Mutual Fund Newsletter - 17 May to 23 May, 2013

Investors are often told to diversify their portfolio across various asset classes like gold, equity, bonds, among others. Though most people are familiar with these financial products, we will just recap the same for those with no financial background.

May 23, 2013 5:19 IST | India Infoline News Service
Top Stories

AMCs park Rs. 4.73 trillion in debt schemes in FY13

Asset management companies (AMCs) made net investment of Rs. 4.73 trillion during 2012-13 in the debt market against Rs. 502.35bn in 2000-01, according to the data compiled by SEBI (Securities and Exchange Board of India).

MFs had invested Rs. 3.35 trillion in debt-oriented schemes in FY11-12, the data indicated. Read more...

HDFC MF offloads 2.05% stake in Punj Lloyd

HDFC Mutual Fund has offloaded 2.05% stake in Punj Lloyd 6.78% for about Rs. 344.3mn in the last couple of years through open market sales.

HDFC Mutual Fund said that four of its funds -- HDFC Top 200 Fund, HDFC TaxSaver, HDFC Infrastructure Fund and HDFC MF Monthly Income Plan-- sold 68,01,895 shares in Punj Lloyd between March 19 and May 17, amounting to 2.05% of its stake, the AMC said in a filing to the BSE. Read more...

Special Stories

SEBI tightens algo trading norms

Market regulator SEBI (Securities and Exchange Board of India) tightened algorithmic trading norms by making it mandatory for stock brokers and trading members to audit their systems every six months.

System audit of algorithmic trading system should be undertaken by a system auditor who possess any of the following certifications: CISA (Certified Information System Auditors) from ISACA; DISA (Post Qualification Certification in Information Systems Audit) from Institute of Chartered Accountants of India. Read more...

SEBI to formulate new norms for foreign brokers

Domestic News

CRISIL rates India Inc’s 1st inflation-indexed debentures

CRISIL has assigned its ‘CRISIL AAA/Stable’ rating to Larsen & Toubro Ltd’s (L&T’s) Rs.1-bn inflation-linked capital-indexed non-convertible debenture issue, the first of its kind in the country.

These debentures are unique as they offer inflation-adjusted returns to investors, based on movements in the wholesale price index (WPI) over the tenure of the instruments. While the real interest rate will be fixed, the instruments provide for annual indexation of the principal, leading to variable interest payout. At the end of the tenure, the redemption value will be the principal adjusted for the prevailing WPI, subject to a prescribed floor and cap. Read more...

SBI MF, NISM tie-up for MF distributor certification

SBI Mutual Fund has tied up with National Institute of Securities Markets (NISM) for conducting mutual fund distributors’ (MFD) certification examinations at select learning centers (SLCs).

Through this alliance, SBI aims to achieve the objective of increased acceptance of mutual fund schemes amongst bank’s customers. Read more...

NPS subscribers earn double-digit returns in FY13

New Pension System (NPS) has delivered double-digit return in most of the schemes for the financial year 2012-13, PFRDA (Pension Fund Regulatory and Development Authority) said on Wednesday.

The average annual return that NPS scheme generated for Central Government employees was 12.39% during 2012-13. In the case of NPS scheme for State Government, the average return stood at 13%, pension regulator said. Read more...

Depositories to issue account statements: SEBI

Market regulator SEBI (Securities and Exchange Board of India) on Monday amended the norms governing the depositories and depository participants to allow issue of single consolidated account statements to the demat account holders for all their demat assets.

The depositories have also been asked to conduct inspection of the records of the issuers of the securities or their agents to ensure that the records of demat securities are reconciled with all the securities issued by them, SEBI said. Read more...

SEBI bars Basil Int'l from raising funds from public

Securities and Exchange Board of India (SEBI) barred Kolkata-based Basil International as well as its promoters and directors from raising money from the public.

In its order, SEBI has also directed that Basil International should not dispose of any of its assets without the regulator's permission. Also, the company has been asked not to divert any funds raised from public at large kept in its custody.

The order is against directors including Satya Narayan Karmakar, Sourindra Nath Mukherjee, Biplab Talukdar and Manindra Kumar Basu. Read more...


Should you invest in inflation-indexed bonds?

Investors are often told to diversify their portfolio across various asset classes like gold, equity, bonds, among others. Though most people are familiar with these financial products, we will just recap the same for those with no financial background.

Stocks offer an ownership stake in the company, while bonds are similar to loans made to a company. On maturity of the bond, the investor is refunded the original principal. The interest component is paid annually, unless otherwise specified. Read more...

International News

Vanguard launches EM govt bond index fund

Vanguard has announced the introduction of Vanguard Emerging Markets Government Bond Index Fund, the company’s first international fixed income offering available to US investors.

The fund—launched on 14th May—is now accepting investments during a subscription period that will extend through the end of business on May 30, 2013.  During this period, the fund will invest in money market instruments as it accumulates sufficient assets to construct a representative, diversified portfolio. Read more...

"A? o " " ?N ? f";mso-bidi-font-weight: bold'>Reports stated that Bachchan was allotted 62,794 shares at a price of Rs. 10 in January 2011.
The company is coming out with an IPO which will be open for public subscription between May 20-22. Read more…

Aditi Technologies acquires Get Cloud Ready

Aditi Technologies announced the acquisition of ‘Get Cloud Ready’, a Cloud Operations consulting firm. This is Aditi’s second major cloud consulting acquisition since Cumulux in 2011. The acquisition is aimed at bolstering Aditi’s offerings for migrating and managing complex, cross-platform deployments on cloud. Read more...

International News

Dell Q1 revenue at $14.1bn

Dell announced fiscal 2014 first quarter results, with revenue of $14.1bn, as the company grew revenue from Enterprise Solutions, Services and Software 12 percent year over year to $5.5bn, or 8 percent growth, excluding the acquisition of Quest Software. Pricing adjustments that affected gross margins and continued acquisition-related costs in the quarter resulted in GAAP earnings of $0.07 per share and non-GAAP earnings of $0.21 per share. Read more...

Yahoo to acquire popular blogging platform Tumblr for $1.1bn

Google India announces affordable apps

Google India announced new affordable pricing for Google Apps for Business, with the aim of making it easier for small businesses in India to reap the benefits of working in the cloud. New and existing customers based in India will now pay INR 150 per user per month if they’re on the flexible plan, and INR 1500 per user per year on the annual plan — a 45% reduction on the previous price. Read more...

IT ops, mgmt software mkt grew 4.8% in 2012: Gartner

Worldwide IT operations management (ITOM) software revenue totaled $18bn in 2012, up 4.8% from $17bn in 2011, according to final results from Gartner, Inc. However, Gartner said that the "Big Four" ITOM vendors — IBM, CA Technologies, BMC Software and HP — surrendered market share in 2012, while a new generation of ITOM vendors grew significantly faster than the market. Read more...

Accenture to acquire Acquity Group

Accenture and Acquity Group Ltd have entered into a definitive agreement under which Accenture will acquire Acquity Group, a leading digital marketing and eCommerce company.  The acquisition will further strengthen and expand the broad range of digital marketing services that Accenture provides to clients.
Accenture has agreed to pay $13.00 per outstanding American Depositary Share, each of which represents two ordinary shares ($6.50 per ordinary share), or a total of approximately $316mn, in cash for Acquity Group. Read more...

IKF Tech Q4 net revenue up 109%

VASCO acquires Cronto

VASCO Data Security International, Inc., (www.vasco.com), a leading software security company specializing in authentication products and services, announced its acquisition of Cronto, of Cambridge (UK), a provider of secure visual transaction authentication solutions for online banking (www.cronto.com). VASCO acquired all of the stock of Cronto in exchange for an initial cash consideration of Euro 15mn and contingent cash consideration in the form of an earn-out of up to a maximum of Euro 2mn (combined, approximately $21.9mn using the exchange rate of 1.29). Read more...


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