Reliance Life launches Classic ULIP; Birla Sun Life MF unveils Birla Sun Life Fixed Term Plan-Series CH; HDFC Mutual Fund floats HDFC FMP 370D November 2010 (2); Reliance MF introduces Reliance Fixed Horizon Fund-XVI-Series 3
Reliance Life launches Classic ULIP
Reliance Life Insurance has launched a new unit-linked insurance plan (ULIP) called Reliance Life Insurance Classic Plan. The new ULIP will provide policyholders the benefits of regular savings with enhanced protection and market-linked returns. The plan would provide protection to policyholders in the age group of 7-65 years.
The plan offers liquidity through partial withdrawals and loans, top-up payment option and rider benefits to enhance protection cover. It offers multiple benefits and protection from helping policyholders plan their finances wisely at different stages of life, to providing risk cover on loss of life.
Under the plan, the beneficiary would get double the base sum assured plus total fund value in the event of accidental death. The plan is available under regular and single premium minimum payment options. Under the regular option, the customers would have to pay Rs20,000 annually. For the single premium option, customers will have to pay a minimum of Rs50,000 only once at the inception during the 15-year policy tenure.
The plan offers liquidity through partial withdrawals after fifth policy anniversary, loan after the completion of second policy year and top-up option to increase regular savings.
Birla Sun Life MF unveils Birla Sun Life Fixed Term Plan-Series CH
Birla Sun Life Mutual Fund has launched Birla Sun Life Fixed Term Plan-Series CH, a close ended income scheme.
The scheme seeks to generate income by investing in fixed-income securities maturing on or before the duration of the scheme. The scheme will have duration of 457 days from the date of allotment. The scheme will have growth and dividend (payout) option.
During the new fund offer (NFO), the units will be available at Rs10 per unit. The NFO opens on 10th November and closes on 12th November. The minimum investment amount is Rs5,000. The exit load for the scheme is nil.
CRISIL Short Term Bond Fund Index is the benchmark index. Kaustubh Gupta is the fund manager.
HDFC Mutual Fund floats HDFC FMP 370D November 2010 (2)
HDFC Mutual Fund has launched HDFC FMP 370D November 2010 (2), a close-ended income scheme.
The investment objective of the plan under the scheme is to generate income through investments in debt/money-market instruments and government securities maturing on or before the maturity date of the respective plan.
During the new fund offer (NFO), the units will be available at Rs10 per unit. The scheme closes on 22nd November. The minimum investment amount is Rs5,000.
CRISIL Short Term Bond Fund Index is the benchmark index. The plan shall be managed by Bharat Pareek and Miten Lathia.
Reliance MF introduces Reliance Fixed Horizon Fund-XVI-Series 3
Reliance Mutual Fund has introduced Reliance Fixed Horizon Fund-XVI-Series 3, a close-ended income scheme.
The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/debt securities normally maturing in line with the time profile of the scheme with the objective of limiting interest rate volatility. The tenor of the scheme is 369 days.
The scheme will have growth and dividend (payout) option. During the new fund offer (NFO), the units will be available at Rs10 per unit. The NFO opens on 11th November and closes on 16th November. The exit load for the scheme is nil. The minimum investment amount is Rs5,000.
CRISIL Short Term Bond Fund Index is the benchmark index. The scheme shall be managed by Amit Tripathi.
New Delhi/Mumbai: The government today said it will take a call within a fortnight on whether State Bank of India (SBI) should be allowed to go for the rights issue, which is expected to be in the range of Rs18,000-Rs21,000 crore, less than the original estimate, reports PTI.
"We are number crunching that (SBI proposal of Rs20,000 crore rights issue) at this point of time. I think some decision would be taken perhaps in next 15 days," financial services secretary R Gopalan said on the sidelines of an event by consultant Skoch here.
He said the presumptions under which the additional requirement has been asked for are being looked into by the government.
"So, amount in any case is dependent on what we arrive at along with SBI. As to how valid those presumptions are, so that exercise is on at this point of time," Mr Gopalan said.
"So once that is there, the next question is what form we will be doing it. That is also being discussed with SBI," he added.
The government holds about 59% stake in SBI. If it clears the proposal, the government will have to subscribe the issue to the extent of its holding, so as to maintain its stakeholding at the existing level.
Depending on the decision taken, Mr Gopalan said there could be implications on the budget.
"There can be implications on budget or it can be neutral on budget, so we will take a view," he said.
If the government decides to subscribe to the rights issue in cash, it will have to go for additional expenditure.
However, if it decides to subscribe the issue through bonds, the effect may be felt later. The decision will be taken in the current fiscal.
However, disbursement can be made either during this fiscal or next fiscal subject to the decision made, Mr Gopalan said.
SBI exuded confidence that rights issue will happen this fiscal.
"I expect the approvals from the govt to come this month and the issue will definitely come out this fiscal," SBI chairman O P Bhatt said in Mumbai.
He said the government has accepted that SBI needs capital.
"We had asked for a rights issue of Rs24,000 crore, but as the government will have to contribute around Rs12,000 cr ...
There's a budgetary process involved, starting with due diligence and other studies, which are being carried out. The final issue size would be around Rs18-Rs21,000 crore," Mr Bhatt told reporters on the sidelines of international banking and finance conference.
A number of major rubber-producing nations have witnessed extensive damage to their plantations due to heavy rainfall, which has caused a demand-supply shortage
Prices of natural rubber which have seen an upward movement in recent weeks due to lower supply and higher demand, may remain flat after December, say experts. On Monday, natural rubber touched an all-time high of Rs202 per kg in the Indian market.
"Rubber prices are rising as there are supply constraints. Heavy rains in the southern region have affected rubber collection. As there is no respite from these rains, rubber prices may go up by another Rs2 to Rs3 (per kg). However, the weather should improve after December; rubber production will be back on track," said Ibrahim Jalal, treasurer, Indian Rubber Dealers Federation, an all-India rubber dealers' association.
Heavy rain in major natural rubber producing countries (Thailand, Indonesia, Malaysia and Vietnam) has damaged rubber plantations, leading to a supply shortage amid strong demand from consumer-tyre manufacturers in these countries. The growing demand for rubber is fuelling prices almost on a daily basis.
"Prices are increasing in the domestic and international markets. It's difficult to predict tomorrow's prices. There has been unexpected rain in November and it is disturbing the tapping process. Even whatever rubber that has been tapped is not coming into the market," Biney Kurian, deputy director, marketing, Indian Rubber Board, told Moneylife.
"We are expecting a little correction once the weather improves. Many manufactures are running out of stock, so their first objective will be to fill up their inventories," said Mr Kurian.
A CRISIL Research spokesperson told Moneylife, "Global prices of natural rubber have been ruling high in the current year due to supply issues arising from natural calamities in Malaysia and Thailand, two major rubber-producing countries. Domestic prices between April-October were higher than the previous year by 70 %. While we do not expect any further increase in rubber prices for the rest of the year, average prices for FY11 will be higher by 55%-60%."
According to Thailand's Department of Disaster Prevention and Mitigation, about 1.9 million acres of agricultural land, or 4.8% of total arable land, was damaged by floods that spread across 51 provinces in that country.
"Bad weather in these countries has affected rubber production and it would prop prices at the international level as well," Mr Jalal said.
According to data published by the Indian Rubber Board, last month, the price of Ribbed Smoked Sheet four grade (RSS-4) grew by Rs1,467 to Rs18,112 per 100kg (quintal), while RSS-3 surged by Rs1,337 to Rs18,506 per quintal.
The rally continued in the first week of this month as RSS-4 prices went up further by Rs647 to Rs19,580 per quintal. Prices of RSS-4 on the Bangkok Commodity Exchange increased by Rs 405 to 19,504/100 kg for the first week ending 6th November.
In India, rubber production dropped 7.6% to 82,000 tonnes last month compared with 88,775 tonnes in the same month of last year. However, the consumption stood at 81,500 tonnes in October against 77,650 tonnes in the same month of last year.
The drop in production was due to heavy rain in Kerala, according to Mr Jalal.
Natural rubber imports in India surged by 81.2% to 18,148 tonnes in October on increased demand from tyre manufacturers and slowdown in production. Surge in prices of rubber has reflected in prices of tyres. Since April, prices of tyres have increased by 10%.
"Tyre producers have not increased prices of their products since the last two months, but raw material prices are very volatile and it's difficult for them to fix prices. In the future, if prices show the (same) uptrend, then tyre companies would think of hiking prices of products," a senior official from the Automotive Tyre Manufacturers' Association (ATMA), who preferred anonymity, told Moneylife.
According to ATMA, during September, tyre production increased 26% to 1 crore units from 79.8 lakh units, the same month a year ago. The average monthly production for the first six months of this year grew by 28% to 95.3 lakh units compared with 74.4 lakh units during the same period last year.