Friday, January 13, 2012
QUICKIES
Where should NRIs invest their gains from a weak rupee
The rupee was quoting at 44.8001 against the US dollar seven months ago, and has depreciated 18.28% since then.
A falling rupee is not the best news for us, but it definitely is for exporters and NRI investors who will receive more rupee funds on conversion.
Given the current scenario, NRIs have some good investment options to park their surplus funds.
The rupee was quoting at 44.8001 against the US dollar seven months ago, and has depreciated 18.28% since then.
A falling rupee is not the best news for us, but it definitely is for exporters and NRI investors who will receive more rupee funds on conversion.
Given the current scenario, NRIs have some good investment options to park their surplus funds.
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Fixed income mutual funds: A range of fi xed income mutual funds offer customers the combined benefi t of attractive returns with full repatriability, low cost, convenient processing and ease of portfolio tracking. Safe investors should opt for liquid plus funds. Bond funds/longer-duration gilt funds: They are meant for investors who are comfortable with some price uncertainty. "They can benefit from any potential capital gain arising out of any reduction in future interest rates. Also, any appreciation in the rupee over the investment period would imply additional returns," VISHAL KAPOOR, Head, Wealth Management, Standard Chartered Bank, India. NRE deposits: "They are clearly the best option after the deregulation by RBI. Short-term deposit rates are attractive due to tight liquidity conditions in money markets while being tax free," Medium term (1-3 years) Balanced mutual funds/NRE deposits: You can opt for either of these instruments depending on whether the horizon is one or three years, respectively. "The choice depends on the kind of price volatility and whether the investor is seeking a guaranteed return or not," JAYANT PAI, CFP, Vice-President, Parag Parikh Financial Advisory Services. Fixed maturity plans: They are an attractive option for customers looking to locking in at prevailing high rates. For risky investors, Indian equities may offer signifi cant long-term opportunities. "Investors could participate through selective stocks or through a wide range of equity funds with good track record. The quarter ahead may offer selective buying opportunities for active investors, or one could choose to simply stagger investments through a defi ned period, using systematic transfer from debt to equity funds,". Long term (3 years or more) Diversified equity funds (through SIPs): They are good options at the current rates. FDs are not a good option as the uncertainty of foreign exchange movements may not be fully compensated by interest rates. "However, risk averse depositors may chits. Gold ETFs are also a oose long-term NRE deposgood option," says Pai. Investors should allocate their funds using a strategic allocation model tailored to their individual risk profi le. This should normally combine debt, equity as well as alternative assets. Clearly, debt offers a very attractive opportunity in the near term but one should also keep in perspective the attractiveness of Indian equities over the medium to long term. Realty Check Real estate as an investment option makes sense if you plan to return to India after some time. However, you should choose a location that is familiar to you and stick to a reputed builder, given that proximity is an issue. From a pure investment angle too, the same caveat applies: Familiarity and reputation. Also, there is greater chance that projects of reputed builders will appreciate more than others'. Also, as NRIs are not permitted to purchase plots of land/plantations/farm houses. Even commercial real estate is subject to a plethora of limiting regulations. Purchasing apartments or bungalows maybe the only options available. It is difficult to give a ballpark estimate regarding returns, as it will depend on the location and various other factors. However, as an investor you have to be cautious in the near-term since it is an interest rate sensitive sector and demand may be impacted by relatively high interest rates. "It is imperative to find out whether one is allowed to invest in an instrument by RBI as well as by the country of their residence. For example, several bonds don't have separate clauses which allow for NRIs to invest in them," says Banerjee of Ambit Capital. Choosing The Right Investment Liquidity, post-tax returns, price volatility and credit risk are the crucial factors that should determine the choice of the instrument you invest in. The amount of foreign exchange risk one is willing to undertake is also a crucial factor. Of course, the forex risk is always present in all options other than FCNR deposits. Convenience and trust need consideration. One may choose those options where he/she can transact online. This enables easier portfolio tracking. Suitability of the product/asset based on endogenous factors such as age, economic situation, liquidity considerations etc. are the same as those for resident Indians. |
Curb on fly-by-night NRI grooms
AHMEDABAD: NRI grooms flying down to marry Gujarati girls during this wedding season for 'chat mangni pat byah' may not be able to fly back immediately. As per new registration norms, NRI grooms will have to flash altered marital status on their passports, which is a measure to check the trend of fly-by-night weddings.
Authorities have introduced these measures to curb the menace of NRIs coming and marrying local girls while on vacation in India and then dumping them just before leaving the country.
Gujarat University has submitted a research on the menace of fly-by-night marriages to the state and central ministry and GOPIO authorities. And thanks to their efforts, the new rule now demands that an NRI who gets married in India has to alter his marital status on passport - a procedure which the local marriage registration bureau would do with add-on documentation on the groom's passport.
Dr Neerja Arun, director of the study abroad program, Gujarat University and Group of People of Indian Origin researcher on Indian Diaspora (GOPIO), who led the research on the menace of such marriages, said, "Due to alarming rise in failures of NRI weddings, we conducted a detailed research on what makes NRI grooms to come to India to get married. And we found that in majority of the cases it is parental pressure. NRI boys who are visiting their parents during holidays are often pressurized to marry a local girl. And hence they lack moral guts; they get into a marriage without taking it seriously and often do not get into legalities of registrations. On completion of holidays, they go away and their brides keep waiting. These abandoned - destitute women can not even file for a divorce as they are often helpless and do not know which legal route to take."
Researchers at the Gujarat University focused on this growing menace and submitted a detailed report to ministry of overseas Indians affairs (MOIA), Pravasi Dekh-Rekh Samiti, NGO in New Delhi and GOPIO about three years ago.
With this, the central ministry issued an add-on to the existing norms which now require NRI grooms getting married in India to get their marital status on passports altered before they leave, informed J C Sharma, former secretary of Union ministry of external affairs and a high-level committee of Indian Diaspora who was recently in city to inaugurate the local GOPIO chapter.
Lawyer NN Goel dead
Dehradun, January 12
NN Goel, doyen of Dehra Dun lawyers, died here this morning following a cardiac arrest. He was 92. His wife Rajni of 65 years had died 13 days before on December 31 last.
Members of the Bar and the judiciary turned up in large numbers to mourn the death of Dehra Dun’s seniormost lawyer who continued to attend courts till the very end. The courts remain closed today to pay homage to Goel.
He was also recently felicitated by the Dehra Dun Bar Association for being the longest practising lawyer. A large number of people attended his cremation this afternoon.
Battle of the ballot eludes military personnel
Chandigarh, January 12
Tens of thousands of serving armed forces and para-military personnel as well as members of their families residing in Punjab will be unable exercise their right to franchise despite their eligibility to vote being guaranteed by constitutional provisions and Supreme Court rulings. The same may also hold true for other states which soon go to poll.
Tens of thousands of serving armed forces and para-military personnel as well as members of their families residing in Punjab will be unable exercise their right to franchise despite their eligibility to vote being guaranteed by constitutional provisions and Supreme Court rulings. The same may also hold true for other states which soon go to poll.
The crux of the issue lies in the definition and applicability of “Service Qualification”, contained in the Election Commission of India’s (ECI) handbook for Electoral Registration Officers (ERO), which has been changed over the years to render servicemen ineligible.
Armed forces personnel and their family members have the right to get themselves registered as voters at the place of their posting. Section 19 of the Representation of the People (RP) Act, 1950 lists only two conditions-above 18 years of age and being ordinarily a resident of an Indian constituency-to be enumerated as a voter.
Chapter 10 of the ECI’s handbook for EROs bars government employees with Service Qualification (SQ) from being registered as voters. In addition to a large number of military stations, Punjab has a huge presence of para-military personnel who, besides being on permanent government duty, are subject to local laws and taxes.
In a letter written to the Chief Election Commissioner SY Quraishi on the topic a few days ago, Punjab Minister for Legal Affairs and Defence Services Welfare Capt Balbir Singh Bath has termed the ECI’s handbook as “defective”. He said that such discrimination against soldiers was not justified and taxation without representation was a “tyranny”.
Several ex-servicemen’s associations have also taken up the matter with the ECI as well as state electoral authorities, adding that provisions of the ECI’s handbook are in violation of article 14 of the Constitution.
SQ was extended to armed forces personnel under Amendment Act 2 of 1956 and was applicable only to those posted abroad so that they could cast their vote through postal ballot. However, SQ was “wrongly” applied to those posted in India, amounting to denial of the right to vote, according to ex-servicemen who are pursuing the issue.
The problem was further compounded after Amendment Act 47 of 1966, which deleted the words “persons when posted aboard” from Section 20 of the RP Act. The deletion of the words was recommended by the ECI after the Home Ministry proposed extending SQ to the state armed police when deployed outside their home state, even though SQ was then applicable only to armed forces personnel posted abroad.
The deletion led to SQ becoming legally applicable to military personnel residing in India and it implied that they could vote only through postal ballot during elections in their native place.
The Supreme Court, in its ruling in 1971 upheld the registration of Assam Rifles personnel at their place of posting in Nagaland and ruled that SQ cannot take away the right of service personnel to be registered as their place of posting in India. Further, in 1984, the apex court ruled that the ECI cannot override provisions of the Act and rules and its powers are meant to supplement rather than supplant the law.
In March 1995, 24 years after the ruling, the ECI issued a letter stating that armed forces personnel can vote at their place of posting if they do not want to avail the facility of postal ballot. Based on this letter, Army Order 15/950 was issued, stating that service personnel can vote at their place of posting.
Armed forces personnel and their family members have the right to get themselves registered as voters at the place of their posting. Section 19 of the Representation of the People (RP) Act, 1950 lists only two conditions-above 18 years of age and being ordinarily a resident of an Indian constituency-to be enumerated as a voter. Chapter 10 of the ECI’s handbook for EROs bars government employees with Service Qualification (SQ) from being registered as voters. In addition to a large number of military stations, Punjab has a huge presence of para-military personnel who, besides being on permanent government duty, are subject to local laws and taxes.Bar council opposes education Bill
Advocates of Punjab, Haryana and Chandigarh to go on strike on Jan 20
Chandigarh, January 12
Terming the Higher Education and Research Bill, 2011, as “undemocratic” and “motivated” to regulate the legal education sector in the county, the Bar Council of Punjab and Haryana today opposed the bill.
Terming the Higher Education and Research Bill, 2011, as “undemocratic” and “motivated” to regulate the legal education sector in the county, the Bar Council of Punjab and Haryana today opposed the bill.
Now on the call given by the Bar Council of India (BCI), advocates of Punjab, Haryana and Chandigarh would go on strike on January 20.
Lekh Raj Sharma, chairman, Bar Council of Punjab and Haryana, said with this Bill, the Union government had tried to take away the powers of the BCI to regulate the legal education sector of the country.
He added that the Union government was in so hurry for the bill that the new bill was approved without any consultation with the members of Bar.
An emergency meeting has also been called on January 15 in Chandigarh, he added.
Amrik Singh Kalra, secretary of Bar Council of Punjab and Haryana, said as per the Advocates Act, 1961, lawyers want to be independent of the government control but the Centre is trying to take control over the advocates and legal education.
He added that the Bar council can smell the hidden agenda of the government in bringing this Bill. With this Bill, the government is planning to allow foreign nationals to practice as advocates in India. The Bar council would also oppose any kind of the hindrance in the smooth functioning of the bodies established under the Advocates Act, 1961, he added.
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