Investor Issues
MCX starts trade alert confirmation service through SMS, emails

MCX is sending trade alerts confirmations to all end clients on a daily basis through SMS on their mobile numbers and email IDs updated in its UCC

Multi Commodity Exchange, the largest commodity exchange in India said it has implemented a system where only clients with updated mobile numbers in its unique client code (UCC) would be able to place orders in its trading system.


In accordance with the regulatory requirements of Forward Markets Commission (FMC), trade alerts confirmations are sent to all end clients on a daily basis through SMS on their mobile numbers registered in UCC, the exchange said in a release.


MCX said, “Such trade alert confirmations through SMS and email will enable clients to verify trades with the contract note they receive from their brokers. This will also alert clients the next day about trades taking place in their respective accounts.”


High court seeks reply from SEBI for tracking call records

The Bombay High Court has asked SEBI to file its reply on a PIL filed by Indian Council of Investors. The PIL alleged that SEBI is seeking CDRs of 2,327 subscribers from telephone companies without any authority or permission

The Bombay High Court has asked the Securities and Exchange Board of India (SEBI) to file within three weeks its reply for seeking call data records (CDRs) of 2,327 subscribers from various telecom operators.


Hearing a public interest litigation (PIL) filed by Indian Council of Investors, the HC on 3 April 2013 directed SEBI to file its reply within three weeks. The PIL filed in March, seeks to restrain SEBI from asking for CDR data from telephone companies.


Under the Indian Telegraph Act, only certain specific law enforcement agencies are authorised by the ministry of home affairs for interception, monitoring as well as collection of CDRs and SEBI does not figure in the list of such authorised agencies. "However, SEBI has been continuously and frequently asking for CDRs from telecom operators in the past also having no legal authority to do so,” the PIL stated.


Earlier in November 2012, finance minister P Chidambaram had said that the government was arranging for SEBI getting access to CDRs of people being probed by the market regulator in specific cases. He, however, made it clear that SEBI would not get powers to directly tap phone calls.


The PIL alleged that SEBI has been seeking CDRs since 2009 but several agencies like Department of Revenue Intelligence (DRI) and the Enforcement Directorate (ED) had turned down the request.


The market regulator also declined to provide details of CDRs it was seeking when an activist filed an application under the Right to Information (RTI) Act. On 21 September 2010, SEBI's Central Public Information Officer (CPIO) refused to provide the information citing it as “strategic information”, which is exempted from the RTI disclosures, the PIL said.


SEBI's First Appellate Authority (FAA), however, directed the CPIO to provide the information. On 7 December 2010, the CPIO informed the applicant that SEBI had sought CDRs of 13 numbers and out of this, it was waiting for CDRs of five numbers from telephone services providers. After another application under the RTI, the CPIO admitted that SEBI was seeking CDRs of 2,327 subscribers.


After this reply, the Indian Council of Investors filed a PIL in the high court.


IDFC Equity Opportunity Fund: What should you expect?

A three-year close-ended scheme investing in a diversified basket of stocks. What are the risks?

IDFC has recently launched a three-year close ended scheme—IDFC Equity Opportunity-Series I. The scheme would invest 65%-100% of its portfolio in equities and the remaining part of the portfolio in debt and money market instruments. The scheme would invest in a diversified basket of stocks without any capitalisation bias. The performance of the scheme would be benchmarked to the BSE 500 index. The expense ratio of the scheme could go up to 3% per annum depending on gross new inflows from specified cities. Three years is a short time to invest in equities as the markets can behave in a very erratic manner but then leaving it to the investor to decide is even worse.

Though the fund management is free to invest in any type of stock, the stock selection strategy would be broadly based on the below criteria:

1. Earnings yield of the stock is greater than the bond yield. This typically would mean a PE ratio of less than 12, since bond yields hover around 8%.

2. Market capitalisation to sales ratio should be less than one or less than historic average.

3. Dividend yield is greater or equal to the Nifty index dividend yield

4. Restrict exposure in loss-making companies to less than 10%.


How is the scheme expected to perform?

As this is a new scheme, we would need to see how other schemes of the fund house have performed. The fund management of IDFC Mutual Fund’s overall schemes has not been consistent. IDFC Premier Equity Fund, a mid-cap scheme, has been one of the best performers among mid-cap schemes in the past three years ending 31 March 2013. The scheme has over two lakh folios and a corpus above Rs3,000 crore. Its expense ratio is also comparatively low at 1.88% and has generated a return of over 15% in the past three years. Kenneth Andrade, who manages the IDFC Premier Equity Fund would be managing this scheme, as well. He has an experience of over 15 years in the capital markets.

Other schemes from IDFC Mutual Fund that have put up a reasonable performance are IDFC Sterling Equity Fund and IDFC India GDP Growth Fund. However, at the other end of the list are schemes that have struggled to deliver consistent performance. IDFC Classic Equity Fund, IDFC Imperial Equity Fund and IDFC Strategic Sector (50-50) Equity Fund underperformed their respective category taking the mean quarterly return of the past three years.




4 years ago

Expense ratio of around 3 % is very high. The fund houses must control their expenses so that the Investors may expect better returns.


4 years ago

Looks similar to HDFC Prudence given the asset location. Better to stick to existing performing funds then going for new ones.

Ramesh Poapt

4 years ago

scheme looks high risk/high gain one,particularly in exact 3 yrs. after that the scheme will refund the money.but Kenneth should be able to beat benchmark return as the scheme is designed nicely n he has something pleasant under his sleeve....!

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