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Markets regulator <keyword id="19901201" type="General" weightage="20" keywordseo="Sebi" source="keywords">SEBI</keyword> has proposed expanding the <keyword id="22367248" type="General" weightage="20" keywordseo="sustainable-finance-framework" source="keywords">sustainable finance framework</keyword> in the <keyword id="20922662" type="General" weightage="20" keywordseo="securities-market" source="keywords">securities market</keyword> by introducing a new category of financial instruments. This category will include <keyword id="20518791" type="General" weightage="20" keywordseo="Social-Bonds" source="keywords">social bonds</keyword>, <keyword id="22623575" type="General" weightage="20" keywordseo="Sustainable-Bonds" source="keywords">sustainable bonds</keyword>, and <keyword id="22623576" type="General" weightage="20" keywordseo="Sustainability-linked-Bonds" source="keywords">sustainability-linked bonds</keyword>, in addition to the current <keyword id="22819966" type="General" weightage="20" keywordseo="green-debt-securities" source="keywords">green debt securities</keyword>. It aims to provide issuers with flexibility in raising funds for projects that align with environmental, social, and governance (ESG) objectives. In a consultation paper released on Friday, SEBI proposed that issuers, in addition to existing green debt securities, should be allowed to raise funds through issuance of social bonds, sustainable bonds, and sustainability-linked bonds. These bonds will collectively be known as ESG Debt Securities. This will enable issuers to raise money for more sustainable projects, assisting in closing the funding gap for the Sustainable Development Goals. SEBI said it received representations from market participants including the Confederation of Indian Industry to expand the scope of the regulatory framework pertaining to sustainable finance to include social bonds, in addition to existing green debt securities as a mode of raising sustainable finance, in line with global practices. As per the consultation paper, SEBI said, it "proposed to introduce the concept of sustainable securitised debt instruments for the purpose of providing originators of the underlying credit facilities which are within such international or domestic frameworks for sustainable finance, and thereby provide investors as well an opportunity to participate in the sustainable securitised debt instruments". The consultation paper also addressed the initial and continuous disclosures for sustainable securitised debt instruments that would be based on international frameworks. Initial disclosures could be made in the offer document for the securities, while continuous disclosures might be included in annual reports or other mandated formats. The markets watchdog also suggested that issuers of ESG debt securities and sustainable securitised debt instruments appoint an independent external reviewer or certifier, to facilitate transparency and credibility. The review could take various forms including, second-party opinions, verification, certification, or scoring/ rating. The <keyword id="19901204" type="General" weightage="100" keywordseo="Securities-and-Exchange-Board-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Securities and Exchange Board of India" meta.hostid="261" meta.entityid="Securities and Exchange Board of India">Securities and Exchange Board of India</keyword> (SEBI) has invited comments and suggestions from the public on the consultation paper by September 6.

SEBI proposes expansion of sustainable financial framework in securities market

<keyword id="19896016" type="General" weightage="20" keywordseo="New-Delhi" source="keywords">New Delhi</keyword>: The 54th Meeting of the <keyword id="21275205" type="General" weightage="20" keywordseo="Goods-and-Services-Tax-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="Goods and Services Tax Council" meta.hostid="261" meta.entityid="Goods and Services Tax Council">Goods and Services Tax Council</keyword> or GST Council, will be held on 9th September 2024 in New Delhi, the GST Council said in a post on social media platform "X" on Tuesday. On June 22, <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> Nirmala Sitharaman said that the next meeting of the GST Council will take place in mid to late August. The aim of this meeting will be to discuss the pending issues of the last meeting. The council is expected to discuss rate rationalisation and compliance, among others. The GST Council, consisting of the Union Finance Minister and representatives from all States and Union Territories, was established to make decisions on various aspects of GST, including <keyword id="20452955" type="General" weightage="20" keywordseo="tax-rates" source="keywords">tax rates</keyword>, exemptions, and administrative procedures. It played a crucial role in shaping the GST framework in India. The last meeting of the GST Council was held on 22 June 2024 this year. During the meeting, the council recommended relaxation to taxation, Input Tax Credit (ITC) claims and demand notices. The GST Council proposes exemptions for specific services offered by Indian Railways to the general public, as well as for intra-railway transactions. During the 53rd meeting of the council, it proposed an exemption for specific services offered by Indian Railways to the general public, as well as for intra-railway transactions. The sale of platform tickets and services such as retiring rooms, waiting rooms, cloakroom facilities, and battery-operated car services are now exempt from GST. The 53rd council meeting was marked by several key decisions aimed at easing the compliance burden and providing relief to taxpayers. "Today's <keyword id="20115983" type="General" weightage="100" keywordseo="GST-Council-meeting" source="keywords">GST Council meeting</keyword> has taken a lot of decisions on trade facilitation, easing compliance burden and relief to taxpayers in terms of compliance easing out," the Finance Minister had said. The GST Council recommended waiving interest penalties on demand notices issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20. The Council, in its June 22 meeting, approved an extension for availing input tax credit (ITC) on any invoice or debit note. To curb government litigation, the Council has recommended setting monetary thresholds for filing appeals by departments: Rs 20 lakh for the GST appellate tribunal, Rs 1 crore for high courts, and Rs 2 crore for the Supreme Court. In a move to assist small taxpayers, the Council, in its last meeting, extended the deadline for furnishing returns from April 30 to June 30 for the fiscal year 2024-25 and subsequent years. The Council, in its last meeting, recommended the phased rollout of biometric-based Aadhaar authentication for GST registration applicants across India. The Council recommended a uniform GST rate of 12 per cent on all milk cans, regardless of their material (steel, iron, or aluminium), to eliminate disputes. The Finance Minister, during the last GST meeting, reiterated the central government's intent to bring petrol and diesel under the Goods and Services Tax (GST) framework. She highlighted that the groundwork for this inclusion was laid during the initial implementation of GST and emphasized that the decision now lies with the state governments. The central government has long maintained that incorporating petrol and diesel into GST would streamline tax rates and potentially reduce prices for consumers.

54th GST Council meeting to take place on September 9 in New Delhi

<ul><li><keyword id="3117450" type="General" weightage="20" keywordseo="HDFC-Capital" source="Orion">HDFC Capital</keyword> has raised $376 million under the second scheme of <keyword id="16012698" type="General" weightage="20" keywordseo="HDFC-Capital-Affordable-Real-Estate-Fund-3" source="Orion">HDFC Capital Affordable Real Estate Fund -3</keyword> (<keyword id="15003778" type="General" weightage="20" keywordseo="H-CARE-3" source="Orion">H-CARE 3</keyword>).</li><li>H-CARE 3 is a <keyword id="16012699" type="General" weightage="20" keywordseo="category-II-alternative-investment-fund" source="Orion">category II alternative investment fund</keyword> (AIF) that focuses on providing long-term investment in affordable and mid-income housing projects.</li><li>In addition, the real estate private equity arm of HDFC Group will also invest in technology companies engaged in the affordable housing ecosystem.</li><li>Abu Dhabi Investment Authority (ADIA), through a wholly-owned subsidiary, is the primary investor in H-CARE 3 schemes 1 and 2.</li></ul> HDFC Capital, a subsidiary of top mortgage lender Housing Development Finance Corporation, has raised $376 million under the second scheme of HDFC Capital Affordable Real Estate Fund -3 (H-CARE 3). H-CARE 3 is a category II alternative investment fund (AIF) that focuses on providing long-term, flexible funding across the lifecycle of affordable and mid-income housing projects, including early-stage funding. HDFC Capital is the investment manager to HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), HDFC Capital Affordable Real Estate Fund 2 (H-CARE 2) and HDFC Capital Affordable Real Estate Fund 3 (H-CARE 3). All these funds combine to create a $ 3.1 billion platform targeting the development of affordable and mid-income housing in India. Abu Dhabi Investment Authority (ADIA), through a wholly-owned subsidiary, is the primary investor in H-CARE 3 schemes 1 and 2. “Despite the recent headwinds in the global macro landscape, I continue to be optimistic about the demand for homes in India. As the pivot of global growth shifts, India is envisaged to remain amongst the fastest growing major economies,” said Deepak Parekh, chairman, HDFC. “And housing will play an even more important role as a catalyst for growth. HDFC Capital has been one of the pioneers of investing in affordable and mid-income housing projects in India.” Parekh further added that, “With the support of leading global investors like ADIA and partnerships with trusted developers, the HDFC Capital platform is well on its way to achieve its medium-term goal of funding one million affordable homes in India.” In addition, the real estate private equity arm of HDFC Group will also invest in technology companies (construction technology, fin-tech, sustainability-tech etc.) engaged in the affordable housing ecosystem, the company said. “At HDFC Capital, our vision is to finance the development of the affordable housing ecosystem in India and provide a seamless platform for all stakeholders including global investors, developers, and vendors to access financing and technology innovations to develop sustainable and smart affordable homes,” said Vipul Roongta, MD &amp; CEO at HDFC Capital. HDFC Capital’s target is to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships and technology, whilst focusing on sustainability. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-credit-worthiness-to-be-stable-in-2023-but-upcoming-elections-could-keep-social-spending-elevated-moodys/articleshow/96851926.cms">India’s credit worthiness to be stable in 2023, but upcoming elections could keep social spending elevated: Moody’s</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/gautam-adani-aap-ki-adalat-interview-dhirubhai-ambani-is-my-role-model-mukesh-ambani-a-very-good-friend/articleshow/96828407.cms">Dhirubhai Ambani is my role model and Mukesh Ambani a very good friend, says Gautam Adani</a>

HDFC Capital raises $376 million under alternative investment fund for affordable housing; ADIA is primary investor

<a href="https://www.businessinsider.com/financing-a-sustainable-future-2022"></a> <div type="image" title="Headshot of Esohe Denise Odaro, IFC’s head of investor relations and sustainable finance" height="1692" width="2250" msid="91625716" hostid="261"></div><ul class="summary-list"><li>Social bond issuance reached nearly $200 billion last year, from a little over $10 billion in 2019.</li><li>These bonds can tackle societal inequities like financing affordable housing or lending to women-owned businesses.</li></ul>For people in banking and finance, the subject of <keyword id="1281116" type="General" weightage="60" keywordseo="social-bonds" source="Orion">social bonds</keyword> can induce mixed feelings. Investors may feel good about knowing their money is going to worthy causes, while skeptics wonder whether this debt is another way for companies to present as good corporate citizens. Conflicting opinions aside, there's no doubting the numbers. Social bonds, which support initiatives like affordable housing or women-owned businesses, have soared since the global pandemic has encouraged companies to help tackle societal inequalities. Roughly $192 billion worth of social bonds were priced globally last year, on top of $165 billion in 2020, according to Refinitiv data supplied to Insider. Before that, social bonds barely registered above $10 billion a year, the data showed. "The applicability of the social bond has come to shine in dire circumstances. And the pandemic has definitely helped kick that off," Esohe Denise Odaro, the <a href="https://www.ifc.org/">International Finance Corporation</a>'s head of investor relations and <keyword id="8481269" type="General" weightage="60" keywordseo="sustainable-finance" source="Orion">sustainable finance</keyword>, told Insider. "It takes real-life situations to educate people as to how to use it." The IFC played a big part in social bonds, both as an investor and an issuer. Last month, IFC invested in <keyword id="303353" type="General" weightage="60" keywordseo="sub-saharan-africa" source="Orion">sub-Saharan Africa</keyword>'s first-ever gender bond by Tanzania's NMB Bank. The $32 million deal got a $10 million anchor investment from IFC through its Banking on Women business initiative. Proceeds from the issuance — dubbed a 'Jasiri Bond' — will finance more than 2,000 women-owned small businesses in Tanzania. Back in January, the multilateral bank issued its own CA$500 million ($384 million) social bond to support low-income communities, women entrepreneurs, and small businesses in emerging markets. <h2>The emerging framework for social bonds </h2>While social bonds have taken off, they're still in their infancy, especially compared to mature ESG debt instruments like green bonds, which debuted a decade ago. For issuers, determining what can be classified as a social project can be confusing, and sometimes expose companies to extra scrutiny from market experts that will ensure these issuers come good on their social promises, Odaro said. "A lot of businesses are set up as an enterprise, not a social enterprise," Odaro said. "There's this fear of putting a spotlight on your business through issuing a social bond. And if your company's strategy is not going in the right direction, you're opening yourself up to a lot of market scrutiny." That fear, in part, comes from the reporting that social-bond issuers need to complete to ensure the proceeds from the bond are going to where they're intended. For example, the <a href="https://www.ifc.org/wps/wcm/connect/c6f3d4c9-3928-4f89-9dd3-13c4d9c98520/FY22+Social+Bonds+Factsheet.pdf?MOD=AJPERES&amp;CVID=nZB2mLK">IFC's Social Bond Fact Sheet</a> comprises strict lending requirements to women-owned businesses or lending to projects that meet the criteria outlined in the Social Bond Principles. The <a href="https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/social-bond-principles-sbp/">Social Bond Principles</a>, defined by the International Capital Markets Association, require issuers to keep an up-to-date list of projects where the proceeds will go. The borrowers also need to update this information on an annual basis. It's early days for social debt instruments, and while there will be inevitable growing pains, they're proving to be ideal for issuers at the earlier stages of their ESG journeys because of their simplicity. Unlike sustainability-linked bonds, which allow issuers to put the proceeds to an array of needs, social bonds are ring-fenced for a specific objective, which can make the educational process much easier for the issuer and investor. Not only is this ideal for the issuer, but investors can take comfort in knowing that the bond's proceeds are allocated toward initiatives that meet social bond frameworks. "Social bonds are better suited to early-stage ESG adopters," Odaro said. "And if you're concerned about the use of proceeds, you don't have to have too big of a concern because of the explicit restrictions that proceeds go toward pre-determined projects."

Social bonds are on the rise, but issuers and investors are still learning the merits of this new-age debt instrument

<ul class="summary-list"><li><keyword id="99719" type="UNKNOWN" weightage="60" keywordseo="joe-biden" source="Orion">Joe Biden</keyword> released a $1.75 trillion spending framework for his Build Back Better agenda.</li><li>It's far less than many Democrats wanted to spend to provide new social benefits for Americans.</li></ul>The White House on Thursday <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/10/28/build-back-better-framework/">unveiled a $1.75 trillion framework</a> for President Joe Biden's social-spending plan, dramatically curtailing its economic ambitions in an effort to appease the centrist holdouts Sens. <keyword id="11930702" type="UNKNOWN" weightage="60" keywordseo="joe-manchin" source="Orion">Joe Manchin</keyword> of West Virginia and <keyword id="11930701" type="UNKNOWN" weightage="60" keywordseo="kyrsten-sinema" source="Orion">Kyrsten Sinema</keyword> of Arizona and break a logjam in negotiations bogging down the party.<a href="https://www.cnn.com/2021/10/28/politics/president-joe-biden-economic-agenda/index.html">CNN first reported the framework</a>, which Biden is set to speak about later Thursday. It includes investments in childcare, housing, and climate, among other things.The agreement would encompass $1.75 trillion in spending over 10 years - half of Biden's initial proposal for the Build Back Better plan. Some key provisions include:<ul><li>Universal preschool</li><li>One-year expanded <keyword id="11964084" type="UNKNOWN" weightage="60" keywordseo="child-tax-credit" source="Orion">child tax credit</keyword></li><li>Four-year extension of Affordable Care Act health-insurance subsidies</li><li>Tax breaks to encourage a transition to cleaner energy</li><li>Investments in affordable housing</li></ul>The plan would be paid for with a collection of tax hikes on rich Americans. Measures include a 15% corporate minimum tax, a tax on companies that buy back their own stock to boost share prices, and a new 5% surtax for Americans earning at least $5 million in income.The sum is far less than most Democrats had envisioned spending on a package that's supposed to be the centerpiece of Biden's economic agenda. Progressives, chiefly led by Sen. <keyword id="11896860" type="UNKNOWN" weightage="60" keywordseo="bernie-sanders" source="Orion">Bernie Sanders</keyword>, initially <a href="https://www.businessinsider.com/bernie-sanders-drafts-6-trillion-nfrastructure-plan-democrats-gop-reconciliation-2021-6">laid out a $6 trillion budget</a> in June. Less than a month later, Senate Democrats struck a deal on a $3.5 trillion budget plan, which <a href="https://www.businessinsider.com/house-democrats-advance-spending-plan-showdown-pelosi-moderates-ilhan-omar-2021-8">they advanced in August</a> by relying on only Democratic votes over unanimous Republican opposition.But the $1.75 trillion plan reflects the painful sacrifices Democrats are making to win support from Manchin and Sinema, a pivotal pair of holdouts who they can't lose in the 50-50 Senate. Manchin has tried to limit the reach of new social-benefit programs, saying they could cause American society to slip into an "entitlement mentality."Some priorities, like <a href="https://www.businessinsider.com/democrat-andy-levin-free-community-college-student-debt-reconciliation-2021-10">tuition-free community college</a>, were jettisoned because of opposition from Manchin and Sinema. Other provisions, like expanding Medicare so it would cover dental, vision, and hearing, have been pared down, with just hearing covered."Does Sen. Manchin really believe that seniors are not entitled to digest their food and that they're not entitled to hear and see properly?" Sanders <a href="https://www.businessinsider.com/bernie-sanders-pissed-senate-moderates-manchin-sinema-reconciliation-infrastructure-2021-10">said earlier this month</a> about the proposed Medicare expansion. "Is that really too much to ask in the richest country on Earth - that elderly people have teeth in their mouth and can see and can hear?"The plan also dropped a provision that would have empowered the federal government to negotiate prescription-drug prices, long a top Democratic priority, but ran into opposition from a small group of House and Senate Democrats.It would renew bulked-up child-tax-credit payments for only a year. House Democrats initially sought a four-year extension.The latest price tag is far closer to centrists' demands than those of Sanders. While provisions like universal preschool and affordable childcare remain, it doesn't appear that paid family and medical leave has made it in. <a href="https://twitter.com/eleanor_mueller/status/1453458747192451078">Politico first reported</a> on Wednesday night that the leave programs were imperiled."It is still a little inconceivable to me that after the last 18 months - and everything we saw during the course of the pandemic - that we are hearing that Congress is going to leave paid leave for another day," Laura Narefsky, the counsel on education and workplace justice at the National Women's Law Center, <a href="https://www.businessinsider.com/senate-democrats-strip-family-medical-leave-from-spending-package-2021-10">previously told Insider</a>.Last week, <a href="https://www.businessinsider.com/biden-concedes-trump-tax-cuts-sinema-manchin-2021-10">Biden conceded</a> that unwinding part of President Donald Trump's tax cuts for corporations and high-earning individuals was probably out because Sinema was opposed. Instead, the bill would be financed through other measures, including enhanced IRS enforcement and a surtax on multimillionaires and billionaires. It does not appear that <a href="https://www.businessinsider.com/senate-democrats-billionaires-tax-plan-elon-musk-jeff-bezos-biden-2021-10">a tax on billionaires' income</a> - announced Wednesday morning and <a href="https://www.businessinsider.com/democrats-ditch-billionaire-tax-proposal-says-house-tax-writer-report-2021-10">seemingly jettisoned</a> by Wednesday afternoon - is included.

Biden releases slimmed-down $1.75 trillion spending framework, cutting social-benefits plan by over half

<ul class="summary-list"><li><keyword id="12650671" type="UNKNOWN" weightage="60" keywordseo="rational-choice-theory" source="Orion">Rational choice theory</keyword> is a framework that states that individuals behave according to their own self-interests.</li><li>Adam Smith created the foundation of rational choice theory using a metaphor known as the 'invisible hand' to explain outcomes based on self-interest.</li><li>The theory assumes there are 'rational actors' and doesn't account for cultural nuance, emotions, or unconscious behavior.</li></ul>Every day, you make many decisions that affect your life and finances. Rational choice theory proposes that individuals work as 'rational actors' and base decisions on what makes the most sense economically and for their personal interests. This theory is also sometimes referred to as choice theory or rational action theory and helps predict certain behavioral outcomes. <h2>What is rational choice theory?</h2>Rational choice theory is a framework used in economics and other fields of study that proposes that individuals make decisions that are based on maximizing their own benefits. The theory suggests that people perform a cost-benefit analysis and make decisions based on their personal interests. "Rational choice theory assumes that individuals will carefully evaluate all decisions, weighing the costs and benefits of each potential path forward, and then choosing what they believe will maximize the benefit to themselves," says <a href="https://www.linkedin.com/in/nicholas-creel-23bb5572/">Nicholas B. Creel</a>, M.A, J.D., LL.M., Ph.D. and assistant professor of business law at Georgia College and State University.Economist Adam Smith originally came up with the foundation for rational choice theory as expressed in "<a href="https://www.econlib.org/library/Smith/smWN.html">An Inquiry into the Nature and Causes of the Wealth of Nations</a>" in 1776. He used the term 'invisible hand' as a metaphor to illustrate the hidden forces in economic behavior, such as pursuing one's own self-interest. As a whole, rational choice theory is used in economics to predict particular outcomes and behaviors. It's based on the idea that people will make decisions that benefit them and are based on their preferences. The theory proposes that individuals consider monetary gains as well as losses in their decision-making. However, many people strive toward avoiding any losses rather than seek out gains in something referred to as "loss aversion."Note: Rational choice theory supposes that people behave rationally. However, this isn't in line with all other theories. Psychodynamic theory by Freud suggests that human behavior is driven by unconscious desires and that childhood events have a great impact on our behavior.<h3>Example of rational choice theory being used</h3>When it comes to predicting consumer behavior, businesses and economists alike use rational choice theory as a guideline to assume how consumers will behave. This can be a powerful tool for businesses but also has drawbacks. One real-world application is how one business uses and views rational choice theory: "As a company that uses rational choice theory, you'll be trying to cater to an individual's best interest to maximize their benefit and satisfaction," explains Mike Nemeroff, CEO and co-founder of <a href="https://www.rushordertees.com/">Rush Order Tees</a>. "It is based on unifying consumer behavior as an individual with a stable income who has several different options and performs a cost-benefit analysis to be able to come to a coherent decision." As part of that process, consumers consider monetary gains and losses as well as prospective value as it relates to their interests. So while one consumer might opt for the lowest price, another might base their decisions on long-term value. "For example, rational choice theory in the apparel industry can be choosing to buy a high-end branded piece of clothing that is more expensive with the rational thought that it is durable and provides better quality and will only need to be purchased once as it will last longer," says Nemeroff. "Rather than buying a cheaper piece of clothing that will ruin faster and need to be replaced several times making it more expensive."<h2>How is rational choice theory applied?</h2>Rational choice theory is used in a variety of different fields to make predictions around human behavior. <ul><li>In business as well as the economic sectors, it's used to predict consumer purchasing.</li><li>In psychology and sociology, it's used to predict how and why people behave a certain way. </li><li>In addiction management, rational choice theory is used to explain the inherent motivations by using or consuming a substance and looks for alternatives that can provide similar outcomes. </li><li>In the political sector, it's used to predict voting patterns and explain how and why a politician behaves in a certain way. </li></ul>Though the theory may have started as a way to explain consumer behavior, it's now used in various fields as a way to offer insight into human behavior and predict certain outcomes. <h2>What is the invisible hand?</h2>The idea of the "invisible hand" is the foundation for rational choice theory. "The invisible hand is a concept first discussed by Adam Smith. The core idea behind it is that each individual acts in their own best self interest in a way that maximizes their welfare, better so than any outsider acting on their behalf could," says Creel.The idea is used as a metaphor to explain why we behave the way we do and that we are guided by self interest, even if we're not aware of it. When it comes to investing and finance, rational choice theory supposes that people will make decisions that maximize benefits and minimize losses. <h2>Pros and cons of the rational choice theory </h2>Rational choice theory is used in a wide range of fields for different reasons. Though the theory can be useful and offer important insights, it also lacks some nuance as well. "[Rational choice theory] helps a business create a buying persona and understand consumer behavior based on their 'rational choices,'" says Nemeroff. But also that isn't the whole picture. According to Nemeroff rational choice theory also "oversimplifies and makes a lot of assumptions which can put a business at risk. It is usually better to derive actions and results based on actual data."Some pros and cons of rational choice theory are: <table><tbody><tr><td>Pros</td><td>Cons </td></tr><tr><td>It's a useful tool to explain individual and collective behavior in economics, business, and more. </td><td>It assumes that people are always 'rational,' which doesn't account for emotions or unconscious behavior. </td></tr><tr><td>It provides a framework of understanding for behavior that may appear irrational, but in the end is self-serving. </td><td>It oversimplifies human behavior, when everything isn't explained with logic. </td></tr><tr><td>It can be used to predict outcomes and behavior. </td><td>It doesn't provide cultural context or nuance regarding difference and may appear biased. </td></tr></tbody></table>"​​The biggest strength of rational choice theory is that it allows us to simplify what we know is an incredibly complex human behavior," says Creel. Creel explains that though it can simplify things — it does just that — simplifies it to the point where there is a lack of nuance, especially as it relates to cultural context and difference. "Rational choice theory assumes that human behavior would be universally explained by it, so the sort of variation shouldn't happen if it was a sound explanation of how we as a species make our decisions," he says. Note: Rational choice theory looks at the utility or overall benefit and satisfaction gained by a particular purchase.<h2>The financial takeaway</h2>Rational choice theory is a way to look at the motivations and behavior of individuals and society. On the surface, it makes sense that many of our choices are based on self-interest and maximizing benefits while reducing costs. This theory can be applied in many ways in different fields of study to predict certain results. However, the theory doesn't account for important nuances as it relates to emotions, unconscious behavior, and more. Despite this, rational choice theory is still used in a range of fields and can be useful for predicting consumer behavior.

Rational choice theory: A school of thought that predicts economic and social behaviors

The <keyword id="47209" type="General" weightage="100" keywordseo="finance-ministry" source="Orion">Finance Ministry</keyword> will move ahead with the already-announced and planned privatisation of state-owned companies in the next fiscal, and the chances of the new addition to that list of CPSEs in the <keyword id="6358021" type="General" weightage="80" keywordseo="budget" source="Orion">Budget</keyword> for 2023-24 is unlikely, sources said. The disinvestment target outlined in the Budget for the next fiscal is likely to be a scaled-down and realistic one, as the budgeted PSU sell-off target is going to be missed for the fourth year in a row this fiscal. In the current fiscal, the government had budgeted to collect Rs 65,000 crore from disinvestment. However, so far, it has realised only Rs 31,106 crore by selling minority stakes in public sector companies. After tasting success in privatising loss-making Air India in 2021, the progress of PSU sell-off has not been very impressive over the past year, and experts say that with the general election around the corner in 2024, no major disinvestment announcement is expected in this Budget either. "The plan is to move ahead with the strategic sale of the companies for which the Cabinet approval is already in place," an official told PTI. This means that the government will go ahead with the privatisation of companies like Shipping Corporation of India, NMDC Steel Ltd, BEML, HLL Lifecare, Container Corporation of India and RINL or <keyword id="221747" type="General" weightage="50" keywordseo="vizag-steel" source="Orion">Vizag Steel</keyword>, as well as the big ticket IDBI Bank. Considering that strategic sale or privatisation takes at least a year, and in some cases even more, to conclude, a high budgeted disinvestment target may not be achievable. Nangia Andersen LLP, Partner- Government and Public Sector Advisory, Suraj Nangia said: "The privatization process often takes time, depending on the type of privatization and the economic, social, and political context, emphasizing the importance of a medium-term plan, a solid regulatory framework, and competitive markets". "A multi-year strategic plan for privatisation can be formulated to ensure there is a concrete timeline and a well-designed sequencing and strategy for privatisation," Nangia said. EY India, <keyword id="665532" type="General" weightage="80" keywordseo="associate-partner" source="Orion">Associate Partner</keyword>, Tax and Economic Policy Group, Rajnish <keyword id="6356160" type="General" weightage="80" keywordseo="gupta" source="Orion">Gupta</keyword> said the privatisation programme may see an uptick after the 2024 general elections. "Maybe this year's Budget is going to be a little muted and we may see announcements around disinvestment and sale of minority stakes. After 2024, we may see an acceleration in the privatisation programme again," Gupta said. In the past year, the government had called off a couple of strategic sales, including BPCL, due to a lack of investor interest. Experts feel that the private sector will be more keen on buying state-owned companies if their deal is sweetened with tax incentives and regulatory exemptions. Nangia said private sector participation is more likely to be successful when the required information is accurate, such as that of the operating performance, the condition of assets etc. "An important factor considered by investors as they decide on bidding in privatisation programme is a 'predictable regulatory environment and absence of undue administrative impediments to business in general'. Other relevant factors include sufficient and accessible resources, including the presence of relevant infrastructure and human capital, tax incentives, financial subsidies and regulatory exemptions," Nangia added. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/budgeting-for-climate-change/articleshow/97378027.cms">Budgeting for the fifth C</a> <a href="https://www.businessinsider.in/business/news/an-app-that-wants-to-turn-fear-of-stock-markets-into-fun-raises-75-lakh-from-sharks/articleshow/97378121.cms">An app that wants to turn fear of stock markets into fun raises ₹75 lakh from sharks</a> <a href="https://www.businessinsider.in/india/news/steps-taken-in-subsidence-hit-joshimath-inadequate-declare-himalayas-eco-sensitive-zone-say-experts/articleshow/97411665.cms">Steps taken in subsidence-hit Joshimath inadequate, declare Himalayas eco-sensitive zone, say experts</a>

Finance Ministry to stick to privatisation of already announced CPSEs next fiscal

New Delhi, May 28 () The country's largest car maker Maruti Suzuki India on Thursday said it has partnered with HDFC Bank Ltd to offer flexible finance schemes for new car buyers. The schemes include flexi equated monthly installment (EMI) options under which a customer can avail low EMI for three months every year, up to 100 per cent on-road funding and installments starting from Rs 899 per month, per lakh, for the first six months, Maruti Suzuki India (MSI) said in a statement. Commenting on the partnership, MSI Executive Director Marketing and Sales Shashank Srivastava said, "this is an advantage to buyers who may face resource crunch amidst the COVID-19 lockdown." He further said, "new car buyers can select from a host of schemes that will offer low down payment options and low EMIs. This would particularly help customers in the entry level segments." In addition, digital disbursement makes it more convenient for customers in current times, Srivastava added. HDFC Bank Country Head for Retail Assets Arvind Kapil said the partnership would provide customized offerings to customers particularly during the ongoing COVID-19 pandemic. "These are challenging times for the country and we believe it's the collective responsibility of all stakeholders to provide flexible offerings to customers," he added. In view of the current social distancing norms and the need to reduce physical documentation, HDFC Bank would also be offering Maruti Suzuki customers the option of a post-approval digital disbursement, the statement said. RKL DRR DRR

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