Equity funds see Rs1,256 crore inflows in May

For the first time in many months, equity mutual funds have recorded net inflows

After months of recording outflows, equity funds recorded net inflows to the tune of Rs1,256 crore in May 2010. In April 2010, equity redemption had reached
Rs1,133 crore.

In May 2010, income funds recorded outflows of Rs35,084 crore while balanced funds saw inflows of Rs206 crore. The net redemption under all category of funds stood at Rs62,960 crore.

According to AMFI data, the assets under management (AUM) of equity schemes stood at Rs1.71 lakh crore as on May 2010.
The last time equity funds recorded inflows was in January thanks to a new fund offer (NFO) from Axis Bank. January saw inflows of Rs980 crore into equity schemes.

Equity MFs have been bleeding over the last six months. Equity schemes saw redemptions of Rs1,133 crore in April 2010 compared to Rs196 crore for the corresponding period last year, while AUM of equity schemes were up 63% at Rs1,76,830 crore in April compared to Rs1,08,507 crore in the corresponding period last year.

Last month, debt funds or fixed-income schemes recorded inflows to the tune of
Rs1,77,773 crore. In March 2010, debt funds saw Rs1,64,487 crore in redemptions.

Equity funds have witnessed continuous redemptions since August 2009 to the tune of Rs7,970 crore except in January and February 2010, which recorded inflows of Rs1,514 crore and Rs980 crore respectively.



Despite the rule, developers are charging transfer fees

The Maharashtra government had ruled in August 2006 that developers have no right to charge transfer charges on a flat till a cooperative society is formed. However, this notification is being openly flouted

The housing department of the Maharashtra government had passed an opinion in August 2006 stating that a developer has no right to recover transfer charges at the time of sale of a flat by the investor till a cooperative society is formed. But it is an open secret that most builders are blatantly violating the rule and are charging Rs1,000 (or more) per sq ft as transfer fees.

"The Maharashtra housing department has passed the notice long back but builders are not following it. The issue has remained in the industry since a long time but the official authorities are not taking action against such wrong deeds of the developers," said Vinod C Sampat, advocate and proprietor, Vinod C Sampat and Co.

He further added, "There is a lack of transparency, developers are collecting the transfer fee. This is a way of extortion."

Transfer fee is a one-time payment made to the residential cooperative society when there is a case of transfer of ownership. However, the society can be registered only when 60% of the flats are sold. A ceiling of Rs25,000 has been fixed by the registrar of cooperative societies as transfer fee while local developers have been charging as much as Rs1,000 per sq ft. This is an illegal act being carried out by builders.

Property prices are sky-high in Mumbai-on the top of that, developers are charging such a huge fee for transferring the ownership of the flat. Currently property prices in Worli (central Mumbai) range between Rs26,000 per sq ft to Rs37,000 per sq ft while in Lower Parel (central Mumbai) and Bandra (suburban Mumbai) they range between Rs18,000 per sq ft to Rs23,000 per sq ft.  

"If builders charge a nominal fee of Rs25,000, it is fine because it involves an administrative cost, but to charge a certain sum per sq ft is not fair," said Pranay Vakil, chairman, Knight Frank (India) Pvt Ltd.




7 years ago

Good article exposing builders on this front. I have been told that even reputed builders such as Hiranandani charge Rs. 500/- per sft for transfer before society is formed. If this is illegal, the author of the article should also guide readers how and where to lodge a complaint. A good article is one which exposes a wrongdoing in the society as well as also guides to fight the menace. Then leave it to the readers whether they want to fight against the evil or not. Hope the point will be taken in the right spirit and in future all Moneylife articles exposing wrongdoings will also show a path to resolve it.

SBI to raise Rs20,000 crore via rights issue

The proposal is still at the conversation stage with the government and may come up towards the end of the current fiscal

The country's largest lender State Bank of India (SBI) today said it was planning to mop up Rs20,000 crore from rights issue by this fiscal end, reports PTI.

"We are expecting to raise Rs20,000 crore from rights issue," SBI chairman O P Bhatt told reporters on the sidelines of a CII event in New Delhi.

He said the issue may come by this fiscal end since the bank is currently talking to the government about it.

"It is still at the conversation stage (with the government). That is why, if at all it comes up, may be it would be coming up towards the end of this fiscal," Mr Bhatt said.

On the liquidity in the system, SBI said it will remain tight in June due to payment towards third generation (3G) spectrum auction and expected outgo for broadband wireless access (BWA).

However, the liquidity position should ease by next month, he said.

Over Rs67,000 crore was paid by telecom operators for spectrum for third generation telephony. The BWA auction so far will lead to cash outgo of Rs34,000 crore.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)