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Moneylife Foundation & the Centre for Advancement of Philanthropy conducted a workshop on 'Legal Compliances (under the Trusts & Societies Act, Income Tax & FCRA) & Good Governance For NGOs' on 16 July 2010

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Noted writer Achyut Godbole chaired a Moneylife Foundation workshop for booklovers on 17 April 2010.

Moneylife Foundation conducts 'Brainstorming seminar on senior citizens issues'(09 April 2010).

Moneylife Foundation conducts financial literacy workshop for women (26 March 2010).

Moneylife Foundation conducted a special financial literacy workshop for women on the occasion of International Women's Day (8 March 2010)

Moneylife Foundation organised an open discussion on "Budget and You" on 27 February 2010. The participants were presented with a detailed analysis of the implications of the Budget proposals.

Sanjay Nirupam, Member of Parliament, inaugurating the Moneylife Knowledge Centre on 6 February 2010.

Moneylife, in association with Reliance Mutual Fund, organised the Big Ideas Essay Contest on “Taking Financial Markets to the Masses,” on 5 December 2009.
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Financial Literacy Farce
June 21, 2010 06:16 PM | Bookmark and Share
Sucheta Dalal

India’s investor population has always been concentrated in the states of Gujarat, Maharashtra, Rajasthan and the larger cities in the south. But you would have a completely different notion, if you were to go by the list of 69 NGOs accredited and eligible to receive funds from the Investor Education & Protection Fund (IEPF)

India’s investor population has always been considered rather skewed and concentrated in the states of Gujarat, Maharashtra, Rajasthan and the larger cities in the south. But you would have a completely different notion, if you were to go by the list of 69 NGOs accredited and eligible to receive funds from the Investor Education & Protection Fund (IEPF) of the Ministry of Corporate Affairs (MCA). This Fund, of over Rs400 crore, carved out of unclaimed dividends, interest and other proceeds, is disbursed in driblets to accredited NGOs for investor education seminars. Of the 69 eligible NGOs, a dozen-odd are well known. The rest, going by their names and locations alone, probably have little or nothing to do with financial markets and investment. For starters, the highest number of accredited NGOs—as many as nine—is from Orissa. They have names like Basti Area Development Council, Centre for Community Development, Centre for Alternative Training, Evaluation and Research, Gania Unnayan Committee, Yuga Murti Seva Ashram, ODD Foundation, and March of Youth for Health, Education & Action for Rural Trust.

Similarly, there are four accredited associations from Kolar district of Karnataka which is known for its goldfields and rich politicians who control mining, but not for any significant investor population. These are: Environmental Research Institute and Human Care, Shree Jnanodaya Gramin Vidya Trust, Gram Vikas Society and Surya Rural Development Society. Consider some other accredited entities—Avadh Grameen Vikas Sansthan from Sultanpur, Kisan Bal Avam Mahila Kalyan Samiti from Gonda and the Bharatiya Mahila Kalyan Samiti from Barabanki (all in UP); Dompukar Human Development Society and Karimpur Social Welfare Society of West Bengal; Gram Vikas Parishad of Assam, Harihar Bahuuddeshiya Sanstha of Wardha in Maharashtra, Mahadev Vikas Samiti of Gwalior and so on. These may be great NGOs, but how do they qualify for a share of investors’ unclaimed funds? Is it any wonder then that India’s retail investor population has halved?

 



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9 Comments
chandrashekhar kulkarni 1 month ago
last 1 year I am trying to highlight the same issue ,from the day SEBI ban entry load,In India the status of financial literacy is not much.even in few states literacy is restricted to top cities of that states.Moneylife foundation is also confine to mumbai where literacy level is quite high.you also come out from your shell & spread lietarcy in small towns & cities.instead of organising workshop at mumbai,look beyound your city.sitting in AC writing for elite doesnt make sense.
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J N Singh 1 month ago
We appreciate the efforts of columnist to bring this farce in public domain and courage to comment on sensitive issue.
Sensitive because,by whome and how, such NGOs are created to siffon off, the Govt funds in connievance with insiders,is very well known?
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Deepak K Rao 1 month ago
Dear Sucheta, thanks for the kind information. Its really shocking to hear that the funds of IEPF is distributed to few NGOs! In fact, the funds need to be utilized to educate the people of the country on the concept of 'quality investing' to increase the 'investing population of our country'.

This is a sentence worth reading thousand times. 'India is a nation of first rate people, governed by third rate politicians'. - Nani A Palkhivala
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Ajit Misquitta 1 month ago
Pardon my ignorance but don't you think that by increasing awareness in rural areas outside of investor clusters will broaden the investor climate?
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DrNeelaPatwardhan 2 months ago
fantastic research and a great article.
I do hope it brings about some tangible results. Is anyone, who has the authority, listening?
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Prof Navin Punjabi 2 months ago
Gives great insight on Investor Protection a Myth or realty !!!!
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Manoj Jha 2 months ago
Sucheta, This is an eye opener, 69 NGO pocketing IEPF Funds . Tragedy is that we still have City Limozine type of Scam in Mumbai. MCA should improve & put funds to proper use. Hope Mr. Salman must be reading this.
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amrit singh deo 7 months ago
great article, sucheta. no mincing of words. 'promoter tricks' my favourite.

& congrats on the foundation!
amrit
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shreyas 7 months ago
No wonder there's namesake Fin.Literacy happening n gullible investors being fooled.Forget IEPF,few can spell SEBI & fewer IRDA(10yrs aft pvtsation).Talking of investor protection reminds me of Robert Kiyosaki n the tremendous work his Rich Dad foundation's done educating the common man about concepts of Money,Investment n finance.Moneylife too deserves equal praise in highlighting these issues.
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