CSGL Account stands for Constituent Subsidiary General Ledger Account (phew!). Certain SGL holders like corporates, PF trusts, individuals, institutions, state governments, Nri, Ocbs, FIIs, – registered with Sebi/Rbi can open a CSGL account but not a SGL account. It is a second SGL account at a PDO so that they can act as a custodian […]
Thank God I am not an expert on debt. Or of debt repayments for that matter! The caveat first – I hate debt. I hate debt. I hate leverage. I rarely do an Options trade, nor do I ever buy a share in a Futures trade. All assets have been paid and bought. Now let […]
What are the advantages of investing in Government Securities? are there any at all? Yes. Let us look at some of them: 1. No TDS – immaterial of amount there is no TDS / no witholding tax on the principal. Very useful if you are a big company but have no tax liability because of […]
A few days ago India’s largest bank dropped its interest rates on home loans to 8%. This is nothing short of sensational – considering that at the same time one of the top Indian groups (let us say Bluest of Blue) are willing to borrow in the same market at 12% per annum! However, I […]
The easiest way to define ‘liquidity risk’ is risk that arises from the difficulty of selling an asset. An investment may sometimes need to be sold quickly. The reasons can be different for individuals and different for an investment manager. Unfortunately, an insufficient secondary market may prevent the liquidation or limit the funds that can […]
How safe are government securities? Is this a question bothering you? Welcome. Many people have asked me this question, and I have struggled to explain the answer. Central Government securities are 100% safe. These are what are called ‘Soverign Paper’ and is guaranteed by Pratibha Patil – the Government of India! Interest rate payments, principal, […]
When the finance minister says something, you listen. Especially if you are a PSU bank – and even if you are the biggest. The PM/ FM combine know that elections are coming, so they should look good. How can you look good? By reducing the prices of petrol, and makaan. However as the government does […]