Mutual Funds
SEBI wants to colour mutual funds based on risk profile

A blue colour coded box would indicate low risk, yellow would signify a medium risk, while brown would represent schemes with high risk associated with the mutual fund scheme

Market regulator Securities and Exchange Board of India (SEBI) has issued a framework on “product labelling” with colour coding for mutual funds (MF) with an aim to help investors assess risk associated with the schemes.
SEBI said these guidelines would be implemented from 1 July 2013, for all existing and forthcoming MF schemes.
According to the guidelines, product labels carrying details about the schemes need to be disclosed on front page of the MF's initial offering application forms. A blue colour coded box would indicate low risk, yellow would signify a medium risk, while brown would represent schemes with high risk.
SEBI said, “In order to address the issue of mis-selling, a committee was set up to examine the system of product labelling that would provide investors an easy understanding of the kind of product/scheme they are investing in and its suitability to them”.
The labels would include details about the nature of schemes likely to create wealth or provide regular income in an indicative time horizon such as short, medium and long term.
Moreover, mutual funds would have to state a brief about the investment objective in a single sentence followed by kind of product in which investor is investing (equity or debt).
As per the guidelines, mutual funds would also have to include a disclaimer that “investors should consult their financial advisers if they are not clear about the suitability of the product”.
SEBI said that the product label has to be placed in proximity to the caption of the scheme in the initial offering—key information memorandum (KIM) and scheme information documents (SIDs)—and common applications so that they are prominently visible to investors.




4 years ago

Yes very good step.So people can easily understand the risk,but remember the principal in ratings Mf as followed by Crisil & other govt bodies.

Videocon D2H arm to hit the market with Rs700 crore IPO

The proposed IPO would comprise at least 25% of equity capital, giving a valuation of Rs2,800 crore to Bharat Business Channel

Bharat Business Channel, the direct-to-home TV subsidiary of the Videocon Group, has received the approval from the Securities and Exchange Board of India for its proposed Rs700 crore initial public offering (IPO).


The company had filed its draft red herring prospectus (DRHP) with SEBI in December last year for the proposed public offer. Enam Securities was appointed as lead manager for the issue.


The market regulator had issued its final observations on the draft offer document on 15th March, which is necessary for companies to launch any public offer.


The company also plans to mop up Rs50 crore through a pre-IPO placement of its shares to institutional investors.


The proposed IPO would comprise at least 25% of equity capital, giving a valuation of Rs2,800 crore to Bharat Business Channel.


The company plans to use the funds for acquisition of set-top boxes, outdoor units and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes.


While the poor pay for the poverty with their lives!

“Every gun that is made, every warship launched, every rocket fired signifies in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed”— Dwight D Eisenhower


I was pleasantly surprised to see Gujarat chief minister Narendra Modi last night (17 March 2013) holding forth on malnutrition in the wealthy segment of the population. I was really impressed by his insight into human nutrition at its subtlest level. In fact, his explanations were very convincing which even many of our people in the medical world might not be aware of. Malnutrition is our biggest problem what with nearly 67 million children suffering from Nutritional Immune Deficiency Syndrome (NIDS) dying by thousands every week for want of food. Poor, all over the world, have been paying for their poverty with their lives and Indians are no exception to that rule. This does not mean that the rich and powerful do not get malnutrition at all. Rather, they get the worse kind of malnutrition in the present set up, thanks to the wrong junk food getting popularized by the industry through the media—using our cinema and sports stars. How I wish these stars knew how they were being used to sell junk food to children. Let them read the definition of advertisement in the book Affluent Society written by John Kenneth Galbraith in 1956, before committing such crimes.


Dr C Gopalan in the fifties and sixties was immersed in real research into the causes of malnutrition, especially the two varieties seen commonly in Africa those days—Kwashiorkor and Marasmus. While in the first case the child gets bloated with water (anasarca), in the second the child is very thin and dry. Both, of course, eventually die prematurely. His work gave the world the lead to treat these two conditions correctly. I shall give the reader an insight into that work as I remember it now. In fact, we did replicate his work when I was a post graduate student at the CDRI, Lucknow.


Kwashiorkor in the African language means one who comes after. If the mother has children in quick succession she will not be able to feed them with her breast milk and so they get wrong milk (animal milk) which damages the liver first. The liver cell damage releases ferric iron into the circulation from the cells. Ferric iron is a stimulant of the posterior pituitary gland releasing plenty of anti-diuretic hormone. This results in water logging in the body thus diluting the blood. When this diluted blood reaches the kidney it secretes aldosterone, which starts retaining salt as well. This cycle goes on and the child eventually becomes fully oedematous!


 The other child with Marasmus gets mother’s milk (the right variety) but in very small quantities. So the child becomes emaciated but not oedematous as the liver does not get damaged first. The child eventually dies of starvation and calorie sub-nutrition. In short, the poor child in our country gets very little calories and dies of sub-nutrition while the rich child which lives on junk food that damages the liver and will get into the same vicious cycle like Kwashiorkor but not with so much oedema—the true mal-nutrition. While the nutritional Immune deficiency (NIDS) is the same in both groups of children, the rich one is true malnutrition while the poor one is only sub-nutrition. In fact, our rich children are the ones that fall prey to immune deficiency in every sphere—infections, asthma, autoimmune diseases and even lately unusual syndromes like the polycystic ovary syndrome, etc. I wonder if autism and many such ailments have something to do with immune deficiency. Narendra Modi on the TV that day was stressing the point that the rich also get malnutrition. I was amazed at his physiological insight into this enigma called malnutrition. We need such leaders to take this country out of the bottomless pit into which our netas have pushed it.


There is more to malnutrition than all these. Poor pregnant mothers in their first trimester do not get good nutritious food in our villages and even cities. It is in the first three months of pregnancy that the whole child is made in the mother’s womb. If that mother is malnourished, the foetus usually dies in utero. Nature many times is very kind. Nature tries to keep even such poor foetuses alive by making the mother’s placenta very big in comparison giving what little nutrition she gets to the baby inside. In that latter event the child is made very small in size. It will have small pancreas predisposing the child in post-natal life for diabetes early. Small heart and blood vessels make the child vulnerable to heart disease and hypertension precociously. Worse than all is that, these children inherit a very small hippocampus major, the part of the brain that is needed for memory, creativity, learning, etc, making the child incapable of going beyond primary school even with all the reservations! A sordid boon indeed! The ground breaking research in this area is done by a cardiologist in Southampton, David Barker. His book, Mothers, Babies and Heart Diseases, is a must read for all our politicians who have the good of the poor people at heart—a microscopic minority indeed!


Such children with pre-natal sub-nutrition do not get much benefit by extra feeding in post-natal life. That is why the Government of India’s ICDS programme in ten years hardly made any dent in the incidence of malnutrition. We need mid-day meal for all pregnant girls from day one of their missing their periods due to pregnancy. If there is any one out there who wants to eradicate poverty in India s/he should study all these in great detail. But Mr Mody gets his advice from ‘experts’, most of whom know how to complicate matters further. EF Schumacher, a big time guru, has now come to think that small is beautiful. He has this to say: “Any intelligent fool can make things bigger, more complex, and more violent. It takes a genius and a lot of courage to move in the opposite direction.” How very true, indeed?


The world suffers from two maladies—the majority of our poor brethren have very little to eat and die of sub-nutrition while the rich eat all kinds of junk food to eventually die of malnutrition. Our medical establishment also helps this process by wrongly labelling goods things as bad. Sunlight, the best life-giving elixir is being made into a demon, saturated fats, which in small amounts, are vital for growth are demonized, cholesterol the life breath of healthy living, is also demonized, and sedentary lifestyle which is a killer is being encouraged by our new western lifestyle. Health giving tonic—hard physical work—has become a rarity these days. Luckily our poor do not get the bad effects of any of the above but the rich segment of people who are malnourished are further damaged by these new lifestyles. Long live mankind with the help of our ancient wisdom.


 “Some people think luxury is the opposite of poverty. It is not. It is the opposite of vulgarity”— Coco Chanel


(Professor Dr BM Hegde, a Padma Bhushan awardee in 2010, is an MD, PhD, FRCP (London, Edinburgh, Glasgow & Dublin), FACC and FAMS. He is also Editor-in-Chief of the Journal of the Science of Healing Outcomes, Chairman of the State Health Society's Expert Committee, Govt of Bihar, Patna. He is former Vice Chancellor of Manipal University at Mangalore and former professor for Cardiology of the Middlesex Hospital Medical School, University of London.)




4 years ago

I do not believe in blaming 'the west', the govt or anyone else.That merely,lazily shifts your responsibility.

As a somewhat literate person, I know all I need for health is good whole grains,beans, veg, fruit, nuts, veg oil/s, seeds and a tiny quantity of spices, all preferably locally grown and eaten fresh. This is not expensive: junk food like commercially made cakes/ rich mithai/ fried foods and meat, fish, eggs are.

None are necessary, many are both cruel and harmful, especially if frozen and microwaved.

If you cannot afford children, why have them? One cannot keep making mistakes and expecting some govt to take care of your family. The answer lies in correcting this rather than coping with millions of underfed children. ANYONE who encourages obviously unsuitable, mentally or physically ill parents or those addicted to alcohol or drugs to have a child is unkind and irresponsible.

If you wish to be less poor, there are some options, having children is not one.


nagesh kini

In Reply to bharati 4 years ago

bharati - on children how many have the choice? in that case india would have been a great country!

nagesh kini

4 years ago

Everyone incl. NM want to shove poverty and malnutrition under the carpet. Our Planning Commission with its Rs.28/32 BPL definition are the biggest culprits.
Absolutely nothing is done to address the serious concerns of malnutrition and the tonnes and tonnes of food grains and cereals are lying rotting in the FCI godowns when millions of kids are starving and dieng. The Ministry is busy diverting food crops and water for liquor industry. Such are our priorities.
The Food Security Bill was just voted by the Cabinet in the teeth of stiff opposition of a very powerful GOMs!

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