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<ul><li>Spooked by rising debt defaults, the Employee Provident Fund Organisation has decided to play it safe. </li><li>Not just to private companies, the pension fund has decided to turn cautious even while buying bonds of government companies. </li><li>EPFO also decided to exercise its early redemption options and cut down exposure to the debt-ridden DHFL. </li><li>The recent crisis in non-banking financial companies, sparked by the collapse of IL&amp;FS, has led to an acute credit crunch in the Indian economy. </li></ul> The credit crunch in the Indian economy is getting more acute by every passing day. The latest to join the list of risk-averse financial institutions, spooked by the spike in unpaid loans, is the country’s pension fund. The Employees Provident Fund Organisation (EPFO) which is managed by the ministry of labour and employment, today made a landmark decision to stay away from lending to private sector companies. It has decided to turn cautious while lending to state-owned companies as well. “The Central Board of Trustees (CBT) approved the decision to withhold any further investment in Private Sector Companies Bonds and to compulsorily consider one of the two required ratings necessarily from CRISIL, CARE, ICRA and India Ratings for investments in public sector undertakings’ bonds category,” said a press release on the discussions held today. This will be a heavy blow to the company as<a href="https://www.business-standard.com/article/companies/nbfc-crisis-epfo-decides-to-halt-investment-in-private-sector-bonds-119062001418_1.html"> it invests as</a> much as 20-45% of its incremental funds in debt instruments. And the assets of the organization that manages the pensions of hundreds of millions of Indians is at massive ₹8 lakh crore. This is another big setback for the market sentiment which is already saddled by a slew of bad news about the economy. Sensex tumbled by 581 points today (August 22). Twice bitten This decision probably came after its exposure to the non-banking financial companies like IL&amp;FS which defaulted on payments. Though it officially never declared how much it is owed to by the scam-ridden IL&amp;FS,<a href="https://economictimes.indiatimes.com/markets/stocks/news/epfo-writes-to-finance-ministry-on-exposure-in-ilfs-bonds/articleshow/68135800.cms?from=mdr"> </a>the exposure is estimated at ₹570 crore, <a href="https://economictimes.indiatimes.com/markets/stocks/news/epfo-writes-to-finance-ministry-on-exposure-in-ilfs-bonds/articleshow/68135800.cms?from=mdr">as per reports citing sources</a>. While the direct exposure to infrastructure lending giant would be just 0.1% of EPFO’s total investments, the decision to abstain from making fresh loans to corporates may be triggered by the wave of defaults triggered by the collapse of IL&amp;FS. EPFO has exposure to yet another shadow bank DHFL, which is one of the many companies that crumbled under the IL&amp;FS debacle. In today’s meeting, the pension fund decided to exercise its early redemption options to cut down exposure to the housing finance company which is saddling heavy debt. In 2015, the government had announced that the pension fund would invest more and make the most of the ‘world’s fastest growing economy’ tag. The Finance Minister Arun Jaitley had then said <a href="https://economictimes.indiatimes.com/news/economy/policy/labour-ministry-to-notify-pattern-of-epfo-investment-in-equity-soon/articleshow/46761238.cms?from=mdr">in the Budget </a>that EPFO would invest 5% of its funds into equity and equity related schemes. However, as things turned for the worse in the last three years, EPFO joined the list of lenders and investors who prefer keeping cash safe in the banks instead of lending to risky companies. The resulting credit crunch further hamstrung an already sluggish economy.

Indian pension fund says it won’t lend money to private companies

The labour ministry has implemented retirement fund body <keyword id="6372438" type="ORGANIZATION" weightage="20" keywordseo="epfo">EPFO</keyword>'s <keyword id="68581" type="PERSON" weightage="20" keywordseo="Decision">decision</keyword> to restore pension commutation under the Employees' Pension Scheme, a move that will benefit 6.3 lakh pensioners. Pension commutation refers to part-withdrawal of fund in advance by a subscriber, who then gets reduced pension amount for 15 years. With the ministry's latest decision, such pensioners would receive their full pension after completion of 15 years. On February 20, the ministry notified the decision of the <keyword id="351142" type="COMPANY" weightage="20" keywordseo="Employees-Provident-Fund-Organisation">Employees' Provident Fund Organisation</keyword> (EPFO) to restore pension of those who opted for commutation of their pension on or before September 25, 2008. In this regard, the Employees' Pension Scheme -- run by the EPFO -- has been amended. "The normal pension in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of this scheme, on or before the 25th day of September, 2008, shall be restored after completion of fifteen years from the date of such commutation," as per the notification. As many as 6.3 lakh pensioners would benefit from the decision. They had opted for commutation of their pension and got a lump sum at the time of retirement from their pension fund on or before September 25, 2008. The provision for pension commutation of pension was withdrawn by the EPFO. Now, the facility has been restored for all those who opted for it on or before September 25, 2008. Under the commutation, monthly pension used to be cut by one-third for the next 15 years and the reduced amount was given in lump sum. After 15 years, pensioners were entitled to get the full pension. In August 2019, the EPFO's apex decision-making body -- <keyword id="5190387" type="COMPANY" weightage="20" keywordseo="Central-Board-of">Central Board of</keyword> Trustees headed by the labour minister -- approved the proposal to restore commutation of pension for 6.3 lakh pensioners who had opted for the benefit. An EPFO panel had recommended for amendment in EPS-95 (Employees' Pension Scheme 1995) for restoration of commuted value of pension to pensioners after 15 years of drawing commutation. Earlier, under EPS-95, members were allowed to commute one-third of their pension for 10 years, which was restored after 15 years. This facility is still available to certain categories of government employees.

6.3 lakh pensioners in India can now withdraw their funds in advance

Mumbai, Feb 12 () Former directors of Dewan Housing Finance Corporation Ltd on Wednesday filed an application in the National Company Law Tribunal seeking participation in the committee of creditors' (CoC) meetings. The DHFL former directors were denied participation in the CoC meetings as its board was superseded by the Reserve Bank of India (RBI) in November 2019. The participation in the CoC meetings cannot be allowed as the insolvency process was initiated by the RBI, the counsel representing the administrator said. The tribunal directed the administrator to file a reply in this regard before February 19. Meanwhile, last week, the Uttar Pradesh Power Corporation Contributory Provident Fund Trust had moved NCLT to recover dues from DHFL. The trust, which manages the power corporation's provident fund, claimed that the non-bank lender owes it more than Rs 148 crore that it invested in DHFL's fixed deposits. Further, the counsel representing the trust told the Mumbai bench of NCLT that they have filed claims with the CoC to DHFL. NCLT directed the administrator two weeks' time to file a reply after the CoC meeting. DHFL became the first financial services company to be referred to the NCLT under new rules notified by the government on November 15, 2019. In December 2019, NCLT had admitted the Reserve Bank of India's petition to initiate insolvency proceedings against the financial services company. The tribunal also appointed R Subramaniakumar, the RBI-appointed administrator, as the resolution professional for the insolvency process of DHFL. SM HRS

DHFL's former directors move NCLT seeking participation in CoC meetings

Mumbai, Nov 20 () Sebi Chairman Ajay Tyagi on Wednesday said mutual funds will join the resolution process of DHFL to be done under the insolvency law framework.
 Amid the crisis at DHFL, once a leading player in the housing finance space, the Reserve Bank of India (RBI) on Wednesday superseded the board of the company.
 Mutual funds, which have lent substantial sums of money to DHFL had not joined previous attempts at resolution, after financial woes at the company came to light.
 "Under the IBC, mutual funds are also considered as lenders and they will follow that rule. We have nothing to say on that," Sebi Chairman Ajay Tyagi told reporters here, without naming DHFL.
 Resolution of financial service providers can now be taken up under the Insolvency and Bankruptcy Code (IBC), with the government notifying a generic framework for such cases.
 Tyagi said that a distinction has to be made between ICA (Inter-Creditor Agreement) and IBC, while making it clear that mutual funds would join the process under the Code.
 ICA was primarily for entities regulated by the central bank and akin to an "out of court settlement" before an asset goes to the National Company Law Tribunal (NCLT), he added.
 According to him, Sebi had given mutual funds the choice on whether to join ICA or not and made it clear that if they join, it should be limited to clearing the stock of toxic assets.
 "While doing so, Sebi had made it clear that mutual funds are different in structure as compared to banks," he noted.
 RBI has appointed R Subramaniakumar, ex-managing director of Indian Overseas Bank, as administrator of DHFL, which is estimated to have debt worth over Rs 1 lakh crore. AA RAM RAM
RAM

Mutual funds will join DHFL resolution process: Sebi chief

Mumbai, Mar 7 () The Enforcement Directorate questioned Yes Bank founder Rana Kapoor for the second day on Saturday in connection with a money laundering probe against him and others and raided some more locations in Delhi and Mumbai, officials said.They said Kapoor was brought to the agency's office in Ballard Estate area after noon.He has been questioned for over seven hours and his statement recorded by the agency under the Prevention of Money Laundering Act (PMLA), the officials said.The premises of Kapoor's three daughters in Delhi and Mumbai were also searched on Saturday to gather more information and evidence, they added.The ED had searched Rana's residence in the upscale 'Samudra Mahal' building in the Worli area on Friday night and grilled him there too.The questioning of Kapoor is continuing, the officials said.The case against Kapoor is linked to the scam-hit Dewan Housing Finance Corporation (DHFL) as the loans given by the bank to the company allegedly turned non-performing assets (NPAs), they said.A Rs 600-crore worth loan extended by the DHFL to an entity is also at the centre of the ED probe, they added.Action against Kapoor is being conducted under the PMLA.According to the officials, the central agency is also probing the Yes Bank founder's role in connection with the disbursal of loans to some corporate entities and the subsequent alleged kickbacks reportedly received in his wife's accounts.Other alleged irregularities are also under the agency's scanner, including the one related to the alleged Employees' Provident Fund (EPF) fraud in Uttar Pradesh Power Corporation Limited (UPPCL), they said.The CBI recently took over the investigation into the Rs 2,267-crore EPF fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in DHFL.The ED action came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. NES DIVDIV

ED questions Yes Bank founder Rana Kapoor for second day; expands raids

Mumbai, Mar 7 () The Enforcement Directorate on Saturday continued questioning Yes Bank founder Rana Kapoor in connection with a money laundering probe against him and others, officials said. They said Kapoor was brought to the agency's office in the Ballard Estate area Saturday afternoon. The ED had searched Rana's residence in the upscale 'Samudra Mahal' complex in the Worli area on Friday night and had grilled him there too. The questioning of Kapoor is continuing, they said. The case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned non-performing assets (NPAs), they said. Action against Kapoor is being conducted under the Prevention of Money Laundering Act (PMLA) by the ED. The central agency is also probing Kapoor's role in connection with the disbursal of loans to some corporate entities and the subsequent alleged kickbacks reportedly received in his wife's accounts. Other alleged irregularities are also under the agency's scanner, including the one related to the alleged PF fraud in the Uttar Pradesh power corporation, they added. The CBI has recently taken over investigation into the Rs 2,267-crore Employees' Provident Fund fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in Dewan Housing Finance Corporation (DHFL). The ED action came after the Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect. Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. NES SMNSMN

ED continues questioning Yes Bank founder Rana Kapoor

New Delhi, Retirement fund body EPFO on Thursday started crediting 8.5% rate of interest on employees' <keyword id="45028" type="ORGANIZATION" weightage="20" keywordseo="Provident-Fund">provident fund</keyword> (EPF) for 2019-20 for its over six crore members, a senior official said. A large number of members of the <keyword id="6423266" type="COMPANY" weightage="20" keywordseo="employees-provident-fund-organisation">Employees Provident Fund Organisation</keyword> (EPFO) would be able to see their updated EPF accounts with credit of 8.5 per cent rate of interest for 2019-20, a senior official told . The official further informed that the <keyword id="126926" type="COMPANY" weightage="20" keywordseo="Labour-Ministry">labour ministry</keyword> has already sent the direction to credit the 8.5% interest on EPF for 2019-20 to the EPFO and the body has already started crediting interest into members account for the last fiscal. Labour Minster <keyword id="258830" type="PERSON" weightage="20" keywordseo="Santosh-Gangwar">Santosh Gangwar</keyword> said, "We had said that it would be our endeavour to provide 8.5% rate of interest on EPF for 2019-20. We have issued a notification to provide 8.5% rate of interest on EPF for 2019-20. We have also began the process to credit the said rate of interest into subscribers account." The minister also said that he has asked to ensure that all those members who are retiring on December 31, must get 8.5% rate of interest (for 2019-20). The process for capital gains for payment of 0.35% interest for 2019-20 has also been completed, he added. "It (8.5% interest) would comprise 8.15% from debt income and balance 0.35% (capital gain) from the sale of ETFs (exchange traded funds) subject to their redemption by 31st December, 2020," he said. Earlier in the day, Gangwar had approved the 8.5% rate for last fiscal after receiving the finance ministry's concurrence. Thereafter the direction was sent to the EPFO for crediting the interest on EPF into the subscribers' accounts. In March this year, the EPFO's apex decision making body <keyword id="225704" type="COMPANY" weightage="20" keywordseo="Central-Board-of-Trustees">Central Board of Trustees</keyword> headed by Gangwar had approved 8.5% interest rate on EPF for 2019-20. Earlier in September this year, the EPFO had decided to split 8.5% interest into two installments of 8.15% and 0.35% in its trustees meet headed by Gangwar. But later, the ministry decided to credit the entire 8.5% into subscribers' accounts in one go. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-tata-steel-vedanta-adani-green-tata-motors-maruti-mm-dhfl-v-mart-indian-bank-and-others/articleshow/80038635.cms">Top stocks to watch — Tata Steel, Vedanta, Adani Green, Tata Motors, Maruti, M&amp;M, DHFL, V-Mart, Indian Bank, and others</a> <a href="https://www.businessinsider.in/tech/mobile/news/checkout-the-list-of-upcoming-new-mobiles-in-january-2021-with-expected-price/articleshow/80039794.cms">Upcoming smartphones in India in January 2021</a> <a href="https://www.businessinsider.in/international/news/ten-of-the-most-outrageous-predictions-for-2021-according-to-saxo-bank/slidelist/80040045.cms">From Amazon buying Cyprus to Germany bailing out France — here are ten of the most ‘outrageous’ predictions for 2021</a>

EPFO begins crediting 8.5% interest for six crore people — to reflect in EPF accounts from new year

<ul><li><keyword id="9356171" type="UNKNOWN" weightage="20" keywordseo="private-sector-lender-karnataka-bank">Private sector lender Karnataka Bank</keyword> has reported to the RBI that it has been defrauded of over Rs 285 crore consequent to loans gone bad to four entities including DHFL.</li><li>A total of Rs 285.52 crore has been reported as fraud wherein the bank was one of the consortium lenders during 2009 to 2014 to <keyword id="533676" type="DOMAIN" weightage="20" keywordseo="Dewan-Housing-Finance-Corporation-Ltd">Dewan Housing Finance Corporation Ltd</keyword> (DHFL), Religare Finvest, <keyword id="9356169" type="COMPANY" weightage="20" keywordseo="fedders-electric-and-engineering-ltd">Fedders Electric and Engineering Ltd</keyword> and Leel Electricals Ltd, <keyword id="66845" type="COMPANY" weightage="20" keywordseo="Karnataka-Bank">Karnataka Bank</keyword> said in a regulatory filing.</li><li><keyword id="9356168" type="COMPANY" weightage="20" keywordseo="fedders-electric-and-engineering-limited">Fedders Electric and Engineering Limited</keyword> was reported as NPA in July 2018 by a member bank in consortium, subsequent to which Karnataka Bank reported fraud of Rs 41.30 crore on account of fund diversion.</li></ul>Private sector lender Karnataka Bank has reported to the RBI that it has been defrauded of over Rs 285 crore consequent to loans gone bad to four entities including DHFL. A total of Rs 285.52 crore has been reported as fraud wherein the bank was one of the consortium lenders during 2009 to 2014 to Dewan Housing Finance Corporation Ltd (DHFL), Religare Finvest, Fedders Electric and Engineering Ltd and Leel Electricals Ltd, Karnataka Bank said in a regulatory filing on Friday. The maximum is owed by DHFL at Rs 180.13 crore, followed by Religare Finvest Rs 43.44 crore, Fedders Electric Rs 41.30 crore and Leel Electricals Rs 20.65 crore. "DHFL (defaulted entity) dealing with us since 2014 had availed various credit facilities under consortium arrangement wherein, we were one of the member banks. In view of Early Warning Signals (EWS) in the conduct of the account and other developments, the account was red flagged on November 11, 2019. "The borrowing account was classified as Non-Performing Asset on October 30, 2019 and now, for misappropriation &amp; criminal breach of trust &amp; diversion of funds in the credit facilities extended earlier to the company, a fraud amounting Rs 180.13 crore has been reported to RBI," Karnataka Bank said. Likewise, Religare Finvest Ltd (RFL) was dealing with the bank since 2014, availing various credit facilities. Following classification of this account as non-performing in October 2019 by a consortium member, Karnataka Bank reported to RBI a fraud amounting to Rs 43.44 crore in the credit facilities extended earlier, on account of diversion of funds. Leel Electricals was classified as NPA account in March 2019 and it reported to RBI a fraud amounting to Rs 20.65 crore in the credit facilities to the company on account of diversion of funds. "In all the referred three non-performing accounts, necessary provisions have been made in full to be spread across four quarters," it said. Fedders Electric and Engineering Limited was reported as NPA in July 2018 by a member bank in consortium, subsequent to which Karnataka Bank reported fraud of Rs 41.30 crore on account of fund diversion. The account has already been fully provided for, it added. KPM ABM ABM

Karnataka Bank reports ₹285 crore fraud in four loan accounts

<ul><li><keyword id="8883506" type="UNKNOWN" weightage="20" keywordseo="yes-bank-founder-rana-kapoor">Yes Bank founder Rana Kapoor</keyword> was arrested by the Enforcement Directorate (ED) early today, March 8.</li><li>He has been arrested under the provision of the <keyword id="6355007" type="UNKNOWN" weightage="20" keywordseo="Prevention-of-Money-Laundering-Act">Prevention of Money Laundering Act</keyword> (PMLA).</li><li>Authorities claim he was not cooperating with the probe.</li></ul> The Enforcement Directorate arrested Yes Bank founder Rana Kapoor under money laundering charges here in the early hours of Sunday, officials said. The banker was held under the provision of the Prevention of Money Laundering Act (PMLA) around 3 am as he was allegedly not cooperating in the probe, they said. Kapoor's arrest at the ED office in Ballard Estate followed over 20 hours of questioning by the central agency after it raided his residence on Friday night. The arrest comes after charges of alleged financial irregularities and mismanagement in the operations of the private bank surfaced and the RBI and Union government initiated action to control its affairs. Officials said Kapoor, 62, will be produced before a local court during the day to obtain custody. The investigating officer of the case had recorded Kapoor's statement under the PMLA when he was first interrogated on Friday night at his upscale residence in 'Samudra Mahal' complex in Worli area here. He was brought to the ED office on Saturday noon for a fresh round of questioning. On Saturday, the agency widened its probe in the case as the premises of Kapoor's three daughters in Delhi and Mumbai were searched to gather more information and evidence. According to officials, Kapoor's wife Bindu and daughters -- Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor -- are allegedly linked to some companies to which the suspected "proceeds of crime" have been traced. The case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned NPAs, they said. A Rs 600 crore worth loan extended by the DHFL to an entity is also at the centre of the ED probe, officials said. The central agency is also probing Kapoor's role in connection with the disbursal of loans to some corporate entities and the subsequent alleged kickbacks reportedly received in his wife's accounts. Other alleged irregularities are also under the agency's scanner including the one related to the alleged PF fraud in the Uttar Pradesh power corporation, they added. The CBI has recently taken over investigation into the Rs 2,267-crore Employees' Provident Fund fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in Dewan Housing Finance Corporation (DHFL). The ED action came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect. Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. PTI NES AD 03080721 NNNN

Yes Bank founder Rana Kapoor arrested by ED on charges of money laundering

<ul><li>Debt-ridden DHFL’s promoters asked its employees to purchase its wealth management arm. </li><li>Swapnil Pawar bought out the India arm of the US-based hedge fund, which he was heading. </li><li>Employees of <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword> and Reid &amp; Taylor too tried to take control of their companies. </li></ul>The tables have turned as employees of troubled companies are saving them instead of quickly jumping ship. One such rare case is that of Deewan <keyword id="100080" type="DOMAIN" weightage="20" keywordseo="housing-finance">Housing Finance</keyword> (DHFL). The debt-ridden company’s promoters asked the employees of its wealth management arm WGC Wealth <a href="https://www.business-standard.com/article/companies/more-employees-looking-to-buy-out-promoter-stake-in-companies-119062100366_1.html">to purchase it</a>. This is after a debt of ₹1.2 lakh crore mounted and its promoters are keen on selling chunks of the company. Instead of appealing to investors, the company approached its own employees for help who came through. The deal has been closed today, according to a <a href="https://www.business-standard.com/article/companies/dhfl-promoters-sell-stake-in-wealth-management-business-to-employees-119062700505_1.html">report by Business Standard</a>. Yet another financial services company employee Swapnil Pawar bought out the Indian arm of the US-based hedge fund, which he was heading. Pawar who is also the founder of Asqi Advisors, told Business Standard that they intend to set up the company as an <keyword id="138356" type="COMPANY" weightage="20" keywordseo="Asset-Management">asset management</keyword> services firm and expand it. The number of employee groups who are stepping in to save or take over their companies is rising, as is the number of troubled companies. The employees of the bankrupt clothing label Reid &amp; Taylor India too had attempted to bid for the company. However, <keyword id="6354457" type="ORGANIZATION" weightage="20" keywordseo="National-Company-Law-Tribunal">National Company Law Tribunal</keyword> which assessed their bid said that the investors backing the staff were unable to prove their net worth, <a href="https://www.business-standard.com/article/companies/more-employees-looking-to-buy-out-promoter-stake-in-companies-119062100366_1.html">according to reports</a>. The many employees of grounded airline Jet Airways too had tried to bid for the firm, which too has gone into bankruptcy. However, no deal could be reached as the heavily indebted company eventually went into liquidation. Most such deals take place in the financial services sector where employees play a large role. However, India has very few stories to tell where employees bailed their companies out. In 1987, construction major L&amp;T was once a target of a hostile takeover by Reliance Industries headed by Dhirubhai Ambani. Kumar Mangalam Birla was also one of the people who had purchased stake in the construction company, in an attempt to take over his rival in the cement business. As a response, its own employees set up a trust and purchased the shares back and gained control.

Some employees in India are stepping up with investments to save the company and their jobs

Welcome to the wonderful world of <a href="http://www.businessinsider.in/JACK-BOGLE-An-Elegantly-Simple-Formula-Shows-Why-Passive-Investing-Will-Earn-Higher-Returns-Than-Active-Investing/articleshow/22086333.cms">investments</a>! 
 1. Nominate, Nominate, Nominate: It's presumed that you have an investible surplus either in the form of cash lying idle in the bank account, via salary payments, or you’ve come into money. Either way, the first thing to do is to ensure that you have a nominee in place in your bank account, <keyword id="35450" type="COMPANY" weightage="100" keywordseo="insurance">insurance</keyword> policy, trading-cum-demat account, <keyword id="114854" type="ORGANIZATION" weightage="100" keywordseo="Employee-Provident-Fund">Employee Provident Fund</keyword> account (with your employer) and the Public Provident <a href="http://www.businessinsider.in/Which-One-Is-Better-InvestmentIn-Mutual-Funds-Or-Direct-Investment-Into-Stocks/articleshow/27116001.cms">Fund</a> (with the government). 
 
You may or may not have all of these <a href="http://www.businessinsider.in/If-youve-made-your-first-Mutual-Fund-investment-here-is-what-you-should-do-next/articleshow/47176866.cms">investment</a> avenues, but the ones that you have require a nominee and its best to review the nominee’s name once you get married and later, have a child. Better still, make a will. 
 
2.Pay-Off Debt: You should be assuming as little debt as possible, and <a href="http://www.businessinsider.in/Mortgage-Protection-6-ways-to-come-out-of-a-loan-trap/articleshow/47097827.cms">paying off</a> outstanding credit card bills is of paramount importance. The amount of penal interest that credit card companies charge puts even seasoned money lenders to shame. Have NIL outstanding balance on your credit card. 
 3.Get Term Insurance: If you have dependents, then do ensure that they have at least two years’ worth of expenses to pay for in case something untoward happens to you. Calculate 24 months’ worth of expenses, add 20 percent to them and get a term cover for that amount. Keep adding to your term cover every two years as both your salary and certainly your expenses rise each year. Remember not to confuse insurance with investment. If your advisor tries to lure you into a ULIP or a monthly <keyword id="35471" type="ORGANIZATION" weightage="100" keywordseo="SIP">SIP</keyword>, from an insurance company, masquerading as a Life cover, then you should abandon that advisor immediately. 
 
4.Get Medical Insurance: In addition to the one that your employer offers. Often, people leave an organization in a huff, only to 
realise that they and their family are bereft of any medical <a href="http://www.businessinsider.in/6-pre-marriage-financial-decisions-everyone-should-take-before-saying-I-Do/articleshow/47865034.cms">insurance</a>. The same happens when there are sudden job losses announced by companies. Hence, it is always best to have a parallel medical insurance paid for by yourself. In any case you get a tax benefit in your annual <keyword id="6354751" type="COMPANY" weightage="100" keywordseo="Income-Tax">income tax</keyword> returns. 
 
In addition, keep money worth 5-6 months of expenses in a money market liquid fund so that if you have an unforeseen run-in with your boss, or you decide to go your own way then at least half-year’s worth of expenses are arranged for. Welcome to investing now that most risks are taken care of. 
 5.Public Provident Fund: The government pays you 8.5 percent compounded interest on your PPF <keyword id="6362476" type="ORGANIZATION" weightage="100" keywordseo="investments">investments</keyword>. They also help you save tax. Investments worth 100,000 rupees a year are allowed. These funds are locked in for at least five years and the government allows only a certain amount of money to be withdrawn from the account as it is meant for your old age, when income will dwindle but expenses will keep on rising. 
 There is a lot of debate among <keyword id="143983" type="POSITION" weightage="100" keywordseo="investment-advisors">investment advisors</keyword> whether PPF should be maintained or not considering that the rate of interest often falls below the rate of <keyword id="22195" type="COMPANY" weightage="100" keywordseo="Inflation">inflation</keyword>. However, its best to have some sort of fixed interest bearing income in your investment portfolio and this should be encouraged. 
 
6.Equity Funds: Just run a simple monthly Systematic Investment Plan into a well-diversified equity fund at the start of your professional life. Increase the SIP by 5-10 percent each year as that is what your average annual increment will be. And don’t look at that money till you retire. The best time to start your SIP is today! Do not go into sector specific funds, no matter what your broker tells you. 
 
7. Buying a House: If you can afford one, certainly do so. But do not invest into multiple homes across many cities. It’s a waste of investible surplus, its tax-inefficient, it is relatively ill-liquid and the average returns via rentals over years are much below those earned from equities. 
 
Lots of people feel investing is a very difficult thing to master and hence, prefer to keep money in fixed deposits. While FDs ensure that your capital remains protected, the returns via interest income are taxed, beyond a certain amount of interest earned, and in any case the rate of interest is below inflation rate. It’s a non-efficient way of utilising your money. 
 
If you take these 7 steps then you are cruising on the investment highway! 
 
(Image credits: Indiatimes)

Top 7 things to do as you start to invest

Mumbai, Dec 29 () The Reserve Bank of India-appointed administrator of the crippled Dewan Housing Finance Ltd (DHFL) called for a meeting of its creditors for the first time on Monday after the mortgage lender was admitted for insolvency proceedings.
 The third-largest pure play mortgage player is the first non-banking financial company or housing finance company to face the corporate insolvency resolution process.
 The Mumbai bench of the National Company Law Tribunal (NCLT) had admitted the company for insolvency resolution on December 2 and appointed Indian Overseas Bank former managing director and CEO R Subramaniakumar as the company's administrator.
 "Since the resolution professional (administrator) has now been appointed, he is meeting all the creditors and will discuss the way forward for resolution of the company," a source told .
 DHFL did not respond to an e-mail query.
 The meeting on Monday will be attended by all creditors of the company including banks, bondholders, insurance and mutual fund companies.
 Subramaniakumar will also discuss timelines so that the account is resolved at the earliest, he said.
 "The status of the claims that have been received so far by the company will also be decided upon," said another source.
 In its order on December 3, the NCLT asked the company's administrator to update the list of depositors, along with the amount payable to each of them. Following this, the administrator had reportedly asked all its fixed depositors and bondholders to file their claims by December 17.
 The NCLT order had also noted that the company has an outstanding unsecured loan of Rs 18,882 crore as of March 31, 2018. The unsecured loans constituted Rs 10,243 crore of public deposits for the same period.
 Citing governance issues and severe liquidity crisis, the regulator on November 20 superseded the board of DHFL and appointed Subramaniakumar as its administrator.
 The decision on DHFL came after the government on November 15 notified Section 227 of the Insolvency and Bankruptcy Code (IBC), empowering the RBI to refer stressed financial service providers with an asset size of at least Rs 500 crore to insolvency courts.
 The central bank has also appointed a three-member committee, consisting of IDFC First Bank Non-Executive Chairman Rajiv Lall, ICICI Prudential Life Insurance Managing Director and CEO N S Kanan, and Association of Mutual Funds in India CEO N S Venkatesh, to advise the company's administrator in the resolution process.
 As of July 2019, the beleaguered home financier owes Rs 83,873 crore to banks, National Housing Board, mutual funds and bondholders/retail bondholders. Of the total, secured debt stands at Rs 74,054 crore and unsecured Rs 9,818 crore. Most banks have or are going to declare DHFL account as non-performing assets in the third quarter. HV HRS

DHFL creditors to meet on Monday for discussing resolution

By K J Bennychan Mumbai, Feb 17 () Adani Group, KKR, Bain Capital, Kotak Mahindra Bank and Piramal Enterprises are among the more than two dozen entities that have put in bids for crippled DHFL, the first financial services player undergoing insolvency process, according to two sources.The sources told that out of the interested entities, at least 14 are keen to take over the whole operations of the mortgage lender. In November, the Reserve Bank referred DHFL, the third largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.Prior to that, the company's board was superseded and R Subramaniakumar was appointed as the administrator. He is also the resolution professional under the Insolvency and Bankruptcy Code (IBC).The last date for submission of bids under the insolvency process was Monday.One of the sources said the company has received 24 bids, of which 14 are for the entire operations.According to the second source, the number of bidders was close to 30.While Subramaniakumar could not be reached for comments, calls made to a DHFL spokesperson remained unanswered.Bain Capital's Integral Investments South Asia VII fund, the US-based KKR Credit Advisors, Adani Properties, Welspun group's Astronomical Logistics, Blackstone arm BCP Topco VIII fund, Piramal Enterprises and Hero Fincorp, are among those that have bid for the entire operations of DHFL, the first source said.The source said Hong Kong-based Lonestar Asia Pacific Acquisition, Kotak Ivestment Advisors, Singapore-based SSG Capital Management, Varde Partners' VFSI Holdings, Aion arm Racion Revitalisation, Oaktree's India Opportunities Investment Fund and leading domestic ARC Arcil, are also looking for DHFL's full operations.As per the second source, Deutsche Bank AG, Edelweiss Financial Services, Barings' Maple II BV, Phoenix ARC, Warburg Pincus' Baywater Investment, SC Lowey Primary investments and Multiples Private Equity III, have put in their bids for part of DHFL.This list also includes Vastu Housing Finance Corporation, Asia Pragati Strategic Investment Fund, Promontoria Holding 206 BV (Cerberus), and Burlington Loan Management (Davidson Kempner), the source added.As of July 2019, the company owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders.Most banks led by the State Bank have declared DHFL account as an NPA in the third quarter.DHFL was sent to bankruptcy after the government on November 15, 2019 enabled the Reserve Bank to sent large financial services companies, excluding banks, to the NCLT for insolvency proceedings. BEN RAM

KKR, Adani, Piramal, Kotak, among two dozen bid for DHFL

(Eds: Combines related stories) Mumbai, Mar 8 () Rana Kapoor, the founder of crisis-ridden Yes Bank, was arrested by the ED on Sunday under money-laundering charges after over 20 hours of questioning and remanded to its custody till March 11, a day after the CBI booked him for allegedly receiving kickbacks of Rs 600 crore in form of loans to a company held by his three daughters.As the agencies tightened the noose around the 62-year-old, his daughter Roshni Kapoor was stopped by ED from taking a flight to London as she is required to join the probe, officials said.On Saturday, the agency had widened its probe as the premises of Kapoor's daughters in Delhi and Mumbai were searched to gather more evidence.The banker was taken into custody at the ED office in Ballard Estate under the provisions of Prevention of Money Laundering Act around 3 am on Sunday as he was allegedly not cooperating in the probe, they said. Kapoor was questioned for over 20 hours after ED raided his residence on Friday night.On Sunday, the ED produced Kapoor before a holiday court in Mumbai and sought his remand, saying the role of some companies run by his family members needs to be established and they need to confront all these people with him.The defence lawyer, however, said Kapoor has been selectively targeted by ED and he is cooperating with the probe agency. "We are ready to cooperate and submit all the documents that the agency wants. I have fully cooperated with them," Kapoor said in the court."From the last few days I was not well, hence my family members took me to Breach Candy Hospital, but still I am cooperating with ED," he told in the court.However, the ED told the court it wants to conduct a through investigation and "many people are under the scanner". The court then remanded Rana Kapoor in ED's custody till March 11.Kapoor was arrested by ED on the basis of the CBI FIR registered on Saturday, after allegations of financial irregularities and mismanagement in the operations of Yes Bank surfaced and the RBI and the Union government initiated action to control its affairs.Sources said the CBI booked Kapoor, DoIT Urban Ventures Ltd, a company allegedly held by his family members and promoter-director of DHFL Kapil Wadhawan for alleged criminal conspiracy, cheating and corruption. The details of the FIR emerged on Sunday when the enforcement case information report (ECIR) of ED became public.The CBI alleged Kapoor entered into a criminal conspiracy with Wadhawan for extending financial assistance to DHFL though Yes Bank in return for substantial undue benefits to himself and his family members through companies held by them.According to the CBI FIR, the scam started taking shape between April and June 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of scam-hit DHFL.In return, Wadhawan allegedly "paid kickback of Rs 600 crore" to Kapoor and family members in the form of loans to DoIT Urban Ventures (India) Pvt Ltd, officials said.DoIT Urban Ventures is held by daughters of Kapoor - Roshini, Radha and Rakhee - which are 100 per cent share holders of the company through Mogran Credits Pvt Ltd, it alleged."Rana Kapoor obtained undue pecuniary advantage from DHFL in the matter of investment in the debentures of DHFL by Yes Bank, through the companies held by his wife and daughters," the FIR alleged.The ED investigating officer had recorded Kapoor's statement under PMLA when he was first interrogated on Friday night at his upscale residence in 'Samudra Mahal' complex in Worli area here.He was brought to the ED office on Saturday noon for a fresh round of questioning.According to officials, Kapoor's wife Bindu and daughters - Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor - are allegedly linked to some companies to which the suspected "proceeds of crime" have been traced.The central agency is also probing Kapoor's role in connection with the disbursal of loans to some corporate entities and the subsequent alleged kickbacks reportedly received in his wife's accounts.Other alleged irregularities are also under the agency's scanner including the one related to the alleged PF fraud in the Uttar Pradesh power corporation, they added.The CBI has recently taken over investigation into the Rs 2,267-crore Employees' Provident Fund fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in Dewan Housing Finance Corporation (DHFL).The Reserve Bank of India had on Thursday imposed a moratorium on Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in Yes Bank under a government-approved bailout plan. NES/ABS AB RT ABHABH

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