The much awaited stimulus package is announced by RBI to augment domestic and forex liquidity and to ensure that credit continues to flow to productive sectors of the economy. Following measures have been taken:
Reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
Effects:
Reduction in the CRR will inject additional liquidity of around Rs. 20,000 crore to the financial system. It is expected that the reduction in the policy interest rates and the CRR will further enable banks to provide credit for productive purposes at appropriate interest rates. Cumulative amount of primary liquidity made available to the financial system through various measures initiated by the Reserve Bank is over Rs. 3,00,000 crore.
Taking the signal from the reductions in the repo and reverse repo rates, all public sector banks and several private sector and foreign banks have reduced their benchmark prime lending rates (BPLRs). Notably, the top five public sector banks have reduced their BPLRs from a range of 13.75-14.00 per cent as on October 1, 2008 to a range of 12.00-12.50 per cent presently. These rates are likely to reduce further to bolster demand for home loans, which is a good sign for reality sector.
The monetary stimulus package will be beneficial for corporate bonds. Buoyant liquidity as evident from the LAF windows, with banks parking over Rs. 60000 crores, followed with rate cuts will propel contraction in the shorter end of the rate spectrum, which will provide opportunity for short term funds as well as income funds.
Friday, January 2, 2009
RBI - cuts CRR by 50bps; repo & reverse repo by 100bps
The much awaited stimulus package is announced by RBI to augment domestic and forex liquidity and to ensure that credit continues to flow to productive sectors of the economy. Following measures have been taken:
Reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
Effects:
Reduction in the CRR will inject additional liquidity of around Rs. 20,000 crore to the financial system. It is expected that the reduction in the policy interest rates and the CRR will further enable banks to provide credit for productive purposes at appropriate interest rates. Cumulative amount of primary liquidity made available to the financial system through various measures initiated by the Reserve Bank is over Rs. 3,00,000 crore.
Taking the signal from the reductions in the repo and reverse repo rates, all public sector banks and several private sector and foreign banks have reduced their benchmark prime lending rates (BPLRs). Notably, the top five public sector banks have reduced their BPLRs from a range of 13.75-14.00 per cent as on October 1, 2008 to a range of 12.00-12.50 per cent presently. These rates are likely to reduce further to bolster demand for home loans, which is a good sign for reality sector.
The monetary stimulus package will be beneficial for corporate bonds. Buoyant liquidity as evident from the LAF windows, with banks parking over Rs. 60000 crores, followed with rate cuts will propel contraction in the shorter end of the rate spectrum, which will provide opportunity for short term funds as well as income funds
Reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
Effects:
Reduction in the CRR will inject additional liquidity of around Rs. 20,000 crore to the financial system. It is expected that the reduction in the policy interest rates and the CRR will further enable banks to provide credit for productive purposes at appropriate interest rates. Cumulative amount of primary liquidity made available to the financial system through various measures initiated by the Reserve Bank is over Rs. 3,00,000 crore.
Taking the signal from the reductions in the repo and reverse repo rates, all public sector banks and several private sector and foreign banks have reduced their benchmark prime lending rates (BPLRs). Notably, the top five public sector banks have reduced their BPLRs from a range of 13.75-14.00 per cent as on October 1, 2008 to a range of 12.00-12.50 per cent presently. These rates are likely to reduce further to bolster demand for home loans, which is a good sign for reality sector.
The monetary stimulus package will be beneficial for corporate bonds. Buoyant liquidity as evident from the LAF windows, with banks parking over Rs. 60000 crores, followed with rate cuts will propel contraction in the shorter end of the rate spectrum, which will provide opportunity for short term funds as well as income funds
Heads of Income
Heads of Income
Under chapter 4 of Income Tax Act, 1961 (Section 14), income of a person is calculated under various defined heads of income. The total income is first assessed under heads of income and then it is charged for Income Tax as under rules of Income Tax Act. According to Section 14 of Income Tax Act, 1961, there are following heads of income under which total income of a person is calculated:
Heads of Income:
Salary
House Property
Profit in Business/ Profession
Capital gain
Heads of Income: Other Sources
Every type of income comes under a specified heads. But there are few incomes, which don't come under any of following heads:
Salary
House Property
Profit In Business/ Profession
Capital Gains
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So under Section 56(2) of Income Tax Act,1962 all such income comes in this heads of income. There are following incomes which are taxed under this heads
Income coming as a dividend paid by a company to an assessee
Income coming from winning in lottery, crossword puzzles, races, card games, gambling or other such sports
Income coming as an amount received by assessee from his employer as a fund for welfare of employee
Income as an interest on securities
Income coming by letting on hire machinery, plant, furniture, building or other goods Income coming from insurance policy
Thursday, January 1, 2009
Snapshots of 2008 : the world of stock markets
Snapshots of 2008 As we know 2008 is a very bad year in the world of stock markets across the world why it so worst let us know the eye popping facts.
1. stock markets overall loss 40.00 lakh crores
2. More than 1000 companies are below their book value
3. IPOs collected 19,360 crores only, majority of IPOs flop
4. Rel power created world record in collecting 11,700 crore . total issue money is nearly 7.5 lakh crore which is created tremors in other side world.
5. Current midcap capitalization is only 4 lakh crore
6. Small cap is just 1.15 lakh crore (see how it battered )
7. Liquid funds gone negative because of (ABS & MBS )
8. Total stock market cap today is only 20.00 lak crore
9. mutual funds AUM is less than 4.00 lakh crore
10. more than 3600 hedge funds have gone bust in this year across the world
11. US sub prime no need of explanation u know better (FEd bank, japan, USA banks interest 0) now
12.US big scam is “Medoff “more than 50.00 billion.
What is this scam it is called ponji scheme (jantar mantar scheme ) virtually speaking VINIVINC similar , because of this scam HSBC bank lost almost 2.00 billion dollars Jurassic park director spilberg’s charity company have gone bankruptcy many more charities , hospitals, trusts have gone.
What is ABS Asset backed securities (next mail will discuss elaborately)
What is MBS Mortgage backed securities These instruments are very dangerous because of this US monoliths have gone bankruptcy
Did u know how many crores of ABS & MBS are there in the mutual fund industry?
60,000 crores of (time bombs) Which are all the mutual funds are holding will tell u in next entry with % of holding Please share your valuable suggestions which will be a great help for new comers, let us encourage them Share your knowledge it is a way to achieve immortality
1. stock markets overall loss 40.00 lakh crores
2. More than 1000 companies are below their book value
3. IPOs collected 19,360 crores only, majority of IPOs flop
4. Rel power created world record in collecting 11,700 crore . total issue money is nearly 7.5 lakh crore which is created tremors in other side world.
5. Current midcap capitalization is only 4 lakh crore
6. Small cap is just 1.15 lakh crore (see how it battered )
7. Liquid funds gone negative because of (ABS & MBS )
8. Total stock market cap today is only 20.00 lak crore
9. mutual funds AUM is less than 4.00 lakh crore
10. more than 3600 hedge funds have gone bust in this year across the world
11. US sub prime no need of explanation u know better (FEd bank, japan, USA banks interest 0) now
12.US big scam is “Medoff “more than 50.00 billion.
What is this scam it is called ponji scheme (jantar mantar scheme ) virtually speaking VINIVINC similar , because of this scam HSBC bank lost almost 2.00 billion dollars Jurassic park director spilberg’s charity company have gone bankruptcy many more charities , hospitals, trusts have gone.
What is ABS Asset backed securities (next mail will discuss elaborately)
What is MBS Mortgage backed securities These instruments are very dangerous because of this US monoliths have gone bankruptcy
Did u know how many crores of ABS & MBS are there in the mutual fund industry?
60,000 crores of (time bombs) Which are all the mutual funds are holding will tell u in next entry with % of holding Please share your valuable suggestions which will be a great help for new comers, let us encourage them Share your knowledge it is a way to achieve immortality
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