EPFO - Two Adani stocks have "Captive Investors" who are EPFO subscribers.

Adani Enterprises and Adani Ports & SEZ are among the Nifty 50 stocks in which EPFO invests the majority of its equity funds; these stocks have plummeted since Hindenburg Research's allegations against the Adani group.

Source: The Hindu Newspaper 26, March, 2023
Up to 85% of EPFO's equity investments are earmarked for ETFs that track the Nifry 50, which included Adani Enterprises in September 2022.

Several sizable investors may have reconsidered their exposure to the Adani group in the wake of the Hindenburg Research report. However, a sizable pool of money has persisted in investing in two Adani stocks, including the company's flagship Adani Enterprises, and will continue to do so through at least September of this year unless its trustees decide to change their approach to investing at their meeting this week.

The Employees' Provident Fund Organization (EPFO), the largest retirement fund in India, invests 15% of its corpus in exchange traded funds (ETFs) linked to the NSE Nifty 50 and the BSE Sensex. EPFO is responsible for managing the retirement savings of 27.73 crore formal sector employees.

Keeping Adani stocks

Up to 85% of the equity investments made by the second-largest non-banking financial institution after the LIC of India are allocated to ETFs that track the Nifty 50; these ETFs added Adani Enterprises in September of last year and have continued to hold the stock for another six months for the period beginning on March 30 this year.

Since September 2015, when the EPPO opened up to equity investments by investing 5% of member contributions received in the form of supplemental contributions into ETFs, the index has increased by 50 points. Following a recent review of the index by NSE Indices, a division of the NSE, the APSEZ stock has also been kept in the Nifty 50 for the upcoming six months, along with Adani Enterprises.

Savings at stake

Neelam Shami Rao, the Commissioner of the Central Provident Fund, did not respond to questions posed by The Hindu on March 23 regarding the EPFO's exposure to the stocks of the Adani group, whether or not its fund managers had received any directives to avoid making new investments in those stocks in order to protect retirees' retirement funds, and whether or not a shift away from investments based on the Nifty 50 was being considered.

The EPFO is anticipated to have invested an additional Rs. 38,000 crore in ETFs during 2022–2023 out of the fresh contributions totaling an estimated Rs. 2.54 lakh crore received into EPF members' accounts. As of March 2022, the EPFO had Rs. 1.57 lakh crore invested in ETFs.

Trustees unaware

When contacted by The Hindu, trustees of the EPFO stated that they were unaware of the organization's exposure to Adani shares; nevertheless, the matter may come up at a two-day board meeting that would be presided over by Union Labour and Employment Minister Bhupender Yadav and start on Monday.

At the board of trustees meeting, it is anticipated that the EPFO's investment income for this year and the interest rate to be paid to members will be discussed. The EPF rate dropped to a 45-year low of 8.1% last year.

declining returns

According to a government official, because it has only recently started investing in Adani Enterprises, its exposure to the company's flagship stock is significantly lower than its overall exposure to APSEZ shares over the years. In September 2016, EPFO increased its equity exposure to 10% of new inflows, and in May 2017, it increased it further to 15%.

The investments EPFO has made in Adani, however, will reduce its returns on investment and may have an impact on the annual EPF rate paid to its members given the sharp decline in the price of Adani stocks since January 24.

58.5% lower than its 52-week high level of Rs. 4,190, attained in December 2022, the Adani Enterprises stock was down nearly 49% from the price levels at which it was listed in the NSE Nifty 50 as of March 24. The price of APSEZ stock has dropped nearly 19% since the start of 2022–2023 and is now more than 35% below its 52–week high of Rs. 987.8, set in September 2022.

SOURCE: The Hindu Newspaper, 26, March(Article by VIkas Dhoot)

LANDMARK JUDGMENTS of Justice DY Chandrachud & How CJI is appointed ?

How CJI is appointed ? 

The outgoing CJI starts the process of choosing the replacement after receiving a communication from the Law ministry, in accordance with the Memorandum of Procedure (MoP), which controls the procedure of appointment of judges in the higher courts.

According to the MoP, the senior-most judge on the supreme court is deemed qualified to serve as CJI, and the opinions of the departing head of the judiciary must be obtained "at an opportune moment."

The MoP, however, is silent regarding the deadline for starting the process of proposing the name of the new CJI.

Judge DY Chandrachur is renowned for his progressive views and focus on personal liberty, rights, and privacy in his rulings, from decisions on privacy to gender rights.

Justice DY Chandrachud took oath as the 50th Chief Justice of India (CJI). Union Law Minister Kiren Rijiju had earlier tweeted that justice Chandrachud will be India's CJI with effect from November 8 and will take oath on November 9.

Justice Chandrachud succeeded Justice UU Lalit. Chandrachud will serve as the CJI for two years, leaving office on November 10, 2024.

Who is Justice Chandrachud?

Justice Chandrachud, who was appointed to the Supreme Court on May 13, 2016, is the son of YV Chandrachud, who served as Chief Justice of India for the longest period of time, from February 22, 1978, to July 11, 1985.

From October 31, 2013, to May 12, 2016, Chandrachud was the Chief Judge of the Allahabad High Court. From March 29, 2000, till his appointment as Chief Judge of the Allahabad High Court, he served as a judge of the Bombay High Court.

The Bombay High Court recognised Chandrachud as a senior counsel in June 1998, and he later held the position of Additional Solicitor General up till his nomination as a judge.

Justice Chandrachud graduated with a BSc in Economics with Honors from St. Stephen's College in New Delhi. He then went on to earn his LLB from Campus Law Centre in Delhi University and his SJD and LLM from Harvard Law School in the United States.

He was a visiting professor of comparative constitutional law at the University of Mumbai and also practised law at the Supreme Court and Bombay High Court.

Top judgments made by Justice Chandrachud

Among legal and Lutyens circles, Judge Chandrachud is regarded as a revolutionary legal fighter who has delivered numerous landmark decisions that have advanced the cause of social change, particularly in the areas of gender rights and privacy.

Overturning his own father's verdict on privacy rights

The Supreme Court's nine-judge panel unanimously declared in August 2017 that the Indian Constitution upholds the basic right to privacy. Justice Chandrachud, along with Justices Khehar, RK Agarwal, and Abdul Nazeer, wrote the majority judgement in Justice K.S. Puttaswamy v. Union of India. He acknowledged that the right to life is inextricably linked to the right to privacy and dignity.

He had called the 1976 ruling in the well-known ADM Jabalpur case, in which his father was part of the majority finding by a five-judge constitution bench, "seriously defective" in his historic opinion proclaiming privacy as a basic right.

By a vote of 4:1, the five-judge panel ruled in the ADM Jabalpur case that Article 21 is the exclusive source of all rights to life and personal liberty and that when it is suspended, those rights are completely lost.

Entry of women in Sabarimala temple 

In the Sabarimala dispute (Indian Young Lawyers Association v. State of Kerala), Judge Chandrachud sided with the right of women between the ages of 10 and 50 to visit the Sabarimala Temple and ruled that denying them entry would be a breach of constitutional morals. He believed that such a rule violated women's individuality, liberty, and dignity. In a crucial regard, he pointed out that the decision to forbid menstruation women from entering a religious setting violated Article 17, which forbids "untouchability," since it implies that women are impure.

Decriminalisation of Section 377 under the Indian Penal Code 

Judge Chandrachud ruled that Section 377 was a "anachronistic colonial law" that infringed the fundamental rights to equality, freedom of expression, life, and privacy in Navtej Johar v. Union of India. Chandrachud stated in a separate concurring opinion that the decriminalisation was a first step in securing constitutional rights for the LGBT population.

On the Aadhaar Act 

In Honorable Justice K.S. Puttaswamy v. Union of India, he was the lone contrarian, holding that introducing Aadhaar as a Money Bill was illegal. Aadhaar Act issues regarding an individual's privacy, dignity, and autonomy have also been reviewed by him.

The arrests at Bhima Koregaon  

Justice Chandarchud dissented and brought up the issue of the rights of the accused in the Romila Thapar v. Union of India case, which involved the arrest of five human rights activists for their alleged participation in the violence at Bhima Koregaon and for being complicit in a plot against Prime Minister Narendra Modi. He had urged a Special Investigation Team to look into the arrests and said that the question was whether the arrests violated the accused's fundamental rights to free expression and personal liberty, which are protected by Articles 19 and 21 of the Constitution.

on the decriminalisation of adultery 

In Joseph Shinde vs. Union of India, Judge Chandrachud served on the court panel that decided to decriminalise adultery as a criminal offence. Chandrachud agreed with the majority view and stated that Articles 14, 15, and 21 of the Constitution were breached by section 497 of the IPC. He added that criminalising adultery was founded in patriarchal ideas and had led to centuries of female subordination as he read down section 198(2) CrPC.

On LG vs. CM in Delhi

Judge Chandrachud stated that the Lieutenant Governor is not the executive head of Delhi in his concurring opinion, which is another key ruling with political ramifications for various parties. He ruled that the Chief Minister and the Council of Ministers must lead the executive because representative democracy is a fundamental component of the executive in the case of Government of NCT of Delhi vs. Union of India. The judge added that the LG had no constitutionally guaranteed authority to act independently and was therefore bound by the CM's recommendations.

Twin Towers of Supertech razed

On August 31, 2021, a bench presided over by Justice Chandrachud affirmed the Allahabad High Court's decision and approved Supertech's decision to demolish the twin skyscrapers in Noida on the grounds that they were built unlawfully and in violation of building codes.

On 'Love Jihad': Hadiya case

In the Hadiya case, which was brought by Hadiya's family in 2017, the Indian Supreme Court upheld the legality of Hadiya and Shafin Jehan's union. The underlying argument has been referred to as a "love jihad" allegation in the media. Hadiya's choice of religion and marriage partner was maintained by Judge Chandrachud in his concurring opinion in the case of Shafin Jahan v. Ashokan K.M. He also reaffirmed that an adult's right to choose her marriage partner or religion belongs in her personal space

Before March 31 There Are Five Things You May Do To Reduce Your Income Tax

 

Before march 31 there are five things you may do to reduce your income tax

It is important to ensure you have maximised the tax benefits available to you as the fiscal year comes to a conclusion. There are further actions you can take in addition to using the Section 80C deductions to lower your taxes. Here are some wise tax decisions you should make in the coming days.

1. LINK THE PAN CARD AND AADHAAR NUMBERS
The deadline to link your PAN to your Aadhar is also March 31st. Do this right now if you haven't already. Neglecting to link PAN to Aadhaar could have detrimental effects. From April 1, your PAN will no longer be valid and cannot be filed or quoted for any transactions. Online transactions and verifications are also made simple by linking PAN to Aadhaar.

2. PURCHASE LIFE INSURANCE TO GET A TAX BENEFIT
One of the key factors that make life insurance so popular with investors is the tax-free return. However, the Government Budget for this year proposes taxing life insurance policy maturity proceeds if the total yearly premium paid surpasses Rs. 5 lakh. If this plan is approved, insurance plans purchased on or after April 1, 2023, will be subject to taxation. Get a policy before March 31 if you're planning to invest in a life insurance investment to take advantage of the discount.

 
3. OPEN AN ACCOUNT WITH THE NATIONAL PENSION SYSTEM
Most taxpayers will have already used up their Section 80C tax savings cap of Rs. 1.5 lakh. But do you also claim the additional Rs. 50,000 National Pension System (NPS) contribution deduction allowed under Sec. 80CCD (1b)? To save extra tax this year, open an NPS account right away. You might save up to Rs. 15,600 in taxes if you are in the 30% tax bracket. It only takes a few minutes to register an NPS account online if your PAN is connected to your AADHAAR. Create an account by visiting the NPS website at enps.nsdl.com and following the on-screen directions.
 
4. INVEST IN DEBT FUNDS TO ADVANTAGE DOUBLE INDEXATION
There are signs that the interest rate cycle is shifting after the Central Bank consistently raised rates. Debt funds will generate positive returns if interest rates decline or even remain unchanged. But there's another justification for purchasing debt funds and other non-equity investments by March 31 at the latest. If the investment is kept for at least three years, the indexation advantage becomes available. But, you receive an additional benefit of an additional year if the holding period extends to the fourth financial year. Do not sell your debt funds at this time for the same reason. To receive the indexation benefit of more than one year, wait until April 1 for the start of the new fiscal year.
 
5. Five Harvest Capital Gains And Losses
The previous two years have seen a lot of volatility in the stock market. It's time to book them by March 31 whether you've made gains or losses. Up to Rs. 1 lakh in long-term capital gains are tax-free. Selling some profitable mutual funds and stocks makes sense in order to register profits that are tax-free up to Rs. 1 lakh. The following day, you can purchase them back. It's time to book your losses if your stock market luck has been bad. You can offset these losses with profits from other assets. Only long-term capital gains can offset long-term capital losses. Yet, short or long-term capital gains may be used to offset short-term capital losses. Moreover, unadjusted losses may be carried over for a maximum of eight fiscal years.

9 Personal Finance Rules That We Should All Become More Aware Of

9 Personal Finance Rules That We Should All Become More Aware Of

1) Rule of 72 (Double Your Money) 2) Rule of 70 (Inflation) 3) 4% Withdrawal Rule 4) 100 Minus Age Rule 5) 10, 5, 3 Rule 6) 50-30-20 Rule 7) 3X Emergency Rule 8) 40℅ EMI Rule 9) Life Insurance Rule

1) Rule of 72 (Double Your Money)

No. of yrs required to double your money at a given rate, You just divide 72 by interest rate

Eg, if you want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs

At 6% rate, it will take 12 yrs At 9% rate, it will take 8 yrs 2) Rule of 70 (Inflation) Divide 70 by current inflation rate to know how fast the value of your investment will get reduced to half its present value. Inflation rate of 7% will reduce the value of your money to half in 10 years.

3) 4% Withdrawal Rule Corpus Reqd = 25 times of your estimated Annual Expenses.

Eg- if your annual expense after 50 years of age is 500,000 and you wish to take VRS then corpus with you required is 1.25 cr. Put 50% of this into fixed income & 50% into equity. Withdraw 4% every yr, i.e.5 lac. This rule works for 96% of time in 30 yr period

4) 100 Minus Age Rule This rule is used for asset allocation. Subtract your age from 100 to find out, how much of your portfolio should be allocated to equities

Suppose your Age is 30 so (100 - 30 = 70) Equity : 70% Debt : 30% But if your Age is 60 so (100 - 60 = 40) Equity : 40% Debt : 60%

5) 10, 5, 3 Rule One should have reasonable returns expectations

10℅ Rate of return - Equity / Mutual Funds 5℅ - Debts ( Fixed Deposits or Other Debt instruments) 3℅ - Savings Account

6) 50-30-20 Rule Divide your income into

50℅ - Needs (Groceries, rent, emi, etc) 30℅ - Wants (Entertainment, vacations, etc) 20℅ - Savings (Equity, MFs, Debt, FD, etc) Atleast try to save 20℅ of your income. You can definitely save more

7) 3X Emergency Rule Always put atleast 3 times your monthly income in Emergency funds for emergencies such as Loss of employment, medical emergency, etc.

3 X Monthly Income In fact, one can have around 6 X Monthly Income in liquid or near liquid assets to be on a safer side

8) 40℅ EMI Rule Never go beyond 40℅ of your income into EMIs.

Say you earn, 50,000 per month. So you should not have EMIs more than 20,000 . This Rule is generally used by Finance companies to provide loans. You can use it to manage your finances.

9) Life Insurance Rule Always have Sum Assured as 20 times of your Annual Income

20 X Annual Income Say you earn 5 Lacs annually, you should at least have 1 crore insurance by following this Rule.

DO YOU KNOW D Y CHANDRACHUD ?

Currently serving as a Judge on India's Supreme Court is Justice D.Y Chandrachud. On October 10, 2022, the incumbent Chief Justice of India (CJI), U U Lalit, proposed him as the second-most senior judge of the top court for the role of CJI.

Education And Eearly Life

On November 11, 1959, Dhananjaya Yeshwant Chandrachud was born in Bombay. Yeshwant Vishnu Chandrachud, his father, was the 16th and longest-serving Chief Justice of India (from February 22, 1978 –July 11, 1985). D Y Chandrachud attended St Stephen's College in New Delhi where he earned a BA with honours in economics. In 1982, he earned his LLB degree from Delhi University's Campus Law Center. He graduated from Harvard Law School in the United States with an LLM and an SJD in 1986.

Professional Life

Chandrachud worked as a solicitor at the Bombay High Court and the Indian Supreme Court following his graduation from Harvard. He received this designation from the Bombay High Court in June 1998. From 1998 till his appointment as a permanent Judge of the Bombay High Court in March 2000, he was India's additional solicitor general. He was appointed Chief Judge of the Allahabad High Court in October 2013 and served in that capacity till being named to the Supreme Court in May 2016.

Judgements

During his time on the Supreme Court, Judge Chandrachud wrote a number of significant decisions, including:

Aadhaar was declared unconstitutional in the K.S. Puttaswamy v. Union of India case, which Chandrachud was the lone dissenter in.

When the Sabarimala Temple Entrance case was considered, Chandrachud was on the bench and declared that "the restriction of women between the ages of 10 and 50 from Sabarimala Temple breached constitutional morals."

The question was whether the arrests violated the accused's fundamental rights to free expression and personal liberty, which are protected by Articles 19 and 21 of the Constitution, according to Chandrachud, who dissented in the Romila Thapar v. Union of India legal case the arrest of five human rights activists in the Bhima Koregaon case.

Also, he served on the panel of five judges that heard the Ayodhya title dispute case.