Product Updates

Shriram Transport Finance NCD   Opens 2nd July, 2014  COUPON RATE » Individuals (Retail and HNI): 11.00% p. a. for 3 years, 11.25% p. a. for 5years 11.50% p.a. for 7 years Monthly interest payout option available for 5 years and 7 years, Coupon for Others » 9.85% p. a. for 3 years, 10.00% p. a. for 5 years 10.15% p.a. for 7years. Senior Citizens (only first Allottee) shall be entitled to get an additional yield at the rate of 0.25% p.a. NCDs are proposed to be listed on NSE and BSE. Allotment will be on a First Come First Serve Basis, For more info please call. Thanking you Regards, Rajesh Kumar Kathpalia ¤ SMC Global 17,Netaji Subhash Marg,Daryaganj, New Delhi-110002 Mobile No 9891645052 Email Id: rajesh.ipo@smcindiaonline.com -- You received this message because you are subscribed to the Google Groups "Product Updates for AMC" group. To unsubscribe from this group and stop receiving email...

External debt rises to $440.6 billion in FY14 Share of short-term debt to total debt declined to 20.3% from 23.6% in 2012-13 India's external debt rose 7.6 per cent to $440.6 billion in 2013-14, owing to a rise in the deposits of non-resident Indians (NRIs) and foreign borrowings by banks. A fall in the country's current account deficit and a revival in equity flows and borrowings by banks through currency swaps helped build foreign exchange reserves, the Reserve Bank of India (RBI) said in its review of India's external debt. The surge in NRI deposits was primarily due to mobilisation of fresh foreign currency non-resident bank deposits by commercial banks under the central bank's swap scheme during the September-November period last year. RBI said the rise in external debt was partly offset by the valuation change (gains) resulting from appreciation of the dollar against the rupee and other international currencies. DEBT MATTERS Share of short-term d...

------Original Message------ From: Rajesh Kathpalia // SMC Global To: kathpalia.rajesh@gmail.com Subject: Get Assured Return upto 11.50% ( .25% Extra for Sr. Citizen) by Investing in Shriram Transport Fianance Co Ltd. Sent: Jun 28, 2014 11:23 AM       Form Download  Term Sheet -- Disclaimer: This email and any files transmitted with it are confidential and are solely for the use of the individual or entity to whom it is addressed to. Any use, distribution, copying or disclosure of it by any other person is strictly prohibited. If you receive this transmission in error, please notify the sender by replying to this email and then destroy the message. Opinions, conclusions and other information in this message that do not relate to official business of SMC and shall be understood to be neither given nor endorsed by SMC. Any information contained in this email, when addressed to SMC Clients is subject to the terms and conditions governing the client contract. I...

RBI to remain open on July 1 for public transactions The Reserve Bank of India has decided that it will remain open even for public transactions on July 1, 2014. This is to facilitate the settlement of market transactions, as also, to aid the transactions of the general public, RBI said. Normally, the Reserve Bank remains closed for public transactions every July 1 on account of its annual closing of accounts. The Reserve Bank's accounting year is July to June. However, in view of the annual closing of its books of account, however, on July 1, services such as RTGS/NEFT, transfer of funds and settlement of securities will be available from 12 noon onwards. In addition, settlement of all outstanding transactions under the Reserve Bank's liquidity adjustment facility (LAF) / marginal standing facility (MSF) due for reversal will also take place at 12 noon on that day and the morning LAF window will operate between 12.30 p.m. and 1.30 p.m, RBI said in a notification...

What is a budget and what does it consist of? A Budget is an estimate of outflows and inflows that a Government will incur during a financial year. It consists of actual figures for the preceding year and the budgetary estimate for the current year. For instance, a Budget presented in March 2012 will have the preceding year, i.e. 2011-12's actual figures and the estimates for 2012-13. When is it presented and by whom? The Budget is presented on a day that is determined by the Parliament. While traditionally it was presented on the last working day of February, this year, because a new government has come into power, it will be presented on July 10. The Budget is presented by the Finance Minister. The Budget division in the Finance Ministry has complete responsibility over it, though it requires final approval from the Prime Minister. A timetable is drawn up by the Budget Advisory Committee of the Parliament. In this schedule, a fixed time is given for each Minis...

Opens 2nd July, 2014 COUPON RATE : Individuals (Retail and HNI): 11.00% p. a. for 3 years, 11.25% p. a. for 5 years and 11.50% p.a. for 7 years,  monthly interest payout option available for 5 years and 7 years,   Coupon for Others: 9.85% p. a. for 3 years, 10.00% p. a. for 5 years and 10.15% p.a. for 7 years. Senior Citizens (only first Allottee) shall be entitled to get an additional yield at the rate of 0.25% p.a. NCDs are proposed to be listed on NSE and BSE. Allotment will be on a First Come First Serve Basis, For more info please call. Thanking you Regards, Rajesh Kumar Kathpalia ¤ SMC Global 17,Netaji Subhash Marg,Daryaganj, New Delhi-110002 Mobile No 9891645052 Email Id: rajesh.ipo@smcindiaonline.com -- You received this message because you are subscribed to the Google Groups "Product Updates for AMC" group. To unsubscribe from this group and stop receiving emails from it, send an email to Productupdates...

Fewer tax-free bond issues likely this year The Union government is likely to issue far less of tax-free bonds this financial year, feel experts. Some believe it might be no more than half the Rs 50,000-crore of such bonds issued in 2013-14. "These bonds cost a lot to the government," said Nilesh Shah, managing director, Axis Capital. In FY14, these bonds got a good response; the yield on the 10-year benchmark government bond had risen and these bonds are priced keeping that in mind. "Tax-free bonds have enabled retail and high net worth investors to participate in the bond market in a big way. However, this has come at a huge cost, as the effective pre-tax yield has distorted the entire interest rate structure and taxation structure. I think these issuances, at 50 basis points lower than government securities are too expensive for the government. They need to have a re-look at the spreads and size," said B Prasanna, MD of ICICI Securities Primary Dealer...

115 MF debt schemes need to comply with Sebi norms By Ravi Ranjan Prasad Jun 23 2014 More than 115 schemes from debt and balanced fund category will have to ramp up their assets under management to comply with latest Securities and Exchange Board of India (Sebi) directive on maintaining Rs 20 crore minimum assets under management (AUM). Concerned over fund houses running debt schemes with very low AUM, the market regulator issued a circular last week saying an average AUM of Rs 20 crore on half yearly rolling basis would have to be maintained for open-ended debt-oriented schemes. There are 116 schemes belonging to debt and balanced category with less than Rs 20 crore AUM as on May 31, 2014 as per data compiled by corporate data firm Capitaline. Out of these, 49 schemes have less than Rs 5 crore assets and 15 schemes have less than Rs 1 crore AUM. Barring a few, all the major funds have debt schemes where AUM is below the prescribed limit. Sebi has been concerned ab...

     

Sebi tweaks debt fund norms for ensuring adequate corpus Market regulator the Securities and Exchange Board of India (Sebi) introduced a minimum subscription amount criterion to ensure adequate assets under management (AUM) in debt fund schemes. "It has been observed that many debt-oriented schemes are operating with a very low AUM. In the interest of investors, it is important that debt-oriented schemes have an adequate corpus to ensure adherence to the investment objectives as stated in scheme information document...," stated a Sebi circular issued on Friday. For debt-oriented and balanced schemes, the minimum subscription amount at the time of the new fund offer has been fixed at Rs 20 crore and at Rs 10 crore for the other schemes. Further, open-ended debt schemes will be required to maintain an average AUM of Rs 20 crore on a half-yearly rolling basis. Existing open-ended debt fund schemes are expected to comply with the norm within the next one-year period. ...

Mumbai: India's capital market regulator—Securities and Exchange Board of India (Sebi)—has relaxed norms for initial public offerings (IPOs) and offers for sale (OFS) to encourage more companies to sell shares and attract retail investors. The board of the regulator, which met in Delhi on Thursday, said that companies with a post-issue capital of less than Rs.4,000 crore will have to sell a 25% stake or stocks worth Rs.400 crore, whichever is lower, to the public in an initial share sale. "This will remove the anomaly that a company just short of Rs.4,000 crore market capitalization was required to dilute about Rs.1,000 crore while another company at Rs.4,000 crore market capitalization was required to dilute only Rs.400 crore," the Securities and Exchange Board of India (Sebi) said in a statement. However, if an IPO of Rs.400 crore size is not equivalent to 25% of its post-issue capital, the minimum public shareholding of 25% has to be achieved within three year...

To help channelise more funds for long-term investment purposes, capital market regulator Securities and Exchange Board of India (Sebi) has suggested the government to allow all public sector undertakings (PSUs) to park their surplus cash in mutual funds, and has sought a uniform tax treatment for all pension funds. Besides making available large amounts of funds for long-term investments and helping revive the economy, the proposals are also aimed at bringing down the Indian markets' over-reliance on foreign money. According to senior officials, the proposals are being actively considered by the government and a final decision can be announced in the Union Budget next month. It has been suggested that there is a need for uniform tax treatment of retirement related investments irrespective of the investment routes - pension products launched by mutual funds or the retirement funds managed by the Employees' Provident Fund Organisation (EPFO). Sebi has also sought tax...

Sebi board to meet tomorrow; slew of reform measures on agenda Capital markets regulator Sebi is set to announce a slew of measures, including IPO and Offer For Sale reforms, to give a boost to the primary markets and make it easier for companies to raise funds. These issues, along with new guidelines for research analysts, common Know Your Client (KYC) procedure for financial sector, changes to ESOP regulations and introduction of minimum penalty provisions, among others, are expected to be discussed at Sebi's board meeting here tomorrow. The Sebi board will also discuss a proposal to make it mandatory for all listed PSUs to have at least 25% public shareholding -- a move that will help the government raise close to Rs 60,000 crore through sale of excess shares in 38 state-run firms. This will be Sebi's first board meeting since a new government led by Prime Minister Narendra Modi assumed office last month. The board will also be apprised of the elaborate contin...

How to shrink Rs.50,000 to Rs.248 As a scientist at the National Botanical Research Institute in Lucknow, Virendra Pal Kapoor, now 72, spent years developing eco-friendly, toxin-free, herbal products. Ironically, as an investor, he contaminated his own portfolio by making the cardinal mistake of buying insurance when not needed. To be fair to the scientist, he was taken in by the advice given by his life insurance agent, whom he met in the premises of his bank. Kapoor, now retired, is a happy customer of State Bank of India and has built a relationship of trust over decades with the bank. "I met this agent at my bank, and since SBI is government owned, I thought that the companies that he represented (SBI Mutual Fund and SBI Life Insurance Co. Ltd) would also be backed by the government,"said Kapoor. In 2007, at the age of 64-plus, Kapoor bought a unit-linked insurance plan (Ulip) on the advice of his agent. According to Kapoor, his agent, Vinod Kumar Harjai, who ...

Bond market may face some temporary headwinds: Jajoo Since the macro themes of easing trends in inflation trajectory and the hope of credible fiscal consolidation stays intact on domestic front the phases of corrections are likely to be short lived Fixed income markets took a breather this week after three straight weeks of decline with bond yields inching marginally higher. The reversal in sentiment was guided mainly by a delayed monsoon and a spurt in oil prices in international markets due to a fresh round of instability in Iraq. A denial from the government on any immediate plans to hike FII limits for investment in debt markets also impacted sentiment as the FII flow in bonds has been very robust in the last few weeks and the existing limits have largely been utilised. A higher than expected decline in both the headline and core consumer price inflation (CPI) also did not help much as the US 10 year treasury yields also unexpectedly surged by another 8 bps to 2.65%. India...

Mumbai/New Delhi: India will likely raise the foreign investment limit in government debt soon, as almost all the allocation has already been taken up as overseas buyers pile into the country's financial markets, said four officials with direct knowledge of the government's thinking. The current cap is Rs.99,546 crore ($16.85 billion). As of Friday, foreign investors owned Rs.88,600 crore worth of government debt, or 89% of the full available allocation, following a surge in inflows due to improving government finances and optimism about Narendra Modi's recent election as Prime Minister. Once the limit reaches 90%, foreign investors are only allowed to buy debt under a more cumbersome auction bidding system. One of the sources said the government could raise the amount foreign investors are allowed to buy by another $5 billion (Rs.29,500 crore today). The 10-year benchmark bond yield fell three basis points (one basis point is 0.01%) to 8.49% after the news. ...

RBI introduces liquidity ratios for banks In a move aimed at creating liquidity buffers in banks, the Reserve Bank of India (RBI) has mandated the lenders to maintain 60 per cent liquidity coverage ratio (LCR) from January 1, 2015. Also, the central bank suggested a phased manner in which the ratio will have to increase to 100 per cent by January 1, 2019. Equal quantum of increase has been suggested for every year, till 2019. The LCR promotes short-term resilience of banks to potential liquidity disruptions by ensuring that they have sufficient high-quality liquid assets (HQLAs) to survive an acute stress scenario lasting for 30 days. LCR is defined as the proportion of high-quality liquid assets to the total net cash outflows in the next 30 calendar days. Typically, banks face two types of liquidity risks -- funding liquidity risk and market liquidity risk. Funding liquidity risk is the one in which the bank is unable to meet expected and unexpected future cash flows and c...

MUMBAI: The country's market capitalization has jumped by about half a trillion dollars in less than a year to regain the $1.5-trillion mark - after about four years - on the back of the NaMo wave that has changed the perception about the Indian market among global fund managers. The recent spurt in the market has also propelled India to be the 10th biggest in terms of market cap, and the second biggest in the BRIC group of countries, behind China which is at $3.23 trillion. In rupee terms, India's market cap is at an all-time high of Rs 89.8 lakh crore. At the current level, India's market cap-to-GDP ratio is about 0.79. However, this is much lower than the levels seen during the last bull market of 2007-08, when the ratio was nearly 2. One of the main reasons for this sharp increase in India's market cap-to-GDP ratio is the change in foreign investors' perspective about the Indian market. "This change is mainly because the risk premium from the India...

NEW DELHI: The finance ministry is examining various suggestions made by investment bankers to merge the country's biggest state-run banks to create much stronger financial institutions. One proposal suggests Punjab National Bank, Indian Bank and Dena Bank be merged to create a bank with an asset base of more than Rs 9 lakh crore. Another possible combination is Bank of India, Allahabad Bank, Corporation Bank, Bank of Maharashtra and Punjab & Sind Bank. The finance ministry is examining proposals that include consolidation based on geography, business mix and information technology systems. Both private and public sector investment banking firms have made proposals, a senior finance ministry official told ET. Separately, ET has learnt that at least three investment banks made suggestions while pitching for mandates. "We are examining those inputs. The basic framework is to look at creating large banks with a pan-India presence," the official said, adding t...

Banks to move away from cash-credit product The Reserve Bank of India (RBI)'s decision to increasingly move away from the overnight repo facility to a term repo facility has prompted lenders to reconsider their short-term product profiles. Banks offer a one-day cash credit facility to borrowers; much of the demand is met through the daily liquidity adjustment facility (LAF). Banks borrow from RBI's LAF window at the repo rate, currently eight per cent. The Urjit Patel committee, set up by RBI to review the monetary policy framework, had said there was a need to move away from the overnight window to a spectrum of windows of various maturities. Following this, the central bank had introduced the seven- and 14-day term repo windows from which banks borrowed at a market-determined rate. Along with introducing term repo windows, RBI continued with the cap on repo borrowings through the overnight window. Last year, it capped bank's borrowings from the daily LAF facil...

MFs' AUM touches record-high of Rs 10 lakh crore in May The mutual fund industry's assets under management have crossed Rs 10 lakh crore mark in May on the back of strong capital inflows and a surge in equity markets. The assets under management (AUM) of mutual funds rose to Rs 10.11 lakh crore in May from Rs 9.45 lakh crore in April, a growth of seven per cent, according to the data available with capital market regulator Sebi. This was also the third consecutive monthly increase in AUM of country's 45 fund houses. The AUM data for individual fund house is not being disclosed. Industry experts attributed the rise in AUM to a significant level of fund mobilisation as well as a sharp rally in equity markets. The fund houses together witnessed an inflow of Rs 1.46 lakh crore. During the month, the benchmark BSE Sensex grew nearly 1,800 points or eight per cent. MFs pool together money from many investors and invest it on their behalf in accordance with a sta...

Dilemma for RBI continues: Should it focus on inflation or growth? So far this year the Indian market has been third biggest gainer on the global MSCI Index gaining close to 17 per cent. India was only behind Turkey and Indonesia which gained 21 per cent each. It is all thanks to the strong and stable new government that has been set up at the centre. The market gained nine per cent in May 2014 alone. Indeed, even before May 16 when the election results were declared, there had been a surge in the Indian market on the expectation that Narendra Modi would come to power. India under Modi is expected to be pro business, pro-growth and pro-reforms. There is a feeling that with Modi coming to power he will replicate the Gujarat growth model in the whole country by reviving demand and investment and putting growth back on track. But it is not as if Modi has a magic wand that can stimulate growth from day one. Even if he takes the right steps it will take at least 12 to 18 months for...

Call rates inch up as RBI sucks out excess liquidity Call money rates inched up as the Reserve Bank of India (RBI) sucked out excess liquidity through term reverse repo auction held on Monday. In the 4-day term reverse repo auction RBI sucked out liquidity worth Rs 2,025 crore from the system compared with the notified amount of Rs 15,000 crore. On Monday the weighted average call money rate was at 7.97% compared with Friday's 7.69%. "Due to sucking out of this liquidity, call rates rose today," said a senior official of a primary dealer. With the intention to fight sticky inflation, RBI on Friday announced for the first time a term reverse repo auction. The move was announced just ahead of the bi-monthly monetary policy review scheduled Tuesday and was aimed at keeping liquidity in the deficit mode. RBI had also said that the auction will have a greenshoe option to accept offers up to an additional amount of Rs 10,000 crore above the notified amount. Most ban...

RBI policy to set the trend in debt market: Jajoo Fixed income markets maintained the strong positive undercurrent buoyed by hopes of structural reforms by the new government and improved liquidity though volatility was still higher compared to recent weeks. In early part of the week, jittery traders caused benchmark 10-year government bond yield to hit 8.70% as some feared an upward revision in borrowings in the forthcoming Budget to address unpaid subsidies bill. However announcement of a new 14-year benchmark bond and statements from the new finance minister reinforcing commitment to lowering fiscal deficits, tackling inflation and supporting growth resulted in an immediate rally. The 10-year bond retraced back to its recent lows at 8.62. The market turned jittery again as RBI Governor reiterated the need to bring down inflation as top priority. However, the benchmark 10-year maintained the broad range of 8.65% to 8.70%. The final trading session witnessed most of the volatili...