Month: May 2022

Landmark reforms: Costs for some, benefits for all

The 100% made in India Account Aggregator framework once active will transform India by giving the citizen power over her own data and allowing digitisation and speedy reforms. But like the credit bureau reforms it may take a long time in having an impact because existing players will see costs and benefits will be for everyone. India cannot wait for a decade and in Harsh’s article in business standard he write about how the financial sector regulators need to set a firm date for IPs to comply. India needs to hasten the slow pace of furious change. Your comments are welcome.

Limit Section 54 benefit to curb money laundering

Why the price of your flat is so high? The demand from ” Investors” with black money keeps the flat prices high for genuine users. The exemption for long term capital gains under section 54 encourages such money laundering activities. Harsh’s article in Business standard today suggesting how the government can limit the exemption so as to prevent money laundering and at the same time not impact the genuine buyers who may be upgrading their flats. This tax loophole should be closed to bring down the cost of flats for genuine buyers. Your comments are most welcome

More is less in client communication

Regulations and custom dictate a deluge of communications to an investor from advisors, platforms, mutual fund houses/PMS companies. With pre-and post communication coming in for each transaction it is a barrage of communication that overwhelms most investors. They respond by ignoring even the important communications that may be buried deep inside this barrage of communication. To top it most such communication is worded in non understandable legal language. One of the progressive regulators can take a lead to at least attempt much needed simplification and rationalisation exercise in the matter. A good first step would be to allow consumers to actively choose what kind of communication they wish to receive (or not receive) from their service providers. The second step would be to penalise service providers who disregard the active choice made by the consumer. Language and process simplification can follow later. Harsh’s article in Business Standard. Comments welcome.

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