Before we get to the crux of the key question that how VII pay commission is going to fuel the growth; lets first see what all has been cleared by the union cabinet today in its meeting and the gist is as following as per our previous analysis for which image can be seen below:

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits.   It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC.  However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year.

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Highlights of 7th CPC recommendations: 


The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

The minimum pay has been increased from Rs.  7000 to 18000 p.m.  Starting salary of a newly recruited employee at lowest level will now be Rs.  18000 whereas for a freshly recruited Class I officer, it will be Rs.  56100.  This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.

Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :


Gratuity ceiling enhanced from Rs.  10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.

A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.

Rates of Military Service Pay revised from Rs.  1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.

Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.

Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs.  7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances.  The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.

The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.

As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.

Thus we see that it is going to get some good cash in the hands of the employees though it is a fact that the revision is lowest in past 70 years and employees are right if they demand more as it should have had been atleast compared to previous pay commission rise.

The enhanced money in hand will spur growth in two wheeler and four wheeler segment and thus Maruti is one company which needs to be watched as most of the times central govt employees while buying their first vehicle go for Maruti. Secondly we see some increase in demand of housing which means that housiung related companies or homeloan disbursement companies will get benefitted and thus DLF can be one company which can be watched unless Robert Vadera history may again come and haunt them.

It is said money makes more money and same can be also said about day trading and one can enhance their wealth using this tool and time is ripe to use our day trading tips to start making money like professionals.

As we had stated in our previous update on Britex that our sources are suggesting a likelihood of Britain announcing its exit through referendum and as a net result same thing has happened where 51.9% voted to exit the European union. However only concern is that it is the older generation above 65+ who have vehemently endorsed the idea of Britain leaving the European union.



As a net result of this referendum worldwide over $2.1 Trillion of the wealth has been lost in a single day. Have a look at area vise Britain guys who want to stick European union and leave.

However, it will take some time for the Britain to exit and all the bigger countries are now making noise that Britain should move out quickly which appears unlikely as this referendum is not binding on the UK legally.

Another problem which comes along with it in bonus is Scotland issue who want to stay in European Union and had endorsed the union with UK through referendum. However now it will raise its head again for fresh referendum whether to stay with Britain or not.

So, as traders we need not panic as situation is not that bad as was during Lehman Brothers crisis. Thus all those brave hearts can do the cherry picking. Tata motors, Tatasteel and all those companies with more exposure in UK need to be avoided in the short term; however remember that these companies are best for long term investment and these opportunities provide an opportunity to enter at reasonable price. Tata Motors’ shares went down by 8.25% due to the Brexit poll results. Tata Motors generates more a majority of its revenue from their British unit Jaguar Land Rover (JLR). In 2014-15, JLR contributed 83.2% to the total automotive revenue. Companies with a lot of exposure to Britain are likely to be impacted due to currency fluctuations.

However Indian market has recouped its losses on Friday and some intelligent traders are buying in the market when there is blood on the street. So do your cherry picking of the stock but remember to use the stop loss always and every time and make use of intraday volatility by trading with our hot stock of the day and sit with profit every day.

Brexit has taken the world by storm and we present below the infograph which will tell you all aspects about Britain exit from European Union. We should be prepared for the contingency where Britain votes for the exit from European union in the referendum and hell will let loose and when whole world says it is unlikely, we have our sources in UK who suggest that referendum is going to announce Britain exiting from European union. Do check our Jackpot tip and get the best every day as your profit in the market. Do check how Indian Traders can benefit with Britex.

Be careful while taking help from a stranger while operating the ATM as it can lead to a fraud. Have a look at below video as it can lead to the strangers looting your  money by hanging the ATM machine. Have a look at below video which will dispel all notions about taking stranger help for operating the ATM machine.

Today we are going to dispel the notion that working on rumours can be disastrous for your financial health and in this context we take a latest case of Surana Solar Ltd which gave a breakout due to a conman acting in the name of the Badshah of the market i.e. Rakesh Jhunjhunwala. It needs to be seen whether the namesake is a real one or a conman who has tried to create this frenzy in the market. However the role of SEBI also needs to be seen that whether it is trying to save its some operators as the annulment of trade story can not be an every day affair as it is a free economy.

The story has been scripted like a movie where an operator bought a chunk of shares of Surana Solar Ltd, a little micro-cap, in the name of “Rakesh Jhunjhunwala”, the Badshah of Dalal Street. As soon as the news was made public, there was frenzy amongst the punters to grab the stock.



This sent the stock price surging to an all-time high of Rs. 63. At this stage, the operator dumped his holding of the stock, leading to abnormally high volumes on the exchanges. Later, when news leaked that the “Rakesh Jhunjhunwala” who had bought the stock in the first place is not the Badshah of Dalal Street but a namesake, the stock price plunged to a low of Rs. 32.

So the whole moral of the story is that one should not get into the frenzy into buying a particular stock even if it has been bought by the God of the market as his trading style and time period of holding may be different than yours. Thus always consult your financial advisor before getting into the frenzy of the buying. These are rumour mongering tactics where the hype is created by sending sms and also creating rumours in the market by creating articficial crests/upticks in the stock chart.

It is likely that all trading for the day for 10 July and 11 July 15 is likely to be annuled as it has been a scripted scam which has led to a massive losses to the traders. However in a free economy, should we get into it and will ask where financial wisdom of traders gone.

Be with a genuine tips provider and make money like professionals and make sure that rumour mongering is nipped in the bud and avoid getting emotional and just go with best intraday tips and relax with profit by 11:30 AM every day.

Ola cab has numerous category of vehicles ranging from prime, taxi, sedan, micro, mini and shared services. They even have an out of station service which is cash only.

We had an opportunity to use the Ola Prime and Ola Micro services and we share the screenshot of the way taxi fare is calculated by them. Please note that base fare charged varies with the category of the vehicle being used.

Below we are providing screenshot of Ola micro bill which we received in the email.

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