LIC sells shares worth $1 billion in 15 Sensex companies

While LIC sold shares in 15 companies listed on Sensex for about Rs5,850 crore, it also bought shares worth Rs2,300 in seven companies

New Delhi: Booking profit in the recent stock market uptrend, state-run Life Insurance Corporation of India (LIC) offloaded its shares worth over $1 billion in half of the 30 Sensex companies, including Reliance Industries Ltd (RIL) and ICICI Bank, in last quarter, reports PTI.
As the markets rallied higher on the back of robust inflows from foreign investors attracted by a slew of economic reform measures, the country's largest institutional investor LIC trimmed its holding in as many as 15 Sensex companies in July-September quarter.
The Sensex rose by nearly 9% or about 1,500 points during this three-month period.
As per the latest shareholding data disclosed by Sensex companies, LIC's holding fell the most in companies like Cipla (by about two percentage points), ICICI Bank, HDFC Bank, Mahindra & Mahindra and GAIL (about one percentage point each).
Besides, the public sector insurer also pruned its stake in HDFC, RIL, L&T, SBI, Tata Motors, Sun Pharma, Maruti Suzuki and Tata Power by about half a percentage point during the quarter.
The total value of shares sold by LIC in these companies is estimated at around Rs5,850 crore (over USD 1 billion).
At the same time, LIC's exposure rose in seven Sensex companies -- Wipro, Bharti Airtel, Hero MotoCorp, Infosys, TCS, Bajaj Auto and Hindalco Industries.
LIC is estimated to have purchased fresh shares worth about Rs2,300 crore in these companies.
Government-run LIC, which pumped around Rs45,000 crore in stocks last year, kept its holdings almost unchanged in four blue-chips -- ITC, ONGC, BHEL and Hindalco. The shareholding patterns of two Sensex companies, Jindal Steel and Coal India, do not mention LIC as a shareholder.
Last fiscal, LIC had helped in recapitalisation of a slew of public sector banks, which was of help to the lenders given the weak government finances, and was the major subscriber to shares sold by the government in ONGC in March this year.


Mutual fund distributor registration fees slashed by up to 80%

AMFI has also announced a small registration fee of Rs3,000 for a newly created cadre of distributors, which includes retired government employees, teachers and bankers

New Delhi: Taking forward the steps initiated by the government and the market regulator Securities and Exchange Board of India (SEBI) to revive mutual fund (MF) investments, the fund houses have slashed the distributor registration fees by up to 80% to boost their sales, reports PTI.
The revised registration fees, which mutual fund industry body Association of Mutual Funds in India (AMFI) charges to the MF distributors, would be effective from 1st November.
Besides, AMFI has also announced a small registration fee of Rs3,000 for a newly created cadre of distributors, which includes retired government employees, teachers and bankers.
SEBI, which regulates mutual funds and other segments of capital markets, recently announced a slew of measures for benefit of mutual fund industry, including provision for a new distributor cadre and incentives for reaching out to smaller cities.
The government has also favoured steps for encouraging investors to put their money in mutual funds, equity and insurance products, rather than in idle assets like gold.
As per the regulations, all mutual fund distributors are required to get registered with AMFI and get an ARN (AMFI Registration Number) for selling MF products.
"The revised fees will be effective from 1 November 2012 and shall be made applicable to those distributors who apply for fresh registration on or after 1 November 2012 and to the existing ARN holders whose ARNs are falling due for renewal on or after 1 November 2012," AMFI said in a circular.
As per the revised structure, the ARN fees for NBFCs have seen the biggest decline of 80% to Rs1 lakh (from Rs5 lakh earlier), while fees for proprietary firms have also been slashed considerably from Rs10,000 to Rs3,000.
The fees for individuals and senior citizens have been lowered from Rs5,000 to Rs3,000.
A similar fee of Rs3,000 would apply to the newly approved distributor class comprising of postal agents, retired teachers, retired government and semi-government officials, retired bank officers and other similar persons with a service of at least ten years in their organisations.
AMFI further said that the "fees for renewal of ARN will be 50% of the fees payable for fresh registration under respective category of distributors".
ARN is allotted to individual agents, brokers, and other intermediaries engaged in selling mutual funds after they pass the AMFI/NISM (National Institute of Securities Market) certification test. Besides, AMFI also allots ARNs to corporates engaged in business of selling mutual funds.
The ARNs allotted to mutual fund distributors are valid for a period of three years and need to be renewed thereafter.




4 years ago

What has AMFI done for mutual funds distributors to deserve these fees?

disclaimer: ours is a mutual funds distribution company.

TDSAT directs DoT to return Videocon Telecom's bank guarantee

TDSAT asked the government the return bank guarantee of Videocon Telecom in Himachal Pradesh, Orissa, Rajasthan, UP (West) and Karnataka circles

New Delhi: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed the government to return the performance bank guarantee (PBG) submitted by Videocon Telecom at the time of spectrum allotment in five circles, reports PTI.
The TDSAT said: "this Tribunal is of the opinion that the Respondent (DoT) cannot take advantage of its own wrong".
"These petitions are, therefore, allowed. The Respondent (DoT) is hereby directed to return the PBGs, in respect of the aforementioned circles," said the Telecom Disputes Settlement and Appellate Tribunal.
The circles are Himachal Pradesh, Orissa, Rajasthan, UP (West) and Karnataka. Videocon was alloted licences for 22 circles.
The firm had approached the TDSAT for revision of its bank guarantee after completing its roll-out obligations.
According to the company, it has completed the mandatory 50% and PBG should be reduced. However, because it was not done, it approached the TDSAT.
TDSAT said the DoT can not keep the bank guarantee alive for years after years as the operators have to incur certain expenditures. "Failure on its part to do so cannot be taken into consideration for opining that the Petitioner (Videocon) would not be rendered just relief to which it is entitled to," said the TDSAT bench headed by Justice SB Sinha.
It further said that Telecom Enforcement, Resource and Monitoring (TERM) Cells of DoT has already issued certificate from July 2010 till May 2012.
"It is also not in dispute that the TERM cell while issuing the said certificate would send a copy thereof to the DOT. The DOT was to act thereupon. It has an obligation to act within a reasonable time," TDSAT said.
It also said it did not agree with the submissions of the DoT that the Central Government is required to take a final decision in bank guarantee issue, hence, it could not be mere returned after getting report from TERM Cell.
"Keeping in view the fact that it had an obligation under the licence agreement, which is a contract within the meaning of the provisions of the Indian Contract Act, DoT was required to discharge its contractual liabilities, in absence of a time fixed within a reasonable period.
"It is difficult to comprehend that why in certain cases, as indicated heretobefore, it could not complete its verification as regards fulfilment of the roll out obligation process by the Petitioner for a period of more than two years or three years," said TDSAT.


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