1.QFIs can't take P-note route: Sebi.
The Securities and Exchange Board of India (Sebi) has said investors who come in through the newly-formed qualified foreign investors (QFI) route cannot "indirectly" channelise investments into the country through any other route. While this move would keep out people already investing in Indian stocks through participatory notes (P-notes) and overseas derivative instruments (ODIs) from using the QFI route, Sebi further said QFIs themselves "cannot issue offshore derivative instruments, or participatory notes", to other investors. Sebi's clarifications came as part of a larger document, in the form of frequently-asked questions (FAQs), released by the regulator in time for global roadshows planned by the government to attract investors to the country. The FAQ said the same set of beneficial owners cannot use two routes simultaneously. "The same set of ultimate beneficial owners(s), who intend to make investments through the QFI route, shall not directly or indirectly channelise investments simultaneously into Indian equities using any other available route," Sebi said. According to data provided by Sebi, P-note investments were worth a little over Rs 1.3 lakh crore at the end of April. "These (P-note) investors have to wind up their existing investments if they wish to take part in the QFI regime," a senior official with an intermediary said. Other available routes that are not permitted for simultaneous investments include non-resident Indians (NRI), foreign institutional investors (FII), sub-account and foreign venture capital investors (FVCI). However, foreign direct investment (FDI) would be an exception to this rule.
News Source – BUSINESS STANDARD.
Tata Mutual Fund has decided to revise the exit load structure of Tata Income Plus Fund. The changes will be effective from 13 June 2012. Accordingly, if redeemed on or before 12 months from the date of allotment, the exit load charge will be 3%. If redeemed after 12 months but on or before 24 months from the date of allotment, the exit load charge will be 2%. If redeemed after 24 months but on or before 30 months from the date of allotment, the exit load charge will be 1%. If redeemed after 30 months from the date of allotment, the exit load charge will be Nil.
News Source – INDIA INFOLINE.
AMCs are contemplating changing the nomenclature of 'dormant' folios which has lately been creating confusion among investors. SEBI had asked AMCs to send half-yearly consolidated account statements to investors who have not transacted during a six-month period ended March or September. "We are trying to change the terminology. We are mentioning these folios as 'inactive' currently. We are thinking of telling investors that 'inactive' doesn�t mean that they have to carry out some transactions or complete certain formalities. People are equating dormant folios with dormant bank accounts. The reason for mentioning folios as 'dormant' was to keep investors updated on a half-yearly basis," says an operations head of a mid-sized AMC. Most AMCs call accounts 'dormant' while others are calling them 'inactive'. AMCs tag the folios as 'dormant' if there are no financial transactions like purchase, redemption, switch, dividend payout, dividend reinvestment, SIP, SWP, and STPs during a six-month period ended March or September. Industry officials say that mentioning 'dormant' against accounts with no transactions is not serving any purpose. They are of the view that this terminology could be altogether dropped as well. Often investors tend to forget their investments and many forget their folio numbers. Distributors tell Cafemutual that some of their clients are worried after noticing the term 'dormant' in their statements. A few clients have gone ahead to redeem their investments.
News Source – CAFE MUTUAL.
NEW FUND LAUNCH
Edelweiss Mutual Fund has launched a new fund named as Edelweiss Fixed Maturity Plan – Series 7, a close ended income scheme with the duration of 91 days. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 12 June and will close on 14 June 2012.
News Source – NAVINDIA.
Peerless Mutual Fund has announced dividend under the monthly dividend option of Peerless Short-term Fund. The quantum of dividend will be Re.0.1011 per unit. The record date for dividend has been fixed as June 11, 2012.
News Source – VALUE RESEARCH.
According to CDSL Ventures Ltd (CVL), a client can modify his KYC (know your customer) information (previously verified by KRA or KYC Registration Agency) after submission of completely filled modification form with documentary proofs to the intermediary. The same may be updated by the intermediary through his KRA login, using the 'Modify' KYC option under the 'KYC' menu. All the existing regulations and procedures pertaining to new KYC entry and dispatch would also apply to modifications in KYC data. Modification form for individual and non-individual category can be downloaded from http://www.cvlindia.com/
Speaking at the Annual Skoch Summit in Mumbai, SEBI (Securities and Exchange Board of India) chairman, UK Sinha has urged the government to implement pension reforms. He said that passing the PFRDA (Pension Fund Regulatory and Development Authority) Bill was not the end. The Bill will only serve a limited purpose. The PFRDA Bill, which has been pending for several years, seeks to open the pension sector to private sector and foreign investment in India. The PFRDA Bill provides for establishment of a statutory authority to undertake promotional, developmental and regulatory functions in respect to pension funds. Interim PFRDA is functioning since 2003 through an executive order. The PFRDA, set up as a regulatory body for pension sector, is yet to get statutory powers as the Bill pertaining to that effect lapsed in Parliament with the expiry of last Lok Sabha in 2009. To bring liquidity into the equity market, Mr Sinha highlighted the need for money coming through the pension fund route. He cited the example of the Employees' Provident Fund Organisation, which had about 40 million accounts adding to about Rs. 2 trillion.
The market regulator SEBI (Securities and Exchange Board of India) and the National Institute of Securities Market (NISM) are planning to develop course material on financial education for high-school students. To introduce financial education in schools, the NISM started talks with the finance ministry, human resource development ministry and others in August 2011. And SEBI is interacting with the Reserve Bank of India, and Insurance Regulatory and Development Authority. According to NISM, the school syllabus has various subjects and it is trying to see how it can include comprehensive financial education as a separate subject in the current curriculum. The NISM has started designing the course material for school, which would include topics like savings, investments, banking, financial planning and other subjects. Once the study material is ready, the subject is likely to be introduced in schools in two years. NISM will also train school teachers for the same.