SADHUS Vs SENSEX

Booming stock markets have managed to lure even religious-minded people. Consider this. At the crack of dawn he is awake. Then he goes on cleaning the temple, facilitating Lord’s darshan to devotees. Evening is spent preaching people. What about the day? Well, swamiji excuses himself to a room in the temple premises with a laptop and then his mind is focussed on sensex movements. And accordingly, he buys or sells stocks. His source of income? Unaccounted donations from God-fearing people who do not bother to use the donation box or take a receipt for their dakshina. With investment being a passion in Gujarat, could the priests and swamis be far behind. One such priest has a portfolio of close to Rs 1 crore.
   Religious heads from prominent temple trusts and sects are investing big time with the perks that come as unaccounted donations coming from devotees. And if the season wherein NRGs come visiting hometowns, personal collections soar to greater heights.
   Take a small village in Anand district. The swami, belonging to a popular sect, is an active intra-day trader and his knowledge about the stock market is quite impressive. "Swamis have always been rich. Earlier, they used to lend money to local businessmen and farmers and earn good returns on the loans. Now, with stock market booming, they have moved to online trading which is not only more rewarding, but also is quite personal. There is no third party involved who could spread the word," says a stock broking firm.
   Traditionally, religious trusts have been parking considerable chunk of their funds in mutual funds. Last year, a prominent sect with international network had reportedly invested Rs 190 crore in one go in Principal PNB Asset Management Co. According to the market sources, certain sects of Swaminarayan and Jains are some of the largest investors in mutual funds. Some of the Christian trusts too are investing frequently. However, this is legal and quite accepted by the society as the trust is primarily involved in the upkeep of the temple and is active in lot of public welfare projects. But, in case of swamis turning investors, it is purely for personal gains. Market sources say that number of religious leaders own portfolio worth a few lakh rupees to over a crore. Swamis averse to risks also invest in mutual funds in the name of someone else whom they can trust. Principal PNB is the only asset management company under the Bombay Public Trust Act, 1950, where the religious and charitable trusts can invest their funds. Smelling great market potential, other asset management companies too are lobbying hard to get approval from the state government to get recognition on the lines of Principal PNB.
   "Traditionally, Gujarat-based religious entities and leaders park their unaccounted funds in business houses of their followers who pay them regular returns in the form of interests. But lately they have started tracking capital market closely, thanks to the dramatic appreciation of investments. The trusts too are participating in capital market indirectly by parking their fund into mutual funds," says an Anand-based share broker who is managing large portfolios of some of prominent religious leaders. He however, reveals to divulge their identities. Another stock broker states that there are instances where religious leaders also fund their select followers to apply for IPOs. The followers have to return money after listing at predecided interest rate and profit sharing. The followers are supposed to bear the losses in case the scrip fails to perform on listing, which is a rare scene since the market is buoyant.
   It may be mentioned here that the religious leaders from some of the cults are highly educated and tech savvy. Interestingly, they have been using cell phones from the days when even incoming calls were being charged. According to the sources, tech savvy preachers usually operate through on-line platforms. In case of off-line trading, preachers opt for an demat account in the name of family member of their follower and nominate themselves in case of death of an account holder. The investor preachers also prefer to collect the account statement through their disciples instead of post. 

By Mitul thakkar

-----------------------------------Fear God!---------------------------------------------------