L&T Finance 9.35% NCDs – March 2019 Issue

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

L&T Finance is going to launch its public issue of secured, redeemable, non-convertible debentures (NCDs) from this coming Wednesday, 6th of March. The company plans to raise Rs. 1,500 crore from this issue, including the green-shoe option to retain oversubscription of Rs. 1,000 crore. These NCDs will carry coupon rates between 8.89% for 60 months and 9.35% for 120 months.

Maturity period will range between 37 months to 120 months, having monthly, annual and cumulative interest payment options. The issue is scheduled to remain open for 15 days only to close on March 20, 2019. However, in case of high demand for these NCDs and raising Rs. 1,500 crore before 20th March, the company might close it prematurely.

Here are the salient features of the issue you should consider before taking a decision to invest or not:

Size of the issue – Base size of the issue is Rs. 500 crore and the company will have the option to retain oversubscription to the tune of Rs. 1,500 crore, including the green-shoe option of Rs. 1,000 crore.

Minimum Investment – Investors are required to apply for a minimum of ten bonds of Rs. 1,000 face value i.e. an investment of at least Rs. 10,000.

Interest Rate on Offer, Effective Yield & Tenor of the Issue – The issue will carry coupon rate of 9.35% p.a. for a period of 120 months, 9.25% p.a. for 60 months and 9.10% p.a. for 37 months. These rates would be applicable for annual interest payment options only. Monthly interest payment option is also available with 120 months and 60 months, and coupon rates for these periods would be 8.98% p.a. and 8.89% p.a. respectively.

You can check the rates offered for different maturities and different payment options from the table below:

Categories of Investors & Allocation Ratio – The investors have been classified in the following four categories and each category will have certain percentage fixed for the allotment:

Category I – Qualified Institutional Buyers (QIBs) – 20% of the issue is reserved i.e. Rs. 300 crore

Category II – Non-Institutional Investors & Corporates – 20% of the issue is reserved i.e. Rs. 300 crore

Category III – High Net Worth Individuals (HNIs) & HUFs investing more than Rs. 10 lakhs – 30% of the issue is reserved i.e. Rs. 450 crore

Category IV – Retail Individual Investors, including HUFs investing up to Rs. 10 lakhs – 30% of the issue is reserved i.e. Rs. 450 crore

Allotment on First-Come First-Served Basis –Allotment will be made on a first-come first-served basis, as well as on a date priority basis i.e. on the date of oversubscription, the allotment will be made on a proportionate basis to all the applicants of that day on which it gets oversubscribed.

NRI/QFI Investments – Non-Resident Indians (NRIs), foreign nationals and Qualified Foreign Investors (QFIs) among others are not allowed to invest in this issue.

Ratings & Nature of NCDs – ICRA, CARE and India Ratings, the three rating agencies involved in this issue, have assigned ‘AAA/Stable’ rating to the issue, indicating the issue to be safe as far as timely payments of interest and principal investments are concerned. As mentioned above as well, all these NCDs are ‘Secured’ in nature.

Demat Account Mandatory – The company has decided to issue these NCDs compulsorily in demat form. So, if you don’t have a demat account, you won’t be able to apply for these NCDs.

ASBA Mandatory – Like equity IPOs, SEBI has made ASBA mandatory to apply for debt issues also, effective October 1, 2018. So, you are no longer required to issue cheques to apply for these NCD issues. In case of physical applications, you just need to sign on the application form as per your bank records.

Taxability & TDS – No TDS in Demat Form – Interest income with these NCDs is taxable in the hands of the investors and you will have to pay tax on the interest income while filing your income tax return. However, as demat account is mandatory to invest in this issue, no TDS would get deducted from your interest income on NCDs held in demat form.

But, in case you decide to close your demat account, you can get these NCDs rematerialised. So, if rematerialised and held in physical form after the allotment, and if the annual interest income is more than Rs. 5,000, TDS @ 10% will be deducted.

Listing, Premature Withdrawal – L&T Finance has decided to get its NCDs listed on both the stock exchanges, Bombay Stock Exchange (BSE) as well as National Stock Exchange (NSE). Allotment as well as listing of these NCDs will happen within 6 working days from the closing date of the issue. There is no option of a premature redemption back to the company. However, the investors can always sell these NCDs on the stock exchanges to encash their investments.

Should you invest in L&T Finance 9.35% NCDs?

What we have seen recently in the cases of IL&FS and especially DHFL, it has taught us that nothing is permanent in the financial world and things could change very quickly with any of the private lenders. It doesn’t mean that we should never invest with private companies. I just want to reiterate here that one should be mentally prepared for any kind of adverse event with private companies, and enough research should be done before you hand over your hard-earned money to these private companies.

L&T Finance is a fundamentally sound company and has the brand name of L&T to generate trust with its investors. Probably that is why also it has been rated ‘AAA’ by the rating agencies. But, after all it is a private company. As I have expressed my views earlier as well, one should invest in such debt instruments of private companies for the shortest maturity period, and here 120 months is a very long period of investment with a private company. So, personally I would advise my clients to avoid such a long period of investment with L&T Finance. If you trust L&T Finance more than any other private lender, then you should go with 60-months tenor, otherwise there is not much difference in interest rates of 60 months and 37 months tenors. So, ideally one should invest for 37 months only.

On the other hand, more conservative investors should wait for the NHAI issue details to get announced. God knows why, but the wait for the NHAI issue has been longer than what I initially expected. I hope they issue their bonds this month itself, otherwise I don’t think their issue will see the light anytime before the elections get over and it could even get delayed by 2-3 months after the new government gets going.

Application Forms – L&T Finance NCDs

Note: As per SEBI guidelines, ‘Bidding’ is mandatory before banking the application form, else the application is liable to get rejected. For bidding of your application, any further info or to invest in L&T Finance NCDs, you can contact us at +91-9811797407

Mahindra & Mahindra Financial Services 9.50% NCDs – January 2019 Issue

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at shivskukreja@gmail.com

Mahindra & Mahindra Financial Services Limited (MMFSL) is launching its public issue of non-convertible debentures (NCDs) from Friday this week, January 4, 2019. This will be the first public issue of NCDs by the company this financial year. The company plans to raise Rs. 3,500 crore from this issue, including the green shoe option of Rs. 3,000 crore.

These NCDs will carry coupon rates in the range of 9.05% to 9.50%, resulting in an effective yield of 9.07% to 9.50% for the investors. The issue is scheduled to close on January 25, unless the company decides to foreclose it.

Before we take a decision whether to invest in this issue or not, let us first check the salient features of this issue.

Size & Objective of the Issue – Base size of the issue is Rs. 500 crore, with an option to retain oversubscription of an additional Rs. 3,000 crore, making the total issue size to be Rs. 3,500 crore. The company plans to use the issue proceeds for its lending and financing activities, to repay interest and principal of its existing borrowings and other general corporate purposes.

Coupon Rate & Tenor of the Issue – The issue will carry coupon rate of 9.50% p.a. for a period of 120 months (10 years), 9.30% p.a. for 96 months (8 years), 9.15% p.a. for 60 months (5 years) and 9.05% p.a. for 39 months (3.25 years). Interest will be paid only on an annual basis, as the company has not provided any other interest rate payment option.

Categories of Investors & Allocation Ratio – The investors have been classified in the following four categories and each category will have the below mentioned percentage fixed in the allotment:

Category I – Qualified Institutional Bidders (QIBs) – 20% of the issue i.e. Rs. 700 crore

Category II – Non-Institutional Investors (NIIs) – 20% of the issue i.e. Rs. 700 crore

Category III – High Net Worth Individuals (HNIs) including HUFs – 30% of the issue is reserved i.e. Rs. 1,050 crore

Category IV – Resident Indian Individuals including HUFs – 30% of the issue is reserved i.e. Rs. 1,050 crore

Allotment on First Come First Served Basis – Subject to the allocation ratio, allotment will be made on a first-come first-served basis, as well as on a date priority basis, i.e. on the date of oversubscription, the allotment will be made on a proportionate basis to all the applicants of that day on which it gets oversubscribed.

NRIs Not Allowed – Non-Resident Indians (NRIs), foreign nationals and qualified foreign investors (QFIs) among others are not eligible to invest in this issue.

Credit Rating & Nature of NCDs – CARE and India Ratings have rated this issue as ‘AAA’ with a ‘Stable’ outlook. Also, these NCDs are ‘Secured’ in nature, except Series IV NCDs, the 120-months investment period option. Series IV NCDs are ‘Unsecured’ in nature.

Listing, Premature Withdrawal – These NCDs are proposed to get listed only on the Bombay Stock Exchange (BSE). The listing will take place within 6 working days after the issue gets closed. The investors will not have the option to prematurely redeem these NCDs back to the company, however the investors can always sell these NCDs on the stock exchange.

Demat A/c. Mandatory – Demat account is mandatory to invest in these NCDs as the company is not providing the option to apply for these NCDs in physical or certificate form.

No TDS – As it is mandatory to have a demat account to apply and get these NCDs allotted, no tax would get deducted at source on the interest payments. However, as the interest income is taxable, you are supposed to disclose it while filing your ITR. Moreover, in case you decide to close your demat account, you can get these NCDs rematerialised. So, if held in physical form and annual interest income is more than Rs. 5,000, TDS @ 10% will get deducted.

Minimum Investment Size – The company has fixed Rs. 10,000 as the minimum amount to invest in this issue. So, if you want to invest in this issue, you need to apply for a minimum of ten NCDs worth Rs. 1,000 each.

Should you invest in Mahindra & Mahindra Financial Services 9.50% NCDs?

The ongoing trade war between the US and China has resulted in a lot of volatility in the financial markets worldwide. Investors have also turned cautious with respect to the economic growth prospects of both these countries. Considering a high probability of these two major economies getting slower in 2019, interest rates are also expected to go down following some dovish measures expected to be taken by the central banks worldwide, including India.

So, it creates a base case in favour of some of the good fixed income investments yielding high returns at present. Do these NCDs fall in that category of attractive fixed income investments? I would say ‘Yes’, if you are a relatively conservative investor, and considering these NCDs are ‘AAA’ rated. As these NCDs are carrying higher interest rates as compared to the bank fixed deposits, they seem relatively attractive to invest in.

However, considering that ECL Finance and SREI Equipment Finance are offering 10%+ returns on their respective NCDs, I would say interest rates offered by Mahindra are on a lower side for my expectations. I would rather wait for the NHAI to launch its bonds issue sometime this month and announce its interest rates, which I expect should be closer to 9% for a 10-year option.

Application Form of Mahindra & Mahindra Financial Services 9.50% NCDs

Note: As per SEBI guidelines, ‘Bidding’ is mandatory before banking the application form, else the application is liable to get rejected. For bidding of your application, any further info or to invest in Mahindra & Mahindra Financial Services NCDs, you can contact us at +91-9811797407

Reliance CPSE ETF FFO 3

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at shivskukreja@gmail.com

Reliance Nippon Life Asset Management Limited has launched its third issue of CPSE ETF. Called CPSE ETF Further Fund Offer (FFO) 3, the issue opened yesterday for the Anchor investors and will open today for the Non-Anchor investors, including the retail investors. The government targets to raise between Rs. 12,000 to Rs. 14,000 crore from this issue by selling its stake in the eleven constituents of the CPSE ETF.

Nifty CPSE Index – It is one of the indices of the National Stock Exchange (NSE) carrying 11 public sector undertakings (PSUs) in which the central government has more than 53% stake and these companies have more than Rs. 1,000 crore in market capitalisation. All these companies are profitable and are either Maharatnas, Navratnas or Mini Ratnas.

CPSE Index Composition as on October 31, 2018 & February 28, 2017


Features of CPSE ETF Further Fund Offer (FFO) 3

High Dividend Yield & Reasonable Valuations – All the constituents of CPSE ETF are profitable and have paid around 5.25% dividend to their investors on an average. As per the data compiled by equity analysts, high dividend yield stocks carry lower volatility in returns as compared to growth stocks. So, one can expect a relatively stable performance from these stocks. Moreover, CPSE ETF has a P/E ratio of 9.37 times and P/B ratio of 1.42 times, which as compared to some of the other indices is quite attractive.

4.5% Discount for Investors – As against 3.5% discount the government had offered to the investors in its issue in March 2017, the discount has been increased to 4.5% to the investors of CPSE ETF this time around, probably because the issue size is 4 times bigger than the previous one. This 4.5% discount will be calculated on the “FFO 2 Reference Market Price” of the underlying shares of the Nifty CPSE Index and will be passed on to the CPSE ETF by the government of India.

Reference Market Price/NAV – CPSE ETF is currently trading at Rs. 24.24 on the stock exchanges. This is also its reference market price or NAV. As the investors get allotment and FFO units get listed on the stock exchanges, market price of each unit of this ETF will be linked to the Nifty CPSE Index and its returns would be quite close to the returns generated by the CPSE Index.

Investment Objective – The scheme intends to generate returns that closely correspond to the total returns generated by the Nifty CPSE Index, by investing in the securities which are constituents of the Nifty CPSE Index in the same proportion as in the index. However, the performance of the scheme may differ from that of the Nifty CPSE Index due to tracking error, scheme expenses and the initial discount of 4.5%.

Target Amount to be Raised – The government has fixed the base issue size to be Rs. 8,000 crore during this 4-day offer period. In case of oversubscription, the government plans to retain oversubscription to the extent of Rs. 4,000 crore to Rs. 6,000 crore. However, the government is yet to decide the final amount it would like to retain post the issue closure.

Minimum/Maximum Investment Size – Individual investors can invest in the scheme with a minimum investment amount of Rs. 5,000 and there is no upper limit on the investment amount. However, retail investors investing upto Rs. 2 lakhs will be given preference in allotment in case there is an oversubscription.

Allotment & Listing – As per the offer document, units of this ETF will get allotted and listed on the NSE and BSE within 5 business days from the closing date of the issue.

Demat Account Mandatory – Investors need to have a demat account to apply for this FFO. Applications without relevant demat account details are liable to get rejected.

Entry & Exit Load – This scheme is not subject to any entry load or any exit load.

Categories of Investors & Allocation Ratio

Anchor Investors – Maximum 30% of Rs. 8,000 crore i.e. Rs. 2,400 crore will be allocated to the anchor investors.

Retail Individual Investors – After the anchor book closure on November 27, retail individual investors are allowed to take up all of the remaining portion of this FFO i.e. Rs. 5,600 crore.

Qualified Institutional Buyers (QIBs) & Non-Institutional Investors (NIIs) – QIBs and NIIs will have nothing reserved for them in this FFO. They will be allotted units only if the subscription numbers of the retail investors and/or anchor investors fall short of their reserved quotas.

Application Form – CPSE ETF FFO 3

For any further info or to invest in the CPSE ETF  FFO 3, you can contact us on +91-9811797407

How to Revive Your Lapsed Life Insurance Policy?

Think of the things that went well for you this year. A rocking birthday celebration, amazing Diwali or Christmas filled with lights, New Year celebration full of fun or the last picnic with friends! The holidays you took with your family & friends were memorable too! So many things happened, and you cherished these memorable moments and events time and again. Amidst all the happy things, did you pay your term insurance premium in time?

If you wish to discontinue your term insurance policy for any reason, you can easily do so, but you are keeping your family’s future at stake while doing so. To maintain coverage, you must continue to pay the premium when due. If you do not do so, the policy will lapse, and your family won’t get the required coverage. Yes, there is no other additional cost, but it is a loss for your loved ones.

What is Term Insurance Lapse?

When you purchase a term insurance policy, you have to pay a certain amount of premium throughout the policy tenure to keep it active. In the insurance terminology, a lapsed policy is that insurance policy for which all the benefits are ceased. For some reasons, if you do not pay the due premium on time, your term plan will lapse. Such situation also arises when the policyholder fails to pay the premium even during the grace period.

How Can You Revive a Lapsed Term Life Insurance Policy?

If you have missed the premium payment, your policy will enter into a grace period zone. All term insurers give some grace period to their policyholders to enable them to pay their premiums. For term insurance policies, the grace period can be as follows:


Note, each company has its guidelines, and you should refer to your term insurance document to verify the grace period and other specific rules.

Your term life insurance policy will not lapse if the insurer receives your payment within the grace period. One important point to note is that your lifetime risk is still covered during the grace period. It means, the insurance company is always accountable for paying the sum assured if a valid claim is filed during the grace period.

Let us understand it with the help of an example. Suppose a person fails to pay the premium for a term insurance policy and unfortunately meets with an accident before the grace period ends and loses his life. Now, as the accident has happened within the grace period, the insurance company will have to pay the benefit as and when the family files the claim. However, if the accident occurs after the grace period, the insurer will not pay any benefit to the family.

What Happens After Grace Period?

If you go past the grace period without paying your premium, your term plan will lapse. It means, your beneficiaries will not get any benefit in case of any unfortunate event.

If you decide, you can still apply to revive the policy. If the insurer agrees to reinstate the policy, you will be required to pay the premium due from the end of the grace period. Again, each company has its guidelines for reinstatement.

When a term policy gets lapsed, it can be revived and brought to its full force by payment of the overdue premium (with interest) and a declaration about the current state of health or fresh medical examination. However, a lapsed policy can only be revived if the insurer agrees to do so. Following are the requirements for the reinstatement application:

  • Reinstatement Application Form: All companies will ask you to complete a reinstatement application form which is similar to the original application form you filled out at the time of buying the policy.
  • Health Statement: It is required to see if anything has changed with your health since your first application, therefore, you will have to submit a health statement.
  • New Medical Exam: Most companies won’t require this if you apply for reinstatement within a specified period. But again, it depends on the insurer.

Some Important Points to Note:

All insurance companies advise their customers to pay premiums on time as there is a multitude of premium payment options available. Here are some of the ways through which a policyholder can pay a premium:

  • Cheque/DD
  • Credit/Debit Card
  • Internet Banking
  • Wallets, like Paytm
  • Wire Transfer
  • Phone

A policyholder can issue a standing instruction to his/her bank so that premium gets deducted on a particular date. Further, a policyholder can also visit the insurer’s branch to pay the premium or place a request for a renewal cheque pickup with the insurer.

  • Customers can give the mandate to their banks to allow the premium deduction on a specified date
  • Insurers have tied up with banks so that their policyholders can pay premiums through their bank accounts. In fact, some banks are allowing people to pay their insurance premiums via ATMs

Don’t Let Your Term Insurance Policy Lapse

It is advised to continue paying the premium until the end of the term so that you can offer financial protection in the form of a sum assured to your family members in case of unexpected events. It is the most necessary backup plan for your life and the one thing that comes to your family’s rescue when life events turn sour.

Further, under Section 80C of the Income Tax Act 1961, any amount paid towards your insurance policy provides you tax deduction upto Rs 1,50,000 in a financial year. However, no tax benefit is available on a lapsed insurance policy.

Remember, term insurance is not for you, but for your family. It is your prime responsibility to take care of your loved ones which you would be able to do only if you pay your premiums on time.

PCC: What to do when police verification is not clear?

I had written about obtaining PCC (Police Clearance Certificate) about a month ago, and as a follow up to that post today I’m writing about a situation where you get a message that tells you the following:

Police verification not clear, application under review at regional passport office

My wife and I had applied for PCC and while I got mine the same day, my wife just got it last week. Unfortunately, there’s no official document that tells you what to do if you get the message about the application being under review at the regional passport office, and you have to face some uncertainty because of this.

Initially, I wanted to post this as a forum entry on India Mike which is the first search result that appears when you search for this topic, but I’m unable to sign up and post there, so I wrote this post here instead.

When we first got this message, I called up the cop who had done the verification, and asked him why the verification is not clear to which he said it is clear but the message is incorrect. He said that when you live in an address for less than 12 months, you get the message above, and you should be able to go and collect the PCC letter the very next day.

At the Passport Seva Kendra the next day, they said that the letter hasn’t come yet, and you can check after a week. The letter had still not come in a week later, but the person confirmed that the status online on his system shows that the application is approved. So, we went back a third time, and still nothing.

At this point, we realized that something is amiss and decided to go to the Regional Passport Office instead of the Passport Seva Kendra, and there we found that the application is indeed stuck.

They were waiting for clearance on the remainder of the last 12 months, while no one was actively working on doing any such thing.

My wife was able to give them address proofs of the remainder of the time there, and they gave the clearance based on that, but it was a needless wait for us because of the lack of knowledge we had about what to do next.

So, if you get a message that says verification is not clear, regardless of what anyone says, go to the Regional Passport Office immediately, find out the cause and rectify it.

Book Review: Do Androids Dream of Electric Sheep?

I’ve recently finished reading Do Androids Dream of Electric Sheep by Philip K Dick, and it is quite a good science fiction novel. If you have ever seen Battlestar Gallactica then this book will remind you of that show a lot, although the movie Blade Runner is the one that’s actually based on this book. I’ve not seen Blade Runner and that is probably why my mind kept wandering back to Battlestar Gallactica.

The novel is about an earth that has almost been destroyed by a world war called World War Terminus, and there are only a very few people who now stay there, and animals are almost extinct.

Most people have been sent to Mars by the UN, and there are androids in this world that are so similar to humans that only a certain type of test can distinguish them.

This test is an empathy test; for some reason, unlike humans, androids aren’t able to empathize with others, and while they can fake their reaction to the test, there is a slight delay in eye movement that gives them away.

The story is about a bounty hunter named Rick Deckard who is tasked with killing androids on earth, and how he begins to empathize with the androids themselves. There is an interesting passage from the book where Rick is thinking about empathy in humans, animals and androids.

For one thing, the emphatic faculty probably required an unimpaired group instinct; a solitary organism, such as a spider, would have no use for it; in fact it would tend to abort a spider’s ability to survive. It would make him conscious of the desire to live on the part of his prey. Hence all predators, even highly developed mammals such as cats, would starve. Empathy, he once had decided, must be limited to herbivores or anyhow omnivores who could depart from a meat diet. Because, ultimately, the emphatic gift blurred the boundaries between hunter and victim, between the successful and the defeated.

Empathy is one of the central themes of the book, and I feel the central question of the novel is what it means to be human, and I really liked the part of the book where Rick is wondering whether androids dream, and concludes that they do dream. The androids that escaped from Mars escaped servitude, and in that sense they did dream of a better life.

This is interesting to think about because the book starts with Rick and his wife using a device that alters their mood in the sense that you can dial it for happiness or depression and the device will give you that, so you do feel that humans have acquired some machine like features.

The thing I liked most about the story was how you see-saw from liking the androids, to disliking them, and how the thought of absence of empathy can make such a lot of difference.

Do Androids Dream of Electric Sheep is a quick read, and I think you’d enjoy reading this on a plane or a lazy weekend.

Disclosure: The link to Flipkart is an affiliate link which means I’ll get a small commission if you buy the book from this link.

How to apply for a Police Clearance Certificate for a Passport or Visa?

I had to apply for a PCC (Police Clearance Certificate) recently, and I was surprised at the lack of information about this online even though this is a very important thing without which you can’t get a passport, and some countries don’t issue you a visa.

In this post, I’m going to recount my experience and cover everything that I dealt with and learned about this process.

When do you need a PCC?

You need a PCC when applying for a passport or when applying for visas of certain countries, and while the overall process for this is similar — it is not exactly the same. As a result of this — your experience might be completely different from the experience of someone else whose situation varied only slightly.

Who issues you a PCC?

Usually, PCC is given by the Regional Passport Office of the place that you have resided in the last six months. Location is important because although the PCC is a document issued by the Ministry of External Affairs, it does mention the place it is issued at and many countries require you to get it from the place you have resided in.

This can pose challenges for people who travel for work, and don’t have an address proof in the place they currently live in.

Here is a list of all the documents that they accept as a residence proof:

If you don’t have any of these documents then getting an address proof in the form of a bank statement is your best bet.

You can change your address to your existing one at the bank which is usually a very straightforward process, and then request them to issue a bank statement for the last twelve months. You need to go to the bank to get this because the bank stamps and signs this statement, and that’s what authenticates it. The statement will not work for you if you just download it online; it needs to have the stamp of the bank.

Also, keep in mind that it should be the last twelve months, I didn’t read anywhere that this ought to be the case but they insist on it once you are at the center. The other interesting aspect about this is that the more things you have the better it is. If you have a rental agreement which is not registered, just notarize it and take it with you anyway. If your passport has a local address, but it is different from the one you’re applying for, take a copy of that as well, take a copy of all your official documents, visas that you may have for other countries, marriage certificate etc. Although these documents aren’t mentioned in the list of documents that can be given as proof, I believe they can be used as supporting documents and the staff there likes to get as many of these documents as possible.

Also, this is not written anywhere as well, you need to take your actual passport with you so they can verify that and also provide the stamp on that. This is very important. Something else that isn’t mentioned is that you have to write a letter saying why you need a PCC. This can be a simple typed letter, or even a handwritten letter.

Where do you apply for a PCC?

Go to the Passport Seva website, and take an appointment at a date and center convenient to you. I was getting appointments for the next day at Hyderabad, but I’ve heard from people that sometimes you have to wait a week or more.

When you book the appointment, there is an option to enroll into the SMS service for Rs. 35, I enrolled in that and paid the 35 rupees in cash at the center, and I think this is an important thing to keep in mind, so you keep getting updates on your status.

On the day of the appointment, take a print out of the appointment letter along with your other letters, and reach the center at the time prescribed. I’ve been there thrice now, and I don’t see any benefit of reaching there before time. At the prescribed time, they ask people who have appointments for that time to form a queue and get inside to get a token and I think this is a very simple and efficient way of managing their queue.

There were three zones – A, B and C and three officers who each do part of the process, and there is an electronic board that tells you which counter to go to based on your token number, and there are people who also escort people around counters.

At the first counter, they check the documents, and create a file for you. They ask questions about what other documents you may possibly have, and put everything relevant in that file.

At the second counter, they scan and upload these documents, as well as verify the details you filled online. I had made a mistake in entering my place of birth which they caught and corrected. You are also finger printed, and photographed at this counter.

In the third counter, the officer actually brings up your information on their computer, and it tells them whether there are issues with your case, whether there are no issues, but a physical police verification is required, or if a physical police verification isn’t required altogether.

PCC and PCC Stamp

If a physical police verification is not required altogether then they ask you to go to a counter where the individual takes the PCC letter and puts the stamps on them. He puts three stamps on them:

  1. An endorsement with your application number, and a place to hand-write the country for which the PCC is being issued.
  2. Second is a stamp of the Ministry of External Affairs.
  3. Third is the stamp of the individual authorized to give this clearance.

Not only do they stamp the PCC letter, they stamp a page on your passport as well.

After these stamps are placed, the authorized individual also signs the letter as well as passport page, and you are all set.

It is my understanding that you don’t need physical police verification if you had a verification done from the same place earlier, and it doesn’t matter how long ago that verification took place as long as there are no police records about you after that verification.

Physical Police Verification

If you do need a physical police verification then you are given a receipt number, and a document that you are supposed to take home.

They send an SMS with the name and phone number of the police officer who will come to your house to verify your details. This SMS usually comes the same or the next day, and the police officer comes the subsequent day. It is best to call the officer, and get a tentative idea of when he plans to come visit so you can be available at home when he comes there.

Here again, keep the original proof that you submitted to the passport office ready with you. If you gave a stamped bank statement, get another bank statement out, take a copy of all your documents whether they are listed or not, as well as take a copy of your passport. He will ask for all of these. He will also need signatures of two neighbors so ensure that you have two neighbors who are willing to sign as witness, any two will do, even from the same house.

How long does it take to get PCC after the verification?

This is another important thing to keep in mind — if you’ve been living in your current city for less than a year then the verification takes two to three weeks, but if you have been living in the city for more than a year then the verification is done the next week and then two or three days after that you can go to the Passport Seva Kendra and get your passport stamped and PCC letter issued.

This information is not present anywhere and it isn’t even very clear to me from which form they obtain this information, but the document that the police officer receives from the passport office contains this so make sure when filling the forms you pay attention to this.

This is everything I learned about this process, and while I truly feel the process is a lot better than the one ten years ago, there is no place where it is explained properly so you can be prepared for it. I hope this post helps people who are going to apply for a PCC and if you have any questions, or anything to add to this, please do leave a comment.

India v Australia Record at ICC Events

India is going to play Australia in the semi finals of the current world cup on Thursday next week, and I hope that India continues their great form, and beats Australia to reach the final.

India has had great form in the World Cup but terrible form in Australia just prior to the World Cup so you can use either of those performances to back your prediction, and I imagine most people around you are doing exactly that.

I’m using the World Cup performance myself to back up my prediction that India will win, and I was just curious to see how the two teams have performed in general in ICC events.

Australia has done better than India as the table below shows, but India has won a fair a bit too. But if you just consider World Cups, India has won 3 and Australia has won 7 so there Australia is much better.

India v Australia - ICC History

It is going to be a great game, and all the best to the India team!

Has India ever lost with Dhoni not out in the second innings?

As India prepares for their quarter final game with Bangladesh tomorrow, and Sri Lanka got destroyed by South Africa today, it took me back to the memories of the India – Sri Lanka final in the last World Cup, and the last game against Zimbabwe, both of which saw a very key innings from MS Dhoni.

Since, Dhoni seems to have such a fantastic temperament while chasing and in general the feeling with the Indian fans is that as long as Dhoni is there any target can be chased, I was wondering what story the numbers tell.

Keep Calm and Trust MS Dhone

HowStat.com has the record of all the innings that Dhoni has played, his scores, and the times he has been not out in them. From here you can see that there are 66 instances in all ODIs where Dhoni has remained not out. That he has played 260 games and remained not out 66 times at a percentage of 25% is quite remarkable in itself, but it doesn’t give us the answer to our question.

The next step is to actually go through each of these innings and find out which one India played second, and what was the result of that. From there, you see that there are 40 such innings, so most of his not outs have come in the second innings. Here is the result of all such games.


Rather remarkable to see that out of these 40 games, India has won 38 times, 1 game was tied, and 1 was lost by India, and the one which India lost was a game against Pakistan where everyone else got out.

You can read this number a few different ways, and I leave it to you to read it the way you want to read it, but it does show that you can truly keep calm and trust MS Dhoni.

2015 ICC Cricket World Cup – Knockout Probables

As the ICC Cricket World Cup 2015 inches towards the knockout stage, like a lot of other people, I was interested to see who India is likely to play in the quarterfinals, and assuming they win the quarterfinals, who will they play next?

Almost everyone knows that India will play Bangladesh in the quarterfinals next Thursday but when you look at the list of matches that have already been decided that can be slightly confusing.

The best World Cup schedule that I’ve seen is on Cricbuzz and if you look at it right now, you will see that they show that all the Pool A quarter finalists have their venues fixed but no one from Pool B has theirs fixed. This nonplussed me a little because if anything, the position of India as Pool B toppers is secured more solidly than any other team (except New Zealand) in Pool A so how are their venues fixed already?

It is easy to partly deduce that answer as the host having their venues fixed, but what of the rest?

It turns out that in order to facilitate people booking tickets and making travel arrangements, ICC decided the dates and places where the hosts will play their matches were they to reach the quarterfinals. In addition to that, they took the two next highest ODI ranked teams in Pool A (at the time) which were Sri Lanka and England and decided their venue in advance as well. If these two were not to make the quarter finals, then the next two teams would take their places.

This way the date and the venues of the quarterfinalists of Pool A was decided, and then ICC had the usual formula of the number one team of pool A playing the number four team of pool B, and so on.

So, the quarter finals go like this.

  • Quarter-final 1 – A1 v B4
  • Quarter-final 2 – A2 v B3
  • Quarter-final 3 – A3 v B2
  • Quarter-final 4 – A4 v B1

The above list is the one that has been talked about so far and that is the one that confused me a little because if you see the matches already decided then they don’t fit the list above.

Since the actual dates are as follows:

  • Wed 18 March: Sri Lanka vs TBD
  • Thu 19 March: Bangladesh vs TBD
  • Fri 20 March: Australia vs TBD
  • Sat 21st March: New Zealand vs TBD

If you see the two lists above, the New Zealand quarter final is the last one according to date, but according to the first list it is actually Quarter Final 1 since they are A1.

Essentially, this little confusion is what spurred me to write this post because you need to know if QF 1 is the one that’s earliest or the one with A1 v B4 to determine who India meets in the semi final (assumption duly noted).

The answer to my question is fairly obvious: that for the purposes of determining the semi finalists the position in the group and not the calendar dates will be used.

The semi finals will be held as follows:

  • Semi-final 1 – winner QF1 (A1 v B4) v winner QF3 (A3 v B2)
  • Semi-final 2 – winner QF2 (A2 v B3) v winner QF4 (A4 v B1)

Semi Finals: India v Australia?

According to the list above, India will play Semi Final 2 after beating Bangladesh in quarter finals (assumption duly noted again). Winner of QF2 will most likely be Australia after they beat whomever comes in their way. I say whomever comes in their way because Pool B is very close right now, but none of the teams who can come in number 3 look good to beat Australia.

ICC Cricket World Cup 2015 Knockout Probables

Let’s make some assumptions, and see who may come in where in the two groups.

First, the simple pool. Here is what the standings of Pool A will most likely look like.

  1. New Zealand (After beating Bangladesh)
  2. Australia (After beating Scotland)
  3. Sri Lanka
  4. Bangladesh (After losing to NZL)

Now, the hard one, Pool B.

  1. India
  2. South Africa (With a huge win against UAE and a high NRR)
  3. Pakistan (With a moderate win against Ireland)
  4. West Indies (With a win against UAE)

The difference in the NRR (Net Run Rate) between Pakistan and South Africa is so high that it doesn’t look like Pakistan can finish second in Pool B so they will either be third or if they lose to Ireland, fourth or out of the knockout. So in all likelihood, Pakistan, Ireland or West Indies will be third or fourth and it is really unlikely that they go past New Zealand and Australia in the quarter finals.

So then, it comes down to a semi final between Australia and India – are you ready for it?