Mutual Fund Newsletter June 16 to 20, 2014

India Infoline News Service | Mumbai |

SEBI said that the minimum subscription for public issue of debt securities will be specified as 75% of the base issue size for both NBFCs and Non NBFC issuers.

New this week

Listed state firms to have 25% public holding in 3 yrs: SEBI
The Securities and Exchange Board of India, in its board meeting, discussed steps that may provide a boost to the markets and ensure safe and easier investment procedures for investors. Sebi announced several changes in the initial public offering (IPO) guidelines, offer for sale (OFS) and Know Your Client (KYC) norms. SEBI said that all listed state-run companies should have at least 25% public shareholding in three years, according to a news channel. SEBI chairman UK Sinha also said the minimum shareholding in PSUs should be uniform. Sebi has eased Offer for Sale norms. Retail investors will get 10% reservation while non-promoters are allowed to sell stake. Seller may offer discount to retail investors via OFS. All market rules should be neutral for promoters, SEBI added... Read more

SEBI notifies disclosures norms for listed debt securities
SEBI in a circular notified bourses, merchant bankers, CRAs and all issuers norms for base issue size, minimum subscription, retention of over-subscription limit and further disclosures in the prospectus for public issue of debt securities. SEBI said that the minimum subscription for public issue of debt securities will be specified as 75% of the base issue size for both NBFCs and Non NBFC issuers. Further, if the issuer does not receive minimum subscription of its base issue size (75%), then the entire application monies shall be refunded within 12 days from the date of the closure of the issue. In the event, there is a delay, by the issuer in making the aforesaid refund, then the issuer shall refund the subscription amount along with interest at the rate of 15% per annum for the delayed period... Read more

UCBs allowed to provide online trading: RBI
The Reserve Bank of India has decided to allow only urban co-operative banks, with prior approval of RBI, to provide online trading facility to their demat account holders by entering into a tie-up with a broking entity subject to certain conditions. However, considering the high risk involved in such services, it has been decided to allow only Scheduled Primary (Urban) Co-operative Banks, with prior approval of the Reserve Bank, to provide online trading facility to their demat account holders by entering into a tie-up with a broking entity, the RBI said in a notification on Tuesday. Other conditions set by RBI for the UCBs to apply to the RBI are that the UCBs must also be registered with SEBI as Depository Participants, have implemented Core Banking Solutions (CBS) fully and should be offering internet banking services to their customers... Read more

RBI accords SRO status to MFIN
The Reserve Bank has recognised Micro Finance Institutions Network (MFIN), the industry association for the micro-finance industry, as a self regulatory organisation for NBFC-MFIs. "MFIN,...has been formally recognised by the Reserve Bank of India (RBI) as the SRO (self regulatory organisation) for NBFC-MFIs. This makes MFIN the first RBI recognised SRO in the country," the industry association said in a release on Wednesday.

DPs to share KYC details of foreign investors with banks: SEBI
The Securities and Exchange Board of India (Sebi) on Monday asked designated depository participants (DDPs) to share KYC documents relating to foreign portfolio investors (FPIs) with the banks concerned based on written authorisation from the FPIs. SEBI directed DDPs to transfer a set of hard copies of the relevant KYC documents furnished by the FPIs to the concerned bank through their authorised representative. DDPs have been directed to certify that the documents have been duly verified with the original or notarised documents obtained, where applicable... Read more

SEBI issues consultation paper on crowdfunding
The Securities and Exchange Board of India, on Tuesday, proposed new norms for crowdfunding or collection funds through web-based platforms and social networking sites. The objective is to help start-up companies raise capital and also check misuse of such avenues. Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause... Read more

US money market funds at $2.55 trillion in latest week
Total US money market fund assets decreased by $31.27 billion to $2.55 trillion for the week ended Wednesday, June 18, the Investment Company Institute reported on Thursday. Among taxable money market funds, Treasury funds (including agency and repo) decreased by $13.34 billion and prime funds decreased by $17.58 billion. Tax-exempt money market funds decreased by $340 million. Assets of retail money market funds decreased by $1.31 billion to $897.89 billion. Among retail funds, Treasury money market fund assets decreased by $570 million to $198.94 billion, prime money market fund assets decreased by $460 million to $512.74 billion, and tax-exempt fund assets decreased by $280 million to $186.21 billion.Assets of institutional money market funds decreased by $29.95 billion to $1.65 trillion. Among institutional funds, Treasury money market fund assets decreased by $12.78 billion to $699.16 billion, prime money market fund assets decreased by $17.12 billion to $883.05 billion, and tax-exempt fund assets decreased by $60 million to $71.15 billion.
 

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