Reliance Securities launches regular stock purchase plan

According to the company, it has “already enrolled over 6,000 customers in its one-month pilot phase"

Anil Ambani group firm Reliance Securities today launched a systematic investment scheme—Regular Stock Purchase Plan—which allows customers to invest in equity market by making small, regular investments.

The company plans to offer customers a systematic way to invest directly in equity markets at regular intervals.

“Reliance Securities targets to get over 10,000 customers each month, scaling it to over 1 lakh customers in the first year itself. The company has already enrolled over 6,000 customers in its one-month pilot phase,” the brokerage firm said in a statement.

The plan offers two options for investments—amount-based and quantity-based.

“Under the amount-based option, a customer can invest a fixed amount in a desired stock at a set frequency for a selected tenure, while under the quantity-based option, a customer can purchase a fixed quantity of stocks at set frequency for selected tenure,” the statement said.

Reliance Securities ED Vikrant Gugnani said, “Buying regularly helps average out price volatility in the stock market. The plan is aimed to help investors in accumulating wealth by making small, regular investments over a period of time.

“Studies indicate that periodic investments in stocks or mutual funds have delivered far better returns than ad hoc investments done with a view to time the market.”

Mr Gugnani further noted that stock selection or fund selection “plays an important role.”

There is no lock-in period for holding the stocks. Purchased stocks can be sold at any time giving complete liquidity to customers, the statement said. It added that the set frequency could be daily, weekly or monthly and can be stretched over a three-year period.

Also, there are options to invest in stocks as well as ETFs (exchange-traded funds) available in the company’s basket. Reliance Securities currently offers 263 stocks and 17 ETFs in its basket for selection and will add more. There are no charges for enrolling for the plan. A one-time registration is required to activate this facility, which is free.


UTI Master Value Fund declares 10% dividend

On 29th July the NAV of the fund was Rs23.52 under the dividend payout option

UTI Mutual Fund today declared tax-free dividend of 10% for its scheme UTI Master Value Fund. The record date for the dividend is 4th August, the company said in a statement. All unit-holders registered under the dividend option of the scheme as on 4th August would be eligible for the payout. As on 29th July, the NAV (net asset value) of the fund was Rs23.52 under the dividend payout option.

UTI Master Value Fund is an open-ended equity oriented value fund. The investment objective of the scheme is capital appreciation through investment in stocks that are "relatively undervalued" to their expected long-term earnings growth.
As of 30th June, UTI MF had AUM (assets under management) of Rs69,105 crore.


SRS Ltd IPO to open on 23rd August

The company is expecting to raise Rs225 crore to fund expansion across business segments

SRS Ltd, a company into cinema exhibition, food and retail, said today that it is set to tap the capital market with a public issue of 3.5 crore shares of Rs10 face value each on 23rd August.

The company aims to raise Rs225 crore through the sale of a 25.13% stake under the IPO (initial public offering).

"Through this public issue, SRS will raise funds to set up cinemas, food courts, restaurants, retail stores, (and a) jewellery-manufacturing facility," the company said in a statement.

ICRA has assigned 'IPO Grade 3' rating to the offer, which indicates 'average fundamentals', the statement said.

"With the IPO, we wish to raise Rs225 crore to fund expansion across business segments," SRS Ltd CMD Anil Jindal had earlier said.

The company plans to add 54 new cinema screens, 33 new food courts, 29 retail stores and 17 jewellery stores to its existing network.

At present, the firm operates 23 SRS 'Value Bazaar' retail stores, 15 food courts and 30 cinema screens in north India. The company also operates five jewellery retail and wholesale outlets and a jewellery manufacturing unit in Delhi.

SRS is focused on establishing a presence across business verticals in tier-II and tier-III cities and towns across the country. For the fiscal year ended 31 March 2011, the company's total turnover was Rs2,042 crore.


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