man's Woes :( ) of American Middle Class families retirement planning &
pension funds.
9 Martin Feldstein, HA!!! economic influencer MY FOOT
To be finished & Tweeted to FM.
Yesterday, a Young 18 year old Chartered Accountancy Student, Abir Satsangi (Who is a protégé of sorts(More for Music as he is a singer, a great singer at that, but we have discussed & argued on life, music, palmistry, THE NEW COMPANY LAW!!!! He wasn't even a school passout then and was studying in Class XII) I must admit, at 18, he is immensely knowledgeable, his hold on accountancy, Taxation Law, Company Law & Commercial Law, is par excellence, I could gauge this, from his probing Facebook Status'!! He even got a 98 in Hindi(probably in Genes, his grandma is a knowledgable Hindi exponent.
He is originally from Agra,
Now studying in Mumbai, posted a status, that he wants to rise to be a panelist on Arnab Goswami's The Newshour.
A few comments from me, on constant propogation of 1% POV on TheNewshour in specific & The Times of India group, in general, I advised him to take, what is expressed on The Newshour, with a pinch of salt. Also that, as a future CA, his interest, lies in following the ToI POV, but at the same time, he should keep the Ethical issues in mind. I actually had a case study of Harshad Mehta, immensely knowledgable Stock Trader on the New India Assurance Co Ltd(the best Non Life Indurance firm under GIC in India) dealing room, and future Dalal Street Broker & Dr Chain Roop Bhansali(well known as CR Bhansali or CRB ) The Kolkata Chartered Accountant, both though highly knowledgable, used their knowledge for unethical money earning frauds.
I totally agree with Abir's view, that, he is still in a learning process, and that Arnab Goswami is fearless, honest & exposes scams and frauds(TOTALLY ON THE SAME PAGE WITH Abir on this)
All the same, I would want to drill the ethical issues into this brilliant future CA, so that, not only he, but those who are involved with him in future career,onnhis advise &,counsel stay firm, on the Ethical Path.
Here's the Facebook note I wrote for him.
Plus this extremely researched Open Letter to The FM.
My intentions are for public good of 26,Crore Employees, covered by EPFO.
Have no personal agenda in this, financial, politicL, or social.
This was written prior to June 10, 2014 before the Annual Budget was presented by the Honourable Minister for Finance.
I'm happy to note & thank the FM for an excellent budget, which is salaried class friendly, also noting his revival of in principle support to encourage small savings instruments, like PPF(limit of annual deposit enhanced to Rs1,50,000 from Rs1,00,000 &,Sec 80C of the Incime Tax Act 1956, enhanced to Rs1,50,000 from Rs1,50,000) and Kisan Vikas Patra(KVP) and National Savings Certificate(NSC) and also Post office savings scheme
So, I'm sure that the suggestion from me will be taken as suggested.
In other development,
I have read an interview of Mr K K Jalan, the Chief Commisioner of Provident Fund EPFO, stating that, no decision is taken yet, on investing EPFO trust funds into equity.
Also that Unions/Bharatiya Majdoor Sangh(surprisingly NOT CITU) has opposed the move to invest EPFO trust funds into equity.
Preclude
My blog dated 12 June, 2012,
"Moody Blues: Why standards at S&P are SO poor!!!"
Open Letter
To,
@narendramodi @PMOIndia
@arunjaitley FM, India,
Dear Sir,
Robert Dreyfuss, a contributing writer, to motherjones, much like me,
Wrote an scathng warning note to President Clinton, about what Bush Administration did later, which affected millions in US, with the fall of Lehman Brothers & AIG.
Against privatisation of pension fund investments(being pushed aggresively by Bankers & Insurance Firms) I am a banker, I warn you against such move, it could be fatal.
#EPFO investing in 5% #stocks
Reminds me of Lehman Brothers, AIG, Fannie & Freddie Mac, UBS
US Pension funds, erosion of social security.
Why?
Government of India,
Found, that, with 21/25 PSU Banks,
Being out of investment purview of
EPFO FDs worth Rs3,50,000 Crores, as their NPAs were exceeding requisite threshold limit of 2%
Read here.
http://articles.economictimes.indiatimes.com/2014-06-20/news/50739344_1_epfo-term-deposits-provident-fund-organisation
What did GoI do?
Instead of Allowing 5/26 PSU Banks acquiring these investments,
It allowed EPFP to invest % of its Investible Trust Funds into #equity & #Stocks.
It has hence liberalised investment
by EPFO, jeopardizing the funds, of millions of organised sector wokmen,
Held in "TRUST" for the purpose of social security, retirement benefits, saving it for a rainy day, when the employee retired, he could use THIS FUND, by investing it, in the whichever manner , S/he deems fit, and use the annuity proceeds out of it, to cater to the needs of himself & his family.
Not only is the decision highly objectionable, risky & full of risk,
but also, full of malafide intention to defraud the wealth of the average "Workperson" of India .
By such investment, there is a huge risk, of wiping out the whatever growth, EPFO investibles are likely to have otherwise .
Normally, both EPFO as well as Retired Personell, invest in Bank FDs, RBI Bonds, NSC's, KVP's, LIC annuity based scheme, NEVER IN EQUITY, MUTUAL FUNDS OR SIPS!!!
It has been an experience, both during 1993 & 2000 stock market crashes, that, children of retired persons, misguided their parents, to invest in stock market, looking at the 20% gain.
What actually happened was,
The entire proceeds of their retirement benefit social security maturity investibles, were wiped out.
The same happened to Acharya Tulsi Trust funds, during C R Bhansali scandal.
More importantly,
This is the worst time to enter into the stock market.
The #BSE #Sensex as well as the sectoral indices are 133% to 190% above their 2013Q4 levels.
Graph here.
Sensex May 2013 to June 2014
http://www.bseindia.com/indices/IndexArchiveData.aspx?expandable=1
Sectoral Indices 2012-2014
Index Watch see 52 week high/low ranges please.
http://www.bseindia.com/indices/IndexHighlight.aspx?expandable=2
Here are some relevant links
To support why EPFO Trust funds,
Must NOT be invested in Stocks & Equity Markets.
1. Sweeping reforms wipe out 2013 profits of Vatican Bank.
2. Meltdown of Late 2000s wikipedia.
3. CRB Scam & Acharya Tulsi.
4 Equity vs Debt ratio during advancing age.
5. Why Lehman Brothers collapsed.
6. JP Morgan Chase Europe fiasco.
7. What did the collapse (This is post mortem, Robert Dreyfuss & mine forewarning) of AIG mean to millions of people, who invested into peIndia, (read pension) funds.
8. What is the situation (A Compelling MUST READ OF TRUE STORIES OF PEOPLE LIKE ME & YOU Aam Aadmi/Common Man's Woes :( ) of American Middle Class families retirement planning &
pension funds.
9 Martin Feldstein, HA!!! economic influencer MY FOOT
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