the MCA (Ministry of Corporate Affairs) has said that it is compulsory for certain companies (have done a separate post on who are liable to file)..

But first thing first..if you need an overview of XBRL attend a one day training. If you need a more detailed hands on training do a 2 day training. This is xbrl training that I am talking about and is different from ifrs training that you may have gone through. Unlike IFRS, xbrl is a reporting standard – it is not a software or a tool.

xbrl is different from ifrs even though many people say ‘xbrl ifrs’ in one breath! You have no choice but to learn xbrl – and frankly that can happen only if you attend an xbrl training course.

do not postpone – 30th Sep is the last date for filing!

PS: I am a trainer, so I am looking for business for the training fraternity.  Alas, sadly I do not do xbrl training. I have a good over all view of the xbrl process, and have what I call an very good helicopter view (I think it is a superb tool), but I do not know the details – not enough to do a full fledged training.

so like Nike says, Just Do it.

to me it looks like a good opportunity for CAs over the next few years..till the tools get cheaper…

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Look at how childish both the exchanges are in their behaviour. BSE (the real name is The Stock Exchange, Mumbai) wanted to change the timing by a pifling 10 minutes, but the NSE decided to be one up – and said we will start trading at 9 am.

To me this is as funny as a mutual fund saying ‘This year we will sell equity funds’ – it is not about what they want, it is what the investor will buy.

In case of BSE and NSE – clear case of a stupid monopoly by a quasi government body – both of them did not bother what the end customer (for both the exchanges it is their immediate members) wanted. If the brokers decide to stay away from the exchanges from 9 am to 10 am, what will the exchanges do? Pray tell me ‘top management’ ? A few brokers may start early, there may be a few stray trades, but it will not be easy. If the software lock had a time lock of 9.55am, that will have to be changed. People will have to start early and gear up to longer working hours. Thankfully both the exchanges run their own clearing house – will they change the timing. I am sure they have no clue about how they are going to react. High time the newer stocke exchanges are allowed to start. MCX / Financial Technologies and Reliance ADAG are waiting to launch their exchanges (surely Rajnikant Patel is watching from the sidelines.

A very quick dipstick survey (fully biased -all gujju brokers who love to sleep late) got the same result – ‘I will continue to start at 10 am’ kind of an attitude. Even their customers who trade normally come into their offices by 10.30 – waiting for the volumes to develop. Will anything change here? Yes employees will have to come in early, leave at the same time or later – increased workload. The telivison channels will have to worry less about program will have to work less (search less for ‘what to do’), chai wallah near broker’s offices will sell more chai…

Incidentally volumes may go up….

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Leaving emotions out of your financial decisions is tough. Behavioural Finance is a science that gauges among other things, the rationale of investment decisions. UTVi talks to PV Subramanyam (Subra), financial trainer on the subject and discuss how being unemotional is crucial in matters of finance, especially in these volatile times.

When there was a flutter about ICICI bank, people started breaking their fixed deposits… taking their money out from their accounts… Earlier with the Tsunami, real estate lost favour… People started withdrawing from it. We tend to take investment decisions in panic…

Subra: If a person is serious about his equity investments, he will be emotional about it. It is difficult to say buy a share and not be emotional about it. If you have all your money lying in ICICI bank and you feel there is a problem with the bank you WILL panic.

Do you see people facing losses because of hasty decisions?

Subra: Actually, people do face losses because they react to such kind of news. Either they react a little too early or a little too late.

Markets have come down from 21,000 levels to 8,000. Analysts are saying that it is the right time to buy. But investors are into panic selling…

Subra: That is typically how people react. First, when the market came from 21,000 to 18,000, there was denial… you say this is temporary… At this point, you need to say I will invest in a disciplined manner than react to market prices.

There has been a study on the behaviour of people’s investments as far as their financial investments are concerned…. it’s called Behavioural Finance. This is applied from psychology to see how people react to financial situations. There are certain things like mental accounting. Your mind tends to make you feel good. So when things go wrong your mind tells you that this was your broker’s mistake… the market’s mistake… So you keep fooling yourself that you are very smart, and that you will never go wrong.

Vikram Oza: Don’t people react to panic situations when they don’t know what the future holds, because of that uncertainty, they say, better be safe than be sorry?

Subra: There are two situations. One is to be safe than sorry, the other is to consider what would others think… In a panic situation you should look like you have tried. And you fool yourself by saying ‘I have got rid of all my shares at 9500’. When market goes to 9000, you suffer from confirmatory bias… You say, I knew that the market will go down and the market HAS gone down from 9,500 to 9,000, you think you are very smart. What you have missed is the journey from 21,000 to 9,000. And when the market goes from 9,000 to 11,000, you have already lost the so-called ‘gains’. At 11,000, you say the markets will come down to 9,000 and then I will buy… the rise may  be sudden and stunning!

Keeping all that in mind, if I want to remove emotions out of all my investment decisions, what do I need to do?

Subra: Just go out and invest in some notebooks. Write down in your notebook what you are buying and why you are buying. Write down the emotions part of it. Maintain a personal investment diary and write down all your investments in an excel sheet. See, how much you are earning. Six months later your 200 page notebook will show you what you have done. If you have done very well, good… continue doing it. But, if you are underperforming the index, underperforming the fund managers, don’t invest directly in equities, put your money in mutual funds, in SIPs or in some kind of automated trading. Look at your asset allocation, like how much of your money should be in equity and how much in debt. A Systematic Investment Plan (SIP) completely removes emotion.

Do you approve of automated systems? …Using machines to make your equity investments, would it help?

Subra: Your emotions are completely removed when you use automated systems. In these volatile times, especially, if you are a buying guy, you have to continuously keep buying and selling. In this case, you are much better off giving this to software which is well written. But remember behind the software, there’s a human who has written it logically as to what you should do when the markets are down and all this is thought of and written unemotionally. Even automated systems cannot protect your capital entirely.

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