New this week
SEBI revises norms for exchange traded interest rate futures
The Securities and Exchange Board of India (SEBI) has put in place a mechanism to monitor investments by foreign institutional investors (FIIs) in exchange-traded interest rate futures (IRFs) to ensure they do not exceed regulatory limits.
In December 2013, the market regulator prescribed the framework for Stock Exchanges to launch cash settled Interest Rate Futures on 10-year G-sec. “The gross open positions of the FII across all contracts shall not exceed 10% of the total open interest or INR 600 crores, whichever is higher,” the SEBI circular had said... Read more
Depositories to set up IT strategy panels: SEBI
Market regulator SEBI (Securities and Exchange Board of India) on Tuesday asked depositories to formulate information technology strategy panels in order to strengthen the IT governance framework of their systems.
In December 2012, SEBI had constituted the Depository System Review Committee (DSRC) to undertake a comprehensive review of the Indian depository system.
Depositories have the mandate to help companies convert their physical shares into dematerialised form and thereafter maintain those shares, and also supervise proper conversion and reconciliation of their total share capital by the companies... Read more
NSE launches ‘NSE Bond Futures II’ on 10-year GOI bonds
The National Stock Exchange (NSE), India’s premier bourse launched the NSE Bond Futures II (NBF II) on 10-year Government of India bonds. The NSE Bond Futures II were launched by the Chief Guest, SEBI Chairman, Mr UK Sinha, in the presence of the RBI Governor Dr. Raghuram Rajan.
So far a simple product like this was not available to hedge risk from volatile interest rate movements, and investors and institutions will be able to use this effectively to mitigate risk from any asset class that is affected by interest rate movement.
On the first day of trade, the NBF II volumes were Rs. 3081.49 crs with open interest of 16057 contracts... Read more
Karvy Computershare launches smartphone app for MF investors
Karvy Computershare launched first of its kind smartphone app for mutual fund investors called KTrack. Karvy Computershare’s new smartphone application KTrack provides quick and simple access to investment information to investors.
KTrack is free and available on Android, iOS and Blackberry platforms, providing investors with instant investment updates on their mobile devices. With smartphones and tablets on the rise, and the future looking to shift from desktop to mobile and tablet platforms, accessing investment information through mobile devices would hold the key to the future... Read more
Franklin Templeton announces tax-free dividend in India Taxshield
Franklin Templeton Investments (India) has announced a tax-free dividend of Rs.3.00 per unit (Face Value of Rs. 10), in its open end equity linked savings scheme-Franklin India Taxshield (FIT).
All investors registered in the Dividend Option as on January 24, 2014 will receive this tax-free dividend. Pursuant to payment of dividend, the NAV of the scheme would fall to the extent of payout and statutory levy (as applicable).Investment of up to Rs. 1 Lakh in FIT during the financial year would be eligible for tax benefits under Section 80 C of the Income Tax Act, 1961... Read more
L&T MF launches tablet application for IFAs
L&T Mutual Fund, a subsidiary of L&T Finance Holdings Ltd launched India’s first comprehensive tablet application for Independent Financial Advisers (IFA). Aptly named L&T Mutual Fund iAdvise, this application leverages state-of-the-art technology to deliver value-add features that could help IFAs in their day-to-day business in a seamless and convenient manner.
The app is available on both Apple and Android platforms and has several business-friendly features that are categorised into 5 sections for ease of use and navigation... Read more
Birla Sun Life MF launches Focused Equity Fund – Series 1
Birla Sun Life Asset Management Company Limited, a part of Aditya Birla Financial Services Group (ABFSG), and investment manager for Birla Sun Life Mutual Fund (BSLMF), announced the launch of the Birla Sun Life Focused Equity Fund – Series 1, a close-ended Equity Scheme investing in Eligible Securities as per Rajiv Gandhi Equity Savings Scheme, 2012. The fund will invest in the equity securities specified as ‘eligible securities’ under the RGESS guidelines which include equity shares of (a) companies falling in list of BSE 100 and CNX 100 and (b) PSUs which are categorized as Navratna, Maharatna or Miniratna by the Central Government... Read more
What is a promissory note?
All of us know what does the term 'loan or debt' mean. A loan is a debt evidenced by an agreement which specifies, among other things, the principal amount, interest rate and date of repayment.
In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The below write-up provides details about a promissory note... Read more