Mutual Funds
Reliance Capital launches SIP for MF through SMS

Under the 'Invest Easy' initiative, investors will be able to start a SIP for mutual fund with Reliance Capital by sending an SMS through their registered mobile numbers

Mumbai: Reliance Capital Asset Management (RCAM) on Wednesday launched a systematic investment plan (SIP) in mutual funds through SMS under its 'Invest Easy' initiative, reports PTI.


As per the initiative, investors will be able to start a SIP by sending an SMS through their registered mobile numbers.


"SIP through SMS is the latest service offering from RCAM. This feature will make it cost efficient and convenient for over 900 million mobile users across the country to participate and make investments in mutual funds," Reliance Capital Asset Management chief executive Sundeep Sikka said in a statement.


This new feature has been launched under the company's 'Invest Easy' initiative, which aims to use technology for making it convenient for customers to invest in mutual funds.


"We already have over 2.5 lakh customers under the 'Invest Easy' initiative that allows investors to transact online on the net, on their mobiles, through call center and now using SMS. A large number of our customers are already migrating to the online platform and we see this number growing exponentially through this facility," Sikka said.


He said that the company would strengthen its reach among small-ticket investors through this initiative.


BEL-Thales JV to make radars for civilian, defence use in India

France-based Thales will hold 26% stake while BEL would hold the rest in the JV that would manufacture radars for Indian and global markets

New Delhi: India's state-run Bharat Electronics Ltd (BEL) and France-based Thales have agreed to form a joint venture company in India to design, develop, market and supply civilian and defence radars in local and global markets, reports PTI.
"BEL and Thales are delighted to announce that boards of both companies have approved the formation of a joint venture company subject...The company will be dedicated to design, development, marketing, supply and support of civilian and select defence radars for Indian and global markets," the companies said in a joint statement on Wednesday.
Thales will hold 26% stake in the company - the maximum shareholding permitted for a foreign company in a defence joint venture in India. Bharat Electronics will own the majority 74%, it said.
The formation of the new company is subject to approvals from the governments of India and France, the statement said.
BEL, a defence PSU, has been making radars for the Indian armed forces, including the Indra-II and the Rajendra radars.
It also provides support to the armed forces in maintaining their radars procured from foreign sources.
Thales has also been a major player in the Indian defence sector and recently won a $2.3 billion contract with Dassault Aviation from India for upgrading IAF's Mirage-2000 aircraft fleet.


Will investors sue Tulip Telecom?

Tulip Telecom has missed its deadline for redeeming FCCBs. The shares are down 10% in the last couple of days and there could be further downside on the back of this uncertainty, says Nomura

Tulip Telecom has been unable to meet its 26th August maturity deadline for redeeming its FCCB (Foreign Currency Convertible Bonds) and has stated that it now hopes to complete this exercise by 10 September 2012. Based on Nomura’s (Nomura Equity Research) initial discussion with the company, it is understood that there is no official approval on this new timeline; rather, this is the extension Tulip seeks from investors to complete the refinancing. Nomura’s point of view is that investors, however, could choose not to wait and take legal recourse. 
FCCB redemptions have been an investor concern for the past several quarters and the conversion option was well out of money. Tulip shares are down 10% in the last couple of days and there could be a further downside potential on the back of this uncertainty. Hence Nomura says that it would remain on the sidelines until there is better clarity. Wondering why is Nomura even covering this stock? Stock analysts and fund managers usually have no sense of corporate governance.
Of the total $140 million required to redeem its existing FCCBs, there is a funding shortfall of $20 million. The company management notes “while the company has partial resources towards the redemption, it is awaiting sanction and disbursements from some of the lenders to raise the balance amount, besides the funds from the issuance of new FCCBs of approximately $50 million.” 
It may be recalled that Tulip had recently announced that it had tied up for $80 million in debt and $50 million through the issue of fresh FCCBs. Tulip also received about $40 million in proceeds from the sale of its stake in a JV (joint venture) with Qualcomm in the recent quarter. Nomura however, says that this appears to have been deployed, likely for working capital.
At this stage, Tulip is not in discussion with existing FCCB holders for a restructuring or rollover, according to Nomura analysts.


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