Reliance Mutual Fund new issue closes on 8th June
Reliance Mutual Fund has launched Reliance Fixed Horizon Fund-XIX-Series 20, a close-ended income scheme.
The investment objective of the scheme is 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 maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility. The tenor of the fund is 730 days.
The new issue closes on 8th June. The minimum investment amount is Rs5,000.
Crisil Short Term Bond Fund Index is the benchmark index. Amit Tripathi is the fund manager.
Contrary to media reports, Solicitor General Gopal Subramanium has reiterated his earlier opinion that Cairn or its successor should share cess and royalty with state-owned Oil and Natural Gas Corporation (ONGC) in the Rajasthan block
New Delhi: In a setback to the Cairn-Vedanta deal, Solicitor General of India (SGI) Gopal Subramanium has re-affirmed that the government can impose preconditions like equitable sharing of royalty in the all-important Rajasthan block for clearing Vedanta Resources’ takeover of Cairn India, reports PTI.
Contrary to media reports, the nation’s second highest law officer has reiterated his earlier opinion that Cairn or its successor should share cess and royalty with state-owned Oil and Natural Gas Corporation (ONGC) in the Rajasthan block.
In his second opinion, which was sought by the finance minister and head of a ministerial panel vetting the $9.6 billion deal Pranab Mukherjee, the SGI said, “The government is not bound to grant consent ipso facto or mechanically.
The precondition that Cairn/Vedanta agree to cost-recovery of Rs18,000 crore in royalty that ONGC has to pay on the Rajasthan block would be “defensible on parameters of public and national interest,” the SGI said in the second opinion.
In his first opinion on 24th March, the SGI had stated that transfer of Cairn India shares to Vedanta should be allowed only if the latter agrees to treating royalty paid by ONGC as cost-recoverable from its revenues.
ONGC owns 30% stake in Cairn India’s mainstay Rajasthan block, but is liable to pay royalty on the entire output from the field. Cairn is also contesting its liability to pay a Rs2,500 per tonne cess on its 70% share.
But unlike royalty, it is treating cess as a cost-recoverable item. All cost-recoverable items like capital and operating expenditure are first deducted from revenues earned from the sale of oil before profits are shared between stakeholders, including the government.
Cairn Energy, which is selling a 40% stake in its Indian unit to Vedanta, and the London-listed mining group are opposed to making royalty cost-recoverable as it will lower the profitability of Cairn India.
“The purpose of consent is the provision of a power to regulate the performance of obligations which arise under a contract and not to defy them. Hence, a consent can be conditional,” the SGI said in the second opinion on 6th April.
The government “cannot deny consent except on logical grounds. Such conditions as preserve many different components of public interest can be validly imposed. The conditions must be borne out of fairness, vigilance and public interest,” he said.
The Group of Ministers headed by Mr Mukherjee is slated to meet on 27th May to discuss imposing preconditions on approving the deal. The GoM recommendation will go to the Cabinet Committee on Economic Affairs (CCEA), which had on 6th April asked the ministerial panel to vet the deal.
RBI governor D Subbarao has sought the co-operation of states in improving farm productivity, developing rural infrastructure and revamping the public distribution system in a bid to contain price rise
Mumbai: Seeking co-operation of states in containing price rise, the Reserve Bank of India (RBI) has said efforts are needed to improve farm productivity, develop rural infrastructure and revamp the public distribution system (PDS) to address supply side issues and contain inflation, reports PTI.
“....They (states) could for instance, help better management of the PDS and improve productivity in agriculture and allied activities.
“There is also the need for reform in the Agriculture Produce Marketing Committee (APMC) Acts among other measures ,” RBI governor D Subbarao said while speaking at 24th conference of the state financial secretaries here.
The government data released on 16th May showed a minor dip in headline inflation to 8.66% in April, driven by a moderation in food and manufactured items prices.
On market borrowings, Mr Subbarao said, “There was a need to improve efficiency in terms of better planning, robust cash management and adherence to the Fiscal Responsibility Legislation ( FRL).”
Besides improving revenue collection through tax reforms, the states should also focus on expenditure management, he added.
Mr Subbarao also referred to implementation of Malegam Committee report in the context of regulating microfinance institutions (MFIs).
“The unincorporated MFIs would be regulated by the proposed central legislation uniformly across the states and the incorporated MFIs by the RBI,” he said.