Top Stories
MFs to have flexible expense ratio from October
Capital market regulator SEBI (Securities and Exchange Board of India) has announced that fungibilty of total expense ratio (TER) for the mutual fund scheme will be permitted from 1 October 2012.
The SEBI board, in its meeting on 16th August, decided to allow fungibility of TER to accord flexibility and bring about cost effectiveness. Currently, on a ceiling of 2.25% TER, 1% is the sub-ceiling for management fee while the remaining is for the operating expenses. Now, if flexibility is provided, there will be no such sub-ceilings… Read more
FM approves Rajiv Gandhi Equity Savings Scheme
The Union Finance Minister, P. Chidambaram approved a new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS),exclusively for the first time retail investors in securities market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh… Read more
STT rates are rather high: SEBI
Capital market regulator SEBI (Securities and Exchange Board of India) said that securities transaction tax (STT) should be used in such a way that it incentivises people to make investments for the long term rather than reap short term gains.
STT is a tax being levied on all transactions done on the stock exchanges at rates prescribed by the Central Government from time to time… Read more
SEBI to take efforts to revive domestic sentiment
On Tuesday, Securities and Exchange Board of India (SEBI) said that it will take measure to revive domestic investor sentiment in capital market. The regulator also added that tax rates in the securities market are high.
According to SEBI chairman UK Sinha, mutual fund investments in the market have been quite modest. The regulator will take efforts to revive domestic sentiments. Mr Sinha was speaking at the launch of the National Stock Exchange’s SME (small and medium enterprises) platform… Read more
AMCs tie up with banks to sell MF schemes
With the capital market regulator SEBI (Securities and Exchange Board of India) regulations stressing on rural penetration, asset management companies (AMCs) are further tying up with banks to sell their mutual fund schemes. In the last two months, AMCs have been signing up agreements with banks to expand their rural distribution network.
The SEBI, in August, had issued regulations asking fund houses to ensure 30% of the inflows from beyond the top 15 cities. According to SEBI, mutual funds can charge 30 basis points (bps) increase in total expense ratio if either 30% of the gross new inflows or 15% of the average assets under management (year-to-date) of the scheme is from beyond the top 15 cities.
More than six AMCs have tied-ups with banks. However, it must be noted that AMCs have always had tied-ups with banks for the distribution of mutual funds… Read more
Comments on RBI policy
Liquidity may come under pressure in short term
The 25 bps CRR cut by RBI has provided a liquidity and sentimental relief to the market. While the liquidity situation has improved on account of moderating credit growth, the liquidity may come under pressure in the short term future, Sandesh Kirkire, CEO, Kotak AMC says... Read more
DSP BlackRock comments on RBI Policy
The RBI’s signal to support systemic liquidity is likely to keep government bond prices in a range… Read more
RBI to proactively manage liquidity: Quantum MF
The Reserve Bank of India held its repo rate at 8% and rightly so, despite some heightened expectations of a rate cut as a complement to the 'heightened' actions by the government over the weekend, Arvind Chari, Senior Fund Manager (debt), Quantum MF says… Read more
RBI policy was on expected lines: Tata MF
The RBI has made it clear that the primary focus of the monetary policy remains fighting inflation, which explains why the repo rate was unchanged. Going forward, the RBI is likely to support growth through open market operations or through a CRR cut… Read more
Quote, unquote
“FDI in retail and insurance is not the big-bang reform. They (politicians) should address the fiscal deficit problem, resolve the coal issue, introduce transparent and clear policies on land acquisition, mining rights and other environmental issues, and bring in accountability of the government and public sector”
Aditya Puri, CEO, HDFC Bank, in The Economic Times
“If you tell me one Walmart coming into India will solve your agriculture problems and issues about cold chain, production, irrigation and distribution, then you must be living in a cuckoo land… The whole world has problems they don't know how to fix. By God’s grace, we know how to fix the problem, we’re just not doing it”
Aditya Puri, CEO, HDFC Bank, in The Economic Times
“How many millionaires do you know who have become wealthy by investing in savings accounts?”
Robert G Allen, Canadian-American business man
Domestic News
MFAC to study regulatory provisions in western countries
Capital market regulator SEBI (Securities and Exchange Board of India) has asked its Mutual Fund Advisory Committee (MFAC) to study regulatory provisions in western countries to suggest ways to attract retail investments into mutual funds. The MFAC has to submit a report in next three-four months. SEBI would provide all the required assistance to MFAC in this matter, media reports said… Read more
SEBI to implement strict norms for investment advisors
Capital market regulator SEBI (Securities and Exchange Board of India) is working to implement strict rules for investment advisors to control unfair trade practices. The regulator is also in process to put a cap on fees charged by them, according to media reports.
All investment advisors will have to register with SEBI after payment of required application & registration fees. The regulator eventually wants them to be regulated through a self regulatory organisation (SRO) model… Read more
AMCs to make additional disclosures to curb MF churning
Market regulator SEBI (Securities and Exchange Board of India) has asked asset management companies (AMCs) to make additional disclosures regarding their distributors to curb portfolio churning.
If a distributor has an excessive portfolio turnover ratio, i.e. more than two times the industry average, then AMCs shall conduct additional due-diligence of such distributors, according to SEBI circular issued on 13th September… Read more
Reliance Capital ties up with Indian Overseas Bank
Reliance Capital Asset Management, part of Reliance Capital Ltd., forms a distribution tie-up with Indian Overseas Bank (IOB). This was announced by Sundeep Sikka, CEO, RCAM and M. Narendra, Chairman and Managing Director, IOB.
According to the agreement, IOB will be selling Reliance Mutual Fund schemes through its 2,689 branches spread across the country… Read more
Schroder acquires 25% stake in Axis MF
Schroder Singapore Holding has acquired 25% stake in Axis Bank subsidiary Axis Asset Management Company. However, no financial details of the deal were provided. The deal provides Axis AMC access to Schroders’ global distribution network and to advise overseas funds invested in Indian securities, the private sector bank said in a statement… Read more
SBI Mutual Fund ties up with Ratnakar Bank
SBI Mutual Fund and Ratnakar Bank have entered into an alliance to offer SBI Mutual Fund's schemes through the 114 plus branches of Ratnakar Bank spread across Maharashtra, Gujarat, Delhi NCR, Karnataka, Tamil Nadu and Goa… Read more
HDFC MF ties up with Syndicate Bank
HDFC Mutual Fund and Syndicate Bank have entered into an alliance to offer the entire bouquet of HDFC Mutual Fund's schemes through the bank's 2700 plus branches across the country… Read more
Peerless MF joins hands with United Bank
Peerless Funds Management Company Ltd (PFMCL), a wholly owned subsidiary of the Kolkata-based The Peerless General Finance & Investment Company, entered into a strategic tie-up with United Bank of India (UBI), where the latter will distribute mutual fund products of PFMCL through its select branches. The signing of the Memorandum of Understanding (MoU) took place in Kolkata. This tie up would also focus on delivery of appropriate solution to retail customers of tier II and III cities. This agreement was undertaken keeping in mind that both these institutions have national footprints with a focus on the Eastern and North Eastern parts of the country… Read more
Learning
Asset allocation benefits
A multi manager helps you invest in funds across asset classes from various fund houses and helps you construct a portfolio of schemes, Arvind Bansal elaborates… Read more
Financial advisors: Scripting the future of wealth creation for Indians
‘Financial advice’ is probably the most opaque financial concept today. A country like India has witnessed a lot of ‘self-help’ as far as managing finances is concerned—citizens rarely sought financial advice because they were unaware of such services or wanted to take care of their finances themselves. This has led to a situation where Indians barely understand various savings and investment vehicles other than regular debt savings… Read more
Estate planning through living trust
We plan for our household & medical expenses, buying a house, plan for retirement, children’s education and their marriage among others. One area which gets the least focus is estate planning. Most of the people are either not aware about or are conscious of estate planning. Most of the business class plans about building business and creating assets while service class does not feel that the need since they think the ‘estate planning’ is for wealthy people… Read more
How to prepare for early retirement
In today’s fast paced world, more and more people are living longer and planning for early retirement which makes it more imperative than ever to save money so that we can live our retirement years to the maximum. Now the question of how to retire early is gaining importance and at what financial level, we can afford to retire early. Thus, we need to consider all the factors and challenges that we may face in our early retirement years… Read more
Special Stories
Investor Protection Education challenges SEBI order
On 27th September, the Gujarat High Court will hear public interest litigation (PIL) against the 20th June order of SEBI (Securities and Exchange Board of India) that the petitioner maintained was against the interests of regional stock exchanges (RSEs), investors and shareholders, the media reports said.
On June 20, capital market regulator had notified that RSEs would be required to have a net worth of at least Rs 1 billion until 31 May 2014, and turnover of Rs 10 billion per annum. If the RSEs failed to create such networth and trading platform, SEBI would derecognise such exchanges… Read more
Corporate governance in Asia is getting better, despite frauds: CLSA
CLSA Asia-Pacific Markets (CLSA), Asia’s independent brokerage & investment group, has released its Corporate Governance (CG) Watch 2012, the ninth survey of corporate governance across Asia since 2000.
Produced with the Asian Corporate Governance Association (ACGA), the report examines 864 listed companies across Asia-Pacific markets, including Japanese and Australian firms, to produce the most comprehensive assessment of corporate governance performance, issues and trends in Asia… Read more
NFOs
DSP BlackRock MF launches 12 months fixed maturity plan
DSP BlackRock Mutual Fund has launched DSP BlackRock FMP-Series 68- 12M, a close-ended income scheme with the duration of 12 months. The new issue will be open for subscription from 21 September and will close on 24 September 2012. The scheme will mature on 3 October 2013… Read more
UTI MF declares dividend for Fixed Income Interval Fund
UTI Mutual Fund has announced 25 September 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of UTI Fixed Income Interval Fund-Monthly Interval Plan I.
Kotak MF announces maturity date for FMP Series 57
Kotak Mutual Fund has announced 26 September 2012 as the maturity date of Kotak FMP Series 57. The units of the scheme will not be available for trading on the Bombay Stock Exchange of India Ltd (BSE) from 24 September 2012.
ICICI Pru MF declares dividend under its schemes
ICICI Prudential Mutual Fund has announced 26 September 2012 as the record date for declaration of dividend under the dividend option of the following schemes. The quantum of dividend per unit on the face value of Rs. 10 per unit (except for ICICI Prudential Liquid Plan, which has a face value of Rs. 100 per unit)… Read more
Axis MF declares dividend under its schemes
Axis Mutual Fund has announced 25 September 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the quarterly and half yearly dividend options of following schemes… Read more
BOI AXA Mutual Fund announces dividend under two schemes
BOI AXA Mutual Fund has announced 26 September 2012 as the record date for declaration of dividend under the quarterly dividend options of the following schemes… Read more
Pramerica MF announces dividend under 3 schemes
Pramerica Mutual Fund has announced 26 September 2012 as the record date for declaration of dividend under the following schemes… Read more
L&T FMP-IV (September 367D A) announces dividend
L&T Mutual Fund has announced 27 September 2012 as the record date for the purpose of determining the list of beneficial owners/unitholders and their eligibility to receive dividend under the dividend payout option of L&T FMP - IV (September 367D A)… Read more
UTI MF declares dividend under schemes
UTI Mutual Fund has announced 26 September 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit (except for UTI Treasury Advantage Fund, which has a face value of Rs. 1,000 per unit) under the following schemes… Read more
HDFC MF announces dividend under various schemes
HDFC Mutual Fund has announced 25 September 2012 as the record date for declaration of dividend under the following schemes… Read more
SBI MF announces dividend under Debt Fund Series-90 Days-67
SBI Mutual Fund has announced 24 September 2012 as the record date for declaration of dividend under the dividend option of SBI Debt Fund Series-90 Days-67… Read more
DSP BlackRock MF declares dividend for two schemes
DSP BlackRock Mutual Fund has announced 24 September 2012 as the record date for declaration of dividend in the dividend payout option of DSP BlackRock FMP-Series 12-12M and DSP BlackRock FMP- Series 58-3M, a close ended income scheme… Read more
Reliance MF declares dividend for Fixed Horizon Fund-XX-Series 13
Reliance Mutual Fund has announced the declaration of dividend on the face value of Rs. 10 per unit under dividend option of Reliance Fixed Horizon Fund-XX-Series 13. The record date for dividend has been fixed as 25 September 2012.
DWS Fixed Term Fund-Series 90 announces dividend
Deutsche Mutual Fund has announced 25 September 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of DWS Fixed Term Fund-Series 90… Read more
Canara Robeco MF announces dividend for Interval Scheme-Series 2
Canara Robeco Mutual Fund has announced 24 September 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the retail and institutional plan of Canara Robeco Interval Scheme-Series 2-Quarterly Plan 2… Read more
JM Arbitrage Advantage Fund announces dividend
JM Financial Mutual Fund has announced 24 September 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of JM Arbitrage Advantage Fund.
JM Fixed Maturity Fund-Series XX-b announces dividend
JM Financial Mutual Fund has announced 24 September 2012 as the record date for declaration of dividend under the dividend payout option of JM Fixed Maturity Fund-Series XX-B. The dividend amount will be realised appreciation in the NAV of the option till the record date… Read more
Tata Fixed Maturity Plan Series 37-Scheme A announces dividend
Tata Mutual Fund has announced 24 September 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under periodic dividend option of Tata Fixed Maturity Plan-Series 37-Scheme A.
L&T FMP-I (September 24M A) announces dividend
L&T Mutual Fund has announced 26 September 2012 as the record date for the purpose of determining the list of beneficial owners/nitholders and their eligibility to receive dividend under the dividend payout option of L&T FMP-I (September 24M A)… Read more
Reliance MF floats Fixed Horizon Fund-XXII-Series 27
Reliance Mutual Fund has launched Reliance Fixed Horizon Fund-XXII-Series 27, a close ended income scheme with the duration of 370 days from the date of allotment. The new issue will be open for subscription from 20 September and will close on 26 September 2012… Read more
New appointments
HSBC MF announces change in fund management responsibilities
HSBC Mutual Fund has announced that Kedar Karnik, vice president & assistant fund manager-fixed income has resigned from the services of HSBC Asset Management (India) Pvt Ltd… Read more