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.
ICICI Prudential Mutual Fund new issue closes on 30 June 2011
ICICI Prudential Mutual Fund has launched ICICI Prudential Fixed Maturity Plan-Series 58-2 Year Plan A, a close-ended income scheme.
The investment objective of the plan under the scheme is to seek to generate regular returns by investing in a portfolio of fixed income securities/debt instruments maturing on or before the maturity of the plans under the scheme. The tenor of the plan is two years.
The new issue closes on 30 June 2011. The minimum investment amount is Rs5,000.
Crisil Composite Bond Fund Index is the benchmark index. Chaitanya Pande is the fund manager.