Happy Diwali !

Wish you and your families a very happy Deepavali or Diwali as it has been known in most parts of the world. This year indeed has been bitter-sweet for all of us. We are the generation of humans experiencing one of the most dangerous pandemics in the history that has essentially threatened our way of life. When we look at the news today – as well as events and incidents in our own lives – we often find darkness surrounding us. But the human race has endured far worse pandemics; Nazism, British Rule, Plagues and Flu to name a few but never lost hope and came out of each one of them even stronger.

We may be going through difficulties in our relationships, we may be having financial difficulties, or we may be dealing with an illness that seems insurmountable. In life, we are faced with numerous challenges. We may experience some dark patches. But we do not have to be blinded by the darkness. It is at these times that we turn to the teachings of saints and mystics to find answers and solace.

These teachings are not meant for the world and humanity to just magically prevail over darkness but give strength to endure. It is important to understand that “Darkness is inevitable; to accept the dark days calmly self-dependence is the only way in darkness. One has to keep walking to cross the dark times.”

           

This is where the true spirit of Diwali teaches us to symbolically light the lamps on our own to fight the darkness. It is said that when Lord Rama returned to Ayodhya after defeating Ravana all the people in Ayodhya came together to light the darkness in the society. They had lit the lamps outside their homes, to ensure that cumulative light quashes darkness from all sides, thus conveying lord Rama that they, his people, have learnt the way to be together in tough times, irrespective of their individual differences. The society as a whole had learnt to identify the dark spots that lied within and take necessary actions to nullify that darkness which was symbolized through lighting of lamps.

Whatever you may hear or see, Diwali the festival is not religious from any perspective. It is that time of that year when you celebrate each and every part of your life and don't have to resort to any religious teachings or regulations. It depends on what part of the country you come from as interpretations and observances differ slightly but, in my state, and community, we celebrate Diwali over 4 days.

1st day (called Narak Chaturdashi) symbolizes prevalence of light over darkness and the importance of self. You are expected to start the day in the early hours of the morning before sunrise, by treating yourself to a relaxing massage followed by luxurious bath. The whole day is nothing but fun and quality time with your family and friends accompanied by various delicious foods and drinks.

2nd day (called Laxmi Poojan) symbolizes meaning of ‘money’ and ‘wealth’ in your life. It teaches us that although money is not everything it certainly has its place and deserves due importance in your life.

3rd day (called Paadava or Govardhan Pooja) celebrates one of the most important relationship between husband and wife. This day also celebrates the relationship of man and the nature. Each person is expected to never forget the partners in his/her life i.e. the spouse and nature.  

4th day (called Bhaubeej or Bhaidooj) celebrates the loving relationship of brother and sister. It is on this day every brother renews his vow to love and protect his sister for rest of his life. This day is not only the celebration of brother-sister relationship but of the womanhood; the sacred feminine.

I wish you all a very happy Diwali and a prosperous and healthy year ahead!!

M&A Deal making and the “New Normal” in post COVID era

Nothing in recent history has changed the business landscape as drastically or as quickly as the COVID-19 pandemic, which presents a real challenge for mergers or acquisitions. The Covid-19 pandemic has wrought havoc worldwide and ushered in a new era of uncertainty, leaving almost no sector of the economy untouched. The disruption caused by the COVID-19 pandemic will be far-reaching and profound. Market multiples, past cash flow generation, and other measures based on performance formed the foundation of due diligence. But is it safe to rely only on historical data if the future is dramatically different from the past?

M&A transactions just like any other human activity have slowed down dramatically. At the point of the novel coronavirus outbreak, we were in what was predominantly a sellers’ market. Deal activity was strong — more than 52,000 deals were completed in 2018, compared with 27,000 in 2002. PwC’s “Creating value beyond the deal” research found that just 61 percent of acquiring companies believed that their previous acquisition created value, and just 21 percent believed it created significant value, a reflection of the high multiples. Some of the largest deals of all time were announced during 2019 — such as the $74 billion pharma sector merger between Bristol- Myers Squibb and Celgene — and total deal value rose by 23 percent year on year to $407.5 billion. The first half of 2020 recorded the lowest deal volume in seven years and showed a 35.5 percent decrease in year-on-year volume.

Deal-making and Negotiations

Transaction agreements typically have a MAC clause that permits the purchaser to terminate the transaction when an event has materially and adversely affected the target company. Depending on the construction and context of the clause, purchasers may look to argue that the COVID-19 pandemic qualifies as such an event and attempt to terminate the transaction on that basis.

As the COVID-19 pandemic continues to evolve, so too does the M&A landscape regarding buyers’ attempts to back out of a transaction between signing and closing. In response to buyers’ efforts to avoid deals pre-closing due to changed economic conditions, there has been a noticeable uptick in Delaware court filings in recent weeks in which sellers are trying to hold buyers’ and lenders’ collective feet to the fire. Though not all of the buy-side players in these cases explicitly invoked a material adverse effect (or MAE), as their justification for nonperformance, the creative ways in which they have essentially sought to achieve the same result suggest that M&A litigation stemming from the pandemic will have a meaningful impact not just on the interpretation and drafting of future MAE provisions and carve-outs, but also on the use of other formerly less prominent potential escape hatches in purchase agreements. Below I’d like to discuss some recent cases where the transactions were significantly impacted by the pandemic.

1. WeCompany and SoftBankGroup

On October 22, 2019, The We Company (We), SoftBank Group Corp. (SBG), and Softbank Vision Fund signed a transaction that included a debt financing agreement, accelerated funding of an existing $1.5 billion warrant, and a tender offer for $3 billion of We’s stock. The transaction was set to close on April 1, 2020. Although MAE provision was absent from the transaction agreement, SBG invoked the adverse effects of COVID-19 to backout from the deal.

2. 1-800-Flowers and BedBath&Beyond

1-800-Flowers had previously agreed to buy PersonalizationMall.com from Bed Bath & Beyond for $252 million. The deal was supposed to close by March 30, but after the COVID-19 outbreak 1-800-Flowers, buyer, unilaterally declared it was delaying the closing until at least April 30, 2020 due to the uncertainties created by the COVID-19 pandemic and its own limited resources. Interestingly, 1-800-Flowers did not invoke a MAE not did they indicate they wanted to terminate the agreement. Per Bed Bath & Beyond, buyer has no authority under the agreement to unilaterally delay the closing.

3. LBrands and SycamorePartners

Sycamore Partners agreed to acquire a 55% interest in Victoria’s Secret for $525 million and take the company private. Between signing and closing, L Brands instituted wide- scale closures of Victoria’s Secret stores and employee furloughs in response to the COVID-19 pandemic – a decision Buyer claimed (i) was not presented to it beforehand for approval as required by the terms of the transaction agreement, and (ii) ultimately resulted in a MAE on the target justifying termination.

What’s the New Normal?

The question of whether a given business practice is “in the ordinary course” can be a contentious one in the age of COVID-19. Recent disputes have also shown how buyers will attempt to use the breach of an ordinary course of business covenant as a “backdoor MAC” because the definition of a MAC often also covers the occurrence of an event that would cause the seller to be unable to fulfill its obligations under the acquisition agreement.

The above cases serve to highlight an issue that predated the pandemic: even when certain adverse events are expressly or arguably excluded from an agreement’s MAE definition, their

impact may still affect compliance with the seller’s covenants, representations, and closing conditions.

No court has issued a substantive ruling to date, but how the courts will deal with these “alt- MAE” theories may decide the fate of deals at risk due to the COVID-19 pandemic – and have a lasting effect on “busted-deal” litigation.

In Dollar We Trust

Global finance refers to the financial system consisting of regulators and various financial institutions that conduct their business on an international level. To be able to foresee the future of global finance it is important to understand how the global financial systems evolved through the ages and how technology helped shape this evolution. Also, what is the future of the Dollar and more importantly where is Fed heading. Discussing these three questions together will help us understand the future of global finance. 

What is the role of technology in the evolution of global finance?

‘It’s hard to see the forest with all those trees in the way’. We’re currently going through a revolution that’s larger, arguably, than the industrial revolution. The technological revolution has transformed the way we live — how we talk, how we work, how we go about our daily business, and, yes, how we manage our finances on a global and individual level.

For decades, banks and insurers have employed the same relatively static, highly profitable business models. In fact, the financial services industry has been remarkably impervious to past assaults by innovators, partially due to the importance that scale, trust and regulatory know-how have traditionally played in this space. But today they find themselves confronted on all sides by innovators seeking to disrupt their businesses. 

It all started with various financial technologies such as alternative payment systems and lending systems, application program interfaces, robo-advisors and chatbots, big data, blockchain, cryptography and artificial intelligence, etc. being developed at the level of startups and non-financial companies, which used the recent developments to provide better financial services. However, their effectiveness, the speed and real time processing of information, the relevance and personalization of information forced the traditional participants of the world financial system mainly banks, investment companies, exchanges and insurance companies, to actively modernize their activities in order to remain competitive.

A lot of work has been done by economists, market analysts and regulatory institutions on exploring financial technologies and their impact on various sectors of the economy. The IMF representatives constantly monitor financial technologies and the dangers related to their introduction (Dong He, 2017). Neng Lai and Van Order (2017) reviewed both positive and negative effects of financial technology on the banking system in China and proposed a ring-fencing method to mitigate risks. Abadi and Brunnermeier (2018) emphasize the competitive preference of the blockchain, but they believe that it can cause instability and incorrect coordination between the participants. 

Financial technologies play crucial role in the modern transformation of the financial system, they also help improve financial activity and increase its profitability. The main characteristic of financial technologies is their ability to create innovations in the financial system. Financial assets trading, primarily securities trading, is strongly influenced by financial technology. The emergence of Internet technology has caused virtualization of exchange trading. Based on big data analytics technology, which processes huge volumes of both unstructured and structured data, passive and quantum strategies for the purchase/sale of financial assets are developed. With the help of passive strategies, more than 1,700 exchange traded funds (ETFs) with assets of over USD 3.5 trillion are managed globally. According to Bloomberg News, over the next 10 years, the passive giants Vanguard and Blackrock will manage more than USD 20 trillion.

Technology has been a major factor in the global financial system transformation. It has increased operating speed of the financial industry and its profitability, open access to the capital market for new entrants. However, the adoption of technology results in the increased complexity and unpredictability of development, as there are nonlinear correlations in the development of complex systems, which complicates the projected growth and ends up disrupting the foundations of financial systems. This does not mean disruptors will devour the old economy. incumbents are realizing that collaborating with new entrants can help them get a new perspective on their industry, better understand their strategic advantages, and even externalize aspects of their research and development. As a result, we’re seeing a growing number of collaborations between innovators and incumbents. ApplePay, the most lauded financial innovation of the past year, doesn’t attempt to disrupt payment networks like Visa and MasterCard, but instead works with them. Clearly, there is more to this story than simple disruption. How it will play out is still to be seen, although we can safely say that innovators will force incumbents to change, which should ultimately benefit the consumer.   

Currency issues (including digital)? What will happen to the dollar, and why? 

In the past 25 years over 21 countries have suffered incidents of severe inflation. In these cases, as the national currency became increasingly devalued, either due to government over-printing or large injections of counterfeit bills, citizens have privileged foreign currency in order to maintain the import of goods.

The U.S dollar, as the world’s leading reserve currency, has been that money of choice. 

Approximately 65% of all U.S. dollars are currently being used outside the United States, 80% of trade finance was conducted in dollars and close to 85% of forex trade volume involved the dollar. Globalization has intensified the financial integration of the world economy, but the dollar remains the currency of choice, whether that be for cross-border transactions, debt, or financial and foreign exchange trading. This means developments in the US that influence the dollar’s exchange rate end up having a greater impact on the rest of the world, and that’s why the US Federal Reserve (Fed) leads other central banks when it comes to monetary policy. In a nutshell, the world is far too reliant on one country’s currency and this very fact is responsible in spreading financial crises to others quickly.

Naturally, this leads to the governments having to hoard huge amounts of dollars to protect themselves against swings in the US economy. This has become more prominent during the US President Donald Trump’s trade war with China, as part of his wider overhaul of the country’s economic policy.

The increased stockpiling of dollars means borrowing costs have increased and that is why the world has suffered from lackluster inflation over the past decade. Clearly, the global currency markets need rebalancing. So, the question is ‘can Cryptocurrencies replace the U.S. dollar as the global reserve currency?’ Answer is yes, it’s possible. But for any currency to achieve that status, it needs to pass a 3-pronged test per say!

1. Medium of Exchange

For something to function as a currency, it must be an effective medium of exchange. In other words, individuals, companies and other organizations must be able to trade it for goods and services. The U.S. dollar has certainly established itself in this respect, because it's one of the most widely traded fiat currencies in the world.

The U.S. dollar loses a small amount of its buying power every year due to inflation. However, this takes place so slowly that market participants do not notice the difference. But cryptocurrencies have been extremely volatile, and this Intense volatility is a big challenge. 

Another issue is due to the very nature of the technology most of the crypto currencies are not designed to handle the traffic of a high number of users however as the technology advances this problem will subside. Further, the regulatory environment is highly complex because many nations have separate sets of rules, which means that global regulations are greatly fractured.

2. Store of Value

Another key requirement of a currency is that it must function as a store of value i.e. the cryptocurrencies must hold value over time.

Crypto currencies can be a great store of value in parts of the world that suffer from significant geopolitical turmoil, as these regions can see their native currencies experience substantial changes in value overnight. However, one of the concerns is that the digital currency's basic rules could change significantly as a result of a permanent alteration in code known as a hard fork. And even if they don't change the formula, the fact that they could? That's enough to say it's not a long-term store of value.

3. Unit of Measure

The third requirement that cryptocurrencies need to meet in order to function as a currency and possibly replace the U.S. dollar as the world's reserve currency is to function as a unit of account. At this moment, this ability is widely debated. Crypto currencies’ intense volatility is a concern and certainly undermines their use as a store of value. And to this, I think the overall generalized lack of adoption of the cryptocurrencies exacerbates the situation.

In a summary, cryptocurrencies could potentially replace the U.S. dollar as the world's reserve currency, but for this to happen, they would need to make progress in several important areas.

Longer term impact of Fed and fiscal activism?

COVID-19 pandemic and the financial shock that followed has reaffirmed that the central banks are the first responders of economic policy. They hold the reins of the global economy. But unlike national Treasuries that act from above by way of taxing and government spending, the central banks are in the market. Whereas the Treasuries have budgets limited by parliamentary or congressional vote, the firepower of the central bank is essentially limitless. Money created by central banks only shows up on their balance sheets, not in the debt of the state. Central banks don’t need to raise taxes or find buyers of their debt. This gives them huge power. How this power is wielded and under what regime of justification defines the limits of economic policy. 

The Federal Reserve has been at the center of the health crisis by actively using its full toolkit on monetary policy measures that will maintain the economy afloat while injecting enough liquidity in the financial markets. However, the harm from an inadequate response to the pandemic and the sharp economic contraction could be far more serious than in other recessions the country has faced in recent decades. The mainstream economic view now is that debt worries should not inhibit the response to the recession and that the United States has sufficient fiscal space to do so. 

The Fed has not walked away from the challenge but there is only so much it can accomplish with traditional monetary policy. The Fed must continue to act as an independent central bank from the Government, however its role needs to be “upgraded” and perhaps re-established. It can leverage technology to implement completely independent, unbiased monetary policy. Only then can we truly understand the role of the Fed in the new world of digital currency. 

Aamir Khan – Ajay Singh or Rehan Qadri

It was not just yet another hour of meaningless perusal of News yesterday but more of ‘nail in the coffin’ moment for me. For whatever personal and sometimes outlandishly skewed reasons, I’ve always been oblivious to any comments made by so-called celebrities of India. But Aamir Khan was never included in that club for me obviously due to his mature acting stakes as well as more of ‘Only Cerebral Bollywood personality’ style. Hence when an actor like him makes a statement about leaving a country it certainly makes you wonder whether Aamir is buying into that awful and specious doctrine of “Muslims don’t have their allegiance to India”.

At an awards function yesterday, Aamir launched a broadside against the climate of intolerance in the country. That wasn’t surprising. What was utterly jaw-dropping, however, was the way he chose to come on board the anti-intolerance bandwagon. He said that his wife often wonders if they should move out of the country. “That’s a disastrous and big statement for Kiran to make,” he said. “She fears for her child. She fears about what the atmosphere around us will be. That does indicate there is this sense of growing disquiet… apart from alarm… That sense does exist in me.”

What surprised and equally disturbed me is that how Aamir Khan failed to understand the gravity of his words? When the intolerance debate was raging across the county, with several film personalities returning their awards along with writers and so-called intellectuals, he was silent. In the aftermath of the Dadri lynching and the hysteria over beef, his fellow Bollywood biggie Shahrukh Khan courted controversy by declaring that there was “extreme intolerance” in the country. But he was still silent. Was it only because he felt compelled to wait for an appropriate time to make a blockbuster statement so as to cash in maximum popularity?

I am not against expressing one’s own views or concerns because I am a true believer of Voltaire’s view “I may disapprove of what you say, but I will defend to the death your right to say it” but I feel Aamir Khan’s indictment of intolerance has been thoughtless, irresponsible and contradictory to his own publicly preached values. When he talks about feeling insecure, when he talks about his wife fearing for their child, that fear spreads like a contagion and affects India’s teeming hinterland where most Hindus and Muslims live peacefully; it provokes fear and suspicion where probably none exists. This expression of my view is not just a futile attempt to rationalize some irrelevant, stupid comments made by uneducated Indian celebrities but to express pain suffered by a deeply wounded patriotic heart. 

According to Aamir, it is his ‘Hindu’ wife who is in the need of moving out of the country with his family. However by endorsing the comments of his wife what he is saying, in effect, that the atmosphere of intolerance backed by so-called persecution of minorities is so intense in the country today that his wife fears for the safety of her child who is Muslim. Does Aamir know what a life of refugee which his wife is contemplating to be truly is? If he does not understand that, I’d recommend him and his wife to read the memoirs of Syrian, Iraqi, Afghani and Kashmiri refugees, feel their pain by meeting and talking to these people, participating in the aid embargo for these people.

What hurt me the most is by making this public statement Aamir has put India in the list of countries like Afghanistan, Syria, Iraq and ISIS infiltrated Middle East. I know I am an ordinary unimportant person just like any other ordinary middle class Indian in eyes of the privileged, rarified Bollywood existence but would certainly like an opportunity to get following questions answered by not just Aamir Khan but all the other celebrities who feel this magnificent country has suddenly become the most intolerant nation on the face of the earth in last year or so.

·         I’ll start with the most recent happenings because human memory is very short term. Per the officially published records, your recent movie PK made approx. $120M on the box office when compared to mere $13M put into the budget. This movie was entirely based on the bashing of Hindu Gods and Godmen who are worshipped by over 60% of India’s Hindu population who happen to be approximately 80% of the country’s total population. Did it ever occur to you, that had you made a similar movie on bashing Islam, Islamism, Islamists and/or Islamic Ideology of Jihad (I assume you understand the basic differences in all these 4 terms) in any Muslim country such as Pakistan, Bangladesh, any of the Arab countries; you would’ve been hanged or have been issued a Fatwah against?

·             I know that actors just parrot the dialogues given to them by the real ‘makers’ of the movies but I always thought that you actually understood the dialogues and those really meant to you. Being a movie fanatic I happen to remember almost each and every dialogue of the movies I’ve watched. Hence I’d like to remind a famous dialogue from you movie Sarfarosh when Salim says “Das nahi das hazar Salim milenge magar fir kabhi kisi Salim se ye mat kehna ki ye mulk uska ghar nahi hai”, your character said “Nahi fir kabhi nahi kahunga”. And now you are provoking all the Salim’s of this country to leave their motherland?

·       When you and your wife contemplate taking refuge in one of the nations that are safe for Muslims, do you intend to leave everything you have earned in this country and leave like a real refugee or like a mere gold-digger or an opportunist?

·             Why did your wife or you feel NOT insecure when your coreligionists were wreaking havoc in your own city of Mumbai on November 26^th or when Parliament was attacked or when Hindu devotees were slaughtered on the way to Amarnath in Kashmir or when Kashmiri Pandits were forced to leave the Kashmir valley? Was it only because in all these attacks the attackers were Muslims?

·             You said in your own movie Sarfarosh that India has the largest population of Muslims. Was it just mere parroting or stating of the facts?

·             When you disclosed the intent to leave the country due to intolerance, did you happen to narrow down the country you will consider for the move? Below are some countries that are assumed to be theoretically safe for Muslims based on the religion and other values.

·          Saudi Arabia:

o    I am sure you are very familiar with this country since a lot of people have seen your Haj trip as well as some of the experiences you shared about the same trip.

o    Does your wife know that she can’t practice Hinduism and has to follow Sharia law which apparently is one of the most tolerant (???) practices?

·          China

o    This country bans any Islamic practices including Ramadan

·          Russia

o    This country is known for multiple anti-Islam riots, racist practices and such.

·          USA

o    Where future presidents are calling for Nazi styled Identification requirements for Muslims, Mosque clean-ups, ban on public Namaz offering and such.

·          European countries of the developed world

o    Entire Europe is grappled with Islamophobia with multiple attacks on Muslim women, children, bans on Islamic practices, Mosques, public Namaz offerings.

·          Australia

o    Where country’s President tells the citizens that you can’t practice the religion in public unless it’s Christianity.

o    Where people are terrorized based on color of their skin and not just religion under the name of curry bashing.

·          Pakistan

o    Maybe this will be the best fit country for you considering it’s the most tolerant nation on the face of the earth that kills most no. of Muslims than any country in the world.

Is there such a perfect, peaceful and socially-integrated place on earth that you can really go to? The greatness of the people is when they stay put and face the adversities and come out triumphant for the betterment of humanity. Congress orchestrated Sikh genocide but Sikhs never left the country. Tamils, Tribal people, Dalits all faced problems of persecution in some way or the other but they stayed and fought back. The fact is that there has never been a country in the history of the world that has been as welcoming as India to any religion. India is where descendants of Prophet Mohammed found refuge when they were being persecuted by their own Umayyads. Just like when you said based on some idiotic terrorist incidents entire Islam doesn’t become bad, how dare you call my country intolerant based on a few incidents?

I am really sorry to say that the Ajay Singh we always thought you were, in reality turned out to be Rehan Qadri.

Vedic rituals – A Modern perspective!

A few days ago there was a discussion going on one of the social media ‘chat groups’ about Hinduism and it's so called stupid, out-of-fashion and lacking-common-sense customs. It made me think and believe how well the Brits and the entire Western (Christian) and Mid-western (Muslim) influence has been successful in making us believe how backward we Indians were and still are. 

Vedic and not Hindu

I’d not like to refer our traditions or religion as Hindu but Vedic as I personally don’t believe in the coined definition of ‘Hinduism’.

It is a well-known fact that the Vedic people did not call themselves Hindus but also did not possess the essential characteristics of the Hinduism of today. However, in order to legitimize the antiquity of Hinduism, Swami Dayananda Saraswati insisted on ‘going back to the Vedas’. V.D. Savarkar argued that the word ‘Hindu’ is derived from the Vedic appellation of Saptasindhus which in certain way is true but not the origin of the word. Swami Vivekananda claimed that Hinduism is the religion of the Vedas. Aurobindo Ghosh believed that the Vedas are the foundation of the Sanatana Dharma. The American born Hindutva ideologue David Frawley argues that Hinduism is the oldest religion in the world with a tradition going back to the very beginning of what we know of as history over seven thousand years ago. Frawley also equates the Vedic religion with Hindu Dharma. 

Today I’ll discuss top 21 (an auspicious number in our culture! Importance of numbers in Vedic culture will be discussed in following blogs); individual traditions that have scientific basis but are viewed as rustic traditions.

1. Namaste – Why join both hands?
• In Vedic culture, people greet each other by joining their palms - termed as “Namaskar” or act of saying Namaste.” 
• Common reason behind this tradition is that greeting by joining both the palms signifies respect. However, scientifically speaking, joining both hands ensures joining the tips of all the fingers together; which are denoted to the pressure points of eyes, ears, and mind. Pressing them together is said to activate the pressure points which helps us remember that person for a long time. 
• Sanitization is a prime factor in Vedic culture and hence greeting a stranger or any person with Namaste ensures no germs are transmitted with minimal physical contact.
2. Science behind touching feet (Charan-sparsh)
• Usually, the person of whose feet you are touching is experienced, pious and respected. When they accept your respect which came from your reduced ego (and is called your shraddha) their hearts emit positive thoughts and energy (which is called their karuna) which reaches you through their hands and toes. 
• It is important to note that Vedic culture mandates washing feet and hands before Charan-sparsh, thus ensuring sanitation.
• Since the process of giving Ashirvaad or blessing requires touching head at the point of shikha, in essence, the completed circuit enables flow of energy and increases cosmic energy, switching on a quick connect between two minds and hearts. 
• The nerves that start from our brain spread across all your body. These nerves or wires end in the fingertips of your hand and feet. When you join the fingertips of your hand to those of their opposite feet, a circuit is immediately formed and the energies of two bodies are connected. Your fingers and palms become the ‘receptor’ of energy and the feet of other person become the ‘giver’ of energy.
3. Peepal Tree
• ‘Peepal’ tree is perceived as the useless by most modernized Indians, except for its shadow. It was the same case in olden days too and hence wise men started preaching Peepal tree as a tool or path to reach god. 
• ‘Peepal’ does not a have a delicious fruit, its wood is not strong enough for any purpose then why should a common villager or person worship it or even care for it? 
• Our ancestors knew that ‘Peepal’ is one of the very few trees (or probably the only tree) which produces oxygen even at night. So in order to save this tree because of its unique property they related it to God or associated with religion.
4. Sitting on a floor and eating
• This tradition is not just about sitting on floor and eating but sitting in the “Sukhasana” position and then eating. Sukhasana is the position we normally use for Yog-asanas. 
• Sukhasana while eating helps in improving digestion.
5. Throwing coins into a river
• This tradition has been part of all ancient non-structured religions (Greek, Roman, Egyptian, Persian and Vedic). Typical reasoning given for this act is ‘Good Luck charm’. However, the real reason is scientific. 
• In ancient times, most of the currency used was made of copper, silver and gold unlike the stainless steel and other alloy coins of today. Most of the population used to use copper coins for daily use as Silver and Gold coins were very high denominations.
• As we all now know, Copper is a vital metal very useful to the human body (Importance of Copper). Throwing coins in the river was one way our fore-fathers ensured we intake sufficient copper as part of the water as rivers were the only source of drinking water. Making it a custom ensured that all of us follow the practice.
• Silver is one of the minerals used in water purification. Electrolytically dissolved silver has been used as a water disinfecting agent, for example, the drinking water supplies of the Russian Mir orbital station and the International Space Station. Many modern hospitals filter hot water through copper-silver filters to defeat MRSA and legionella infections.
6. Shikha on male head
• Sushrut rishi, the foremost surgeon of Ayurveda in Sushrut Samhita describes the master sensitive spot on the head as Adhipati Marma, where there is a nexus of all nerves. The shikha protects this spot. 
• Below, in the brain, occurs the Brahmarandhra, where the Sushumnã (nerve) arrives from the lower part of the body. In Yog, Brahmarandhra is the highest, seventh chakra, with the thousand-petalled lotus. It is the center of wisdom. The knotted shikha helps boost this center and conserve its subtle energy known as ‘Ojas’.
• In Vedic culture, women always had head covered with hair but men used to shave heads for multiple reasons. Hence Shikha was made important only for men.
7. Ear Piercing or Karna-Vedha
• Piercing the ears has a great importance in Vedic culture and is symbolized as equivalent to baptism. Many people do not know that Muslims, Jews or non-Vedic people are called Avindhya in Sanskrit because their ears are not pierced. (‘A’ – not, ‘Vindhya’ – pierced). Avindhya is not a derogatory term but just a reference that the person does not have his or her ears pierced.
• Vedic sages and doctors believed that piercing the ears helps in the development of intellect, power of thinking and decision-making faculties. 
• Talkativeness fritters away life energy. Ear piercing helps in speech-restraint. It helps to reduce impertinent behavior and the ear-channels become free from disorders. 
• Ayurveda believes that ear piercing helps prevent menstrual problems and helps in preventing SID.
• Sushrut rishi, advocates ear-piercing by saying that it prevents diseases like hernia and hydrocele. It is also believed that ear-piercing regulates the menstrual cycle in girls and prevents hysteria and other diseases.
• The meridian points in the ear lobes connect to the left and the right hemisphere of human brain, and the piercing has the activation impact. Similar effect of brain activation may achieved by doing the ‘Thoppukuranam’ or sit-ups.
8. Applying Mehendi/ henna on hands
• Besides lending color to the hands, mehendi is a very powerful medicinal herb. Weddings are stressful, and often, the stress causes headaches and fevers. As the wedding day approaches, the excitement mixed with nervous anticipation can take its toll on the bride and groom. 
• Application of mehendi can prevent too much stress because it cools the body and keeps the nerves from becoming tense. This is the reason why mehendi is applied on the hands and feet, which house nerve endings in the body.
9. Why do Indian women wear Bangles?
• Household chores mostly involve wrist movements and hence the wrist portion is in constant activity for most of the housewives and women from Ancient Vedic civilization.
• Ayurveda emphasizes a lot on pulse beat behavior for all sorts of ailments. The Bangles used by women (Silver and Gold) are worn on the wrists thus increasing the blood circulation level thru’ continuous friction. 
• Furthermore the static electricity as well as the energy passing out through outer skin is again reverted to one's own body because of the ring shaped bangles, which has no ends to pass the energy outside but to send it back to the body.
10. Why do Indian women wear toe rings?
• Wearing toe rings is not just the significance of married women but there is science behind it. 
• Normally toe rings are worn on the second toe. A particular nerve from the second toe connects the uterus and passes to heart (per Ayurveda). Wearing toe ring (silver) on this finger strengthens the uterus. It will keep it healthy by regulating the blood flow to it and menstrual cycle will be regularized. 
• As Silver is a good conductor, it also absorbs polar energies from the earth and passes it on to the body.
11. Applying Tilak on the forehead w/ Kumkum or Sindoor (Vermillion)
• On the forehead, between the two eyebrows, is a spot that is considered as a major nerve point in human body since ancient times. 
• The Tilak is believed to prevent the loss of "energy", the red 'kumkum' between the eyebrows is said to retain energy in the human body and control the various levels of concentration. While applying kumkum the points on the mid-brow region and Adnya-chakra are automatically pressed. This also facilitates the blood supply to the face muscles.
• Sindoor is prepared by mixing turmeric-lime and the metal mercury. Due to its intrinsic properties, mercury, besides controlling blood pressure also activates sexual drive. This also explains why Sindoor is prohibited for the widows. 
• For best results, Sindoor should be applied right upto the pituitary gland where all our feelings are centered. 
• Mercury is also known for removing stress and strain and hence to be applied as Tilak in form of kumkum or vermillion
12. Why should Tulsi (Indian basil) not be chewed with teeth?
• It is a popular belief that Tulsi is the wife of Lord Vishnu; therefore, chewing it will be a mark of disrespect. 
• However, botanists, in the course of their research, found that Tulsi plant has the maximum of mercury. If raw mercury is applied to teeth, it adversely affects them resulting in damage and weakening. That’s why in Vedic practices, Tulsi leaves are not chewed but swallowed.
13. Why do we worship ‘Tulsi’ plant?
• Vedic lifestyle and Sanatan Dharma has bestowed ‘Tulsi’, with the status of mother. Also known as ‘Sacred or Holy Basil’, Tulsi, has been recognized as a religious and spiritual devout in many parts of the world. The Vedic sages knew the benefits of Tulsi and that is why they personified it as a Goddess and gave a clear message to the entire community that it needs to be taken care of by the people, literate or illiterate. 
• Tulsi has great medicinal properties. Taking Tulsi every day in tea or otherwise increases immunity, detoxify body and help the drinker prevent diseases, stabilize his or her health condition, balance his or her body system and most important of all, prolong his or her life.
• Keeping Tulsi plant at home prevents insects and mosquitoes from entering the house. It is said that snakes do not dare to go near a Tulsi plant. Maybe that is why ancient people would grow lots of Tulsi near their houses.
14. Why Til-gul (sesame candy w/ Jaggery) on Sankranti?
• Til-gul is a very colorful and excellent sesame candy made of sesame seeds and jaggery. Til means sesame seeds whereas gul means jaggery in Marathi. 
• Since Makar Sankranti is celebrated in mid-winter ideally Til-gul recipe is a combination that helps keep the body warm due to these heat generating ingredients making it a healthy sweet to enjoy. 
• In Ayurveda, Sesame is considered to be an extremely beneficial and health improving medicine. 
• Sesame laddus are beneficial for those children who normally have the problem of bed-wetting in winters.
15. Why idol worship?
• Vedic religion or Sanatan Dharma propagates idol worship more than any other religion. 
• Per various research accounts and Puranas and Vedas this was initiated for the purpose of increasing concentration during prayers. 
• According to psychiatrists, a man will shape his thoughts as per what he sees. If you have 3 different objects in front of you, your thinking will change according to the object you are viewing. 
• Similarly, in ancient India, idol worship was established so that when people view idols it is easy for them to concentrate to gain spiritual energy and meditate without mental diversion.
• One thing to note is that it is not obligatory to follow idol worship if you are able to concentrate without any object and in fact that is always a preferred menthod by all the sages.
16. Why not to sleep with your head towards North?
• Myth is that it invites ghost or death but recent scientific studies have shown that human body has its own magnetic field (Also known as hearts magnetic field, because of the flow of blood) and Earth itself is a giant magnet. 
• When we sleep with head towards north, our body's magnetic field becomes completely asymmetrical to the Earth's Magnetic field. That causes problems related to blood pressure and our heart needs to work harder in order to overcome this asymmetry of Magnetic fields. Human body has significant amount of iron in blood. When we sleep in this position, iron from the whole body starts to congregate in brain. This can cause headache, Alzheimer’s disease, Cognitive Decline, Parkinson disease and brain degeneration.
• Earth has a magnetic pole stretched from north to south with the positive pole at the north and the negative pole at the south. Human bodies too have a similar magnetic stretch with the positive pole at the head and the negative one at the feet. When we lay our heads on the north side, the two positive sides repel each other and there is a struggle between the two. Since the earth has a greater magnetic force, we are always the losers, and rise in the morning with headache or heaviness.
• Earth revolves around itself from west to east, and sun's magnetic field enters earth from east side. This magnetic force enters our head if we lie with head on the east and exits through feet, promoting cool heads and warm feet as per the laws of magnetism and electricity. When the head is laid towards the west, cool feet and hot head resulting in an unpleasant start for morning.
17. Why no meat on particular days?
• Hindus do not eat meat on particular days - not limited but including: Tuesdays, Thursdays, and Saturdays. The reason is that as a human being we need only a little amount of meat to fulfill the requirements of our body such as iron, vitamin B12 and other vital nutrients. But we often get addicted to eating meat which is not good for health. It can cause diseases like piles, kidney stones, colon cancer, high cholesterol etc. Therefore, Hinduism has placed some restrictions by assigning days to particular deities.
18. Why do temples have bells?
• It’s a custom to ring the bell in Vedic Dharma when someone visits the temple and enters the inner sanctum (Garbha-Gruha). Garbha-Gruha is the place where idols are kept for worship and hence the most important part of the chamber.
• According to Agama Shastra, the sound waves created by the keep evil forces. It is also said that the bell ringing gives signifies the permission granting similar to modern days. However, the scientific reason behind this process of bell ringing is that it helps us in clearing our mind and stay focused on devoting mind to God.
• Bell is not made up of just your ordinary metal. It is made of various metals including cadmium, lead, copper, zinc, nickel, chromium and manganese. The proportion in which each one of these elements are mixed is the real science behind it.
• These bells are made in such a way that when they produce a sound it creates a unity in the Left and Right parts of our brains. The moment we ring the bell, it produces a sharp and enduring sound which lasts for minimum of 7 seconds in echo mode. The duration of echo is good enough to activate all the seven healing centers in our body. This results in emptying our brain from all negative thoughts.
19. Why do we fast?
• The underlying principle behind fasting is to be found in Ayurveda. This ancient Indian medical system sees the basic cause of many diseases as the accumulation of toxic materials in the digestive system. Regular cleansing of toxic materials keeps one healthy. By fasting, the digestive organs get rest and all body mechanisms are cleansed and corrected. A complete fast is good for heath, and the occasional intake of warm lemon juice during the period of fasting prevents the flatulence.
• Since the human body, as explained by Ayurveda, is composed of 80% liquid and 20% solid, like the earth, the gravitational force of the moon affects the fluid contents of the body. It causes emotional imbalances in the body, making some people tense, irritable and violent. Fasting acts as antidote, for it lowers the acid content in the body which helps people to retain their sanity. Research suggests there are major health benefits to caloric restriction like reduced risks of cancer, cardiovascular diseases, diabetes, immune disorders etc.
• However one thing needs to be mentioned here that traditional religious fasts conducted in today’s world by all Hindus are nowhere close to the original ‘cleansing’ fasts recommended by Ayurveda. Today’s fasts can be mainly categorized as follows
• Change of routine – Try different foods such as potatoes and other starchy foods which do not serve the purpose of resting the digestive system.
• Male dominance – Most of the fasts are recommended for women for betterment of their husbands’ lives thus signifying male dominance. 
• Islamic influence on Indian culture and traditional religion (more to follow in subsequent posts)
• Fear of God
20. Surya Namaskar / Arghya-Daan
• Vedics have a tradition of paying regards to Sun God early in the morning by water offering ritual. It was mainly because looking at Sun rays through water or directly at that time of the day is good for eyes as well as generating vitamin D.
21. Why do we have Navratras?
• Our living style has drastically changed if we compare it to the society hundreds & thousands of years ago. The traditions which we follow at present are not establishments of today but of the past. Let’s talk about why do we have Navratras twice a year unlike other festivals like Deepawali or Holi? Well, both these months are the months of changing seasons and the eating habits of both the seasons are quite different from each other.
• Navratras give enough time to the body to adjust and prepare itself for the changing season. These nine days were marked as a period when people would cleanse their body system by observing fasts ensuring avoidance of excessive salt and sugar, following fruits and milk diet, meditate, gain a lot of positive energy, gain a lot of self-confidence & increase the self-determination power (fasts are a medium to improve our will power and self-determination as explained in Patanjali Yogasutra) and finally get ready for the challenges of the changed season.