Mumbai Picture As on 30/11/2008

• What World Paid: 183 dead, 327 injured
• What They Paid: 9 Killed, 1 Arrested
• What Govt Says It Averted: 5000 deaths

Law relating to dishonor of Cheques in India

The Negotiable Instruments Act, 1881 is an Act to define the law relating to promissory notes, bills of exchange and cheques.

This Act has been amended several times commencing from 1885 till 2002. The most important amendment is by Act 66 of 1988 and by virtue of chapter XVII was introduced by the Banking, Public Financial Institutions and Negotiable Instruments laws (amendment) Act, which came into force from 01-04-1989.

The introduction of Chapter XVII i.e., sections 138 to 142 of the Negotiable Instruments Act, for the prosecutions relating to the offences of dishonor of cheques.

The dishonor of cheques became popular and frequent in courts of law and the law relating to the same developed in such a rapid pace covering almost several aspects which may arise in the day to day disposal of such cases by the courts.

Chapter XVII of Negotiable Instruments Act has been lastly amended by Negotiable Instruments (Amendment and Miscellaneous provisions) Act 55 of 2002 and the same has been came into force w.e.f., 06-02-2003.As per the latest amendments the imprisonment has been extended to 2 years.

The issuing of notice within 30 days after the receipt from the bank regarding return of cheque as unpaid and further after amendment to Sec.142 of N.I. Act, the cognizance of complaint may be taken by the court after the prescribed period i.e., beyond 30 days after receipt of notice by drawer, that the complainants to satisfy the court that he had sufficient cause for not making a complaint within such period.Sec.138 to 142 of N.I. Act deals with:

i) Sec.138 deals with the offence of dishonour of cheque and the punishment there for.

ii) (a) Sec.139, deals with presumption that the holder of a cheque in discharge in whole or in part of any debt or liability.

(b) Sec. 140, the defense which may not be allowed in any prosecution under Sec.138.

The drawer that he had no reason to believe when he issued the cheque that it may be dishonored on its presentation.

(c) Sec.141, deals with offence by a company prescribing different burden and onus of proof between persons in-charge of and responsible to the company for the conduct of its business and persons, with whose consent or connivance or due to neglect on his part, the offence had been committed, may be stated to fall under ‘evidence aspect’.

iii) Sec.142, deals with the cognizance of an offence prescribing the method or mode of preferring a complaint and the forum before which the complaint has to be preferred, besides prescribing the period, with in which the complaint is to be preferred from the time of accrual of the cause of action, not withstanding anything contained in the code may be stated to fall under ‘procedural’ and ‘limitation’ aspects.

The amendment made to N.I. Act in 2002 also includes the insertion of new sections 143 to 147. The new sections deals with power of court to try cases summarily, mode of service of summons, evidence of affidavit, bank slip as prima-facie evidence and offences to be compoundable under N.I. Act.

I. Cheque

Under the N.I. Act, a cheque is an instrument which is negotiable by delivery. The drawer is discharged when payment is made in due course. In simple terms, this means that when cheque is tendered there is a presumption that payment would be realized in due course, and hence the date of payment is considered to be the date on which the cheque is delivered, regardless of when the cheque is actually presented for payment.

The origin of cheque can be traced even from 17th century onwards in England. In the case of Stedman vs. Gooch, it is observed that payment by negotiable instrument is a conditional payment, which means that if the negotiable instrument is dishonored on presentation the creditor may consider it as wastepaper and resort to its original demand.

It has been observed in “Benjamen on Sale”, 8th edition, it was stated that payment takes effect from the delivery of the bill, but might get defeated by the happening of the condition of nonpayment at maturity.

In “Byles on Bills”, 20th edition the position was summarized as ‘A cheque, unless dishonored is payment’. Under the Common Law of England, the rule is to the effect that the sending of a cheque in payment of debt is subject to the condition subsequent that the cheque must be met on presentation.

 In the High Authority of Royal Bank of Scotland Vs. Tottenham, 1894 LXXI Law Times Report 168, it was held that a cheque is contract between the parties, and it is for a judge at the trial to construe that contract by reading what is written upon it.

II. POST-DATED CHEQUE

The post-dated cheque becomes a cheque under the Act on the date written on it and the six months period has to be reckoned for the purpose of sec.138 of N.I. Act from the said date.

A post-dated cheque cannot be presented before the bank and as such the question of its return could not arise. It is only when the post-dated cheque become a cheque with effect from date shown on the date of cheque.

A post-dated cheque carries with it an implied notice to the effect that for the present there are no deposits, but at the same time assuring that the funds will be available by the date it becomes due (1956 (1) Madras Law Journal 471).

Post-dating of bills of exchange is allowed both in English and American Law.

There is no prohibition in the Indian Acts against post-dating and promissory note which is post-dated is thus an effective negotiable instrument through it cannot be sued upon till after that date passes.

III. STOP PAYMENT OF A CHEQUE

In spite of the civil remedy, Sec.138 is primarily meant to prevent dishonesty on the part of a drawer.

Sec.138 draws presumption that one commits the offence if he issues the cheque dishonestly and cheque has been drawn and issued to the payee and the payee as the presenter of cheque and thereafter, if any instructions are issued to the bank for non-payment and the cheque is return to payee with an endorsement ‘payment stopped by drawer’, it amounts to dishonor of cheque (1996 (2) SCC 739) =AIR 1996 SC 2339.

Even if a cheque is dishonored because of ‘stop payment’ instruction to the bank, Sec. 138 would get attracted (1998 (3) SCC 249).

The luxury of “stop payment” instructions by the drawer to cover-up real insufficiency funds would no longer be available to drawer as per the law of the land.

IV. RE-VALIDATION OF A CHEQUE

There is no provision in the Negotiable Instruments Act or in any other law which stipulates that a drawer of a negotiable instrument cannot re-validate it.

It is always open to a drawer to voluntarily re-validate a negotiable Instrument, including a cheque (AIR 2002 SC 38).

V. LEGALLY ENFORCEABLE DEBT

It is clear from the explanation to Sec.138 of the Act, that the cheque covered by the said section must be relatable to enforceable or debt which must be existing as on the date of issuing of the cheque. For the purposes of this section, “debt or other liability” means a legally enforceable debt or other liability.

In 1997 Crl. Law Journal 1942 A.P., it was held that on the date of issuing of cheque material was not supplied by complainant and the goods was found not of agreed quality.

The cheque was presented third time after accused intimated about rejection of material. It was held that there was no infirmity in the reasoning of trial court that on the date of cheque there was no existing debt or liability and as such no offence was constituted u/s. 138 of N.I Act. 

Where cheque issued as security, on dishonor of such cheque, not offence under Sec.138 of the Act (2001 (2) RCR (Crl.) 75 MP) also see 2002 (3) Crimes 145 (Raj).

CONDITIONS TO INITIATE CRIMINAL. ACTION U/S.138 OF N.I. ACT

a) A cheque must have been drawn by a person on an account maintained by him for payment of any sum of money to another person from out of the account.

b) The cheque must have been issued for the discharge, either in whole or in part, of any debt or other liability, though, in the absence of proof to the contrary, it shall be presumed that it was issued for the same.

c) The cheque shall be returned by the bank unpaid –

i) Either because of the reason insufficient funds to honor the cheque; or

ii) Because it exceeds the amount arranged to be paid from the account by an agreement with that bank.

Thus, the dishonor of the cheque by the bank under the above mentioned circumstances shall constitute an offence and the offender is liable to be punished u/s.138 of N.I.

Act with imprisonment, which may extend to 2 years or with fine, which may extend to twice the amount of cheque, or with both.

CASE LAW ON DISHONOUR OF CHEQUES

1. Account closed: Account closed was held to be the offence u/s.138 of N.I. Act (AIR 1999 SC 1952). The cheque returned on the ground of close of account is an offence (1998 (2) Law Summary 461). Where the cheque was dishonored on ground of account closed, the accused cannot escape from liability of the offence (1998 (2) ALD (Crl.) 286 Kar).

2. Issuance of post-dated cheque and closing account: Where the accused issued the post-dated cheque and had also closed his account in the bank, in such a case he is liable to be prosecuted under Sec.138 (1998 (2) ALD (Crl.) 177 Bom).

3. Incomplete Signature: Dishonor of cheque because of incomplete signature on cheque of drawer. Held: did not attract sec. 138 - (2002 (7) SCC 531).

4. Cheque issued by partner: Complaint u/s.138 of N.I. Act against firm and its partners. No allegation in the complaint that the partner was in-charge of and was responsible to the affairs of the firm – held: not maintainable against the partner (2002 (7) SCC 655).

5. Offences committed by a company: Where an offence is committed by a company, either company can be prosecuted or the person-in-charge of the company can be prosecuted or both of them can be prosecuted (1998 (2) Crimes 409).

6. Discharge of father’s debt: Father of the accused, but not the accused owes debt to complainant. Complainant obtained cheque from the accused by force. Cheque was not issued in discharge of father’s debt. Accused cannot be prosecuted (2003 (6) ALD (NOC) 64).

7. Cause of Action: Once notice is issued under Sec.138, failure to initiate prosecution would forfeit the right to prosecute (1998 (7) Supreme 20).

8. Object of issuing notice : The object and purpose of issuing notice to the drawer is to give information to the person who had issued the cheque that it was dishonored and give him an opportunity to make good the amount within 15 days of the receipt of the information (1997 (88) Company cases 433).

9. Notice once issued, Chq. cannot be presented for collection: It is settled that the payee is free to present the cheque repeatedly within its period of validity any number of times, but once notice has been issued the drawee to avail the cause of action arising thereupon and file the complaint within the stipulated period (2002 (1) ALD (Crl.) 397 (AP) (1998 SCC (Crl.) 1471 followed).

10. Notice by fax and Regd. post: Notice can be sent by fax and mode of sending notice not to be restricted to post or messenger (AIR 1999 SC 1609).

11. Omission of Chq. No. in notice: The number on the cheque has no relevance in a proceeding u/s.138 of N.I. Act. Sec.5 and Sec.6 of the Act does not specify that, the cheque or bill of exchange should bear a number. There is also nothing in Sec.138 of the Act to show that the number of the dishonored cheque also should be mentioned in statutory notice or in complaint (2004 Cr. LJ 712 AP).

12. Advocate did not sign notice: The mere fact that the advocate for complainant did not sign the notice, may not make it invalid 1996 Crl. LJ 2264 Kar).

13. Issue of second notice: Cheque issued by the respondent was dishonored – presented again – again dishonored. The notice issued by the complainant at the time of first dishonor was not served on respondent/accused, but the fact remains that the notice has been issued for second time. Therefore, cause of action stood terminated (2003 (117) Company Cases (Madras).

14. Accused refused to receive notice : Where accused have refused to receive notice, even then complaint to be filed after expiry of 15 days from the date of receipt of notice (1997 (3) crimes 445). In case of refusal to receive the notice, it amounts to acceptance of notice and date of refusal to receive such notice shall be treated as the date of receipt of such notice. In such case the period of fifteen days has to be computed from the date of refusal (AIR 1996 SC 330; AIR 1989 SC 630).

15. Evading notice: Where accused had evaded service of notice relating to dishonor, it will amount to constructive notice (2001 (2) ALD (Crl.) (Mad) 137).

16. Postal endorsement ‘not found’: Notice was duly given but the same was returned unserved with postal endorsement ‘not found’. If a registered letter addressed to a person at his residential address does not get served in the normal course and is returned it can only be attributed to the addressee’s own conduct (1998 (1) CCR 111).

Once the letter is delivered to the post office he has no control over it. It is then presumed to have been delivered to the addressee under Sec.27 of the General Clauses Act (AIR 1989 SC 630).

17. Civil Suit & Criminal Complaint: Filing of civil suit and filing of criminal complaint are not alternative remedies and they are different types of rights (1994 Criminal Law Journal 887). The mere pendency of a civil dispute will not oust the jurisdiction of a Criminal Court from taking cognizance of an offence on a complaint under Sec.138 of N.I. Act (1998 Crl. LJ 559 = 1998 (2) ALD (Crl.) 300 Guj).

18. Stay of suits: Pending of criminal matters would not be an impediment to proceed with the civil suits. On the other hand, the courts are rarely stay the criminal cases on only when the compelling circumstances require the exercise of power (1996 SCC (Crl.) 466) = 1996 (3) SCC 87).

19. Sec. 138 of N.I. Act & Sec. 420 of I.P.C.: When the cheque was dishonoured for insufficient funds, such person issuing a cheque is liable for offence of Sec. 138 of N.I. Act but not u/s. 420 of IPC (1989 Cuttack Law Times 719).

20. Time barred debt: Where cheque itself was issued for a time barred debt, there cannot be conviction under provisions (1997 (2) Crimes 658). Where the loan was taken in 1985 and cheque was issued in 1990 and the loan is barred by limitation, drawer of cheque cannot be prosecuted (1997 (1) ALT (Cri.) 509.

21. Payment after receipt of notice: Where accused made tender of amount after receiving notice, cannot be visited with any consequences for non-payment (1994 Crl. Law Journal 2768).

22. Refer to drawer: The bank endorsement “refer to drawer” also may fall within the ambit of the provisions of Sec. 138 of N.I. Act. - 1994 Crl. LJ 2874; 1995 Crl. LJ 3828; 1994 (1) Crimes 606; 1995 Crl. LJ 3098.

23. Request not to present the cheque: When after issuance of a cheque and before presentation for encashment, a request was made by the husband of the accused not to present the cheque. 

In spite of the same it was presented and a return. Complaint is not maintainable (1997 (1) Crimes 55); 1996 (3) Crimes 385 (Mad) = 1996 (4) CCR 92 (Mad).

24. Dismissal of complaint for default: Dismissal of complaint not proper (2002 (7) SCC 726).

25. Dismissal of complaint for default and restoration: Where the complaint is dismissed for default, in restoration application, the complainant must assign a valid reason as to what prevented him from coming to the court by the time when the case was called (1998 BC 63 (AP).

For securing the ends of justice, the Magistrate is empowered to restore the complaint filed under Sec.138 of the Act (2001 Crl. LJ 2821 Kant). However, contrary view prevails.

The order of dismissal of a complaint by a criminal court due to the absence of the complainant is a proper order (AIR 1986 SC 1440). A second complaint is permissible in law if it could be brought within the limitation imposed by the Supreme Court in the case reported in AIR 1962 SC 876.

26. Dismissal of complaint and appeal thereof: Dismissing complaint due to non-appearance of complainant resulting in acquittal of accused. Revision is not maintainable and only appeal lies to High Court u/s.378 (4) of Cr. P.C. (II 2003 CCR 387 HP).

27. Default of fine u/s.138 of N.I. Act. : Sentence of imprisonment in default of payment of fine – Imposition of imprisonment and challenge thereof. Sec.138 does not provide for such sentence. Hence, sentence in default of fine set aside (2006 (9) SCC 784.

Note-I tried to write this article with lot of outside references as I am not a lawman. However, readers are requested to notify if there are any mistake/wrong information they found. This blog will not be held responsible if anyone take legal steps based upon the fact stated in this article. You are kindly requested to consult with your lawyer for this.

Courtsy:ramanamurty9967@yahoo.co.in

Sebi spikes ICICI charge

The capital market regulator has rejected ICICI Bank’s charge that a cabal of market manipulators had hammered its stock recently. The Securities and Exchange Board of India (Sebi), which trawled data on stock trades between September 8 and October 8, said there was no evidence of manipulative trading. On September 17, K.V. Kamath, managing director and CEO of ICICI Bank, had complained to the regulator that certain vested interests had mauled the stock after spreading rumours that the bank was in trouble. The private sector bank had also filed a first information report with the Economic Offences Wing of the Mumbai police against a bear cartel of brokers. Although it did not name anyone, the bank said it had conducted investigations to identify the source of misleading statements. “None of the major sellers were observed to be placing orders successively at lower price. There was no pattern observed regarding placement of successive orders at lower price by sellers to hammer down the price. There was no pattern of booking intra-day profits by major clients or brokers during this period,’’ Sebi said today. It added that the trading patterns in the stock were consistent with the shareholding of ICICI — where FIIs are in a majority — the general buying and selling behaviour by FIIs and the broad movements of the market during this period. A spokesperson for ICICI Bank did not wish to comment on Sebi’s observations. The regulator said the share prices of several leading financial services companies had suffered declines against the backdrop of a global crisis in the financial sector and liquidity fears. ICICI Bank had alleged that a malicious rumour had been spread to the effect that some of the top management were selling their stock in the bank. The ICICI Bank stock fell 12.5 per cent from Rs 640 on September 15 to Rs 560.30 on September 17. According to Sebi, the shareholding pattern of ICICI Bank for the quarter ended June 30 showed that around 68 per cent of the shares were held by FIIs/foreign entities. Similarly, figures for the next quarter that ended on September 30, 2008, showed that around 65 per cent of the shares of ICICI Bank were held by FIIs/ foreign entities (ADR), while the rest was with the Indian public, including institutions.

Some views & Facts over Investments

The crisis which started from US sub prime mortgage market has ultimately grown into a full-blown global credit, liquidity & confidence crisis. The risk has moved from an individual level to mortgage lenders to corporates to investment banks to overall financial system and even countries. India has surely not remained untouched by the unprecedented global financial crisis. Globally, equity markets have witnessed heavy correction & Indian Equity Market is no exception. Sensex has corrected by over 57% so far in 2008. Due to liquidity crunch, FIIs have withdrawn $12bn from the Indian markets (CYTD) after infusing a record $17.4 bn in calendar year 2007. Being one of the best performing markets in 2007, Indian equities have seen one of the sharpest corrections. On the macro front, however, India is on a better footing compared to the start of the fiscal year. With crude correcting by over 55% from its peak of $147/bbl and other commodities also correcting (by 40-50% FYTD), inflationary expectations have fallen sharply. Inflation has fallen from peak of 12.9% in August to ~11% & given current scenario, it is expected to fall to single digit by end of December, to 6.5-7.5% by end of FY09 and further to 5% by first quarter of FY10. India's Current Account & Fiscal Deficit will also improve with fall in crude oil. With inflation cooling off, RBI seems to have rightly shifted its focus from price stability to economic growth. It has aggressively cut Repo Rate by 100bps and CRR by 250bps in a very short span. It has further relaxed ECB norms, made NRI deposits more attractive and announced quasi-cut in SLR. Globally, Central Banks are aggressively fighting the crisis. However, despite best efforts, the global economic situation will still deteriorate with US entering a phase of recession. India, though not completely decoupled, but is adequately insulated and is in a better position to cope with the crisis. India is a domestic-driven economy with relatively low leverage and low export dependence. Indian corporates are in good shape, having enjoyed a number of years of high profits and this coupled with low leverage, would allow them to weather a slowdown. The infrastructure boom in India is likely to continue, although at a slower pace led by near-term funding issues. Consumption comprises two-thirds of India's GDP and is likely to sustain its average growth rate led by increasing exemption limits for personal income tax, rising of tax slabs, farm loan waiver and the he 6th Pay Commission. India's GDP growth may moderate to 7-7.5% in FY09, however, what one needs to understand is that even with a 7% growth rate, Indian will remain one of the fastest growing economies globally. Policymakers have also indicated their willingness to support economic growth. The stage is set for monetary easing which has, in the past (FY01-03), led to growth revival, though with a lag. Given the rapidly changing dynamics in global financial markets, we expect RBI to be more explicit in its analysis of the domestic scenario and give its near-to-medium term guidance and outlook on economic growth, inflation, exchange rate stability & measures to ensure longer-term stability of the Indian financial sector. Indian market valuations have become attractive at 10xFY09E. It is much below its historic average of 18 times. Indian market has been commanding premium over valuations of other Emerging markets due to a more diversified earning base, higher Returns on Equity (RoE), consumption driven growth story & low reliance on exports. Recently, Indian valuation premium viz-a-viz other emerging markets have narrowed, thereby making India more attractive. Current times are surely tough for all of us, however, it is important to maintain our calm in these times & strategize our investments with long term horizon. If we analyze Sensex return for the last 15 years & keep a 10 year investment horizon, then Sensex has always delivered positive returns. We being long-term investors in the market, we should not be too much concerned about short-term market movements since despite the current correct, Sensex has still delivered an attractive 21% CAGR growth (FY03- 24th Oct'08). BSLI laid adequate emphasis on the quality & liquidity of it’s investment assets & you can be rest assured that your money is in safe hands and are invested in good quality assets. Every investment/productive assets needs time to deliver positive results. It is like planting a seed & watching the tree grow & yield fruits or watching an infant grow into an adult. Finally, a good investment strategy and timely execution of the strategy are important for achievement of goals. It is up to the investors to ensure that they develop the right strategy & execute it in a timely manner to reap maximum gains. That's what professional fund managers, are here to help you with.

Demat demand dries up

The market meltdown has spooked investors who were sitting on the fence, waiting for the right time to invest. Stocks have tumbled nearly 55 per cent from its peak in January this year and new investors are wary of entering the market. The growth in the number of new demat accounts, a must for stock trading and a measure of retail participation, has significantly slowed down after June and particularly in the last couple of months. The total number of demat accounts with the country’s two depository service providers, National Securities Depository Services Ltd (NSDL) and Central Depository Services Ltd (CDSL), grew from 1.20 crore at the end of December 2007 to 1.47 crore at the end of June this year. This means 27 lakh new accounts were opened during the six-month period. Investors’ demat accounts with NSDL and CDSL together stood close to 1.5 crore as of November 8. That is, an addition of less than 3 lakh new accounts since July. “First-time investors come in droves when there are high-profile initial public offerings (IPOs). This happened early this year during the public offering of Reliance Power,” said Prithvi Haldea of Prime Database, a Delhi-based firm that tracks the primary capital markets. In January, more than 13 lakh demat accounts were opened. “But since the price crash in the secondary markets in the second half of January, a number of big IPOs were withdrawn. The primary market has almost dried up with no big companies planning to float an initial or follow-on public issue till the conditions stabilise,” Haldea said. The number of demat accounts opened in the first three months of the current calendar year was 21.1 lakh. It was 5.3 lakh between April and June, and only 1.95 lakh between July and September. According to figures available with CDSL, the depository service provider could open only 3,000 demat accounts in October. Total number of investors’ account with CDSL was 53.92 lakh at the end of September and it went up to 53.95 lakh at the end of October.Data for NSDL is not available. The total number of investors’ account with NSDL as of November 8 stood at 95.82 lakh against 95.03 lakh in September — an addition of 79,000 accounts in two months

Doha Bank Signs Agreement with Birla Sunlife for Financial Products

Doha Bank today signed an agreement with Birla Sunlife Insurance Company of India to offer various personal financial products to non-resident Indians living in Qatar. Birla Sunlife Insurance is a joint venture company between Aditya Birla group of India and Sunlife Insurance of Canada. Under the agreement, Doha Bank shall provide necessary information about the various long term investments cum protection products being offered by Birla Sunlife to the non-resident Indians residing in Qatar and facilitate movement of documents and funds if they wish to purchase such financial products. There shall be three products initially on offer namely Child Education Plan, Retirement or Pension Plan and Growth Plan. Child Education Plan is a savings cum investment product under which parents shall be able to invest small sums of money on a monthly or yearly basis for their children’s future and get the same back with assured returns after the pre-determined period. Normally, the plan matures when the child attains the age of 18 and the entire return thus can be used for his/her studies in the best universities anywhere in the world. The parents have the flexibility to decide the length of the plan and the amount which they want at maturity and accordingly monthly or yearly installment can be fixed. Mr. R. Seetharaman, Deputy Chief Executive of Doha bank said that with the spiraling cost of quality education at higher levels, it is the commitment of Doha Bank to provide financial products and services to our customers who will help them in their personal financial planning to secure the future of themselves and their families. “We partnered with Birla Sunlife because it is one of the most reputed insurance company in India and has some really good financial planning products for individuals. This is also in line with Doha Bank’s commitment to offer the best financial products and services available in the market to its customers”, Mr. Seetharaman further said. Mr. Manoj Kumar, Head of Bancassurance said that the Retirement or Pension Plan is for the people who wish to plan their own future and retire from active work after certain number of years. Here, they can invest on yearly or monthly basis or can put in a lump sum amount to take care of their future. Upon maturity, the money can be fully encashed or can be converted into annuities. Similarly, Growth or Savings Plan is for the people who are looking for higher but secured returns on a short to medium term basis. “All the schemes have an additional layer of protection as the nominee gets the pre-determined sum of money in addition to the invested amounts in the unfortunate event of the death or disability of the investor”, Kumar further said. Mr. Nani Javeri, CEO of Birla Sunlife who signed the agreement with Mr. Seetharaman said that Indians can subscribe to any of the schemes directly from Qatar through Doha Bank and can still get serviced in India if they return home before the maturity of the policy. The policies can be serviced from any of the branches of Birla Sunlife spread across India. He further said that the maturity amount is fully repatriable and can be received here, if they continue to live in Qatar. Customers just have to call our Bancassurance Division directly on 4357313 or 4352161 and set up an appointment with one of our financial advisors. Our financial advisors shall visit them at their office or residence as per the customer’s convenience and shall help them in analyzing their financial requirements and helping them decide on the maturity amount and installments. Ms Simple Vaswani, Product Manager and Varij Pujara from Birla Sunlife were also present on the occasion.

Birla Sun Life Insurance ties with banks across India to increase penetration

Friends recently during a visit to a client’s home regarding life insurance product selling I have been asked a very nice question. “Which Banks do sell BSLI Product through Bancassurance in India? Birla Sun Life Insurance (BSLI), after having made its mark in the life insurance industry as a pioneer in the Bancassurance channel of distribution, has moved into the next phase in its Bancassurance model. It has announced a tie up with five cooperative banks across India. BSLI has one of the largest numbers of bank tie-ups in the life insurance industry. Seven of the most prominent banks in India sell BSLI's plans from more than 300 locations. In the initial phase BSLI has entered into a tie up with five cooperative banks in the different regions of the country. These banks will be the model setup for the region and the experience will be replicated with other cooperative banks in the region. BSLI has set up a dedicated team within the organization to drive this initiative. The company is evaluating possible tie-ups with several other cooperative banks in the country BSLI is looking at leveraging the strong relationship banking strengths of the cooperative bank partners. The strategy will be to sell simple products from its suite initially and move up the value chain with increasing awareness levels amongst customers and the staff of the banks. The tie-ups are expected to increase BSLI's reach across the various regions in India. In the North India, BSLI has tied up with Indian Mercantile Cooperative Bank, Lucknow, which has 11 branches across the state. This was the first cooperative bank to commence sales of BSLI's plans in the month of January 2006. In Bhopal the company has entered into a tie-up with Krishna Mercantile Cooperative Bank which has a strong and loyal base of customers in the city of Bhopal. In the west BSLI has entered into a tie-up with the 'Thane Bharat Sahakari Bank', Mumbai that has 12 branches and has received the license to operate 10 more branches in the state. To increase its reach in eastern India BSLI has tied with the Nagaland State Cooperative Bank, Dimapur, which has a network of 25 branches and the Jamshedpur Urban Cooperative Bank, Jamshedpur with two branches in the city of Jamshedpur. Apart from that I would like to share some information About Sun Life Financial Inc. Sun Life Financial Inc. is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of 31 December 2004, the Sun Life Financial group of companies had total assets under management of USD 298 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF". Additional information can be found at: www.sunlife.com. *Facts have been used in this article are old. That could have been changed significantly today, as on 14/11/2008.

Birla Sun Life

Source:-New Delhi, Delhi, IND, 2008-05-06 15:19:37 (IndiaPRwire.com) Birla Sun Life Insurance Company Ltd. (BSLI), the individual life business has a market share of 6.6 % amongst private life insurance players, while the group business has a market share of 7.8% amongst private life insurance players in India as on March 2008. The increase in market share is reflected in both its individual life & group businesses. Mr.Vikram Mehmi, President & CEO, Birla Sun Life Insurance remarked “ Birla Sun life Insurance has regained momentum during 2007-08. For the year ended March 2008, we have achieved APE (Annualized Premium Equivalent) of Rs. 2,204 crores, showing a growth rate of 131% resulting in the company being amongst the fastest growing life insurance companies in India”. This increase in market share & growth rate during fiscal 2008 has been realized on the back of an aggressive distribution expansion strategy & introduction of a range of innovative new plans & funds, which have provided the company unique opportunities to tap new market segments. The distribution expansion during the year recorded a phenomenal increase. This has happened across channels & on a national foot print. The branch network increased from 137 to 339; with a further 261 branches under implementation by May 2008. This expansion was national in nature across all the states & across various town classes. The bank assurance channel reflected high growth through in depth penetration of customer segments within its banking relationships. The corporate agency & broker channel witnessed phenomenal growth as a result of developing a large number of new relationships. During 2007-08, BSLI revamped its product portfolio – Launching 4 Products for Individual Segment, 3 products for Group and 7 Funds launched ( 4 Group + 3 Individual) New products have made a significant contribution to APE. The investment performance for BSLI has been strong & consistent, resulting in increased confidence of policyholders. The AUM for Birla Sun Life Insurance is about Rs.6,900 crores as on 31st March, 2008. Its Outstanding Claims Ratio is 0.41%. BSLI has a pan-India branch presence of 339 branches with over 1,00,000 advisors nationally, out of which over 500 advisors are members of the prestigious Million Dollar Round Table (MDRT). BSLI has insured over 2 million lives since inception, comprising over 1.5 million through its individual business and the rest through its Group business. About Birla Sun Life Insurance Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organisation. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future. Birla Sun Life Insurance (BSLI) has completed 7 successful years of operations & has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the Bancassurance route and through the Internet. It was the first private sector player to introduce a pure Term plan in the Indian market. This was supported by sales practices, which brought a degree of transparency that was entirely new to the market. The process of getting sales illustrations signed by customers, offering a free look period on all policies, which are now industry standards were introduced by BSLI. Being a customer centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than 2 million lives since inception and its customer base is spread across more than 1500 towns and cities in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premium income. Additional information is available at www.birlasunlife.com About Aditya Birla Group The Aditya Birla Group is a US $24 billion conglomerate with a market capitalization of US $31.5 billion (as on 31st December 2007) and is one of the largest business houses in India. It enjoys a leadership position in all the sectors in which it operates. It is anchored by a force of 100,000 employees, belonging to 25 nationalities. Its operations span 20 countries across six continents and is reckoned as India's first multinational corporation. Headquartered in Mumbai, India, over 50 per cent of the Group’s revenues flow from its overseas operations. The Group nurtures a work culture where success is built on learning and innovation. The Aditya Birla Group was recently been adjudged “The Best Employer in India and among the top 20 in Asia” by the Hewitt, Economic Times and Wall Street Journal Study 2007. Additional information is available at www.adityabirla.com About Sun Life Financial Inc. Sun Life Financial Inc. is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31st, 2007, the Sun Life Financial group of companies had total assets under management of US$386.82 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF". Additional information can be found at: www.sunlife.com

Foreign Exchange as on 03/11/2008

US $1 Rs. 49.38 UK £1 Rs. 79.92 AUS $1 Rs. 33.30 EURO Rs. 63.32 HKG $1 Rs. 6.37 YEN Rs. 0.50 SINGAPORE $1 Rs. 33.43 SW FR1 Rs. 42.85 As on Nov 3 2008

ICICI retires Rs 24k crore high-cost deposits

Contrary to belief that it was under withdrawal pressure, India's top private sector lender ICICI Bank on Sunday said that it has retired about Rs 24,000 crore expensive deposits to reduce cost and improve its bottomline. Pooh-poohing suggestions that it was under withdrawal pressures, ICICI Bank's Joint Managing Director Chanda Kochhar said, "We have retired wholesale deposits of Rs 24,000 crore in the last six months. At the same time, we have increased the Current and Savings Account (CASA) by Rs 3,000 crore in this period." "It is our conscious decision since last year to reduce our reliance on bulk deposits and shift our focus on retail deposits to reduce our costs of carrying money," she added. CASA as percentage of total deposits had increased from 25 per cent in last September to 30 per cent this September and it was something that one should go by in terms of customer confidence and low-cost deposits, she added. On reports that the bank, which fell prey to a spate of rumors casting doubts about its financial health, Kochhar told PTI in a telephonic interview from Chennai that "on the contrary, the financial health of the bank is only improving". "We have shifted our focus on retail deposits and they are on the rise. During the one year ending September, retail deposits have surged to over 52 per cent of the total deposits from less than 50 per cent and bulk deposits have come down to 48 per cent from over 50 per cent," Kochhar, who is also Chief Financial Officer of the Bank, said. As a result of slew of measures, ICICI Bank has increased its Capital Adequacy Ratio to 14.2 per cent from 13.2 per cent, she said claiming that "we have probably the highest CAR among banks in the country". Coutrsy:2 Nov, 2008, 1420 hrs IST, PTI