The Securities and Exchange Board of India (Sebi) has asked asset management companies (AMCs) to inform it on an “urgent basis” about the steps taken by them with respect to their role in ensuring better corporate governance of listed companies. The stock market regulator sent a letter last week to mutual fund (MF) houses in this matter, according to persons familiar with the matter.
In March last year, the stock market regulator had mandated AMCs to disclose their general policies and procedures for exercising the voting rights in respect of the shares held by them on their websites as well as in the annual report distributed to the unit holders from the financial year 2010-11.
As per Sebi norms, AMCs are also required to disclose on their websites as well as in the annual report from 2010-11 the actual exercise of their proxy votes in the annual general meetings/extraordinary general meetings (AGMs/EGMs) of the investee companies. The matters on which AMCs are required to disclose their proxy votes include changes in the state of incorporation, merger and other corporate restructuring, anti-takeover provisions, changes to the capital structure, including increases and decreases of capital and preferred stock issuances, among other things.
Sebi’s objective to mandate fund houses to disclose their proxy voting policy and proxy votes was to make them play an active role in ensuring better corporate governance of listed companies.
News Source – BUSINESS STANDARD.
With the assets under management of exchange-traded funds on its way up, mutual fund houses are looking to cash in on the growing investor interest in this category. Last Friday, Axis Mutual Fund filed for SEBI approval for four new sector-based ETFs – banking, energy, metal and FMCG. On Tuesday Benchmark AMC applied for a smallcap ETF. More and more fund houses seem to like the idea of ETFs as they are relatively cost-efficient and involve no active stock-picking. The total AUM under ETFs has moved up by Rs. 1014 crore in the month of April to Rs. 7462 crore, according to SEBI data.
News Source – BUSINESS LINE.
Mutual fund houses (including UTI) have invested R2,064 crore during January-March 2011 as compared to shares sales of R4,524 crore in the previous quarter. In the process, it has increased share stake in Sensex companies. MFs have increased holdings in as many as seventeen sensex companies in the fourth quarter of the current fiscal.
News Source – FINANCIAL EXPRESS.
NEW FUND OFFER
Daiwa Mutual Fund has announced that it has filed an offer document with SEBI to launch Daiwa Fixed Maturity Plan – 3M – Series 1 and 2; 3 months close ended income schemes. The schemes have two options – growth and dividend option with the dividend option offering payout and sweep facilities. The investment objective of the schemes is to generate income and capital appreciation by investing in a portfolio of debt and money market instruments having maturity on or before the date of maturity of the plan(s).
News Source – LIVE MINT.
Mr. U K Sinha, the new chief of the Securities and Exchange Board of India (Sebi) is preparing for the second stage of reforms in the primary as well as the secondary market.
As the first step, he has instituted a few committees to look into issues such as the procedures of initial public offerings (IPOs) and the impact of the ban on the so-called entry fees on the Rs. 7 trillion mutual fund industry. Some of the committees are expected to submit reports in as early as six weeks. Sinha is also emphatic that he would continue Sebi’s battle against local firms that are not following the rules of the game.
News Source – LIVE MINT.
Dutch financial services group Aegon intends to surrender its licence to operate in India’s mutual fund industry, which is going through its roughest patch following a string of regulatory restrictions. An Aegon official is said to have met capital market regulator Securities and Exchange Board of India (Sebi) recently in this regard.
News Source – ECONOMIC TIMES.