Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
when investors invest in AAA securities and within 3-4 months, it is downgraded
to D, small investors may lose their hard earned savings. unrated/lower rated papers is
different story. but here (AAA) is ML remains silent for investor protection, it is
just shocking. though i am sure ML should have a plan for this. pl. take it up soon
or when the loss is sure.
Moneylife Foundation, which is a separate, stand alone entity, takes up financial literacy and advocacy. However, we operate with limited resources and expect that those who benefit from the magazine and free seminars will make fewer investment mistakes.
When you say take up issues, it is not clear what you mean. Moreover, those who invested and lost money should first have a complaint. We have not received a single complaint so far. So we are not sure what we are supposed to jump around about.
As for regulating Rating Agencies, that is something SEBI alone can do.
If you have specific thoughts and suggestions do write to [email protected]
best
Sucheta
I am an investor in UTI ultra short term and UTI savings fund and I received 2 emails (one for each) from UTI MF on 7th June (21:43) stating reduction in NAV of abt 1% due to DHFL investment gone sour.
No mention of apology or poor due diligence especially after IL&FS fiasco.
Will the AMC compensate this loss from their earnings and high salary and bonuses given to their investment managers.
Why can't SEBI or MCA overhaul the way system operates? If a company pays to a rating agency to get rated, I feel the outcome is manipulated in favor of the company. Nothing is "independent analysis" in such arrangement. Most surprising thing is all rating agencies act in cohort - they all simultaneously upgrade the rating and downgrade the rating. Reminds me mass copying - either all pass or all fail.
Instead, the change that should be brought in the system is that lending banks nominate a rating agencies and rating agencies be held responsible by the bank. For public deposits, the rating agency is to be held responsible by SEBI/MCA. If things go wrong rating agencies need to cough up fines.
There is a very good system that works in elsewhere in the world. Tos comply with Federal Aviation Administration (FAA) regulations, all companies operating in aerospace manufacturing, repairs and services appoint few of their employees as FAA representatives. These reps need to be certified by FAA on regular intervals. They report to FAA on regular basis and FAA monitors reps' performance related to safety incidents. Guess what, companies buy hefty insurance for its FAA representatives to cover the damages if there be any safety incident.
Similar system with appropriate variations need to be introduced in India for rating agencies, auditors, etc.. On a side note, this arrangement works also for appointing and monitoring Independent Directors in companies.
Best regards,
Gangadhar Shanagala