The Quant Guy!
Hmmm...
Joined January 2012
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Super Intelligence Baby! retweeted
There are so many issues with NRI investments which have reduced their investments in India. For example- a fund cannot have more than 50 pct collective NRI money. Why- no one knows.
An individual NRI cannot own more than 25 pct of a fund- Why- no one knows.
This applies to even OCIs ( who are foreign citizens) but not to foreign citizens who don't have OCI: why- no one knows.
General explanation is that Indians will do round tripping through NRIs/OCIs. Why will they do round tripping- no one knows. There is no difference in taxes whether u are India based or FII.
Even if there is no real financial logic to do round tripping but some Indian resident wants to round tripping - Why Indian will do round tripping only through NRIs/OCIs and not foreign citizens- no one knows.
And at the end of it- if some very small number of residents do have foreign money outside and they want to invest it back in India why stop them- no one knows. Also if a small percentage are doing something which authorities do not approve, why stop the route for a much much much much larger genuine population- no one knows.
Super Intelligence Baby! retweeted
Thread on the RBI EDF from my @91basispoints column with Arjun Raghavendra (Tax lawyer and former IFS)
TLDR - India has moved from license raj to Declaration Raj (AND) everyone works for the government now salary free.
basispointinsight.com/Story/…
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Super Intelligence Baby! retweeted
An oldie but a goodie. In 1968 a bunch of entitled hippy bastards sent a letter detailing their specious demands to the Warden and Fellows of Wadham College, Oxford. This was their letter of reply, which speaks to how far the academy has since fallen.
Super Intelligence Baby! retweeted
>@neelkanthmishra is spot on!
The complex procedures and difficulties of investing in India are huge deterrents. Every entity in the chain has its own petty justifications for wanting what they want. Once you stack up all the irritants, it is a mountain of rubbish.
Tax considerations are marginal - there are international funds who have invested with us, who swore off investing into Indian registered entities after experiencing the mind-numbing stupidities and paperwork one is subjected to.
We in India have a type of Stockholm syndrome - we have just accepted all the craziness as “normal”.
Super Intelligence Baby! retweeted
This will be called “redistribution” by some people. The economics of envy leads eventually to this
Super Intelligence Baby! retweeted
His work was funded by Ford Foundation and McArthur Foundation. How many million years would it take to those "100 workers" to match billionaires like Henry Ford and John McArthur? Or is this calculation meant only for the non-white billionaires? Saving Indian souls - backed by western business - is a very old game.....
Super Intelligence Baby! retweeted
NEW BLOG Post:- I just wrote, Mad Hatter's Tea Party. t.me/inflo11/122
Super Intelligence Baby! retweeted
Credit extension to manufacturing sector is the one area where India has consistently failed! Credit deprivation is systemic - if you are not one of the 6/7 privileged mega conglomerates. This is a major, major national security issues now: dependence on Chinese imports is very high and frontier tech development and growth is constrained by paucity of credit.
This has been known for years in India. Digitalization has been tried as a workaround. But digital approach to a failed process doesn’t yield structural change - you just get a failed digital process. In some cases lack of human intervention makes things even more Kafkaesque.
What is the way out?
Government should complete consolidation of the public sector banks (PSBs) into five or less as was committed earlier. Admirable effort completed already to reduce number of PSBs. Where consolidation is not feasible - privatize the banks. Only 2/3 large PSBs should be left.
Next, a wholesale rewrite of the Reserve Bank of India Act (1934) and Banking Regulation Act (1949) needs to be undertaken. We cannot expect the same regulatory and legal architecture to deliver a step change in performance by tinkering at the margins. Why are these domains treated as immutable? India has to change the way banks are licensed, regulated and monitored. Getting government almost completely out of the business of banking is a key related point here - the mere existence of a large number of PSBs drags down the regulatory baseline for all. Even private sector entities behave like public sector entities.
Finally, bond market development and deepening remains a major challenge. The frictions are known - get rid of them!
Super Intelligence Baby! retweeted
Arnold Schwarzenegger was a millionaire before Conan and before The Terminator. Not from movies. From bricks. He came to America in 1968 with almost nothing, and his first business was an ad in the Los Angeles Times with his friend Franco Columbu. It read “European bricklayers and
masonry experts.” Only one of them actually knew how to lay bricks. Franco had learned the trade back in Europe. Arnold was the one who wrote the ad.
At first they tried to be the cheapest crew in town. Nobody called. So they raised the price to European prices and sold it as European craftsmanship.
A week after the ad ran, an earthquake shook Los Angeles and knocked chimneys off buildings all over the city. Suddenly two European masonry experts were exactly what Los Angeles needed, and they were busy for two years.
Arnold saved every dollar. When he had about $26,000 in the bank, he put all of it into a six unit apartment building that cost around $240,000. Not one dollar left over. The front unit was twice the size of the others, so he lived there and the tenants paid the mortgage.
Two or three years later he sold it for roughly double. He tells the rest himself in the video below.
By the time Hollywood called, he owned more than a hundred apartments and offices on Main Street in Santa Monica.
On the Street we had a name for men like that. They didn’t wait to be rich before they started acting like owners.
Everyone remembers Arnold for the fortune. Almost nobody remembers who laid the first bricks of it.
Franco Columbu died in 2019 while swimming off the coast of Sardinia, the island where he was born. Arnold wrote the ad. Franco built the chimneys.
Super Intelligence Baby! retweeted
Stale and defensive thinking by officialdom is holding back India from becoming the world’s financial center.
You give incumbent power centers like the US a run for their money by competing and building even deeper capital markets, which is foundational to business expansion and frontier technology development.
Relaxation of the capital account (to enable foreign companies to list in India, and also for Indian companies to globalize more easily), consistent taxation, ramping up participation into equities (both public and private) from more domestic pools of capital - do this much, and see what happens. It will astound you.
Super Intelligence Baby! retweeted
Most people might not remember that from every Rs 10,000 crore collected in a new fund offer, the mutual fund charged the investors Rs 600 crore as marketing fee. In addition there was the front commission.
Both were removed over the years and the industry has become cost efficient and seen strong growth.
The same is true for the stock market.
Reduction of transaction fees, commissions and costs, along with greater transparency and regulatory guard rails has led to an exponential growth in the Indian stock and mutual fund markets.
Insurance has lagged the reform curve.
Greater cost efficiencies and transparency will benefit not just the individual but also the industry.
My oped in @htTweets
hindustantimes.com/opinion/f…
Super Intelligence Baby! retweeted
I had a long conversation with #IRDAI chairman Mr Ajay Seth on the consultation paper put out by the regulator on #TheGrowwingIndiaPodcast.
My takeaway is this:
1. The regulator wants the industry to cut costs.
2. Become more efficient.
3. Increase transparency.
4. Make competition work for the policyholder.
5. This is not the last step. This is the first step.
6. He is asking public and policyholders to respond to the paper in any manner they can. The QR code is at 49:36.
Insurance cannot remain a high-cost, distribution-led business.
It must become a consumer-first industry that delivers value when people need it most.
He frames the paper in the context of what the Parliament of India has charged the regulator to implement through the Sabka Bima Sabki Raksha Act, 2025.
The podcast is in collaboration with @_groww
youtube.com/watch?v=oyKPM23V…
Super Intelligence Baby! retweeted
Omg! Tweet went viral and featured in moneycontrol. I thought there will not be more than 50-60 likes as usual.
I would have loved to appear as a Fund Manager (my profession) in CNBC TV 18 but this tweet get featured in moneycontrol instead. Life is strange always!
moneycontrol.com/news/trends…
Super Intelligence Baby! retweeted
Sunday to mull and day dream of similar politicians in India some day.
youtu.be/whRN-CJZDr0?si=ln1D…
Super Intelligence Baby! retweeted
It was a minor philosophical disagreement about how to fly the plane. NYT now confirms that it has been satisfactorily resolved after some passengers mediated between them.
Breaking news: A plane flying from Dubai to Israel was diverted after an altercation between the pilot and co-pilot, Israeli officials said. nyti.ms/4rHOvin
