General Trading Chat

[timepass]

I'm sure there must be some kind of indemnity from the RBI for such FD schemes.

 

[siddhant4u]

I'm sure there must be some kind of indemnity from the RBI for such FD schemes.

why should RBI come for rescue? These deposits are basically unsecured loans that do not guarantee anything to the investor in case of a default. If investors had read all the documents they would have noticed this.

Tomorrow I could also say I lost DHFL/YES Bank/RCOM shares and RBI should rescue me too!

I think problem here is rating agencies who woke up at the last moment, Auditors are to be blamed too.

 

[timepass]

why should RBI come for rescue? These deposits are basically unsecured loans that do not guarantee anything to the investor in case of a default. If investors had read all the documents they would have noticed this.

Tomorrow I could also say I lost DHFL/YES Bank/RCOM shares and RBI should rescue me too!

I think problem here is rating agencies who woke up at the last moment, Auditors are to be blamed too.

Not for shares, but the FD schemes have different rules. They have to have some deposits with the RBI to enable them to raise funds through FDs. The bank FDs are guaranteed upto 10 lakhs, I think. Post Office FDs are 100% indemnified by the Govt. of India.

 

[TraderRavi]

nifty sud fall to 5000 or 6000. it is not moving much at 11-12k

 

[siddhant4u]

These are company deposits and are unsecured. Bank Deposits comes with guarantee just 1 lakh Rs and not 10 Lakh.

Below from RBI Site

Q 3 What is the maximum deposit amount insured by the DICGC?

Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

 

[vikas2131]

These are company deposits and are unsecured. Bank Deposits comes with guarantee just 1 lakh Rs and not 10 Lakh.

Below from RBI Site

There was a bill in parliament last year based on agreement between G20 countries, which said that in case of another 2008 like event, bank deposit would be used to bail out banks but after lot of hue and cry, it was postponed . Sooner than later that bill is going to get passed.

 

[siddhant4u]

There was a bill in parliament last year based on agreement between G20 countries, which said that in case of another 2008 like event, bank deposit would be used to bail out banks but after lot of hue and cry, it was postponed . Sooner than later that bill is going to get passed.

tax payers and now retail savers will be punished for select few adventurer

 

[timepass]

Anyway, it will be the depositor's money which will be used to fund the NPAs and the political largess. The government is eyeing the RBI's funds and wants to get its hands on them one way or the other. I hope the RBI is strong enough to resist it. RBI already gives a huge dividend/surplus to the government (I think it's going to be Rs. 95,000 crore) this year.

There was a bill in parliament last year based on agreement between G20 countries, which said that in case of another 2008 like event, bank deposit would be used to bail out banks but after lot of hue and cry, it was postponed . Sooner than later that bill is going to get passed.

tax payers and now retail savers will be punished for select few adventurer

 

[timepass]

nifty sud fall to 5000 or 6000. it is not moving much at 11-12k

I think your target should be the 2009 election gap

 

[sridhga]

One of my relative had invested as company FD in DHFL. I don't know what would they do now and what will happen to their invested money...?

I dont want to sound disappointing. But as per bankruptcy norms FD holders are unsecured. That just means in case of bankruptcy, they do not have any preferential repayment against other creditors like Banks which are generally secured creditors or tax authorities. After paying all such preferential creditors, balance would be paid to unsecured creditors and equity shareholders come at last.