IDFC extends closing date for bonds issue by 4 days; HDFC Bank increases rates on fixed deposits by 50 basis points; Principal MF floats Principal Pnb Fixed Maturity Plan-91 Days-Series XXIV; Karur Vysya Bank to launch point of sale services;
IDFC extends closing date for bonds issue by 4 days
Infrastructure Development Finance Company Ltd (IDFC) has extended the closing date for its bond issue by four days to 22nd October. The issue, which opened on 30th September, was initially to close on 18th October.
In 2010, the government introduced a new Section 80CCF under the Income-Tax Act to provide for income tax deductions for subscription in long-term infrastructure bonds. These bonds offer an additional window of tax deduction of investments up to Rs20,000 for the financial year 2010-11. This deduction is over and above the Rs1 lakh deduction available under Sections 80C, 80CCC and 80CCD read with Section 80CCE. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly.
HDFC Bank increases rates on fixed deposits by 50 basis points
HDFC Bank has increased interest rates on fixed deposits by 50 basis points on different maturities. The Bank has taken this step a week after it raised its lending rates. Deposits having tenor of one year to one year and 15 days will now get 7% interest while those maturing in two-three years would get 7.25%. Deposits having maturity of 30-45 days will now give 4% interest as against 3.75% earlier. Interest rate on 91 days to less than six months will go up by 25 basis points at 5.5%.
The Bank has revised its lending as well as deposit rates owing to the policy rate hike by the Reserve Bank of India in the second quarter review of monetary policy in September.
Principal MF floats Principal Pnb Fixed Maturity Plan-91 Days-Series XXIV
Principal Mutual Fund has launched Principal Pnb Fixed Maturity Plan-91 Days- Series XXIV, a close-ended debt scheme. The investment objective of the Scheme is to build an income oriented portfolio and generate returns through investment in debt/money-market instruments and government securities. The Scheme has no intention to invest in securitised debt and foreign debt instruments.
The Scheme offers growth and dividend options. During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The Scheme opens on 12th October and closes on 13th October. The exit load for the Scheme is nil. The minimum investment amount is Rs5,000. The minimum target amount is Rs35 crore.CRISIL Liquid Fund Index is the benchmark index for the Scheme. The Scheme will be managed by Shobit Gupta.
Karur Vysya Bank to launch point of sale services
Karur Vysya Bank (KVB) has signed a memorandum of understanding (MoU) with Corporation Bank to launch point of sale (PoS) services.
MRL Posnet is the service provider for implementation of the PoS services. The company will help KVB by way of entering agreements with merchants, placing the PoS machines at the merchant outlets, besides taking care of the settlement and reconciliation processes. Prizm Payment Services will provide the switching solution for the transactions.
KVB recently increased its benchmark prime lending rate (BPLR) and base rate by 50 basis points. The Bank's current lending rate is 14% as against 13.5%. Also, its base rate has increased to 9% from 8.5%.
New Delhi: Finance minister Pranab Mukherjee today met financial sector regulators, including Reserve Bank of India (RBI) governor D Subbarao and Securities and Exchange Board of India (SEBI) chairman C B Bhave, to work out a framework for the Financial Stability and Development Council (FSDC) - a body which will deal with inter-regulatory issues, reports PTI.
"They (finance ministry) have asked for reactions from all the regulators which we have given in writing earlier. Today the finance minster held a meeting to discuss our reaction on the discussion paper," RBI governor D Subbarao told reporters after the meeting.
The RBI is believed to have expressed reservations on the proposal saying that the council, which will be akin to a super-regulator, might dilute its autonomy.
Besides Mr Subbarao and Mr Bhave, the meeting was attended by Insurance Regulatory and Development Authority (IRDA) chairman J Hari Narayan and Pension Fund Regulatory and Development Authority (PFRDA) chairman Yogesh Agarwal. Finance secretary Ashok Chawla was also present.
In the Union budget, Mr Mukherjee had proposed to set up FSDC with the explicit intention of strengthening and institutionalising the mechanism for maintaining financial stability.
The minister recently at New York had said, "Without prejudice to the autonomy of regulators, the council would undertake macro prudential supervision of the economy, including functioning of large financial conglomerates, and address inter-regulatory coordination issues. It will also focus on financial literacy and financial inclusion."
Today's meeting, according to Mr Subbarao, "was very constructive. We gave our suggestion. He (the minister) said he will consider them and the finance ministry will respond."
New Delhi: The Insurance Regulatory and Development Authority (IRDA) today said the guidelines for insurance companies to tap the capital market for funds were awaiting the Securities and Exchange Board of India's (SEBI) nod and would be out soon, reports PTI.
"Initial public offer (IPO) guidelines for insurance companies will be out soon.
It has been approved by the joint committee of SEBI and has to be approved by the SEBI (board)," IRDA chairman J Hari Narayan told reporters here.
Last month the regulator had said that the proposed IPO guidelines for non-life insurance firms were in the process of finalisation.
The guideline for IPO of life insurance companies has already been approved by SCADA, a body constituted by SEBI, and is awaiting final nod from the market regulator.
Currently, most of the 22 private life insurers and 17 non-life players have foreign partners. The Insurance Act caps foreign direct investment at 26%.
As per the Insurance Act, promoters having 26% stake can offload equity after 10 years of operation. However, the legislation empowers the government to reduce the mandatory period.
IRDA had already notified the disclosure norms, necessary for providing details about the operations and balance sheets on quarterly and yearly basis. The IPO guidelines will deal with norms that a company must fulfil before hitting the capital markets.
The general insurance sector has 21 players, which include four state-owned companies.
Several private sector insurers, including Reliance Life and HDFC Standard Life, have already shown interest in tapping the capital market to augment their resource base.
The private players are waiting to tap the primary markets to augment their resource base.