SEBI announces guidelines for infrastructure debt funds

Mutual funds can floats infra schemes with five years maturity or lock-in of five years. Strategic investor must make firm commitment of Rs25 crore. Units to be listed

Mumbai: The Securities and Exchange Board of India (SEBI) has issued guidelines for infrastructure debt funds (IDF) which can be set up by any existing mutual fund or company that has been engaged in financing the sector for five years.

Now mutual funds can float an 'infrastructure debt fund' as a close-ended scheme maturing after five years, or an interval scheme with a lock-in of five years, SEBI chairman UK Sinha said, after a board meeting last evening.

The IDF would invest 90% of its assets in debt securities of infrastructure companies. The minimum investment in an IDF would be Rs1 crore and the minimum size of the unit would be R10 lakh, PTI reports.

The IDF, which was proposed by finance minister Pranab Mukherjee in the Union Budget for FY12, is aimed at accelerating and enhancing the flow of long-term debt for funding ambitious plans for infrastructure development in the country.

The requirement of infrastructure in the 12th Plan has been pegged at $1 trillion.

As per government norms, an IDF may be set up either as a trust or company. While the trust-based IDF (mutual fund) would be regulated by SEBI, an IDF set up as a company (NBFC) would be regulated by the Reserve Bank of India.

While announcing the guidelines for IDFs floated by MFs, SEBI said, the strategic investor would have to make a firm commitment of Rs25 crore. The units of infrastructure debt fund schemes shall be listed on the stock exchange.

An infrastructure debt fund shall have a minimum of five investors and no single investor shall hold more than 50% of net assets of the scheme.

MFs may also disclose the indicative portfolio of the infrastructure debt fund scheme to its potential investors, detailing the type of assets the mutual fund will invest in.


SEBI requires all promoters to disclose share dealings

Market regulator says all persons part of promoter group are required to make disclosures of share holding and changes

Mumbai: With an aim to prevent insider trading by promoters, the Securities and Exchange Board of India (SEBI) has asked them to disclose every considerable purchase of sale of shares by all promoter entities.

Currently, directors and top executives of listed companies are required to make these disclosures.

According to a decision taken by the market regulator at a board meeting on Thursday, all promoters and persons who are part of the promoter group of a listed company would also be required to disclose their share dealings, PTI reports.

The promoters would be required to make initial disclosures relating to their shareholding at the time of becoming promoter or part of promoter group.

Besides, continuous disclosures would also be required whenever there is a change in their holdings exceeding Rs5 lakh in value, or 25,000 shares, or 1% of the total shareholding or voting rights, whichever is lower.

"Presently, similar disclosures are required to be made by the directors and officers of the company," SEBI said in a statement.


Will resign as chief minister on Sunday: Yeddyurappa

“The month of ‘Ashada’ (considered inauspicious) will be over on 30th July. I will be tendering my resignation as chief minister on the forenoon of 31st July,” Karnataka chief minister BS Yeddyurappa said in a statement late Thursday

Bangalore: Breaking his silence after the party asked him to step down in the wake of the Lokayukta indictment in illegal mining scam, Karnataka chief minister BS Yeddyurappa has said he will step down from the post on Sunday as per the directions of his party, reports PTI.

In his first comments after keeping the BJP on tenterhooks, Mr Yeddyurappa said he had toiled for 40 years to build the party in Karnataka from scratch and it was his ‘committed desire’ to work for its development in future also.

Stating that he is a disciplined worker of the BJP, Mr Yeddyurappa said he has decided to tender his resignation from the post of chief minister as per the direction of the party.

“The month of ‘Ashada’ (considered inauspicious) will be over on 30th July. I will be tendering my resignation as chief minister on the forenoon of 31st July,” he said in a statement late last night.

“I have consistently toiled for 40 years to build the party from scratch and have got satisfaction of bringing the party to this level. It is my committed desire to work for the development of the party in future also,” he said.

Sources close to the chief minister had said yesterday that 68-year-old Mr Yeddyurappa, heading the BJP’s first government in the south since May 2008, agreed to fall in line with the BJP Central Parliamentary Board’s diktat.

The board, the party’s highest decision making body, had also decided to send senior leaders Rajnath Singh and Arun Jaitley as observers to Bangalore today to oversee the election of the new leader of the BJP legislature party.

Along with Mr Yeddyurappa, the Reddy brothers have been strongly indicted in his findings on illegal mining by the Lokayukta Santosh Hegde, which have plunged the state into a political turmoil.

Mr Yeddyurappa’s indictment pertained to violations of the Prevention of Corruption Act, and the Lokayukta also submitted a copy of his report to governor HR Bhardwaj recommending to him to initiate ‘further steps’.


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