Content174

TRAVEL

CAREERS

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FUNDS

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ML FOUNDATION EVENTS

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Tax Refunds

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saving and investing

56 Earning Curve

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consumer interest

48 xxx xx ML FOUNDATION EVENTS

61 Detoxifying Our Body xxx

OPINION

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Air Travel

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CONTENTS

LETTER

ISSUE CONTENTS

1 November 2012

FROM THE

EDITOR

Financial Regulation: Pious Pronouncements; Stock Exchanges: Trading Nirvana?

Deformed Reforms

T

he scandal-tainted Congress-led government has attempted to resurrect its tarnished image by announcing a series of rapid-fire reforms. This got a lot of investors excited, initially. What are the real implications of these reforms? The market has discounted the benefits. Have they discounted what could possibly go wrong? Who wins and who loses?

Jason and I look at these issues from a different perspective. In related pieces, R Balakrishnan argues that the equity market has over-reacted positively while Nupur Bang, who teaches at Indian School of Business (Hyderabad), shares her perspective from the ground, whether FDI in retailing will change the backward linkages between farmers and traders, a key component of the supposed reforms.

While reforms are needed, what about fair deal to consumers and investors by enforcing existing regulations, an important issue in the context of activist Arvind Kejriwal’s exposé of Robert Vadra’s real-estate deals. Sucheta Dalal explains that crony capitalism of this sort thrives in the absence of a regulator or when they are sleeping on their jobs. Consider banks’ exposure in the Deccan Chronicle group or Kingfisher Airlines or the manner in which many violators in stock markets have gone scot-free. This is also why, as she argues in the Crosshairs section, the recommendations of the FSLRC may have no practical value since the regulators are chosen on their ability to curry favours.

The Milkman of India, Dr Verghese Kurien, transformed India from a milk-deficient country to one of the largest producers in the world.

Sucheta has initiated a petition to award the Bharat Ratna to Dr Kurien that he so richly deserves. The petition is on our website—do sign it and spread the word.

We visited God’s Own Country and got a stupendous response! Thank you, people from Kochi! Moneylife Foundation has so far conducted 132 events and has over 13,700 members; it is expanding steadily. Do sign up to become a member if you haven’t yet; look forward to meeting you personally at one of our seminars.

Debashis Basu 

MONEYLIFE | 1 November 2012 | 10

18 Different Strokes

Robert 20 Why Vadras Win If regulatory oversight is lacking in everything from realty to banking, it is preposterous to exhort aam admi to go the courts

26 Cover Story Reforms: Who Wins, Who Loses?

In September, the government announced a flurry of economic reforms to lift the economy from a deep slump and boost the image of a scandal-hit government. What do these reforms really mean? Who wins and who loses? Debashis Basu & Jason Monteiro analyse

13

Your Interest

SC asks Centre not to alter pricing system for essential drugs; Trade alerts through SMS, email; Railways to set up tariff authority; NCDRC asks Mumbai-based developer to refund money with 18% interest

14 Your Money

Fake Currency: Fake Indian Currency Seizures; Reforms: Super Regulator; Buying Financial Products: Online Research Changes the Mind; Mutual Funds: New Equity Fund Draft Filings; Credit Cards: HDFC Bank To Double Cash Payment Fees; SEBI: Now, Savings in Demat Format; Remittances: Remit Money without a Bank Account

16 Current Account Cognitive Science: Boost your Brain Power! Learn languages

17 Loose Change

Moneylife Quiz; Sound Bites: Kiran Bedi, former top cop; Salman Khurshid, Union Law Minister; Rahul Gandhi; Harcharan Bains, advisor to Punjab CM

Disclaimer: Moneylife has a policy of not allowing its editorial staff to buy and sell stocks that are written about in the magazine. All personal transactions in individual stocks are subjected to internal disclosure rules.

MUTUAL FUNDS POINTERS

Quarter 22 Good for Funds

It Be Good for 54 Will Consumers?

Who were the winners and losers of the recently ended quarter?

Wal-mart may fail in India but consumers must get a choice, argues Nupur Pavan Bang

SMART MONEY

32 Value Picks Priced Out

36 Street Beat – Adi Finechem – Tide Water Oil Co STOCK PERFORMANCE: Strong Performers

40 Which Way Will Indian policy-makers meet the same fate as the US Fed’s?

41 Popular Picks

than the 58 More Milkman of India

Invest directly in mutual funds and save about 0.6%-0.7%

The lessons we can learn from this great man are simply invaluable

Jammu & Kashmir Bank shot up 16%, Cera Sanitaryware was up 11%, Ajanta Pharma tanked 8%

45 Long Term City Union Bank shot up 8%, Nestlé India rose 6%, while Wyeth tanked 8%

Earning CURVE

46 Insurance Trends

59 Timeless Advice

– Policy: Insurance and Pension – Health Insurance: United India ‘M-Power’ – Life Insurance: Bajaj Allianz gets you ‘RightInsured’ – Fine Print

Hugh Young’s 10 Golden Rules of Investing

consumer alert

ML FOUNDATION EVENTS

Time 60 First in Kochi

48 Noin 40Change Years Companies continue to ignore consumer feedback

AUTO

50 Modern Transport

Poor Governance

44 Medium Term

Legally Speaking

24 Cheaper Option INSURANCE

STOCKS

FDI in Retail

Moneylife Foundation conducted its flagship “Investor, Empower Yourself” seminar to an overflowing house, for the first time, in Kochi

BEYOND MONEY

A new segment of 7-seaters could change public transport

health

Research 52 Medical for Sale?

The nexus between the medical fraternity and academia is too unholy – Pulse Beat: Medical developments from around the world

Earth Saviour’s 66 The Foundation Driving past the high walls of Vasant Kunj's ‘Green Avenue’ shielding residences of Delhi's super elite, Veeresh Malik discovers a oneman army on a mission to save the destitute

DEPARTMENTS Letters............................. 4 Book Review.....................56 Money Facts.....................63