No prior approval for preference shares, warrants
Companies issuing preference shares and warrants to foreign investors will soon not require prior approval from the Foreign Investment Promotion Board (FIPB), according to a media report. The relaxation is expected to encourage merger & acquisition activity and enhance foreign investments in the country. The relaxation will be available to all sectors in which foreign direct investment is allowed on the automatic route, the report added. The proposal has been endorsed by the Reserve Bank of India, SEBI (Securities and Exchange Board of India) and the finance ministry, the report further said... Read more
MF Utility portal likely to be launched by end of FY13: AMFI
The Association of Mutual Fund in India (AMFI) is expected to launch 'MF Utility' portal as a single platform for all mutual fund transactions by the end of this fiscal, according to a media report. The mutual fund industry body is planning to run the trial for 'MF Utility' in January 2014, the report added. The MF Utility portal will help investors to invest across MF schemes through creation of a single account. It will also benefit distributors as they can upload their MF transactions, the report further said. MF Utility is a centralised mutual fund distribution platform, which will facilitate transactions by customers, distributors and financial advisors in schemes offered by fund houses on a unified platform.
Over 50% of retail clients from Tier-I, Tier-II cities: NSE
Over 50% of the total number of retail clients trading on the National Stock Exchange's cash market platform for fiscal 2012-13 come from the cities other than the Tier I and II categories, according to the NSE data. In addition, 43.7% of the total turnover of trades carried out by retail investors in the cash segment during FY13 came from cities other than the Tier I and II categories, NSE data added. Tier 1 includes major metro cities like Bangalore, Chennai, Delhi, Hyderabad, Mumbai and Kolkata, whereas Tier 2 cities include Ahmedabad, Jaipur, Kanpur, Lucknow, Nagpur, Pune and Surat. NSE's turnover for FY13 stood at Rs. 27 trillion, one of country's premiere bourse said.
SEBI study suggests simpler registration rules for FIIs
The Securities and Exchange Board of India (SEBI) on Wednesday released the Development Research Group (DRG) Study titled, “Foreign Investment in Indian Government Bond Market”. The study is co-authored by Ila Patnaik, Sarat Malik, Radhika Pandey and Prateek. A country witnesses currency exposure when locals hold a large amount of unhedged foreign currency denominated debt. However, India's capital controls continue to be guided by concerns about debt and its maturity, rather than its currency denomination, the study said. Though there is foreign appetite for rupee denominated debt, India has placed many restrictions on foreign investment in rupee denominated bonds... Read more
Reliance Life launches electronic insurance policies
Reliance Life Insurance Company (RLIC), part of Reliance Capital Ltd, announced the launch of life insurance policies in electronic demat form across all its products. The announcement was made by Anup Rau, Chief Executive Officer, RLIC, in Mumbai. This initiative follows the recent inauguration of Insurance Regulatory and Development Authority's Insurance Repository System (IRS) by Finance Minister P Chidambaram in Hyderabad last week to enable and encourage policy holders to hold their insurance policies in demat form... Read more
Infrastructure trust fund will be finalised in 2 months
The Government is working on new Infrastructure Trust Fund (ITF) and structure will be finalized in next two months which is in the nature of Real Estate Investment Trusts (REIT), said Dr Arvind Mayaram, Secretary, Department of Economic Affairs, Ministry of Finance at an ASSOCHAM event held on 20 September in New Delhi. While addressing the ASSOCHAM 3rd International Summit on Infrastructure Finance Dr. Mayaram said that under the new structure of Infrastructure Trust Fund, the underlying revenue of project will be transferred to a trust and the trust will issue units to investors, including private and foreign investors. The new structure is mainly popular in countries like Singapore, Hongkong and USA... Read more
IICA, BSE sign MoU to develop India’s first CSR Index
BSE Ltd and Indian Institution of Corporate Affairs (IICA) on Monday have signed an MoU to work collaboratively to develop a Corporate Social Responsibility (CSR) Index, take up capacity building on CSR, conduct education and awareness programmes and other activities to facilitate a more effective corporate participation in CSR areas. “Transparency is very important and so the companies must disclose their spending and areas of spend on their own websites and the MCA website as well,” Sachin Pilot said... Read more
Saxo Bank collaborates with SMC Global Securities
SMC Global Securities Ltd, a well diversified financial services company in India, and Saxo Bank A/S, the multi-asset online investment bank, announced the launch of Saxo Bank’s online trading platform for its clients in India. The trading platforms of Saxo Bank A/S provide direct access to Equities, ETFs and Bonds spanning 33 stock exchanges across the USA, Europe, Asia, South America and Australia... Read more
How to transfer shares from demat account
Most of us know what is dematerialisation of securities, advantages of holding shares in demat form and how to manage your investment in demat mode. The below write-up will elaborate more on how to transfer shares from demat account to another demat account. The article also provides details on how to transfer securities from the demat account of a deceased holder to the account of a surviving joint holder(s), nominee or legal heir... Read more
Baroda Pioneer AMC appoints Sanjay Chawla as CIO
Baroda Pioneer Asset Management Company Limited has announced the appointment of Sanjay Chawla as its Chief Investment Officer effective 25th September 2013. The appointment of Sanjay is a significant step towards strengthening the fund management team of Baroda Pioneer AMC. Sanjay brings with him over 23 years of experience in the financial services sector with over 18 years of experience in equity research. He has most recently served as a Senior Fund Manager with Birla Sun Life AMC... Read more
Barclays plans to shut wealth management services: reports
Barclays Plc is planning to shut wealth management services in about 130 countries by 2016, a media report said. The company will cut jobs as part of its effort to restructure its costs, the report further said. "This is part of our new strategy, focusing on reducing complexity," a Barclays spokesman reported. In April, Barclays announced its plans to restructure its wealth business.
60% of defined contribution assets are intermediated: Cerulli
New research from Cerulli Associates, a Boston-based global analytics firm, finds two-thirds of private defined contribution (DC) assets are invested in plans that have an ongoing advisor/consultant relationship, and that dedicated defined contribution investment-only (DCIO) wholesalers are a key to success.
"The stickiness of DC assets is often cited as the primary reason why asset managers find the DC market attractive," Kevin Chisholm, associate director at Cerulli reveals. "Plan participants very rarely change their asset allocation, and asset managers are likely able to retain DC assets and benefit from ongoing contributions."... Read more