Birla Sun Life Mutual Fund launches Birla Sun Life Fixed Term Plan – Series MR (1153 days), a close ended income scheme.

NFO period is from 29 May to 03 June 2015 

Birla Sun Life Mutual Fund has launched a new fund named as Birla Sun Life Fixed Term Plan – Series MR (1153 days), a close ended income scheme. The tenure of the scheme is 1153 days from the date of allotment of units. 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 and close on 03 June 2015. 

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

The scheme offers two options viz. growth and dividend option with Normal Dividend sub-option (Payout Facility) and Quarterly Dividend sub-option (Payout Facility). 

The scheme would invest 80%-100% of assets in debt securities (excluding money market instruments), invest upto 20% of assets in money market instruments with low to medium risk profile and invest upto 20% of 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 scheme during the NFO period. 

Entry and exit load charge will be nil. 

Benchmark Index for the scheme is CRISIL Composite Bond Fund Index. 

The fund manager of the scheme will be Kaustubh Gupta. 

Canara Robeco Mutual Fund Announces Change In Fund Management Responsibilities

With immediate effect

Canara Robeco Mutual Fund has announced change in the fund management responsibilities of Canara Robeco Asset Management Company, with immediate effect. Accordingly, Yogesh Patil is the fund manager of Canara Robeco Infrastructure Fund.

IDFC Fixed Term Plan-Series 97 Announces Dividend

Record date for dividend is 04 June 2015

IDFC Mutual Fund has announced 04 June 2015 as the record date for declaration of dividend under the Regular plan-Quarterly Dividend Option (Payout), Regular plan-Periodic Dividend Option (Payout), Direct Plan-Half Yearly Dividend Option (Payout) and Direct Plan-Quarterly Dividend Option (Payout) of IDFC Fixed Term Plan-Series 97. 

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

Tata Short Term Bond Fund Announces Change In Exit Load Structure

With effect from 01 June 2015

Tata Mutual Fund has announced change in exit load structure under all plans & options of Tata Short Term Bond Fund, with effect from 01 June 2015. 

Accordingly, if units are redeemed on or before expiry of 30 days from the date of allotment, the exit load will be 0.50% of NAV. 

BOI AXA Equity Fund Announces Change In exit load structure under two schemes

With effect from 01 June 2015 

BOI AXA Mutual Fund has announced change in exit load structure under the following schemes, with effect from 01 June 2015. 

Accordingly, the revised exit load will be: 

BOI AXA Equity Fund: 

If redeemed within 1 year from the date of allotment, the exit load will be 1% 

BOI AXA Short Term Income Fund: 

If redeemed within 6 months from the date of allotment, the exit load will be 1%

L&T Mutual Fund Announces Change in exit load structure under three schemes

With effect from 01 June 2015 

L&T Mutual Fund has announced change in exit load structure under L&T India Large Cap Fund, L&T India Value Fund and L&T Infrastructure Fund, with effect from 01 June 2015.
Accordingly, the revised exit load will be: 

Within 1 year from the date of allotment or purchase applying first in first out basis – 1% of applicable NAV 

After 1 years from the date of allotment or purchase applying first in first out basis - Nil.

Religare Invesco Arbitrage Fund Announces Dividend

Record date for dividend is 04 June 2015 

Religare Invesco Mutual Fund has announced 04 June 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option and direct plan-dividend option of Religare Invesco Arbitrage Fund, an open ended equity scheme. 

The quantum of dividend will be Re 0.09 per unit under each plan / option.

ICICI Prudential Fixed Maturity Plan – Series 72 – 500 Days Plan E Announces Dividend

Record date for dividend is 04 June 2015 

ICICI Prudential Mutual Fund has announced 04 June 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under the regular plan-dividend option of ICICI Prudential Fixed Maturity Plan – Series 72 – 500 Days Plan E. 

The recommended rate of dividend will be Re 0.05 per unit as on the record date.

ICICI Prudential Multiple Yield Fund – Series 5 – 1100 Days Plan B Announces Dividend

Record date for dividend is 04 June 2015 

ICICI Prudential Mutual Fund has announced 04 June 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under the direct plan-dividend option & regular plan-dividend option of ICICI Prudential Multiple Yield Fund – Series 5 – 1100 Days Plan B. 

The recommended rate of dividend will be Re 0.05 per unit under each plan as on the record date.

Canara Robeco Mutual Fund Announces Change In The Constitution of Board of Directorship

With effect from 01 June 2015 

Canara Robeco Mutual Fund has announced that G.Subramania Iyer has been appointed as an Associate Director on the Board of Directors of Canara Robeco Asset Management Company, with effect from 01 June 2015. He is aged 57 years and holds M.Sc. (Agrl), DCA as his educational qualification. 

HDFC MF Announces Dividend Under two schemes

Record date for dividend is 03 June 2015 

HDFC Mutual Fund has announced 03 June 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under regular option – normal dividend option, direct option – normal dividend option, regular option-quarterly dividend option and direct option – quarterly dividend option of HDFC FMP 531D December 2013 (1) and regular option – normal dividend option, direct option – normal dividend option, regular option-quarterly dividend option and direct option – quarterly dividend option of HDFC FMP 366D May 2014 (2). 

The amount of dividend will be distributable surplus, as reduced by applicable statutory levy.

Tata Balanced Fund Announces Dividend

Record date for dividend is 03 June 2015 

Tata Mutual Fund has announced 03 June 2015 as the record date for declaration of dividend under the monthly dividend option of Plan A and Direct Plan of Tata Balanced Fund. 

The amount of dividend will be Rs 0.48 per unit under each plan on the face value of Rs 10 per unit.

UTI Fixed Term Income Fund Series XVIII-XV (366 days) Announces Dividend

Record date for dividend is 03 June 2015 

UTI Mutual Fund has announced 03 June 2015 as the record date for declaration of dividend under UTI Fixed Term Income Fund Series XVIII-XV (366 days). 

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

Bond yields ease

New 10-year G-sec Paper yield closes at 7.64% 

The yield on 10-year benchmark federal paper, 8.40% GS 2024, eased by 03 basis points to close at 7.82% compared with 7.85% close in the previous trading session and the new 10-year benchmark federal paper, 7.72% GS 2025, yield also eased by 01 bp to end at 7.64%, lower than its 7.65% close in the previous trading session. The total trading volume on central bank's gilts trading platform stood at Rs 51,975 crore. 

Bond yield eased further on expectations the central bank would cut rates at its policy meeting due on Tuesday. 

The weighted average rate in the overnight call money eased slightly to 7.56% compared with 7.57% in previous session. The call money rate hovered in the range of 6.00% to 7.90% with the volume of Rs 15,525.20 crore. 

RBI releases Draft Guidelines on Net Stable Funding Ratio for Banks

The Reserve Bank of India has released on its website draft Guidelines on Net Stable Funding Ratio (NSFR) under Basel III Framework on Liquidity Standards for banks. It has requested for comments on these guidelines by email at the earliest, but not later than June 26, 2015. The Reserve Bank had proposed to issue the guidelines in the First Bi-monthly Monetary Policy Statement, 2015-16 announced on April 7, 2015. 

The objective of NSFR is to ensure that banks maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities. A sustainable funding structure is intended to reduce the probability of erosion of a bank's liquidity position due to disruptions in its regular sources of funding that would increase the risk of its failure and potentially lead to broader systemic stress. The NSFR limits overreliance on short-term wholesale funding, encourages better assessment of funding risk across all on- and off-balance sheet items, and promotes funding stability. The Reserve Bank proposes to make NSFR applicable to banks in India from January 1, 2018. 

The Background 

In the backdrop of the global financial crisis that started in 2007, the Basel Committee on Banking Supervision (BCBS) proposed certain reforms to strengthen global capital and liquidity regulations with the objective of promoting a more resilient banking sector. In this regard, the Basel III rules text on liquidity – “Basel III: International framework for liquidity risk measurement, standards and monitoring” was issued in December 2010 which presented the details of global regulatory standards on liquidity. Two minimum standards, viz., Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for funding liquidity were prescribed by the Basel Committee for achieving two separate but complementary objectives. 

Following a rigorous review to address any unintended consequences for financial market functioning and the economy, and on improving its design with respect to several key issues, notably (i) the impact on retail business activities; (ii) the treatment of short-term matched funding of assets and liabilities; and (iii) analysis of sub-one year buckets for both assets and liabilities, the BCBS published the final rules text on NSFR in October 2014. 

These draft guidelines issued by the Reserve Bank are based on the final rules published by BCBS and take into account the Indian conditions. 

FPIs remain net sellers in secondary equity markets

Net outflow of Rs 758.36 crore into secondary equity markets on 28 May 2015 

Foreign portfolio investors (FPIs) bought shares worth a net Rs 170.32 crore yesterday, 28 May 2015, as against their outflow of Rs 519.78 crore during the preceding trading session on 27 May 2015. The inflow at the net level yesterday, 28 May 2015, was due to substantial inflow into the category 'primary market & others'. FPIs remained net sellers in the secondary equity markets yesterday, 28 May 2015. 

The net inflow of Rs 170.32 crore on 28 May 2015 was a result of gross purchases of Rs 7790.98 crore and gross sales of Rs 7620.66 crore. There was a net outflow of Rs 758.36 crore from the secondary equity market on 28 May 2015 which was a result of gross purchases of Rs 6844.03 crore and gross sales of Rs 7602.39 crore. The S&P BSE Sensex had lost 57.95 points or 0.21% to settle at 27,506.71 on that day, its lowest closing level since 15 May 2015. 

There was a net inflow of Rs 928.68 crore into the category 'primary market & others' on 28 May 2015, which was a result of gross purchases of Rs 946.95 crore and gross sales of Rs 18.27 crore. 

FPIs have sold shares worth a net Rs 5768.48 crore in this month so far (till 28 May 2015). They have sold shares worth a net Rs 9149.27 crore into the secondary equity markets in this month so far (till 28 May 2015). FPIs had bought shares worth a net Rs 11720.93 crore last month. They had bought shares worth a net Rs 11365.79 crore from the secondary markets last month. 

FPIs have bought shares worth a net Rs 42425.10 crore in calendar year 2015 so far (till 28 May 2015). They have bought shares worth a net Rs 30980.40 crore from the secondary equity markets in calendar year 2015 so far (till 28 May 2015). FPIs had bought shares worth a net Rs 97055.90 crore in the calendar year 2014. They had bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

RBI advises banks to create awareness among their borrowers for hedging agricultural commodity price risk

The Reserve Bank of India advised banks to encourage large agricultural borrowers such as agricultural commodity processors, traders, millers, aggregators, etc., to hedge their risks related to agricultural commodity prices. Banks provide a number of credit facilities to customers engaged in activities related to agriculture. Volatility in agricultural commodity prices may negatively impact such borrowers and the banks. Hence, hedging of agri-commodity price risk will be beneficial to both the borrowers and the banks. 

At present, a number of hedging tools, including derivatives, are available in the Indian market. However, these tools are not being used extensively due to lack of awareness of the products or due to perceived complexity of these products. The Reserve Bank has, therefore, advised banks to educate their customers about the suitability and appropriateness of using various hedging tools so that they can take an informed decision. This will also reduce the scope of mis-selling of derivatives. Banks have to keep the sophistication, understanding, scale of operation and requirements of their agri-borrowers in mind while advising them on the availability and use of these instruments. 

Rupee closes marginally lower

At 63.81/82 

Rupee closed lower at 63.81/82 per dollar on Friday (29 May 2015), versus its previous close of 63.80/81 per dollar.

Asia Pacific Market: Stocks mixed ahead of Greek bailout talks, US data

Asia Pacific share market closed mixed on Friday, 29 May 2015, amid ongoing uncertainty over the state of Greek bailout talks. 

Mixed signals from the ongoing Greek debt talks kept investors to remain cautious. Cash-strapped Athens said it aims to reach an agreement with lenders by Sunday, but its creditors did not share its optimism. Euro zone official said Greece won't receive any money if it does not agree on an outline of a reforms deal. 

Risk sentiments were also muted ahead of U.S. economic data including revised gross domestic product data out later Friday to see if the economy actually contracted in the January-March quarter. 

Concerns about a likely U.S. interest rate hike later this year and weak economic numbers of Asian countries dented sentiment in the region this week.

Among Asian bourses
 
Nikkei holds 15-years high level
 
Japanese share market extended its winning streak to the 11th straight session, on the back of yen hovering near 12-year low versus the dollar, with metal producers and energy explorers led the advance. Market gain was, however, marginal after official data showing Japan's inflation slid back to zero. The Nikkei Stock Average rose 11.69 points, or 0.1%, to end at 20563.15, the highest level since April 2000, and closing the month with a gain of 5.3%. The Topix index of all Tokyo Stock Exchange First Section issues advanced 0.05%, or 0.89 point, to 1673.65. 

The yen hovered near a 12-year low versus the dollar on expectations the US Federal Reserve will raise interest rates later this year. The dollar was at 123.88 yen, compared with 123.95 yen late Thursday in New York. The dollar's upside was already capped, following comments by Japanese finance minister Taro Aso, who told reporters at a Group of Seven meeting in Germany that recent yen moves were rough. 

Shares of Disco lost 2.8% after a SMBC Nikko Securities downgrade its rating for precision industrial machinery maker to Neutral from Outperform, citing shares' sharp gains in 2015 and the likelihood of an order slowdown. 

Yahoo Japan surged 12% following a Nikkei business daily report that the portal will team with e-commerce giant Alibaba to expand into the Chinese market, a rich but difficult market where many foreign firms have tried and failed to access. 

Government data released Friday showed that on-year growth in the core consumer price index--stripping out volatile fresh-food prices and the lingering effects of an increase in the sales tax last year--slowed to zero in April from a 0.2% rise the previous month. 

The Japan Automobile Manufacturers Association said on Friday that production of cars, trucks and buses in Japan declined 7.5% on year in April, marking the 10th consecutive month of falls. Vehicle output fell to 713,155 vehicles in April from 770,591 vehicles in the same month a year earlier. Domestic vehicle demand totalled 319,482, down 7.5%. 

Australia market renounces on bargain buying
 
The Australian share market closed higher for the first time in three consecutive days, as investors snapped up beaten-down stocks, with lenders and resource-related stocks leading rally. The benchmark S&P/ASX 200 Index added 64.10 points, or 1.12%, to 5777.20, while the broader All Ordinaries Index jumped 60.30 points, or 1.06%, to 5774.90. Market turnover was relatively healthy, with 2.8 billion shares changing hands worth of A$7.5 billion.

For the week, the All Ordinaries was up 1.9% while the S&P/ASX 200 index climbed 2%.
Shares of materials and resources companies closed higher. BHP Billiton rose 1.3% at A$29.59 and Rio Tinto added 1% to A$58.20, but Fortescue Metals Group dropped 0.4% to A$2.42. 

Banks and financial stocks were also higher, with Commonwealth Bank of Australia gaining 1.9% to A$85.09, Westpac Banking Corp rising 1.3% to A$33.56, National Australia Bank adding 2.6% to A$34.32, and ANZ Banking Group climbing 1.4% to A$33.19. 

Drug developer Alchemia slumped 53% to a record low of A$0.035 Despite new housing sales for April hitting a 10 year high, property stocks such as Novion Property and Federation Centres lurked mainly in the red. 

China stocks close down on liquidity woes
 
Mainland China share market closed lower in volatile trade, on concerns over liquidity squeeze and stricter requirements for margin trading. The Shanghai Composite Index closed 8.52 points, or 0.18%, to finish at 4611.74, after briefly sliding more than 4% at early trade. The CSI300 index added 6.82 points, or 0.14%, to 4840.83. The Shanghai Composite gauge tumbled 6.5% on Thursday after brokerages tightened lending restrictions and the central bank drained cash from the financial system. The Shanghai Composite lost 1% for the week. 

Investor jitters over tighter market liquidity renewed as subscriptions for 23 initial public offerings due next week which expected to lock up nearly 5 trillion yuan of liquidity. 

Meanwhile, concerns about stricter requirements for margin trading resumed after China's regulators asked lenders to report their investment in stocks. 

Total of 5 out of 10 SSE industry groups ended down, with energy issue being top loser, with fall of 1.2%, followed by utilities down 0.5%, financials down 0.5%, consumer staples down 0.3%, and industrials down 0.2%. On the upside- Telecommunication services issue rose 4.5%, healthcare 2.9%, information technology 2.6%, materials 0.5% and consumer discretionary 0.2%. 

HSI closes nudge lower
 
The Hong Kong stock market finished nudge lower in seesaw trading, after yesterday's 626-point drop, triggered by a reported move by China Central Huijin Investment, a unit of China's sovereign-wealth fund, that the company had recently sold some mainland-listed shares and Exchange Traded Funds (ETF) in China's four biggest state-owned banks and other listed financial institutions. The Hang Seng Index ended down 30.12 points or 0.11% to 27424.19, off an intra-day high of 27604.27 and day low of 27255.89. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 79.19 points, or 0.56%, to 14103.81 points. Turnover reduced to HK$204.77 billion from HK$206 billion on Thursday. 

Hong Kong listed major state-owned Chinese banks remained weak, with Agricultural Bank of China sagged 0.7%, Bank of China shed 0.8%, while China Construction Bank Corp rose 1.8%, and Industrial and Commercial Bank of China traded 0.3% higher. 

Brokerage firms were mixed after heavy losses in the previous day. China Everbright pulled back 1.6%, while Guotai Junan International Holdings advanced 2.6% and Haitong Securities Co. recovered 1.2%. 

China Merchants (00144) put on 2.86% after UBS raised its target price to HK$41.
Evergrande (03333) plunged 26.92% to HK$5.05 after it announced shares placing. 

Sensex ends on a firm note
 
Telecom, cement and pharma stocks led rally as key benchmark indices surged on the last trading session of the week. The market breadth indicating the overall health of the market was positive. The Sensex garnered 321.73 points or 1.17% to settle at 27,828.44. The 50-unit CNX Nifty rose 114.65 points or 1.38% to settle at 8,433.65. 

Foreign portfolio investors sold shares worth a net Rs 758.36 crore into the secondary equity markets yesterday, 28 May 2015, as per data from the depositories. Domestic institutional investors (DIIs) bought shares worth a net Rs 683.29 crore yesterday, 28 May 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.1% to 9701.07. South Korea's KOSPI added 0.2% to 2114.80. New Zealand's NZX50 grew 1.2% to 5844.95. Singapore's Straits Times index fell 0.8% to 3392.11. Malaysia's KLCI dropped 0.5% to 1747.52. Indonesia's Jakarta Composite index fell 0.4% to 5216.38.

Mutual funds step up buying

Net purchases of Rs 790.40 crore on 28 May 2015

Mutual funds bought shares worth Rs 790.40 crore yesterday, 28 May 2015, compared with their net inflow of Rs 455.40 crore during the preceding trading session on 27 May 2015. 

The net inflow of Rs 790.40 crore on 28 May 2015 was a result of gross purchases of Rs 2087 crore and gross sales of Rs 1296.70 crore. On that day, the S&P BSE Sensex fell 57.95 points or 0.21% to settle at 27,506.71, its lowest closing level since 15 May 2015. 

Mutual funds have purchased shares worth a net Rs 4620.80 crore in this month so far (till 28 May 2015). They had bought shares worth a net Rs 9243.90 crore last month. 

Storage Status of 91 Important Reservoirs was 27% of total storage capacity of the Country as on May 28, 2015

The Water storage available in 91 important reservoirs of the country as on May 28, 2015 was 43.14 BCM which is 27% of total storage capacity of these reservoirs. This storage is 97% of the storage of corresponding period of last year and 136% of storage of average of last ten years. The present storage position during current year is less than the storage position of last year but is better than the storage of average of last ten years. 

Central Water Commission monitors live storage status of these reservoirs on weekly basis. These reservoirs include 37 reservoirs having hydropower benefit with installed capacity of more than 60 MW. The total storage capacity of these reservoirs is 157.799 BCM which is about 62% of the storage capacity of 253.388 BCM which is estimated to have been created in the country. 

REGION WISE STORAGE STATUS: 
 
NORTHERN REGION 

The northern region includes States of Himachal Pradesh, Punjab and Rajasthan. There are 6 reservoirs in this region having total storage capacity of 18.01 BCM. The total storage available in these reservoirs is 7.63 BCM which is 42% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 38% and average storage of last ten years during corresponding period was 28% of storage capacity of these reservoirs. Thus, storage during current year is better than the corresponding period of last year and is also better than the average storage of last ten years during the corresponding period. 

EASTERN REGION 

The Eastern region includes States of Jharkhand, Odisha, West Bengal and Tripura. There are 15 reservoirs in this region having total storage capacity of 18.83 BCM. The total storage available in these reservoirs is 6.31 BCM which is 34% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 37% and average storage of last ten years during corresponding period was 19% of storage capacity of these reservoirs. Thus, storage during current year is less than the corresponding period of last year but is better than the average storage of last ten years during the corresponding period. 

WESTERN REGION 

The Western region includes States of Gujarat and Maharashtra. There are 27 reservoirs in this region having total live storage capacity of 27.07 BCM. The total live storage available in these reservoirs is 6.32 BCM which is 23% of total live storage capacity of these reservoirs. The storage during corresponding period of last year was 30% and average storage of last ten years during corresponding period was 25% of storage capacity of these reservoirs. Thus, storage during current year is less than the storage of last year and also less than the average storage of last ten years. 

CENTRAL REGION

The Central region includes States of Uttar Pradesh, Uttarakhand, Madhya Pradesh and Chhattisgarh. There are 12 reservoirs in this region having total storage capacity of 42.30BCM. The total storage available in these reservoirs is 14.14 BCM which is 33% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 37% and average storage of last ten years during corresponding period was 17% of storage capacity of these reservoirs. Thus, storage during current year is less than the storage of last year but better than the average storage of last ten years. 

SOUTHERN REGION 

The Southern region includes States of Andhra Pradesh, Telangana, (two combined project in both states) Karnataka, Kerala and Tamil Nadu. There are 31 reservoirs in this region having total storage capacity of 51.59 BCM. The total storage available in these reservoirs is 8.74 BCM which is 17% of total storage capacity of these reservoirs. The storage during corresponding period of last year was 14% and average storage of last ten years during corresponding period was 18% of storage capacity of these reservoirs. Thus, storage during current year is better than the corresponding period of last year but is less than the average storage of last ten years during the corresponding period. 

States having better storage than last year for corresponding period are Himachal Pradesh, Punjab, Uttarakhand, Karnataka, Kerala and Tamil Nadu. States having lesser storage than last year for corresponding period are Rajasthan, Jharkhand, Odisha, West Bengal, Tripura, Gujarat, Maharashtra, Uttar Pradesh, Madhya Pradesh, Chattisgarh, Andhra Pradesh, Telangana, Andhra Pradesh and Telangana. 

SBI Debt Fund Series B – 19 (1100 days) Floats On

NFO period is from 03 June to 08 June 2015 

SBI Mutual Fund has unveiled a new fund named as SBI Debt Fund Series B – 19, a close ended debt scheme. The tenure of the scheme is 1100 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 03 June and close on 08 June 2015. 

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

The scheme offers regular and direct plan. Both the plans will have growth and dividend option. 

The scheme will invest 60%-100% of assets in debt and invest upto 40% of assets in money market securities with low to medium risk profile. Exposure to domestic securitized debt may be to the extent of 40% of the net assets. 

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

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

The units of the scheme will be listed on NSE in order to provide liquidity. 

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

The fund manager of the scheme is Rajeev Radhakrishnan. 

Canara Robeco MF Announces Change In Exit Load Structure Under Its Schemes

Canara Robeco Mutual Fund has announced change in exit load under Canara Robeco Savings Plus Fund, with effect from 28 May 2015 and Canara Robeco Short Term Fund & Canara Robeco Yield Advantage Fund, with effect from 01 June 2015. 

Accordingly the revised exit load will be: 

Canara Robeco Savings Plus Fund: Nil. 

Canara Robeco Short Term Fund: 

If redeemed / switched out within 60 days from the date of allotment: 0.25%
If redeemed / switched out after 60 days from the date of allotment: Nil. 

Canara Robeco Yield Advantage Fund: 

If redeemed / switched out within 180 days from the date of allotment: 0.50%
If redeemed / switched out after 180 days from the date of allotment: Nil.

Reliance Fixed Horizon Fund-XXVI-Series 25 Announces Dividend

Record date for dividend is 02 June 2015

Reliance Mutual Fund has announced 02 June 2015 as the record date for declaration of dividend under the dividend payout option & direct plan-dividend payout option of Reliance Fixed Horizon Fund-XXVI-Series 25, a close ended income scheme. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be entire distributable surplus available in the scheme as on the record date. 

Reliance Mutual Fund has announced roll over of Reliance Fixed Horizon Fund-XXVI-Series 25. The scheme was launched on 21 May 2014. The units of the scheme were allotted on 29 May 2014. The scheme is scheduled to mature on 02 June 2015. 

Pursuant to clause 33(4) of SEBI Regulations, 1996, the management has decided to rollover / extend the maturity of the scheme for 783 days. Subsequent to the rollover, the scheme shall mature on 24 July 2017. 

HDFC MF Announces Dividend Under Two Schemes

Record date for dividend is 02 June 2015

HDFC Mutual Fund has announced 02 June 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under regular option – normal dividend option, direct option – normal dividend option, regular option-quarterly dividend option and direct option – quarterly dividend option of HDFC FMP 540D December 2013 (1) and regular option – normal dividend option, direct option – normal dividend option, regular option-quarterly dividend option and direct option – quarterly dividend option of HDFC FMP 371D May 2014 (1). 

The amount of dividend will be distributable surplus, as reduced by applicable statutory levy.

ICICI Prudential Interval Fund II- Quarterly Interval Plan B Announces Dividend

Record date for dividend is 02 June 2015 

ICICI Prudential Mutual Fund has announced 02 June 2015 as the record date for declaration of dividend under the dividend option of ICICI Prudential Interval Fund II- Quarterly Interval Plan B. 

The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

Retail Dividend: 0.1747 

Regular Plan – Dividend: 0.1746 

Direct Plan – Dividend: 0.1769 

Regular Plan - Quarterly Dividend Payout: 0.1746

ICICI Prudential Capital Protection Oriented Fund II – Series IX – 36 Months Plan Announces Dividend

Record date for dividend is 02 June 2015

 ICICI Prudential Mutual Fund has announced 02 June 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under dividend option of ICICI Prudential Capital Protection Oriented Fund II – Series IX – 36 Months Plan. 

The amount of dividend will be Re 0.05 per unit as on the record date.

Birla Sun Life Fixed Term Plan – Series MQ (1159 Days) Announces Extension of NFO period

The NFO will now close on 11 June 2015

Birla Sun Life Mutual Fund has announced the extension of the closing date for the New Fund Offer (NFO) of Birla Sun Life Fixed Term Plan – Series MQ (1159 Days). 

The NFO has been extended by 14 days and the revised closing day is 11 June 2015. 

Rupee shows upward trend

At 63.80/81 per dollar 

Rupee gained to close at 63.80/81 per dollar on Thursday (28 May 2015), versus its previous close of 64.01/02 per dollar.

FPIs in selling mode

Net outflow of Rs 519.78 crore on 27 May 2015 

Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 519.78 crore yesterday, 27 May 2015, as against their purchases of Rs 168.43 crore during the preceding trading session on 26 May 2015. 

The net outflow of Rs 519.78 crore on 27 May 2015 was a result of gross purchases of Rs 5968.82 crore and gross sales of Rs 3916.95 crore. There was a net outflow of Rs 863.95 crore from the secondary equity market on 27 May 2015 which was a result of gross purchases of Rs 4085.29 crore and gross sales of Rs 3869.82 crore. The S&P BSE Sensex had risen 33.25 points or 0.12% to settle at 27,564.66 on that day, its highest closing level since 25 May 2015. 

There was a net inflow of Rs 344.17 crore into the category 'primary market & others' on 27 May 2015, which was a result of gross purchases of Rs 346 crore and gross sales of Rs 1.83 crore. 

FPIs have sold shares worth a net Rs 5938.80 crore in this month so far (till 27 May 2015). They have sold shares worth a net Rs 8390.91 crore into the secondary equity markets in this month so far (till 27 May 2015). FPIs had bought shares worth a net Rs 11720.93 crore last month. They had bought shares worth a net Rs 11365.79 crore from the secondary markets last month. 

FPIs have bought shares worth a net Rs 42254.80 crore in calendar year 2015 so far (till 27 May 2015). They have bought shares worth a net Rs 31738.80 crore from the secondary equity markets in calendar year 2015 so far (till 27 May 2015). FPIs had bought shares worth a net Rs 97055.90 crore in the calendar year 2014. They had bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

Asia Pacific Market: Stocks drops on China margin curbs, Greece default woes

Asia Pacific share market closed mostly down on Thursday, 28 May 2015, as fears over tighter requirements on margin financing in China, an expected Federal Reserve interest rate rise sometime this year, and risk of Greece debt default ignited risk-off sentiment. The MSCI Asia Pacific Index fell 0.3% to 151.47. 

Brokerages across China are tightening rules for lending to stock investors to try to limit the risks from any market bust. The Shanghai Composite Index approached 5000 for the first time since 2008 this week, partly fuelled by individual investors leveraging their bets with borrowed money. Margin lending by brokerages exceeded 2 trillion yuan ($322 billion) as of May 27, five times the level of a year earlier. 

Greece's embattled economy faces another crucial deadline. On June 5 the Greek government is scheduled to repay 300 million euros ($329 million) to the International Monetary Fund, the first of four payments totalling $1.76 billion. Greece is thought to have enough funds to make the first loan payment. But concerns are rising that, barring an agreement with creditors, it will default on its other obligations coming due next month. 

The sign of US economy strengthening renewed hopes of the Federal Reserve prepares to raise interest rates in the autumn. The members of the Fed's policy board are locked in a debate on when will be the right time to raise rates, which have been near zero since December 2008. At its last meeting, the Fed removed all calendar references in its forward guidance and said that recent economic weakness might be “transitory” in nature. This means that bank is now entirely data dependent and a rate increase could happen at any future meeting. 

Among Asian bourses
 
Nikkei touches fresh 15-years high 
 
Japanese share market closed the session higher, extending its gains to a 10th day, on the back of yen depreciation to fresh multiyear lows against major currencies and positive lead from Wall Street overnight. The Nikkei Stock Average ended up 0.39%, or 78.88 points, to 20551.46, after climbing as high as 20655.33, the highest since April 2000. The Topix index of all Tokyo Stock Exchange First Section issues advanced 0.69%, or 11.43 points, to 1672.76. 

Shares of currency sensitive exporters mostly higher, on earnings optimism after the US dollar hit its highest against the yen since December 2002. The yen fell to a 12-year low versus the dollar on expectations the US Federal Reserve will raise interest rates later this year. Japan's currency touched 124.30 per dollar, the weakest since December 2002, before trading little changed at 123.73 at the Thursday's close. A weak yen is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated.
Among globally exposed blue chips, TDK Corp rose 2.1%, Japan Display Inc added 1.8%, and Renesas Electronics Corp rose 0.2%. Nissan Motor Co climbed 1.4% and Toyota Motor Corp improved by 1.7%. Shares of Sony Corp traded 0.2% higher after the company announced the purchase of U.S. start-up Optical Archive Inc. 

Retailers were mostly down, after April data showed a robust 5% on year gain for retail sales, but up slight 0.4% on month, suggesting that consumer appetites are recovering slowly. Among the largest names, Fast Retailing Co. moved 0.1% higher, but Isetan Mitsukoshi declined 0.1%, but J. Front Retailing Co. lost 0.5%, and e-commerce major Rakuten Inc. fell 2.2%. 

Ain Pharmaciez soared 12% after the drugstore chain forecasted a 17% increase in its operating profit to 13.4 billion yen for the year through April 2016, and plans to pay 40 yen per share for dividends, up from 30 yen per share. 

Australia market extends loss after capital expenditure data
 
The Australian share market declined for second straight day, as risk off selling triggered after the release of worse than expected capital expenditure figures, with material and resource-related stocks leading downfall. The benchmark S&P/ASX 200 Index declined 12.20 points, or 0.21%, to 5713.10, while the broader All Ordinaries Index fell 9.60 points, or 0.17%, to 5714.60. Market turnover was relatively healthy, with 1.62 billion shares changing hands worth of A$3.41 billion. 

The Australian Bureau of Statistics business investment data released on Thursday showed companies expect to cut investment in the fiscal year starting July 1 by 24.6% compared with their expectations, a year ago, for the previous fiscal year, as the downturn in mining accelerates and creates a stiff headwind for growth. Meanwhile, actual business investment in buildings and equipment fell by 4.4% in the first quarter from the final three months of 2014. Investment in the mining sector in the coming fiscal year is estimated to be 34.9% lower than the forecast, a year ago, for the current fiscal year. 

Shares of materials and resources companies closed down. BHP Billiton closed 0.5% down at A$29.20. South32 tumbled 3.1% to A$2.18 as Liberum Capital started its coverage of the miner's London shares with a sell rating. Rio Tinto rose 0.6% to A$57.65 and Fortescue Metals Group added 3% to A$2.43. BlueScope Steel fell 3.7% to A$3.41 after a CLSA downgraded its ratings for the shares. 

Woolworths rose 0.3% to A$28.01 as the retail giant signed up Telstra to help it offer mobile services direct to its customers. 

Testing and analytical laboratory services provider ALS dropped 6.8% to A$6.10 after it reported a net loss of A$174.5 million for the year to March 2015, compared to a net profit of A$154.4 million in 2014. 

Shanghai Composite tumbles 6.5% on liquidity woes
 
Mainland China share market closed steep lower, snapping seven days of winning streak, on concerns over liquidity squeeze and stricter requirements for margin trading. The Shanghai Composite Index wiped out 321.45 points, or 6.5%, to finish at 4620.27, its second-worst session of 2015, or its 10th worst session in 15 years, on record turnover of 1.2 trillion yuan. The CSI300 index declined 347.52 points, or 6.71%, to 4834.01. 

Investor jitters over tighter market liquidity renewed as subscriptions for 23 initial public offerings due next week which expected to lock up 4.9 trillion yuan ($790 billion) of liquidity. Meanwhile, concerns about stricter requirements for margin trading resumed after China's regulators asked lenders to report their investment in stocks. 

All 10 SSE industry gauges declined, with shares of financial, energy and material companies suffered heavy losses. Citic Securities Co plunged 9.4%, Changjiang Securities Co. dropped 9.5% and Guosen Securities Co. tumbled 9.9% after both brokerages increased its margin requirement, the collateral put up by an investor when borrowing. 

Industrial & Commercial Bank of China slid 5% and China Construction Bank Corp. dipped 5.9% after the sovereign investment firm Central Huijin Investment cut its holdings in ICBC's Shanghai-listed shares to 45.89% from 46%, and in Construction Bank to 2.14% from 5.05%. PetroChina Co slid 8.6% on profit booking after 9.7% rally in previous five sessions. Jiangxi Copper Co. slumped 6.2%. Poly Real Estate Group Co. led declines for developers, plunging 8.5%. 

HSI sinks 2.23%
 
The Hong Kong stock market finished steep down, as investors rushed to sell on catching drop in Mainland China market after brokerage firms' tightened margin trading requirements for clients. The benchmark index opened up 81 points but reversed gains and saw its loss widened to over 800 points at one stage to 27,242. The Hang Seng Index ended down 626.90 points or 2.23% to 27454.31, off an intra-day high of 28162.25 and day low of 27242.11. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 518.88 points, or 3.53%, to 14183 points. Turnover increased to HK$206.05 billion from HK$157.5 billion on Wednesday. 

Hong Kong top-weighted index component shares were lower, with China Mobile L falling 2.1%, while Tencent Holdings gave up 1.7% and HSBC Holdings traded 0.9% lower. 

Hong Kong bourse listed Chinese securities firms suffered heavy losses after several brokers tightened up their margin-financing requirements, including increasing the amount of cash clients must put down for their deposits. China Everbright slid 3.2%, Southwest Securities International lost 3.9%, and Guotai Junan International Holdings fell 4.5%. 

Shares of realty players were down, with Sunac China Holdings stocks leading downfall, with drop of 5.7%, after Chinese property developer has dropped its proposed acquisition of struggling Chinese property company Kaisa Group Holdings as conditions for the takeover reportedly weren't met. Among other property stocks, China Overseas Land & Investment slipped 2.9%, China Resources Land fell 2.7%, and Sino-Ocean Land Holdings dropped 3.8%. 

Sensex registers small losses
 
Indian stock market ended marginally in the red in a volatile session marked by the expiry of monthly derivatives contracts, even as growing concerns over lacklustre corporate earnings hurt the sentiment. Weak global cues too dampened the domestic sentiment. The 30-share BSE index Sensex provisionally ended lower by 57.95 points or 0.21% at 27,506.71 and the 50-share NSE index Nifty ended down by 15.6 points or 0.19% at 8,319. 

Foreign portfolio investors sold Indian shares worth a net Rs 934.98 crore yesterday, 27 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 594.03 crore yesterday, 27 May 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index grew 0.2% to 9712.84. South Korea's KOSPI added 0.16% to 2110.89. New Zealand's NZX50 grew 0.34% to 5777.64. Singapore's Straits Times index fell 0.2% to 3417.

Mutual funds step up buying

Net purchases of Rs 455.40 crore on 27 May 2015

Mutual funds bought shares worth Rs 455.40 crore yesterday, 27 May 2015, compared with their net inflow of Rs 85.60 crore during the preceding trading session on 26 May 2015. 

The net inflow of Rs 455.40 crore on 27 May 2015 was a result of gross purchases of Rs 
1501.40 crore and gross sales of Rs 1046 crore. On that day, the S&P BSE Sensex rose 33.25 points or 0.12% to settle at 27,564.66, its highest closing level since 25 May 2015. 

Mutual funds have purchased shares worth a net Rs 3830.40 crore in this month so far (till 27 May 2015). They had bought shares worth a net Rs 9243.90 crore last month. 

LIC Nomura MF FMP Series 72 (545 Days) Announces Extension of Maturity

The scheme shall mature on 21 November 2016

LIC Nomura Mutual Fund has announced the extension of maturity under LIC Nomura MF FMP Series 72 (545 Days) which is due for maturity on 09 June 2015. 

Accordingly, the revised maturity date will be 21 November 2016 and the revised name of the scheme will be LIC Nomura MF FMP Series 72 (maturity date 21/11/2016). 

ICICI Prudential MF Announces Rollover Under Its Schemes

The schemes shall mature on 27 July 2017 

ICICI Prudential Mutual Fund has announced rollover under the following schemes.
The features of the proposed rollover are as follows: 

ICICI Prudential Fixed Maturity Plan – Series 72 – 500 Days Plan E: 

Existing maturity date: 04 June 2015
Date of rollover: 05 June 2015
Period of rollover: 784 days
Extended maturity date: 27 July 2017 

ICICI Prudential Fixed Maturity Plan – Series 72 – 525 Days Plan B: 

Existing maturity date: 18 June 2015
Date of rollover: 19 June 2015
Period of rollover: 770 days
Extended maturity date: 27 July 2017 

Asset Allocation: 

The schemes will invest 70%-100% of assets in debt instruments including government securities and invest upto 30% of assets in money market instruments with low to medium risk profile. 

HDFC FMP 371D June 2014 (1) Announces Rollover

The scheme shall mature on 01 August 2017 

HDFC Mutual Fund has announced rollover of HDFC FMP 371D June 2014 (1), a plan under HDFC Fixed Maturity Plans-Series 31, a close ended income scheme. 

The features of the proposed rollover are as follows: 

The existing maturity date: 16 June 2015 

Date of rollover: 17 June 2015 

Period of rollover: 777 days 

Extended maturity date: 01 August 2017.

Axis Hybrid Fund Series 24 (1276 days) Floats On

NFO period is from 28 May to 10 June 2015 

Axis Mutual Fund has launched a new fund named as Axis Hybrid Fund Series 24, a 1276 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 28 May and closes subscription on 10 June 2015. 

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 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 for the scheme. 

Benchmark Index for the scheme is Crisil MIP Blended Fund Index. 

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

DWS Hybrid Fixed Term Fund – Series 39 (1100 days) Floats On

NFO period is from 28 May to 11 June 2015 

Deutsche Mutual Fund has unveiled a new fund named as DWS Hybrid Fixed Term Fund – Series 39, a close ended debt fund. The tenure of the scheme is 1100 days from the date of allotment of units. 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 and closes on 11 June 2015. 

The objective of the fund is to generate income by investing in fixed income securities maturing on or before the date of the maturity of the scheme and to generate capital appreciation by investing in equity and equity related instruments. 

The scheme offers regular plan and direct plan. 

The scheme would invest 45% to 95% of assets in debt and debt related instrument with low to medium risk profile, invest upto 30% of assets in money market instruments with low risk profile and invest 5%-25% of assets in equity and equity related instruments including derivatives with high risk profile. 

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

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

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

Benchmark index for the scheme is CRISIL Debt Hybrid 75:25 Index. 

The equity portion of the scheme will be managed by Akash Singhania and debt portion will be managed by Rakesh Suri. 

HDFC Fixed Maturity Plan 1127D May 2015 (1) Floats On

NFO period is from 29 May to 09 June 2015

HDFC Mutual Fund has launched a new plan named as HDFC Fixed Maturity Plan 1127D May 2015 (1), a plan under HDFC Fixed Maturity Plans – Series 33 (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 29 May to 09 June 2015. 

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 three options – growth, dividend and flexi option. The plan would invest 80%-100% of assets in debt instruments & government securities with medium risk profile and invest upto 20% of assets in money market instruments 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 scheme during the NFO period. 

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

Benchmark Index for the plan is CRISIL Composite Bond Fund Index. 

The fund managers of the scheme are Shobhit Mehrotra & Rakesh Vyas (Dedicated fund manager for overseas investments). 

UTI Fixed Term Income Fund Series XVIII-XIV (368 days) Announces Dividend

Record date for dividend is 01 June 2015 

UTI Mutual Fund has announced 01 June 2015 as the record date for declaration of dividend under UTI Fixed Term Income Fund Series XVIII-XIV (368 days). 

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

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

Record date for dividend is 01 June 2015 

UTI Mutual Fund has announced 01 June 2015 as the record date for declaration of dividend under the dividend sub option of UTI Fixed Income Interval Fund-Series II Quarterly Interval Plan – VI. 

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

IDFC Fixed Term Plan – Series 29 Announces Dividend

Record date for dividend is 01 June 2015 

IDFC Mutual Fund has announced 01 June 2015 as the record date for declaration of dividend under the Regular plan-Quarterly Dividend Option (Payout) of IDFC Fixed Term Plan-Series 29. 

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

ICICI Prudential Fixed Maturity Plan – Series 74 – 369 Days Plan L Announces Dividend

Record date for dividend is 01 June 2015 

ICICI Prudential Mutual Fund has announced 01 June 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under the direct plan-dividend option & regular plan-dividend option of ICICI Prudential Fixed Maturity Plan – Series 74 – 369 Days Plan L. 

The recommended rate of dividend will be Re 0.05 per unit under each plan as on the record date.

HDFC FMP 1203D January 2012 (1) Announces Dividend

Record date for dividend is 01 June 2015 

HDFC Mutual Fund has announced 01 June 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under normal dividend option and quarterly dividend option of HDFC FMP 1203D January 2012 (1). 

The amount of dividend will be distributable surplus, as reduced by applicable statutory levy.

Mutual funds continue buying

Net purchases of Rs 85.60 crore on 26 May 2015

Mutual funds bought shares worth Rs 85.60 crore yesterday, 26 May 2015, compared with their net inflow of Rs 118.70 crore during the preceding trading session on 25 May 2015. 

The net inflow of Rs 85.60 crore on 26 May 2015 was a result of gross purchases of Rs 1070.60 crore and gross sales of Rs 985 crore. On that day, the S&P BSE Sensex fell 112.47 points or 0.41% to settle at 27,531.41, its lowest level since 15 May 2015. 

Mutual funds have purchased shares worth a net Rs 3375 crore in this month so far (till 26 May 2015). They had bought shares worth a net Rs 9243.90 crore last month. 

L&T FMP – Series XII - Plan B Floats On

NFO period is from 26 May to 27 May 2015 

L&T Mutual Fund has launched a new fund named as L&T FMP – Series XII - Plan B, a close ended income scheme. The tenure of the scheme is 1300 days. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 26 May and close on 27 May 2015. 

The investment objective of the scheme would be to achieve growth of capital through investments made in a basket of debt / fixed income securities maturing on or before the maturity of the scheme. 

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

The scheme would allocate 90%-100% of assets in debt instruments and invest upto 10% of assets in money market instruments with low to medium risk profile. Debt instruments may include exposure in derivatives, either exchange traded or over the counter which can be upto 50% of net assets as permitted by SEBI regulations. 

The minimum application amount is Rs 10000 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 are not applicable for the scheme. 

The units of the scheme will be listed on NSE on allotment. 

Benchmark Index for the scheme is CRISIL Composite Bond Fund Index. 

The scheme will be managed by Vikram Chopra. 

Rupee Slides

At 64.01/02 per dollar 

Rupee closed lower at 64.01/02 per dollar on Wednesday (27 May 2015), versus its previous close of 63.98/99 per dollar.

FPIs step up buying

Net purchases of Rs 168.43 crore on 26 May 2015 

Foreign portfolio investors (FPIs) bought shares worth a net Rs 168.43 crore yesterday, 26 May 2015, which was higher than their purchases of Rs 3.71 crore during the preceding trading session on 25 May 2015. 

The net inflow of Rs 168.43 crore on 26 May 2015 was a result of gross purchases of Rs 4085.38 crore and gross sales of Rs 3916.95 crore. There was a net inflow of Rs 215.47 crore into the secondary equity market on 26 May 2015 which was a result of gross purchases of Rs 4085.29 crore and gross sales of Rs 3869.82 crore. The S&P BSE Sensex had lost 112.47 points or 0.41% to settle at 27,531.41 on that day, its lowest level since 15 May 2015. 

There was a net outflow of Rs 47.04 crore from the category 'primary market & others' on 26 May 2015, which was a result of gross purchases of Rs 0.09 crore and gross sales of Rs 47.13 crore. 

FPIs have sold shares worth a net Rs 5419.02 crore in this month so far (till 26 May 2015). They have sold shares worth a net Rs 7526.96 crore into the secondary equity markets in this month so far (till 26 May 2015). FPIs had bought shares worth a net Rs 11720.93 crore last month. They had bought shares worth a net Rs 11365.79 crore from the secondary markets last month. 

FPIs have bought shares worth a net Rs 42774.60 crore in calendar year 2015 so far (till 26 May 2015). They have bought shares worth a net Rs 32602.80 crore from the secondary equity markets in calendar year 2015 so far (till 26 May 2015). FPIs had bought shares worth a net Rs 97055.90 crore in the calendar year 2014. They had bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

Asia Pacific Market: Stocks drop on Fed possible rate hike

Asia Pacific share market mostly closed down on Wednesday, 27 May 2015, on renewed concerns about an interest rate hike in the U.S. sooner rather than later. 

Regional bourses commenced trading with back footing after robust U.S. data raised prospects for a U.S. interest rate rise later this year. The improvement in US consumer confidence, home sales and prices, and orders for core industrial goods, highlighted a pick-up in growth in the world's biggest economy after a weak first-quarter. The latest US economic results - along with comments Friday from Federal Reserve chief Janet Yellen that she expects to hike interest rates "at some point this year" - put talk of a rate increase back on the table. The Federal Reserve Bank of Atlanta said on Tuesday that it raised its second-quarter growth forecast for the U.S. economy to 0.8% from 0.7%. 

Among Asian bourses
 
Profit taking weighs on Australia market
 
The Australian share market declined for the first time in five straight sessions, as profit taking triggered across sectors on following a drop for U.S. markets overnight, with financial, industrial, and resource-related stocks leading retreat. The benchmark S&P/ASX 200 Index declined 48.10 points, or 0.83%, to 5725.30, while the broader All Ordinaries Index fell 46.20 points, or 0.8%, to 5724.20. Market turnover was relatively healthy, with 1.58 billion shares changing hands worth of A$3.72 billion. 

Shares of materials and resources companies closed down. Rio Tinto and Fortescue Metals Group both dropped 1.7% to A$57.31 and A$2.36, respectively. BHP Billiton closed 1.6% down at A$29.34. South32 tumbled 2.2% to A$2.25 amid predictions from Macquarie that the Company could hand another $400 million to $500 million back to shareholders in the next two years and maintain its B-grade credit rating. 

Banks and financial stocks were also down, with top lenders being top losers, amid worries the stocks are overvalued as earnings growth slows and capital requirements tighten. Commonwealth Bank of Australia declined 0.6% to A$84.13, ANZ Banking Group 0.5% to A$32.52, Westpac Banking Corp 1.3% to A$33.20, and National Australia Bank 1.3% to A$33.56. 

McGuigan wines owner Australian Vintage fell 5% to A$0.38 after warning of 10% drop in full year (2014-15) profit from A$10.5 million it made last financial year, because it has not produced as many grapes as expected. The company said grape yields from its vineyards have been disappointing. The amount of grapes crushed for the 2015 vintage dropped by more than 10,000 tonnes. Australian Vintage crushed 113,771 tonnes of grapes from the 2015 vintage compared to 124,215 tonnes last year. 

The Australian Bureau of Statistics said on Wednesday that construction activity dropped by 2.4% to A$48.4 billion in the first quarter ended March 2015 from the fourth quarter of last year, dragged down by an accelerating decline in mining-related investment. 

Nikkei holds at 15-years high on weaker yen
 
Japanese share market closed the session higher, extending its recent gains, on the back of yen depreciation to 123-level against the greenback. But, market gains were limited as weak finish of the main U.S. indexes overnight depressed demand for the top blue chips. The Nikkei Stock Average ended up 0.17%, or 35.10 points, to 20472.58, extending a 15-year high. The Topix index of all Tokyo Stock Exchange First Section issues advanced 0.11%, or 1.76 points, to 1661.33. 

Shares of currency sensitive exporters mostly higher, on the back of yen depreciation to 122 level against the US dollar. A weak yen is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated. Shares of Toyota Motor Corp rose 0.5%, Honda Motor Co 0.6%, Isuzu Motors 2% and Fuji Heavy Industries 4.3%. Shares of ANA Holdings Inc gained 0.8% on reports that Airbus, which sells jets to bankrupt budget carrier Skymark Airlines Inc may block a plan for ANA to support its smaller rival, with Airbus reportedly seeking the plan as insufficient to shore up Skymark. 

Shanghai Composite approaches 5K level for the first time since 2008
 
Mainland China share market closed higher in volatile trade, registering seven days of straight rally, as lingering hopes of fresh policy support toward the sector outweighed concerns over fresh flood of new share offerings. The Shanghai Composite Index advanced 30.82 points, or 0.63%, to finish at 4941.71 points, taking its seven-days rally to 15%. The CSI300 index declined 17.49 points, or 0.34%, to 5126.86. 

Defence-related firms China Satellite and Sichuan Chengfei Technology Integration surged for a second day after Beijing on Tuesday outlined an ambitious defence strategy. Mining and energy stocks were also higher, with PetroChina Co., the biggest stock in the benchmark index, gaining 2.3%, while Jiangxi Copper Co. jumped 5.1%. Huaneng Power International Inc. paced an advance for utilities, surging 4%. Juneyao Airlines Co. soared 44% on its first day of trading. 

Profits of Chinese industrial businesses rose 2.6% year on year to 479.5 billion yuan (US$78.3 billion) in April, according to the National Bureau of Statistics (NBS) data released on Wednesday. The increase reversed the 0.4% dip in March. In the first four months industrial profits shrank by 1.3% to 1.73 trillion yuan, narrowing the 2.7% drop recorded in the first quarter. NBS statistician He Ping attributed the improvements to the growth of industrial production and sales, higher investment returns in industrial businesses and a fall in operating costs. 

Hong Kong stocks fall on profit booking
 
The Hong Kong stock market finished lower, on catching negative lead from Wall Street overnight. The benchmark index opened down 35 points and saw its loss widened afterwards. The Hang Seng Index ended down 168.65 points or 0.6% to 28081.21, off an intra-day high of 28214.66 and day low of 27982.14. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, declined 100.06 points, or 0.68%, to 14701.88 points. Turnover reduced to HK$157.5 billion from HK$200.2 billion on Tuesday. 

HK Market heavyweights were mixed. China Mobile declined 0.9%, and Sino-British banking giant HSBC Holdings fell 0.6%. Bourse-operator Hong Kong Exchange & Clearing gave up 1.2% after rallying 5.4% on Tuesday. 

Major Property developers traded mostly weaker, as index component China Overseas Land & Investment sagged 1.7%, Poly Property Group Co dropped 1.5%, and Shimao Property Holdings moved down 2.1%. 

Financial shares also softened after a strong rally the previous day, as China Everbright slid 2.3%, and Ping An Insurance Group Co traded 1% lower. 

Zijin Mining (02899) shot up 16.4% on its plan to raise Rmb10 billion in a non-public A shares issue. 

Indian indices witness divergent trend
 
A divergent trend was witnessed among the two key benchmark indices. The barometer index, the S&P BSE Sensex, was provisionally up 42.63 points or 0.15% to 27,574.04. The 50-unit CNX Nifty was provisionally off 0.85 points or 0.01% at 8,338.50. 

Bank stocks edged higher on renewed buying. Index heavyweight and software major Infosys edged lower.

Tomorrow, 28 May 2015, traders roll over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The near month May 2015 F&O contracts expire tomorrow, 28 May 2015. 

Foreign portfolio investors bought shares worth a net Rs 114.81 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 123.85 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index grew 0.25% to 9693.54. South Korea's KOSPI fell 1.7% to 2107.50. New Zealand's NZX50 sank 0.7% to 5757.94. Singapore's Straits Times index fell 1% to 3424.94. Malaysia's KLCI declined 0.5% to 1755. Indonesia's Jakarta Composite index fell 1.3% to 5253.39.

Banks to get Rs.100 per application to distribute Atal Pension Yojana

Banks can appoint IFAs to distribute APY on 50:50 sharing formula

PFRDA has released a commission structure for banks to distribute Atal Pension Yojana (APY).  Banks will get a minimum commission of Rs.100 each application. Further, banks will get a promotional incentive of a minimum of Rs.20 to distribute such schemes. 

Banks can also appoint mutual fund distributors to distribute this scheme. They will have to share 50% percent commission with such distributors. 

In a circular, the pension fund regulator said that per capita incentive to distribute APY is fixed at Rs.100. Per capita incentive means commission per application. Apart from this, banks will also get promotional incentives which increase with the number of schemes sold. PFRDA has fixed a promotional incentive of Rs. 20 for first 1 lakh applications. Similarly, it is Rs.30 for 1-3 lakh applications, Rs.40 for 3-5 lakh applications and Rs. 50 for over 5 lakh applications.

What is Atal Pension Yojana? 

 

The APY is a defined contribution plan which provides monthly life annuity along with return of maturity corpus to its subscribers. Subscribers can opt for a fixed monthly pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000 and Rs.5,000 per month. Government will contribute 50% of the contribution or Rs.1,000 whichever is lower for the first five years to the subscriber’s account joining before December 31, 2015. PFRDA has been appointed to oversee this scheme which is more or less in line with the NPS Swavalamban scheme.

A rough calculation of a 25 year old subscriber who opts the pension of Rs.1,000 with return of maturity corpus shows that the scheme gives a return of 8.16% during accrual phase and 7.33% on disbursal phase (life expectancy 80 years or 20 years post retirement).