JM Financial Services unveils its latest offering, titled “Investories”

JM Financial Services Ltd. the dedicated brokerage services arm of JM Financial Group, today unveiled its latest offering, titled “Investories-Anecdotes from the Financial World”

The book was launched with great fanfare in Mumbai by Mr. Ashishkumar Chauhan, CEO-Bombay Stock Exchange at Title Waves on Nov 22, 2019.

“Investories” is a collection of bite-sized learnings in understanding the capital markets especially as investors are being increasingly exposed to multiple avenues for investments as well as multiple intermediaries, platforms and regulations.

In its constant endeavour towards investor education, JM Financial Services has lent paper to the thoughts and words of Mr. Amit Trivedi the author of Investories.

Speaking on the occasion, Mr. Subodh Shinkar, Managing Director & CEO, JM Financial Services said, “We had been considering a book that would be an assortment of timeless principles that just doesn’t bury the reader under charts, stats or graphs, but talks about the subject in an engaging and simplistic manner. We couldn’t have asked for a better collaborator than Mr. Amit Trivedi. His thoughts and approach resonated with the firm’s philosophy of investor education awareness and transparency.”

Mr. Amit Trivedi said, “I have been interacting with a number of investors and investment advisors across the country for quite some time now. I have realized that investors have many questions and doubts when it comes to investing. So, there was a need to put things in perspective and bring out various lessons that would help them make smart investment decisions. It was no surprise that the views of JM Financial Services were also quite similar. As a result, we decided to collaborate on this project. I believe that such initiatives by large firms like JM Financial Services go a long way in empowering the investors, by spreading the right message.”

Mr. Trivedi is a highly acclaimed author and financial products and sales trainer. He has conducted several distributor training workshops and investor education seminars. He has painstakingly researched every story and brought them to life with his simple and lucid words.

The book reveals the common mistakes that many investors make, the pitfalls and traps to avoid and the modus operandi that goes into selecting the right investment vehicle. With real life anecdotes, Mr. Trivedi prepares the reader for the reality of the world of investing whether they are beginners or veterans of the markets.

The book will be available in all major bookstores and can also be ordered online on Amazon.


Financial institutions debit Rs 759 cr from IL&FS against NCLAT order

The beleaguered group IL&FS has informed NCLT that in contravention of a NCLAT order, banks have debited about Rs 759 crore in the last eight months for repayment on their dues which amounts to coercive creditor action.

As per the fifth progress report to the NCLT, the company said that banks and financial institutions” actions affects its efforts to survive as a ”going concern”.

“In contravention with the October 2018 order of the NCLAT, some banks and financial institutions have been debiting the accounts of IL&FS group entities of ”Amber” and ”Red” classified ones without authorisation and from the group to service debt obligations payable by the relevant entities,” IL&FS said in its latest progress report.

With respect to the cash credit facilities provided by the lenders to the IL&FS group entities, some banks and financial institutions have been even appropriating interests by debiting the current accounts of the relevant group firm on a monthly basis, the update said.

“If the creditors of the IL&FS group continue with such actions the result will be that the ”going concern” status of those companies will be affected leading to disruption of operations and consequent value deterioration,” the company told NCLT.

The report said the auto debiting of accounts of the IL&FS group entities have been placed before the NCLAT and the appellate tribunal on August 8 asked the government and IL&FS to bring it to the notice and treat it as “contempt of court”.

Under the cost cutting measures, the company said that the new board has achieved the target of reduction of operating expenses for financial year 2018-2019 by about 26.22 per cent as set by the Fourth Progress Report.

The new board has achieved the target as there has been a reduction of operating expenses by 32 per cent and a significant contribution towards this has been achieved by the office space management , review of operating practices and administrative expenses by 60 per cent, the report said.

Further, the progress report showed that as IL&FS was unable to meet its repayments obligations due to financial mess, Government has also made payments under guarantees issued by it on IL&FS”s loans . On a loan from ADB ($50.5 million), government paid about $2 million dollar from the COntingency from of India which is shown as a loan to IL&FS. The present outstanding from ADB as on March 2019 is $23.80 million dollar.

The 54 million euro loan from KfW was also guaranteed by Government. After Government paid 0.732 million euro from CFI to KfW the outstanding to KfW as on March is 9.16 million euro.



Telecom tariffs to rise in Financial Year 20 2nd half; Report

Prices of telecom services are likely to rise in the second half of the current financial year (2019-20), an Edelweiss report said on Tuesday.

The probability of price hike can be attributed to the fact that the penetration in mobile broadband services has increased significantly and is nearing a saturation point.

“We estimate telecom operators to raise prices in H2FY20 as mobile broadband subscriber penetration reaches 65 per cent,” said the report titled “Telecom-Daylight Again”.

“Typically, in a market characterised by low penetration of services, providers’ quest for market share to gain economies of scale drives down prices, fuelling price wars. However, as investment requirements mount and relative attractiveness of balance market wanes, weaker players consolidate and participants start favouring pricing over incremental market share.”

On Reliance Jio, the Edelweiss report said that after 10 quarters since its launch and achieving 30 per cent of the revenue market share (RMS), “it is important to pause and take stock where the company stands now versus its objectives”.

“We believe that after achieving one of its key goals — 400 million subscribers in H2FY20 — Reliance JIO (RJIO) will hike prices to improve return ratios,” it said, adding that, JIO’s management, during its launch, had stated that one of its target is to achieve 400 million subscribers.

Regarding Bharti Airtel, the report observed that, with a strong balance sheet and adequate network investments, it is well placed to capitalise on industry recovery.

On the merged entity of Vodafone Idea, it said: “Although Vodafone Idea has higher operating and financial leverage from India’s telecom industry revival, we maintain our cautious stance considering underwhelming capacity expansion plans and weak data volume traction.”

“We continue to believe that RJIO will become India’s largest telecom operator led by the network’s high data capacity driving mobile broadband subscriber market share.”

Another report by UBS said that customer engagement and willingness to pay for the mobile apps is selectively increasing.

“Survey results also shows that about 55-60 per cent of Jio’s smartphone users engage with Jio’s app versus 35 per cent for Airtel and 25-30 per cent for Vodafone and Idea,” it said

The report, however said that advertisement rather than subscription might be the main revenue source from the content investments of the telecom operators.