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Monday, August 27, 2012

National Saving Certificates (NSC) may continue to give you tax benefits even after the Direct Taxes Code (DTC)

Investments in five-year National Saving Certificates (NSC) may continue to give you tax benefits even after the Direct Taxes Code (DTC) comes into effect. The Government aims to introduce the DTC system, which will replace the decades-old Income-Tax Act 1961, from April 1, 2013. 

A highly placed source said, “There is feeling that tax benefits on this scheme should not be disturbed. The reason is very simple. Salaried people have great faith in this scheme and investment inflows benefit the Government.” Investments in NSCs can be made through post offices. 

At present, there are two tenures for NSC investments — five years and 10 years. The former is considered a popular savings scheme, especially with salaried persons, for tax benefits and safe returns. 

According to the existing arrangement, investments up to Rs 1 lakh in a financial year in the five-year scheme get tax benefits under Section 80 (C) of the Act. 

The Income-Tax Act, 1961 provides tax benefit on investments in NSC, life insurance policies, equity-linked saving schemes, public provident fund, employees’ provident fund and principal and interest repayment for housing loans, among others. However, the DTC Bill, introduced in Parliament in 2010, proposes to prune this list. 

The proposed tax system talks about giving tax benefits mainly on provident funds, new pension schemes and other approved funds, life insurance, health insurance, education fee for children, interest payment for housing loan and money spent on the treatment of a disabled family member. There is no mention of NSCs or five-year post office term deposits. 

The Standing Committee on Finance has given its report on the Bill, but even its report does not mention NSCs or post office term deposits. Now, the status of NSCs can only be maintained by bringing an amendment in the Bill. The official amendments will first have to be approved by the Cabinet and then brought before Parliament for consideration and passage. 

Parliament is expected to take up the Bill with official amendments for discussion during the Winter Session. 


Haryana govt. to launch weather based crop insurance

In view to neutralize farmers’ risk, the Haryana government has launched Weather Based Crop Insurance Scheme (WBCIS) as a pilot project in 18 blocks of 17 districts during the year 2012-13. The scheme will cover Kharif as well as Rabi crops like wheat, paddy, bajra and cotton.

The Weather Based Crop Insurance Scheme has been launched for paddy crop during Kharif 2012-13 in blocks of Ambala-II, Gohana, Bilaspur, Palwal, Babain, Beri, Barwala, Tohana and Jakhal, Sirsa, Madlouda, Narnaund and Ballabgarh and for cotton crop, the scheme had been launched in Bawanikhera block of district Bhiwani. Whereas; for bajra crop, the scheme has been implemented in blocks of Mahendergarh, Bawal, Taoru and Farukhnagar.

To get the benefits of insurance cover, the farmers will have to pay Rs 300, Rs 297.50 and Rs 600 per acre for paddy, bajra and cotton crops respectively as premium under the scheme and the rest of the amount of the premium that is Rs 450, Rs 276.25 and Rs 300 for paddy, bajra and cotton crops respectively would be shared equally by the state and the central government.

The scheme was being implemented by Agriculture Insurance Company of India Limited and other private companies approved by Government of India. A amount of Rs 13.18 crore were paid to 19,157 affected farmers, with an average of Rs 6882 per farmer during Rabi 2009-10 to Kharif 2011-12.

Reliance Life to hire over 5,000 salaried agents from small cities, rural areas

New entrant life insurer, Reliance Life Insurance is all set to hire over 5,000 salary based insurance agents from small cities and rural areas by the end of the fiscal year 2012-13.

Mr. Malay Ghosh, President & Executive Director, Reliance Life Insurance said, “We are aiming to hire over 5,000 insurance agents from small towns and rural areas and give them jobs as their career option with a sense of security. The recruitment drive is targeted at Tier II and III cities.”

Further he said, "We believe that the fixed salary-cum-variable income will be a game-changer in the domestic insurance sector.”

Recently, the insurer has announced to hire insurance agents to give them job securities and to minimize high attrition rate in the industry. In India, insurance agents work on commission basis and have uncertain income level. The insurer has already pointed out some potential small cities and rural areas across the country to hire agents on its pay-roll.

In its first step of hiring, the company will hire career agents for only 200 branches out of over 1,200 across the country.

According to Mr. Ghosh, the company has already hired over 500 career agents and in next phase will hire over 5,000 more career agents.

During the six months of training period, the insurance agents will be getting a fixed stipend, and the company will also assist them to pass licensing examination, which will help them to take their jobs with great commitment.

In its next phase, the company will take salary-based advisor system to the next level with bigger numbers and rapid growth.

When asked, whether this new distribution format will hit the exiting advisor workforce working on commission basis, Ghosh pointed out that the two distribution channels are positioned differently in terms of composition and execution.

"Rather both will complement each other and improve customer service."

With the passage of time, Reliance Life Insurance plans to take the salary-based advisor system to the next level with bigger numbers and proliferation.

ICICI Prudential Mutual Fund announces dividend under two schemes

Record date for dividend is 31 August 2012 

ICICI Prudential Mutual Fund has announced 31 Augst 2012 as the record date for declaration of dividend under the dividend options of ICICI Prudential Fixed Maturity Plan Series 59-1 Year Plan C and ICICI Prudential Interval Fund II-Quarterly Interval Plan C. 

The recommended rate of dividend (Re. per unit) on the face value of Rs 10 per unit will be: 

ICICI Prudential Fixed Maturity Plan Series 59-1 Year Plan C: Rs 0.05 per unit 

ICICI Prudential Interval Fund II -Quarterly Interval Plan C:
Retail Dividend Option: Rs 0.1976 per unit
Institutional Dividend Option: Rs 0.2035 per unit 

In view of ICICI Prudential Fixed Maturity Plan Series 59-1 Year Plan C maturing on 31 August 2012, the fund shall suspend the trading of units on the BSE with effect from the close of trading hours on 29 August 2012. The record date for determining the eligible unit holders/beneficial owners who would be entitled for the redemption proceeds shall be 31 August 2012.

DSP BlackRock MF announces dividend under DSP BlackRock FMP-Series 7-12M

Record date for dividend is 30 August 2012 

DSP BlackRock Mutual Fund has announced 30 August 2012 as the record date for declaration of dividend under the dividend payout option of DSP BlackRock FMP-Series 7-12M, a close ended income scheme. The quantum of dividend will be upto 100% of distributable surplus as on the record date on the face vbalue of Rs 10 per unit. The scheme maturity date is also 30 August 2012.

Birla Sun Life MF introduces PDC facility in recurring savings plan offered by two schemes

Birla Sun Life Mutual Fund has proposed to introduce PDC facility in Recurring Savings Plan offered under Birla Sun Life Monthly Income Plan and Birla Sun Life Medium Term Plan. All other terms and conditions of the Recurring Savings Plan facility will remain unchanged.

DSP BlackRock MF Launches 12 Months Fixed Maturity Plan

NFO Period from 28 August to 30 August 2012 

DSP BlackRock Mutual Fund has launched a new fixed maturity plan named as DSP BlackRock FMP – Series 66– 12M, a close-ended income scheme with the duration of 12 months. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 28 August and will close on 30 August 2012. The scheme will mature on 9 September 2013. 

The primary investment objective of the scheme is to seek to generate returns and capital appreciation by investing in a portfolio of debt and money market securities. The scheme will invest only in such securities which mature on or before the date of maturity of the scheme. 

The scheme offers a choice of two options, growth option and dividend payout option. 

The scheme would allocate upto 100% of assets in debt securities and money market securities with low to medium risk profile. 

95% to 100% of assets would be invested in A1+ rated certificate of deposits. 

The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter. 

Entry and exit load charge will be nil for the scheme. Units of the scheme are proposed to be listed on Bombay Stock Exchange. 

Benchmark Index for the scheme is Crisil Short Term Bond Fund Index. 

The scheme will be managed by Dhawal Dalal.

UTI MF Launches UTI - Fixed Term Income Fund – Series XII – VIII (1098 Days)

NFO Period from 27 August to 4 September 2012 

UTI Mutual Fund has launched a new fund named as UTI - Fixed Term Income Fund – Series XII – VIII (1098 Days), a close ended income scheme. The duration of the scheme is 1098 days from the date of allotment and will mature on 7 September 2015. The New Fund Offer (NFO) price for the schemes is Rs 10 per unit. The new issue will be open for subscription from 27 August and will close on 4 September 2012. 

The investment objective of the scheme is to generate returns by investing in a portfolio of fixed income securities maturing on or before the date of maturity of the scheme. 

The scheme offers two options viz. growth and dividend option. Dividend option offers payout and reinvestment facility. 

The scheme will allocate upto 100% of assets in debt including securitized debt with low to medium risk profile, upto 100% of assets would be allocated to money market instruments with low risk profile. The scheme may invest upto 50% of its debt portion in securitized debt. 

The minimum application amount is Rs 10000 under dividend option and Rs 5000 under growth option & in multiples of Rs 10. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil for the scheme. 

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index. 

Manish Joshi and Amandeep Chopra are the fund managers for the scheme.

Reliance MF Floats Reliance Fixed Horizon Fund – XXII – Series 25

NFO Period from 31 August to 5 September 2012 

Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund – XXII – Series 25, a close ended income scheme with the duration of 368 days from the date of allotment. During the New Fund Offer (NFO) the scheme will offer units at Rs 10 per unit. The new issue will be open for subscription from 31 August and will close on 5 September 2012. 

The primary investment objective of the scheme is to generate returns and growth of capital by investing in a diversified portfolio of Central, State Government securities and other fixed income/ debt securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility. 

The scheme offers two options viz. growth and dividend payout option. 

Reliance Fixed Horizon Fund – XXII – Series 25 will allocate 40% to 100% of assets in Money Market Instruments with low risk profile. On the other side it would allocate upto 60% of assets in Government Securities & debt instruments with low to medium risk profile.
40% to 45% of net assets would be invested in AAA/A1+ rated non convertible debentures / bonds and 55% to 60% of net assets would be invested in AA rated non convertible debentures / bonds. 

The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil for the scheme. 

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index. 

The fund manager of the scheme will be Amit Tripathi.

Sunday, August 26, 2012

ICICI Prudential MF Declares Dividend under Two Schemes

Record date for dividend is 27 August 2012 

ICICI Prudential Mutual Fund has announced 27 August 2012 as the record date for declaration of dividend under the dividend option of the following schemes. The quantum of dividend per unit on the face value of Rs 10 per unit will be: 

ICICI Prudential Fixed Maturity Plan Series 57 – 1 Years Plan D: The quantum of dividend will be Rs 0.05 per unit. The scheme recorded NAV of Rs 10.9174 per unit as on 17 August 2012. 

ICICI Prudential Monthly Income Plan – Half Yearly Dividend Option: The quantum of dividend will be Rs 0.4266 per unit. The scheme recorded NAV of Rs 12.7342 per unit as on 17 August 2012. 

In view of ICICI Prudential Fixed Maturity Plan Series 57 – 1 Years Plan D maturing on 27 August 2012, the fund shall suspend the trading of units on the NSE with effect from the close of trading hours on 22 August 2012. The record date for determining the eligible unitholders/beneficial owners who would be entitled for redemption proceeds shall be 27 August 2012.

IDFC Mutual Fund announces dividend under IDFC Asset Allocation Fund of Fund

Record date for dividend is 29 August 2012 

IDFC Mutual Fund has announced dividend under dividend option of IDFC Asset Allocation Fund of Fund. The quantum of dividend on the face value of the Rs 10 will be: 

IDFC Asset Allocation Fund of Fund-Aggressive Plan: Rs 0.06 per unit subject to availability of distributable surplus 

IDFC Asset Allocation Fund of Fund-Moderate Plan: Rs 0.04 per unit subject to availability of distributable surplus 

IDFC Asset Allocation Fund of Fund-Conservative Plan: Rs 0.02 per unit subject to availability of distributable surplus

Franklin Templeton MF announces change in fund manager of Franklin India Flexi Cap Fund

With effect from 27 August 2012 

Franklin Templeton Mutual Fund has announced change in fund manager of Franklin India Flexi Cap Fund with effect from 27 August 2012. Accordingly the new fund managers will be Mr. K.N. Sivasubramanian, Mr. Anand Vasudevan and Ms. Roshi Jain.

Reliance CAM announces appointment of Mr. Yutaka Ideguchi as an Associate Director on the Board

With effect from 17 August 2012 

Reliance Mutual Fund has appointed Mr. Yutaka Ideguchi as an Associate Director on the Board of Reliance Capital Asset Management Limited (RCAM) with effect from the 17 August 2012. 

The Reliance Capital Asset Management Limited (“RCAM”)/Reliance Mutual Fund (“RMF”) has decided to modify the Statement of Additional Information (“SAI”) of RMF in order to include the details of Mr. Yutaka Ideguchi, the same are as follows: 

Name: Mr. Yutaka Ideguchi 

Age: 49 Years 

Qualification: MBA from The Wharton School, University of Pennsylvania, Philadelphia, USA, Bachelor of Law from Hokkaido University, Sapporo, Japan and certified as a Chartered member of the Security Analysts Association of Japan. 

Brief Experience: Mr. Yutuka Ideguchi is presently acting as General Manager, International Planning & Operations Department of Nippon Life Insurance Company, Japan. He joined Nippon in 1986. Since then he has worked at various levels in Corporate Planning Department, Risk Management Department and International Planning & Operations Department of the said Company. 

Further, Mr. Manu Chadha – Associate Director of RCAM has resigned from his position, as such, with effect from 17 August 2012.

HDFC MF announces change in exit load under HDFC Short term Opportunities Fund

With effect from 29 August 2012 

HDFC Mutual Fund has decided to revise exit load of HDFC Short term Opportunities Fund with effect from 29 August 2012. Accordingly, the revised exit load will be 0.50% in respect of each purchase/switch-in of units if units are redeemed/switched-out within 3 months from the date of allotment. No exit load is payable if units are redeemed/switched-out after 3 months from the date of allotment.

Religare MF Launches Religare Fixed Maturity Plan – Series XV – Plan E

NFO Period from 24 August to 27 August 2012 

Religare Mutual Fund has launched a new fund named as Religare Fixed Maturity Plan – Series XV – Plan E (367 Days), a close ended debt scheme. The tenure of the scheme is 367 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 24 August and closes on 27 August 2012. 

The investment objective of the scheme is generate income by investing in a portfolio of debt and money market instruments maturing on or before the date of maturity of the scheme. The scheme offers growth & dividend payout option. 

The scheme would allocate upto 100% of assets in debt instruments including money market instruments with low risk profile. The scheme will not invest in securitized debt and un-rated debt instruments. The maximum gross derivative position will be restricted to 50% of the net assets of the scheme. 

70% to 75% of net assets would be invested in AAA / equivalent rated certificate of deposits and 25% to 30% of net assets would be invested in AAA / equivalent rated commercial papers and upto 5% in AAA / equivalent rated CBLO, G-Sec, T-Bills. Securities with rating A and AA shall include A+ and A- & AA+ and AA- respectively. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge for the scheme will be nil. The scheme will be listed on the NSE. 

Benchmark Index for the scheme will be CRISIL Short Term Bond Fund Index. 

Nitish Sikand will be the Fund Manager for the scheme.

ICICI Prudential MF announces dividend under ICICI Prudential Interval Fund II-Quarterly Interval Plan C

Record date for dividend is 30 August 2012 

ICICI Prudential Mutual Fund has announced 30 August 2012 as the record date for declaration of dividend under the dividend option of ICICI Prudential Interval Fund II-Quarterly Interval Plan C. The recommended rate of dividend on the face value of Rs 10 per unit will be Rs 0.1976 per unit under retail option and Rs 0.2035 per unit under institutional plan.

Tata Mutual Fund announces dividend under Tata Equity P/E Fund

Record date for dividend is 30 August 2012 

Tata Mutual Fund has announced 30 August 2012 as the record date for declaration of dividend under the dividend trigger option B-10% of Tata Equity P/E Fund. The recommended rate of dividend on the face value of Rs 10 per unit will be Rs 1 per unit. 

Tata Mutual Fund has announced the merger of Tata Life Sciences & Technology Fund and Tata Service Industries Fund into Tata Equity Opportunities Fund. The record date for merger is 14 September 2012. Unit holders who are not in agreement with the merger may redeem their units at applicable NAV or switch to other schemes of Tata Mutual Fund without payment of exit load till 14 September 2012.

Tata Mutual Fund announces dividend under Tata Fixed Income Portfolio Fund-Scheme B2

Record date for dividend is 30 August 2012 

Tata Mutual Fund has announced 30 August 2012 as the record date for declaration of dividend under the quarterly dividend option of Tata Fixed Income Portfolio Fund-Scheme B2. The recommended rate of dividend on the face value of Rs 10 per unit will be entire returns generated between 31 May 2012 to 30 August 2012 under each regular investment plan and institutional plan.

IDFC Mutual Fund announces dividend under two schemes

Record date for dividend is 30 August 2012 

IDFC Mutual Fund has announced 30 August 2012 as the record date for declaration of dividend under the dividend option of the following schemes. The quantum of dividend on the face value of Rs 10 per unit will be: 

IDFC Arbitrage Fund Plan A & Plan B: Rs 0.05 per unit
IDFC Arbitrage Plus Fund Plan A & Plan B: Rs 0.04 per unit

Govt hikes FDI limit in Insurance from 26% to 49%

The government has decided to stick with its earlier decision of increasing foreign direct investment (FDI) in the insurance sector to 49% from the current 26%. 

Finance Minister P Chidambaram on 21 August 2012 reviewed the proposals in the Insurance Laws (Amendment) Bill, 2008 and decided that the FDI cap of 49%, as proposed, should be retained. 

The government has decided to stick with its earlier decision of increasing foreign direct investment (FDI) in the insurance sector to 49% from the current 26%. This is despite the Standing Committee on Finance rejecting the government's proposal to raise the FDI limit in insurance companies to 49%. 

The Standing Committee had rejected the government's proposal to raise FDI limit to 49% in December 2011. It had said that the policy stance of enabling a greater role for foreign capital in the insurance sector would not necessarily have the desired impact.

Wednesday, August 22, 2012

SBI Debt Fund Series – 366 Days - 13 Floats On

NFO Period from 22 August to 28 August 2012 

SBI Mutual Fund has unveiled a new fund named as SBI Debt Fund Series – 366 Days - 13, a close ended debt scheme with the duration of 366 days. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 22 August and close on 28 August 2012. 

The investment objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments maturing on or before the maturity of the scheme. 

The scheme offers two options viz. growth and dividend option. 

The scheme will invest 60% to 100% of assets in debt & money market securities and upto 40% of assets in government securities. Exposure to domestic securitized debt may be to the extent of 40% of the net assets. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

Entry and exit load charge will be nil for the scheme. The units of the scheme will be listed on BSE in order to provide liquidity. 

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index. 

The scheme will be managed by Rajeev Radhakrishnan.

Reliance MF To Revise Benchmark Index Under Reliance Long Term Equity Fund

With effect from 21 August 2012 

Reliance Mutual Fund has decided to revise the benchmark index of the scheme from BSE 200 Index to BSE Mid Cap Index under Reliance Long Term Equity Fund, with effect from 21 August 2012.

Principal MF Announces Change In Fund Managers Responsibilities

With effect from 21 August 2012 

Principal Mutual Fund has announced change in fund manager's responsibilities for certain schemes with effect from 21 August 2012. 

Accordingly, Principal Debt Savings Fund – Monthly Income Plan and Principal Debt Savings Fund – Retail Plan will be managed by Pankaj Jain, Principal Balanced Fund will be managed by P.V.K. Mohal and Principal Smart Equity Fund will be managed by Anupam Tiwari.

ICICI Prudential MF Extends NFO Closure Date of ICICI Prudential Fixed Maturity Plan – Series 64 – 367 Days Plan J

Extended till 27 August 2012 

ICICI Prudential Mutual Fund has announced the extension of New Fund Offer (NFO) Period of ICICI Prudential Fixed Maturity Plan – Series 64 – 367 Days Plan J, a close ended debt scheme. The NFO period of the scheme has been extended till 27 August 2012. 

Accordingly, Transfer cheques and Real Gross Settlement (RTGS) requests will be accepted till the end of business hours upto 27 August 2012. MICR cheques will be accepted till the end of business hours upto 23 August 2012. Switch-in requests from equity schemes and other schemes will be accepted upto 23 August 2012, till the cut-off time applicable for switches.

ICICI Prudential MF Declares Dividend Under Two Schemes

Record date for dividend is 23 August 2012 

ICICI Prudential Mutual Fund has announced 23 August 2012 as the record date for declaration of dividend under the dividend option of the following schemes. The quantum of dividend per unit on the face value of Rs 10 per unit will be: 

ICICI Prudential Gilt Fund – Treasury Plan – Quarterly Dividend Option: Rs 0.1508 per unit. NAV: Rs 12.1324 per unit. 

ICICI Prudential Interval Fund – Quarterly Interval Plan I: Rs 0.2168 per unit for retail dividend option, Rs 0.2232 per unit for institutional dividend option and Rs 0.2161 per unit for retail quarterly dividend payout option.

DSP BlackRock MF Declares Dividend for DSP BlackRock FMP – Series 50 – 3M

Record date for dividend is 23 August 2012 

DSP BlackRock Mutual Fund has announced 23 August 2012 as the record date for declaration of dividend in the dividend payout option of DSP BlackRock FMP - Series 50 – 3M, a close ended income scheme. 

The quantum of dividend will be up to 100% of distributable surplus as on record date on the face value of Rs 10 per unit. The scheme will mature on 23 August 2012. 

The scheme recorded NAV of Rs 10.2210 per unit as on 16 August 2012.

ICICI Prudential Mutual Fund Launches Three Year Fixed Maturity Plan

NFO Period from 22 August to 30 August 2012 

ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Fixed Maturity Plan – Series 64 - 3 Years Plan I, a close ended debt scheme. The tenure of the scheme is 1098 days. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 22 August and will close on 30 August 2012. 

The investment objective of the scheme is to seek to generate income by investing in a portfolio of fixed income securities/debt instruments maturing on or before the maturity of the scheme. 

Presently, two options are available under the scheme viz. cumulative and dividend option. Dividend Payout is the only facility available under dividend option. Cumulative option shall be default option under the scheme. 

The scheme will allocate 50% to 100% of assets in debt instrument including securitized debt with low to medium risk profile. On the other side it would allocate upto 50% of assets in money market instruments with low to medium risk profile. 

50% to 55% of net assets would be invested in AAA rated non convertible debentures and 45% to 50% in AA rated non convertible debentures. 

Entry load and exit load charge are not applicable for the scheme. The scheme is proposed to be listed on BSE. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter.
The fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period. 

The scheme's performance will be benchmarked against Crisil Short Term Bond Fund Index. 

The scheme will be managed by Mr. Chaitanya Pande.

ICICI Prudential MF Declares Dividend Under Three Schemes

Record date for dividend is 24 August 2012 

ICICI Prudential Mutual Fund has announced 24 August 2012 as the record date for declaration of dividend under the dividend option of the following schemes. The quantum of dividend per unit on the face value of Rs 10 per unit will be: 

ICICI Prudential Fixed Maturity Plan Series 59 – 1 Years Plan B - Dividend Option: Entire distributable surplus as on record date. NAV: Rs 10.9229 per unit. 

ICICI Prudential Income Opportunities Fund : Rs 0.1890 per unit for retail dividend option and Rs 0.1958 per unit for institutional quarterly dividend option. 

ICICI Prudential Interval Fund – Quarterly Interval Plan I: Rs 0.2168 per unit for retail dividend option, Rs 0.2232 for institutional dividend option and Rs 0.2161 per unit for retail quarterly dividend payout option.

Birla Sun Life MF Declares Dividend Under Two Schemes

Record date for dividend is 24 August 2012 

Birla Sun Life Mutual Fund has announced 24 August 2012 as the record date for declaration of dividend under the dividend option of the following schemes. The quantum of dividend per unit on the face value of Rs 10 per unit will be: 

Birla Sun Life Equity Fund: Rs 3 per unit. NAV: Rs 60.91 per unit. 

Birla Sun Life Pure Value Fund: Rs 1 per unit. NAV: Rs 14.98 per unit. 

NAVs for the above schemes are as on 16 August 2012.

SBI Debt Fund Series - 90 Days - 69 Floats On

NFO period is from 24 to 27 August 2012

SBI Mutual Fund has unveiled a new fund named as SBI Debt Fund Series - 90 Days - 69, a close ended debt scheme with the duration of 90 days. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 24 August and closes subscription on 27 August 2012. 

The investment objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments maturing on or before the maturity of the scheme. 

The scheme offers two options viz. growth and dividend option. 

The scheme will invest 60% to 100% of assets in debt & money market securities and upto 40% of assets in government securities. Exposure to domestic securitized debt may be to the extent of 40% of the net assets. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

Entry and exit load charge will be nil for the scheme. The units of the scheme will be listed on BSE in order to provide liquidity. 

Benchmark Index for the scheme is CRISIL Liquid Fund Index. 

The scheme will be managed by Rajeev Radhakrishnan.

Thursday, August 16, 2012

Baroda Pioneer MF To Revise Load Structure of Baroda Pioneer Public Sector Undertaking (PSU) Bond Fund

With effect from 16 August 2012 

Baroda Pioneer Mutual Fund has decided to revise the exit load structure of Baroda Pioneer Public Sector Undertaking (PSU) Bond Fund, with effect from 16 August 2012. 

Accordingly, the exit load charge will be 0.50% of applicable NAV, if units are redeemed on or before 6 months from the date of allotment.

UTI MF Launches UTI - Fixed Term Income Fund – Series XII – VII (366 Days)

NFO Period from 16 August to 22 August 2012 

UTI Mutual Fund has launched a new fund named as UTI - Fixed Term Income Fund – Series XII – VII (366 Days), a close ended income scheme. The duration of the scheme is 366 days from the date of allotment and will mature on 23 August 2013. The New Fund Offer (NFO) price for the schemes is Rs 10 per unit. The new issue will be open for subscription from 16 August and will close on 22 August 2012. 

The investment objective of the scheme is to generate returns by investing in a portfolio of fixed income securities maturing on or before the date of maturity of the scheme. 

The scheme offers two options viz. growth and dividend option. Dividend option offers payout and reinvestment facility. 

The scheme will allocate upto 100% of assets in debt including securitized debt with low to medium risk profile, upto 100% of assets would be allocated to money market instruments with low risk profile. The scheme may invest upto 50% of its debt portion in securitized debt. 

The minimum application amount is Rs 10000 under dividend option and Rs 5000 under growth option & in multiples of Rs 10. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil for the scheme. 

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index. 

Manish Joshi and Amandeep Chopra are the fund managers for the scheme.

IDFC Fixed Maturity Plan Series - 2 Floats on

NFO Period from 16 August to 22 August 2012 

IDFC Mutual Fund has launched a new fund named IDFC Fixed Maturity Plan Series - 2, a close ended income scheme. The scheme with the duration of 24 months shall mature on 25 August 2014. The new issue will be open for subscription from 16 August and will close on 22 August 2012. 

IDFC Fixed Maturity Plan Series - 2 seeks to generate income by investing in a portfolio of debt and money market instruments maturing on or before the maturity of the scheme.
The scheme offers two options viz. growth and dividend option. Dividend option offers monthly, quarterly and half yearly dividend options. 

The scheme will allocate upto 50% of assets in money market instruments (including CBLO) with low to medium risk profile. On the other side it would allocate 50% to 100% of assets in debt securities with medium to high risk profile. Investments in securitized debt, derivatives, foreign securities and stock lending would be nil. 

100% of assets would be invested in AA rated non convertible debentures. 

Minimum application amount is Rs 10000 and in multiples of Rs 10. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry load and exit load charge will be nil for the scheme. 

Benchmark Index for the scheme is Crisil Short Term Bond Fund Index. 

The scheme will be managed by Anupam Joshi.

Kotak MF Declares Dividend For Quarterly Interval Plan – Series 7

Record date for dividend is 21 August 2012 

Kotak Mutual Fund has announced 21 August 2012 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option of Kotak Quarterly Interval Plan Series 7. 

The quantum of dividend will be entire appreciation in Net Asset Value of dividend option until 21 August 2012. The scheme recorded NAV of Rs 10.2181 per unit as on 13 August 2012. 

The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk.

LIC Nomura MF Interval Fund – Quarterly Plan – Series 2 Announces Dividend

Record date for dividend is 21 August 2012 

LIC Nomura Mutual Fund has announced 21 August 2012 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option of LIC Nomura MF Interval Fund-Quarterly Plan-Series 2. 

The quantum of dividend will be entire distributable surplus as on the record date. The scheme recorded NAV of Rs 10.2185 per unit as on 9 August 2012.

UTI MF Declares Dividend For Fixed Income Interval Fund

Record date for dividend is 21 August 2012 

UTI Mutual Fund has announced 21 August 2012 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option of UTI Fixed Income Interval Fund – Monthly Interval Plan II. 

The quantum of dividend will be 100% of distributable surplus as on record date. The NAV under retail and institutional option of the scheme stood Rs 10.1272 per unit as on 13 August 2012. 

The investment objective of the scheme is to generate regular income by investing in debt / money market instruments and government securities having suitable maturity.

Birla Sun Life MF Declares Dividend Under Birla Sun Life Interval Income Fund – Quarterly Plan – Series I

Record date for dividend is 22 August 2012 

Birla Sun Life Mutual Fund has announced 22 August 2012 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option of Birla Sun Life Interval Income Fund – Quarterly Plan – Series I 

The quantum of dividend will be entire distributable surplus as available on the record date. The scheme recorded NAV of Rs 10.2187 per unit for retail and institutional plan as on 13 August 2012.

Birla Sun Life MF Launches Capital Protection Oriented Fund

NFO Period from 14 August to 28 August 2012  

Birla Sun Life Mutual Fund has launched a new fund named as Birla Sun Life Capital Protection Oriented Fund – Series 12, a close ended capital protection oriented scheme with the duration of 1094 days from the date of allotment of units. This scheme has been rated CARE AAAmfs (SO) by CARE. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue which is open for subscription from 14 August will close on 28 August 2012.  

The investment objective of the scheme is to seek to provide capital appreciation linked to equity market with downside protection at the end of tenure. 

• Fund expects to achieve down side protection by investing in debt securities maturing on or before the duration of the scheme, subject to the credit risk. 

• Fund expects to achieve the market-linked appreciation (upside) by investing in premium of exchange traded options. 

• The Fund proposes to restrict its derivative exposure only to the extent of buying of call options. Hence the maximum loss could be equivalent to the premium paid, not any more. Moreover, the premium paid will be equal or lower to the coupon receivable from fixed income securities after providing for fund expenses. 

Only growth option will be offered under the scheme. 

The scheme would allocate 80% to 100% of assets in debt securities and money market instruments with low to medium risk profile. It would further invest up to 20% of assets in Options Premium with high risk profile, but limited to the premium paid. 

Upto 5% of net assets would be invested in A1+/P1+ rated certificate of deposits, upto 5% in A1+/P1+ rated commercial papers, 75% to 80% in non convertible debentures and upto 5% in A1+/P1+ rated any Government Securities/ Treasury Bills/ CBLO / Reverse Repos (on Government Securities/Treasury Bills). 

Minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

The fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge for the scheme will be nil. No redemption/repurchase of units shall be allowed prior to the maturity of the scheme Investors wishing to exit may do so through stock exchange mode. 

Benchmark Index for the scheme will be CRISIL MIP Blended Index. 

Prasad Dhonde and Ajay Garg would be the designated Fund Managers of the Scheme.

Birla Sun Life MF Declares Dividend Under Birla Sun Life Fixed Term Plan – Series DK

Record date for dividend is 21 August 2012 

Birla Sun Life Mutual Fund has announced 21 August 2012 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option of Birla Sun Life Fixed Term Plan – Series DK. 

The quantum of dividend will be Rs 0.9302 per unit as on the record date. The scheme recorded NAV of Rs 10.9303 per unit as on 13 August 2012.

Sebi mulls new rules to protect investors, deepen markets

Market regulator Sebi will consider tomorrow new rules to protect the investors' interest and to expand the country's investment culture with greater and more cost-effective access to products like IPOs and mutual funds.

At its board meeting scheduled here tomorrow, the Sebi ( Securities and Exchange Board of India) is likely to consider some wide-ranging reforms in its regulations for mutual funds and initial public offers (IPOs), sources said.

The proposals expected to be discussed at the meeting include provision for a 'safety net' guarantee for IPO investors, as also some tax incentives for the new investors.

Besides, the regulator is also likely to consider the introduction of e-IPO, which would allow investors to bid for IPO shares electronically and without any physical paperwork.

In addition to being a cost-effective way, the e-IPO is likely to make it easier for investors across the country to tap the IPO market. Besides, the regulator is also likely to consider ways to encourage investors and distributors in the mutual fund space. Sebi chairman U K Sinha had met Finance Minister P Chidambaram yesterday.

Tomorrow's meeting also holds significance for being the first board meeting of the capital market regulator after an announcement by the new Finance Minister P Chidambaram that various decisions could be made soon to attract more investors to mutual funds and other investment products.

In his first press conference after assuming charge, Chidambaram said last Monday that a number of decisions would be taken soon to encourage more people to invest in mutual funds, insurance polices and other instruments.

A major tax incentive proposal relates to stock investments as well, as Sebi would consider finalising the fine-print of Rajiv Gandhi Equity Scheme, which was announced in this year's Union Budget and aims to provide tax benefits to first time investors in the stock market.
At the upcoming board meet, Sebi is also likely to discuss a new definition for 'small or retail investors' as there is some ambiguity in current regulations.

For IPOs, the investors putting in up to Rs two lakh are considered retail investors. However, listed companies distinguish small and large individual shareholders as those holding shares worth up to Rs one lakh and those holding shares worth more than Rs one lakh, respectively.

For mutual funds, the regulator will consider giving the fund houses flexibility in using their expense ratio. At present, the fund houses are required to divide their expense ratio (an amount deducted from investors' funds) as per a fixed formula between the fund management fees and other expenses. 

Source: ET

Little recourse for investors

Whether stocks or debt instruments, retail investors don't have much in their favour when a firm defaults  

With the Securities and Exchange Board of India expected to consider the implementation of a ‘safety net’ for Initial Public Offerings in its next board meeting, retail investors can look forward to some safety in stock market investments for at least the short term of six months. 

However, there are a number of other instruments where retail investors do not have much redressal if things go wrong. For example, in the past couple of months, defaults and restructuring of short-term debt has risen. The commercial paper of Glodyne Technoserve was recently downgraded due to the company’s weakening financial and liquidity profile. In July, Deccan Chronicle defaulted on short-term non-convertible debentures of Rs 200 crore. 

As a result, CARE Ratings slashed its debt rating from A1+ to D. These defaults and downgrades have raised concerns over companies’ liquidity in the current economic environment.

While the defaults discussed above are only on certain instruments, there could be cases where companies go belly-up. And, if you are one of these, what can you do?

Mumbai-based lawyer Ajay Sethi says there is hardly anything individual investors can do, as secured creditors get preference over others when the time comes to pay back. Typically, if secured creditors, such as banks, feel the company does not have money to pay up, they take it into liquidation for their dues. The company's assets such as land and other immovable properties are auctioned to raise funds. Any creditor can opt for this but there is a preference order in which each one will be paid. And, the process is frustratingly slow and takes years before it gets solved.

Here's what you can do if you hold of the instruments listed below.

Equity shareholders: If a company goes bankrupt, government creditors such as the income tax department get first preference. Then come secured creditors such as banks and debenture holders, followed by unsecured ones like term deposit holders, preferential shareholders and equity shareholders, explains Anil Harish of Mumbai-based law firm, DM Harish & Company.

Some believe that equity investors should not even expect any returns in case a company goes bust. They are the last of the lot to receive their money, as they take the ownership risk, being stakeholders. As a result, each time a company goes bust, thousands are left unpaid.

Preferential shareholders: Unlike the name, these are debt instruments and carry a fixed coupon rate. These may be convertible, to normal equity shares on a fixed date or unconvertible ones. If the company is taken into liquidation, preference shareholders will be considered to be paid before equity shareholder, but only in case of non-convertible ones, say lawyers.

Term deposit holders: These are unsecured credits you have paid to the company. Says Amit Agarwal, partner at SN Gupta & Co, “Such investors can file a recovery suit. But, this is only if the company is cash-rich and is not paying the investors.” Again, the process will take its own time to conclude. Many times, the company may not bother with the recovery suit.
However, if the company is cash-strapped, then any of the investors/ creditors can initiate the winding-up process. Firms such as wine maker Indage, says Harish, paid up at this initiation. Otherwise, the court may hear your process and if it gives a decree in your favour, you can use it to auction the firm’s assets. Remember, you will be paid on a pro rata basis, as and when the assets are sold and only in line with the preference order.

Debenture holders: These can be secured or unsecured. Recently, issues of Shriram Transport Finance and Muthoot Finance were secured issues. Many of the secured debt instruments are marked to a trust that pools money for security reasons. Therefore, a secured debenture holder has the right to enforce security against the issuer. That is, they have the right to be paid without taking the company into liquidation. The unsecured debentures are called equity-linked instruments. These may be fully convertible debentures that are not redeemable but converted into equity shares such as preferential shares. Partially convertible ones have some debt component and are not fully convertible. But, the holders of these debentures will get the same treatment as equity, says Agarwal.

Source: Business Standard

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