Welcome to another insightful session of "Through The Show," where we analyze crucial financial news with our expert, Anshuman Tiwari. Today, we delve into various topics ranging from gold bonds, telecom fines, demat accounts, banking scams, to global market updates. Let's get started!
Gold Bonds and Government's Strategy: Host: Anshuman sir, the government seems enthusiastic about the success of Sun Gold Bonds (SGB). Can you shed light on the increased target for gold bonds in the upcoming financial year?
Anshuman: Absolutely. Due to the rising interest in gold bonds and their attractive returns, the government has raised the target for receipts from gold bonds by 10 percent in the financial year 2024-25. The popularity of Gold Bonds is evident from the excellent returns they provided last year, beating inflation and offering a fixed return of 2% to 2.5%. From the government's perspective, issuing gold bonds has become a new avenue for obtaining loans, with around Rs 2,852 crore borrowed in the previous year alone.
Telecom Fines and Regulatory Actions: Host: Shifting gears, we've witnessed fines imposed on telecom companies for failing to curb unwanted calls and messages. What's the significance of this regulatory action?
Anshuman: This marks a significant crackdown on telemarketing and pesky calls. Telecom regulator TRAI has levied a fine of Rs 110 crore on companies failing to control such communications. Notably, this enforcement includes freezing 9.9 lakh bank accounts and closing around 2.8 lakh to 3 lakh mobile connections associated with fraudulent calls.
Demat Account Trends and Concerns: Host: Anshuman, the surge in new demat accounts is notable, but concerns arise with a large number lacking nominees. How critical is this, and what challenges does it pose for regulators?
Anshuman: The sharp increase in demat accounts, with around 10 crore lacking nominees, raises concerns. Not having a nominee complicates identifying legal heirs in case of the account holder's demise. It's crucial for investors to follow regulations, and regulators like SEBI have extended deadlines for adding nominees. The industry needs to address this issue to ensure the smooth transfer of assets.
Banking Scams and the Case of Bank of Baroda: Host: Anshuman, we've encountered reports of a gold loan scam within Bank of Baroda. Could you provide insights into this situation and its potential implications?
Anshuman: Bank of Baroda is facing another controversy with employees allegedly opening fake accounts for gold loans. This unethical practice involves manipulating gold loan targets by creating fictitious accounts and lending money to friendly customers. It's a concerning trend, especially considering Bank of Baroda's recent involvement in other controversial cases.
Global Market Updates and Powell's Statement: Host: Shifting our focus globally, Federal Reserve Chairman Jaram Powell's recent statement on interest rates has stirred the markets. How are investors likely to interpret this?
Anshuman: Powell's clear stance on not considering an interest rate cut anytime soon has affected markets. Despite market expectations for rate cuts, Powell emphasized waiting for a decline in inflation to 2 percent. This suggests a cautious approach, impacting global markets, including currencies.
Closing Thoughts on LIC and Market Milestones: Host: Anshuman, LIC's stock has reached significant milestones recently. What's your take on this development and its implications?
Anshuman: LIC's stock has witnessed a rally, crossing Rs 1000 and reaching new heights. While the reasons for this rally may not be immediately clear, it aligns with the recent positive momentum in PSU stocks. Investors should monitor the situation closely, considering the volatility in LIC's valuation.
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Conclusion: In conclusion, today's discussion with Anshuman Tiwari provided valuable insights into diverse financial topics. From government strategies with gold bonds to regulatory actions in the telecom sector and emerging concerns in demat accounts, the financial landscape is dynamic and filled with opportunities and challenges. Stay tuned for more financial updates and analysis. Grazie mille!