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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Five Action Points for July

With the first half of 2026 now behind us, July becomes an important checkpoint in the financial calendar. The beginning of July is the right time to move from reflection to action. Here are five important financial action points to focus on. 1. Inflation-Beating Assets One of the most important principles of long-term investing is to ensure that your portfolio is designed to beat inflation. Inflation silently reduces the real value of your money over time. This is why your long-term...

Five Action Points for July

With the first half of 2026 now behind us, July becomes an important checkpoint in the financial calendar. The beginning of July is the right time to move from reflection to action. Here are five important financial action points to focus on. 1. Inflation-Beating Assets One of the most important principles of long-term investing is to ensure that your portfolio is designed to beat inflation. Inflation silently reduces the real value of your money over time. This is why your long-term investments must be in assets that have the potential to deliver inflation-adjusted returns. For long-term financial goals, investors should consider assets such as equity mutual funds, direct stocks and gold. For short-term financial goals, especially those required within the next three years, options such as bank fixed deposits, recurring deposits or suitable debt mutual funds can be considered. If a large portion of your money is lying in low-return instruments, July is a good time to review and reshuffle your portfolio. 2. Increase Your SIPs Systematic Investment Plans (SIPs) remain one of the most disciplined ways to build wealth. SIPs help you invest regularly, avoid timing the market and benefit from long-term compounding. However, simply having SIPs is not enough. Your SIP amount must also be sufficient. Ideally, investors should aim to invest at least 30 percent of their in-hand monthly income. A common mistake is not increasing SIPs even when income goes up. Whenever your income goes up, your SIPs should also increase. An annual SIP increase can make a significant difference to your long-term wealth creation. 3. Make Lumpsum Investments While SIPs provide discipline, they should not be your only investment strategy. Besides SIPs, it is important to do extra lumpsum investments voluntarily, every few months. Also, if you have received a bonus, incentive or any unexpected inflow, consider investing it as a lumpsum. The idea is simple: do not let surplus money remain idle for too long. Staying invested gives your money the opportunity to grow. 4. Secure Insurance Cover Health insurance and term life insurance are essential pillars of financial planning. A single hospitalization can disturb your finances if you are not adequately covered. Do not depend only on your employer’s health insurance. Buy a sufficient personal health insurance policy with the right features. Similarly, term life insurance protects your family’s financial security in case of an unfortunate event. Your cover should be based on your income, loans, dependents and future responsibilities. 5. Consult a Financial Advisor If you have not yet made a proper financial plan, July is a good time to do so. Even if you already have a plan, it should ideally be reviewed every year. Consult a well-educated, full-time financial advisor for your financial goal planning and execution. It takes years of education, experience, expertise and wisdom to write a prescription. Please do not self-medicate when it comes to your wealth. The first half of 2026 is over, but the second half still gives you the opportunity to realign your finances. Take action, stay disciplined and move steadily towards your financial goals. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Lateral upgrade to ailing annihilation

Updated: Oct 21, 2024

Lateral upgrade to ailing annihilation

Being the first person from the private sector to be appointed as chairperson of Securities and Exchange Board of India (SEBI) as part of the government’s lateral initiative, Madhabi Puri Buch also holds the honour of being the first woman to hold the top post as capital market regulator.

But the laurels that the former private sector banker enjoyed in her earlier stint with ICICI Bank, was marred with allegations that she and her husband were having a stake in offshore entities, which were used to artificially inflate shares of Adani group companies.

Terming the allegation as `character assassination, Buch clarified that all disclosures have already been furnished and the fund in question did not invest in any securities involving the Adani group.

When it rains, it pours. This allegation was subsequently followed by Congress Party allegation that Buch had received salary and post-retirement benefits from ICICI Bank after she quit the private sector bank.

In its clarification to the stock exchanges, ICICI Bank asserted that the payments made to Buch were purely retirement benefits after her exit from the bank and they were neither salary nor employee stock options.

Prior to these allegations, Buch tenure at SEBI was all about bringing in quick reforms on operational issues by changing the format of consultation paper to bring in larger responses digitally. Being data savvy, the rationale of her decisions were democratic based on big data analysis derived from the responses received to the consultation papers.

Further she bifurcated the duties of the SEBI staff between operations and enforcement, which were done by the same persons earlier. Having worked for the private sector in the capital market domain space, Buch had a better understanding of the subject compared to officers from the administrative service in the past that reflected even in her orders as a whole-time director at SEBI before becoming the chairperson. As a whole time director at SEBI, her orders on adjudication issues were more directional to the capital market space, according to experts in the compliance space. She was also quick to revamp the old provisions of the 90s at SEBI.

Being tech and data savvy, Buch enhanced regulatory surveillance and detection of market manipulation, insider trading and fraud while also emphasizing on strengthening corporate governance by introducing stricter rules for independent directors and enhancing disclosures for related-party transactions.

To put in perspective, the annual report of the capital market regulator in the just concluded financial year revealed that the number of investigations related to insider trading jumped to 175 in 2023-24 from 85 in the preceding year while probes related to front running jumped over three times to 83 from 24 in the preceding year.

Transparency in mutual funds by implementing measures to protect retail investors along with tightening norms for initial public offers, particularly in the SME platforms were some of her other positive initiatives including confirmation of denial of any market rumours within 24 hours for the top 100 listed companies which will be extended to top 250 companies from December 1. However increased transparency and compliance with tightening regulations led to increased operational costs for the market participants and hence faced resistance from certain quarters. Born in 1966, Buch completed her primary education in Mumbai and graduated with specialization in Mathematics from Delhi and later obtained a management degree from Indian Institute of Management, Ahmedabad. In between, she got engaged to Dhawal Buch, a director at a consumer goods multinational at the age of eighteen and got married at the age of 21.

Besides ICICI Bank, Buch also worked as a lecturer at a college in England, worked at Greater Pacific Capital in Singapore and ICICI Securities as its CEO. She also worked as executive director on several private sector companies and as a consultant for New Development Bank (Brics Bank).

What now remains to be seen, is whether Buch, who survived the 26/11 terror attack when she along with her husband, was attending a meeting at Taj, be able to overcome the current ordeal. Keeping fingers crossed for the times to come.

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