The Central Government has something called a fiscal deficit. This has to be funded. The market borrowing of the Central Government is met by issuing dated securities (called G Sec) and 364 day Treasury Bills. This is normally done by issue of a slew of G Secs, T bills, by holding auctions. Money is raised [...]
People keep asking me ‘Have the markets bottomed out?’ To me the answer is NO. I am not saying that you should wait for the bottom – I have my shopping list and have already bought some shares, but no we may not be at the bottom. Friday was a shopping day..and I did buy.. [...]
Executive salaries – especially at the top are justified, because they are competitively determined by market forces! If you believe that all salaries are market determined, it is not true. Not true at all. Many people get protected because companies want to say ’44 MBAs have stayed with us for the past 12 years’ – [...]
Who pays the highest amount of tax in the country? Mr. Ambani? or Mr. Narayanamurthy? Well neither. Let us see the life history of a typical government or a bank employee. They join for service after a competitive exam – after that they are happy to hold on to that job for life. They earn [...]
There is no clarity about what happens to the Capital Gains under the Direct tax code. There is one school of thought that the status quo ante has been maintained. This means that short term cap gains will be at 10% and long term cap gains will be at 0% in case of equities and [...]
Despite some weak protests from the BJP the direct tax code in its full avataar has passed through the Rajya Sabha. Now it will go to a committee and then should pass muster at the Lower house also. It is one of the worst interruptors of the whole process of compounding – taxing the capital [...]