Govt nod for gold bonds, new monetization scheme

September 10, 2015

New Delhi, Sep 10: The government on Wednesday cleared two moves meant to reduce the import of gold. While the first entails the issue of gold bonds that individuals can invest in instead of buying it in physical form, the second is the Gold Monetization Scheme or a new deposit tool meant to help people earn returns on the precious metal lying idle in bank lockers. The gold deposited through this scheme will be re-circulated in the economy, helping cut imports.

goldbarBoth the proposals were announced in the last Budget . But the returns that the two instruments will offer will only be announced after a few weeks. As a result, investment consultants are advising people to wait for the details to come out.

India is among the top two markets for gold with the demand for bars and coins estimated at 300 tonnes annually as households have traditionally seen it as a safe investment. But the high demand and large quantities of imports distort the trade numbers and put pressure on the current account deficit and, in adverse situations, impacts the exchange rate.

As a result, the government announced sovereign gold bonds, which can be purchased by resident Indians with annual cap on investment of up to 500 grams per person. The bonds will be in denominations of 5, 10, 50 and 100 grams and will earn interest, which could be floating or at a fixed rate. So, instead of buying gold, you buy the bonds and on redemption, the amount will be transferred to your bank account.

When it comes to the price of the yellow metal, the government said it would be based on a reference rate fixed by RBI. The bonds will have a tenure of five-seven years and will be sold through banks, post offices, non-banking finance companies and agents hawking National Savings Certificate (NSC).

Just as gold is mortgaged during tough times, the bonds can be used as collateral for loans and will be traded on exchanges. In a statement, the government said the exemption from capital gains would be considered in the next budget with the benefit of indexation available to investors.

"The deposit will not be hedged and all risks associated with gold price and currency will be borne by GOl (government) through the Gold Reserve Fund. The position may be reviewed in case Gold Reserve Fund becomes unsustainable," an official statement said.

Gold Monetisation Scheme

If the move to issue gold bonds is meant to wean away buyers of the metal in physical form, the decision to launch a revamped gold monetisation scheme is aimed at tapping into vast quantities lying with households although similar schemes have failed to generate interest in the past.

Unlike gold lying at home, the amount deposited under the Gold Monetisation Scheme will fetch interest, much like a savings bank account, although the returns will be far lower at 1.5-2%. But on the flip side, the scheme is targeted at individuals who are willing to deposit a minimum 30 grams.

You will need to get a purity certificate from an approved Assaying and Hallmarking Centre and open a Gold Savings Account. You will then deposit the gold with a bank -- which will transfer it to a warehouse -- and choose a tenure which can range from one-three years (with rollover in multiples of one year to 12-15 years). "Like a fixed deposit, breaking of lock-in period will be allowed in either of the options and there will be a penalty on premature redemption (including part withdrawal)," a statement said.

When it comes to redemption, if you are a short-term investor, you will have the option to redeem it either in cash or the equivalent quantity of gold. But medium- and long-term deposits will only be redeemed in cash.

To reduce imports and use the gold mopped up through the GMS, there will be a loan facility for jewellers.

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News Network
March 11,2020

Mar 11: In a bid to keep its flock together, the crisis-hit Madhya Pradesh Congress has decided to shift its 92 MLAs either to Jaipur or some other place.

The move comes after 22 Congress MLAs loyal to former Union minister Jyotiraditya Scindia resigned on Tuesday, pushing the 15-month-old Kamal Nath government to the brink of collapse.

"We are going to take our 92 MLAs and those supporting our Madhya Pradesh government to a hotel," a senior Congress leader said on Wednesday.

The legislators would be taken either to Jaipur or some other Congress-ruled state like Chhattisgarh, a party source said.

Apart from its own MLAs, the Congress is also keeping a close watch on four Independents who are supporting the party-led state government.

On Tuesday, 22 Congress MLAs from Madhya Pradesh resigned soon after Scindia quit the party.

The development reduced the Congress government in the state to minority.

The state Congress unit is now making all efforts to save the Kamal Nath-led government.

The BJP on Tuesday night shifted its MLAs to Manesar at Gurugram in Haryana, sources in the saffron party said.

The Congress, whose tally before the rebellion was 114, has a wafer-thin majority in the Madhya Pradesh Assembly whose current effective strength is 228.

It also has the support of four Independents, two BSP legislators and one SP MLA, but some of them are now likely to switch sides to the BJP.

The BJP has 107 seats in the state Assembly.

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News Network
June 27,2020

Jun 27: Alittle-known Indian IT firm offered its hacking services to help clients spy on more than 10,000 email accounts over a period of seven years.

New Delhi-based BellTroX InfoTech Services targeted government officials in Europe, gambling tycoons in the Bahamas, and well-known investors in the United States including private equity giant KKR and short seller Muddy Waters, according to three former employees, outside researchers, and a trail of online evidence.

Aspects of BellTroX's hacking spree aimed at American targets are currently under investigation by U.S. law enforcement, five people familiar with the matter told Reuters. The U.S. Department of Justice declined to comment.

Reuters does not know the identity of BellTroX's clients. In a telephone interview, the company's owner, Sumit Gupta, declined to disclose who had hired him and denied any wrongdoing.

Muddy Waters founder Carson Block said he was "disappointed, but not surprised, to learn that we were likely targeted for hacking by a client of BellTroX." KKR declined to comment.

Researchers at internet watchdog group Citizen Lab, who spent more than two years mapping out the infrastructure used by the hackers, released a report that BellTroX employees were behind the espionage campaign.

"This is one of the largest spy-for-hire operations ever exposed," said Citizen Lab researcher John Scott-Railton.

Although they receive a fraction of the attention devoted to state-sponsored espionage groups or headline-grabbing heists, "cyber mercenary" services are widely used, he said. "Our investigation found that no sector is immune."

A cache of data reviewed by Reuters provides insight into the operation, detailing tens of thousands of malicious messages designed to trick victims into giving up their passwords that were sent by BellTroX between 2013 and 2020. The data was supplied on condition of anonymity by online service providers used by the hackers after Reuters alerted the firms to unusual patterns of activity on their platforms.

The data is effectively a digital hit list showing who was targeted and when. Reuters validated the data by checking it against emails received by the targets.

On the list: judges in South Africa, politicians in Mexico, lawyers in France and environmental groups in the United States. These dozens of people, among the thousands targeted by BellTroX, did not respond to messages or declined comment.

Reuters was not able to establish how many of the hacking attempts were successful.

BellTroX's Gupta was charged in a 2015 hacking case in which two U.S. private investigators admitted to paying him to hack the accounts of marketing executives. Gupta was declared a fugitive in 2017, although the U.S. Justice Department declined to comment on the current status of the case or whether an extradition request had been issued.

Speaking by phone from his home in New Delhi, Gupta denied hacking and said he had never been contacted by law enforcement. He said he had only ever helped private investigators download messages from email inboxes after they provided him with login details.

"I didn't help them access anything, I just helped them with downloading the mails and they provided me all the details," he told Reuters. "I am not aware how they got these details but I was just helping them with the technical support."

Reuters could not determine why the private investigators might need Gupta to download emails. Gupta did not return follow-up messages. Spokesmen for Delhi police and India's foreign ministry did not respond to requests for comment.

HOROSCOPES AND PORNOGRAPHY

Operating from a small room above a shuttered tea stall in a west-Delhi retail complex, BellTroX bombarded its targets with tens of thousands of malicious emails, according to the data reviewed by Reuters. Some messages would imitate colleagues or relatives; others posed as Facebook login requests or graphic notifications to unsubscribe from pornography websites.

Fahmi Quadir's New York-based short selling firm Safkhet Capital was among 17 investment companies targeted by BellTroX between 2017 and 2019. She said she noticed a surge in suspicious emails in early 2018, shortly after she launched her fund.

Initially "it didn't seem necessarily malicious," Quadir said. "It was just horoscopes; then it escalated to pornography."

Eventually the hackers upped their game, sending her credible-sounding messages that looked like they came from her coworkers, other short sellers or members of her family. "They were even trying to emulate my sister," Quadir said, adding that she believes the attacks were unsuccessful.

U.S. advocacy groups were also repeatedly targeted. Among them were digital rights organizations Free Press and Fight for the Future, both of whom have lobbied for net neutrality. The groups said a small number of employee accounts were compromised, but the wider organizations' networks were untouched. The spying on those groups was detailed in a report by the Electronic Frontier Foundation in 2017, but has not been publicly tied to BellTroX until now.

Timothy Karr, a director at Free Press, said his organization "sees an uptick in breach attempts whenever we're engaged in heated and high-profile public policy debates." Evan Greer, deputy director of Fight for the Future, said: "When corporations and politicians can hire digital mercenaries to target civil society advocates, it undermines our democratic process."

While Reuters was not able to establish who hired BellTroX to carry out the hacking, two former employees said the company and others like it were usually contracted by private investigators on behalf of business rivals or political opponents.

Bart Santos of San Diego-based Bulldog Investigations was one of a dozen private detectives in the United States and Europe who told Reuters they had received unsolicited advertisements for hacking services out of India - including one from a person who described himself as a former BellTroX employee. The pitch offered to carry out "data penetration" and "email penetration."

Santos said he ignored those overtures, but could understand why some people didn't. "The Indian guys have a reputation for customer service," he said.

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January 7,2020

Mumbai, Jan 7: People protesting against the JNU violence were evicted from Gateway of India here on Tuesday morning as roads were getting blocked and tourists and common people were facing problems, a police official said.

Police had appealed to the protesters to shift but they didn't listen, so they were "relocated" to Azad Maidan, the official said.

Hundreds of people, including students, women and senior citizens - who assembled at the iconic Gateway of India since Sunday midnight - demanded action against the culprits and called for Union Home Minister Amit Shah's resignation.

Violence broke out in the Jawaharlal Nehru University (JNU) in Delhi on Sunday night as masked men armed with sticks and rods attacked students and teachers and damaged property on the campus.

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