1.Service tax on brokerage to be charged for business done in June, says most fund houses.
According to a gazette issued by the government 'a mutual fund agent or distributor to mutual fund or asset management company for distribution or marketing of mutual fund' is exempted from paying any service tax from July 1. Given the time lag between the booking of business and the processing of commissions, there is confusion as to whether all commissions paid out from July 1 will be exempt from service tax. Here is what the officials of a few top fund houses have told us:
�Commission on any business procured on or before June 30 – service tax will apply irrespective of when the actual payout happens
�Fresh business procured from July 1 won't have to bear any service tax on brokerage
IFAs that were eagerly waiting for the regulation to be implemented will have to wait for a few more days for a final decision.
News Source – CAFEMUTUAL.
UTI Asset Management Company has entered into an agreement with Ministry of Overseas Indian Affairs, Government of India as one of the partners for managing the 'return and resettlement' (R&R) savings benefit under MGPSY. The contribution amount under R&R scheme of MGPSY will be invested in UTI Monthly Income Scheme Growth Option. MGPSY is a voluntary scheme. Under this scheme, for the contribution made by the Indian migrant worker of Rs 4000 an annum, MOIA will also co-contribute upto Rs .900 an annum a financial year towards the resettlement benefit for a maximum period of 5 years. This will be invested in UTI Monthly Income Scheme-Growth option.
News Source – MYIRIS.
Many fund houses still get to pay upfront charges because they collect exit loads from investors who exit, say, before a year. The collections go into a separate account that MFs use to pay distributors, upfront charges. Large fund houses that have been around for a long time are said to have large amounts in their exit load accounts from where they pay agents. AMFI and apparently many top fund houses want to stop this. One of the proposals that the industry put forth to the ministry in last week's meeting was to allow fund houses to add the exit load collections to the schemes.
News Source – LIVEMINT.
Capital market regulator SEBI plans to set up an independent SRO (self-regulatory organization) for stock exchanges, but wants day-to-day trading regulations and surveillance actions to remain with the bourses themselves.
News Source – HINDUSTANTIMES.
NEW FUND LAUNCH
IDFC Mutual Fund has launched a new fund named IDFC Fixed Maturity Plan 366 Days Series 76, a close ended income scheme. The scheme with the duration of 366 days shall mature on 18 July 2013. The new issue will be open for subscription from 10 July and will close on 16 July 2012. The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. Entry load and exit load charge will be nil for the scheme.
News Source – NAVINDIA.
Birla Sun Life Mutual Fund has declared July 12, 2012 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option of Birla Sun Life Fixed Term Plan -Series DE. The quantum of dividend will be Rs 0.9335 per unit, subject to availability of distributable surplus as on the record date.
News Source – INDIANCOMMODITY.
JPMorgan Mutual Fund has approved the introduction of Bonus Option and Annual Dividend Option under the Retail Plan and Super Institutional Plan of JPMorgan India Liquid Fund, JPMorgan India Treasury Fund and Retial & Institituial Plan of JPMorgan India Active Bond Fund, the details of which are give below:
A) Under Bonus Option, bonus units may be declared at the discretion of the Trustees, from time to time based on the availability of distributable surplus.
B) Under Annual Dividend Option, the investors can opt for dividend payout of dividend re-investment option. Default option under the Annual Dividend Option shall be dividend re-investment.
The record date for the Annual Dividend Option shall be 20th March every year. In case the record date falls on a non-business day, the subsequent business day shall be considered as the record date. Annual Dividend shall be declared at the discretion of the Trustees, in accordance with SEBI Regulations. Accordingly, with effect from 23 July 2012, Annual Dividend Option and Bonus Option shall be available for subscription, Investors subscribing for units under these options on 23 July 2012 before the cut-off time of the respective scheme shall be allotted units at Rs. 10 per unit and for investors subscribing after the cut-off time of the respective scheme on 23 July 2012, or thereafter, the units shall be allotted at NAV based prices.
News Source – INDIAINFOLINE.
Volatile market conditions do not seem to have affected the largest mutual fund distributors in India. In fact, 13 out of the top 20 MF distributors have seen an increase in their commission revenues in FY 2011-12. As per latest AMFI data, the asset management industry has paid a total of Rs 1860 crore in commissions to 269 large distributors in FY 2011-12.
News Source – CAFEMUTUAL.
Top bankers and representatives from the mutual fund industry will meet C Rangarajan, chairman of the Prime Minister's Economic Advisory Council tomorrow to give their feedback on ways to revive economic activity in the country. After taking charge of the finance ministry last month, Prime Minister Manmohan Singh had stressed the need to revive the mutual fundsector. Rangarajan, a key aid of the prime minister, will take stock of the banking and the MF sector, sources said.
News Source – SIFY.
After equity schemes, it seems gold exchange-traded-funds (ETFs) are now on investors' radars for redemption. In June, gold ETFs witnessed an all-time-high monthly net outflow of Rs 227 crore. Thanks to the depreciating rupee, this catapulted gold prices to above Rs 30,000 per 10g, despite the price of the yellow metal softening in the global markets.
News Source – SIFY.