Category: Stock Investing

One Up In Wall Street- Preparing to Invest(Ch-1 to Ch-5)

The Major Points Peter Highlighted in first 5 Chapters where he is trying to create an investment mindset for new investors .

The points are as below:

1.    
Do not overestimate the skill and wisdom of
professionals like fund managers or high rated stock investors .At times they also do wrong.

2.    
Take leverage from what your know

3.    
Look for Value investing .Means Off the Rader stocks if
you have good skill in picking companies when they are young.

4.    
Please have a house before investing in stocks directly.
Sometimes people in overconfidence invest all of their hard earned money in stocks and are ruined.

5.    
Invest in companies that are not in stock market. This
might be very risky but highly rewarded if you are smart and highly skilled to analyze.

6.    
Ignore short-term noise from social media and TV channels .Just stay the course once you have done your homework proper.

7.    
Large Profits can be made from common stocks. In Indian
market sticks like HDFC bank, Asian paints etc have given 4x-5x return in 10 years horizon

8.    
Large Loss also can be made in well-known stocks .Ex:
Kingfisher, Satyam Computer and Yes Bank

9.    
Nobody can predict economy and stock market correctly
either in short term or in long-term .So please do not try to time the market .That is foolishness.

10.  Historically Long term returned from stocks are greater than FD and bonds. So First plan and invest your money.

11.  Once you buy stock need to analyze in regular interval. You need to have high risk profile .The stock price can fall 50% and later rise 4 times as well .At the same time it may fall and stay there for decades.

12.  Direct Stock buying is not everybody’s cup of tea .So stay away if you relying on speculation rather than own idea and analysis.

13.  Always look for common stocks and don’t run behind some fancy stories to pick stocks.

14.  Buy only those numbers of stocks, which you can analyze. Do not over crowd your stock portfolio. Remember the number of stocks from different companies are like your babies. Please keep those numbers of stocks that you can manage peacefully and not in chaos.

My sincere advice to readers are if you don’t have time and have a day job better hire an advisor or Invest through MFD in well diversified Mutual Funds or BONDS after calculating your Risk profile and closing your Goals. Remember Good Return is not Goal.

Please subscribe my twitter and telegram channel if love my knowledge sharing writeups .Stocks discussed are here for educational purpose and not buying ideas.

That’s all from me , Yours Abinash 🙂

One Up in Wall street – The Making of a Stock Picker-2

In this chapter Peter Lynch tell us

  1. There is no such thing hereditary knack of stock picking . You have to make your own path.
  2. History and Philosophy is more important in stock picking than statistics and mathematics.
  3. You don’t need to be a CA or economist to become a stock picker . You can be a fourth grade and still be a stock picker.
  4. To understand stock investing you must start with investment rather than discussing with others .You will get firsthand knowledge by doing your own.
  5. Never buy a stock just because everybody is buying , better read understand and analyze and then take wise decision 
  6. If you are buying a stock better analyze on regular interval and check the health of the stock with respect to its fundamentals .After that take buy/sell decesion .

One Up In Wall Street – Millennial edition starts -1

One Up In Wall Street is a investment book written by Peter Lynch . As I read and learn , so I write here in regular interval for this book .Peter Lynch tell us how we can invest in stocks with our knowledge .

  • If you don’t understand a business better to stay away if at all later you regret for missing the opportunity. Ex: Cisco in 480 fold stock that Peter Lynch missed while analyzing.
  • An amateur investor can pick stocks by looking at the development in his surrounding office , market place etc.Don’t buy a stock just because you are using its product .Ex: People bought YES bank just because they have salary account with yes bank.Please give some effort in learning business.
  • If you do all your homework right also still there is no guarantee that you will make money from all your investments .Its just to reduce probability of mistakes in the long journey.Ex- If you bought 10 stocks , 5 may fail miserably , 3 may give you moderate bank interest rate return and 2 may give you multi fold return in long run.
  • Something will rise one day – This type of mindset is not investing rather its gambling . If you can not do hard work better stay away from stocks and buy mutual fun as per your taste.
  • Now a days due to news overhead stock prices fluctuate more than 1% on daily basis . So its normal in short run, Don’t panic if you have done your home work while selecting business .If you sell in panic and later sock started moving upward then you may miss total investment journey if you sum-up all above points . In short you will reach at the same place after many years of investing also and get frustrated .

Please keep in mind 3 points

  1. Never allow noise and nuisance to to ruin your good portfolio
  2. Your portfolio also should not ruin your leisure and vacation , hence always stick to good fundamental stocks.
  3. Always have sufficient cash with you (May be 15 months emergency funds which will give peace of mind in case market fall either in buying more or mainlining your lifestyle for sometime if you loose job and market fall at same time )

What is RBI Monetary Policy and How does this impact individual Stock Price and Personal Expense :)

Monetary Policy is generally declared by RBI and related to interest rate … I hope you all have heard this quite a often in news channels and from the speech of Rajan …. By the way what is this ? CPI,CRR,Repo,Rate cut …. OMG!!!! These are not easy and hence market is not my cup of tea J

But in fact these are very simple at least common man understanding point of view … At least we can get an idea how this will impact our monthly family budget and stock market …..
So without wasting time let me start one by one……




Repo Rate:
When banks want to borrow money from RBI , the rate at which RBI lends money to banks is called Repo Rate.
Ex: If Repo rate is high then the then cost of borrowing is high .Then what will happen? Banks will lend money to us in a higher interest rate .Hence house loan , educational loan and other loans will be costlier for us .. Isn’t it !If banks will get loan from RBi at 8% interest rate , then they will give us loan more than that rate , it may be 9,10,11 or 12 though there are some rules but definitely not below 8%.
That’s why Bankers, Market do not want RBI to increase repo rate … Got it J


Reverse Repo Rate :
It is just opposite of repo rate. In this case banks lend money to RBI .In this case banks are happy to give loan to RBI instead of big corporate because the chance of getting default is NIL J
But here also there is a twist. Suppose if Reverse Repo rate is high and banks lend money to RBI heavily , and they don’t lend to corporate and hence liquidity in the system tightens .Consumption dampens if it continue for a long time .Hence high Revese Repo rate is also not good for economy isn’t it !


CRR (Cash Reserve Ratio):
Every bank is mandatorily required to maintain funds with RBI. The amount that they maintain is dependent on the CRR. If CRR increases then more money is removed from the system, which is again not good for the economy.
The RBI meets every quarter to review the rates. This is a key event that the market watches out for. The first to react to rate decisions would be interest rate sensitive stocks across various sectors such as – banks, automobile, housing finance, real estate, metals etc.

Statutory Liquidity Ratio (SLR):
Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).  RBI is empowered to increase this ratio up to 40%.  An increase in SLR also restricts the bank’s leverage position to pump more money into the economy.
Now the Big Monster is Inflation .What is inflation?
All things being equal, if the cost of 1 KG of onion has increased from Rs.15 to Rs.20 then this price increase is attributed to inflation. Got it !
Inflation is inevitable but a high inflation is not desirable and creates uneasiness for economy because consumption dampens and saving reduces and hence domestic investment from retail people too . Nobody will tell you domestic retail part but I will as I know the power of common Indian.
There are 2 types of inflation
  1. WPI (Wholesale Price Index)
  2. CPI (Consumer Price Index )

WPI
CPI
The WPI indicates the movement in prices at the wholesale level. It captures the price increase or decrease when they are sold between organizations as opposed to actual consumers.
The CPI on the other hand captures the effect of the change in prices at a retail level. As a consumer, CPI inflation is what really matters. The calculation of CPI is quite detailed as it involves classifying consumption into various categories and sub categories across urban and rural regions. Each of these categories is made into an index. This means the final CPI index is a composition of several internal indices.
WPI is an easy and convenient method to calculate inflation. However the inflation measured here is at an institutional level and does not necessarily capture the inflation experienced by the consumer.
The computation of CPI is quite rigorous and detailed. It is one of the most critical metrics for studying the economy.  A national statistical agency called the Ministry of Statistics and Programme implementation (MOSPI) publishes the CPI numbers around the 2nd week of every month.
The RBI’s challenge is to strike a balance between inflation and interest rates. Usually a low interest rate tends to increase the inflation and a high interest rate tends to arrest the inflation.

Index of Industrial Production (IIP):
The Index of Industrial Production (IIP)  is a short term indicator of how the industrial sector in the country is progressing. The data is released every month (along with inflation data) by Ministry of Statistics and Programme implementation (MOSPI). As the name suggests, the IIP measures the production in the Indian industrial sectors keeping a fixed reference point. As of today, India uses the reference point of 2004-05. The reference point is also called the base year.
Roughly about 15 different industries submit their production data to the ministry, which collates the data and releases it as an index number. If the IIP is increasing it indicates a vibrant industrial environment (as the production is going up) and hence a positive sign for the economy and markets. A decreasing IIP indicates a sluggish production environment, hence a negative sign for the economy and markets.
To sum up, an upswing in the industrial production is good for the economy and a downswing rings an alarm. As India is getting more industrialized, the relative importance of the Index of Industrial Production is increasing.
A lower IIP number puts pressure on the RBI to lower the interest rates.
Purchasing Manager Index (PMI):
The Purchasing managers index (PMI) is an economic indicator which tries to capture the business activity across the manufacturing and service sectors in the country. This is a survey based indicator where the respondents – usually the purchasing managers indicate their change in business perception with respect to the previous month. A separate survey is conducted for the service and the manufacturing sectors. The data from the survey is consolidated on to a single index. Typical areas covered in the survey include factors such as new orders, output, business expectations and employment amongst others.
The PMI number usually oscillates around 50. A reading above 50 indicates expansion and below 50 indicates a contraction in the economy. And a reading at 50 indicates no change in the economy.
Apart from this Budget and Corporate earnings are 2 different factors influencing country’s economy.

So are you ready for next monetary policy to hear from RBI Governor and make your own predictions J ……..

What is RBI Monetary Policy and How does this impact individual Stock Price and Personal Expense :)

Monetary Policy is generally declared by RBI and related to interest rate … I hope you all have heard this quite a often in news channels and from the speech of Rajan …. By the way what is this ? CPI,CRR,Repo,Rate cut …. OMG!!!! These are not easy and hence market is not my cup of tea J

But in fact these are very simple at least common man understanding point of view … At least we can get an idea how this will impact our monthly family budget and stock market …..
So without wasting time let me start one by one……




Repo Rate:
When banks want to borrow money from RBI , the rate at which RBI lends money to banks is called Repo Rate.
Ex: If Repo rate is high then the then cost of borrowing is high .Then what will happen? Banks will lend money to us in a higher interest rate .Hence house loan , educational loan and other loans will be costlier for us .. Isn’t it !If banks will get loan from RBi at 8% interest rate , then they will give us loan more than that rate , it may be 9,10,11 or 12 though there are some rules but definitely not below 8%.
That’s why Bankers, Market do not want RBI to increase repo rate … Got it J


Reverse Repo Rate :
It is just opposite of repo rate. In this case banks lend money to RBI .In this case banks are happy to give loan to RBI instead of big corporate because the chance of getting default is NIL J
But here also there is a twist. Suppose if Reverse Repo rate is high and banks lend money to RBI heavily , and they don’t lend to corporate and hence liquidity in the system tightens .Consumption dampens if it continue for a long time .Hence high Revese Repo rate is also not good for economy isn’t it !


CRR (Cash Reserve Ratio):
Every bank is mandatorily required to maintain funds with RBI. The amount that they maintain is dependent on the CRR. If CRR increases then more money is removed from the system, which is again not good for the economy.
The RBI meets every quarter to review the rates. This is a key event that the market watches out for. The first to react to rate decisions would be interest rate sensitive stocks across various sectors such as – banks, automobile, housing finance, real estate, metals etc.

Statutory Liquidity Ratio (SLR):
Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).  RBI is empowered to increase this ratio up to 40%.  An increase in SLR also restricts the bank’s leverage position to pump more money into the economy.
Now the Big Monster is Inflation .What is inflation?
All things being equal, if the cost of 1 KG of onion has increased from Rs.15 to Rs.20 then this price increase is attributed to inflation. Got it !
Inflation is inevitable but a high inflation is not desirable and creates uneasiness for economy because consumption dampens and saving reduces and hence domestic investment from retail people too . Nobody will tell you domestic retail part but I will as I know the power of common Indian.
There are 2 types of inflation
  1. WPI (Wholesale Price Index)
  2. CPI (Consumer Price Index )

WPI
CPI
The WPI indicates the movement in prices at the wholesale level. It captures the price increase or decrease when they are sold between organizations as opposed to actual consumers.
The CPI on the other hand captures the effect of the change in prices at a retail level. As a consumer, CPI inflation is what really matters. The calculation of CPI is quite detailed as it involves classifying consumption into various categories and sub categories across urban and rural regions. Each of these categories is made into an index. This means the final CPI index is a composition of several internal indices.
WPI is an easy and convenient method to calculate inflation. However the inflation measured here is at an institutional level and does not necessarily capture the inflation experienced by the consumer.
The computation of CPI is quite rigorous and detailed. It is one of the most critical metrics for studying the economy.  A national statistical agency called the Ministry of Statistics and Programme implementation (MOSPI) publishes the CPI numbers around the 2nd week of every month.
The RBI’s challenge is to strike a balance between inflation and interest rates. Usually a low interest rate tends to increase the inflation and a high interest rate tends to arrest the inflation.

Index of Industrial Production (IIP):
The Index of Industrial Production (IIP)  is a short term indicator of how the industrial sector in the country is progressing. The data is released every month (along with inflation data) by Ministry of Statistics and Programme implementation (MOSPI). As the name suggests, the IIP measures the production in the Indian industrial sectors keeping a fixed reference point. As of today, India uses the reference point of 2004-05. The reference point is also called the base year.
Roughly about 15 different industries submit their production data to the ministry, which collates the data and releases it as an index number. If the IIP is increasing it indicates a vibrant industrial environment (as the production is going up) and hence a positive sign for the economy and markets. A decreasing IIP indicates a sluggish production environment, hence a negative sign for the economy and markets.
To sum up, an upswing in the industrial production is good for the economy and a downswing rings an alarm. As India is getting more industrialized, the relative importance of the Index of Industrial Production is increasing.
A lower IIP number puts pressure on the RBI to lower the interest rates.
Purchasing Manager Index (PMI):
The Purchasing managers index (PMI) is an economic indicator which tries to capture the business activity across the manufacturing and service sectors in the country. This is a survey based indicator where the respondents – usually the purchasing managers indicate their change in business perception with respect to the previous month. A separate survey is conducted for the service and the manufacturing sectors. The data from the survey is consolidated on to a single index. Typical areas covered in the survey include factors such as new orders, output, business expectations and employment amongst others.
The PMI number usually oscillates around 50. A reading above 50 indicates expansion and below 50 indicates a contraction in the economy. And a reading at 50 indicates no change in the economy.
Apart from this Budget and Corporate earnings are 2 different factors influencing country’s economy.

So are you ready for next monetary policy to hear from RBI Governor and make your own predictions J ……..

Why Tata Metaliks moved from Rs 78 to Rs 409 in just 3 months !!!!!!

  1. It is filing for a fresh scheme of amalgamation of Tata Metaliks Ductile Iron (DI) Pipes (TMDIPL), its wholly-owned subsidiary with it.
  2. Tata Metaliks is one of the largest manufacturers of foundry-grade pig iron in the world. 
  3. Though its consolidated revenues for the March quarter declined by 7%, its profits rose by 71%, to Rs48.62 crore from Rs28.43 crore.
  4. It had a return on capital employed (RoCE) of 37%. 
  5. Tata Steel calls off Tata Metaliks merger – (Tata Steel non merger is a major relief for Tata Mettaliks.Tata Steel is a value destroyer for minority stock holder for more than a decade now)

        However, it is concentrating on high-value ductile iron pipes which are mostly used for water transmission. Some analysts expect that the DI pipes segment will benefit from government thrust on irrigation and healthy water access. 

Disclaimer :
I am holding this stock in my portfolio . Hence i may be biased and i may be wrong like many times before .It is not a investment advice and for educational purpose . 

Why Tata Metaliks moved from Rs 78 to Rs 409 in just 3 months !!!!!!

  1. It is filing for a fresh scheme of amalgamation of Tata Metaliks Ductile Iron (DI) Pipes (TMDIPL), its wholly-owned subsidiary with it.
  2. Tata Metaliks is one of the largest manufacturers of foundry-grade pig iron in the world. 
  3. Though its consolidated revenues for the March quarter declined by 7%, its profits rose by 71%, to Rs48.62 crore from Rs28.43 crore.
  4. It had a return on capital employed (RoCE) of 37%. 
  5. Tata Steel calls off Tata Metaliks merger – (Tata Steel non merger is a major relief for Tata Mettaliks.Tata Steel is a value destroyer for minority stock holder for more than a decade now)

        However, it is concentrating on high-value ductile iron pipes which are mostly used for water transmission. Some analysts expect that the DI pipes segment will benefit from government thrust on irrigation and healthy water access. 

Disclaimer :
I am holding this stock in my portfolio . Hence i may be biased and i may be wrong like many times before .It is not a investment advice and for educational purpose . 

Are Indian Banks Bankrupt????


I read this article 3 months back in money life in a lighter note and thought the situation might not be so bad. After seeing the current quarter results of banks, now I think I must have written this blog long back. If few investor read this blog 3-4 months back , they would not have lost their hard earned money by investing in banks at peak!!! 

It really happened to each and every bank is now and they are giving true picture of NPA after RBI come with a stick.

The banking sector growth (PAT) had been declined by 14.1% as per RBI Financial Stability Report (Issue No 11, June 2015)

Extracted From PWC Banking Analysis.

CDR is there for 15 years and it has been provided for banks to distress their loan account taking into account genuine cases. Suppose I took loan 10 crore from bank and now I don’t have money then bank may give 15 years to repay. What will happen if I will not have a genuine will to repay after agreeing with bank and suppose my income will vanish and I will go bankrupt …… L

The same situation has been  happening to the banks one after another … Now the situation is so worse for some banks gross NPA = Bank’s Total Market Cap !!!!!
RBI tries to make Banks more powerful to make CAP (Corrective Action Plan) to recover well before account would become NPA in last January 2014 … but it seems bank failed in accessing those NPA candidates.

To help bank’s further RBI permits rescheduling of the debt without considering it as restructuring. Actually it was helping banks to show less NPA on balance sheet and refinancing stalled infra and other projects.


How Banks invited more problems?

The CDR (corporate debt restructuring),JLF(Joint Lenders Forum) and 25%/50% mechanism introduced to help banks to mitigate the initial provisioning pressure. Still SBI introduced more flexibility by its 5-25 structure.

According to Nayak committee report published in May 2014 the financial position of PSBs are very fragile. It is due to regulatory delay and weak board governance of PSBs.

Apart from that you might have heard S k Jain episode of syndicate bank. Was this an isolate case?If the owner who supposed to be the watchdogs for effective management, become nibblers, Can employee be far behind??

Note: It was just an analysis why PSB and other banks are in severe pain now. I may be wrong, Facts and content I have taken from Money life magazine for educational purpose.

Are Indian Banks Bankrupt????


I read this article 3 months back in money life in a lighter note and thought the situation might not be so bad. After seeing the current quarter results of banks, now I think I must have written this blog long back. If few investor read this blog 3-4 months back , they would not have lost their hard earned money by investing in banks at peak!!! 

It really happened to each and every bank is now and they are giving true picture of NPA after RBI come with a stick.

The banking sector growth (PAT) had been declined by 14.1% as per RBI Financial Stability Report (Issue No 11, June 2015)

Extracted From PWC Banking Analysis.

CDR is there for 15 years and it has been provided for banks to distress their loan account taking into account genuine cases. Suppose I took loan 10 crore from bank and now I don’t have money then bank may give 15 years to repay. What will happen if I will not have a genuine will to repay after agreeing with bank and suppose my income will vanish and I will go bankrupt …… L

The same situation has been  happening to the banks one after another … Now the situation is so worse for some banks gross NPA = Bank’s Total Market Cap !!!!!
RBI tries to make Banks more powerful to make CAP (Corrective Action Plan) to recover well before account would become NPA in last January 2014 … but it seems bank failed in accessing those NPA candidates.

To help bank’s further RBI permits rescheduling of the debt without considering it as restructuring. Actually it was helping banks to show less NPA on balance sheet and refinancing stalled infra and other projects.


How Banks invited more problems?

The CDR (corporate debt restructuring),JLF(Joint Lenders Forum) and 25%/50% mechanism introduced to help banks to mitigate the initial provisioning pressure. Still SBI introduced more flexibility by its 5-25 structure.

According to Nayak committee report published in May 2014 the financial position of PSBs are very fragile. It is due to regulatory delay and weak board governance of PSBs.

Apart from that you might have heard S k Jain episode of syndicate bank. Was this an isolate case?If the owner who supposed to be the watchdogs for effective management, become nibblers, Can employee be far behind??

Note: It was just an analysis why PSB and other banks are in severe pain now. I may be wrong, Facts and content I have taken from Money life magazine for educational purpose.

Everyone wants reform. But few can name more than 3 or 4. Just listed the 29 BIG reforms from Current Govt.

As we know the current Govt has been trying hard to push for reforms  but we are least aware what are they . Just thought of highlighting those.Hopefully all of the reforms will be completed very soon amicably …..

S.No
Reform Name
Status
How Difficult For Govt to pass
More Info
1
Direct Benefit Transfer
In Progress
High
The government is pushing for this reform, but progress depends on state capacity and commitment.
2
Allow More than 50% FDI in Insurance
In Progress
High
Parliament on 3/12/2015 approved amendments to India’s Insurance Act that increase the FDI cap from 26% to 49%.
3
GST
Incomplete
High
The Lok Sabha passed the GST Bill (122nd Constitutional Amendment) on 5/6/15, but the legislation is stalled in the Rajya Sabha.
4
Deregulate Kerosene Price
Incomplete
High
Deregulating kerosene pricing will lower government subsidies and also encourage the expansion of private hydrocarbon production.
5
Remove Govt mandated minimum prices for agricultural goods
Incomplete
High
Removing minimum support prices will reduce the government’s subsidy burden and help end the over-production of staple grains
6
Deregulate Fertilizer Prices
Incomplete
High
On 5/13/15 the government announced a new four-year urea policy that will continue the price regulation regime.
7
Allow foreign lawyers to practice in India
Incomplete
High
Allowing foreign law firms to establish offices and practice law in India will lower barriers to doing business in India.
8
Relax government controls over corporate downsizing
Incomplete
High
India’s Industrial Disputes Act sets a floor of 100 employees after which government permission is required to lay off workers. Some firms choose to remain below this level, giving up growth opportunities, in order to retain flexibility
9
Make it Quicker and Easier for companies to go through Bankruptcy
Incomplete
High
On 11/4/2015 the Finance Ministry’s “Bankruptcy Reforms Law Committee” issued its report on a model law, as well as draft legislation
10
More than 50% FDI in Railways
Complete
Low
DIPP Press Note 8 (2014), issued 8/27/2014, opened most of the railways sector to 100 percent FDI.
11
Allow Foreign Investment in more construction projects
Complete
Low
A DIPP Press Note , issued 11/10/2015, removed almost all restrictions on FDI in construction, including minimum project size, and reduced the lock-in period for capital to three years.
12
Extended the Expiration date of industrial licenses
Complete
Low
DIPP Press Note 9 (2014), issued on 12/20/2014, increased the maximum validity of an industrial license from two years to seven years.
13
Allow More than 50% FDI in retail e-commerce
In Progress
Low
A DIPP Press Note , issued 11/10/2015, allows single-brand retail operations and all Indian manufacturers to engage in e-commerce. FDI is allowed in single-brand retail as long as 30% of products sold are manufactured in India.
14
Raise the ceiling on foreign institutional investment in Indian companies
Incomplete
Low
The long-standing 10% limit on single institutional investors hinders investment in high-growth Indian companies. SEBI raising this threshold — even to 20% — will unlock significant liquidity for listed Indian companies.
15
Deregulate Diesel Pricing
Complete
Medium
The government deregulated diesel pricing on 10/18/2014.
16
Fully open the coal/mining sector to private/foreign investment
Complete
Medium
Parliament approved the Coal Mines (Special Provisions) Act, 2015 on 3/20/2015, opening the sector to private—including foreign—investment.
17
Conduct transparent auction of telecom spectrum
Complete
Medium
In March 2015 the government conducted a simultaneous auction across several bands recently freed by the Ministry of Defence.
18
End of retrospective taxation of cross-border investments
In Progress
Medium
On 8/28/14 the Central Board of Direct Taxation announced the formation of a 3 member panel to “screen” use of the retrospective principle.
19
Deregulate Natural Gas Pricing
In Progress
Medium
The government increased the ceiling price of natural gas on 10/18/2014.
20
Use Direct Benefit Transfer to deliver cash subsidies
In Progress
Medium
The government is gradually increasing the number of cash-transfer schemes that use DBT, but has faced implementation issues.
21
Allow more than 50% FDI in Defense
In Progress
Medium
A DIPP Press Note , issued 11/10/2015, makes approval of FDI up to 49% automatic, with higher levels permitted on a case-by-case basis.
22
Reduce Restriction of Foreign Investment in Multibrand Retail
In Progress
Medium
A DIPP Press Note , issued 11/10/2015, relaxes sourcing rules for foreign-owned retailers that offer “cutting-edge technology” and makes it easier for other retailers to meet the sourcing requirements.
23
Reduce Restriction of Freign Investment in Single Retail
In Progress
Medium
A DIPP Press Note , issued 11/10/2015, relaxes sourcing rules for foreign-owned retailers that offer “cutting-edge technology” and makes it easier for other retailers to meet the sourcing requirements. The Press Note opens ecommerce to foreign-owned single brand retailers, too
24
Establish Process For Thoughtful financial regulations
In Progress
Medium
The Ministry of Finance in December 2013 issued a guidebook for financial regulators on adopting stronger regulatory governance practices. Adherence has been modest, however.
25
Institute a 30 day notice and comment period for proposed regulations
In Progress
Medium
The Ministry of Law & Justice sent a letter on 2/5/2014 to all ministries, urging them to comply with a 30 day notice & comment period and other rules. Implementation has been inconsistent.
26
Stop forcing banks to lend to priority sectors
Incomplete
Medium
The Ministry of Law & Justice sent a letter on 2/5/2014 to all ministries, urging them to comply with a 30 day notice & comment period and other rules. Implementation has been inconsistent.
27
Make it easier to start a business by offering one-stop shopping solutions
Incomplete
Medium
The World Bank’s “Doing Business” report notes that India requires 12.9 procedures to start a business—well above the South Asian average (7.9 procedures). Link is the same as above.
28
Ensure that business owners can receive a permit in 10 days or less
Incomplete
Medium
The World Bank’s “Doing Business” report notes that it takes on average 29 days to start a business in India. That’s nearly double the South Asia average (15.7 days). The OECD average is 8.3 days.
29
Allow cities to issue municipal bonds to raise funds
Incomplete
Medium
Creating the policy, legal, accounting, and reporting framework for local governments to issue municipal or project revenue bonds will spur the creation of this financing option.
Disclaimer :
he data are taken from  Center for Strategic and International Studies