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<ul><li>The amount of debt that Indians have taken on has nearly doubled over the past five years. </li><li>Most of the borrowing has been done in the name of buying up more real estate even though it offers the worst returns. </li><li>Gold offers the highest returns yet accounts for only 11% of a household’s total wealth and they borrow against it. </li></ul>The average Indian household has been taking on more debt for nearly half a decade now. In fact, debt has nearly doubled with loans becoming cheaper to pick up over the past five years. This includes everything from <keyword id="35519" type="PERSON" weightage="20" keywordseo="home-loans">home loans</keyword> to vehicle loans — and even <keyword id="185013" type="PERSON" weightage="20" keywordseo="gold-loans">gold loans</keyword>, where gold is given up as collateral in exchange for money. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/3469458"></div>]]></cdata></div> This year alone, loans against gold have increased sharply even as banks are left craving for borrowers. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Growth in gold loans </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Muthoot Finance </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">32% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Manappuram Finance </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">33.40% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overall bank credit growth </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.50% </td></tr></tbody></table>*Data as of July-end except for Manappuram, which is as of June-end <keyword id="1912236" type="PERSON" weightage="20" keywordseo="household-debt">Household debt</keyword> is rising but where is the money going? Indians are famous for their love of gold but the biggest chunk of their investment is still real estate. While Indians still have a lot more gold than the average household in peer economies, their investments in real estate also race ahead — funded mostly by home loans. <div type="image" title="Exhibit 18" msid="77757237" hostid="261" caption="&amp;lt;p&amp;gt;Most of the average Indian&amp;#39;s household wealth is stored in real estate&amp;lt;/p&amp;gt;"></div> India outpaces China, Thailand and other countries around the world both in buying gold and property. But, the return of real estate has not even managed to beat the average inflation rate of the last five years. Whereas gold has given better returns than any other asset. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td colspan="4" style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Returns on various asset classes </td></tr><tr><td colspan="4" style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(% of returns from 2008 till...) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Till 2014 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Till 2016 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Till 2019 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Real estate </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.9% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Gold </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Equity </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.8% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.1% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Debt </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.8% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.6% </td></tr></tbody></table> Home loans may be cheap, but they’re harder to pay off Owning property remains an aspiration for the average household in a developing economy like India. However, to buy more real estate, one needs a home loan. And, right now, home loan interest rates are at an all-time low. It makes them attractive but hardly adds to the household net worth. While cheap loans have, to some extent, supported the demand for real estate, they have also kept property prices from falling. So much so that, despite the struggles of the property developers in the last few years, homes have only become less affordable. This affordability ⁠— measured by the amount of EMI compared to the monthly income of a household ⁠— would have only gotten worse in 2020 as the pandemic took away jobs and slashed salaries. SEE ALSO: <a href="https://www.businessinsider.in/science/health/news/oxford-astrazeneca-covid-19-vaccine-phase-ii-trials-will-begin-in-india-today/articleshow/77757085.cms">Oxford-Astrazeneca COVID-19 Vaccine: Phase II trials will begin in India today</a> <a href="https://www.businessinsider.in/business/startups/news/after-facebook-saregama-deal-sharechat-and-t-series-partner-up-for-a-music-licensing-deal/articleshow/77757088.cms">After Facebook-Saregama deal, Sharechat and T-Series partner up for a music licensing deal</a> <a href="https://www.businessinsider.in/business/startups/news/ola-electric-plans-to-hire-2000-co-founder-bhavish-aggarwal-says-electric-two-wheeler-launch-soon/articleshow/77755149.cms">Ola Electric plans to hire 2000 — co-founder Bhavish Aggarwal says electric two-wheeler launch soon</a>

Indians are borrowing heavily against gold⁠— but it may have been wiser to borrow money to buy the precious metal instead of homes

<ul><li>In Mumbai, almost <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/uber-ola-drivers-on-strike-heres-the-impact-on-different-cities/articleshow/63361106.cms">60,000 cabs are reportedly off the roads</a> in the city today leaving most commuters stranded. </li><li>The companies initially offered huge overhead payouts to them, but now takes approximately 25% cut from each of their trips. </li><li><keyword id="488032" type="PERSON" weightage="20" keywordseo="Maharashtra-Navnirman-Vahatuk-Sena">Maharashtra Navnirman Vahatuk Sena</keyword> has reached out to the police to get the ‘decision makers’ from these companies to meet them and the government, in order to come to an amicable decision </li></ul><keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> and <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword> drivers have gone on an indefinite strike starting midnight 18 March, organised by the <keyword id="13126" type="COMPANY" weightage="20" keywordseo="Maharashtra">Maharashtra</keyword> Navnirman Vahatuk Sena (MNVS). Though the strike is primarily affecting commuters in Mumbai, there have been some instances of cab unavailability in Delhi and Bangalore too. In Mumbai, almost <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/uber-ola-drivers-on-strike-heres-the-impact-on-different-cities/articleshow/63361106.cms">60,000 cabs are reportedly off the roads</a> in the city today leaving most commuters stranded. We spoke to a couple of drivers in Delhi who seemed to be blissfully unaware of the strike and claim they are happy and have 'no problem' with the company. Uber itself says that only Mumbai and Pune have been affected by the strikes and it’s business as usual in other cities. In a statement to the press, an Uber spokesperson said: We regret the disruption caused to our rider and driver community by a small group of individuals. We remain committed to serving the city, ensuring driver partners can continue to access stable earning opportunities, while giving riders a convenient option to get around their city. The Hon’ble Bombay High Court issued an injunction prohibiting unions, their leaders and anybody else from obstructing the activities of Uber driver partners. We welcome this, and hope that it will enable drivers to stay behind the wheel, something many have been telling us they wish to do. We have been listening to our driver partners all along and are committed to ensuring that Uber remains an attractive entrepreneurial opportunity for them. While the authorities have taken steps to ensure minimal disruption to our rider and driver communities, we hope that they will continue to enforce the order passed by the High Court. However, it's no secret that disgruntled cab drivers who bought in on the rosy picture painted by Uber and Ola, promising a lucrative career and a chance to squeeze into the middle class have today realised that it was nothing but a pipe dream. Initially promised earnings over a lakh per month, people from various walks of lives decided to give up their full-time jobs and even land to cash-in on this. However, today these drivers are finding it difficult to scrounge up enough money to pay up the loans taken to buy their cars. But this isn’t the first time we’ve heard this story. Drivers in India have been complaining about reduced incentives and overall earnings from Uber and Ola for a while now. The companies initially offered huge overhead payouts to them, but now takes approximately 25% cut from each of their trips. While both companies still do have some incentives in place, drivers say they are more difficult to achieve and working for Uber and Ola isn’t the “joyride” it once used to be. Examples overseas... When strikes against Uber first broke out in London back in 2016, Uber’s impact on Black Cab drivers’ income was one of the cornerstones of the movement. “Unite, the union that represents many black-cab drivers, claims the government is biased against their trade and claims light-touch regulation will threaten passenger safety as well as drivers’ incomes,” <a href="https://www.theguardian.com/technology/2016/feb/10/black-cab-drivers-uber-protest-london-traffic-standstill">the Guardian</a> wrote at the time. These strikes have become somewhat commonplace and except for one big win for Uber drivers in the UK in November last year, the results, for the drivers at least, have always been wanting. In the UK, a panel ruled that <a href="https://www.usatoday.com/story/news/world/2017/11/10/british-panels-rules-uber-drivers-employees-not-contractors/851388001/">Uber drivers are employees and not contractors</a>, and therefore entitled to basic protections such as minimum wage and vacation pay. In September last year, Uber was <a href="https://www.theguardian.com/technology/2017/sep/22/uber-licence-transport-for-london-tfl">denied the licence to operate by Transport for London</a> (TfL) claiming that the company was not a “fit and proper” operator. Uber’s failure to report ‘serious criminal offences, obtaining medical certificates and driver background checks’ was the main reason behind this decision. This move affected the 40,000 people who worked for Uber, not to mention its 3.5 million users. In 2015, local <a href="https://www.theguardian.com/world/2015/jul/24/rio-de-janeiro-uber-protest-taxis">cab drivers in Rio de Janeiro protested against Uber</a> because they claimed they were the “official” drivers who were strictly regulated and fewer overhead costs gave them a ‘competitive advantage’. In 2016, Uber decided to cease operations in Austin, Texas because it didn’t find it feasible to comply with the regulation to fingerprint and run thorough background checks on all its drivers. In 2014, both Berlin and Hamburg, Germany voted to ban Uber because it did not <a href="https://www.theguardian.com/technology/2014/aug/14/uber-taxi-service-banned-berlin-safety-grounds">‘do enough to protect its passengers from unlicensed drivers’</a>. The common thread of grievance is a predictable trio -- local taxi operators revolting against Uber’s competitive advantage, security concerns based on Uber’s slack regulation over the choice of drivers with regards to proper background checks, and unethical treatment of drivers. All of these complaints have been cited in India as well, but this is the second time such protests have sprung in as many years. Last year, the Sarvodaya Driver Association of Delhi (SDAD) called for a strike in Delhi against Uber and Ola on similar grounds, though the companies escaped unscathed at the time. Taking cues... The current strike in India hopes to achieve similar results. “This time things will be different because they have partnered with us,” says <keyword id="165480" type="PERSON" weightage="20" keywordseo="Sanjay-Naik">Sanjay Naik</keyword>, president of Maharashtra Navnirman Sena's (MNVS) transport wing. He believes that the <a href="http://indianexpress.com/article/india/maharashtra-taxi-rules-discriminates-between-black-and-yellow-cabs-and-app-based-taxi-services-bombay-hc-4780461/">privileges that are mandated by law to the Mumbai Kaali Peeli’ (black-and-yellow) taxi drivers</a> should also be applicable to Ola and Uber cabs so that all drivers can benefit from them. He wants the implementation of the <a href="https://www.thehindubusinessline.com/news/national/some-relief-for-cab-taxi-operators-in-maharashtra/article9921977.ece">BC Khatua Committee’s proposal</a> that includes ‘relaxation of several provisions of the Maharashtra City Taxi Scheme, including lowering the permit fees for all types of cars to a flat ₹10,000 instead of a graded system ranging from ₹75,000 to ₹2.6 lakh under the City Taxi rules.’ He also accused the companies of giving preference to cabs owned by the companies instead of driver-owned cabs. In India, Uber offers to buy cabs that are then passed on to drivers. Drivers effectively work off their debt to the company, by paying a monthly instalment to them. What Naik is insinuating is that Uber gives these drivers more rides than those who register their own cars on the service. What is most interesting, however, is that MNVS hasn’t ruled out going into business for themselves. Naik told us that if things don’t work out, they will consider bringing all the drivers together under one umbrella and take out the middlemen (Ola and Uber). However, for now, the organisation has reached out to the police to get the ‘decision makers’ from these companies to meet them and the government, in order to come to an amicable decision that will not only benefit the drivers monetarily but also implement regulations so that all drivers come under the same law and benefit from it. With the predictable spate of grievances by Uber drivers, commuters and local taxi operators, will Maharashtra take a cue from international events and tighten the leash on the private taxi operators? If it does, will that, in turn, set the precedent for the rest of the country? UPDATE: Ola shared the statement below with us today. “Interest of our driver partners and customer convenience is of paramount importance to us. While, we have seen a slight improvement in our services in Mumbai, however for the situation to improve significantly it is imperative that intimidation of driver partners and vandalism of their cars by vested interests be stopped. New economy companies like us are counting on the police for normalcy to return.”

Indian drivers may finally be taking cues from global movements against on-demand cab services

Just take a random ride on any of the cab aggregators <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword> or <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword>’s platform and you would find the story quite similar. Most of the driver partners earning their living from these cars are finding it hard to make ends meet. And they blame Uber and Ola for this. Initially during the launch phase, just like any other brands, both these cab aggregators publicized about lakhs of money that people can make driving a car. Now you can’t blame Uber too much on this. These drivers actually earned quite handsome, sometime reaching lakhs. And as expected, their lifestyle needs also increased. 
 
Everything seemed hunky-dory until this year when both the cab aggregators, having acquired enough business, switched to a lower incentive mode. While the passengers were made to pay more (for hatchback cars tariff goes up after 20 km), the drivers’ earnings started falling, so much so that many have faltered on paying EMIs to the banks for their new cars. 
 
What’s saddening is that stopping of incentive happened too sudden. Before the drivers even realized, they are already in debt having debts to pay. 
 
President of Uber India, Amit Jain interpreted it saying, “As our business has grown over three years in India, we are seeing sustainable earning opportunities for driver partners... with a 60 per cent year-on-year increase in driver signups in January 2017.” 
Having successfully disrupted the urban transport scenario in India, Ola now has its presence in 102 cities of India with 5 lakh vehicles and 5.5 lakh drivers. And its rival Uber has presence in 29 cities with 4 lakh cars registered on the platform. 
 
Carrying on with protests wasn’t a feasible solution for the drivers as they have to pay for EMIs of the cars and other family expenses.

Are Ola and Uber actually trying
to prove “poor people should never think big”?

<ul><li><keyword id="6355302" type="General" weightage="20" keywordseo="rupee" source="Orion">Rupee</keyword> has fallen 5.9% this year to 78.95 today from 74.51 on January 1, 2022.</li><li>Continuous FII outflows, rising dollar index, rising interest rates and inflation are major concerns sliding the rupee lower.</li><li>Analysts predict the rupee to hit as much as 82 in the coming time.</li></ul>Rupee has been extremely volatile this year despite the Reserve Bank of India efforts to keep it from falling further. But rising crude oil prices, interest rate hikes across central banks and the continuous outflow of liquidity from the market has only dragged it down. Yesterday on June 28, it touched a record low of 78.78 by falling 41 paise in a single session. Today, it fell to 79.02 and inched back up slightly to 78.92. This fall was triggered by rising crude prices oil prices in the last few days, after Russian bombings took away the hope that it would end soon. Rupee fell 5.9% this year to 78.95 today from 74.51 on January 1, 2022 and further analysts expect it to fall more attributing the current economic conditions. “The geopolitical tensions and soaring inflation has increased the economic uncertainty and growth fear. Although, RBI has started taking steps to curb the inflation and control the liquidity, the strengthening of the dollar has nullified the impact. The current momentum can pull rupee to 80 levels having support around 78 levels,” said Ravi Singh, vice president and head of research at Share India. Continuous FII outflows, rising dollar index, rising interest rates and inflation are major concerns sliding the rupee lower. Rupee could hit as much as 82 in coming time <a href="https://www.businessinsider.in/stock-market/news/foreign-investors-have-pulled-out-1-5-lakh-crore-from-the-indian-markets-in-2022-so-far-heres-why/articleshow/91485411.cms">FIIs sucked out ₹.2.22 lakh crore </a>from the Indian markets including equity, debt and hybrid assets as compared to ₹50,000 crore inflows in 2021. “Interest rates are continuously rising that's why emerging market investors are transferring money from equity to debt market,” said Amit khare, AVP- research commodities at Ganganagar Commodity. “Rupee can hit 81.50 - 82 levels in the coming future, currently trading around 79.00,” said Khare. In fact, some of RBI’s measures to sell dollars through spot market intervention has triggered it further. “RBI’s efforts of managing volatility in rupee via forwards, non-deliverable forward NDF and spot market by selling dollars has prompted dollar/rupee premiums to tumble thereby adding more pressure on the currency. Not only this, dollar liquidity shortage, continuous outflows from the local system and plausible bullish US Dollar Index shall keep the rupee in jitters for some more time,” said Heena Naik, research analyst - currency at Angel One. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/indian-startups-have-already-laid-off-a-little-over-11000-people-in-the-last-six-months/articleshow/92541036.cms">11,000 and counting — that’s how bad startup job losses are after Ola, WhiteHat Jr &amp; 22 others cut costs</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/ecommerce/news/after-groceries-in-10-minutes-most-indians-want-their-shoes-delivered-in-2-hours/articleshow/92539964.cms">After groceries in 10 minutes, most Indians want their shoes delivered in 2 hours</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/credit-card-spends-hit-a-record-high-and-most-of-it-is-online-and-not-at-stores/articleshow/92535200.cms">Credit card spends hit a record high and most of it is online and not at stores</a>

Rupee could slide to 82 as a strengthening dollar is nullifying RBI efforts

<ul><li>CMS Info Systems’ IPO opens on December 21 and closes on December 23.</li><li>The price band of the cash management company IPO is ₹205 to ₹216 per share.</li><li>The company plans to raise ₹1,100 crore via public issue of shares, which is a complete offer for sale by promoter Sion Investment Holdings PTE.</li></ul>Mumbai-based cash management company CMS Info Systems is all set to open its initial public offering (IPO) on December 21 and close on December 23. The company is looking to raise ₹1,100 crore via public issue of shares, which is a complete offer for sale by promoter Sion Investment Holdings PTE, an affiliate of Baring Private Equity Asia. The promoter acquired the company in 2015 and holds a 100% stake in the company at present. As a result the company will not receive any money from the IPO. CMS Info Systems claims to be India's largest cash management company based on number of installed ATM points and number of retail pick-up points as of March 2021. Its business includes installing, maintaining and managing assets and technology solutions on an end-to-end outsourced basis for banks under long term contracts. Business operations in three segments: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue from operations </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Description </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% percentage of total income in FY21 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cash management services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Include end-to-end ATM replenishment services, cash pick-up and delivery, cash-in-transit services for banks </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">67.79% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Managed services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Banking automation product sales, common control systems, and software solutions </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.54% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Others </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Financial cards issuance for banks and card personalisation services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.47% </td></tr></tbody></table> Also, it caters to a broad set of outsourcing requirements for banks, financial institutions, organised retail and e-commerce companies in India. Here are important details related to the IPO: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Issue details </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Price band </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹205 to ₹216 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO open date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 21 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO close date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 23 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Allotment date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 28 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Initiation of refunds </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 29 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Credit of shares to demat account </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 30 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO listing date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 31 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Minimum lot </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">13 </td></tr></tbody></table> <div type="image" title="CMS Info rev" height="900" width="1200" msid="88317691" hostid="261"></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/ola-raises-half-a-billion-dollars-in-debt-to-fuel-its-food-delivery-and-quick-commerce-dream/articleshow/88314624.cms">Ola raises half a billion dollars in debt to fuel its food delivery and quick commerce dream</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/rategain-travel-technologies-ipo-is-listing-tomorrow-gmp-at-45-per-share/articleshow/88307299.cms">RateGain Travel Technologies is listing tomorrow; GMP at ₹45 per share</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/mapmyindia-ipo-heres-how-to-check-your-allotment-status/articleshow/88307117.cms">Have you applied for MapmyIndia’s IPO? Here’s how to check if you’ve been allotted shares</a>

CMS Info Systems’ IPO to open on December 21 — Here are the important dates and details

<ul><li>The most common financial mistake is forgetting that the earlier you start, the easier it is to reach your goals. It is like laying the foundation for your future.</li><li>By avoiding some <keyword id="3187694" type="General" weightage="20" keywordseo="financial-mistakes" source="Orion">financial mistakes</keyword>, you can save more over time and achieve long term financial goals easily.</li><li>Here are 8 mistakes you can rectify to help you balance your finances.</li></ul>The 30s are a crucial period of one’s life. At this point in life, most of you must be juggling several things at the same time -- making the last few payments of your student loan, saving for a wedding or even planning to start a family, slogging for a promotion and so on. In this phase, most of you have started taking additional responsibilities that would require you to be financially stable. For this, you need to be disciplined with your savings and investments for the long term and avoid common money mistakes. Here are 8 <keyword id="12005793" type="General" weightage="20" keywordseo="common-financial-mistakes" source="Orion">common financial mistakes</keyword> that one can easily avoid in their 30s: Getting into credit card debt Yes, credit cards are convenient and do offer attractive benefits to buy bigger stuff like a car or so. But if you are using it for every single shopping purpose, it means you are making it a habit and getting into a debt trap. If you think this is a hoax, just check the enormous amount of interest rates charged by credit cards especially if you miss an equated monthly installment (EMI). It can feel like a solution at the moment but at the end of the day, it is just making you fall in debt more and more. Delaying investments Whether you have started investing or not, you must have come across names like billionaire investor Warren Buffett, Peter Lynch and Indian investors like Rakesh Jhunjhunwala, Radhakishan Damani. Interestingly, Buffett started investing when he was 11 years old. This is not to tell you to do the same. Starting to invest regularly would also do the work. The sooner you invest in equities, the more time you have to earn returns. And the more time you get, more returns are earned. Suppose you started investing ₹10,000 every month in a mutual fund with an expected return rate of 10%. After 10 years you have ₹20.65 lakh. Lack of financial goals Not setting goals is the biggest mistake people can make in their 30s. Setting up goals provides a certain financial direction to your life. It sets up timelines for achieving great things in life such as financial independence, buying a home, having kids and starting a business etc. Avoiding retirement savings Saving for retirement may sound too boring and unnecessary at this age. But with the growing age of life expectancy and if you plan to retire at 60, means you have 3 decades to save for your retirement. And imagine what a regular investment in these 3 decades can do to your retirement. Delaying the thought of saving for retirement will negatively impact your ability to accumulate sufficient savings for your golden years after retirement. Not keeping track of your spending The biggest mistake of all is not keeping a track of your expenses. Mindless spending can destroy your wealth over time. The key to accumulating more savings is by spending less on unnecessary things and saving it for the future. There are tons of mobile applications for free that help you manage your budget and master your cash flow. Use it and keep a tab on where your money is going. Ignoring insurance It is difficult to think about sickness and life threatening incidents at this stage in life, but the truth is you need to be prepared to protect yourself and your loved ones from such situations. Just buying a term life insurance policy can provide good financial security for your loved ones. In addition to it, you can also start buying health insurance for your family members. Conservative investment approach In your 30s you have plenty of time to take risks that you wouldn't in the age of 50. You can allot more of your portfolio to more volatile investments like equities and real estate for that matter, which generally requires 5-10 years to deliver strong returns. You can also make a balanced portfolio of either 60% equity and 40% fixed income investment. Also, if you do not understand investments as such, you can consult a financial advisor. Not creating an emergency fund In your 30s, you have more responsibilities and liabilities than your 20s like household expenses, loans etc. This is why it becomes crucial to avoid the mistake of not having a financial plan in place for unexpected emergencies like COVID-19, job loss, expenses for house repairs etc., by creating an emergency fund for 6 months. This can be your 6 months’ salary you have saved for a rainy day. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/uber-has-ola-zomato-has-swiggy-but-whos-urban-company-competing-with/articleshow/85835674.cms">Uber has Ola, Zomato has Swiggy but who’s Urban Company competing with?</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/skit-which-helps-barbeque-nation-and-axis-bank-automate-call-centres-has-raised-23-million-in-funding/articleshow/85834063.cms">Skit, which helps Barbeque Nation and Axis Bank automate call centres, has raised $23 million in funding</a>

Common financial mistakes to avoid in your 30s

<ul><li><keyword id="7223290" type="UNKNOWN" weightage="20" keywordseo="Flipkart-co-founder-Sachin-Bansal">Flipkart co-founder Sachin Bansal</keyword> has invested ₹20 crore in venture debt in boAt, through his firm BAC Acquisitions. </li><li>The audio brand boAt has gained popularity because of its affordable headphones. </li><li>The company claims that it sells over 8,000 units per day and on an average 5 units every minute.</li></ul><keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword>'s BAC Acquisitions has made a new bet with audio brand boAt. The brand which is known for its affordable speakers has got ₹20 crore in venture debt from him. The three-year old brand has already registered ₹100 crores in FY'18 as gross sales and is eyeing ₹500 crores in the next couple of years. “Venture Debt definitely helps us keep the capital structure intact. boAt’s financial performance has been strong since inception. Our efficient and lean business model coupled with targeted business insights has allowed the brand to enjoy logical margins so that we can earn money and not burn money,” said Aman Gupta, co-founder, boAt. According to the company, boAt sells over 8,000 units per day and on an average five units every minute. Along with e-commerce websites like Amazon, Flipkart, Snapdeal, the brand is also seen in the shelves of offline retail stores like Croma and Vijay Sales. The audio brand had raised ₹6 crore from Fireside Ventures in May 2018. Meanwhile, Bansal has been upping his game with his investments. He had recently invested ₹200 crore in Piramal Enterprises’ debt and has subscribed to its non-convertible debentures (NCDs). Bansal had also invested in the ride hailing unicorn Ola and electric bike startup Ather Energy. Bansal had announced his exit from Flipkart after its $16 billion acquisition by Walmart in 2018.

Sachin Bansal invests in boAt headphones, which says it sells five units every minute

ReutersSoftBank Group Corp Chief Executive Masayoshi Son.<ul class="summary-list"><li>SoftBank is selling key assets to buy back stock in an effort to cushion its stock, which has plummeted over 50% since mid-February because of fears over the coronavirus outbreak, the company <a href="https://group.softbank/en/corp/set/data/news/press/sb/2020/20200323_01/pdf/20200323_01.pdf">announced</a> Monday.</li><li>The company has come under pressure from investors to buy back shares and reassure the public market while its stock and market capitalization continues to slide. </li><li>The company is also reconsidering its stake in value-destroying portfolio companies, like its <a href="https://www.businessinsider.com/softbank-considers-backing-out-of-part-of-its-wework-rescue-package-2020-3">notice</a> to WeWork investors warning them that it could back out of its bailout of the embattled company. </li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Japanese technology conglomerate SoftBank is under immense pressure to not repeat history from the dot-com era and go bust. The company behind the $100 billion Vision Fund <a href="https://group.softbank/en/corp/set/data/news/press/sb/2020/20200323_01/pdf/20200323_01.pdf">announced</a> Monday that it would sell $41 billion of its assets to cut debt and buy back its shares. Coupled with the buybacks it <a href="https://www.businessinsider.com/softbank-group-to-buy-back-as-much-as-7-percent-of-its-shares-2020-3">announced</a> two weeks ago, the sale of its assets would allow SoftBank to retire as much as 45% of its stock. It's a necessary move for the investment giant, whose stock ticked up 19% after the announcement - but failed to significantly boost shares back to its former levels.As the coronavirus outbreak has roiled public markets over the past month, SoftBank has been hit especially hard. Its stock price has plummeted since mid-February, and SoftBank's stock took a 17% dive on Thursday - marking its biggest one-day fall ever, even surpassing the company's stock drop during the dot-com bust, which had briefly wiped away SoftBank CEO's Masayoshi Son's wealth. After Monday's rally, SoftBank shares are still down more than 40% from their peak in February.The gap between the total value of SoftBank's investment holdings and its market capitalization also hit a record 73% last week, according to SoftBank's statement Monday, a worrying sign for investors and analysts alike. On top of everything, SoftBank is facing both internal and external pressure from different investors. Activist hedge fund manager Elliot Management <a href="https://markets.businessinsider.com/news/stocks/elliott-management-takes-buys-billions-stake-softbank-wework-activist-investor-2020-2-1028884891">recently built up a $2.5 billion stake</a> in the company, and has been using it to push for its own changes. Pressure from Elliot was reportedly the impetus for SoftBank's original plan to buy back 7% of its shares, <a href="https://www.wsj.com/articles/softbank-to-buy-back-up-to-4-8-billion-in-shares-following-pressure-from-elliott-11584068498">the Wall Street Journal reported earlier this month</a>. And the hedge fund Apollo Global Management reportedly placed a substantial short bet against SoftBank bonds back in December, <a href="https://www.ft.com/content/7c500a00-6ac8-11ea-800d-da70cff6e4d3?te=1&amp;nl=dealbook&amp;emc=edit_dk_20200323&amp;campaign_id=4&amp;instance_id=16991&amp;segment_id=22604&amp;user_id=f058385abc0a81f5ba25805ecd26bcd9&amp;regi_id=7182330620200323">the Financial Times reported Sunday</a>. The hedge fund listed concerns about the company's sizable debt load and exposure to value-destroying startups like WeWork as reasons to be skeptical of the investment giant's future. <h2>Turmoil at Vision Fund</h2>SoftBank's tech investment arm is also in for a tough spell as the coronavirus outbreak has forced much of the world to retreat into quarantine and consequently devastated large sectors of the global economy.SoftBank still has a 16% stake in Uber, whose stock is still down about 45% because of the coronavirus outbreak. Several of Vision Fund's portfolio companies - like Didi, Grab and Ola - are still private and have no exit strategies. And even DoorDash, which filed for an IPO earlier this year, is <a href="https://www.businessinsider.com/doordash-ipo-will-face-big-hurdles-experts-say-2020-2">expected</a> to face a poor reception on Wall Street because of its money-losing business model. Last week, <a href="https://www.bloomberg.com/news/articles/2020-03-19/softbank-seeks-10-billion-to-supplement-vision-fund-amid-crisis">Bloomberg reported</a> that the company sought to raise an additional $10 billion to support its portfolio companies, which were getting slammed as the coronavirus pandemic spread across the US. It's a move unlikely to help SoftBank raise money for its second Vision Fund, which has so far raised a fraction of SoftBank's original estimate. But SoftBank is reportedly seeking to shield itself from its portfolio companies' worst losses.Last week, <a href="https://www.wsj.com/articles/weworks-board-prepares-for-a-fight-as-softbank-gets-cold-feet-11584912715?mod=article_inline">the Wall Street Journal reported</a> that SoftBank could back away from part of its bailout of the embattled company WeWork, a move that prompted WeWork directors to begin gearing up for an internal battle. <a href="https://www.businessinsider.com/intelligence/30-big-tech-predictions-for-2020?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=wework&amp;itm_campaign=30-big-tech-predictions-for-2020"></a> <h3>NOW WATCH: <a href="https://www.businessinsider.com/bidets-better-than-using-just-toilet-paper-2019-9">Why bidets are better than buying countless rolls of toilet paper</a></h3>

Stock buybacks and cutting losses: SoftBank, the Japanese investment giant behind WeWork, is under immense pressure to shield itself from an upcoming downturn

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Elliott founder Paul Singer.</div></div></div>Billionaire hedge fund manager and big Republican donor Paul Singer <a href="http://blogs.wsj.com/bankruptcy/2011/05/06/elliotts-paul-singer-rails-against-dodd-frank/">has long criticized Dodd-Frank</a>, the post-financial crisis regulation intended to prevent another meltdown.Now that Donald Trump's administration is expected to <a href="http://www.housingwire.com/articles/39051-pence-hensarling-dismantling-dodd-frank-remains-a-high-priority">dismantle the regulation</a>, Singer's $36.1 billion hedge fund is weighing in again, calling to revamp the law formally known as the Dodd-Frank Wall Street Reform and Consumer Protection Act."The financial system needs to be freed from the dysfunctional dictates of this ineffective law and properly and efficiently regulated instead," reads a line from Elliott Management's fourth-quarter letter to investors. A copy of the letter, dated this month, was obtained by Business Insider."Calling for the repeal or reform of Dodd-Frank is not the same as saying that the financial system needs to be 'deregulated,'" the letter added. "Dodd-Frank did not adequately address the problems that led to the crisis, and in fact created new problems by establishing new and unnecessary debt resolution schemes and by explicitly identifying certain institutions as too big to fail."In short, Elliott sees several issues with Dodd-Frank, including:<ul><li>the Orderly Liquidation Authority (OLA), whose power "to seize massive financial institutions which it deems to be merely in 'danger of default'" is, in Elliott's words, a "dangerous" expansion of regulatory power.</li><li>the Volcker Rule, a Dodd-Frank provision which is supposed to "ban proprietary trading by organizations which have insured deposit-taking entities. But the ban is metaphysical, has significant loopholes, diminishes market liquidity and is the wrong approach to mitigating and managing risk," according to Elliott.</li></ul>Elliott proposes several solutions, including allowing bailouts, refining margin requirements for big investors and counterparties, replacing the Volcker Rule and repealing the OLA, among other things. Elliott Management was one of the top hedge fund donors in the 2016 election cycle, giving about $27 million to conservative groups and Republican candidates, according to public filings tracked by the Center for Responsive <keyword id="6358883" type="PERSON" weightage="60" keywordseo="Politics">Politics</keyword>. Singer backed Senator Marco Rubio (R-Fla.) for president. Here are the solutions that Elliott proposes, according to the letter:<ul><li>"Every financial institution and counterparty globally needs to post initial margin plus daily two-way mark-to-market variation margin on all derivatives positions, regardless of the institutions' or counterparties' credit quality or status as a sovereign, "end-user," speculator or investor."</li><li>"The OLA must be repealed. There is no need for a separate resolution authority for large financial institutions, especially one which gives such arbitrary authority to a tiny group of regulators who have no ability to discern, in the midst of a crisis, what the heck is actually going on and what needs to be done."</li><li>""Living Wills" are a darkly comic fantasy which ought to be abolished immediately. These documents cannot possibly describe the quantity, scope, shape, direction or solution for the next wave of losses in the next GFC, and they effectively represent a "feel-good" hallucination."</li><li>"The Volcker Rule, which currently spans hundreds of pages of overly complex dictates, should be replaced."</li><li>"Maybe a restoration of some version of the Glass-Steagall Act which separated investment banking and trading from commercial and residential whole loan lending, or some other solution could be the answer."</li><li>"In actual crisis situations, however, it is important that the government retain the ability to render open bank assistance, lending money on a secured basis or investing in equity where appropriate and attractive."</li><li>"The Consumer Financial Protection Bureau, currently an "independent bureau" within the Fed, should instead be directly accountable to Executive and Congressional oversight just like any other federal agency."</li></ul>The Elliott Associates L.P. fund returned 4.4% for the fourth quarter of 2016 and 13.1% for last year, according to the investor letter. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/red-flags-goldman-sachs-bank-interviews-jobs-2017-1">This behavior could kill your chances in a Goldman Sachs interview</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="wxbjFnMzE6KLizh2hBTQSDvLOgNQGzpH" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

A $31.6 billion hedge fund is calling for a major overhaul of laws meant to prevent another financial crisis

A mere two years after he left <keyword id="6355629" type="CITY" weightage="60" keywordseo="Google">Google</keyword> for <a href="http://www.businessinsider.in/searchresult.cms?query=SoftBank&amp;sortorder=effectivedate">SoftBank</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=Nikesh+Arora&amp;sortorder=effectivedate">Nikesh Arora</a> has stepped down as the COO of the company. Handpicked by <keyword id="163404" type="COMPANY" weightage="100" keywordseo="Softbank">SoftBank</keyword> CEO <a href="http://www.businessinsider.in/searchresult.cms?query=Masayoshi+Son&amp;sortorder=effectivedate">Masayoshi Son</a> himself, this <a href="http://www.businessinsider.in/searchresult.cms?query=Silicon+Valley&amp;sortorder=effectivedate">Silicon Valley</a> was widely regarded as Son’s successor, and was one of the highest paid man on earth. 
 
Arora's resignation comes a day after SoftBank gave him the clean chit after a special committee reviewed allegations against him, and found no merit. Son is expected to continue as the CEO for the next 5-10 years. 
 
Mr. Arora’s departure comes after a volley of criticism about his lackluster investments, and shareholders campaigning to see him gone, claiming conflict of interest as a major reason, thanks to his role as an adviser to private-equity firm Silver Lake. 
 
Allegations against him: 
In its allegations, New York-based law firm Boies Schiller &amp; Flexner representing SoftBank shareholders claimed he was guilty of a "series of questionable transactions, poor investment performance and conflict of interest." 
 
With SoftBank struggling with slow growth in profit and a huge debt of $80 billion, no wonder Mr. Arora’s appointment as a board member to Sprint soon after joining SoftBank would face criticism. 
 
“Large corporate investments are not based on individuals. SoftBank’s investments would be guided by their idea of the size of the Indian market rather than an individual’s decisions”, Arvind Singhal, Chairman and Managing Director of Technopak says. 
 
His investments: 
Arora has been a strong supporter of the Indian startup ecosystem. Under him, SoftBank pumped over a billion dollars into the country’s startups. Its India investments include the likes of <a href="http://www.businessinsider.in/searchresult.cms?query=Snapdeal&amp;sortorder=effectivedate">Snapdeal</a>, Ola, Grofers, <a href="http://www.businessinsider.in/searchresult.cms?query=OYO+rooms&amp;sortorder=effectivedate">OYO rooms</a> and the troubled <a href="http://www.businessinsider.in/searchresult.cms?query=Housing.com&amp;sortorder=effectivedate">Housing.com</a>. 
 
“With him in place, SoftBank may have looked at India much more aggressively”, Singhal muses. 
 
Mr. Arora’s $208 million paycheck over the last two years made him one of the highest-paid executives in the world. His decision to purchase SoftBank stocks worth over $483 million last year also caused an outcry, calling it an attempt by the company to quieted murmurs about his performance. 
 
“I won’t be looking to invest in this space anymore, but not because of what transpired with the SoftBank portfolio. That space was looking like one with a very large market opportunity and, that ventures operating in it could scale quickly. However, now the consumer internet space is fairly congested. There is no value in investing in a space where every startup has several well funded competitors”, Angad Singh Rikhy, Manager, Dealflow and Partnerships, Unitus Seed Fund says. 
 
When asked if Arora’s investment decisions could be stamped as ‘bad choices’, Rikhy says, “I wouldn’t’ go as far to say that. Every fund and/or angel makes investments that go south, at an average 2 out of 10 funded startups make positive returns. Looking at his portfolio, it was not a complete blunder as people are positioning it. The reality is a lot of the time early-stage investors are not positioned well enough, whether its due to the lack of historical information when dealing with innovative products/services or the fact that most of the data available are projections. We bet on an entrepreneur’s capabilities to pull off certain strategic maneuvers.” 
 Several of Mr. Arora’s investments have been burning cash and losing money. Ola is still up against Uber in an expensive price war, <keyword id="541988" type="COMPANY" weightage="60" keywordseo="SnapDeal">Snapdeal</keyword> is struggling to raise new funds and OYO’s business model is being questioned. 
 
<a href="http://economictimes.indiatimes.com/photo/48539924.cms">Image Source</a>

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