A Study about Chit Funds – A Boon to the Small Enterprises
Introduction: Chit funds are the Indian equivalent of the Rotating Savings and Credit Associations (ROSCA) that are famous throughout the world. ROSCAs are a means to ’save and borrow’ at the same time. It is considered one of the best instruments to cater to the needs of the poor. The concept of chit funds originated more than 1000 years ago. Initially it was in the form of an informal association of traders and households within communities, wherein the members contributed some money in return for an accumulated sum at the end of the tenure. Participation in chit funds were mainly for the purpose of purchasing some property or, in other words, for ’consumption’ purposes. However, in recent times, there has been tremendous alteration in the constitution and functioning of chit funds.
How Do Chits Work?: A chit scheme generally has a predetermined value and duration. Each scheme admits a particular number of members (generally equal to the duration of the scheme), who contribute a certain sum of money every month (or everyday) to the ’pot’. The ’pot’ is then auctioned out every month. The highest bidder (also known as the prized subscriber) wins the ’pot’ for that month. The bid amount is also called the ’discount’ and the prized subscriber wins the sum of money equal to the chit value less the discount. The discount money is then distributed among the rest of the members (or the non-prized subscribers) as ’dividend’ and in the subsequent month, the required contribution is brought down by the amount of dividend. Keep reading…
This is not so surprising .India is the world`s most corrupt country.Corruption is not new in India.Recently due to international pressure, Swiss government agreed to disclose the names of the account holders only if the respective government formally asked for it.
India has more money in Swiss bank than all the other countries combined.Second best Russia has 4 times lesser deposit. US is not even there in the counting in top five.
Coal allocation scam or Coalgate, as referred by the media, is a political scandal concerning the Indian government’s allocation of the nation’s coal deposits to public sector entities (PSEs) and private companies. In a draft report issued in March 2012, the Comptroller and Auditor General of India (CAG) office accused the Government of India of allocating coal blocks in an inefficient manner during the period 2004–2009. Over the Summer of 2012, the opposition BJP lodged a complaint resulting in a Central Bureau of Investigation probe into whether the allocation of the coal blocks was in fact influenced by corruption.
Historically, the economy of India could be characterized as broadly socialist, with the government directing large sectors of the economy through a series of five-year plans. In keeping with this centralised approach, between 1972 and 1976, India nationalised its coal mining industry, with the state-owned companies Coal India Limited (CIL) and Singareni Collieries Company (SCCL) being responsible for coal production.read more Indian Coal Allocation Scam
Definition: Spoofing is the development of TCP/IP packets using some unknown person’s IP address. Routers use the “destination IP address” in order to be able to forward packets through online, but ignoring the “source IP address”. This IP address is only used by the destination device when it reacts back again to the resource.
The term “spoof” indicates “falsified”. A spoofed e-mail is when the email sender intentionally changes areas of the e-mail to masquerade as though it was written by someone else. Generally, the sender’s name/address and the body of the message are partitioned to appear from a genuine resource, as though the e-mail came from a financial institution or a publishing or genuine organization on the Web
VVIP choppers deal facing charges of kickbacks, government on Thursday formally asked Italian firm Finmeccanica to state whether any money was illegally paid to any Indian entity or individual amidst its warning of legal action including blacklisting of the firm.
The ministry of defence, which is under attack on the issue, came out with a factsheet detailing the sequence of the Rs 3 crore deal for 12 helicopters clinched in 2010 by a Finmeccanica subsidiary AgustaWestland. It notes that the mandatory technical requirements of the chopper were changed in the tender during the Vajpayee government in 2003, with the then national security adviser Brajesh Mishra playing a key role…
Click here to read more on Chopper Scam 2013
In a stunning twist to the 2G case, an audio tape of a CBI senior public prosecutor purportedly advising a key accused on how to counter prosecution’s charge has emerged, breathing fresh life into the mega-swindle and bringing fresh trouble for the government.
The tape sent to the CBI anonymously has the agency’s senior public prosecutor A K Singh speaking to Sanjay Chandra, MD of Unitech and one of the main accused in the scam case, tutoring him on how to strengthen his defence and weaken CBI’s case against him. “I have been muddling up the matters only for you,” Singh purportedly tells Chandra in the tape that has been sent for forensic investigation…
Click here to read more on 2G Spectrum Scam…
Born in a jute trader’s house in Calcutta, Bhansali was a studious person. After obtaining a degree in commerce, Bhansali completed Chartered Accountancy in 1980. In the same year, he started a financial consultancy firm, CRB Consultancy. Through Bhansali’s personal contacts, CRB Consultancy soon managed to secure the business of providing issue management services to a few well-known companies in Calcutta.
Over the years, Bhansali acquired other degrees as well including ACS, Ph.D., MIIA (US) and a diploma in Journalism. Though he made a lot of money, Bhansali found it difficult to find recognition in Calcutta. He then moved to New Delhi to join one of the country’s leading registrars of companies. However when Bhansali was caught short-charging the registrar’s clients, he had to leave. Keep reading
Abstract: The case examines the unethical business practices of Halliburton Company (Halliburton), a leading engineering and oil exploration services provider. It gives a detailed account of the allegations that the company has been facing over the years. Halliburton was reportedly involved in doing business with countries with which trades were prohibited by the US government.
The company was also alleged to have been involved in violating accounting practices by including ‘disputed claims’ as revenues in its income statement. More recently, Halliburton’s subsidiary – KBR was reportedly involved in ‘overbilling’ of oil and food supplies to the US army during the Iraq war in March 2003. The case also highlights the company’s political connections that had benefited Halliburton over the years. Click here to read more…
The case study examines the massive ‘Ponzi Scheme’ run by Allen Stanford (Allen), one time honored with the ‘Sir’ title by the Antigua government and ranked the 239th richest person in America by Forbes. Stanford was famous for his philanthropy and luxurious life style before he was caught by federal agents in February 2009 just a few weeks after an article published in VenEconomy Monthly written by Alex Dalmady. This article had raised, for the first time in 13 years (1996-2009), some very basic questions about the financials of Stanford International Bank (SIB), one of the companies run by Stanford To refer this case study click here on Allen Stanford Financial Scandal
The Securities and Exchange Board of India (Sebi) stopped the listing of Vaswani Industries Limited’s (VIL) shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This move came on the heels of several complaints received from Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs). VIL and Ashika5 Capital Limited were ordered to give the withdrawal option to RIIs and NIIs.
This was the first time that Sebi had stopped a listing after allotment of shares to investors. Commenting on the irregularities of the VIL Initial Public Offering (IPO), Sebi said, “Based on the data received from the exchanges or registrars regarding the subscription or withdrawals and preliminary inquiries into the matter, SEBI has advised the stock exchanges to withhold the listing of securities until further instructions. Click here to read more…