November 15th, 2016 November 30th, 2016
A FinNiche Initiative
EDITORIAL
- RISHI SAXENA
“A revolution is a struggle to the death between the future and the past�- Fidel Castro As the nation struggles in ATM lines and rupee falling to an all-time low against dollar, a lot has happened from last fortnight. This month saw a mix of anxiety and happiness filling the campus as placement for senior batch started on a high note. The ICICI workshop organized by FinNiche committee witnessed huge participation from first year and was completed successfully. The month also saw some exciting performance in recently concluded marketing world cup which witnessed participation in huge number. This edition of FinXpress promises to provide a great insight into burning issues and their in depth analysis. In national article we bring to you the enigma of twin deficit (economies having Fiscal deficit and current account deficit). In another national article we analyze whether India is prepared for cashless economy. In international article we bring to you analysis into the free trade, Donald Trump and the rise of dollar. This edition of FinXpress promises as always to be a great value addition to our existing knowledge bank. Hoping for your constant support towards FinXpress. Suggestions as to how we can improve FinXpress and criticism are most welcome. Happy reading! Regards, The Editorial team FinNiche @ IMT Ghaziabad Facebook page: https://www.facebook.com/FinNiche/? fref=ts
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CONTENTS Enigma of Twin Deficit: Decoded
2
India prepared to be a cashless economy 4 Rise of Dollar with the election of Donald Trump 7 Free Trade a Miracle That Was 9 Fin-Humour
11
Market
12
Start-up Tracker
14
Fin-App
15
Fin-Word
16
Did you know
18
Fin-Quiz
19
Life @ IMT
21
Sponsors
22
NATIONAL
ENIGMA OF TWIN DEFICIT: DECODED
- SHUBHAM ARORA
Fiscal and Current account deficit—— High fiscal rate leads to bankruptcy of a country —— Trade deficit has an impact on GDP
The problem of Twin Deficits has pestered past Indian governments and was a problem of grave concern for UPA-2 government. Without further ado, I would like to talk about what Twin Deficit really are. The Twin Deficit comprises of Fiscal and current Account deficit. The Fiscal deficit is the total debt generated by the government to finance its expenses, it shows that the government has no option other than borrowings to meet its expenses. PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) are an example of how high Fiscal deficit can lead to bankruptcy of a country. When the Fiscal deficit is high it implies government has to borrow heavily, meaning demand for loans will rise in the market, leading
to higher interest rates and higher cost of borrowings, so private firms stay away from loans and even pull out of existing projects as loans becomes costly. This has an adverse impact on employment and income. This refers to the crowding out in the economy. The FRBM Act (2003) mandate every central government to restrict its Fiscal deficit to 3% of its GDP. On the other hand, current account deficit occurs when the value of imports increase the value of exports.it also includes net income components such as dividend and interest as well as foreign aid. These components are very small part of the deficit when compared to the imports and exports. Hence C.A.D. depends mainly on trade deficit and has a substantial impact on the GDP of the
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NATIONAL
country Y=C+I+G+N Here N=Exports -Imports If N has a negative value, then it can lower the GDP significantly. The linkage between the two deficit is critical. Under a heavy Fiscal deficit, government borrows from the credit market and then from the foreign sources. Due to high demand and opportunity to make profit, institutions from abroad supply
funds. This lead to increase in supply of foreign currency and appreciation of Indian currency. Due to appreciation of Indian currency, exports become expensive and imports become cheaper.as a result people start importing more and imports start exceeding the exports leading to higher trade deficit in the country. Thus, High Fiscal deficit lead to very high trade deficit for a country which in turn can cause current f=deficit to rise abnormally. As both vary linearly, together they are termed as- “TWIN DEFCITS�.
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NATIONAL
Is India prepared to be a Cashless Economy?
- SRIKANT SINGH
Service charge waived on Debit/Credit card txn —— Promotion of E payment —— Plastic money, need of hour —— Financial literacy
There can’t be any better time to discuss the future of India in terms of being an economy which is on the brink of converting from paper money based to the one based on plastic money. Since last year or so, government has been vocal about announcing incentives like cutting down on service charges and other levies on debit/credit card transactions with the recent news about increasing the E-wallet spend limit to 20000. All of that has been done in order to promote e-payments, plastic transactions, cashless payments etc. Before moving further, we need to understand what is a cashless economy. It refers to a system in which flow of cash within the economy is invisible and intangible. The monetary transactions in such kind of economies are facilitated through various electronic mediums such credit & debit cards, e wallets, digital currency and others which in turn helps keep track of all the transactions on a digital platform. Having said that, the bigger question is whether India is ready for such an overhaul of its cash driven economy. So, before delving deeper into the question, let’s first analyze some statistics which will give everyone a glimpse of present
scenario of the cash flow in India compared to that in other countries. For India, as can be seen from the graph, preference for cash is high and persistent. That can be owed to various factors such as easy avoidance of taxes, low access to financial services and flawed digital infrastructure as well as connectivity. The aforementioned factors have put in motion and sustained a vicious circle in which cash has been thriving over the years without any hiccups. Although, most of the transactions are based on cash, it’s still imperative to know what the central bank of India is doing in order to promote cashless transactions: 697.2 mn debit cards and 25.9 million credit cards have been issued by various banks after deducting withdrawn or cancelled cards as per July 2016 report of RBI. Although most of the credit cards are used just to withdraw cash from ATMs. There are atleast 1.45 million PoS terminals installed by various banks across the country assisted by over 2 lakh ATMs. Although the retail location for PoS transactions is nowhere near to over the counter cash
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transaction Mobile wallet has been promoted which has led to an increase from 255 mn users in 2014-15 to 603.98 mn in 2015-16. Despite taking various measures, RBI is wary of the various roadblocks which are very difficult to remove given the current economic and political scenario in India. In its research on merchants, consumers and card issuing banks, RBI has come up with various reasons why plastic money has been failing to make India cashless so far. Apart from the reasons mentioned above, much can be attributed to the socio-economic setting of India where cash is seen as something of biggest help in times of emergency or in small transactions. OPPORTUNITIES AHEAD: The demonetization effect has started create an environment where plastic money is not an option but a need where if one has to acquire the everyday necessities of life, either he has to stand in line for hours or use his cards/digital wallets. The urban individual, however, being financial literate can move to the means where he can pay online but the rural is deprived of those means and is seriously affected by the move. Although this
has been a problem owing to the poor smartphone penetration exacerbated by erratic internet connectivity, the biggest opportunity lies here only once a solution is achieved which take care of the problems one after another. It’s because the biggest challenge to Narendra Modi’s vision of cashless economy is coming from ‘Bharat’ (Rural India) only. According to Praveen Dhabhal, CEO of Payworld, over 93% of people in rural India have not done any digital transactions. So the real potential lies there and Payworld has reached to almost 80000 villages across 23 states making people aware of digital payments. Reiterating the point, Cofounder of Mobikwik, Bipin Preet Singh, said that Bharat is the next big catchment area for mobile wallet players. He referred to the rural India where if even half of the population starts using cashless transactions, it will be a huge leap forward for the economy of India where it can even get rid of huge operating costs (almost 23000 crore rupees) to handle the cash. The biggest impediment is the unknown fear the only solution of which is certain amount of initial handholding as well as educating and spreading awareness and that is being done by banks as well as digital wallet players
Source: RBI concept paper on Card Acceptance Infrastructure, April 2016
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CONCLUSION: Economic costs of a money supply crunch and the problems underlying the usage of plastic money on a larger scale in huge country like India makes it difficult to go cashless. Given the economic reality of India, it’s like telling someone to eat cake if they can’t find any bread but it had to start somewhere and a huge initiative in terms of demonetization has been taken the results of which is still to be analyzed. Over time, via technological innovations assisted by government support, India is gearing up for a digitally enabled
cashless economy and will happen much sooner than is expected but it is equally important to understand that cash won’t be dead in the long run but it may well be cashless that will emerge as the king which is reverberated in the speeches of Mr. Modi who says that although we can’t become cashless at once but we should be promoting the idea of less cash. Certain problems concerning every stakeholder, if taken care of, can start the transformation and the rural Indian will be holding the baton of change.
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INTERNATIONAL
Rise of Dollar with the election of Donald Trump
- ADYA JHA
Surprise rise of dollar —— Trumps poll promises can be one of the factors—— The possible rate cuts by Federal Reserve can be another factor—— Focus on unity in the acceptance speech
Before the results of the U.S elections were declared, many articles had suggested that the dollar could sink if Trump is elected as the President of the United States of America. However, if we look at the recent happenings, it doesn’t seem to be true. After an initial volatility, dollar has risen against most currencies, including the rupee. What can be the possible reasons for it? Well, there are multiple reasons being attributed to the rise of the dollar. Poll promises made by Donald Trump during the Presidential campaign which include tax cuts, infrastructure spending, and deregulation are said to be one of the most important reasons for the rise in dollar. These poll promises, if implemented would benefit everyone. Adding to this there is a Republican majority in both the houses, hence making the process even smoother for Trump. Expectations are that there is going
to be fiscal stimulus in 2017, hence making it bullish for interest rates. This has given better hopes on the implementation to the stakeholders concerned with the economic activities. Moreover, the hopes of the Federal Reserve raising the interest rates have also helped in the appreciation of dollar. One more factor which the analysts are pointing out to be one of the reasons for the rise of dollar is the change in the tone of Donald Trump in his victory acceptance speech, which helped in forming the confidence in dollar. The tone of the acceptance speech was that of a tone of unity, hence helping in creating a hope for the critics of Trump who had been criticizing him to be ’divisive’ in the past. Of course there are a lot of possible negative effects of the election as well, due to which the industry was predicting a sink in the value of the dollar. These include more conservative Page 7
INTERNATIONAL
approach to the economy including tighter H1B visa regulations, etc. which will directly affect the IT companies operating in the country. These IT companies make use of the H1B visa to receive more cost effective labor and hence are able to maximize profit. But due to the possible new immigration policies of Trump, these companies may be hurt a lot. Similarly, some anti-immigrant speeches had also created an atmosphere of negativity in the country which was overall presumed to be not good for the economy of the country. Still it seems that the market seems to believe for now that the positive effects may outweigh the negative effects, which justify the
rise of dollar. It seems that there is definitely a reason to cheer for the investors. But the investors should understand that these market sentiments are too pre-emptive, hence, though there is a no need to worry right now, they need to be definitely cautious about the future situations which may arise in any way. They must understand that this rise is only on the basis of assumptions and the actual sentiment would be known only after Trump starts formulating the policies. For the time being, let’s follow the ‘Wait and Watch’ policy and hope that the reasons to cheer stay in the long run as well.
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INTERNATIONAL
FREE TRADE: A MIRACLE THAT WAS
- UTKARSH SUREKA
Policy of protectionism —— Costs of free trade vastly outweigh benefits—— World poverty and makes goods cheaper—-Welfare of the entire world is the need of the hour
Free trade is a boom to the modern world. True globalization is only achieved when one has access to goods that are manufactured in any part of the world. It boosted production across the world and helped uplifting more than a billion people from poverty. And further lowering of trade barriers will only work for the betterment. By some estimates, it will help in increasing the average income in the poorest parts of the world by almost 100% over the course of fifteen years. Free trade is not without its problems, but these problems are eclipsed by the benefits it brings to people across the world. However, the ‘developed’ countries of the world are slowly turning against free trade. The recent American elections are a standing testament to the displeasure that citizens of developed economies of the world have towards free trade. Donald Trump’s election campaign was built around one very important agenda. Bringing jobs back to America. Americans have a huge percentage of their manufacturing jobs to China, which has become the manufacturing hub of the world. Trump’s claims of bringing these jobs back to the USA has been one of the biggest contributors to his victory. Even if Hillary Clinton had come to power, things wouldn’t have looked much better. Both Presidential aspirants were against the pro trade legislations that the Obama administration worked so hard to implement. Trump is staunchly against the Trans -Pacific Partnership (TPP) which is a treaty that
promotes trade between the US and 11 other Pacific Rim countries. The North American Free Trade Agreement (NAFTA), which has been effect since 1994, will also be revisited. Agreements like the Trans-Atlantic Trade and Investment Partnership(TTIP) is also as good as dead due to opposition from both sides of the Atlantic, the disarray that the EU is in and the Brexit. Several other developed economies such as Germany, Canada, Sweden and Australia are opposing free trade. This behavior by the adopted by the developed nations is being termed ‘Voting for Protectionism’. Studies show that these protectionist policies outnumber trade liberalization policies almost three to one. 81% of suck policies are being adopted in the G20 nations, which are some of the most advanced nations in the world. The popularity of these policies is understandable. People from such developed nations are fast losing their jobs to the developing nations of the world. Countries like India and China have a vast supply of both skilled and unskilled labor. Such labor is willing to work at much lower wages and produce at par if not better output. Thus, it makes a lot more sense for companies to outsource not only manufacturing, but also services to these nations. Free trade is what is giving developed nations access to the technology that they need to compete with the western world. And the goods that they produce are imported into the Page 9
INTERNATIONAL
west because of free trade. A curb on free trade should, theoretically bring jobs back. However, this is utopian. Because of free trade that the average American is able to purchase 29% more for his dollar than he ordinarily would have been able to. Politicians in such economies are taking instilling and then exploiting this mind set in people for their own benefits. They are able to make promises of bringing jobs back from overseas which is highly unlikely. What people are unable to understand is how dependent our welfare is on free trade. The availability of goods, especially at the prices that we get them at, is completely dependent on trade. If manufacturing costs weren’t as low in emerging economies as they are, it would be a lot more expensive for consumers to purchase these goods due to the high cost of manufacturing. Free trade also greatly increases the efficiency of the manufacturing industry all over the world. If free trade were not in play, the competitive advantage that countries are able to experience would not be taken advantage of. This would lead to poor utilization of resources world over. Besides all these factors, one of the biggest pros of free trade is the cost benefit analysis. This is most beneficial to the poorest citizens of the world as it provides them with goods at a cheaper rate and also gives them jobs for sustenance.
All of these factors build a strong case for free trade. According to research commissioned by the Copenhagen Consensus Center, if free trade is implemented globally, it would make the world collectively richer by $11 trillion with $7 trillion going to the poor countries of the world. Thus, we can see the benefits of free trade are many. Free trade is not without its vices though. Free trade is known to increase inequality. This is because most of the companies that manufacture their products in developed economies are still based in the developed world. The profits that they earn from the sale of their goods is seldom reinvested in the countries in which the gods are manufactured. They simply cut costs to the minimum level possible so as to extract the greatest profit as possible. Thus, we can see that Protectionism is not the way to go. A curb on free trade will only harm the world in the long run. Inequality and the divide between the rich and the poor has to go. Sustainable development the world over is the need of the hour. No one can be left behind. This will only be detrimental to the human race. And free trade is one of the biggest elements that has helped in global development. Selfish motives will only get us a certain distance. It is only when we consider the welfare of the entire race rather than the welfare of a state or a country will we reach our true potential.
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FINHUMOUR - PRANAV GOYAL
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MARKET BSE Sensex - Top GAINERS - AFROZ HUSSAIN
Tech Mahindra TCS Infosys Sun Pharma HCL Tech
BSE Sensex - Top LOSERS Bharti Infratel ACC Bajaj Auto Eicher Motors Bharti Airtel
Market Indian National Rupee hit all time low record of 68.862 against the US dollar on 24th Nov 2016 but it has been recovering from it ever since. The reasons for such fall are i. Between 24 October and 23 November, FIIs have pulled out Rs 17,172 crore from the Indian market, against an inflow of Rs 4,414 crore a month before that. And when FIIs pour in funds, the currency strengthens ii. The victory of Donald Trump in the US Presidential election has also triggered a possibility of hike in US Fed rates by year-end which have made foreign investors to take their money back to their country iii. The demonetization of high denomination currency notes in India which resulted in the decline of physical currency liquidity with citizens. The rupee is expected to recover once liquidity in the system normalizes RBI is expected to bring some major changes in monetary policies (possibly change in CRR) after the demonetization effect wears off
A quick glance of the market on 25th of November’16 Market
Opening
Closing
High
Low
NSE
8,007.95
7,965.50
8,122.25
7,976.75
BSE
25,953.24
25,860.17
26,343.95
25,874.45
Graph1: NSE Nifty from Nov 14 to Nov 25, 2016 Page 12
MARKET
Graph2: BSE Sensex from Nov 14 to Nov 25, 2016
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STARTUP TRACKER
PayTm
- AMAN ANAND
Oh what a week it has been. With the demonetization shaking the very foundation of financial institutions in India some may look at it as the crisis state of India’s financial institutions while some may see this as an opportunity for new players to establish themselves.
can issue services like ATM cards, debit cards online banking and mobile banking.
So will this foray be successful? With the interest rates expected to plunge, such banking corporations that offer a fixed rate of return will gain prominence and PayTm here will have to On this edition of startup tracker, we track one of compete with Airtel, the first player in the market India’s most popular and most promising startup- which is currently offering a return of 7.25%. PayTm. With the government taking steps to promote a cashless India, startups have seen a Finally lets talk about the criticism that PayTm is tremendous growth over the past two years with facing on some fronts. This is because Alibaba about $ 1.2 Billion invested into financial startups corporation holds a 40% stake in the company and in the last 2 years alone. With the POS service this has caused some people to question PayTm’s launched last week, PayTm aims to service credit Indian-ness. In the last year the group and its card and debit card users using the app thereby affiliate Ant Financial pumped $700 million into increasing the existing base of 16 crore users in PayTm’s holding company One97 comparison to 55 crore card users across India. Communications. To these allegations, Patm’s CEO and founder Vijay Shekhar Sharma replies Apart from POS services, PayTm plans to launch that “PayTm is as Indian as Maruti is”. He is a Payments Bank soon. Now what that might be referring to the fact that Japan’s Suzuki holds a you may ask. Payment Banks are soon to be controlling interest in Maruti. He believes that inducted as a NBFC (Non-Banking Financial PayTm should be looked on as an Indian company Corporation) under the newly amended law. These that is of “pride” to Indians. banks can accept a restricted deposit which is currently limited to Rs. 1 lakh per customer Finally, with PayTm ticking all the boxes, it’s wait account. These banks cannot issue loans and credit and watch to see where this startup goes next. cards. Both current account and savings accounts can be operated by such banks. Payments banks
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FINAPP
ChartIQ Practice Trading Simulator
- HRISHIKESH GULKOTWAR
Available on Itunes for Free Seller: ChartIQ LLC Rating: 4+ ChartIQ Practice Trading Simulator lets you hone your trading skills by analysing and trading against real historical markets. This app helps you build up your investing skills without the financial risk. It consists of a full set of professional-grade technical analysis tools and the ability to move through time at your own pace - entering and exiting positions whenever you want using market, limit, stop or bracket orders. You can refer to your previous trades in the trade sheet to see each trade you’ve executed with totals. A full set of historical S&P 500 securities with randomly selected entry points is included with ChartIQ Practice Trading, as well as major market indexes with pre-selected entry points for trading against various market conditions such as crashes, sideways markets, bear markets and bull trends. Additional features included in the app1 Projection Tool- Curious to know what the future holds? Use the Projection Tool with your own set of trusted indicators to predict future price scenarios. 2 Anticipate Buy/Sell Indicators- ChartIQ PTS includes automatic IQReversal and IQExhaust Buy/Sell indicators. 3 Bell Curve- Automatically create a price action bell curves for any time period or periodicity. 4 Composite RSI- Automatically plot Composite RSI. Composite RSI is weighted towards recent momentum activity and yields trading signals based on divergence with RSI, "w/m" patterns and support or resistance levels. 5 Divergence Plot- Automatically calculate and plot price targets based on bearish/bullish divergence and Momentum Discrepancy Reversal Points (aka positive and negative reversals). 6 Automatic Gap Detection- Automatically detect and plot opening and closing gaps directly on price charts. 7 Chart Flip- Gain a fresh perspective on your analysis - and remove any predispositions - by flipping the stock chart and all of your indicators upside down. 8 Moving Average on Indicators- ChartIQ PTS gives you the ability to calculate and plot moving averages against indicators such as RSI and volume.
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FINWORD
Trumpflation
- KRISHANT KAUL
Trumpflation is the speculative inflation that might occur during Donald J. Trump's U.S. presidential administration and has already been signaled by the markets that have already shown signs of a spur in the inflation of the U.S. dollar. Major reasons for such a shift in the stance are due to the following: a) While trump has promised to reduce the nation's debt of $19.8 trillion, he has also committed to spend$1 trillion on infrastructure projects. b) Another reason identified is that Trump will boost deficit spending. c) Tax cuts will also boost after-tax incomes d) Curbs on immigration will likely push wages up. e) e) Protectionist policies will likely raise import prices.
ABX index It is a financial benchmark that measures the overall value of mortgages made to borrowers with subprime/ weak credit. The ABX index, also called the Asset-Backed Securities Index, is made up of 20 bonds that comprise a group of subprime mortgages. It uses credit default swap contracts to come up with an overall value. Using this index, financial institutions are able to determine if the market for these securities is improving or degrading.
Panel Bank It is the name given to the group of banks contributing to the Euro Interbank Offer Rate (EURIBOR). This group is made up of the largest participants within the Euro money market. The panel bank complies daily quotes on the interest rates that banks offer one another for overnight loans. The resulting figure, the EURIBOR, is similar to London Interbank Offered Rate (LIBOR). The EURIBOR is used as a reference rate for bonds, swaps, loans and other instruments.
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FINWORD
Harry Potter Stock Index It, created by StockPickr, is a collection of stocks from companies related to the "Harry Potter" series franchise. This index seeks to capture some of Harry Potter's success by investing in selected movie producers, merchandisers and advertisers currently associated with the franchise. The Harry Potter Stock Index includes firms such as Scholastic (Nasdaq:SCHL), who publishes the Harry Potter books Time Warner (NYSE:TWX), the series movie producer Amazon (Nasdaq:AMZN) is included, where Potter books are best sellers Hasbro (NYSE:HAS), Motorola (NYSE:MOT), Electronic Arts (Nasdaq:ERTS) and Coca Cola (NYSE:KO) are a few other related companies included in the index.
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DID YOU KNOW
- NIDHI KUMAR
1. This one seems like an Internet myth but it’s true: There is more “Monopoly” money than real money printed in the U.S. every year. 2. Apple’s cash and investments are now equal to the GDP of Hungary and more than that of Iraq and Vietnam 3. The World’s first bank was Monte Dei Paschi di Siena, founded in 1472 and headquartered in Tuscany, Italy. It still operates today. 4. Zimbabwe has experienced the worst inflation in the world – (2008 Mid-Nov.79,600,000,000%) 5. On average, the life span of an American dollar bill is eighteen months. 6. After Independence, Pakistan used Indian Rupee notes stamped with 'Pakistan' until it could print enough. 7. At one time, 5 rupee coins were smuggled to Bangladesh for making razors. 8. 5,000 and 10,000 rupees notes were in circulation between 1954 and 1978. 9. There is an identification mark (different geometrical shapes) on the left hand side of each note in the form of raised print (intaglio) - a diamond for Rs 1000, circle for Rs 500, triangle for Rs 100, square for Rs 50, rectangle for Rs 20 and none for Rs 10 - to help the visually impaired identify the denomination.
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FINQUIZ
Q1. Which of the following is not a function of the RBI? (a) Maintaining Forex (b) Deciding Bank Rate, CRR and SLR from time to time (c) Opening Savings Accounts for general public (d) Prescribing the Capital Adequacy Ratio (e) Currency Management
- ANSHUMAN NANDWANA
Q2. Which of the following in NOT a type of cheque issued by an individual? (a) Bearer cheque (b) Order cheque (c) Crossed cheque (d) Savings cheque (e) None of the above Q3. Interest on the savings bank accounts is compounded ____? (a) Daily (b) Yearly (c) Quarterly (d) Half-yearly (e) All of the above Q4. One of the major challenges faced by the Banking Industry is Money Laundering. Name the Act/ Norms launched by the banks to curb Money Laundering, in general? (a) Know your customer norms (b) Banking Regulation Act (c) Negotiable Instrument Act (d) Narcotics and Psychotropic Act (e) None of the Above
Q5. A charge where there is neither the transfer of ownership nor the possession is called ______? (a) Hypothecation (b) Lien (c) Pledge (d) Mortgage (e) None of the above
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FINQUIZ
Q6. “Currency Swap” is an instrument to manage ____? (a) Currency Risk (b) Interest Rate Risk (c) Currency and Interest Rate Risk (d) Cash Flows in different currencies (e) All of the above Q7. RBI has recently introduced Cheque Truncation System, which means that ______? (a) Physical movement of a cheque is stopped between banks and instead an electronic image be exchanged for clearance of funds (b) The physical movement of a cheque for clearance of funds be made more secure (c) Issue of cheques to customers be made more secure by introducing more enhanced security features (d) A new technology to process payments between Banks exclusively (e) None of the Above Q8. What is an Indian Depository Receipt (IDR)? (a) A deposit account with a Public Sector Bank (b) A deposit account with any of the Depositories in India (c) An instrument in the form of Depository Receipt created by an Indian Depository against underlying equity shares of the issuing company (d) An instrument in the form of deposit receipt issued by an Indian Depository (e) None of the Above Q9. FCNR accounts can be opened and maintained as _____? (a) Current Accounts (b) Saving Banks Accounts (c) Term Deposit Accounts (d) Recurring Deposits (e) None of the above Q10. In the case of FCNR accounts the payment of interest is effected in ______? (a) Indian Rupee (b) Only in Pound (£) (c) Same currency in which deposit stands (d) Yen (e) None of the above
Answers: 1. C 6. D
2. D 7. A
3. A 8. C Page 20
4. A 9. C
5. A 10. C
LIFE @ IMT
The month of November has always been crucial in the life of IMTians. It gives an answer to one of the most important questions faced by a B-schooler i.e., Why MBA? Yes, you - SAMARTH AGARWAL guessed it right, the answer is “Placements”. So, this month witnesses the placement season where the biggest battles of a B-school are fought inside the Group discussion room and mind boggling questions are hurled in the Interview room. Like previous years, this year also saw raining opportunities for the senior batch. All the major companies from Marketing, Finance and IT domains recruited the students in good number. While the placecomers were busy in conducting placement process, other students also offered a helping hand to them by becoming process-handlers and helped them in facilitating the placement process. After completing the handler’s job, many of us found time to visit hill stations of North like Mcleodganj, Manali and others. Others who could not make it to the trips went home to spend quality time with their families. Talking about events, competitions and workshops, IMT was abuzz with Marketing World Cup which is a flagship event of Club MarkUp. In this competition, we got a chance to solve business cases on Telecom, Wine and Digital wallet industry. We saw participation from IIMs, MDI, IITs, SPJAIN, NITIE and many more. Finnacle club of IMT organized its flagship event called New Fund Offer where they collected funds from students to invest in equity market. They have a track record of giving ROI of more than 20% every year which students find quite lucrative. We at FinNiche club, successfully organized a workshop on “Pillars of equity markets” where we learned about fundaments of investments and technical analysis as a part of stock trading. The coming week will be in tune with IMT’s buzz phrase “IMT never sleeps” as we will be busy preparing for WAC presentations, attending BINE workshops and working on SSR draft implementation plan. Last but not the least, CFA level 1 exam is around. We wish Best of Luck to all those students who are appearing for the exam.
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