Baskaran. R

  Book Review: Personal Finance and Insurance by Prakash Phararaj Title: Personal Finance and Insurance Author: Prakash Phararaj Introduction Personal Finance and Insurance by Prakash Phararaj is a comprehensive guide designed to help readers understand the foundational concepts of financial planning and risk management. Written with clarity and structured for students, professionals, and individuals aiming to make informed financial decisions, the book integrates the principles of personal finance with practical insights into the insurance sector. Summary The book covers a wide range of topics essential for personal financial literacy. It begins with the basics of budgeting, saving, and investment planning. Phararaj explains different financial instruments such as stocks, bonds, mutual funds, and fixed deposits, offering a balanced view of their risk-return trade-offs. A significant portion of the book is dedicated to insurance life, health, property, and general insurance. The au...

 The United States has announced a reduction in the planned remittance tax, lowering it from 5% to 3.5%. This move is expected to ease the financial burden on individuals sending money abroad, particularly benefiting migrant workers and foreign residents who regularly remit funds to their home countries.  The decision reflects the U.S. government's effort to support international families and promote smoother cross-border financial flows. It may also help maintain strong economic ties with countries that rely significantly on remittance inflows.

 In a significant development towards resolving the prolonged National Spot Exchange Ltd (NSEL) crisis, approximately 92% of affected traders have approved a one-time settlement scheme. This scheme, proposed by the NSEL Investors Forum (NIF) and backed by 63 Moons Technologies—the parent company of NSEL—entails a payout of ₹1,950 crore to around 5,700 investors. The settlement offers about 42% of the outstanding dues, providing a long-awaited resolution for traders who have been awaiting reimbursement since the exchange's collapse in 2013 due to payment defaults by 24 entities . Under the terms of the agreement, investors will assign their claims against defaulters to 63 Moons, which will oversee the recovery process. To ensure transparency, an escrow agent and monitoring authority will be appointed to supervise the disbursement of funds. The settlement plan has been submitted to the National Company Law Tribunal (NCLT) for approval, marking a pivotal step towards concluding one o...

 On May 19, 2025, the Reserve Bank of India (RBI) released revised draft guidelines concerning investments by regulated entities (REs) including banks and non-banking financial companies (NBFCs) in Alternative Investment Funds (AIFs). The proposed norms aim to enhance oversight and mitigate risks associated with such investments. Key provisions include capping a single RE's contribution to any AIF scheme at 10% of its corpus, with a collective ceiling of 15% for all REs combined. Investments up to 5% of an AIF's corpus by an RE will not face additional restrictions.  However, if an RE's investment exceeds 5% and the AIF has downstream debt exposure to a borrower linked to the RE (excluding equity shares and certain convertible instruments), the RE must make a 100% provision for its proportionate exposure. These guidelines are designed to prevent potential misuse of the investment route and ensure prudent investment practices. The RBI has invited public feedback on these dra...

  The National Company Law Tribunal (NCLT) has scheduled a hearing for June 3, 2025, regarding an insolvency petition filed by the Indian Renewable Energy Development Agency (IREDA) against Gensol Engineering. IREDA, a state-owned financial institution, filed the petition under Section 7 of the Insolvency and Bankruptcy Code, citing a loan default of ₹510 crore by Gensol. The tribunal has issued a notice to Gensol, directing the company to respond to the allegations. This legal action follows a series of regulatory challenges for Gensol Engineering. In April 2025, the Securities and Exchange Board of India (SEBI) issued an interim order barring Gensol and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities markets due to alleged fund diversion and governance lapses. Subsequently, both promoters resigned from their positions within the company

  Tata Power has reported a significant 25% year-on-year increase in its consolidated net profit for the fourth quarter of fiscal year 2025, reaching ₹1,306 crore, up from ₹1,046 crore in the same period last year. This growth is attributed to strong performance across its key business segments, including power generation, transmission, distribution, and renewable energy.   The company's revenue from operations also saw an 8% rise, totaling ₹17,096 crore for the quarter, compared to ₹15,847 crore in the corresponding period of the previous fiscal year. In light of these robust financial results, Tata Power's board has proposed a final dividend of ₹2.25 per equity share for the financial year ending March 31, 2025. This proposal is subject to shareholder approval at the upcoming Annual General Meeting scheduled for July 4, 2025.

 Bharti Airtel reported a significant 77% year-on-year surge in its net profit for the fourth quarter, reaching Rs. 5,223 crore. This strong performance was driven by increased data consumption, a rise in average revenue per user (ARPU), and continued growth in its subscriber base.  The company’s revenue also saw healthy growth, reflecting robust operational efficiency and strategic investments in its network and services. Bharti Airtel's strong Q4 results highlight its competitive positioning in the telecom sector and its ability to capitalize on the growing demand for digital connectivity across India.

 More Retail is reportedly planning to launch an Initial Public Offering (IPO) worth around Rs 2,000 crore in 2026. The move aims to support the company’s expansion plans and reduce its existing debt burden.  Backed by investors like Amazon and Samara Capital, More Retail is one of India’s leading supermarket chains.  The funds raised through the IPO are expected to help the company strengthen its operations, open new stores, and enhance its supply chain infrastructure. Additionally, the capital infusion will assist in improving financial stability by cutting down on liabilities.

 Over 30,000 cases involving defaults totaling ₹13.78 lakh crore were settled before formal admission into the Insolvency and Bankruptcy Code (IBC) process as of December 2024, according to Jitesh John, Executive Director of the Insolvency and Bankruptcy Board of India (IBBI). This development underscores a significant improvement in credit discipline, as the IBC framework has encouraged early resolution of distressed debts, prompting debtors to proactively address financial obligations.  Additionally, the Reserve Bank of India's 2023–24 report highlights that ₹46,000 crore out of ₹96,000 crore recovered by scheduled commercial banks came through the IBC, emphasizing its central role in debt recovery. Furthermore, 1,194 Corporate Insolvency Resolution Processes concluded by March 2025 resulted in creditors realizing ₹3.89 lakh crore—about 32% of total claims—while recovering approximately 170% of the liquidation value and 93.36% of the fair value, indicating the IBC's effectiv...

ChatGPT said: Recent developments have sparked discussions about India's reliance on the United States, particularly in defense and foreign policy.  Critics argue that this dependence may compromise India's strategic autonomy.   For instance, the Communist Party of India (Marxist) and the Communist Party of India criticized India's abstention from a UN resolution calling for a truce in Gaza, suggesting that India's foreign policy is increasingly influenced by its alignment with U.S. interests, potentially at the expense of its traditional support for the Palestinian cause.   In the defense sector, concerns have been raised about India's growing procurement of U.S. military equipment.   Analysts warn that such reliance could lead to strategic vulnerabilities, as seen in other regions where U.S. arms sales have been used to exert political influence.   The U.S. has also pressured India to reduce its defense ties with Russia, particularly regarding the S-400 missil...

  Iranian Foreign Minister Abbas Araghchi is undertaking a significant diplomatic mission this week to Pakistan and India amid escalating tensions between the two nuclear-armed neighbors following the deadly April 22 terrorist attack in Pahalgam, Indian-administered Kashmir, which claimed 26 lives, including Hindu tourists. India has accused Pakistan of involvement in the attack, a claim Islamabad denies, leading to heightened military alerts, border skirmishes, and the suspension of key bilateral agreements such as the Indus Waters Treaty and the Shimla Agreement. In Islamabad, Araghchi met with Pakistani President Asif Ali Zardari and Prime Minister Shehbaz Sharif to discuss de-escalation strategies and regional stability. He is scheduled to visit New Delhi later this week to engage with Indian officials, although India traditionally resists third-party mediation in its disputes with Pakistan. Iran's initiative underscores its growing role in regional diplomacy, aiming to pre...

 Indian Overseas Bank (IOB) has posted a robust net profit of ₹1,051 crore for the fourth quarter of FY24, marking a significant improvement compared to previous quarters and showcasing the bank’s steady financial recovery. This growth is attributed to higher interest income, improved asset quality, and better operational efficiency. The bank's Net Interest Income (NII) and provisions have also shown favorable trends, contributing to the strong bottom line. In addition to the quarterly results, IOB's board has given its approval for raising ₹4,000 crore through an equity issue. This capital infusion is intended to bolster the bank’s capital adequacy ratio, support credit growth, and meet future business expansion needs. The equity can be raised via various modes such as Qualified Institutional Placement (QIP), rights issue, or follow-on public offering (FPO), depending on market conditions and regulatory clearances.

  The Adani Group has announced a significant investment of ₹13,000 crore to advance the development of the Vizhinjam International Seaport in Kerala. This funding is part of a broader ₹20,000 crore commitment aimed at expanding the port's capacity and infrastructure. The investment will facilitate the completion of the port's second and third phases by 2028, increasing its capacity from the current 1 million TEUs to 4.5 million TEUS Strategically located near major international shipping routes, Vizhinjam Port is poised to become India's premier transshipment hub, reducing the nation's reliance on foreign ports for container transshipment. The port's natural depth of up to 20 meters allows it to accommodate some of the world's largest container vessels, enhancing its competitiveness on the global stage. This investment is part of the Adani Group's larger plan to invest ₹30,000 crore in Kerala over the next five years, which includes developments in log...

  Adani Power Ltd reported a 47.8% year-on-year decline in its consolidated net profit to ₹2,737 crore for the fourth quarter ending March 2024, compared to ₹5,242 crore in the same period the previous year. This decrease was primarily due to increased expenses, including higher depreciation and finance costs following the commissioning of the Godda project.   Despite this, the company's total income rose by 30% to ₹13,882 crore, driven by a 55% increase in power sale volumes to 22.1 billion units, attributed to improved power demand, lower import coal prices, and larger installed capacity. For the full fiscal year FY24, Adani Power's net profit nearly doubled to ₹20,829 crore from ₹10,727 crore in FY23, with total income rising to ₹60,281 crore from ₹43,041 crore. The company's net debt also decreased to ₹26,545 crore as of March 31, 2024, from ₹39,434 crore a year earlier.