1. Prologue
  2. L2/P7: SENSEX Calculation, Harshad Mehta, Ketan Parekh
  3. L2/P8: 3 Major scams: Saradha, Sahara & NSEL
  4. L2/P9: Vodafone transfer pricing issue, capital gains tax & GAAR


  • Fifth lecture was done on 13th February 2015, and uploaded on youtube. Total ~2:30 hours but I’ve split it into six parts.
  • PowerPoint of the lecture, available at Mrunal.org/Download
  • Medium of instruction- Hindi.
  • English version not possible for the moment, because I’m required to teach at this batch, in Hindi/Gujarati only. Besides, same content is available in English-text articles and English PPTs on the site.

L2/P7: SENSEX Calculation, Harshad Mehta, Ketan Parekh

How is sensex calculated?

  1. recap of the topics covered in previous lecture: credit rating, inflation indexed bonds, coupon bonds, bearer bonds, Treasury bills, government securities; mutual funds, exchange traded funds, hedge funds, participatory notes, call option and put option
  2. Sensex calculation – what is free float market capitalisation? What is the formula for BSE-SENSEX? List of the 30 companies included in the BSE Sensex.
  3. Types of Investors: Bulls, Bears and Stags.
  4. Dematerialisation: NSDL, Demat Accounts explained
  5. What are the differences between PAN card and UID card?
  6. List of software is in the online trading
  7. Why does online trading stop during solar flares and Equinox?
  8. Explained – Harshad Mehta sharemarket scam, Ready forward deals.
  9. Explained- Ketan Parekh- Madhupura cooperative scam .
  10. Reforms undertaken by SEBI- circuit breaker and Badla system.


L2/P8: 3 Major scams: Saradha, Sahara & NSEL

Saradha Chit fund scam explained

  1. Why did SEBI order Saraha to stop its OFCD scheme? Why was Subrata Roy arrested? Why has Supreme Court denied him bail? SEBI-ordinance and regulation of collective investment schemes (CIS).
  2. What is commodity trading? How did Jignesh Shah commit NSEL-scam? What are the reforms undertaken by forward markets commission (FMC) and government of India?
  3. How to cheat funds work? How did Sudipta Sen commit Saradha Chit fund scam? What are the steps taken by CBI, SFIO and ED? Why was Justice Shyamal Sen commission formed?
  4. Bigger picture: why do financial scams happen in India? How to prevent them by implementing the recommendations of Justice B.N Srikrishna’s financial sector legislative reform commission (FSLRC)?
  5. What is the need of Indian financial code (IFC)
  6. Need for Financial redressal agency (FRA) as envisaged by Nachiket Mor Committee.
  7. Misc. Topics: banking ombudsman, financial stability and development Council (FSDC) vs financial stability board (FSB).


L2/P9: Vodafone transfer pricing issue, capital gains tax & GAAR

Vodafone Transfer Pricing Issue explained

  1. What is capital gains tax?
  2. The concept of tax deduction at source (TDS) and withholding tax norms.
  3. What is the controversy surrounding Vodafone-Hutch-Essar Deal? Supreme Court judgement, clarification in the income tax act.
  4. General anti-avoidance rules (GAAR), Parthsarthi Shome Panel
  5. What is Vodafone transfer pricing issue? How does undervaluation of shares affect Government’s tax revenue? Order of Bombay High Court in favor of Vodafone and decision of Modi Government not to pursue this matter further in Supreme Court.
  6. Nokia Dispute: Royalty tax row with Union and VAT-payment dispute with the State government
  7. Two types of double taxation avoidance agreements (DTAA): At and destination model and at source model.
  8. What is fiscal imperialism? How do first world countries benefit from it?