Latest Indian Mutual Fund news | 16-Oct-2011


1.Indiabulls Ultra Short Term Fund Files offer document with Sebi.


Indiabulls Mutual Fund Files Offer document with Sebi to launch Indiabulls Ultra Short Term Fund, an open ended debt scheme. The New Fund Offer price is Rs 100 per unit. To provide a high level of liquidity with returns commensurate with low risk through a portfolio of money market and debt securities.

News Source – NAV INDIA.


2.Reliance MF declares dividend under FHF – XX – Series – 3.


Reliance Mutual Fund has declared dividend under dividend payout option of Reliance Fixed Horizon Fund (FHF) – XX – Series – 3 (close ended income scheme) on the face value of Rs 10 per unit. The quantum of dividend will be entire distributable surplus available in the scheme as on the record date. The record date for the dividend payout has been fixed as October 20, 2011.

News Source – LIVE MINT.


3.Sebi panel rejects plan to raise MF net worth cap.


A Sebi-constituted panel on mutual funds has retained the minimum capital requirement to start a fund house at Rs 10 crore, rejecting a proposal to increase the net worth criterion, officials at the stock market regulator said. The move comes as a breather for smaller fund houses and firms planning to enter the asset management business in Asia's third-largest economy. Last year, the mutual fund advisory committee had proposed to raise the capital base of asset management companies to Rs 50 crore from Rs 10 crore to ward off 'non-serious players' and to ensure higher safety for investors.


4.$12 bn in bag, RIL set to ride consumer boom.


Mukesh Ambani-led Reliance Industries Limited (RIL) is poised to announce major plans in the coming months in consumer-centric businesses spanning retail, telecom and financial services. The giant sitting on a cash pile in excess of Rs61,000 crore is moving fast to diversify the conglomeration that is expected to span everything from oil exploration to tablet computers.

RIL has already announced plans to buy out the entire 74% stake of Bharti Enterprises in its two insurance ventures with AXA. A Mumbai-based analyst said RIL's entry in the mutual fund and asset management space now appeared a logical next step. RIL, which is set to become debt-free by March 2012, had inked a joint venture with the US-based DE Shaw group in March to offer a range of financial services.


5.SEBI aids structured product investors.


In a bid to make the popular but unregulated and complicated structured products more lucid for investors, the capital market regulator, the Securities and Exchange Board of India (SEBI), last month issued guidelines on additional disclosures for the issue and listing of these. Structured products or market-linked debentures are products where majority of the money is invested in fixed-income securities and the smaller portion in derivatives linked to a assets such as equities.

Observing that these products are different from regular debentures in nature and their risk-return relationship, Sebi felt the need for additional disclosures and requirements in offer documents. The guidelines broadly talk about disclosure norms for risk, return and product valuation. Over the last few years, structured products have carved a definite niche in most high networth individuals' (HNI) portfolios.

News Source – LIVE MINT.

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