Latest Indian Mutual Fund News | 10-Aug-2012


1.SEBI relaxes KYC norms for MF invest up to 50,000; experts say this will boost industry.

Capital market regulator SEBI at the behest of the Ministry of Finance has decided to exempt the requirement of permanent account number (PAN) for investments up to Rs 50,000 in each AMC. The rule is applicable with immediate effect. Mutual fund investors can now invest up to Rs 50,000 across all AMC, subject to a ceiling of Rs 50,000 in each AMC without a permanent account number (PAN). Earlier investors were allowed to invest up to a maximum of Rs 50,000 per year across all AMCs and a PAN card was mandatory now. People not having PAN can now submit their voter identity card, passport or driving license. 'Earlier, investors were allowed to invest up to a ceiling of Rs 50,000 across all AMCs. Now technically you can invest Rs 50,000 in each AMC. There are separate set of KYC guidelines for this rule. These investments are now exempt from PAN. KYC is mandatory even now. However, small ticket size investors can invest without a PAN by submitting either their passport or driving license as a proof to comply with KYC,' says an operations head of a leading fund house. Officials say that earlier there was no mechanism to track investors investing up to Rs 50,000 across AMCs to comply with SEBI rule. With the relaxed norms, AMCs expect to cut down some of their operational hurdles. Now all AMCs can monitor if their investment has exceeded 50,000 limits.

News Source – CAFEMUTUAL.



2.SEBI may consider 2% entry load for smaller cities.


Capital market regulator SEBI, at its board meeting on August 16, will consider the reintroduction of a 2 per cent entry load for mutual funds sold beyond the top 15 cities, and giving fund houses greater flexibility in managing their total expense ratio. As part of long-term measures, the regulator could also discuss with the government options like tax breaks to investors, said a person familiar with the development.





3.LIC Nomura MF Balanced Fund Announces Dividend.


LIC Nomura Mutual Fund has announced 14 August 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of LIC Nomura MF Balanced Fund. The quantum of dividend will be Rs. 0.20 per unit as on the record date. The scheme recorded NAV of Rs. 10.7679 per unit as on 3 August 2012.





4.SEBI to make expense ratio flexible for AMCs.


To revive the mutual fund industry, market regulator SEBI (Securities and Exchange Board of India) is planning to consider a revival plan for the mutual fund business, which includes getting distributors to search for new investment again, media reports said. At present, in case of expense ratio, asset management companies (AMCs) have a fixed annual maintenance charge fee and breakup of other costs. The regulator is considering to make the expense ratio flexible-that is a fund house can now decide what it wants to charge as fee and what portion it can keep aside for its marketing costs and distributor's fees. Currently, an AMC charges exit load and shares a portion of it with the distributors. But, soon SEBI will consider if the exit load is shifted to the fund corpus and if the distributor is compensated through a higher expense ratio. The regulator may also approve a plan that will see fund houses pay an additional incentive to distributors to bring in funds from tier-II and tier-III cities in the country. Over 65% of AUM (assets under management) of fund houses came from just five cities in India, the Association of Mutual Funds in India (AMFI) data indicated in June. The five metro cities included Mumbai, New Delhi, Bengaluru, Kolkata and Chennai which contributed Rs. 46.5 million AUM.


Latest Indian Mutual Fund News | 10-Aug-2012
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