Regulations
Nippon Life stake hike in Reliance Capital Asset gets SEBI nod
Chennai : With SEBI on Thursday giving the nod for Japanese Nippon Life Insurance to hike its stakes in Reliance Capital Asset Management to 49 percent, the latter's name will be changed to Reliance Nippon Life Asset Management.
 
In a statement, Reliance Capital Asset Management said it has completed the regulatory approval process for increasing the stake of Nippon Life Insurance, a Fortune 500 company and one of the largest life insurer in the world, to 49 per cent from the current 35 percent.
 
The Japanese company will now be investing an aggregate value of Rs.1,196 crore ($184 million) to acquire an additional 14 percent stake in Reliance Capital Asset Management, in tranches.
 
The transaction pegs Reliance Capital Asset Management's valuation at Rs.8,542 crore ($1.3 billion), the highest valuation till date for any asset management company in the country.
 
"In line with the new shareholding structure, the name of the company will also be changed from Reliance Capital Asset Management to Reliance Nippon Life Asset Management. Nippon Life Insurance would also become the co-sponsor in Reliance Mutual Fund, along with Reliance Capital, post the completion of stake sale," the statement added.
 
Before the Securities and Exchange Board of India, the company has already received approval from Competition Commission of India for this stake sale.
 
"We are thankful to the regulators for granting their approvals to this stake sale and will be completing the transaction in next few days," the statement quoted Reliance Capital executive director and group CEO Sam Ghosh as saying.
 
The boards of directors of both the companies - Nippon Life Insurance and Reliance Capital Asset Management - had already approved the increase in stake by the Japanese partner, subject to regulatory approvals.
 
Reliance Capital Asset Management is the largest asset manager in India, in terms of AUM, managing Rs.2,61,424 crore ($39.6 billion) as on December 31, 2015, across mutual funds, pension funds, managed accounts and offshore funds.
 
Nippon Life Insurance had acquired 35 percent stake in Reliance Capital Asset Management in two tranches - 26 percent for Rs.1,450 crore in 2012 and 9 percent for Rs.657 crore later.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Bill to give statutory status to Aadhaar introduced in Lok Sabha
New Delhi : Despite opposition from the Congress and the Biju Janata Dal, Finance Minister Arun Jaitley on Thursday introduced the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 in the Lok Sabha.
 
The bill to provide Aadhaar statutory backing and make it the mainstay of the government's direct benefit transfer (DBT) programme for subsidies was tabled in the house as a money bill.
 
Objecting to the presentation of the bill as a money bill, Congress leader Mallikarjun Kharge said, "Congress is ready to cooperate on the bill, but it should not come as a money bill. To avoid Rajya Sabha they are bringing this bill as a money bill."
 
Biju Janata Dal (BJD) leader Bhartruhari Mahtab also objected to the legislation and sought clarification from the minister.
 
"The bill was brought by the UPA government and then it was referred to the standing committee. Lots of recommendations were also made but I don't know the status of the bill in the Rajya Sabha. There are many contentious issues related to Aadhaar number and so the matter was also referred to the Supreme Court," he said.
 
Responding to the queries raised by the members, Jaitley said, "The bill is substantially different from what was brought by the UPA and it is up to the Speaker to decide. The substance of the bill is that whoever gets subsidies will have to produce Aadhaar."
 
The bill seeks to provide for "good governance, efficient, transparent, and targeted delivery of subsidies, benefits and services", from public funds, to the citizens through assigning of unique identity numbers to them.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Smaller cities to spearhead smartphone growth in India: IDC
New Delhi : With the growing appeal and penetration of smartphones, tier 2 and 3 cities will spearhead the next wave of growth for the Indian smartphone market, the latest report from the International Data Corporation (IDC) has predicted.
 
According to the “Monthly City Level Smartphone Tracker” report released on Thursday, the leading 30 cities of India make up approximately 51 percent of the smartphone market in the fourth quarter of 2015.
 
While New Delhi generated the maximum demand, Mumbai followed it closely in that period. 
 
Twenty five major tier 2 and 3 cities currently make up around 21.3 percent of the Indian smartphone market, said the report, adding that most of the demand in smaller cities is for 3G models but with increasing 4G smartphone portfolio across all brands, the demand for 4G smartphones is expected to grow exponentially.
 
“The smartphone consumers in tier 2 and 3 cities are becoming more aware and demanding. The 4G revolution is promising to trigger the next wave of smartphone growth with 4G enabled devices already overtaking 3G devices as the largest smartphone category,” said Jaideep Mehta, managing director, IDC South Asia.
 
There is a clear trend of migration from feature phones to low-end smartphones in smaller cities and towns, making these markets the next growth engine for the smartphone industry.
 
“With the first time mobile phone users coming on a smartphone, it will be their only connected device which meets all of their internet and entertainment needs” added Swapnil Bhatnagar, research director, IDC India.
 
Chinese vendors like Lenovo, Motorola and Xiaomi are gaining market share in these cities “due to their superior positioning as quality brands, with a value for money proposition,” Swapnil noted.
 
The top five cities of India make up nearly 60 percent of the online smartphone sales in India, the report added. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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