Centre justifies certification of Finance Bill, 2017 as money bill; SC reserves verdict

Supreme-court-BCCLNEW DELHI: The Centre on Tuesday in the Supreme Court justified certification of Finance Bill, 2017 as a money bill saying it has provisions which deals with salaries and allowance to be paid to members of tribunals from the consolidated funds of India.

The top court reserved its verdict on a batch of pleas challenging the constitutional validity of Finance Act, 2017 on the ground that it was passed by the Parliament as a money bill.

The Centre contended that certification of Finance Act as money bill was done by speaker of Lok Sabha and court cannot judicially review the decision.

A five-judge Constitution bench headed by Chief Justice Ranjan Gogoi said, “Hearing concluded. Order reserved”.

At the outset, Attorney General K K Venugopal, appearing for the Centre said that certification granted by the speaker cannot be challenged in the court of law.

The Attorney General justified before the bench also comprising Justices N V Ramana, D Y Chandrachud, Deepak Gupta and Sanjiv Khanna the certification of Finance Act as a money bill saying it deals with payment and receipt made from the consolidated funds of India.

“It is the whole part which has been certified as a money bill and not in parts. Therefore no part can be severed to say that this cannot be called as a money bill,” Venugopal said.

He referred to provision for money spent on tribunals from the consolidated funds and said salaries and allowances of tribunal members would come under incidental matters referred in the Article 110 (1)(G) of the Constitution.

Article 110 of the Constitution deals with provisions as when can a Bill shall be deemed to be a Money Bill.

Venugopal relied on Aadhaar verdict of last year and said that the apex court has held that the main object of Aadhaar Act was to extend benefits to marginalised section of society in the form of aid, grant or subsidy from the consolidated fund.

Senior advocate Arvind Datar, who led the arguments for the petitioners, argued that a bill which says that salaries shall be paid to the members of tribunal does not in itself make it a money bill.

He sought making the tribunals independent saying their core judicial duty cannot be taken away or at least they can be brought under the control of law ministry or one nodal agency as held in 1997 and 2010 verdicts of the apex court.

The top court was hearing a batch of petitions challenging the Constitutional validity of the Finance Bill of 2017.

On March 28, the Centre has told the apex court that it cannot question the speaker’s decision of certifying a bill as a Money Bill and it is a well settled law.

Venugopal said contention that certification of Finance Bill of 2017 as Money Bill was not right cannot be a ground for a challenge to validity of the Bill.

He had said that apex court has repeatedly held in its verdicts that certification cannot be questioned and courts cannot inquire into the decision taken by Parliament.

Venugopal had said Finance Bill comprises of amendments to several Acts and statutes and the petitioners have challenged only one particular aspect saying it cannot be termed as Money Bill.

The apex court had earlier sought the Centre’s view on bringing all the tribunals under one central umbrella body for ensuring “efficient functioning” and “streamlining the working” of quasi-judicial bodies.

The top court had said it would not like to be bogged down with what is right or wrong and all it wants was that “the tribunals work efficiently and independently”.

The court had said it is tentatively of the view that directions given by the apex court in its two verdicts of 1997 and 2010 for bringing all the tribunals of the country under one nodal agency should have been “implemented long back”.

[“source=economictimes.indiatimes”]

Insights From Behavioral Finance: Parameter Uncertainty

Although behavioral finance may at first seem to be far removed from the kind of rigorous analysis required by the discipline of value investing, it is actually at the core of what value investing is all about. After all, one of the central tenets of behavioral finance is that humans are not mechanical utility maximizers, whose actions can be predicted by models that presuppose rational action. Rather, they are subject to a wide range of emotional and cognitive biases, a topic that we have explored previously.

Fuzzy models

This sentiment is quite similar to classic value investing metaphors such as “Mr. Market” and the concept of irrational exuberance. Indeed, value investing presupposes the market can be highly irrational at times, as this is what allows diligent practitioners to pick out undervalued stocks. Another key insight from behavioral finance is that of parameter uncertainty – the inherent fuzziness of financial models.

The implications of parameter uncertainty are twofold. First, it makes it very difficult to put an exact number on what the value of a business should be. Now, for most value investors, this is not a big issue. For instance, Charlie Munger (Trades, Portfolio) has often said he greatly prefers to have a range of possible values for a business, rather than a specific number.

There are many reasons why this is preferrable. For one, it is easier to do. For another, it enables an investor to establish an adequate margin of safety. And finally, it is simply the more intellectually honest thing to do. With this in mind, the exact price targets set by so many sell-side analysts begin to look suspicious. Exact numbers convey certainty and authority, which is why they appeal to so many people. But they are no better, and are often far worse, than ranges. By tying ourselves to exact targets, we narrow our margin of error and open ourselves up to a greater possibility of being wrong.

The categorization problem

The second implication of parameter uncertainty concerns the problem of categorization of investment targets. In a world where corporations are based in many different countries, how does one ascertain the risk associated with any given company? In 1990, Robert Reich, who would go on to be U.S. Labor Secretary from 1993 to1997, wrote an article in the Harvard Business Review titled, “Who Is Us?” which examined this exact question. Is a U.S.-based and listed company that conducts most of its business in the developing world more representative of the U.S. market than a foreign company that primarily employs American workers? Which is riskier?

The truth of the matter is different individuals and institutions will pick their own definitions for these things. Moreover, they will have to grapple with problems like whether Amazon (NASDAQ:AMZN) is a cloud computing company or a retailer and whether or not China should still be considered an emerging market. Of course, each will come up with their own answers. The problem is when so many different market participants have different ways of viewing the world, it is somewhat difficult to build reliable predictions of how they will react in the future.

Summary

Behavioral finance has a lot to offer value investors. While traditional thought holds that all market participants share broadly the same goals, outlooks and decision-making calculi, the truth of the matter is all of this is incredibly subjective. Parameter uncertainty is a particularly good example of this as it touches on so many different aspects of investing. As investors, there is no way to overturn uncertainty – so the best thing to do is embrace it, not ignore it.

[“source=gurufocus”]

Finance Minister Arun Jaitley Critiques Sovereign Wealth Fund Popularity

Finance Minister Arun Jaitley Reviews Sovereign Wealth Fund Status

New Delhi: A panel headed via Finance Minister Arun Jaitley on Wednesday took stock of the developmentmade on operationalizing National Investment and Infrastructure Fund (NIIF), India’s maiden sovereign wealth fund, including choice of its CEO and projects shortlisted for making preliminary investments.

The second Governing Council assembly of the Rs 40,000 crore National Funding and Infrastructure Fund (NIIF) additionally mentioned the comply with-up motion being taken at the memorandums of knowledge(MoUs) signed with Rusnano of Russia, ADIA of Abu Dhabi and the Qatar Investment Authority.

“The Governing Council turned into apprised of the interactions that have been held with a big variety oflong time traders, Sovereign Wealth Price range, Pension Finances from throughout the globe, in search of to make investments inside the NIIF,” a Finance Ministry declaration stated.

In addition they mentioned the pointers for Investment of the corpus of NIIF, inclusive of the Investmentcoverage, it delivered.

Installation in December 2015, NIIF will act as an Funding car for funding commercially possible greendiscipline, brownfield and stalled initiatives.

The government is in the system of appointing a CEO for NIIF, in which it holds forty nine in line with centat the same time as the relaxation may be held with the aid of personal buyers.

The Council changed into also apprised of the refinement in the structure of NIIF pursuant to discussions with investors.

NIIF will have diverse sectorunique or investor-precise close ended Funds and they would troublediverse instructions of gadgets. authorities in conjunction with different investor(s) will join thegadgets of diverse Budget.

“The Reputation of projects shortlisted for initial Funding by using the NIIF and the choice manner ofLeader Government Officer were additionally placed before the Council,” the ministry said, adding that awebsite for NIIF become launched on Wednesday.

This assembly became attended by way of Financial Affairs Secretary Shaktikanta Das, MonetaryOfferings Secretary Anjuly Duggal, Nation Financial institution of India chairperson Arundhati Bhattacharyaand former Infosys director T V Mohandas Pai.
Story first published on: June 09, 2016 00:02 (IST)

Tags: Arun Jaitley, Country wide Investment and Infrastructure Fund, NIIF, sovereign wealth fund

India Funding Roundup: A School Bus Tracking App, Robo Finance Advisor, and More

India Funding Roundup: A School Bus Tracking App, Robo Finance Advisor, and More

Our latest funding roundup compiles seed stage investments in Indian startups engaged in vehicle tracking, on demand concierge services, healthcare, EdTech, FinTech, and more.

Qlivery
Gurgaon-based on demand concierge service Qlivery, run by invexGO Solutions Private Limited, has raised $230,000 (roughly Rs. 1.5 crores) from Hong Kong-based Swastika Company Limited. The startup plans to use the funds to expand the team, geographical reach and add customers. A substantial amount of current fundraise will be used to improve the technology stack, including implementation of artificial intelligence, said Rohit Pansari in an emailed statement.

AppAlert
School bus tracking app AppAlert has raised $900,000 (roughly Rs. 5.9 crores) in its seed round of funding, led by Narinder Singh, a US-based serial investor. The funding secured will be deployed to build and enhance the core application and to expand its service offerings in markets of Singapore, Indonesia, Philippines, and Australia, the company said, adding that it has kicked off trials at more than 20 schools in NCR and Mumbai.

Pramati Care
New Delhi-based healthcare services startup Pramati HealthCare, which provides caretakers for patients at home has reportedly raised $200,000 (roughly Rs. 1.3 crores) in Pre Series A round of funding. The startup is currently offering services in Delhi NCR region.

Avagmah Bengaluru-based EdTech startup Avagmah reportedly raised an undisclosed amount of funding from Kris Gopalakrishnan, Co-Founder and Former CEO of Infosys, and Atul Nishar, Founder of Hexaware, and existing investors. The startup provides a combination of cloud-based SaaS (software-as-a-service) technology to universities for increasing the reach and appeal of their programmes.

Healthenablr
Mumbai-based healthcare player Healthenablr has reportedly secured $800,000 (roughly Rs. 5.3 crores) in a new round of funding from undisclosed investors. Currently operational in Mumbai, Kolkata and Bengaluru, the startup provides apps for Android and iOS which can be used to chat or have a video consultation with a doctor, or even book an appointment.

Wealthy
Bengaluru-based Buildwealth Technologies has reportedly raised $250,000 (roughly Rs. 1.65 crores) in angel funding from a group of angel investors. The robo advisor’s investment algorithm in mutual funds is based on a process called Capital Asset Pricing Model, proposed by Nobel Prize-winning economists.

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Tags: AppAlert, Apps, Avagmah, Funding, Healthenablr, Internet, Investment, Pramati Care, Qlivery, Startups, Wealthy
[“source-Gadgets”]