Roll over FMPs only if you don’t need cash

Akhil Mittal, senior fund manager of Tata Asset Management says that investors whose investments in fixed maturity plans (FMPs) are nearing maturity are shifting to other products, especially hybrid or balanced funds, instead of rolling over the FMP. Fund managers are seeing investors move to both debt and equity oriented hybrid funds.

Sebi plans to cut IPO timeline to just 4 days

The Securities and Exchange Board of India (Sebi) wants to cut the timeline for Initial Public Offers (IPOs) and Follow-on Public Offers (FPO) of equity to four days. The move, if implemented, will see companies close their offerings and list the securities in the same week. It will also attract more investor participation, as their funds will be locked in for a shorter duration.

Sebi makes KYC process easier for investors

Making Know-Your-Client process easier for investors, Sebi today cleared a proposal to allow various market entities such as brokers and mutual funds to get investor details from centralised KYC agencies, rather than carrying out a fresh KYC verification procedure. Presently, there is an option available to a market intermediary that it may access the centralised KRA (KYC Registration Agency) system in case of a client who is already KYC compliant, or may also carry fresh KYC process. .At a board meeting in New Delhi, Thursday, Sebi decided to do away with the second option of fresh KYC processing being carried out, if the concerned investor has once gone through the KYC procedure with any of the registered intermediaries.

Top insurers eye HSBC’s stake in Canara HSBC OBC Life Insurance

Leading life insurance companies such as HDFC Life, Birla Sun Life and ICICI Prudential have shown interest in purchasing HSBC’s stake in its three-cornered JV with two public sector banks. Two people with direct knowledge of the development said advisors to HSBC have approached the insurance companies, and the matter is under consideration.



Funds seek open-ended status for RGESS

The Rajiv Gandhi Equity Savings Scheme (RGESS), the new tax-saving mutual fund product, could become open-ended and eligibility to invest in these could be relaxed if the finance ministry accepts the sector’s suggestions. Finance Minister P Chidambaram said on Saturday the Union budget could make some announcements to simplify RGESS to attract more retail investors.



FM comments spark hopes of STT changes

Hopes among investors and equity bourses of a reduction in the securities transaction tax (STT) have recieved a further boost, with some even expecting that the government might abolish the tax on delivery-based transactions in the cash segment. This is after Finance Minister P Chidambaram’s remarks on Saturday that the government was considering measures to increase the percentage of delivery-based trades in the market and also steps to curb the shift in trading volumes to overseas markets.