Govt general insurers to set up in-house TPAs in six months

Within the next six months, government-owned insurance companies would have an in-house third-party administrator (TPA) system, said G Srinivasan, chairman and managing director of United India Insurance on the sidelines of the Global Insurance Summit organised by Assocham. While the four general insurers will have equal stake in the TPA, Life Insurance Corporation and General Insurance Corporation might hold a less stake.
“This is a proposal that has been designed to meet the needs of the public general insurance players,” Srinivasan said. Last week, A K Saxena, chairman and managing director of Oriental Insurance, had said that the government insurers would slowly move into having their in-house TPAs. The common TPA has been proposed to minimise fraud claims in the health insurance segment.

It is also expected to speed up the claim-settlement process and reduce the claims ratio of insurance companies, which pay a commission of six per cent of premiums to TPAs to settle claims. Srinivasan said the preferred provider network would add more cities to cover hospitals that have agreed to public sector general insurance companies’ package rates. Under this network, cashless medical facilities are provided to such insurance holders.

New India Assurance hopes to clock 18-20% rise in premium this fiscal

Public sector general insurer New India Assurance is likely to post 18-20 per cent gross premium growth in the current financial year, after reaching Rs 10,000 crore mark last fiscal, a top company official said today.

"We will maintain our leadership position. We hope to see 18-20 per cent growth in premium in the current financial year, in line with the industry growth projections," company’s Chairman and Managing Director (officiating) A R Sekar told reporters here. "We have not seen losses from foreign operations...it should be a profitable growth," Sekar said.

The largest general insurer had reported a loss of Rs 412 crore for the first time since its inception in 2010-11 on account of around Rs 300 crore losses from foreign operations. However, the company swiftly swung back the very next fiscal (2011-12) with Rs 179.4 crore profit. On growth in various segments, Sekar said, "Both corporate and retail segments are witnessing sound growth rates. But, growth in retail is higher than other segments".

Any general insurance player who would like to see rise in profit has to concentrate on retail segment, he said. About hike in premium in health, fire and motor insurance, Sekar said any rise is consumer-specific, which depends on the risk attached. "I can’t give a number across the board. It depends on the individual policy and risk attached to it," Sekar said. 

New India reached a gross premium collection of Rs 10,074 crore in FY2011-12. While Rs 8,543 crore was from domestic operations, Rs 1,531 crore came from overseas operations. It had posted a profit of Rs 179.4 crore during the last fiscal.

Source : PTI

HDFC Mutual Fund Launches HDFC FMP 370D October 2012 (1)

NFO Period from 8 October to 17 October 2012 

HDFC Mutual Fund has launched a new plan named as HDFC FMP 370D October 2012 (1), a plan under HDFC Fixed Maturity Plans – Series 22 (a close-ended income scheme). The face value of the new issue will be Rs 10 per unit. The new issue will be open for subscription from 8 October and will close on 17 October 2012. 

The investment objective of the plan is to generate regular income through investments in debt / money market instruments and government securities maturing on or before the maturity date of the plan. 

The plan shall offer two options - growth and dividend option. 

The plan would invest 60% to 100% of assets in debt & money market instruments with low to medium risk profile. The plan may invest upto 40% of net assets in government securities with low risk profile. 

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 plan during the NFO period. 

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

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

The fund manager of the scheme will be Anil Bamboli.

Invesco to acquire 49% of Religare Asset Management

Religare Enterprises Limited (REL) a diversified Indian Financial services group and Invesco Ltd., an independent global investment management firm, announced that Invesco has entered into a definitive agreement to acquire a 49% interest in Religare Asset Management Company (RAMC) Limited. RAMC, the asset management arm of Religare Enterprises Limited (REL), is among the top fifteen asset management companies in India, with combined (onshore and offshore advisory) assets under management of over $2.6 billion (as of 31 August 2012) and a presence in 53 cities across India. Invesco currently has a presence in India (Mumbai) through its affiliate WL Ross & Co. It also operates an enterprise center in Hyderabad, first opened in 2006, employing more than 600 staff across a range of global support functions including information technology, investment operations, finance, compliance and human resources. 

“This addition will enhance Invesco's presence in an important and growing market, while providing Religare's clients access to our broad range of investment solutions,” said Martin L. Flanagan, President and CEO of Invesco Ltd. “Our agreement with Religare will expand the comprehensive range of investment capabilities Invesco provides to our retail and institutional clients around the world, and further position both firms for long-term success.”
RAMC which began operations in end 2008 has recorded almost a four-fold increase in its combined assets under management in the last 4 years. It has also established its Portfolio Management Services (PMS) and Offshore advisory platforms in the last 2 years and achieved financial profitability in its third full year of operations (year ending March 2012).
“We are very pleased to bring a global asset manager of Invesco's repute to India as a partner in our asset management business. This investment is indeed a validation of Religare's belief in the long term growth potential of the Indian financial services industry. 

Religare's asset management business has consistently focused on developing its investment capabilities through a well-defined, proprietary investment process both in equity and fixed income. With a good 3-year performance track record and solid revenue growth, we believe that both our retail and offshore businesses would be propelled to the next level of their growth journey,” said Shachindra Nath, Group CEO, Religare Enterprises Limited. 

The joint venture, Religare Invesco Asset Management Company, will be headed by Saurabh Nanavati (CEO- RAMC) along with the existing management team. 

The transaction is subject to regulatory approvals. J.P. Morgan acted as the exclusive financial advisor to Religare Enterprises Limited on this transaction.

ICICI Prudential Mutual Fund announces change in exit load under various schemes

With effect from 1 October 2012 

ICICI Prudential Mutual Fund has announced change in the exit load structure under all the options of ICICI Prudential Equity and Derivative Fund-Volatility Advantage Plan, ICICI Prudential Discovery Fund, ICICI Prudential Top 100 Fund and ICICI Prudential Dynamic Plan, with effect from 1 October 2012. Accordingly, the revised exit load structure will be: 

3% of the applicable Net Asset Value-if the amount sought to be redeemed or switched out is invested for a period of upto 6 months from the date of allotment. 

2% of the applicable Net Asset Value-if the amount sought to be redeemed or switched out is invested for a period from 6 months up to 18 months from the date of allotment and
Nil-if the amount sought to be redeemed or switched out is invested for a period of more than 18 months from the date of allotment.

ICICI Prudential Mutual Fund announces changes under various schemes

ICICI Prudential Mutual Fund has announced that henceforth the below mentioned schemes/plans will be managed by the following fund managers in addition to the other schemes/plans managed by them: 

ICICI Prudential Blended Plan A:
Equity: Kayzad Eghlim
Debt: Manish Banthia 

ICICI Prudential Child Care Plan (Study):
Equity: Rajat Chandak
Debt: Avnish Jain 

ICICI Prudential Child Care Plan (Gift):
Equity: Chintan Haria
Debt: Avnish Jain 

ICICI Prudential MIP 25:
Equity: Venkatesh Sanjeevi
Debt: Avnish Jain 

ICICI Prudential Monthly Income Plan:
Equity: Rajat Chandak
Debt: Avnish Jain 

ICICI Prudential MIP 5:
Equity: Rajat Chandak
Debt: Avnish Jain 

ICICI Prudential Money Market Fund: Manish Banthia 

ICICI Prudential Liquid Plan: Rahul Goswami and Manish Banthia 

ICICI Prudential Flexible Income Plan: Rahul Goswami and Manish Banthia 

ICICI Prudential Floating Rate Plan: Rahul Goswami and Manish Banthia 

ICICI Prudential Blended Plan-Plan B:
Equity: Kayzad Eghlim
Debt: Manish Banthia 

ICICI Prudential Banking & PSU Debt Fund: Rahul Goswami 

ICICI Prudential Ultra Short Term Plan: Manish Banthia 

ICICI Prudential Medium Term Plan: Rahul Goswami 

ICICI Prudential Long Term Plan: Manish Banthia 

ICICI Prudential Regular Savings Fund: Avnish Jain 

ICICI Prudential Corporate Bond Fund: Avnish Jain 

ICICI Prudential Gilt Fund Treasury Plan: Rahul Goswami 

ICICI Prudential Gilt Fund Investment Plan: Rahul Goswami 

ICICI Prudential Gilt Fund Treasury Plan PF Option: Rahul Goswami 

ICICI Prudential Gilt Fund Investment Plan PF Option: Rahul Goswami 

ICICI Prudential Gold Exchange Traded Fund: Manish Banthia 

ICICI Prudential Regular Gold Savings Fund: Manish Banthia 

ICICI Prudential Fixed Maturity Plans:
I. Having maturity up to 2 years- Manish Banthia
II. For maturity more than 2 years-Avnish Jain 

ICICI Prudential Interval Funds: Manish Banthia 

ICICI Prudential Multiple Yield Funds (All series):
Equity: Rajat Chandak
Debt: Rahul Goswami 

ICICI Prudential Capital Protection Oriented Funds (All Series):
Equity: Rajat Chandak
Debt: Rahul Goswami 

Mr Sankaran Naren-Chief Investment Officer-Equity, in addition to his existing responsibilities would also be responsible for debt investments. Accordingly, Mr Sankaran Naren has been re-designated as Chief Investment Officer-Equity and Fixed Income. 

Mr Rahul Goswami has been appointed as Chief Investment Officer-Fixed Income effective from 17 September 2012. Mr Rahul Goswami holds the degree of B.Sc (Mathematics), MBA (Finance). He has an overall 17 years of experience in debt markets including 7 years in fund management.

IDBI Mutual Fund announces dividend under two schemes

Record date for dividend is 3 October 2012 

IDBI Mutual Fund has announced 3 October 2012 as the record date for declaration of dividend in the respective quarterly dividend sub option of the following schemes. The amount of dividend per unit on the face value of Rs 10 per unit will be: 

IDBI Monthly Income Plan: Rs 0.18 per unit 

IDBI Dynamic Bond Fund: Rs 0.25 per unit

Reliance Interval Fund - Quarterly Interval Fund Series I announces dividend

Record date for dividend is 3 October 2012 

Reliance Mutual Fund has announced 3 October 2012 as the record date for declaration of dividend under the dividend option of Reliance Interval Fund - Quarterly Interval Fund Series I. The amount of dividend per unit on the face value of Rs 10 per unit will be Rs 0.2070 per unit under retail plan and Rs 0.2116 per unit under institutional plan.

UTI MNC Fund announces dividend

Record date for dividend is 3 October 2012 

UTI Mutual Fund has announced 3 October 2012 as the record date for declaration of dividend under the dividend option of UTI MNC Fund. The quantum of dividend on the face value of Rs 10 per unit will be Rs 2.20 per unit (or 22%).

Core infrastructure sector posts 2.1% growth in August 2012

Provisional growth figures for July and June 2012 revised downwards to 1.0% and 3.8% from 1.8% and 3.9% reported earlier 

The output of the eight core infrastructure sector increased 2.1% in August 2012, while the provisional growth figure for July 2012 was revised sharply downwards to 1.0% from 1.8% growth reported earlier. The growth figure for June 2012 was also scaled down to 3.8% from 3.9% growth reported earlier. 

The core sector growth for August 2012 was supported with strong growth in coal and refinery output recording 11.0% and 8.4% growth, respectively. The production of crude oil, natural gas and fertilizers continued to record decline at 0.6%, 13.5% and 2.1%, respectively. 

Meanwhile, the cement output declined 2.4% after recording consistent growth for last 14 months. However, the growth of the electricity generations moderated to two years low of 1.7% in August 2012. 

The eight core infrastructure sector output rose 2.8% in April-August 2012, showing moderation in growth from 5.5% growth recorded in April-August 2011.

ICICI Prudential Mutual Fund announces dividend under various schemes

Record date for dividend is 28 September 2012 

ICICI Prudential Mutual Fund has announced 28 September 2012 as the record date for dividend declaration under the dividend options of the following schemes. The recommended rate of dividend per unit on the face value of Rs 10 per unit will be: 

ICICI Prudential Interval Fund IV-Quarterly Interval Plan B:
Retail dividend option: Rs 0.2005 per unit
Institutional dividend option: Rs 0.2075 per unit 

ICICI Prudential Balanced Fund: Rs 1.75 per unit 

ICICI Prudential Equity and Derivative Fund-Volatility Advantage Plan-Retail Dividend option: Rs 1.40 per unit

Kotak Mahindra Balance Unit Scheme announces dividend

Record date for dividend is 27 September 2012 

Kotak Mahindra Mutual Fund has announced 27 September 2012 as the record date for declaration of dividend under the dividend option of Kotak Mahindra Balance Unit Scheme, an open ended balanced scheme. The quantum of dividend on the face value of Rs 10 per unit will be Re 0.50 per unit.

IRDA chairman advocates raising FDI cap in insurance; says it will enhance growth

Insurance Regulatory Development Authority (IRDA) Chairman J. Hari Narayan today advocated the need to raise the FDI cap in the Insurance sector. Addressing an Assocham conference on insurance on Monday, Narayan said: "Insurance, like many other sectors in India requires greater levels of investments and in that regard we would welcome steps to increase FDI in the insurance industry."
 

He said most insurance companies were facing a cash crunch and raising the FDI limit would enable them to grow and infuse more capital in the business. "The bill for enhancing FDI in insurance industry has been moved by the government in the parliament and we have provided all our inputs to the government in this behalf," he added.

Commenting on the reforms in the insurance sector, Narayan said "The good part of the reforms in the insurance sector is tied up with the insurance amendment bill. Unless that is done, the rest of it will only be in the window dressing stage and the fundamental structure won't be addressed."

IRDA has also given its views on tax and investment norms in insurance sector ahead of their meeting with the Finance Ministry on Wednesday. "Certain tax measures will be beneficial and will encourage the growth of the insurance industry," Narayan added.

Top insurance companies had met the finance minister last fortnight and suggested measures to grow the insurance sector. Irda will discuss these measures with the finance minister in the meeting on Wednesday.

Talking about the guidelines on life-insurance products, Narayan said the "draft guidelines on life-insurance products will be sent to the life council for discussion within two-three weeks time."

The Irda chairman was also unrelenting on the issue of pension plans and annuities. "Only proper pension products which end into an annuity will be cleared by Irda. But the products which are only called pensions without any pension element will not be approved."

IRDA wants insurers to do away with 'tied agents'

The Insurance Regulatory & Development Authority (Irda), on Monday, asked insurance companies to do away with the concept of ‘tied agents system’ so that agents can sell policies of any insurer and also embrace technology for faster distribution of products.

Tied agents sell products of a single company. Irda Chairman J Hari Narayan also urged the industry players to reduce the high levels of agent attrition rate in the country and this cannot be done by increasing the commission alone as there is need to strike a balance.

The insurance regulator chastised private insurers for indulging in front-loading enormous management cost, which they should cut in the interest of customers and also must follow the regulation on agent commission.

Inaugurating the two-day 'Global Insurance Summit: Finding the god particle in the insurance industry’ organised by the Associated Chambers of Commerce & Industry of India, Narayan said the industry must try to retain agents to achieve its growth targets.

Further, he asked insurance companies to revisit their product delivery process and cut their high onboarding cost, so that they can regain the confidence of customers. Narayan even asked insurers to learn from the banking industry as to how they attracted customers since the opening of the banking sector to private players. "Today a brick and mortar model is getting redundant and you must do what the private banks did to get customer satisfaction," he added.

He said a proposal for lead insurer has been mooted to enable the industry to meet its obligations of reaching out to the rural population.

Furthermore, Narayan said Irda would welcome increase in foreign direct investment (FDI) cap in insurance to enhance growth of the sector. While advocating the need, he said that FDI in insurance would enable the companies to grow and infuse more capital in the business as most of the insurance companies are going through capital crunch. "Insurance, like many other sectors in India, requires greater levels of investment, and in that regard, we would welcome steps to increase FDI in the insurance industry," he added.

Referring to the meeting of select top insurance companies with the Finance Minister on September 4, where measures to underpin and strengthen the growth of the insurance sector were suggested, and the meeting on Wednesday, is in furtherance to that as they would be sitting down to examine all measures, most of which, are related to income tax, service tax and so on, the Irda chief informed. Dwelling on the guidelines of life insurance products, Narayan said, "Draft guidelines on life insurance products will be sent to the life council for discussion within 2-3 weeks time."

ICICI Prudential Midcap Fund announces changes

With effect from 30 October 2012 

ICICI Prudential Mutual Fund has announced following changes in ICICI Prudential Midcap Fund, with effect from 30 October 2012. The changes are: 

Investment Objective: The primary investment objective of the scheme is to seek to generate capital appreciation by actively investing in diversified mid cap stocks. However, there is no assurance that the investment objective of the scheme will be realized. 

Asset Allocation: The scheme will invest 65%-100% in equity and equity related securities of stocks with market capitalisation falling between the lowest market capitalisation stock and highest market capitalisation stock on CNX Midcap Index. 0-35% in equity and equity related securities of stocks forming part of S&P CNX Nifty Index and 0-35% in equity and equity related securities of stocks with market capitalisation falling between the lowest market capitalisation stock and highest market capitalisation stock on BSE Small Cap Index (derivatives up to 50% of the net assets. Investment in ADR/GDR up to 50% of the net assets). 0-35% in debt, cash & money market instruments (exposure to securitised debt up to 50% of debt portfolio). 

Investment strategies: Extract of the investment strategy containing details of market capitalisation: the scheme will predominantly invest in companies with market capitalization falling between the lowest and the highest market capitalisation among the constituents of CNX Midcap Index. With a view to improve the overall liquidity, the scheme may also invest in stocks forming part of S&P CNX Nifty Index. Further, the scheme may also invest in small caps where there is a reasonable opportunity of long term capital appreciation within the overall asset allocation pattern indicated. 

The existing investors under all the options of the scheme who do not consent to the above change, are entitled to exit the scheme anytime between 27 September 2012 to 29 October 2012 (both days inclusive) at applicable NAV without any exit load.

Religare Fixed Maturity Plan-Series XVI-Plan B (24 Months) announces extension of NFO period

Closing date extended to 8 October 2012 

Religare Mutual Fund has decided to extend the closing date of the New Fund Offer period of Religare Fixed Maturity Plan-Series XVI-Plan B (24 Months), a close ended debt scheme from 25 September 2012 to 8 October 2012.

Deutsche Mutual Fund announces change in face value of DWS Treasury Fund-Cash Plan

With effect from 28 September 2012 

Deutsche Mutual Fund has announced change in face value of regular plan under DWS Treasury Fund-Cash Plan, an open ended liquid plan with effect from 28 September 2012. Accordingly, the face value will be changed from Rs 10 to Rs 100 per unit. The unit holding of the existing investors as of date will be adjusted accordingly and the same will not have any impact on the value of investments.

Birla Sun Life Fixed Term Plan – Series FZ Floats On

NFO Period from 27 September to 8 October 2012 

Birla Sun Life Mutual Fund has launched a new fund named as Birla Sun Life Fixed Term Plan – Series FZ, a close ended income scheme with the duration of 1093 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 27 September and will close on 8 October 2012. 

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

The scheme shall offer two options i.e. dividend and growth option. Further, dividend option shall have only payout facility. Default option will be growth. 

The scheme would allocate 70% to 100% of assets in debt securities with low to medium risk profile, upto 30% in money market instruments with low to medium risk profile and upto 30% of assets in Government Securities with low risk profile. 

Upto 5% of assets would be invested in A1 rated certificate of deposits, upto 5% in A1 rated commercial papers, 70% to 75% in AAA rated non convertible debentures and 25% to 30% in AA rated non convertible debentures. 

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 will be nil. 

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

The fund manager of the scheme will be Kaustubh Gupta.

Reliance MF gets Rs 500 crore daily online transactions from corporates

Reliance Capital Asset Management (RCAM) has said that it has witnessed around Rs 500 crore worth corporate transactions every day on its web-based facility 'Invest Easy'. 

Sundeep Sikka, CEO, RCAM said "Investors are driven by convenience and this brings larger allocation of funds from corporate investors to Reliance MF. A large part of corporate financial advisors have migrated to the online platform, minimising their operational time and cost." 

As per the company, 'Invest Easy' is configured to accept complex authorisation requirements of various entities. 

Investors can define their approval workflow and transaction authorisation matrix, it added.

IRDA issues drat IPO norms for non life insurance companies

According to the draft regulations, General insurers planning to enter capital market to raise funds should have a 10 year experience

According to the draft regulations issued recently by IRDA (Insurance Regulatory and Development Authority) on Issuance of Capital by General Insurance Companies, general insurers planning to enter capital market to raise funds should have a 10 year experience and will have to seek prior approval from IRDA. 

The approval granted by IRDA shall have a validity of one year from the date of issue of the approval letter, within which the applicant company shall file the Draft Red Herring Prospectus (DRHP) with SEBI under IRDA (Issuance of Capital by General Insurance Companies) Regulations, 2012. 

The draft norms further said that the regulator would take into account the insurer's financial position, its capital structure and regulatory record before permitting them to come out with the share sale. 

IRDA will also consider the insurers record of policyholder protection, compliance with the Corporate Governance Guidelines and the maintenance of the prescribed regulatory solvency margin among other things. Further, IRDA has kept with it the powers to prescribe the extent to which the promoters shall dilute their respective shareholding and the shares that can be allotted to foreign investors. IRDA would also prescribe the minimum lock-in period for the promoters after the share sale. The IRDA would also look into the purpose for which the insurer is proposing to raise the funds from the market and the insurer's capital structure. 

The regulator has also prescribed additional information—risk factors specific to insurance companies, an overview of the insurance industry and a glossary of terms used in the insurance sector—in the offer document for companies to come out with share sale offer. 

The draft guidelines concluded that the IRDA shall process and grant approval on the application as expeditiously as possible, and the applicant company shall ensure prompt response to the queries and requests for information from the Authority for processing the application.

FIIs continue buying

Inflow of Rs 556.30 crore on 11 September 2012 

Foreign institutional investors (FIIs) bought shares worth a net Rs 556.30 crore on Tuesday, 11 September 2012, compared with inflow of Rs 727 crore on Monday, 10 September 2012. 

The net inflow of Rs 556.30 crore on Tuesday, 11 September 2012, was a result of gross purchases Rs 1852.70 crore and gross sales Rs 1296.40 crore. There was a net inflow of Rs 456.50 crore into the secondary equity markets on 11 September 2012, which was a result of gross purchases Rs 1732.70 crore and gross sales Rs 1276.20 crore. The BSE Sensex had jumped 86.17 points or 0.49% to settle at 17,852.95 on that day, its highest closing level since 21 August 2012 

There was a net inflow of Rs 99.80 crore into the category 'primary market others' on Tuesday, 11 September 2012, which was a result of gross purchases Rs 120 crore and gross sales Rs 20.20 crore. 

FIIs have bought shares worth net Rs 1897.10 crore in September 2012 so far (till 11 September 2012). They had purchased shares worth net Rs 10803.90 crore in August 2012. 

FIIs have bought shares worth net Rs 64966.70 crore in calendar 2012 so far (till 11 September 2012). FIIs offloaded shares worth a net Rs 2714.20 crore in 2011. 

There are a total of 1,755 foreign funds registered with the Securities & Exchange Board of India.

Industrial production growth returns to positive zone, but remains week

IIP growth for June revised upward slightly to (-) 1.75%, but that for revised downward (-) 1.26% 

India's industrial production growth improved to positive zone at minor growth of (-) 0.1% during July 2012, snapping sharp decline of 1.75% posted in June 2012. Industrial production growth was driven up by electricity generation rising 2.8% during July 2012. But, the mining and manufacturing output declined 0.7% and 0.2%, respectively in July 2012. 

As per the use based classification, there have been negative growths in capital goods (-5.0%) and intermediate goods (-1.1%) whereas positive growths have been achieved in basic goods (1.5%), consumer durables (1.4%) and consumer non-durables (0.1%)
The industrial production declined for July 2012 was below economists expectations of 0.4% growth projected for the month. As per the poll of economists conducted by Capital Market, India's industrial production was expected to increase 0.4% during July 2012. The economists responding to the poll had forecasted the IIP growth in the wide range of (-) 2.1% to 1.0% for July 2012. The median of various IIP growth forecast stood at 0.4%, while the average was lower at 0.3% for July 2012. 

In terms of industries, about eight (08) industry groups out of the twenty two (22) industry groups in the manufacturing sector have shown positive growth. The industry group 'Publishing, printing & reproduction of recorded media' has shown the highest growth of 17.0%, followed by 12.5% in 'Machinery and Equipment n.e.c.' and 8.3% in 'Textiles'. On the other hand, the industry group 'Electric machinery and apparatus n.e.c.' has shown a negative growth of 12.8% followed by 12.2% in 'Office, accounting and computing machinery' and 11.5% in 'Furniture; manufacturing n.e.c.'. 

Some of the important items showing high positive growth are: 'Antibiotics & its Preparations' (32.3%), 'Air Conditioner (Room)' (117.4%), 'Plastic Machinery Incl. Moulding Machinery' (63.0%), 'Newspapers' (19.0%), 'Generator/ Alternator' (58.1%), 'CR Sheets' (23.5%), 'Lubricating Oil' (92.1%), 'Petroleum Coke' (76.4%), 'Aerated Waters & Soft Drinks' (53.7%) and 'Sealed Compressors' (75.8%). 

Some of the other important items showing high negative growth during the current month over the same month in previous year include 'Cable, Rubber Insulated' [(-) 39.6%], 'Sponge Iron' [(-) 23.6%], 'Fruit Pulp' [(-) 42.5%], 'Gems and Jewellery' [(-) 18.9%], 'Leather Garments' [(-) 37.0%], 'Sugar' [(-)56.7%], 'Vitamins' [(-) 42.2%], 'Fasteners (Excl. Zip Fasteners)' [(-) 20.2%], 'Ship Building & Repairs' [(-) 37.8%], 'Biscuits' [(-) 21.0%] and 'Grinding Wheels' [(-) 20.5%]. 

The indices for June 2012 have undergone the first revision and those for April 2012 have undergone the final revision in the light of the updated data received from the source agencies. The growth of the industrial production for June revised upward to (-) 1.75% compared to (-) 1.81% reported earlier, while that for April 2012 was revised downward to (-) 1.26% from (-) 0.9% reported earlier.

SBI announces restructuring and merger of schemes

The restructuring & merger will be effected on 5 October 2012 

SBI Mutual Fund has decided to restructure SBI Magnum Income Plus Fund – Savings Plan into SBI EDGE Fund and merge SBI Magnum NRI Investment Fund – Flexi Asset Plan into SBI EDGE Fund in the interest of all the unitholders in the respective schemes and in order to benefit from better economies of scale that will allow for more efficient management of these funds. 

In case the unit holders do not agree to the same, they have the option to redeem / switch your units at the applicable NAV (as on the date of receipt of your application for redemption / switch), without payment of any exit load (if applicable otherwise). This option to exit without payment of exit load can be exercised within 30 days from September 06, 2012 to October 05, 2012 (both days inclusive) upto 3.00 p.m. The redemption / switch requests may be submitted at any of the Investor Service Centers / official points of acceptance designated by SBI Mutual Fund. The restructuring & merger will be effected on October 05, 2012. 

Unitholders, who have pledged or encumbered their units will not have the option to exit unless they procure a release of their pledges / encumbrances prior to the submission of redemption / switch requests. The aforesaid changes may entail tax consequences to unitholders. Therefore, unitholders are requested to consult their Legal, Tax, Finance and other Professional Advisors.

DSP BlackRock FMP-Series 56-3M announces maturity/final redemption date

The maturity/final redemption date is 17 September 2012 

DSP BlackRock Mutual Fund has announced the record date for the purpose of determining the eligible unit holders/beneficial owners holding units (in demat form) of DSP BlackRock FMP-Series 56-3M, a closed-ended income scheme, who would be entitled to the maturity/redemption proceeds on the maturity/final redemption date shall be 13 September 2012. The maturity/final redemption date of the scheme is on 17 September 2012. 

The trading of the units of the scheme, which are listed on the Capital Market Segment of BSE will get suspended and no off market transactions shall be permitted by the depositories (NSDL/CDSL) with effect from 12 September 2012.

Birla Sun Life Mutual Fund announces dividend under various schemes

Record date for dividend is 17 September 2012 

Birla Sun Life Mutual Fund has announced 17 September 2012 as the record date for declaration of dividend under the following schemes. The quantum of dividend per unit on the face value of Rs 10 per unit will be:

Birla Sun Life Fixed Term Plan - Series DL-Dividend Option: Rs 0.9274 per unit (The dividend amount payable will be the amount per unit as mentioned or the entire distributable surplus available in the scheme as on the record date.) 

Birla Sun Life Government Securities Fund -Long Term Plan-Dividend Option: Rs 0.6397 per unit 

Birla Sun Life Short Term Opportunities Fund-Quarterly Dividend Option: 

Retail Plan – Dividend: Rs 0.1828 per unit 

Birla Sun Life Income Plus-Dividend Option: Rs 0.2865 per unit 

Birla Sun Life Medium Term Plan- Quarterly Dividend Option: 

Retail Plan – Dividend: Rs 0.1428 per unit 

Institutional Plan – Dividend: Rs 0.1758 per unit 

Birla Sun Life Medium Term Plan- Half Yearly Dividend Option: 

Retail Plan – Dividend: Rs 0.1815 per unit 

Institutional Plan – Dividend: Rs 0.1815 per unit 

Birla Sun Life Gilt Plus- Quarterly Dividend Option: 

PF Plan: Rs 0.2900 per unit 

Regular Plan: Rs 0.2546 per unit 

The maturity date of Birla Sun Life Fixed Term Plan - Series DL shall be 17 September 2012. Accordingly, trading of units of the scheme will automatically get suspended on the stock exchange(s), where units of the scheme are listed, with effect from 13 September 2012.

SBI Mutual Fund announces dividend under SBI Debt Fund Series-90 Days-66

Record date for dividend is 17 September 2012 

SBI Mutual Fund has announced 17 September 2012 as the record date for declaration of dividend under the dividend option of SBI Debt Fund Series-90 Days-66. The quantum of dividend per unit on the face value of Rs 10 per unit will be entire distributable surplus as on record date. 

The scheme would mature on 17 September 2012 and accordingly, units shall be suspended from trading on the BSE.

Bajaj Allianz General to pay Rs 13.74 lakh for rejecting claim

According to the consumer forum, the insurer had arbitrarily denied the claim by taking the “excuse” of ‘pre-existing diseases' 

The New Delhi District Consumer Disputes Redressal Forum has ordered Bajaj Allianz General Insurance to pay Rs 13.74 lakh equal to $26,717.32 (amount spent on treatment in the US) to the husband and son of a late policy holder for rejecting her claim for reimbursement of expenses incurred on her treatment in the US. 

According to the consumer forum, the insurer had arbitrarily denied theie claim by taking the “excuse” of ‘pre-existing diseases'. The woman had undergone emergency treatment for abdominal pain in a hospital in the US in October 2008 with her son and had incurred expenses of $26,717.32. She had bought an overseas medical policy from Bajaj Allianz so submitted her claim for the expenses incurred, which the insurer rejected on the ground that her discharge summary mentioned pre-existing illnesses of diabetes and high blood pressure. 

In its reply to the complaint made by the legal heirs of the policy holder (woman), Bajaj Allianz General had pleaded that had the pre-existing diseases been disclosed, it could have better assessed the risk. The forum, however, rejected the insurer's contention saying the discharge summary shows she was treated in emergency for abdomen pain etc. The discharge summary itself states that it had no relation with pre-existing diabetes. The conditions of overseas medical claim are not in conflict with the findings in discharge summary.