Saturday, 31 August 2013


Theme for this fortnight: REAL ESTATE

          In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. If this situation is not corrected, it will eat up all of the owner's profit, leaving him or her with negative cash flow. Hence, it is called 'Alligator' property.

Thursday, 29 August 2013


Today's word: BRIDGE LOAN
Theme for this fortnight: REAL ESTATE

           A form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. Also known as "swing loan."

Wednesday, 28 August 2013


Theme for this fortnight: REAL ESTATE


              A euphemism for a house that needs considerable renovation and whose owner will only be satisfied if he is a handyman with considerable spare time.
              In real estate, a house in need of significant repairs. A handyman special is usually inexpensive and may be a good deal for buyers who are able to make repairs themselves at a relatively low cost.


Tuesday, 27 August 2013


Today's word: BLIND POOL
Theme for this fortnight: REAL ESTATE

             A limited partnership or stock offering with no stated investment goal for the funds that are raised from investors. In a blind pool, money is raised from investors, usually trading on the name of a particular individual or firm, but few restrictions or safeguards are in place for investor security. May also be called "blank check underwriting" or a "blank check offering".

Monday, 26 August 2013


Theme for this fortnight: REAL ESTATE

           An oversized payment due at the end of a mortgage, commercial loan or other amortized loan. Because the entire loan amount is not amortized over the life of the loan, the remaining balance is due as a final repayment to the lender.
           Balloon payments are often prepackaged into what are called "two-step mortgages." In this type of mortgage, the balloon payment is rolled into a new or continuing amortized mortgage at the prevailing market rates.

Sunday, 25 August 2013

VRITTAM (18 AUG 2013 - 24 AUG 2013)


Click on the picture below to see what is the key to support Indian Rupee

Indian rupee crisis: RBI raises inflation alert

India’s inflation could accelerate in the current fiscal year due to the Indian rupee's sharp depreciation. The Indian rupee touched record low of 65.52/dollar on Thursday and is down 16 per cent so far this year despite efforts by policymakers to prop it up.

The Bharatiya Mahila Bank proposes to complete the first six branches at Mumbai, Delhi, Kolkata, Chennai, Indore and Guwahati by October 15 and take the total to 25 by March 31, 2014.

Sebi widens fraudulent, unfair trade practices list

 Sebi has decided to tighten norms for tackling fraudulent and unfair trade practices so as to hold individuals as well as market entities equally guilty for manipulations by removing a regulatory lacunae.

FIIs withdraw Rs 6,000 cr from debt market in two weeks

Foreign investors have pulled out almost Rs 6,000 crore (USD 962 million) from the Indian debt market in a fortnight amid lack of clarity over tax norms for returns on such investments and weakness in the rupee.

Low growth in India has implications for BRICS: Rob Davies

According to him, the implications are that BRICS nations need to strengthen and consolidate their partnerships so that they can establish a new growth trajectory in all of the countries that will be mutually beneficial.

JP Morgan downgrades Indian shares, upgrades China

J P Morgan has downgraded Indian shares to "neutral" from "overweight", citing strain in balance of payments, while upgrading China shares to "neutral" from "underweight".
The brokerage adds it is late in downgrading India, but if the rupee continues to slide it would continue to underperform.

Rules notified for FDI in multi-brand retail, new sectoral caps and ‘control’

The government notified the decisions approved by the Cabinet earlier this month relating to FDI policy for multi-brand retail, revision of FDI caps and routes across different sectors and definition of ‘control’ for calculating total foreign investment (both direct and indirect) in Indian companies.

Fitch warns of downgrade in India credit ratings if confidence falls further

India and Indonesia could see their credit ratings lowered if their governments fail to halt the current slump in investor confidence towards the countries, Fitch ratings said on Thursday.

Rupee to strengthen to 60-61 by March: Crisil

 The rupee is likely to strengthen to 60-61 level by this fiscal-end on expectations of improvement in the current account deficit (CAD) and higher inflows from overseas investors, according to analysts at Crisil.

RBI buys 78 per cent of Rs. 8000 cr bond buyback target

Early this week, the RBI announced to undertake OMO after the 10-year government bond rose to a five-year high at 9.47 per cent as the rupee breached the 64 mark against the dollar. The step was aimed at managing liquidity conditions to ensure adequate credit flow to the productive sectors of the economy.


Stop food security bill if you want to restore investor confidence

By Arun Shourie, Former disinvestment minister


Let us see what all measures are taken by the government and RBI to curb gold import – one of the major reasons to drive rupee down. Click on picture below for slideshow to begin



Click on the picture below to see


Today's word: SWEAT EQUITY
Theme for this fortnight: REAL ESTATE

Contribution to a project or enterprise in the form of effort and toil. Sweat equity is the ownership interest, or increase in value, that is created as a direct result of hard work by the owner(s). It is the preferred mode of building equity for cash-strapped entrepreneurs in their start-up ventures, since they may be unable to contribute much financial capital to their enterprise. In the context of real estate, sweat equity refers to value-enhancing improvements made by homeowners themselves to their properties. The term is probably derived from the fact that such equity is considered to be generated from the "sweat of one's brow."

Saturday, 24 August 2013


Today's word: AIR RIGHTS
Theme for this fortnight: REAL ESTATE

          The right to use, control or occupy the space above a designated property.  The rights of an owner to construct a building of a certain density beyond that of the existing zoning or that of the existing structure on the site. Air rights can be leased, sold, or donated to another party.

Thursday, 22 August 2013


Theme for this fortnight: REAL ESTATE

A home purchase loan with a higher balance than the free-market value of the home. This situation prevents the homeowner from selling the home unless s/he has cash to pay the loss out of pocket. It also prevents the homeowner from refinancing in most cases. Thus, if the homeowner wants to sell the home because s/he can't afford the mortgage payments anymore, perhaps because of a job loss, the home will fall into foreclosure unless the borrower is able to renegotiate the loan. 

Monday, 19 August 2013


Today's word: ALT-A
Theme for this fortnight: REAL ESTATE

A real estate investing term that refers to someone who spends their time trying to locate properties with substantial investment potential. Usually, the intent is to find properties that are distressed and selling at a discount that can be repaired or remodeled and sold for a sizable profit. Sometimes, however, the term is also used to refer to people who find underpriced properties that would make good income (rental) properties.

Sunday, 18 August 2013


Today's word: ZOMBIE TITLES
Theme for this fortnight: REAL ESTATE

A right to ownership and possession of a home that remains with a person who believes he or she has lost the property as a result of foreclosure. A zombie title is a title to real property that happens when a lender initiates foreclosure proceedings by issuing a notice of foreclosure and then unexpectedly dismisses the foreclosure.
            If the person is unaware of the foreclosure dismissal, he or she will be left holding a zombie title. A lender may decide to dismiss the foreclosure for a variety of reasons, including a surplus of inventory, if the costs associated with a foreclosure cannot justify its costs or if the lender does not want to take possession of the home.


Saturday, 17 August 2013


Today's word: JUNK FEES
Theme for this fortnight: REAL ESTATE

           Nebulous charges assessed at the closing of a mortgage that go to the originator or lender. These fees are hidden in the mortgage documents and are usually assessed as raw dollars rather than "points" or a percentage of the loan. Junk fees may or may not pay for an actual service to the borrower, but they typically are not known to the borrower prior to signing. Some common fees that may be considered junk fees include settlement fees, sign-up fees, underwriting fees, funding fees, translation fees and messenger fees.

Friday, 16 August 2013


Today's word: BIRD DOG
Theme for this fortnight: REAL ESTATE

A real estate investing term that refers to someone who spends their time trying to locate properties with substantial investment potential. Usually, the intent is to find properties that are distressed and selling at a discount that can be repaired or remodeled and sold for a sizable profit. Sometimes, however, the term is also used to refer to people who find underpriced properties that would make good income (rental) properties.
The term itself is a reference to hunting dogs that would point to the location of birds and then retrieve them once the hunter had shot them.

Thursday, 15 August 2013


Today's word: FREEDOM SHARES
Theme for this fortnight: BONDS

Original issue discount bonds issued by the U.S. Treasury from May of 1967 to October of 1970. Freedom shares had a final maturity of 30 years from their issue date and were originally offered in combination with Series E bonds to promote public investment in government bonds.
Also known as "savings notes". All remaining freedom shares reached final maturity in October of 2000. Any shares still outstanding should be cashed in. These notes can be redeemed at any Federal Reserve bank and many other savings institutions as well. 

Tuesday, 13 August 2013


Today's word: JUNIORS
Theme for this fortnight: BONDS

               Juniors are a class of bonds or notes that have a lower priority than other debt claim on the same asset or property. It is a debt that is lower in repayment priority than other debts in the event of the issuer's default. Junior debt is usually an unsecured form of debt, meaning there is no collateral behind the debt.
                In the event that the issuing company goes out of business, the junior debt has a smaller probability of being paid back, either with money or with assets, since all higher-ranking debt will be given priority. Junior debt is also called subordinated debt, due to its position in the debt hierarchy. One common junior debt is the seconds mortgage which ranks behind the first mortgage and has a lesser claim in the event of default.

Sunday, 11 August 2013


Today's word: SENIORS
Theme for this fortnight: BONDS


A debt security, or bond, that takes precedence over other unsecured notes and must be repaid in the event of bankruptcy. Senior notes are relatively secure because of their priority status in the event of liquidation. With this added security comes a reduced interest or coupon rate as compared to junior bonds.
                Borrowed money that a company must repay first if it goes out of business. Companies have a number of options for obtaining financing, including bank loans and the issuance of bonds and stocks. Each type of financing has a different priority level in being repaid if the company decides to liquidate. If the company goes under, the holders of each type of financing have different levels of rights to the company's assets.

VRITTAM (4 AUG 2013 - 10 AUG 2013)



IRDA allows banks to act as insurance brokers

Earlier banks used to act as an agent for the insurance companies, but now The Insurance Regulatory and Development Authority (IRDA) has allowed banks to act as insurance brokers, subject to RBI approval.

National Spot Exchange Ltd investors' loss: Stock brokers, portfolio managers under scanner

National Spot Exchange Ltd (NSEL), some stock brokers and portfolio managers have come under regulatory scanner for inducing HNIs and other investors to trade on spot market commodity exchange with promise of high returns. There is an estimation of Rs 6,000-crore payment crisis.

·         Providing stability to the sinking rupee
·         Give impetus to growth
·         Repair RBI-FinMin ties
·         Call on new banking licences (stress in banking sector)
·         Keep dollars flowing in

New banks licences to take some more time: RBI
The Reserve Bank of India has ruled out the relaxations in norms for grant in new bank license. The banking regulator has started scrutinizing the applications. However the exercise will take some more time.


5 policy missteps that have led India to economic crisis

By : Shankar Acharya, an honorary professor at Icrier and former chief economic adviser to the government of India.

DID YOU KNOW                                               
·         A Private Company can have a maximum of 200 members.
·         All companies must follow a uniform financial year i.e. from April to March.
·         Spend of CSR made compulsory. The new law requires companies to spend at least two per cent of their average profits in the last three years towards Corporate Social Responsibility (CSR) activities. But only companies reporting Rs 5 crore or more profits in the last three years have to make the CSR spend. The Bill allows companies the freedom to choose areas of work for CSR.
·         Individual auditors are to be compulsorily rotated every 5 years and audit firm every 10 years in listed companies.
·         At least one woman director to be appointed.
·         A company cannot make investment through more than 2 layers of investment companies.
·         Prohibits Insider Trading and provides for class action suit, which is key weapon for individual shareholders to take collective action against errant companies.
·         At least one-third of the total number of directors of a listed public company should be independent directors.
·         Existing companies to get a transition period of one year to comply.
·         The Bill also has provisions for re-opening or re-casting of the books of accounts of a company.


Raghuram Rajan to replace Duvvuri Subbarao as the next RBI governor. Click on the slideshow for five must know facts about him.



One Person Company

  • One Person Company is one of the type of Company on the basis of number of members with only one person as its shareholder.
  • The legal and financial liability is limited to the company only and not to the person.
  • OPC shall be treated as a private company with minimum paid-up share capital of one lakh rupees (Rs. 1,00,000/-).
  • Should have minimum one director but the number should not cross 15.
  • The words "One Person Company" should be mentioned in brackets below the name of the One Person Company.
  • In case of the death of member/shareholder or his incapacity to contract, then nominee/other person become the member of the Company.
  • One Person Company need not to hold any AGM (Annual General Meeting) in each year.