Om Jha, CFA

Looking out VP/AVP/Sr Manager/ Managers for Equity Capital Markets Execution– Mainboard IPOs Execution, QIP, Buy Back, FPO, Rights Issue, Open Offer, FCCB and GDR /ADR #MainboardIPOExecution #ipo #ipoexecution #EquityCapitalMarketsExecution #equity #capitamarkets

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“If you ask me if the market is fundamentally floating on water, disconnected to reality, my opinion is that it is not true,” said veteran investor Bharat Shah of ASK Asset & Wealth Management. “It is tethered to reality. It is tethered to fundamentals, and that is where the market is deriving its energy from.” Read the complete article here-https://lnkd.in/d3phjFE6

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"Quantive is Science, Qualitative is Art and Investing is combination of Science & Art." Yes, these remarkable words are enough to understand psychology of stock picking. And These are the words by Bharat Shah (Executive Director - ASK Asset & Wealth Management ) and handles over 45,000 crs. of assets. Today with Series - 1 of '💎 of Indian Markets' let's try to drive of some valueable lessons from his journey. He started his journey with non-finance role but his keen interest lied in finance and with his educational background backed by finance.His love for equity market could be judged by his dive in market in 80's where markets were considered to be place to gamble . At that time there were lack of job and security in the market place and there were least regulations though therewere no FII's that time. Despite this he was courageous enough to join Grow More, Yes this is same "Harshad Mehta wald Groww More" as Head of Research team. He had close bond with Ashwin bhai they used to have long decisions and he addresses Harshat Mehta as 'Future Firm Predictor' because of his clear and invincible vision of investing. And he also admire Charlie Munger a lot and we could find there conversation very impact full for investing and we will discuss it some other day or I will share some sources to it. Let's observe his way of Investing now: He believes in more philosophical and psychological aspect of Investing. Where he believe Quality Investing to be key parameter of investing as quality adds more durability than returns to your portfolios and good managment is also must have attribute to company you are investing in. We will purely elaborate it in upcoming posts. and I was shocked hearing his political stance. He don't admire government as a major factor effecting Indian Market. "1 out of 140B won't decide markets". His Views' on markets right now : " Markets are there, where they are expected to be" and he mentioned with inc. in earning too with increase in price. He appreciatesthe backing support of DII's and retailers who are leading the markets which is advantage for marketsas it won't effect much FII's selling. He is man with ocean of lessons on which we tried floating upon. Thank you Kushal Lodha for bringing up this conversation. Such a value adding convo. Sorry for any error / miscommunication as I am not an expert but a learner tries to share some of my valueables so hope it would have added some value in you. Share your experience and thoughts in comment section. I will try to bring such content on table with time. #Investing #EquityMarket #Stockmarket #Lessons #Billionaire #BharatShah #ASKgroup #Growmore #HarshadMehta #CharlieMunger #IndianMarkets #Analysis #Stockpicking #Research #Learning #Investor .

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https://lnkd.in/dGMUGCSY Anjali Kumari Rs 32,619 cr and rising: India Inc back with overseas bonds in 2024 Reduced hedging cost, appetite for high-yield bonds help big-dollar borrowing Overseas fundraising by Indian firms is experiencing a robust revival in 2024, following a lacklustre 2023. This resurgence is primarily driven by strong demand for high-yield bonds from international investors amid improving liquidity conditions and reduced hedging costs. The elevated global yields, a consequence of the US Federal Reserve’s rate hikes in 2023, had initially discouraged India Inc from seeking funds through overseas bonds. It turned to local borrowing amid ample domestic liquidity. “Companies are diversifying their borrowing. The hedging cost has come down, and they are preferring the overseas market because they are unable to secure large amounts from the domestic market,” said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP. “Certain lower-rated companies are not getting favourable rates or investor appetite in the domestic market. Additionally, following the RBI’s circular on bank lending to non-banking financial companies (NBFCs), banks are now more cautious about lending to NBFCs.” November last year, the Reserve Bank of India (RBI) increased risk weighting for bank loans to NBFCs, asking shadow banks to diversify their funding sources beyond traditional bank loans. This regulatory push has led NBFCs to explore alternative financing avenues, including the domestic and overseas bond markets. #bonds #ncd #debentures #overseasbond #offshorebond #debtmarkets #bondmarkets #fixedincome #dollarbond

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How do we know opposition is getting desperate. On eve of Phase 3, one media channel blackout all Modi and Pro BJP coverage. After Phase 3 NDA has won in my estimate 210-223 seats of the 290 odd contested. If this is true then they are only another 49-62 seats away from simple majority. Now this has set panic among the the international powers. Why do I say international powers? 1. Because domestic opposition is completely demoralised and disarrayed. A.No money to contest. B. No candidates. C. Pathetic leadership from INC. 2. RaGa after wealth distribution is talking about giving jobs to all unemployed in both public and Pvt sector in addition to ₹1 lac per annum. Nobody is buying this. 3. All right wing handles are seeing reduced visibility and reach on all international SM like FB, X and YouTube. This is clear frustration from international players. 4. Modi has already spelled out openly the involvement of international powers meddling in our elections. 5. Putin has clearly voiced and seconded Modi’s statements 6. FII selling to take down the markets and dampen sentiment. 7. Word of mouth rumours everywhere saying BJP is losing and lowering seat estimates. Remember 6 & 7 happened in 2019 too and Modi won with overwhelming no’s above 2014. 2024 will repeat all this.

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Dear Friends Happy Family and friends Sunday CA Parveen Jain About SOLVENCY Solvency definition Short-term vs. long-term solvency Ratios for financially solvent companies How to find a company’s financial solvency Viability vs. solvency What happens if a company is not financially solvent? We can help Every business needs to have solvency, or it’s game over very quickly, but just what does that mean in practical terms? Explore everything you need to know, starting with our solvency definition. Solvency definition Solvency refers to a company’s ability to cover its financial obligations. But it’s not simply about a company being able to pay off the debts it has now. Financial solvency also implies long-term financial stability. Let’s explore this concept in a little more depth. Short-term vs. long-term solvency The long-term ability to cover financial obligations is known as solvency. In contrast, the ability to cover your short-term debts is known as liquidity, i.e., the proportion of your business’s assets that can be quickly liquidated. So, the term ‘solvency’ always means long-term solvency, as it’s possible for a company to have high liquidity but low solvency. This would imply that the business will soon face financial difficulty. A healthy company will have a good amount of both short-term liquidity and long-term financial solvency. Ratios for financially solvent companies Assets and liabilities define solvency for a business. That is, a company needs enough assets comparative to its liabilities. Generally, businesses should aim to have twice as many assets as liabilities for a ratio of 2:1. Other ratios can also be measured to find how well-positioned a company is to cover debt, including: Debt to inventory Debt to net worth Debt to capital Debt to equity Total liabilities to net worth How to find a company’s financial solvency To work out if a company is financially solvent, look at the balance sheet or cash flow statement. The former should show a higher value in assets than liabilities. A cash flow statement should reflect timely payment of debt, as well as the company’s ability to pay those debts. In addition, it should also provide an indication of how many liabilities the company has. It’s important to remember that a company may have very few debts to pay while also exhibiting poor money management in other areas. So, while this can result in a healthy solvency ratio, the actual outlook for the company may not be as optimistic as this implies. Double entry bookkeeping will make it easy to see if money management needs to be tightened up. Viability vs. solvency Viability and solvency are both necessary for financial health, but they are not the same thing. While being financially solvent is centered around a company’s ability to pay off its debts in the long-term, viability refers to a business’s ability to turn a profit over a long period.

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The Cobra Effect! I was intrigued to learn about the origins of India's reputation as the "land of snake charmers," and my curiosity led me to some fascinating literature. During British colonial rule in India, the government faced a steep rise in the number of venomous cobras around the country. In an attempt to control the population, they devised what seemed like an elegant solution: offer a reward for every dead cobra brought to the authorities. Hand in cobra skins, receive cash. Simple, right? Not exactly... Instead of capturing wild cobras, enterprising locals started breeding them for the reward. It became an easy way to make money in an environment of scarcity. The incentive unintentionally fueled the problem. "Never, ever, think about something else when you should be thinking about the power of incentives,” said Charlie Munger. He knew a few forces, more powerful than incentives. The British government ignored them at their peril. It didn't take long for the government to react: - They scrapped the reward. - Breeders released their now worthless snakes. - The cobra population increased. Instead of solving the problem, they made it 10x worse. You might call it chaos. I call it a valuable lesson. The British government lacked foresight. They didn’t consider the downstream ramifications of their actions. It’s the law of unintended consequences. And in the world of consequences, intentions often don’t matter. Outcomes do. The government’s downfalls included: - Failed monitoring - Underestimating the power of incentives - Scrapping the reward rather than adjusting it This lesson applies to: - Business - Relationships - Life in general Those who consider consequences and think clearly not only survive—they thrive. Always evaluate the potential outcomes of your actions and plan accordingly. #LifeLessons #UnintendedConsequences #Foresight #DecisionMaking #HolisticThinking

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[ 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝐌𝐨𝐧𝐭𝐡𝐥𝐲 𝐈𝐧𝐟𝐥𝐨𝐰 𝐎𝐮𝐭𝐟𝐥𝐨𝐰 𝐑𝐞𝐩𝐨𝐫𝐭 -MF 𝐇𝐢𝐧𝐭𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐞𝐝 𝐨𝐩𝐭𝐢𝐦𝐢𝐬𝐦 𝐢𝐧 𝐒𝐦𝐚𝐥𝐥 & 𝐌𝐢𝐝𝐜𝐚𝐩 𝐬𝐞𝐠𝐞𝐦𝐞𝐧𝐭} Let us try analyze MF Industry's Monthly Inflow /Outflow report & relate it with respective indices performances. 📌Equity Oriented Schemes gets the net inflow of ₹35,944Cr as against the net inflow of ₹12,916Cr into Debt oriented schemes. 📌Sectoral/thematic Fund continue to lead in terms of not only AUM but also in terms of the higehst spike in incremental flows being at ₹7,658Cr. 📌Flexicap Fund Category stood at number 2 receving net inflow of ₹5,084Cr 📌Large Cap Funds receieves the net inflow of ₹2,548Cr vs ₹4,883Cr(Midcap) vs ₹4,112Cr (Smallcap) 📌Combined inflow of Mid & Smallcap Funds happens to be at ~9,000Cr. Please Note, the support which Mid & Smallcap stocks receievd from Mutual Funds during massive FII's sell off is quite notable & higher than what we see in headline numbers. 𝐃𝐨𝐞𝐬 𝐌𝐢𝐝𝐜𝐚𝐩 & 𝐒𝐦𝐚𝐥𝐥𝐜𝐚𝐩 𝐒𝐭𝐨𝐜𝐤𝐬 𝐛𝐮𝐲𝐢𝐧𝐠 𝐨𝐧𝐥𝐲 𝐜𝐨𝐦𝐞𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐌𝐢𝐝 & 𝐒𝐦𝐚𝐥𝐥𝐜𝐚𝐩 𝐅𝐮𝐧𝐝𝐬 from MF Industry ? 📌Answer is "NO" as there are various categories like " Large Cap & Midcap" , "Multicap" & "Flexicap" which further supports buying of Mid & Smallcap Stocks following SEBI mandate besides Flexicap Funds where exposure could be fluctuating due to its inbuilt flexibility benefit by SEBI itself. 📌Hence, I understand, total incremental support in terms of net fresh purchases into both these segments is much higher than ₹9,000Cr. 📌If we roughly calculate, we may arrive at a raw approximate number of ~₹14,500Cr looking at its average current exposure to these segments mainly into these 3 categories as mentioned. 📌Above data hints on net inflows are more inclined towards Mid & Smallcap Funds as against the miniscule net flows coming to largecap category stocks. 📌This gets translated into the respective indices performance. If we compare the performances of these 3 indices(Nifty50/Nifty Midcap100/Nifty Smallcap100), it gives us the clear picture about Why Nifty has fallen more than NiftyMidcap100 & Nifty Smallcap100 during the Oct/Nov sell off. 30th Sept'24-30th Nov'24 Nifty50@ -7.82% Nifty Midcap 100@ -6.60% Nifty Smallcap 100@ -3% Securities and Exchange Board of India (SEBI) Association of Mutual Funds in India (AMFI) Cafemutual moneycontrol.com NDTV Profit The Economic Times Business Standard CNBC-TV18

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Date: 4th July 2024 Sensex: 80049 Nifty: 24300 *Prepared by: Tarun K Gandhi* Few critical points to share & this remains my personal view & how I look markets at current juncture *Valuations* : Nifty PE Trailing PE 23.13 Nifty P/B 4.19 Dividend Yield 1.22 *Technicals* : Monthly RSI 79.72 Market Mood Index 82.03 (Above 80 indicates Extreme Greed) Now Fundamentally there's nothing wrong that I can see and we have also entered 1st quarter of the earning seasons as well. N looking at the economic indicators i.e. * India's GDP growth rate jumps to 7.8% in Q4; FY24 growth at 8.2% * June PMI Manufacturing data 58.3, fastest rate of hiring in 19 years * Fiscal deficit hits 3% of full FY25 target * India's rating upgrade possible in next 24 months: S&P * India records 0.6% current account surplus in March quarter on higher service exports, remittances * India reports fiscal surplus in May-23 due to RBI Dividend So I can share ample of evidences that shows that there's absolutely nothing wrong that can derail the economic activity in India. So in that case HOW DO WE MAKE A DECISION OF EQUITY INVESTMENTS? Answer lies with you as an investor on how you look at equity(as an investment) from time frame point of view. And does 5-10-15-20% volatility bothers you? Are you financial goals fast approaching in a very short period of time? N many more such questions that you need to ask yourself to take that decision. Now replies to above questions & many more such questions will definitely vary from person to person basis his/her *RISK PROFILE* . N basis that you need to discuss with your *Financial Advisor* and come to a conclusion. The Risk that I can see going forward & at current levels: * Technical Indicators * Most of the good news in the price * Geo-political issues * UK & US elections * Inflation in western countries still remains the challenge * Economic activities are slowing down in western countries especially US *View* : * Best way going forward in Direct equity i.e. individuals who deals directly in stock market is to completely stop *ANY LEVERAGE POSITIONS* * Look for some decent exposure in value sectors/defensive sectors like Pharma, FMCG, IT(too some extent not overly positive since its directly corelated to western countries economy), Paint industry, Chemicals with some stock picking in manufacturing, Banks(some value picks), oil & gas etc. * In case of MFs: Reduce gradually on *every 2-3%* going forward and move to Balanced Advantage, Equity Savings & Balanced Funds (Never to be Net Zero in equity exposure) * Continue your SIPs as usual & use short-blast SIPs *in case* there's decent fall * Avoid any fresh Lumpsum Investments and look for STPs for next 12 months and not 3-6months STPs Hope this might help you to atleast scan your portfolio and IT"S TIME TO BE MORE VIGILENT ON YOUR PORTFOLIO THAN EVER BEFORE since you have made decent money in last 2-3-4 years. #stockmarkets #Nifty #PMI #fiscaldeficit #portfolio #InvestmentTips

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To VC or not I came across two separate notes yesterday. One where Zomato and PolicyBazaar (InfoEdge is the common and largest investor) topped the charts on the market cap of all the 20-30 tech IPOs in the last few years. And the second about 65% IRR growth of Rohit and Kunal's investment. It got me thinking of operating entrepreneurs are yielding impressive returns compared to regular VC's Most first time founders get lured into raising VC funding as they get instant recognition from their social circle. But they suffer unimaginably. 1. The day they raise VC funding they cease to be an entrepreneur but a glorified CEO/senior exec working over time and severely under compensated. 2. Most VC's don't like founders to take enough salary (barely to make ends meet) and they don't like them to sell shares till they get an exit. I meet so many first time founders who are proud of this act of sacrifice hoping for a glorious victory at the end of it all. Their first time romance of entrepreneurship and gullibility gets exploited by VC's who misguide them at times to go without salaries/comp leaving them torn between family care and business priorities. 3. VC's like to invest in high growth, strong businesses with low risk(ideally, showing signs of profitability already) but as soon as they invest, they want the company to grow 100X continuously citing examples from the silicon valley of that one company which did amazing. They only care about the "power law" which is even 2-3 of their 10 investments work, they make enough but in that process the poor first time founder gives the best years of his life to the startup in vain as unwinding from this mindless experimentation and growth is nearly impossible 4. VC's celebrate Job's brashness or Travis's aggression and calls you a weak or a soft founder if you grow and manage business sensibly without undue aggression. They steadily try to influence your character and personality through stories of inspiration of "aggressors" but the moment you get there, ditch you for your insolence. 5. VC's don't bring any operating experience but have high conviction coming from their gut experience and reading a book or two on silicon valley startups. The reality of India dawns on to them after 10-20 years of investing and by that time, several founders have wasted their most productive years getting misguided by the intuition and gut feelings of the inexperienced VC's What's the solution - 1. There are some ideas that need VC capital and some don't - anything that required deep tech, strong network effects (mobility), research need VC capital. 2. Good businesses (so already existing business models getting improved by tech/AI etc) should not need too much VC capital. They should treat VC capital as an expensive debt and don't get influenced by VC's too much (discipline is key here). Example - D2C, or SAAS, or Edtech or Traveltech or such.

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How corporate NPS can help you earn a tax free income up to Rs 8.3 lakh ✅Budget 2024 fulfilled a long-pending wish. ✅ Your employer's contribution to NPS (corporate NPS) up to 14% can avail you deductions from your taxable income. Previously, this 14% deduction was available only to central and state governments. For everyone else, this was 10%. Budget 2024 hiked this to 14% for all private-sector and public-sector employees too. ✅This corporate NPS employer tax deduction of 14% is available only under the new income-tax regime. ✅This means that now, under the new tax regime, you pay no tax if your salary is up to Rs 8.3 lakh. Here, we have assumed that This is assuming that your basic pay is 40% of your CTC (cost-to-company). Refer to our calculations, below ⏬ ✅Those in higher salary brackets can also avail of this extra deduction, but you might need to sit with your HR to run some numbers. ✅Why? That's because as per tax laws, if employers’ total contribution towards employees’ retirement benefits is higher than Rs 7.5 lakh per annum, the excess amount is subject to tax. “This includes employers’ provident fund contribution of 12 percent, NPS contribution (10 percent or 14 percent, depending on the tax regime chosen) and superannuation benefits,” says @TiveshShah, Founder, Tru-Worth Finsultants. ✅“If your gross salary is higher than Rs 72,11,538 (assuming basic pay of 40 percent or Rs 28,84,615), the capping of Rs 7.5 lakh on employers’ contribution will come into play. Beyond this threshold, the excess contribution will attract tax at slab rates,” says @canaveenwadhwa , Vice-President, Taxmann. ✅@c_kuldip, Partner, Mainstay Tax Advisors tells us that it might be possible in some companies for HR to customise the employer contribution rate (between 10-14%) to help senior employees optimise the tax breaks. But this is not a guarantee. Read @Preeti__Kul's important and in-depth story at @moneycontrolcom Personal Finance. Thanks to @canaveenwadhwa for thr numbers.

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bond market: Highly rated corporates gain Bond Street Cred - The Economic Times - https://lnkd.in/dM6peeEp *Highly rated corporates gain Bond Street Cred* Spreads in the bond market have tightened significantly, with AAA-rated companies raising funds at some of the lowest rates seen in recent years, underscoring the demand for quality debt issues in an environment where yields are expected to soften after the latest change in the RBI’s monetary policy stance. “Spreads between government and corporate bonds have consistently narrowed in recent months, especially in the AA-rated and above categories, where most regulated investors are permitted to invest,” said Venkatakrishnan Srinivasan, Managing Partner, Rockfort Fincap LLP. “Demand from insurance companies, provident and pension funds, mutual funds, banks, foreign portfolio investors, and corporate treasuries is driving this trend as these investors look to lock in longterm AAA instruments.” Recent issuances by PowerGrid Corporation and Indian Bank, both AAA-rated public sector entities, have drawn strong demand, compressing spreads to below 20 bps. With the Reserve Bank of India (RBI) shifting to a ‘neutral’ stance from ‘withdrawal of accommodation’, investor sentiment has been further buoyed by expectations of possible rate cuts. PowerGrid raised Rs 5,000 crore at 7.08%, while Indi an Bank raised Rs 5,000 crore at 7.12%. *BALANCING RISK & REWARD* Mutual funds are also intensifying competition for AAA-rated corporate issuances, prioritising returns while managing credit risk. Fund managers are increasingly accepting lower yields in exchange for the stability of high-rated corporate bonds. A limited supply of AAArated issuances has intensified investor interest, according to bond market analysts. The slower pace of AAA issuances has also put pressure on spreads over G-secs. Investors such as insurance companies, which must mandatorily buy AA and above-rated papers, have bought infrastructure or corporate bonds to meet prescribed investment guidelines.

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This simple 0.5 kg plate at the end of the rack has taught me more about compounding than any 10 or 20-kg plate ever has. This is well illustrated by a story about Milo of Croton, a legendary wrestler and strongman of ancient Greece, who was reputed to carry a bull on his shoulders. How did he do it? One day, a newborn calf was born near Milo’s home. Milo decided to lift the small animal and carry it on his shoulders. The next day, he returned and did the same, and then again the next day, and so forth. Milo continued this routine for four more years. He kept carrying the calf on his shoulders until it was no longer a calf but a fully grown bull. The small 0.5 kg plate that you see in this picture of my lift in the gym ties in with Milo's concept. These tiny weights make a crucial difference when a heavyweight category is reached, where the increase in reps and weights is much slower. They also keep one’s ego in check. Most people in the gym will progress with weights of 5-10 kg per set, but logically this makes no sense. If this were effective, then within a year, a single human being would be able to lift an entire car based on this mathematical logic. Any large goals that you achieve in life are just a number of small events bundled together. Using this example of weightlifting, one can apply a similar analogy to investing and achieving audacious tasks at work. Jim Collins explains a similar concept for all companies that have gone from being good to great by harnessing the power of compounding through his example of the Flywheel Effect in his book 'Good to Great.'   "Picture a huge, heavy flywheel—a massive metal disk mounted horizontally on an axle about 30 feet in diameter, 2 feet thick, and weighing 5,000 pounds. Your task is to get this massive flywheel to rotate as long and as fast as possible. You push and push, as the flywheel keeps moving slowly, barely by half an inch or so. After two to three hours, the flywheel moves one turn. You keep pushing for seven, eight, nine, ten, fifty, a hundred hours while the flywheel gains momentum, and then BOOM, suddenly the flywheel is moving with great ease after the 200th hour of pushing, and now it is getting easier to push the flywheel as it has picked up significant momentum.   If you asked the person pushing the flywheel, “What was that one big push that caused this thing to go so fast?”   The person will tell you that it was the cumulative effort of all the pushing, not just that one push.   Good-to-great transformations never happen in one fell swoop. Just keep at it and be consistent with a process with tiny efforts, and over a long time, your efforts will compound into something significant.

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What’s in a name ? For the gen x, ( during 70 and 80s) the major identity proof were: A) passport, B) driving licence issued by the respective state governments. There was no PAN OR AADHAR OR VOTER ID during 1980s All the property ownership, educational certificates , bank accounts etc would be on name with initials ( esp for South Indians). Then came voter id and pan during 1990s. There was no restriction on availing voter id with initials. But for PAN, it was mandated to expand initials. When Aadhar was introduced ( during 2009), it was issued with initials. But then, came the diktat to link PAN and AADHAR. So Aadhar Names were expanded to resemble PAN name. So education certificates, bank account, property documents will still have old names with initials. Now for every reissuance of any of the identity documents, the burden of proving that it’s the same person as appearing in bank statements, education certificates and Aadhar or pan, is a nightmare. Ease of doing business as claimed by governments or ease of interaction with government officers, is not so pleasant at all states ( irrespective of whether it’s the right wing or left wing) The citizen should undergo every pain including negotiating with the security guard to oblige for parking his car or two wheeler in the complex, followed by the sheer pain or dealing with the Babus. No one listens. God save those with multiple initials ( esp from Andhra, Telangana etc) So, Let’s keep linking all identities, lest our family members will find it difficult to use, whatever little bit saved by us, after we vacate this space. God bless

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