SEBI hikes registration fee for registered advisors by 400 percent

The registration fee for corporates and limited liability partnerships has gone up by 400% from Rs. 1 lakh earlier to Rs. 5 lakh now. 

Despite the lackluster response from distributors to register as Investment Advisers, market regulator SEBI has hiked the registration fee by 400% for those wanting a Registered Investment Advisor (RIA) status.  

While the application fee and registration fee for individuals and firms (partnership firm) remains unchanged, corporates and those having LLP structure have to cough up a higher amount if they wish to register with SEBI. Individuals and partnership firms have to pay Rs. 5,000 as application fee and Rs. 10,000 as registration fee, which is the same as earlier.  

However, corporates and limited liability partners have to cough up Rs. 25,000 as application fee and Rs. Rs. 5 lakh as registration and renewal fee. Earlier, they had to pay Rs. 5,000 as application fee and Rs. 1 lakh as registration fee.

Advisors have to pay the renewal fee every five years to retain their license. 

The hike in fee for LLP category is likely to hurt advisors because many of them are changing their legal structure from individuals and Pvt. Ltd to LLP of late. Advisors are questioning the rationale of such a substantial hike in fee. “No professional like doctor or chartered accountant requires capital adequacy. I don’t understand the need for hiking fee. This will create more entry barriers. There are so many anomalies in the SEBI Investment Adviser Regulations. This is deterring advisors from registering with SEBI,” said a SEBI registered IA from Mumbai wishing anonymity. 

Advisors say that the cost and entry barrier will increase with the upward revision in fee. 

“Such a quick and sharp revision in fee is not justified. IFAs who are contemplating to become RIAs will shelve their plans. Corporates need to have net worth of Rs. 25 lakh and on top of that the registration fee has been hiked to Rs. 5 lakh. It would be difficult for advisors to recover this cost. It is justifiable if they link the fee with the income from advisory business,” says M S Shabbir of SenSage Financial Services. 

Suresh Sadagopan of Ladder 7 Financial Advisory said “The hike is ill-timed. Advisors are finding it difficult to charge fee from clients. This will increase the cost for us. The fee could have been hiked after a couple of years. It is too early. So far only 150 have registered but going forward not many would even consider becoming a RIA.” 

Melvin Joseph of Finvin Financial Planners says that the concept of IA has many loopholes. “Many IFAs and corporates have shifted their distribution business to another ARN and have registered as RIAs. How can they give sound advice? Their main source of income continues to be from distribution. The ‘arm’s length distance’ criteria defeats the whole purpose of investment advisor. Also, the fee hike is unreasonable”

Costs and complexities associated with RIA have deterred many advisors from registering with SEBI. Out of the 80,000 ARN holders, only 156 have registered with SEBI as Investment Advisers.

Rising cost

Individuals & firms			Corporates and LLP
	Earlier	Now	Earlier	Now
Application fee	5000	5000	5000	25000
Registration fee	10000	10000	100000	500000
Source : SEBI

Source: Team Cafe Mutual

UTI Fixed Income Interval Fund – Series II – Quarterly Interval Plan VI Announces Dividend

Record date for dividend is 03 June 2014 

UTI Mutual Fund has announced 03 June 2014 as the record date for declaration of dividend under dividend sub option of UTI Fixed Income Interval Fund Series – II Quarterly Interval Plan VI. 

The rate of dividend (Rs per unit) will be 100% of distributable surplus as on the record date on the face value of Rs 10 per unit.

HDFC FMP 405D April 2013 (1) Announces Dividend

Record date for dividend is 03 June 2014

 HDFC Mutual Fund has announced 03 June 2014 as the record date for declaration of dividend under the regular option-normal dividend option, direct option-normal dividend option, regular option-quarterly dividend option and direct option-quarterly dividend option of HDFC FMP 405D April 2013 (1), a plan under HDFC Fixed Maturity Plans-Series 25, a close ended income scheme. 

The amount of dividend (Rs per unit) will be distributable surplus, as reduced by applicable statutory levy on the face value of Rs 10 per unit.

ICICI Prudential MF Announces Dividend Under Three Schemes

Record date for dividend is 03 June 2014 

ICICI Prudential Mutual Fund has announced 03 June 2014 as the record date for declaration of dividend under the following schemes. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

ICICI Prudential Multiple Yield Fund – Series 4 – 1100 Days – Plan E: 

Direct Plan – Dividend: 0.05
Regular Plan-Dividend: 0.05 

ICICI Prudential Interval Fund Quarterly Interval Plan I: 

Retail Dividend: 0.2227
Retail Quarterly Dividend Payout: 0.2217 

Direct Plan – Dividend: 0.2274
Regular Plan-Dividend: 0.2250
Direct Plan- Quarterly Dividend Payout: 0.2274 

ICICI Prudential Fixed Maturity Plan – Series 70 – 1285 Days Plan T: 

Direct Plan – Dividend: 0.40
Regular Plan- Dividend: 0.40

HDFC MF Announces Maturity of HDFC FMP 846D January 2012 (1)

The maturity / final redemption dates as on 02 June 2014

HDFC Mutual Fund has fixed 30 May 2014 as the record date for the purpose of determining the eligible unit holders/beneficial owners holding units (in demat form) of HDFC FMP 846D January 2012 (1)-HDFC Fixed Maturity Plans-Series XX, a closed-ended income scheme, who would be entitled to the maturity/redemption proceeds on the maturity/final redemption date i.e. 02 June 2014 or the immediately following business day, if such day is not a business day. 

The trading of the Units of the scheme, which are listed on the Capital Market Segment of NSE & BSE will get suspended with effect from 29 May 2014.

DWS Alpha Equity Fund Announces Change In Exit Load

With effect from 02 June 2014

 Deutsche Mutual Fund has announced change in exit load under DWS Alpha Equity Fund, an open ended debt scheme with effect from 02 June 2014. 

Accordingly, if the investor redeems before 18 months from the allotment of units, the exit load charge will be 2%.

SBI Debt Fund Series - 36 Months – 1 Announces Maturity

The scheme will mature on 02 June 2014 

SBI Mutual Fund has announced that in terms of the Scheme Information Document (SID), SBI Debt Fund Series-36 Months-1 will mature on 02 June 2014 and accordingly, units shall be suspended from trading on the NSE.

SBI MF Announces Offer of Units of SBI Dual Advantage Fund – Series III through NSE MFSS & BSE StAR Platform

SBI Mutual Fund has announced that units of SBI Dual Advantage Fund – Series III, a close ended hybrid scheme, having a tenure of 36 months shall be available for purchase through Mutual Fund Service System (MFSS) of the National Stock Exchange of India (NSE) and BSE Stock Exchange Platforms for allotment and repurchase of Mutual Funds (BSE StAR MF System) of Bombay Stock Exchange (BSE) during the New Fund Offer (NFO), i.e. 12 June 2014.

Tata Dual Advantage Fund Series 2 files offer document with Sebi

A close-ended income fund 

Tata Mutual Fund has filed offer document with Sebi to launch Tata Dual Advantage Fund Series 2, a close-ended income fund. The New Fund Offer price is Rs 10 per unit. It comprises of 5 schemes namely scheme A, B,C,D, E (maturity upto 60 months from the date of allotment of units). 

Investment objective: The schemes are close ended debt funds and its objective is to generate income and / or capital appreciation by investing predominantly in portfolio of fixed income instruments having maturity on or before the date of the maturity of the respective schemes. The schemes will invest small portion (upto 30%) of the schemes assets in equity/equity related instrument including derivative instruments. In case of investment in equity derivatives, the derivative contract shall have expiry before the maturity of the schemes. 

Options/plans: Growth and dividend (payout) options under both plan A and direct plan.
Benchmark: CRISIL MIP Blended Index 

Entry Load (During NFO): NA 

Exit Load (Upon Maturity): Nil 

Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereafter. 

Minimum Target Amount: Rs 20 crore for each scheme 

Asset Allocation: 

For scheme(s) upto 36 months maturity: The scheme shall invest 80-95% in debt and money market instruments, securitised debt and 5-20% in equity and equity related instruments including derivative instruments (options/futures) 

For scheme(s) between 36 to 60 months maturity: The scheme shall invest 70-95% in debt and money market instruments, securitised debt and 5-30% in equity and equity related instruments including derivative instruments (options/futures) 

Fund Managers: Amit Somani (For Debt) and Rupesh Patel (For Equity)

Kotak Emerging Equity Scheme Announces Change In In Exit Load

With effect from 02 June 2014 

Kotak Mutual Fund has announced change in exit load under Kotak Emerging Equity Scheme, an open ended equity growth scheme with effect from 02 June 2014. 

Accordingly, for redemptions / switch outs (including SIP/STP) within 2 years from the date of allotment of units, irrespective of the amount of investment, the exit load charge will be 1%. 

For redemptions / switch outs (including SIP/STP) after 2 years from the date of allotment of units, irrespective of the amount of investment, the exit load charge will be Nil.

UTI Fixed Term Income Fund – Series XIX – I (369 Days) Floats On

NFO period is from 29 May to 03 June 2014 

UTI Mutual Fund has launched a new fund named as UTI - Fixed Term Income Fund – Series XIX – I (369 Days), a close ended income scheme. The duration of the scheme is 369 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 29 May to 03 June 2014. 

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 growth option, quarterly dividend option with payout and reinvestment facility, flexi dividend option with payout and reinvestment facility, annual dividend option with payout and reinvestment facility and maturity dividend option with payout facility. 

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

The minimum application amount is Rs 5000 and in multiples of Rs 10 under all the options. 

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 is the fund manager for the scheme.

Axis Fixed Term Plan – Series 66 (672 Days) Floats On

NFO period is from 29 May to 03 June 2014

Axis Mutual Fund has launched a new plan named as Axis Fixed Term Plan – Series 66 (672 Days), a close ended debt scheme. The duration of the scheme is 672 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 29 May to 03 June 2014. 

The plan of the scheme will endeavour to generate returns through a portfolio of debt & money market instruments that are maturing on or before the maturity of the plan.
The scheme would have two plans - regular and direct. Both the plans will have growth option, dividend (payout facility) option and Quarterly dividend (Payout facility) option. 

The scheme will allocate 70%-100% of assets in debt instruments including Certificate of Deposits with low to medium risk and will invest upto 30% of assets in money market instruments with low risk profile. Investment in securitized debt would be upto 50% of the net assets of the scheme. The scheme shall not invest in foreign securitized debt. Investment in derivatives shall be up to 50% of the net assets of the scheme. 

65% to 70% of net assets would be invested in AAA rated NCDs/Bonds. 

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 not applicable. 

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

The fund manager of the scheme will be Kedar Karnik.

Axis Hybrid Fund Series 13 Floats On

NFO period is from 29 May to 10 June 2014 

Axis Mutual Fund has launched a new fund named as Axis Hybrid Fund Series 13, a 1275 days close ended debt scheme. During the New Fund Offer (NFO) period the units will be offered for Rs 10 each. The new issue is open for subscription from 29 May and close subscription on 10 June 2014. 

In order to provide liquidity, the units of the scheme will be listed on the capital market segment of the NSE and/ or any other Stock Exchange. 

This product is suitable for investors who are seeking capital appreciation while generating income over medium to long term. The scheme invests in debt and money market instruments as well as equity and equity related instruments with medium risk – Yellow. 

The primary objective is to generate income by investing in high quality fixed income securities that are maturing on or before the maturity of the scheme whilst the secondary objective is to generate capital appreciation by investing in equity and equity related instruments. 

The scheme shall offer two options i.e. dividend (dividend payout facility) and growth option.
The scheme will allocate 70% to 95% of assets in debt instruments including securitized debt with low to medium risk profile, invest upto 25% of assets in money market instruments with low risk profile and it would allocate 5% to 30% of assets in equity and equity related instruments with high risk profile. Investment in securitized debt would be up to 50% of the net assets of the scheme. The scheme shall not invest in foreign securitized debt. 

The minimum application amount is Rs 5000 and in multiples of Re 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 not applicable for the scheme. 

Benchmark Index for the scheme is Crisil MIP Blended Index. 

The fund managers of the scheme are Devang Shah and Jinesh Gopani.

Mutual funds continue buying

Net inflow of Rs 66.40 crore on 28 May 2014

Mutual funds (MFs) bought shares worth a net Rs 66.40 crore on Wednesday, 28 May 2014, compared with net inflow of Rs 100 crore on Tuesday, 27 May 2014. 

The net inflow of Rs 66.40 crore on Wednesday, 28 May 2014, was a result of gross purchases of Rs 842.50 crore and gross sales of Rs 776.10 crore. The S&P BSE Sensex had gained 6.58 points or 0.03% to settle at 24,556.09 on that day, its highest closing level since 26 May 2014. 

Mutual funds have sold shares worth a net Rs 502 crore in this month so far (till 28 May 2014)

Industry confident Modi Govt will deliver on growth, transparency-ASSOCHAM

Watching with great interest the first day of Prime Minister Mr Narendra Modi and his key cabinet ministers like Finance, Telecom, Law, Power and Coal in office, ASSOCHAM President Mr Rana Kapoor said the industry gets a clear message that the new NDA Government will work towards achieving growth with low inflation in a transparent and policy-driven regime. 

“The stage was set by the Prime Minister himself when he posted his message on the PMO website without losing any time that his government will deliver development, good governance and stability. 

"The Finance Minister Mr Arun Jaitley's opening remarks on taking charge in North Block that his priority would be to expedite decision- making is quite assuring for the industry which can now rework its investment cycle”, Mr Kapoor said. 

A similar signal came about from Mr Ravi Shankar Prasad who said, both in his capacity as the minister for Law and Telecom that fiscal stability and ensuring growth in a non-discriminatory manner would be the mantra of the new government. “This is important given the fact that the telecom sector has witnessed some of the inglorious periods despite achieving a glorious growth thanks to scams in the past.” Mr Kapoor said. 

The initial remarks by the minister in-charge of the Coal and Power, Mr Piyush Goyal also assured industry that the allocation of natural resources will be policy driven while some of the areas of conflicts between power and coal would be resolved. “The issue of coal linkages for the power plants is expected to be thrashed out in the near future,” the ASSOCHAM President said. 

He said that besides the focus on economic issues, the new government has made an excellent beginning on the geo-political situation in South Asia which holds a great potential for industry and trade. “Building of bridges with Pakistan is noteworthy in particular,” Mr Kapoor said.

For Mining Companies, Productivity Is Key to Value Creation- The Boston Consulting Group

Rising Costs and Falling Commodity Prices Have Eroded Shareholder Returns for Mining Companies. In Response, Miners Must Focus on Improving Productivity in New Areas and in New Ways, BCG Research Finds 

Escalating costs, combined with declining commodity prices, have dramatically squeezed the margins of mining companies, forcing them to dig deeper to find sources of value creation. Given the uncertain economic environment, creating shareholder value will increasingly depend on enhancing productivity, according to a new report titled Value Creation in Mining 2013: The Productivity Imperative, which is being released today by The Boston Consulting Group (BCG). 

The report dissects total shareholder return (TSR) of 42 major mining companies over a ten-year period. On the whole, the decade was lucrative; most companies delivered an average annual TSR of about 16 percent, while the top ten produced an average annual TSR of approximately 35 percent. 

Mining companies were hit hard, however, after 2009. Even the top ten saw TSR fall by more than half, to 15 percent, and it was flat for the sector. The profitability pinch shows that mining companies cannot rely on costs to automatically contract when prices decline. 

With the economics of mining under pressure, efforts to enhance productivity have emerged as primary levers mining companies can apply to create shareholder value. Gustavo Nieponice, a BCG partner and co author of the report, observes, “Common approaches—such as reducing headcount and deferring expenditures—quickly reach their limit. A great deal of hidden value can be captured by using a systemic methodology that encompasses not only physical assets but also management systems and people.” 

MOST is a maturity-based, optimized, sustainable, and transformational framework designed to overcome the hurdles companies typically encounter in their productivity efforts. MOST is built on BCG's experience with more than 150 projects around the world. 

“Mining companies often struggle with productivity initiatives and do so for various reasons,” says Alexander Koch, a BCG partner and co author of the report. “Sometimes managers pursue incremental improvements and miss opportunities to apply innovative technologies or new ways of thinking to operating an asset. Or, managers may ignore the organizational structure, culture, or management systems, all of which are needed to enable change.” A systemic productivity initiative, the report shows, requires the combination of deep technical knowledge, an innovative mindset, and the rigorous application of change-management levers. 

Now in its third year, the Value Creation in Mining report is sponsored by BCG's Industrial Goods practice. The report is part of BCG's Value Creators series, which uses BCG proprietary methodology to disaggregate the sources of value creation among top-performing companies throughout leading industries.

On the whole, there would be a gradual recovery in the economy with sharp attention paid on inflation and its movement-Care Ratings

Economic Prospects following Elections 

Key features of BJP's Manifesto 

Price rise: BJP proposed to lower inflation by taking steps such as; special Courts to stop hoarding and black marketing, setting up a Price Stabilization Fund, evolving a single 'National Agriculture Market', leveraging on technology to disseminate real time data, area specific crops and vegetables linked to food habits of the people. 

Employment and Entrepreneurship: Accord high priority to job creation and opportunities for entrepreneurship. For the same, it has talked about steps such as labor-intensive manufacturing, focus on traditional employment bases of agriculture, up gradation of infrastructure and housing, steps for self-employment opportunities. 

Corruption: Eliminate the scope of corruption, emphasize on technology enabled e-Governance. Apart from that public awareness, policy-driven governance and simplification of the tax regime have also been cited as solutions to the problem of corruption. 

Decentralization and People's Participation: The manifesto proposed a People-Public-Private Partnership (PPPP) model to involve the people in Governance as functionaries and facilitators. 

E-Governance: There is a special mention of e-governance and IT as an enabler of empowerment, focus on increasing the penetration and usage of broadband across the country, leverage technology for e-Governance, generate IT based jobs in rural and semi-urban areas, use mobile and e-Banking to ensure financial inclusion. 

Rural and Urban development: Major thrust area for rural development would be to improve village level infrastructure in terms of roads, potable water, education, health, supply chain, electricity, broadband, job creation, security in rural areas and linkage to markets. Apart from that, BJP has advocated for urban development as its priority. Major steps will be undertaken in Transport and Housing for 'Urban Upliftment' in India. 

Economic Revival: Fiscal discipline, re-visiting the policy framework, Banking reforms, encouraging savings and re-energizing the engines of growth are some of the solutions cited to ensure economic growth. 

Taxation & FDI: BJP had said that it will rationalize and simplify the tax regime. It also said that it will bring on board all State governments in adopting GST, addressing all their concerns. Barring the multi-brand retail sector, FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialized expertise. 

Agriculture, Industry, MSMEs and services sector: For each of these sectors in the economy, the manifesto promised measures for better productivity and job creation. 

Other salient points: Science and Technology, focus on flora and fauna, health services, education sector, women safety, social security, equal opportunities for minorities are among the other salient points that the manifesto focused on. 

What can we expect the government to do? 

Accountable Administration – As mentioned in the manifesto, administrative reforms would be a priority of the BJP. The measures would include digitization of government records, opening up government to draw expertise from the industry, academia and society into the services. The governance would be more people centric and policy driven. This will help in increasing efficiency across the board. 

Clearing of investments – The BJP had promised that, if elected, he would take decisive action to unblock stalled investments in power, road and rail projects to revive economic growth. This would also result in easing of doing business. This will help in reviving the investment cycle. 

Infrastructure spending - The BJP government can start infrastructure spending particularly on roads and power based on the Budget allocations which is to be around Rs 1 lakh crore. This will provide impetus to spending and forge strong backward linkages with industry. 

NREGA - NREGA has been unsuccessful in producing meaningful public assets. The new government is expected to devote time towards how the scheme should be reformed and redesigned to generate assets. This will address the issue of rural capital formation as well as employment. 

Subsidy – The new government is also expected to provide better targeting of the existing subsidy bill. 

Therefore, while absolute levels of subsidy are unlikely to go down, targeting the beneficiaries and improving the delivery mechanism will make the scheme more effective.
Inflation control – Controlling of inflation would require a coordinated monetary policy. The BJP's economic cell had provided recommendations such as reforms of the APMC Act, liberalization of agrimarkets, along with an unbundling of FCI operations of procurement, storage and distribution to cater to supply side bottlenecks causing inflation. However, this will work in the medium term. For the short term when monsoons could be adverse or sub-optimal a stand-by import plan is necessary to ensure that supplies are augmented in case there are specific crop failures. 

Gold Imports – BJP could ease the gold-import restrictions in the country as the foreign reserves and the current account deficit have improved in the past few months. This will tend to put pressure on trade deficit as well as CAD. However, CAD will remain around 2.5% for the current fiscal year. 

Raise Tax exemption limit- BJP could raise the basic tax exemption limit as it has promised this and more in its 2009 manifesto. 

Poverty: Alleviating poverty will also be key a challenge for the Modi government in the 21st century. Various state BJP governments have fared well on these issues and Modi is expected to implement their policies nationally. 

Other Issues that need clarity 

Investment stance - The BJP's said no to FDI in multi brand retail in its manifesto. However it has made it clear that it would allow FDI across sectors wherever there is a need for job and asset creation, infrastructure, and acquisition of niche technology and specialized expertise. Therefore, it is unlikely that there would be any major changes in stance towards FDI in general. 

Interest rates – The interest rates would continue to be monitored and decided by the RBI based on their inflation targeting. The government is not likely to exert direct influence on monetary policy. 

Legislative reforms: any reforms which require going through Parliament like enhancing FDI limits beyond 50%, would need to go through the regular channels. 

Government may try and rework the present dispensation on environment and land procurement to aid industrial growth though it would be calibrated. 

Tax reforms: The DTC and GST clearance would be expedited, though it is unlikely to take place this fiscal. 

Will Indian Economy FY15 look different? 

CARE's economic projections for FY15 remain unchanged as of now. The affirmative set of actions would be felt in terms of sprucing up the administrative processes which will provide a boost to industry. However, translation into higher growth would be seen only after a lag as there is need for concomitant increase in demand conditions for investment to pick up as industry is operating with surplus capacity today. A lot will depend on the specific steps taken within the ambit of the government to directly increase spending to enhance GDP growth. But any action in terms of clearing hurdles and making it easy to do business will definitely bring in investment. 

The forex market has shown remarkable enthusiasm to the Elections outcome. However, it is expected to be mean reverting and move towards the levels justified by fundamentals in the next month or so. Foreign investment taking a long term call would be positive while FDI would still follow a wait-and watch approach before moving in. 

While a sub-optimal monsoon is possible this year, the government should be cautious on increasing MSPs as that would add to inflation. 

On the whole, there would be a gradual recovery in the economy with sharp attention paid on inflation and its movement.

ASSOCHAM submits 4 pronged strategy paper to new govt. to revive telecom sector Spectrum

ASSOCHAM has submitted a four-pronged telecom strategy paper to the new telecom minister, Mr Ravi Shankar Prasad to reinvigorate the telecommunications sector by reducing regulatory costs, auctioning available spectrum, extending benefits of infrastructure status and providing an impetus to domestic manufacturing. 

ASSOCHAM has also urged the new telecom minister to immediately auction all available spectrum with socio-economic benefits valued at over Rs two lakh crore (excluding proceeds from auctions) lying idle with the government in 700, 800, 900, 1800 and 2100 MHz bands. 

“Mobile communication can usher in India's much awaited broadband revolution in a much faster, efficient and cost-effective manner as such adequate spectrum availability is of paramount significance,” the paper noted. “Thus, all available spectrum must be auctioned immediately, ideally in a big-bang auction or in a short timeframe by delivering benefits to society and revenues for government.” 

There is also the need to immediately reduce regulatory costs for telecom operators and bring down adjusted gross revenue (AGR) based levies by about one per cent annually during the course of next five years over a defined glide path while simultaneously maintaining revenue neutrality of the government, suggested the ASSOCHAM paper. 

“Telecom licensees pay as much as 15 per cent of their AGRs as license fee along with other related charges towards sector specific levies and various central and state taxes borne by service providers,” noted the chamber paper. “Besides, the current AGR definition is controversial and needs to be reviewed and must be referred to the Telecom Regulatory Authority of India (TRAI) for its consultation and recommendation to make it simple and unambiguous.” 

ASSOCHAM has also suggested the new government to urgently implement TRAI's guidelines on trading and sharing of spectrum, besides a clear roadmap should also be laid down for future release of spectrum to give clarity and certainty to the operators.
The chamber has also urged the new government to fully extend the benefits of infrastructure status already granted to the telecom sector two years ago to enhance its competitiveness. 

A uniform low-cost right of way charge for towers and optical fibers critical for faster rollout of telecommunications network; assured availability of grid power at industrial rates and preferential/low interest financing and framing of rules under the Telegraph Act for uniform processes for installation and operation of mobile towers across states are certain important steps suggested in the ASSOCHAM paper. 

There is also a need to provide impetus to domestic manufacturing by reviewing and rationalizing levies on equipment manufacturing, incentivizing exports coupled with favourable policy support, the paper added. “Refund of excise duty for domestically manufactured mobile handsets, their components, parts and accessories would boost manufacturing, besides focus should also be laid on research and development initiatives to promote innovation in telecom sector.” 

The aforesaid critical measures are akin to low-hanging fruits that can be easily picked up and can be implemented in a short timeframe of 30-90 days, noted the ASSOCHAM paper. “A right push to the sector will have a multiplier effect on other sectors and will also boost consumers' confidence.”

At the current juncture, it is vital to revive the pace of GDP growth, bring down inflation, and create new jobs on a large scale-CII

CII warmly felicitates Prime Minister Shri Narendrabhai Modi on assuming office after a momentous verdict in the elections and wishes him all success as Prime Minister. We look forward to the new Prime Minister's sagacious and astute leadership of the nation at a challenging period. CII also welcomes and congratulates the new Cabinet of Ministers which has taken charge. 

We believe this is a pivotal moment in the nation's history that can shape the future of our 1.2 billion people. Hon'ble Prime Minister's stress on growth and development has translated into an unequivocal mandate for change, and Industry looks forward to a new era of reform and liberalization of the Indian economy. At the current juncture, it is vital to revive the pace of GDP growth, bring down inflation, and create new jobs on a large scale. CII anticipates a quick and proactive agenda of economic and governance policies, including fiscal consolidation, fast-tracking of stranded projects, and sectoral initiatives for infrastructure, manufacturing, agriculture and mining. 

CII looks forward to working closely with Shri Narendra Modi and the New Government.

FIIs continue selling

Net outflow of Rs 43.70 crore on 28 May 2014 

Foreign institutional investors (FIIs) sold shares worth a net Rs 43.70 crore on Wednesday, 28 May 2014, compared with net outflow of Rs 223.40 crore on Tuesday, 27 May 2014. 

The net outflow of Rs 43.70 crore on Wednesday, 28 May 2014, was a result of gross 
purchases of Rs 5777.80 crore and gross sales of Rs 5821.50 crore. There was a net outflow of Rs 254.60 crore from the secondary equity market on Wednesday, 28 May 2014, which was a result of gross purchases of Rs 5562.20 crore and gross sales of Rs 5816.80 crore. The S&P BSE Sensex had gained 6.58 points or 0.03% to settle at 24,556.09 on that day, its highest closing level since 26 May 2014. 

There was a net inflow of Rs 210.90 crore into the category 'primary market & others' on Wednesday, 28 May 2014, which was a result of gross purchases of Rs 215.50 crore and gross sales of Rs 4.60 crore. 

FIIs have bought shares worth a net Rs 14446.80 crore in this month so far (till 28 May 2014). FIIs purchased shares worth a net Rs 9602.40 crore in April 2014. 

FIIs have bought shares worth a net Rs 46244.90 crore in this calendar year so far (till 28 May 2014). FIIs bought shares worth a net Rs 113135.70 crore in 2013 calendar year.
There are a total of 1,708 foreign funds registered with the Securities & Exchange Board of India.

Rupee loses moderately

At 59.03/04 per dollar 

Rupee closed lower at 59.03/04 per dollar on Thursday (29 May 2014), versus its previous close of 58.93/94 per dollar on Wednesday.

Bond yield eases by 03 bps

10-year G-sec Paper yield closes at 8.67% 

The yield on 10-year benchmark federal paper, 8.83% GS 2023, decreased 03 basis points to close at 8.67% compared to 8.70% at close in the previous trading session. The total trading volume on central banks gilts trading platform stood at Rs 39165 crore. 

Bond yield decreased on value buying, although the gains in bond prices was restricted as market eyed the Rs 16000 crore bond auction scheduled for tomorrow and bi-monthly monetary policy review next week. 

The weighted average rate in the overnight call money increased to 8.08% compared to 7.73% in the previous session. The call money rate hovered in the range of 7.55% to 9.00% with the volume of Rs 14587.10 crore.

Asia Pacific Market: Stocks ends softer on profit booking

Headline equities of the Asia Pacific market closed mostly weaker on Thursday, 29 May 2014, hurt by profit-taking in recent high-performers. 

But losses on the regional bourses were limited amid optimism the US economy and on expectations the European Central Bank (ECB) will do something big next week. An unexpected increase in German joblessness and data on euro-region money supply released on Wednesday stoked bets that the ECB will act to boost inflation next week. 

Among Asian bourses, Australian share market finished weaker, on tracking weak offshore cues, with shares in technology and materials & resources stocks led losses. The decline was, however, capped on the back of the better than expected 2nd estimate for 2014/ 15 capital spending plans. The benchmark S&P/ASX200 and the broader All Ordinaries each declined by 0.14% to 5519.50 and 5499.20, respectively. 

Material and resource stocks were worst performer in the Sydney market today after the price of iron ore declined to the lowest levels seen in 2 years, around US$97.00 per tonne levels. The commodity price for Australia's biggest export has lost 28% year-to-date. 

Resources giant BHP Billiton fell 1.3% to A$37.49. Main rival Rio Tinto lost 2.2% to A$60.07 as it announced plans to downsize operations at its Mongolian joint venture Oyu Tolgio copper and gold mine. Iron ore miner Fortescue Metals Group shed 3% to A$4.54 as chief executive Nev Power told investors the company would consider expanding into the oil and gas sector. 

Shares of telecommunication and retailers were major gainers in the Sydney bourse, with Telstra Corporation rising 0.8% to A$5.38. Woolworths rose 0.2% to A$37.51, while rival Wesfarmers, added 0.6% to A$43.53 as incoming Coles managing director John Durkin vowed to keep trimming supply chain costs. 

Toll Holdings (TOL) shares climbed up 4.9% to A$5.53 after the freight and courier company said it expects to save up to A$12 million each year by streamlining its business structure. TOL plans to reduce its structure from six divisions to five and expects the restructure to deliver annual savings of between A$10 million and A$12 million from next financial year with the costs the rationalisation to be offset by one-off gains. 

Australian Bureau of Statistics released first-quarter capital expenditure numbers on Thursday, indicating that capex fell by 4.2% in the March quarter, contributed to by an 8.7% reduction in mining investment. However, the ABS also published estimates for 2014-15 and these were revised up substantially from the previous quarter. Now, capex in the coming financial year is expected to reach $137 billion, up 9.3% from an initial estimate of $125 billion, with mining investment not predicted to drop as much as initially feared, and investment in services picking up. 

In Japan, Japanese share market advanced for sixth straight session, supported by gaining confidence in the U.S. economic recovery after strong economic data. But a weak lead from Wall Street overnight and stronger yen limited the market gains. The benchmark Nikkei 225 index was up 0.07% to finish at 14,681.72, while the Topix index of all first-section shares rose 0.21% to 1200.68. 

The Tokyo shares followed Wall Street lower at the start of trade. The concerns over the impact of corporate overseas earnings due to yen appreciation against the greenback also fuelled losses. Meanwhile, investors' sentiments weakened after data from the Ministry of Economy, Trade and Industry showed Japan's retail sales fell 4.4% on year in April, hit by the April 1 sales tax hike to 8% from 5%. 

But, the Tokyo market recouped lost initial ground and managed to end the day in positive terrain, after the release of better-than-expected domestic auto output figures for April during TSE trading hours. At Mitsubishi Motors, domestic output jumped 74.9% from a year earlier, while output at Honda Motors rose 38.1%. 

The Bank of Japan on Thursday updated the guideline of its outright purchases of Japanese government bonds to reduce the lower end of JGB buying operations of bonds of more than 10 years duration to Y150 billion from Y170 billion. The decision is aimed at keeping the duration of its JGB holdings in a range of six to eight years as the BOJ has recently faced problems keeping the duration under eight years, the upper end of the guideline, increasing pressure on the BOJ to lower its purchases of longer-end JGBs. But the guideline of JGB buying operations decided in May 2013 makes it difficult for the BOJ to lower the scale of JGB buying with a remaining life of more than 10-years from floor of Y170 billion. 

In China, Mainland China share market declined today, hurt by profit-taking in recent high-performers, with shares of securities brokers leading losses. The market losses, was however, limited after Premier Li Keqiang said China's economy is generally stable and positive changes have appeared in structural adjustment. Li also said there were still uncertainties and unstable factors in the global recovery. The benchmark Shanghai Composite declined 0.47% to finish at 2040.60, on turnover of 69.47 billion yuan. 

Shares of securities brokers were the biggest index drags on the Shanghai market. CITIC Securities, China's largest listed brokerage, was down 1.7% to 11.29 yuan, while Haitong Securities shed 1.5% to 9.23 yuan. 

Shares of Health-related companies closed mostly higher in Shanghai market, thanks to newly-announced reform policies allowing private companies more access to the healthcare system. Jointown Pharmaceutical Group surged 6.9% to 14.41 yuan, Jiangsu Hengrui Medicine gained 2.1% to 32.37 yuan, and Shanghai Fosun Pharmaceutical Group added 1.3% to 19.72 yuan. 

In Hong Kong, HK share market finished lower in volatile trade when spot futures contracts expire today. The benchmark Hang Seng Index was down 0.3% to finish at 23010.14. Turnover decreased to HK$58.32 billion from HK$71.9 billion on Wednesday. The benchmark index shot up 129 points at one stage in the morning, but headed south in afternoon session, and slid 111 points at one point. 

The HK share market commenced trading with firm footing, lifted by Chinese insurers which posted strong gains after Morgan Stanley upgraded the sector. But the market erased earlier gain on late afternoon trade, with losses in materials and energy stocks overshadowed gains in realty stocks. 

Macau gaming counters were lower on strong selling orders emerging from afternoon session. Galaxy Ent (00027) fell 3% to HK$59.2. Sands China (01928) and MGM China (02282) retreated 2% to HK$55.9 and HK$26.35. Wynn Macau (01128) was weakened by 1.7% to HK$31.75. 

Realty counters were higher, with Sino Land (00083), Henderson Land (00012) and Wharf (00004) all gaining up 0.7% to 0.8%. Hang Lung Properties (00101) added 2% to HK$24.35. Chueng Kong (00001) rose 2.2% to HK$137. 

Technology and Telecom stocks were lower. Tencent (00700) fell 3% to HK$109.8. Melco (00200) slipped 1%. Chinasoft (00354), Sinosoft (01297) and Kingdee (00268) all declined between 3.7% and 5.5%. Kingsoft (03888) slid 11.6% to HK$22.95 after it reported a slowdown in 1Q earnings. 

China software company Kingsoft Corp tumbled 11.6% to HK$22.95 after its first quarter results on Wednesday failed to meet market expectations. 

Shares of home appliances retailer Huiyin Household Appliances Holdings Co surged 24.1% to HK$0.335 after the smaller rival of Suning and GOME said it would expand into the lottery sales business in China, leveraging on its retail sales channel in the country.
In India, key benchmark indices finished lower on weak global cues. Meanwhile, the market sentiment also hit by data showing that foreign funds were net sellers of Indian stocks on Wednesday, 28 May 2014. 

The S&P BSE Sensex lost 321.94 points or 1.31% to settle at 24,234.15, its lowest closing level since 16 May 2014. The Sensex has risen 1,816.35 points or 8.1% in this month so far (till 29 May 2014). The Sensex has gained 3,063.47 points or 14.47% in calendar year 2014 so far (till 29 May 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 6,785.44 points or 38.88%. 

Bharat Heavy Electricals (Bhel) dropped 1.89%. The company's net profit fell 43.02% to Rs 1844.59 crore on 21.42% fall in total income to Rs 15320.38 crore in Q4 March 2014 over Q4 March 2013. The result was announced after trading hours. Bhel's net profit fell 47.68% to Rs 3460.78 crore on 17.8% fall in total income to Rs 40724.86 crore in the year ended 31 March 2014 over the year ended 31 March 2013. 

BPCL shed 0.96% to Rs 536.50 on weak Q4 result. The scrip hit high of Rs 555 and low of Rs 532.15. The company's net profit fell 15.19% to Rs 4068.37 crore on 12.53% increase in total income to Rs 75194.71 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours. 

Sun Pharmaceutical Industries (Sun Pharma) rose 0.63% to Rs 587.60 after announcing strong Q4 result. The scrip hit high of Rs 591.90 and low of Rs 582.50. The company's consolidated net profit jumped 57% to Rs 1587 crore on 32% increase in net sales/income from operations to Rs 4044 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours. 

National Aluminium Company (Nalco) declined 1.84% on weak Q4 result. The company's net profit fell 29.9% to Rs 172.45 crore on 0.63% decline in total income to Rs 1973.59 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014. 

Hero MotoCorp fell 0.39% to Rs 2,341.20 after announcing weak Q4 results. The stock was volatile. The stock hit high of Rs 2,353.60 and low of Rs 2,268.90. Hero MotoCorp's net profit declined 3.45% to Rs 554.43 crore on 6.31% rise in net sales to Rs 6455.70 crore in Q4 March 2014 over Q4 March 2013. 

Elsewhere in the Asia Pacific region, Taiwan's Taiex index fell 0.14%. New Zealand's NZX50 eked out 0.03% gain. Malaysia's KLSE Composite rose 0.27%. Markets in Indonesia are closed for a holiday. 

South Korea's KOSPI index was down 0.24%. The nation's current account surplus narrowed to $7.1 billion in April from a revised $7.29 billion in March, data released by the Bank of Korea on Thursday showed. 

Singapore's Straits Times index jumped 0.88% after Morgan Stanley raised its rating on the city's shares to overweight from equal-weight, citing stabilizing economic growth and limited earnings risks.

Birla Sun Life MF Announces Dividend Under Two Schemes

Record date for dividend is 02 June 2014

Birla Sun Life Mutual Fund has announced 02 June 2014 as the record date for declaration of dividend on the face value of Rs 10 per unit under the following schemes. The amount of dividend (Rs per unit) will be: 

Birla Sun Life Rajiv Gandhi Equity Savings Scheme – Series 1-Regular Plan-Dividend Option & Direct Plan-Dividend Option: 1.40 

Birla Sun Life Enhanced Arbitrage Fund- Regular Plan-Dividend Option & Direct Plan-Dividend Option: 0.10

LIC Nomura MF FMP Series 55 Announces Dividend

Record date for dividend is 02 June 2014 

LIC Nomura Mutual Fund has announced 02 June 2014 as the record date for declaration of dividend on the face value of Rs 10 per unit under the regular plan dividend option and direct plan dividend option of LIC Nomura MF FMP Series – 55. 

The quantum of dividend will be entire distributable surplus as on the record date.

UTI Fixed Term Income Fund – Series XVIII – XV (366 Days) Floats On

NFO period is from 28 May to 30 May 2014 

UTI Mutual Fund has launched a new fund named as UTI - Fixed Term Income Fund – Series XVIII – XV (366 Days), a close ended income scheme. The duration of the scheme is 366 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 28 May to 30 May 2014. 

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 growth option, quarterly dividend option with payout and reinvestment facility, flexi dividend option with payout and reinvestment facility, annual dividend option with payout and reinvestment facility and maturity dividend option with payout facility. 

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

The minimum application amount is Rs 5000 and in multiples of Rs 10 under all the options. 

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 is the fund manager for the scheme.

Union KBC Fixed Maturity Plan – Series 7Announces Dividend

Record date for dividend is 02 June 2014

Union KBC Mutual Fund has announced 02 June 2014 as the record date for declaration of dividend under the dividend payout option of Union KBC Fixed Maturity Plan – Series 7-Regular Plan. 

The amount of dividend will be entire available distributable surplus as on the record date on the face value of Rs 10 per unit.

ICICI Prudential Fixed Maturity Plan – Series 60 – 3 Year Plan E Announces Dividend

Record date for dividend is 02 June 2014 

ICICI Prudential Mutual Fund has announced 02 June 2014 as the record date for declaration of dividend under the dividend option of ICICI Prudential Fixed Maturity Plan – Series 60 - 3 Year Plan E. 

The amount of dividend will be Rs 0.05 per unit on the face value of Rs 10 per unit.

HDFC FMP 846D January 2012 (1) Announces Dividend

Record date for dividend is 02 June 2014

HDFC Mutual Fund has announced 02 June 2014 as the record date for declaration of dividend under the normal dividend option and quarterly dividend option of HDFC FMP 846D January 2012 (1), a plan under HDFC Fixed Maturity Plans-Series XX. 

The amount of dividend (Rs per unit) will be distributable surplus, as reduced by applicable statutory levy on the face value of Rs 10 per unit.

L&T Business Cycle Fund files offer document with Sebi

An open-ended equity scheme 

L&T Mutual Fund has filed offer document with Sebi to launch L&T Business Cycle Fund, an open-ended equity scheme. The New Fund Offer price is Rs 10 per unit. 

Investment objective: To seek to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, including equity derivatives, in the Indian market with focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy. 

Options/plans: Growth and dividend (payout & reinvestment) options and direct plan- growth and dividend (payout & reinvestment) options. 

Benchmark: S&P BSE 200 Index 

Entry load: Nil 

Exit load: 1% for redemption within 18 months from the date of allotment or purchase applying first in first out basis 

Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereafter. 

Minimum Target Amount: Rs 10 crore 

Asset Allocation: The scheme shall invest 65-100% in equity and equity related securities*(including Indian and foreign equity securities as permitted by SEBI/RBI. The scheme shall also invest up to 35% in debt and money market instruments. 

* Includes investments in equity derivatives up to 25% of the net assets of the Scheme.
Fund Managers: Venugopal Manghat and Abhijeet Dakhsikar (for foreign securities)

Sundaram Developed Markets Fund files offer document with Sebi

An open-end fund-of-funds scheme 

Sundaram Mutual Fund has filed offer document with Sebi to launch Sundaram Developed Markets Fund, an open-end fund-of-funds scheme. The New Fund Offer price is Rs 10 per unit. 

Investment objective: To achieve long term growth by investing in index funds and exchange traded funds which invest in equity & equity related securities from U.S., Europe U.K. & Japan. Income generation may only be a secondary objective. 

Options/plans: Growth and dividend (payout & reinvestment) options under both regular plan and direct plan. 

Benchmark: MSCI World Index 

Entry load: Nil 

Exit load: An exit load of 1% shall apply for redemption within 12 months from the date of allotment. 

Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereafter. 

Minimum Target Amount: Rs 10 crore 

Asset Allocation: The scheme shall invest 20-60% in units of index funds & exchange traded funds which invest mainly in equity and equity related securities from U.S. The scheme shall also invest 20-60% in units of index funds & exchange traded funds which invest mainly in equity and equity related securities from Europe & U.K. The scheme shall also invest 20-60% in units of index funds & exchange traded funds which invest mainly in equity and equity related securities from Japan and up to 10% in debt and money market securities issued in India; or in units of debt and/or liquid mutual fund schemes. 

The remittance of investment to the underlying scheme will be in foreign currency. 

Fund Manager: S Bharath

SBI Shariah Equity Fund files offer document with Sebi

An open-ended equity scheme 

SBI Mutual Fund has filed offer document with Sebi to launch SBI Shariah Equity Fund, an open-ended equity scheme. The New Fund Offer price is Rs 10 per unit. 

Investment objective: The investment objective of the scheme is to provide medium to long term capital gains by investing in Shariah compliant equity & equity related instruments.
Options/plans: Growth and dividend (payout, reinvestment & transfer of dividend) options under both regular plan and direct plan. 

Benchmark: S&P BSE 500 Shariah Index 

Entry Load - Not Applicable 

Exit Load -
For exit within one year from the date of allotment -1%
For exit after one year from the date of allotment - Nil 

Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereafter. 

Minimum Target Amount: Rs 10 crore 

Asset Allocation: The scheme shall invest 90-100% in equity and equity related instruments under the shariah compliant universe and up to 10% in cash and money market instruments*. 

* The fund will invest in money market instruments only if they are approved by the Shariah Board. 

The scheme shall not invest in ADR/ GDR/ foreign securities. 

The scheme shall not invest in derivatives. 

The scheme shall not invest in repo in corporate debt 

Fund Manager: Ruchit Mehta

Mutual funds continue buying

Net inflow of Rs 100 crore on 27 May 2014

Mutual funds (MFs) bought shares worth a net Rs 100 crore on Tuesday, 27 May 2014, compared with net inflow of Rs 409.50 crore on Monday, 26 May 2014. 

The net inflow of Rs 100 crore on Tuesday, 27 May 2014, was a result of gross purchases of Rs 703 crore and gross sales of Rs 603 crore. The S&P BSE Sensex had shed 167.37 points or 0.68% to settle at 24,549.51 on that day, its lowest closing level since 22 May 2014. 

Mutual funds have sold shares worth a net Rs 568.40 crore in this month so far (till 27 May 2014).

RBI raises forward forex contracts limit for importers

Importers can book forward contracts up to 50% of the eligible limit compared to 25% currently 

With a view to providing importers with greater flexibility in hedging facility, the Reserve Bank of India has decided to allow importers to book forward contracts, under the past performance route, up to 50% of the eligible limit. 

Importers who have already booked contracts up to previous limit of 25% in the current financial year shall be eligible for difference arising out of the enhanced limits. All other operational guidelines, terms and conditions shall apply mutatis mutandis. 

Under the extant guidelines relating to hedging of currency risk of probable exposures based on past performance, resident importers are allowed to book contracts up to 25% of the eligible limit. The eligible limit is computed as the average of the previous three financial years import turnover or the previous year's actual import turnover, whichever is higher.

Govt forms SIT to bring back black money

SIT responsible for investigation, initiation of proceedings and prosecution in matters involving unaccounted money 

The Union Cabinet on Tuesday approved constitution of Special Investigating Team (SIT) to implement the decision of the Supreme Court on large amounts of money stashed abroad by evading taxes or generated through unlawful activities. 

The SIT will be headed by Justice M.B. Shah, former Judge of the Supreme Court as Chairman and Justice Arijit Pasayat, former Judge as Vice Chairman. 

The SIT has been charged with the responsibility and duties of investigation, initiation of proceedings and prosecution in cases of Hasan Ali and other matters involving unaccounted money. SIT shall have jurisdiction in the cases where investigations have already commenced or are pending or awaiting to be initiated or have been completed. 

SIT will prepare a comprehensive action plan including creation of necessary institutional structure that could enable the country to fight the battle against unaccounted money. The SIT should report to the court the status of work from time to time.

Gross and Net Market Borrowings are Higher than Previous Year by 1.0 Per Cent and 0.2 Per Cent Respectively

Quarterly Report on Public Debt Management for the Fourth Quarter Of 2013-14 (January-March 2014) 

Since Apr-Jun (Q1) 2010-11, Middle Office (MO) is bringing out a quarterly report on debt management. The current report pertains to the quarter Jan-Mar 2014 (Q4 FY14). 

For fiscal year 2013-14 (FY14), gross and net market borrowings were higher than previous year by 1.0 per cent and 0.2 per cent, respectively. Auctions during Q4 of FY14 were held in accordance with the pre-announced calendar apart from the cancellation of one deferred auction of Rs. 15,000 crore scheduled on January 17, 2013. The weighted average maturity and weighted average yield (cut-off) of dated securities issued during Q4 of FY14 remained stable at 13.77 years (13.91 years in the previous quarter) and 9.07 per cent (8.93 per cent in Q3) respectively. Weighted average yield of issuance during FY14 at 8.41 per cent was marginally higher than 8.36 per cent in the previous fiscal year, while weighted average maturity at 14.23 years was higher than 13.5 years in FY13. The cash position of the Government during Q4 was comfortable and remained in surplus mode during the quarter. 

As budgeted in Union Budget 2013-14, the Government repurchased its Securities through reverse auction for an aggregate amount of Rs. 15,590 crore (face value) during March 2014 to prematurely redeem the Government Stocks by utilizing its surplus cash balances. In addition switching of government securities worth Rs. 31,400 crore from 2014-15 and 2015-16 maturity buckets to longer tenors was also conducted in fourth quarter. 

The total public debt (excluding liabilities under the ‘Public Account') of the Government at end-March 2014 decreased marginally on a quarter-on-quarter (QoQ) basis by 0.1 per cent (provisional) compared with an increase of 3.1 per cent in the previous quarter. Internal debt constituted 91.1 per cent of public debt and marketable securities accounted for 83.3 per cent of total public debt. About 29.8 per cent of outstanding dated securities have a residual maturity of up to 5 years compared with about 30.2 per cent a quarter ago which implies that over the next five years, on an average, less than 6.0 per cent of outstanding stock needs to be rolled over every year. 

In the secondary market, while there was no change in closing levels of 10 year bench mark Government of India security at end-quarter from previous quarter end (8.84 % on March 31, 2014), the yield traded in a range of 8.52% - 8.94% during Q4 of FY 14. Compared to previous quarter, bonds yields marginally moderated over the curve with marginally flattening at the longer end while some steepening in maturities below 10 years. The total volume of Government securities transacted on an outright basis increased by of 18.32 per cent over the preceding quarter, contributed mainly by Central government dated securities. The annualized outright turnover ratio for Central government dated securities for Q4 of FY14 increased to 3.65 from 3.10 during the previous quarter.