Lamon Rutten, MD & CEO, MCX said, "Gold is considered as an investment option, and has now become a part of portfolio of many investors and hedge funds. Availability of Gold Petal, a product that can act as a SIP product, will attract retail participants"
Mumbai: Multi Commodity Exchange of India (MCX) today launched one gram gold contract called Gold Petal futures contract. Currently, Gold Petal May and June 2011 contracts have been offered for trading.
The trading unit of the gold contract is one gram and price quote for the contract is ex-Mumbai (inclusive of all taxes and levies relating to import duty, customs duty but excluding sales tax / VAT, any other additional tax or surcharge on sales tax, local taxes and octroi).
The delivery of contract is possible in dematerialised or physical form. The physical delivery would be available in multiples of eight gram coins with London Bullion Manufacturers Association (LBMA) certified 999 purity. The delivery centres identified are G4 Securitas at Mumbai, and other delivery centres at New Delhi, Ahmedabad, Hyderabad, Bangalore, Chennai and Kolkata.
Tick size of the contract is Re1 per gram and the maximum order size is 10kg. The initial margin required to trade will be 4% or based on SPAN, whichever is higher. The open position limit for members has been fixed at 12.5 MT for all gold contracts combined together or 15% of the open market position, whichever is higher, and for clients it is 2.5 MT of all gold contracts combined together.
Lamon Rutten, MD & CEO, MCX said, "Gold is considered as an investment option, and has now become a part of portfolio of many investors and hedge funds. Availability of Gold Petal, a product that can act as a SIP product, will attract retail participants."
MCX, India's leading commodity bourse, has developed different contract denominations to accommodate the needs of varied market participants. Apart from Gold Petal, other gold contracts that the exchange offers are Gold (1 Kg), Gold Mini (100 grams) and Gold Guinea (8 grams).
HDFC Life has taken another proactive customer centric step to ensure that customers understand products well before making a decision to purchase them. It will help if IRDA can make it mandatory for all insurers to do the same, with some fine-tuning
HDFC Life's 'most important document' (MID) initiative is commendable. The long policy document is often ignored by customers and there are chances of misunderstanding as well as mis-selling. This one-page concise document giving a snapshot of important policy terms will be helpful. IRDA (the Insurance Regulatory and Development Authority) should make it mandatory for insurers as such a simple document can go a long way to benefit the industry. The next step should be a ULIP (unit-linked insurance plan) centric document.
The MID has information to be written like premium payable, frequency, term period and sum assured. It has a selection for plan objective, regular/single premium and Yes/No for statements of understanding like 'I/We have understood the deductible charges'.
If IRDA does go ahead with a ULIP-centric MID, this document can additionally have the actual charges to be filled up by the customer (premium allocation charge, policy administration charge, fund management charge, mortality charge and so on).
The fact is that the customer does not understand all the charges and just a generic 'Yes/No' for understanding of charges is not enough. How many customers even know the mortality charges and let alone understand that mortality charges vary drastically among insurance companies?
Do all customers understand that premium allocation charge and policy administration charge is on the premium paid, while fund management charge is on the full fund accumulated till date?
The other ULIP-centric MID initiative could be to have a 'Yes/No' statement of understanding like 'I/We have understood that the benefit illustration of 6% and 10% p.a. is indicative and does not represent the actual benefit'.
Moneylife has come across an agent who assured us 10% p.a. returns in ULIP. The agent confidently affirmed when asked about giving this "assurance" in writing. It was only when we met the agent that we found that 10% p.a. returns were specified in the benefit illustration document that IRDA allows insurers to show to customers.
The insurance company agent was obviously misleading this writer with false promises.
This mis-selling is rampant in the industry. Likewise, traditional plans can have a MID entry like 'I/We have understood that the non-guaranteed bonus may not be given by the insurance company'.
HDFC Life had started a 30-day free look-in into all ULIPs launched after 1st September, a first in the industry. The IRDA mandate is a 15-day free look-in period which really should be reconsidered to make it a 30-day period.
There are grievances that have been reported to Moneylife from customers whose addresses were purposely entered wrongly into the system so that the policy documents do not reach them in 15 days. The reason to enter a wrong address is manipulations (fraud) in the policy like change from single premium to regular premium, medical conditions entered wrongly as 'normal' and even instances of forging signatures for various reasons.
We have even come across a case of someone who paid premium for an existing policy, only to find a new policy issued with the wrong address and premium never applied to the existing policy, which caused the old policy to lapse. The new policy did not reach in 15 days, due to a wrong address and hence the free-look period had also lapsed.
It was a double whammy for the customer. The grievance is still pending with the IRDA. We will keep you updated about this case.
But remember, when you issue a cheque for an existing policy, please write on the reverse of the cheque the policy number, and if possible, get a confirmation from the insurance office that the cheque handed over to them is for the existing policy premium payment. Insurance mis-selling is not something you can just wish away. Be safe while handling your policy, rather than be sorry later.
The company, a major generic drug maker, may launch a generic version of Effexor tablets—an anti-anxiety drug—in June in the USA, according to sources close to the development
Aurobindo Pharma, a major generic drug maker, may launch a generic version of Effexor tablets-an anti-anxiety drug-in June in the USA, sources close to the development said, according to PTI.
Aurobindo recently settled a patent infringement case with Wyeth Pharmaceutical for Effexor (Venlafaxine) tablets.
"All the legal issues over the patent infringement have been settled with Wyeth. We are planning to launch the drug on 1st June," sources told PTI.
Aurobindo Pharma has received final approval for its Venlafaxine Extended Release Capsules from the USFDA. These capsules are prescribed for treatment of major depressive disorders and fall under the 'neurological therapeutic' category.
The product has a market size of approximately $2.40 billion for the twelve months ended September 2010, Aurobindo said today.
The US pharma major on 22nd April last year had filed a patent infringement suit against Aurobindo in the District Court of New Jersey over the latter's proposed copycat versions of blockbuster drug, Effexor, generically known as Venlafaxine.
Patents for Effexor will expire in September 2017. Sources said the settlement with Wyeth is in line with that of generic drug makers like Teva and Lupin.
Wyeth settled a patent lawsuit for the same drug with Teva, an Israeli drug maker. As per the agreement, Teva was to launch a generic version on or later than July 2010 in return for certain percentage of profits from the generic sale. Teva launched the generic version of Effexor in August last year.
On Monday, Aurobindo Pharma ended flat at Rs193.65 on the Bombay Stock Exchange, while the benchmark Sensex declined 295.65 points (1.53%) to 19,091.17.