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2 KEEMAT May-June 2009


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Letters to the EditorLetters to the EditorLetters to the EditorLetters to the EditorLetters to the Editor

The Editor,

Keemat, CGSI.

Thank your for publishing the New Airline Rules laid down by the DGCA in Jan-Feb 09 issue. Thank god

for them, I was a victim of lost ticket till I got it redressed by the Consumer Redressal Forum. While on the Indian

aviation or be more precise Mumbai, I suggest CGSI takes up the matter of the confusion of two airports at

Mumbai. The Central Railway terminals all named after Chattrapati Shivaji. This confuses all traveleers, more

foreign and outsiders to Mumbai. It can cause delays and missing of journey and also cheating by unscrupulous

cabbies. It sure is a problem of consumers at large be taken up by CGSI Suo motu. Many, many will thank you.

The second is a report of Supreme Court judgement on mediclaim premium for senior citizens wherin it has

directed that insurance companies must desist from the practice of demanding hefty increases in the medical

insurance premium of senior citizens and also directed the IRDA to prescribe clear guidelines to all insurance

companies. I would like to CGSIs take up this matter, as a member of CGSI.

Nagesh Kini, ICA

Mahim House, Mogul Lane, Mumbai 400 016.

Dear Editor,

I had come with a complaint against the Barclays Bank in January'09 and the wrongly levied fines and

charges on the credit card we held with them. I write with immense relief and gratitude that the charges have been

reversed by them and I have received a letter from them to that effect.

When the problem had come, I was very harrassed and didnt know what to do as they were not replying to

any of our queries and simply levying the fines. The phone calls we were receiving from them were the final

straw. I happened to surf the net and saw the website of the Consumer Guidance Society of India and thought that

maybe approaching the society would atleast show me a way to tackle the problem. I was guided to your Karghar

office wherein I met you and Mr. Santosh Shukla. It was a relief to know that I was not alone in my fight. I went

back assured, hopeful of a solution.

Today, I stand vindicated in my fight against the Bank - all thanks to the Consumer Guidance Society! Your

support has ensured a speedy solution to something that I was battling alone for many months. I am going to

ensure that everyone I know as a friend or otherwise comes to know about this society that fights for their rights.

Thanks once again!

Regards

A.Prabhavati

Hi

The purpose of this letter is to make common consumers aware about the law relating to maximum retail

price (MRP) on packaged goods. I had put in a RTI (Right to Information) application to Controller of LegalMetrology, Maharashtra State and requested for the information relating to various laws regarding MRP violation

cases we face in day to days life.

You may want to publish this through your contacts in press and make common citizens award about the same.

1. It has been observed by many of us that many small shops in our locality always charge more money

for essential things like milk, mineral water than the printed MRP. If you try to argue with them, then they

say that extra one rupee or so is for cooling charges for milk or water as the case may be.


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Friends, this is fraud and a big offence under the weights and measures law. Charging more than MRP on

item like packaged drinking water is an offence under rule 23 (2) of the standards of weights and measures

(Packaged Commodities) Rules-1977. The maximum punishment for the same is fine which may extend to

Rs 2000 per responsible person.

So next time your local kirana shop guy asks you one rupee more for a milk bag than printed MRP, Tell him

that in the greed of earning that one rupee extra, he may face punishment of Rs 2000!!!

2. Also one more problem consumers face is in multiplexes,malls and at places like airports. Typicallyyou will find shops in these places selling items like soft drinks, water, biscuits etc at huge premium than

printed MRP. Some smart shops paste new MRP sticker on printed price to show that they are selling at MRP

only.

This is again an offence. A manufacturer can print different MRP for certain stock to be sold through select

channels like airports and if you observe closely, such items are printed with MRP more than normal but with a

clear message that for retail through select channels only.

To make my point clear,for example: Parle Agro as manufacturer of Bisleri can produce two different

batches of mineral water bottles: A and B

Batch A has say 1000 bottles with printed MRP Rs 15 and are sent to local shops/retail stores

Batch B has say 1000 bottles with printed MRP of Rs 40 and a message for retail through select channels only

Now on airport/multiplex, it is perfectly legal to sell a bottle from above batch B at Rs 40 as the taxes have

been paid to government on that Rs 40.However the same shop can not sell a bottle from Batch A at Rs 40. He has

to sell specific bottles MADE FOR THAT CHANNEL.

So friends, please be alert consumer and do not pay more than MRP.In case you find anyone charging more

that MRP, please call immediately office of the controller of legal metrology in Maharashtra on 022-22886666.

Your complaint will be taken down and you will receive a complaint number for further reference.It works and I

have been doing that till date. I always get a complete follow up from that office and actions have been taken on

shop owners.

Thanks and RegardsChinmay D. Gavankar

Mumbai-400020.

Seminar conducted on Consumer Rights at Rotary Club Sunrise

Dear Sirs,

Greetings from Rotary club of Navi Mumbai Sunrise.

I am happy to inform you that our club had conducted a guest lecture by Mr.Santhosh Shukla from Consumer

Guidance Society of India, Vashi, Navi Mumbai.The topic of the lecture was Awareness on consumer rights

This was very well received by our members, so much so that a programme though originally scheduled for

about 30 minutes lasted for more than 1 hour and 15 minutes. Though the topic itself is quite an interesting one

Mr.Shukla handled the same so well generating lot of interest and interaction from the members. There were so

many questions and finally we had to stop allowing questions due to paucity of time. On the whole, it was a very

good programme and we may consider working together to have seminars on this topic for improving the awareness

among the Kharghar residents / housing societies etc.,

Thanks & Regards,

Surya

S.Suryanarayanan


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As part of the World Consumer Rights Day

(15/03/09) celebrations, CGSI, in collaboration with

Values and Perception Improvement Colloquium held

a well-attended seminar on

consumer awareness was

held at the R D National

College conference hall on

14th March.

Topics covered

included energy

conservation, travails of the

telecom industry,

investments in these days

of economic meltdown,

Food - how to be safe, and

Silk - how not be cheated

by spurious silks.

The speakers

included, Ms. Dipti Padwal, who gave tips on

conservation of energy, Mr. A N Shanbhag who spoke

on how to invest in these troubled times Mr and Mr.

Sanjay Fernandes who enlightened the audience on how

to deal with problems faced by mobile subscribers.

Next, Mr. Shailesh Ghodekar explained how one can

prevent bacterial infections which cause many diseases

and Mr. R B Tandav informed one about

how to recognise genuine silk from mixed

yarns.

In his welcome address, Prof

Rajadhyaksha the Chairman of the CGSI,

said that many industries and agencies have

today come under the purview of the

Consumer Protection law. But, he said, the

consumer must also be responsible and not

be lax just because he can get redressespecially in areas which will prove

detrimental to the nation and the world e.g.

misuse of electricity by wasting it.

Responsibility always should go hand in

hand with rights.

Next Mr. Bapu Nadkarni, the

famous cricketer of yester years, addressed the

gathering. Dr. M.S. Kamath, while introducing him, told

Seminar on World Consumer Rights Day Jamna Varadhachary

the audience how Mr. Nadkarni holds the record for

the best bowling figures, ever. But it has not been ratified

nor has he been given Man of the Match or any such

award. Mr. Nadkarni helps many NGOs

and donated a computer when Dr.

Kamath happened to mention that CGSI

needed one.

Mr. Nadkarni said CGSI was an

NGO set up against all odds. They, by

sheer perseverance, got Consumer

Protection made into a law.. all this by a

band of committed ladies. He said

everyone must know their rights and also

know how to get it. CGSI is doing

yeoman service in the area.

ENERGY: Why we need to

conserve it

Next up.. Dipti Padwal from Reliance energy

spoke next about why we should conserve energy. The

subject is a vexing one. With massive shortages in our

country leading to load shedding for 10 hours at some

places. Power generation emits 24% green house gases

in the atmosphere which leads to global warming.

Global warming as

everyone knows causes,

melting of the ice in Polar

Regions which will make the

seas higher. This can inundate

the coastal areas. Mumbai

being one such city, there is a

real danger of that happening

in the near future.

Mumbai has 400 MW

shortfalls in power,Maharashtra 14000 MW and

in the entire country; it is in the

magnitude of 400000 MWs

shortfall.

To build a power plant

it takes 5 years, another 2

years to bring it on stream.

Society NewsSociety NewsSociety NewsSociety NewsSociety News

Mr. A.N. Shanbhag speaks on how to invest

in the current scenario

Mr. Bapu Nadkarni inaugurating

the Seminar


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The best way to ensure that we manage without

too much load shedding is by conserving. It is a paradox

that the very people who are selling power are askingus to conserve, even though they lose on the revenue.

But it is for the good of the consumers. Not only your

bills will be less, but you will also contribute to

everyones well being. She shared some tips and also

handed out a small booklet with all these helpful hints.

Some are listed below:

Switch off lights and fans when not in the room

Switch off all appliances at the plug specially

when using a remote to switch on a. TV, ACs

music systems. When it is over switch it off at the

plug. .Remotes, because they are on standby,

do consume power.

Microwave Oven, Mixers, Switch on only when

actually using it.

Washing machine should only be run on a full

load. A half load uses the same power.

Refrigerator. Buy only those with maximum

stars The more the stars, the less the power

used. Change the temperature setting according

to the weather. Give enough space all round for

air circulation. This helps it work more efficiently.

The main compartment should have space

between containers for air to circulate. But the

freezer can be packed tightly.

Do not keep the refrigerator door open when

deciding what to take out.

Cool food to room temperature before putting it

in the refrigerator.

Lights: Use CFL as it saves 70% electricity. It is

costlier to buy, but lasts much longer and brings

down the consumption saving you energy bills.

It is win win situation.

Use of electronic chokes also saves consumption Use of natural light instead of drawing curtains

and putting on lights.

Use table lamps for reading work; it will direct

the light to your work area.

Peak demand for power is between 10 am and 8

pm. Try and put on your geyser, washing machine

etc before or after that time.

A storage geyser is better as it heats up and keeps

is hot for some time.

Ironing: iron things needing hottest setting first

and later, when lighter clothes are to be done,

you can even switch off the iron and use the

remaining heat. Never iron just one garment, as

that is wastage of power.

Never keep AC setting lower than 24 C.

Computers; Lap top uses the least power. and

monitor of a desk top most. Switch off the

monitor when not working on it. Dont leave it

on screen savers.

Solar panels are now available for 25000/- theselast for 25 years with practically no maintenance.

Perhaps one can thing of those options.

All common sense tips, but she said we need to

put it into practice. This will bring the energy bill down

and be beneficial to the country.

Later on, Mr. A N Shanbhag a well known

writer on Investments spoke on Investments in todays

market. He said one can distribute the wealth to spouse,

children and relatives. This prevents taxation in the

donors hands. He said we think India has the lowesttax. At one time it was 94% on the highest slab. Now it

is much less just 33%.But we do not realise that the

indirect taxes levied like VAT, service tax, education

cess, security transaction tax, constitute a large chunk

of taxes we pay.

He emphasized that good investments would be

Equity based Mutual funds. This has the following

advantages:

Chairman Prof. N.M Rajadhyaksha and

Senior Committee Member B.V. Desai in a lighter moment


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Dividend is tax-free

Long-term capital gains are exempt from taxes.

Short-term capital gains only taxed at 15%

Deduction u/s 80C (ELSS)

But todays\ equity market is volatile

and care must be taken in investing.

Inflation is a major problem. When

calculating for your retirement at age, 30

say, you need Rs X- per month. You invest

for your retirement after 30 years and would

like to have the same standard of living.

Interest rate is average 7%

But with inflation running wild it

stands to reason that your capital base will

be have to be substantially higher to yield

the same amount. After 30 years. It is avexing matter.

A rule of the thumb while investing

would be. Invest a major percentage in

schemes like NSC, Post Office. PPF which

will yield only 8%. This is a safe bet.

Equity may yield higher returns but is

volatile and you may lose a lot of money.

At the end of period, even if the investments in

the equity market drops, your other investments will

be safe.

LIC is another good investment especially when

young. Not only it givers you life cover also gives bonus

depending on the plan opted for.

Some Mutual funds which give fair returns

1 year 3 year

Birla sunlife 13.71% 11.63%

ICI prudential income 16.59% 11.4 %

Relaince 13.94% 10.45%

But the most important point when you invest is:do so after studying the market as well as each

proposals brochure, reading the small print carefully.

Telecom Travails

Mr. Sanjay Fernandes of Tata Telecom tackled

the subject of mobile phones and it myriad complaints.

He started with telling how in 1998 when mobile had

just entered the market there were some 18 million

subscribers It grew to 300 million plus subscribers by

2008. This was both in the cities as well the rural

populace. This has prepaid 85% and only 15% postpaid

subscribers.

India has the lowest tariff and the highest quantum

of talk time.

He gave reasons for someproblems which the customer faces.

Call drops The TRAI allows a 3%

call drops. But obviously this is not

acceptable to the customer.

A main problem is they do not

have enough spectrum to

accommodate the rapidly increasing

customer base. This is something

only the government can rectify They

are not doing it quickly enough.

Call drops may be caused due

to being in places like basement, lifts,

building with thick stone walls

Remedy go outside and talk. If a hill

comes between the tower and where

you are, may be because a tower may

not be nearby. There are no instant solutions to these

problems.

A large number of prepaid card holders do not

submit their residence details to enable the service

provider to set up towers as required in each area.Without which the service provider cannot decide where

towers are needed.

Unsolicited calls. This happens because we give

our visiting card to everyone we meet. This number is

then passed on the people interested in building a data

base and they pay for these numbers. Data base builders

are smart and get addresses/ telephone numbers from

many sources, on payment.

Do not give your visiting cards to all and sundry

to prevent this. Also complain to your service providerand ask them to put Do Not Disturb (DND) on the

numbers.

If it still comes, complain again. First call the call

centre. If no response, call the Nodal person. If that

does not work go to the appellate. But do complain.

Wrong billing: this may be because the subscriber

does not fully understand the plan opted for. Most

Ms. Dipti Padwal elaborates on

how to save energy


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subscribers have no clue

what the actual charges are

for a local call / minute, STD

or ISD. Please read the offer

carefully before opting for

a plan. This happens mostly

in postpaid.

Response from

customer care. This is

caused by heavy traffic.

Also because the turnover

of the operators in call

centres is very high. As a

result one gets raw hands

that are not trained

adequately. As soon as they get trained they leave for

greener pastures.He said the industry is trying to

improve and it will improve. So we need to bear with

the them.

Food safety

Dr. Shailesh Ghodekar enlightened the audience

on safe eating practices.

He said that many ailments have their roots in

contaminated food. The doctor can give only palliative

treatment. The way to go is make some habits ingrained

so the problem can be eradicated.

Bacteria grows in food which we ingest causing

all problems. It grows in raw vegetables and fruits, stalefood, raw meat if not stored properly. Bad water,

moulds, pesticides, and pests like rodents, cockroaches

and flies also cause these bacteria to multiply. Even

things like hair, bidi, and cigarette butts are culprits.

Bacteria grow in the temperatures of 5 to 60 C.

They do not grow when there is no oxygen, like in

canned food. The trick is to store food in the correct

temperatures. Meat, egg etc below 5 C. Never leave the

meats outside put it away immediately.

Vegetables and fruits need to be washedthoroughly under running water to get rid of pesticide

residue.When eating outside, check for hygienic

surroundings before eating at dhabas. Eat only hot food

and hot tea because bacterias get killed with heat.

Wash hands thoroughly with soap before and after

touching food items especially when handling meat to

prevent cross contamination. Eggs : Never eat raw eggs

in any form. It might contain salmonella. Eggs must be

cooked well, do not leave the

yolk lightly cooked and runny.

When buying foodstuff,

look for Agmark, ISI or FTO

marks and also check the date on

the pack. Never buy dented,

bulging can or leakingcontainers.

When marinating meats,

leave it in the refrigerator, not

outside. If in doubt throw the food

away. Try and buy food freshly

daily. If that is not an option put

it away in the refrigerator or a

cool place, immediately.

Always ensure cleanliness in the kitchen, Have

clean vessels, plates. Wash hands before eating. Store

food at the correct temperatures. Following these basic

steps, one can prevent a lot of contamination of food

which leads to illness.

How to detect fake silk

Mr. R B Tandav of the Silk Mark Organization

addressed the gathering. He explained how the

Government has set up A SILK Mark Board. This

organization gives its stamp of genuine of the silk. The

dealer or manufacturer of silk applies to the Silk Board.

They test the material and then stamp it with their seal.

The seal is a hologram given to the silk manufacturer.One should look for this hologram before buying the

silk.

If there is hologram, it means it is genuine silk.

And you will not get cheated with a cheaper yarn mixed

with silk.

If you feel, the silk is not genuine; you can

approach the authorized centre and ask them to test it.

If it is a mixed material, you are entitled to a full refund

of the amount paid, on production of a bill.

They circulated a brochure giving a list of shops

who are members of the Silk Mark their offices in the

country. It also contains tips on how to wash silk. He

said it is better to check and look for the hologram rather

than being cheated of good silk, which is what you are

paying for.

Both the moderators Dr. M. S. Kamath and Prof

N. Israni did an excellent job. The session ended with a

vote of thanks.

At the interactive session (from L to R): Mr. R.B. Tandav,

Dr. Shailesh Ghodekar and Mr. Sanjay Fernandes


10/20


Over the last two months, the CGSI has organized

seminars on investment awareness in collaboration with

SEBI and MET Colleges. This was arranged on four

Saturdays at the MET College premises. The model was

named after Kuber, the God of wealth. Its purpose: to

teach the audience how to create wealth.

The course content was decided at meetings ofSEBI personnel, MET faculty, Dr. M. S. Kamath and

Mr. Palav of CGSI. Among those who addressed the

gathering on the various days were Prof Vijay Page,

Dean of MET, Mr Rajendra and Kranti Purlkar of SEBI,

Sriram Siva Krishna, VP Stanchart Bank, Priyadarshi

Srivastava of IDBI, Prof Amdekar and Prof Godbole of MET.

Mr R P Vyas, Mr S Palav and Dr M S Kamath

compered the seminars, flagged off by SEBI Executive

Director, Mr. RadhakrishnanNair on March 28. Nair

gave a brief account of why SEBI was created - it was

initiated to protect the unwary investor, developinvestments and act as a regulatory authority to ensure

transparent dealings.

Among the audience were many young students,

who will soon be earning and investing their hard earned

money. Prof Page said that for every thing in this world,

training is needed. You do not ride a bike without

learning how to. You go to school and learn your three

Investment Awareness and Protection Programme - Kuber Model

Jamna Vardhachary

Rs and later go to college and learn more. Then why is

it that one just rushes headlong into investment. No

teaching, no idea of the pitfalls that awaits one. This

programme was designed to give basic dos and dontswhen embarking on investing.

He emphasized that the efforts of CGSI should

bear fruit in teaching the public how to invest, what

pitfalls to avoid and above all, try and ensure stringent

action against those who take the investor for a ride.

Mr S D Puri, a senior advocate, chaired one of

the sessions. He started off by telling the audience about

how he lost some money during the Harshad Mehta

scam period. Later on, he advised getting thorough

knowledge before embarking in investing.

During the sessions, basics about banks,

investment banks and commercial banks were

explained. The workings of mortgages, savings banks,

forward market, options, futures, investment companies,

mutual fund managers, were also touched upon.

Demats were given special attention and its

functioning was explained in detail. It was told that most

banks have Demat accounts for their clients. This was

started in 1996. 95% of shares are held in a

dematerialized form. That means they are on thecomputer. If you want to repossess them in physical

form, applying to your participating bank can do it. One

gets regular statements and one can even access it on

email.

Buying and selling is easy. The only essential is

an intimation slips like cheque books. Delivery

instruction is entered. Each bank charges fee for this

service at different rates but within a stipulated range.

A pan card is necessary to open a Demat account.

The other topic of interest was.. What are credit

and debit cards and how you should be careful when

running up credit card bills. It was explained that people

are allowed to pay a small part of the credit card dues.

But they do not realise that by paying a small part of

your credit card bill, the balance attracts a high, usurious

rate of interest. It was advised that a debit card is safer

as you cant use it unless you have a balance in your

bank.

Mr. M.V. Kini inaugurates one of the sessions


11/20


The next topic was difference between an investor

and a speculator: An investor is someone who invests

wisely, and does not get influenced by rumors of high

rate of interest etc. But a speculator goes for high risk,

which may or may not give him the promised high rate

of return. Speculation is high risk business and you may

end up by losing your investment. It is better to be slow

and safe than run the risk of losing your capital.

If you want life cover, the most sensible thing is

to go for LIC. These

are pure life cover

products with

minimum premia.

Specially, if you take

life insurance at a

young age, the

premia is quite low.

Schemes likeUTI and other life

cover, personal

accident linked

policy with the

deposits cost much

more. The

commission on these is also much higher. Personal

accident can also be taken from non life insurance

companies and they are quite cheap.

Debentures, derivatives and mutual funds too

attracted attention. Debentures are borrowings bycompanies. If they run into problem, the debenture

holder will get his payment before those holding equity.

Derivatives; These are instruments where you,

can leverage small amount of investment into a larger

portfolio. But it carried a lot of risk as well

Mutual Funds. These fund managers take money

from individuals and financial institutions and invest it

in various equities. They have many plans You can opt

for whatever suits you best. It works out cheaper as

they can invest for you even in small units, in diverse

shares and have a professional management to do the

investing on your behalf.

Tips were given in regard to owning stocks. Those

present were advised that when investing one needs to

understand:

How much are you going to invest?

Object of investing

Financial goals,

How long will you keep an investment active

How much of a risk are you willing to take

Asset allocation

Long term strategy.

You need to be regular in investing

You must be disciplined and not get swayed byrumors as too much information is floating around

You must learn to take losses as a learning tool

because one does not always gain.

Diversifying is the key

Building wealth is a slow process. You can not be a

millionaire overnight, so do not trust people who

try and make you go in that direction. Chances are

they are misleading you.

There are always black sheep in the trade. Learn to

recognize them

Stock market : There is a primary and a

secondary market.

Primary market is an IPO, the price is fixed in

consultation with the promoters. Once that price is

decided, it is put on the market.

Once the initial primary market is done, the shares

then move to the secondary market. There are various

stock markets like Bombay stock exchange, national

stock exchange. Here the buyer and the seller of a stock

get together to buy or sell at a price negotiated by thetwo.

An investoris someone who invests

wisely, and does not get

influenced by rumors of

high rate of interest etc.

But a speculator goes for

high risk, which may ormay not give him the

promised high rate of

return.

Interested audience (from L to R): Mr. Subhash Palav,

Ms. Kranti Patankar and Prof. Godbole


12/20


The stock markets also track the Indices. The

Index is calculated share price x no of outstanding

shares, then multiply by free floating market.

Market capitalization: This is arrived at when you

deduct the shares held by the promoters which do not

come into the market. Only the balance is to taken into

account for capitalisation.Bids change every minute depending on who

wants to sell at what rate and who is willing to buy at

the rate offered.

Brokers come into the picture to bring the two

together. Once a seller gets a buyer, the buyer has to

settle the amount due within a day. This is handed over

to the seller. If the buyer defaults, the broker is held

responsible. The shares then are put in to an account

and then auctioned off and the seller paid.

A challenge to new investors. Things to keep inmind.

Expected rate of returns. Decide your priorities

Do not go by market rumours.

Such rumours can lead to your downfall.

When you lose, use that as a learning tool, learn

from it.

Dont take blind decisions.

Read and understand all balance sheets whichcompanies send you instead of throwing it into trash

can

Read all the newspapers financial columns to

understand which way the scrips are moving. This will

make you understand the market.

If you do not understand, go to someone who

does and learn.

There are some products which will sell even in

a downturn. Go for such scrips.Do research on demographic buys so you know

who buys what, when.

Just because a scrip is cheap it does not mean is

not good.

The reverse also is true. All high priced scrips

need not necessarily be the best buy.

If you have made the targeted returns, it might

be a good idea to close that deal and invest afresh. Think

about it.

Above all read and understand all the rules and

regulatory details which will teach you where not to

venture.

Often, we do not know when to get out, especially

when the market is going down. It is better to cut your

losses.

Often the broker will tell you to buy when the

market is down. It may be an advice only to get his

brokerage. So check before you follow that advice.

When to buy, Indecision causes problems. Oftenit is not indecision but inertia. So, keep looking at your

portfolio regularly. Markets change fast so it is better

to keep abreast. Dont go by rumors.

Someone suggested one way of learning.

Do your investments on paper. A good idea is a

certain percentage in safe scrips deposits in nationalized

banks, Post office etc Fixed deposits in good companies.

It may have low returns.

Then invest some in scrips which are a little risky.

This will give a higher rate of returns and even if you

lose, you will still be safe. Your safe scrips will even it

out.

Try to do this for some six months and see if you

are on the right track. Then venture into the real market.

SEBI is supposed to be there for Investor

protection. Could they have forecast the 08 crash?

Mr. R. P. Vyas conducts the meeting with panache!


13/20


Investors should not steered into buying some

scrips by giving slanted information.

Even the media often plays a part in this by

plugging some scrips over others. This could be a quidpro quo for advertisement revenues.

They also call experts to talk on the subject.

These persons are changed often depending on who is

in favor. It is not necessarily their expertise, but many

other factors play a part in choosing these experts.

Investor should be given correct timely

information.

Fair trading, No rigging should be indulged in

Insider trading which is rampant ought to becurbed to provide a level playing field.

Exit route should be available to everyone.

If a firm changes hands, and a new management

takes control, investors should be allowed an option to

exit.

But the best way to be a prudent investor is

Be aware, read up, and learn from your mistakes.

This is like an exam and more homework you

do, the better you will fare.

Be conservative and prudent.

But do take some risks, after due diligence. The

higher yielding scrips always carry some risks, but it is

worth taking, after careful study.

Decide on length of time you want to hold a

particular scrip or FD.

And above all do not succumb to greed. You can

not become a millionaire overnight. It is a slow and

steady process with many ups and down.

Each session ended with an oath which was taken

by all present:

I, hereby solemnly swear that as a member of

the Kuber programme I, shall proactively study,

understand and assimilate the opportunity and risk

involved in the investment of shares, bonds debentures

and other related financial instruments, offered at the

market place by corporate houses, financial institution

and other public and private players, with a view to

evolve and deploy a balanced investment policy,

contributing to the development of a stable, wealth

maximising platform for sustaining a stable and robust

financial market at home and abroad, while adhering

to the statutory and regulatory framework.

All the students were given participation

certificates. Dr. Kamath announced that since these

sessions were well received and this was only a basiccourse, he would, if there was demand he would arrange

seminars for advanced level training. The CGSI is

especially thankful to the faculty of MET who helped

in arranging the seminar.

Prof. Vijay Page, Director General of MET with Mr. Amonkar.

(from L to R): Mr. Radhakrishnan Nair and Prof Vijay Page

exchange pleasantries as Mr. B.V Desai looks on.


14/20


(from L to R): Dinesh Bhandare and Mr. Kamaal

Farooqui (Chairperson, Consumer Protection Council)

at a public meeting.

Mrs. Jamna Varadhachary and Dr. S.G. Bhat with Dr.

Meena Mehta of S.N.D.T College, at an awareness

campaign held in that college.

Dinesh Bhndrae addresses an awareness programme at

Green Fingers School, Kharghar.

Section of the audience at CGSI meeting at Kharghar Rail

Vihar on consumer awareness.

Gajanan Patil enthralls the students of Nirmala Niketan

with his talk on food adulteration.

Dinesh Bhandare talks of consumer empowerment at a

seminar at Dignity Foundation.

News in PicsNews in PicsNews in PicsNews in PicsNews in Pics


15/20


It is a brand new financial

year and time for a brand new start.

Yes, the financial climate remains

inclement with the West in the

middle of a recession and the rest

of the world struggling to cope with

the collateral damage. The effect on

the stock market, considered as the

barometer of the economy, has been

nothing less than brutal. And

investors, risk spooked as they are,

dont know which way to turn. Well,

all I will say is that it is important

that one doesnt get carried away and

continues life with feet firmly on the

ground. Therefore, in an effort to

keep things in perspective I have

compiled a list of some basic

financial doctrines that one should

follow no matter how much the

panic (or in good times, theexuberance) all around.

1. PPF A sine qua non

I will go to the extent of saying

that without exception, every

Indian, male or female, whether

employed or having a business,

In the WIn the WIn the WIn the WIn the Wonderland of Investmentsonderland of Investmentsonderland of Investmentsonderland of Investmentsonderland of Investments

Make a Brand New Start in the New Financial YearSandeep Shanbhag

married or unmarried, should have

a PPF account ticking for them.

Leave aside the tax deduction, leave

aside the 8% tax-free interest this

is your social security. Over 16

years, an annual contribution of Rs.

70,000 grows to over Rs. 21 lakh

which is almost 30 times the annual

investment. This capital built over

time can serve multiple purposes

like catering to the

education of

children, medicalemergencies and

even retirement.

Have an

account in the name

of each and every

adult member of the

family, even if not a

taxpayer at present.

Invest as much as

you can up to the

maximum limit ofRs. 70,000 per

annum. Remember, Rs. 70,000 can

be invested in each account

separately. Invest at the beginning

of the year. Do not shy away from

PPF under the mistaken notion that

funds are locked up for 16 long

years. Yes, the term of PPF is 16

years but the average lock-in is just

six years. However, do not use the

premature withdrawal facility,

unless there is an emergency.

2. Arrangement between you &

your spouse

Agreed, husband and wife

have one mind and one soul. But

not for income tax. It is crucial to

have separate joint accounts, one for

husband and wife and the other for

wife and husband, even if one of

them is not assessed to tax. Payment

of EMIs, credit card bills and even

investments etc. should be from the

account of the person who is

actually liable to pay for the expense

or investment. This will help

tremendously, especially while

filing your tax return in the new ITR

form which requires individual

disclosures of high value

transactions.

3. Buying a House

I find that very often, property

is bought in the name of his wife by

the husband using his own funds.

Do not buy any housing property,

residential or otherwise, in the name

of the spouse with your funds. Do

not do so even if you already

possess a house. This creates

insurmountable difficulties later on,

especially when the house is to be

sold.

4. Housing Finance

In fact, even if you have the

wherewithal to purchase your own

house, it is better to opt for housing

finance. Tax breaks are available

only on borrowed funds and not on

the use of owners equity. Moreover,

in most cases, you will find that the

direct cost of borrowing is muchlesser than the tax saved. Real estate

can be co-owned. Buy the property

with both husband and wife having

an equal share. The loan should also

be taken equally and the interest and

principal payments for the same

should be made separately by each

from their respective bank account.


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If the above is carried out,

each is entitled to an interest

deduction of up to Rs. 1.5 lakh

under Sec. 24 and a principal

deduction of Rs. 1 lakh under Sec.

80C. So totally between the both of

you, up to Rs. 5 lakh of income will

escape tax!

5. Life Insurance

Life insurance is a necessity,

if and only if, the demise of the

bread winner would put immense

financial pressure on the family

members left behind. If that is not

the case, leave insurance alone.

Every product has its cost and so

does insurance. Do not buy a

product you do notneed or buy excessive

insurance which injures

your financial health. In

your effort to provide

for the future of your

family, do not rob it of

its present! Insurance is

like a life saving pill that

is to be administered

only when you need it.

Otherwise, the side-

effects of the pill maybe worse than the

imaginary disease. In

any case, do not buy life

insurance only because it forces

compulsory savings or it saves

taxes. Do not buy insurance for

your child. The childs death,

howsoever devastating on your

emotional health, would make no

difference to your financial status.

If you are so inclined, make

investments in the name of the child

such that by the time he/she

becomes a major the funds would

come in handy for needs such as

marriage, further education, setting

up of a business etc.

If you do need a life cover,

go in for low-premium, high-risk

cover policy such as term insurance.

In general avoid high cost

endowment and ULIPs.

6. Mediclaim

Mediclaim is a must for all,

taxpayers or otherwise, rich or poor,

young or old, in view of the highcost of hospitalisation. If you

havent bought a Mediclaim policy

so far, do so NOW! There is a tax

break of Rs. 15,000 available, but

that is not the point. Mediclaim is

for the good of you and your family

members the tax cut is just an

added benefit.

7. Invest in equity mutual funds

which have a track record

It is next to impossible to build

wealth without equity exposure.

Note that I use the word wealth

and not capital. Wealth is when your

capital brings a smile to your face.

Saving a part of your salary in bondsor FDs is not going to do that.

8. Do not invest in equity directly

unless you know what you are

doing

This is more of a corollary to

the above point. Mutual funds exist

to cut stock market risk. People do

more research and homework on the

next cell phone they intend to buy

than the next stock. Hard earned

money is invested in a hot stock

based on the recommendation of a

friend, acquaintance or a stock

market guru. I know of a friend who

bought a stock based as he happenedto listen to a conversation between

two strangers talking in the gym that

he goes to. Needless to say, he is

still waiting for the stock to move

up. Remember, the only way to

double your money quickly is to

fold it into two. Otherwise, invest

with a quality mutual fund,

regularly, as much as you can,

whenever you can.

9. Budget your spends

Last but not the least, budget

your monthly expenses and make

your investments at the beginning

of the month, each month, month in

month out. This way, there is no

way that you can overspend and

defer savings to the next month.

Someone I know used to do this but

then end up overspending on her

credit card. I actually advised her to

take a pair of scissors and cut thecard into two. It took six months to

get her finances back into shape. But

today, she is debt free and financially

much better off than what she was a

year ago.

To conclude

You will appreciate that the

abovementioned points really do not

need much of ones time and effort

to put into practice. They also do notdepend upon the level of the Sensex.

In other words, whether the index

reaches 5000 or 25000, these small

things make all the difference

between financial health or the lack

of it.


17/20


Husband and wife are like liver and kidney. Husband

is the liver and the wife is the kidney. If the liver fails, the

kidney fails. If the kidney fails.. the liver manages with

other kidney!!

[][][]

Three dreams of a man:

To be as handsome as his mother thinks. To be as

rich as his child believes.

To have as many women as his wife suspects.

[][][]

Theres only one perfect child in the world and every

mother has it.

Theres only one perfect wife in the world and every

neighbour has it.[][][]

Generation Next Motto:

Neither will I marry

Nor I will allow my children to marry!!

[][][]

Whats the difference between Drug and Wine?

Drug is like a girlfriend that comes with an expiry

date. Wine is like a wife, The older it gets, longer the chatter!

[][][]

The Japanese have produced a camera that has such

... such fast shutter speed that it is capable of taking a

picture of a woman with her mouth shut!!!

[][][]

A banker is a fellow who lends you his umbrella

when the sun is shining and wants it back the minute it

begins to rain.

[][][]

An Indian in Arabia

An Indian, a German and a Pakistani got arrested

consuming alcohol which is a severe offence in Saudi

Arabia, so for the terrible crime they are all sentenced 20

lashes each of the whip. As they were preparing for their

punishment, the Sheikh announced:

The Best MedicineThe Best MedicineThe Best MedicineThe Best MedicineThe Best Medicine Its my wifes first birthday today, and she has asked

me to allow each of you one wish before your whipping.

The German was first in line, he thought for a while

and then said:

Please tie a pillow to my back.

This was done, but the pillow only lasted 10 lashes

and German had to be carried away bleeding and crying

with pain. The Pakistani was the next up. After watching

the German in horror he said smugly:

Please fix two pillows to my back.

But even two pillows could only last 15 lashes and

the Pakistani was also led away whimpering loudly.

The Indian was the last one up, but before he could

say anything, the Sheikh turned to him and said:

You are from a most beautiful part of the world

and your culture is one of the finest in the world. For this,

you may have two wishes! Thank you, your Most Royal

and Merciful Highness, Indian replied.

In recognition of your kindness, my first wish is

that you give me not 20, but 100 lashes.

Not only are you an honourable, handsome and

powerful man, you are also very brave. The Sheikh said

with an admiring look on his face.

If 100 lashes is what you desire, then so be it. And

what is your second wish,? The Sheikh asked. Indian

smiled and said, Tie the Pakistani to my back!!!

[][][]

Four monks decided to go into silence for a month.

They started out well enough, but after the first day, one of

the monk said, I wonder if I locked the door of my cell

at the monastery before we set out.

Another monk said, You fool! We decided to keep

silence for a month, and now you have gone and brokenit!

The third monk said, What about you? You have

broken it too!

Said the fourth, Thank God, Im the only one who

hasnt spoken yet!

[][][]


18/20


CONSUMER GUIDANCE SOCIETY OF INDIA

BLOCK J, Azad Maidan, MAHAPALIKA MARG, MUMBAI 400 001.

Tel: 2262 1612 Fax: 2265 9715 E-mail: [email protected] Website: www.cgsiindia.org

MEMBER, CONSUMER CO-ORDINATION COUNCIL AND CONSUMERS INTERNATIONAL(CCC and CI are coalition of Indian and federation of world consumer organisations respectively.)

Registered under The Societies Registration Act XXI of 1860 (Ref. No. Bom. 33/1966 GBBSD 4/4/66) and under

the Bombay Public Trusts Act XXIX of 1950 (Reg. No. F-1381 (Bom.) 20/5/1966).

Printed, Published and Edited by Dr. Subraya Giridhar Bhat on behalf of Consumer Guidance Society of India,

and Published from Block J, Azad Maidan, Mahapalika Marg, Mumbai - 1.

and Printed at Emkay Printers, Gala No. 47, Bharatbazar Ind. Est., Gandhi Nagar, Worli, Mumbai - 18. Tel : 2492 4094.

Report on Consumer Awarness Programme

On March 19, the

SNDT campus played host

to a seminar on Consumer

Awareness on 17the March

2009. The CGSI had been

invited to hold the event by

Dr Meena Mehta, Reader, B

M Nanavati College of

Home Science, SNDT,

Matunga.

Dr. S. G. Bhat and Ms

Jamna Varadhachary spoke

on the occasion. Mrs

Varadhachary talked about

what the CGSI actually does

and gave the students tips

on how to be an aware

consumer and not to be

taken in by advertising. Dr

Bhat explained the technical points of adulteration, of milk, edible oils, spices etc. and to be vigilant on quality

and quantity. He advised the audience to avoid junk food and street food.

The students received the talk well and raised many questions.

SNDT Students engrossed in the session.

An Appeal

CGSI needs members to volunter Three Hours a Week for work relatedto consumer issues. As far as possible, the work will be in an area close to the

residential place or place of work of the volunteer. Kindly contact CGSI office

with your Name, Address and other details.


19/20



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Newspaper Reg. No.: RN 20897/72

. Keemat Keemat May 2009

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