Royal Sundaram Alliance Insurance expansion strategy is based on the hub-and-spoke model, where in a branch would serve the smaller adjoining locations
Royal Sundaram Alliance Insurance said it plans to increase its presence in the semi-urban and rural areas of the country. As part of this initiative, the company recently inaugurated its new branch in textile hub of Karur, a company statement said.
The company’s expansion strategy is based on the hub-and-spoke model, where in a branch would serve the smaller adjoining locations, it added. The new branch at Karur would serve the adjoining areas like Kulithalai, Pallipatti and Aravakurichi, it said.
“This move is a part of our geographic expansion strategy in tier II and tier III cities. Karur has high potential and generated substantial business in the current year and we expect a higher growth,” Royal Sundaram Alliance Insurance managing director Ajay Bimbhet said.
The issue of making the ‘know your customer’ (KYC) norms more strict was taken up at the last meeting of a sub-committee of the Financial Stability Development Council
With the government facing heat on the issue of black money, the Finance Ministry has begun an exercise to make identification norms uniform and more stringent for capital market players like FIIs (foreign institutional investors), mutual funds and brokerage customers.
In addition, market regulator SEBI is working on further tightening of its surveillance mechanism, an official in the Finance Ministry said.
The issue of making the ‘know your customer’ (KYC) norms more strict was taken up at the last meeting of a sub-committee of the Financial Stability Development Council (FSDC), headed by Reserve Bank of India governor D Subbarao.
“We are working on a common KYC. It will be more strong and stringent,” the official said. At present, different market players follow different KYC norms.
As for the SEBI surveillance rules, he said, “We have enough safeguards to check inflow of illicit and unaccounted money into the capital market. The only possibility of such flows into the market is through FII and high net worth individuals. We will make the surveillance stricter.”
The moves are part of the government’s fight against the black money menace amid intense pressure from civil society, Opposition parties and the Supreme Court.
The RBI and SEBI have been tightening KYC norms from time-to-time. Furthermore, banks also required to update the information of their clients.
Between January, 2010, and January, 2011, SEBI banned over 30 entities for engaging in circular trading for periods ranging from two months to two years.
HSBC Mutual Fund new issue closes on 23 June 2011
HSBC Mutual Fund has launched HSBC Fixed Term Series 80, a close-ended income scheme.
The investment objective of the scheme is to seek generation of returns by investing in a portfolio of fixed income instruments maturing within the time profile of the scheme.
The new issue closes on 23 June 2011. The minimum investment amount is Rs10,000.
CRISIL Short Term Bond Fund Index is the benchmark index. Ruchir Parekh & Kedar Karnik is the fund manager.