SEBI cancels Aegon’s mutual fund licence

“At the request of Aegon Mutual Fund, SEBI has cancelled the certificate of registration of Aegon Mutual Fund and has withdrawn the approval granted to Aegon Asset Management Company Pvt Ltd to act as the Asset Management Company,” SEBI said in a statement

New Delhi: Market regulator Securities and Exchange Board of India (SEBI) yesterday said it has cancelled registration of Dutch financial services group Aegon to operate mutual fund business in the country, reports PTI.

Aegon had approached SEBI seeking cancellation of its licence.

“At the request of Aegon Mutual Fund, SEBI has cancelled the certificate of registration of Aegon Mutual Fund and has withdrawn the approval granted to Aegon Asset Management Company Pvt Ltd to act as the Asset Management Company,” SEBI said in a statement.

With immediate effect, Aegon Mutual Fund, Aegon Trustee Company Pvt Ltd and Aegon Asset Management Company Pvt Ltd cannot carry out any activity as a mutual fund, trustee company and asset management company respectively, it added.

In 2008 Aegon got SEBI approval to launch asset management business in India in partnership with Religare Enterprises.

However, barely a month after that the Dutch financial services firm and Religare Enterprises decided to part ways.

A host of asset management companies in the 41 member mutual fund industry currently has foreign partner. As at the end of June quarter, the industry managed average assets worth Rs7.43 lakh crore.

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Morgan Stanley cuts India Sensex forecast on earnings outlook

The brokerage also reduced its forecast for India’s 2012 gross domestic product (GDP) growth to 7.4% from 7.8% and its estimate for the fiscal year ending 31 March 2013, to 7.6% from 8%

New Delhi: Morgan Stanley on Thursday cut its year-end target for the Bombay Stock Exchange Sensitive Index (Sensex) by 15% to 18,850, saying the country’s economic growth and corporate earnings will slow, reports PTI.

The brokerage also reduced its forecast for India’s 2012 gross domestic product (GDP) growth to 7.4% from 7.8% and its estimate for the fiscal year ending 31 March 2013, to 7.6% from 8%.

“We believe a combination of factors—including persistently high inflation, higher cost of capital, cut in the ratio of fiscal spending to GDP, a weak global capital markets environment and slow pace of investment—will cause a further slowdown in growth,” analysts Chetan Ahya and Upasana Chachra wrote in the report.

The Sensex fell 1.3% to 16,617.42 at 11:15am yesterday. The gauge tumbled as low as 16,432 on 9th August, capping a 20% drop from its November peak, a level some investors consider a bear market, on concern that debt crises in the US and Europe will slow the global economic recovery and rising borrowing costs in India will hurt corporate profits. The index closed last year at 20,509.09, about 8% higher than Morgan Stanley’s forecast for this year-end.

“We think broad market earnings growth may have troughed,” Morgan Stanley analysts led by Ridham Desai wrote in a separate research note. “Lower share prices are affecting growth and vice versa.”

Earnings for 46% of Sensex companies lagged behind analyst estimates in the three months ended June, according to Bloomberg data. That compares with 33% that missed forecasts in the previous quarter. The Sensex trades at 13.8 times estimated earnings, the lowest since May 2009, and down from 21.5 times in March 2010.

“Earnings have support from decade-low gross margins and strong balance sheets, but face headwinds from fragile global growth,” the note said.

Morgan Stanley’s top stock picks include drugmaker Dr Reddy’s Laboratories, Infosys, the nation’s second-largest software maker, and sports-utility vehicle maker Mahindra & Mahindra, the note said.

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MCX-SX announces charges for currency derivative segment

“We have opted for fair transaction pricing to ensure healthy development of capital market as unhealthy price war has the potential of weakening an institution and affecting the long-term stability of the market,” Joseph Massey, MD & CEO, MCX-SX, announced

New Delhi: Within days of the National Stock Exchange (NSE) deciding to levy transaction charges for currency derivatives market, rival MCX-SX (MCX Stock Exchange) on Thursday followed suit and announced its charges for this segment, reports PTI.

Currency derivatives trading began in India in August 2009, with NSE being the first player, followed by MCX-SX and United Stock Exchange (USE) thereafter entering the segment.

However, no charges were being levied so far, which led to MCX-SX complaining to the Competition Commission of India (CCI) that it was not being able to charge for currency derivatives because of NSE’s zero-pricing regime.

In late June, CCI found NSE guilty of abusing its market dominance and asked it to stop unfair trade practices like subsidising of services.

Thereafter, NSE on 12th August announced levying of charges for the segment.

“We have opted for fair transaction pricing to ensure healthy development of capital market as unhealthy price war has the potential of weakening an institution and affecting the long-term stability of the market,” Joseph Massey, MD & CEO, MCX-SX, said.

The charges to be levied are almost similar to that of NSE.

Another player USE last week said that its board would meet later this month to decide on transaction charges.

MCX-SX would levy a charge of up to Rs1.10 per Rs1 lakh of average daily traded value (ADTV)

The exchange would also levy advance transaction charges of Rs50,000 per member per annum, which would be set off against actual transaction charges payable by the member in the respective financial year.

“Advance transaction charges on a pro-rata rounded off basis of Rs30,000 per member shall be collected for the current financial year,” MCX-SX said in an circular yesterday.

Both MCX-SX and NSE would start levying charges on currency derivative segments from 22nd August.

Further, MCX-SX would charge an admission fee of Rs2.50 lakh for trading members and Rs50 lakh for clearing members on all applications received on or after 22nd August.

According to the circular, a contribution of Rs0.05 per Rs1 lakh of traded value on each side would be collected from the members towards MCX Stock Exchange Investor Protection Fund Currency Derivatives Segment Trust. This would be effective from 1st September.

“The fixed charge of Rs250 per month being charged hitherto shall be discontinued from the month of September,” it noted.

Meanwhile, last week NSE said that it would levy transaction charges based on total turnover value, of up to Rs1.15 per Rs1 lakh in currency futures and of up to Rs 40 per Rs1 lakh in options market.

NSE has also asked its members to contribute for its Investor Protection Fund Trust.

Further, the exchange would levy an advance transaction charge of Rs50,000 per member per annum and would charge admission fee of Rs1 lakh for its existing members and Rs5 lakh for others.

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