The grapevines are abuzz with the freebie topic post the election results in Karnataka. The opinion of the tax payer has become insignificant as the policy makers think it to be a waste of time to consult them on how they want to squander away the tax payer’s hard earned money.
Last night a proposal to amend the finance bill 2023 was announced. The long-term tax benefit for Debt, Gold and FOFs investing in foreign MFs, if they invest less than 35 percent of their assets in Indian equities, will be stripped off. Such mutual funds will now attract short-term capital gains tax regardless of holding period. These amendments will impact mutual fund investors for investments made on or after April 1, 2023. This would mean additional tax collections for the government next year onward.
Indian banks are likely to not face the same ALM (Asset Liability Mismatch) crisis that has gripped a few US banks and Credit Suisse. If you haven’t read our previous article on the main issue plaguing the western banking system (https://arunasset.com/svb-bank-collapse-whats-asset-liability-mismatch/), then we suggest you do so before going ahead with this.
Silicon Valley Bank’s failure is the second largest bank failure in U.S. history, Washington Mutual Fund being the largest in 2008.
The catastrophe was not driven by credit problems but mismatch of assets and liabilities.
On 25th January, short-seller Hindenburg Research published a report beginning a series of well planned and co-ordinated attacks on the Adani Group.
Soon enough, George Soros the 92 year old speculator billionaire joined the issue of attacking the quality of India’s democratically elected polity. Best known for his attack on the British pound in 1992 he has since used his billions to fund political and public causes in more than 120 countries around the world. In 1997, he made huge bets against the Thai and Malaysian currencies and precipitated the Asian financial crisis that brought down economies of Indonesia, Thailand, South Korea and Malaysia. This also brought about regime changes in some of those countries. Soros is hoping that the Ukraine war will bring down Putin and Russia. With national elections round the corner, Soros is also hoping that such coordinated attacks will bring in a regime change in India.