Friday, May 27, 2011

Govt plans new investor category to boost MFs

The government plans to set up a new investor class to encourage the flow of foreign funds into mutual funds.

The move would enable the sector to have direct access to foreign investors and widen the class of foreign investors in the Indian equity market.

Under the proposed norms, qualified foreign investors (QFIs), or overseas individual investors registered with depositories either in India or abroad can take the mutual fund route to invest in the Indian stock market.

“We are looking at two routes for allowing foreigners in MFs,” a senior finance ministry official said.

The government is exploring the idea of allowing QFIs registered with depository participants to invest in funds directly and also through the unit confirmation receipt (UCR) system. Under the proposed UCR system, a foreign investor can go to depositories in his home country and place orders on custodian banks in India. The custodian banks will look into the MFs and issue UCRs against them.

Source: http://www.hindustantimes.com/Govt-plans-new-investor-category-to-boost-MFs/Article1-701978.aspx

Mutual funds continue selling

Mutual funds (MFs) sold shares worth a net Rs 12.90 crore on Wednesday, 25 May 2011, lower than an outflow of Rs 65.20 crore on Tuesday, 24 May 2011.

The net outflow of Rs 12.90 crore on 25 May 2011 was a result of gross purchases Rs 434 crore and gross sales Rs 446.90 crore. The BSE Sensex had lost 164.73 points or 0.91% to settle at 17,847.24 on that day, its lowest closing level since 21 March 2011

MFs sold shares worth net Rs 301.30 crore in May 2011 (till 25 May 2011). Mutual funds had sold equities worth a net Rs 463.70 crore in April 2011.

Source: http://www.adityabirlamoney.com/news/480212/10/22,24/Mutual-Funds-Reports/Mutual-funds-continue-selling-

Sebi members 'going slow' as their terms near end

The next couple of months are expected to witness a fall in the number of orders passed by the Securities and Exchange Board of India (Sebi). Two of its key whole-time members have been hearing very selective matters, as less than two months remain before their respective terms end.

Sebi whole-time members M S Sahoo and K M Abraham will both retire in July. While Sahoo’s three-year tenure will end on July 13, Abraham will retire on July 21.

According to a person familiar with the developments, they are ‘going slow’ in hearing most ongoing matters as they will not be in a position to pass the final orders before they retire in July.

“They have practically stopped hearing fresh matters unless unavoidable,” he said. “Even if they hear the matter now, it will be difficult for them to pass an order, which would look unprofessional. The affected party will have to come again and present the case before the new members who join office in July.”

Sahoo and Abraham, also share between them the departments critical to any regulatory probe. Sahoo, who resigned from the Indian Administrative Service (IAS) before joining Sebi as a whole-time member in 2008, is in-charge of departments such as legal affairs, enforcement and market intermediaries’ supervision and regulation. Abraham, a 1982 Kerala cadre IAS, handles investigations, integrated surveillance and market regulation.

The third whole-time member, Prashant Saran, looks after mutual funds, foreign institutional investors and collective investment schemes, among other things.

Some high-profile orders passed either by Sahoo or Abraham including those on Pyramid Saimira, Societe Generale, Sahara India Real Estate and MCX Stock Exchange. Also, consent orders on entities such as Merrill Lynch, Reliance Natural Resources and Reliance Infrastructure, Nirmal Bang Securities, Religare Asset Management, erstwhile UTI Securities and RBS Asia.

Source: http://www.business-standard.com/india/news/sebi-members-going-slow-as-their-terms-near-end/436873/

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  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

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  • Principal Emerging Bluechip Fund (Stock Picker Fund)
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