September 27, 2016

Are you in need of money? Perhaps you just want more money. Either way, you might be considering asking a lottery winner for money. If so, you would probably go about asking in different ways, depending on whether or not you actually know the person.

If You Know The Lottery Winner

Let me tell you a true story about two women. These two women were best friends for many years. For one reason or another, they drifted apart and didn’t see each other for a few years. Then one of the women won the lottery. It was a massive jackpot worth hundreds of millions of dollars. A few years after she won the lottery, she re-connected with her old friend. Within days of re-connecting, the one woman told the jackpot winner that she had $50,000 worth of medical bills that she just couldn’t pay. Read between the lines – She was indirectly asking for money.

The jackpot winner was more than happy to pay the medical bills for her friend. She told her to just give her the bills and she would take care of it. That would have been great, except that there actually were no medical bills. It was just an excuse for a reason to ask for money. The lottery winner didn’t like that. If the friend just straight out asked for the money, she probably would have given it to her. But her friend lied and insulted her intelligence.

What’s the moral of this story? If you have a friend that won the lottery, don’t come up with a false story to try to get some money. Rather, just ask you friend straight out to give you some. They just might do it.

If You Don’t Know The Lottery Winner

If you’re planning to ask a lottery winner that you’ve never met for money, you should know up front that the odds are against you. A lot of lottery winners, especially new ones that win massive jackpots get inundated with requests for money. Often, those requests come via sob stories that tug on the person’s emotions. You should know that these new lottery winners quickly become immune to these requests and tune them out.

So if you’re planning to ask a stranger for money, don’t come up with sad stories. Just like in the previous example, tell the truth and just say that you’d appreciate it if they could spare some money. They’ll more than likely decline your request, but don’t take it the wrong way – Jackpot winners can’t give money to everybody that asks them for it. Just make sure that you don’t harass anybody while asking them for money – That’s illegal.…

What is the SEBI?

SEBI, which is a revision for Securities and Exchange Board of India, which has functions similar to the SEC or Securities Exchange Commission in the USA. In other words the SEBI regulates the working of the financial markets in India, vis-à-vis investor protection and laying down of ethical standards for the working of the financial markets in India. This is why SEBI is also called as the watchdog of the Indian Markets. There have been many instances where SEBI has acted in the interests of the investor by preventing insider trading in various companies in the equity markets. Similarly there have also been cases when SEBI has acted in the interest of the small investor in the Mutual Fund Industry.

What is the mutual fund industry?

The origin of this industry in India is with the introduction of the concept of a mutual fund by UTI in the year 1963. Although the growth was slow at that time, it accelerated post 1987, when the non-UTI players entered the industry. Not everyone can time the equity markets as well as some investors do. For the benefit of those unfortunate investors who can not, there is the mutual fund industry. This is an instrument which invests in equities on behalf of the individual investor so as to maximize his gains. A mutual fund is a vaulted of equity investments which are done based on exhaustive research and development. This research and development is carried out by the asset management companies of the mutual funds. They are also called as AMCs. The product portfolio of these funds contains investments in equities which would yield good results over a period of time. The mutual funds are rated by various rating agencies. This rating is carried out by the agencies like CRISIL, etc. These funds tend to hedge the risks for the individual investor so as to minimize his losses. At times they may also concentrate on one particular sector.

Role of SEBI

The SEBI was first established in the year 1988. At that time it acted as a non-statutory body for the regulation of the securities market. In the year 1992, it became an autonomous body with independent powers. Through the passing of an ordinance, more powers were given to the SEBI. Now it independently regulates the securities markets with its independent powers.

The main objectives of the SEBI are as under:

  • Develops the securities markets
  • Promotes investor interest.
  • Makes rules and regulations for the securities markets.

As far as the functions of SEBI are concerned, it follows the following functions:

  1. Regulates the securities markets.
  2. Checks trading of securities
  3. Checks the malpractices occurring in the securities markets.
  4. Enhances investor knowledge, with regard to the markets by providing education from time to time.
  5. Regulates the stock-brokers and sub-brokers
  6. Promotes research and investigation.

SEBIs introduction of the SEBI (Mutual Fund Regulation) 1993 was established to have direct control over the mutual funds for both the private and the public sector.

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