SEBI allows trading of liquid index ETFs in SLB segment
Capital market regulator SEBI (Securities and Exchange Board of India), on Thursday, allowed “liquid” Index Exchange Traded Funds (ETFs) eligible for trading in the Securities Lending and Borrowing (SLB) segment.
“Liquid Index ETFs shall be eligible for trading in the SLB segment. An Index ETF shall be deemed ‘liquid’ provided the Index ETF has traded on at least 80% of the days over the past 6 months and its impact cost over the past 6 months is less than or equal to 1%,” the circular added.
Positions limits for SLB in respect of ETFs shall be based on the assets under management of the respective ETF… Read more
AMCs to levy brokerage, transaction costs
Capital market regulator SEBI (Securities and Exchange Board of India) said that mutual fund houses can levy brokerage and transaction costs with a limit of 0.12% for cash market transactions and 0.05% for derivatives dealings.
“The brokerage and transaction cost incurred for the purpose of execution of trade may be capitalized to the extent of 12bps and 5bps for cash market transactions and derivatives transactions respectively,” SEBI said in a circular on Monday.
The circular further said, “Any payment towards brokerage and transaction cost, over and above the said 12 bps and 5bps for cash market transactions and derivatives transactions respectively may be charged to the scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations, 1996.”… Read more
SEBI relaxes HFCs exposure limit in debt funds
Capital market regulator SEBI (Securities and Exchange Board of India) on Monday relaxed the investment limit for housing finance companies (HFCs) in debt mutual funds. The total investment in the housing finance companies should not exceed 30% of the net assets of the scheme.
“Presently, the guidelines issued on prudential limit for sectoral exposure in debt oriented mutual fund schemes put a limit of 30% at the sector level. However, in light of the important role played by the Housing Finance Companies (HFCs) in the housing sector, it has been decided that an additional exposure not exceeding 10% of net assets of the scheme shall be allowed only to HFCs as part of financial services sector for prudential limits in debt oriented schemes,” the SEBI circular said… Read more
LIC, EPFO plan to fully subscribe to AI’s bond sale: Reports
Life insurance major LIC and the Employee Provident Fund Organisation (EPFO) are planning to fully subscribe to the Rs. 74bn bond sale of national carrier Air India, according to media reports.
The bond sale programme will continue to remain open till December 18, the reports added.
The 19-year-old issue has a coupon of 9.08% and will fetch 9.27% for LIC and EPFO on maturity.
JP Morgan, 2 AMCs invest Rs. 5.3 bn in Andhra Pradesh Expressway
JPMorgan on Monday said it has invested Rs. 5.3 billion in Andhra Pradesh Expressway, a Special Purpose Vehicle launched by IL&FS Transportation Networks, by subscribing to a bond issue.
JP Morgan was the sole book-runner and structuring advisor to the issue. JP Morgan also said the bonds were partly distributed to domestic mutual funds -- HDFC Mutual Fund and Franklin Templeton MF. The bonds, which carry AAA ratings by Icra and India Ratings, are structured in the form of seven tranche series having staggered maturity with the final tranche maturing at the end of 13 years.
Andhra Pradesh Expressway owns a concession for 74.6 km stretch on the NH 7, from the Kotakatta Bypass to Kurnool in Andhra Pradesh.
Srei Mutual Fund to raise $ 500 million through IDF
Srei Mutual Fund plans to raise around $ 500 million through its infrastructure debt fund (IDF). The minimum subscription for the fund is Rs. 10 million. The fund is likely to be launched in January next year.
According to Srei MF, the infrastructure debt fund would focus on the sub sectors, which provide good regulatory clarity like toll roads, power transmission, etc.
The government has allowed financial institutions to float IDFs through the mutual fund route or structure it as a non-banking financial company (NBFC) to attract long-term savings into the infrastructure sector.
Reliance Life unveils ‘face-to-face’ distribution channel
Reliance Life Insurance Company (RLIC), part of Reliance Capital Limited, on Wednesday launched Face-to-Face’ distribution channel to service its orphan customers and provide post-sales service to policyholders.
Face-to-Face is a unique service-based sales platform introduced by Reliance Life Insurance in India, which aims at servicing customers whose agents have become inactive.
The announcement was made by Mr. Malay Ghosh, President and Executive Director, Reliance Life Insurance… Read more
IOB to raise funds through perpetual bond sale
Chennai-based Indian Overseas Bank (IOB) is planning to raise funds through a perpetual bond sale. However, no details were provided by the bank about the amount being raised.
The public sector lender will soon seek approval from its board for the same. IOB had already got the approval from its Alco (asset-liability committee)… Read more
Reliance Cap to sell 26% in general insurance unit: Reports
Reliance Capital has started talks to sell 26% equity in its general insurance arm—Reliance Life—to a foreign partner, and is open to selling further stake in life insurance and mutual fund units, according to media reports.
No details were provided on the potential deal size for Reliance General Insurance stake sale. Reliance Capital has already sold 26% stake in its mutual funds and life insurance units to Japanese financial services major Nippon Life… Read more
CCI approves Religare’s 49% stake sale to Invesco
Competition Commission of India (CCI) on 15th November said it has approved Religare group’s 49% stake sale in its mutual fund business to US-based Invesco, according to media reports.
Invesco—global investment management firm—had signed a definitive agreement to acquire a 49% interest in Religare Asset Management Company (RAMC) Ltd and Religare Trustee Company Pvt Ltd in September. Invesco currently has a presence in India (Mumbai) through its affiliate WL Ross & Co. It also operates an enterprise center in Hyderabad opened in 2006… Read more
Reliance Life targets double-digit growth in FY13
Private sector insurer Reliance Life said that it expects to achieve double-digit growth in its business by the current fiscal, according to media reports.
Reliance Life, part of Reliance Capital, is targeting a total premium income of Rs. 61 billion in 2012-13. The company expects new business premium of Rs. 23 billion in FY12-13 from Rs. 18.09 billion in the last fiscal. The company estimates its renewal premium to grow to Rs. 38 billion for FY12-13 from Rs. 36.88 billion in 2011-12, the reports added… Read more
SEBI opens office in Bhubaneswar
Capital market regulator SEBI (Securities and Exchange Board of India) has set up a local office at Bhubaneswar.
The local office will take care of investor protection, investor education and all other functions delegated, within the state of Odisha, SEBI said in a notification on Monday.
The local office will be under the administrative control of SEBI’s Eastern Regional Office at Kolkata.
SEBI to auction Rs. 106 bn debt investment for FIIs
Securities and Exchange Board of India (SEBI) will conduct an auction in both the government and corporate debt securities worth over Rs. 106.16 billion by foreign investors.
Each category has individual limits on investment by foreign institutional investors (FIIs) and SEBI conducts monthly auctions for the available limits within these caps. In October 2012 auction, the FII investment in Indian debt market was Rs. 78.52 billion.
Claiming benefits under EPF & EPS
PF provides various benefits such as pension, loan facility, withdrawal, nomination, etc. However, some of us won’t be aware of the different forms which we need to fill while availing these benefits… Read more
Reliance Money, World Gold Council launch My Gold Plan
Reliance Money Precious Metals Pvt Ltd (RMPM), a Reliance Capital company, and World Gold Council, the market development organisation for the gold industry, today announced the launch of Reliance My Gold Plan.
This gold accumulation plan was launched by Vikrant Gugnani, CEO, Broking and Distribution Business, Reliance Capital and Stephen Richardson, Director-Investment, World Gold Council.
Reliance My Gold Plan offers customers the unique opportunity to start accumulating physical gold using a daily average pricing methodology. A minimum subscription of Rs.1000 per month translates to accumulation of gold for as low as Rs. 50 per day… Read more
Reliance MF launches portfolio SIP
Reliance Mutual fund has launched portfolio systematic investment plan (PSIP). It is an investment facility for retail investors to invest in various schemes launched by RMF at regular interval.
Investors can start investing in multiple schemes with a minimum of Rs. 6,000 through PSIP. The frequency of this systematic investment facility can be monthly or quarterly. Investors have to fill in one form and have to define percentage allocation to each scheme selected by him. The investors are saved from the trouble of writing multiple cheques for various schemes… Read more
IISL launches new indices
In continuation of its efforts to develop indices that meet the requirements of market participants, IISL announces launch of the following indices: CNX Low Volatility Index, CNX High Beta Index & CNX Alpha Index… Read more
SEBI introduces roll-over facility
Capital market regulator SEBI (Securities and Exchange Board of India), on Thursday, introduced a roll-over facility.
Any lender or borrower who wishes to extend an existing lent or borrow position shall be permitted to roll-over such positions i.e. a lender who is due to receive securities in the pay out of an SLB (Securities Lending and Borrowing) session, may extend the period of lending. Similarly, a borrower who has to return borrowed securities in the pay-in of an SLB session, may, through the same SLB session, extend the period of borrowing. The roll-over shall be conducted as part of the SLB session, SEBI said in a circular… Read more
Do not lend for any gold purchases...RBI tells banks
The Reserve Bank of India directed banks not to give loans for purchase of gold in any form, including primary gold, bullion and jewellery, to dissuade people from indulging in speculative activity.
In terms of extant guidelines issued vide circular DBOD.No.Leg.BC.74/C.124(P)-78 dated June 1, 1978, no advances should be granted by banks against gold bullion to dealers/traders in gold if, in their assessment, such advances are likely to be utilised for purposes of financing gold purchase at auctions and/or speculative holding of stocks and bullion, RBI said in notification… Read more
BNP Paribas MF announces change in key personnel
BNP Paribas Mutual Fund has announced that Hemanti Wadhwa, Head-Compliance, Legal & Secretarial has resigned from the services of the BNP Paribas Asset Management Company Limited and accordingly she ceases to be the key personnel of the AMC from 16 November 2012.
Further, Saroj Pandey, VP-Compliance & Legal has been designated as Compliance Officer & Company Secretary from 17 November 2012. She is aged 29 years and holds B.Com., A.C.S, LLB as her educational qualification.
ICICI Pru Fixed Maturity Plan Series 64-180 Days Plan E announces dividend
ICICI prudential Mutual Fund has announced 27 November 2012 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option of ICICI Prudential Fixed Maturity Plan Series 64-180 Days Plan E. The quantum of dividend will be entire distributable surplus as on the record date.
Religare MF announces dividend under Fixed Maturity Plan-Series X-Plan E (371 Days)
Religare Mutual Fund has announced 27 November 2012 as the record date for declaration of dividend under the dividend option of Religare Fixed Maturity Plan-Series X-Plan E (371 Days). The amount of dividend per unit on the face value of Rs 10 per unit will be entire distributable surplus as on the record date… Read more
ICICI Pru MF announces dividend under two schemes
ICICI Prudential Mutual Fund has announced 26 November 2012 as the record date for declaration of dividend under the dividend options of the following schemes… Read more
HDFC FMP 370D November 2011 (2) announces dividend
HDFC Mutual Fund has announced 26 November 2012 as the record date for declaration of dividend under normal dividend option and quarterly dividend option of HDFC FMP 370D November 2011 (2) a fixed maturity plan under HDFC Fixed Maturity Plans-Series XIX, a closed ended income scheme. The amount of dividend per unit will be distributable surplus as reduced by applicable statutory levy on the face value of Rs 10 per unit.
SBI Debt Fund Series-90 Days-69 announces dividend
SBI Mutual Fund has announced 26 November 2012 as the record date for declaration of dividend under the dividend option of SBI Debt Fund Series-90 Days-69. The quantum of dividend per unit will be entire distributable surplus as on record on the face value of Rs 10 per unit. The scheme would mature on 26 November 2012 and accordingly, units shall be suspended from trading on the BSE.