Finally, IRDA wants greater disclosure on these products
IRDA (the Insurance Regulatory and Development Authority) is seeking greater disclosure for highest NAV (net asset value) products from insurers.
The specific data the regulator has asked for includes the name of the products, fund size, premium and the number of polices for all guaranteed linked and non-linked products, among others. The regulator might come up with additional disclosure norms to check mis-selling of products by agents. IRDA is also looking at how these funds are being sold. Unlike other insurance products, where approval is required from the actuarial and life departments, guaranteed products have to get additional approval from the finance department of IRDA.
Moneylife has all along maintained that ‘highest’ NAV unit-linked insurance plans (ULIPs) give suboptimal results and cause confusion for customers. The most important point to understand is that insurance companies are guaranteeing NAVs and not returns!
Are these two different? Yes. The NAV is a number at a point in time, whereas returns happen over a period of time. For instance, your 10-year plan may have hit an NAV of Rs14 after five years. At that point, it is the highest NAV. This Rs14 is guaranteed for the next five years. What if the NAV remains at Rs14 for the next four years, or goes down to Rs13? You would still get this NAV of Rs14. But Rs14 happens to be just a 4% return over 10 years!
Huntsman Corporation has taken over Laffans Petrochemicals, and has also taken the ownership of the company’s 60 kilo tonne ethylene oxide derivatives facility at Ankleshwar
The American chemicals major Huntsman Corporation said it has taken over Gujarat-based chemicals producer Laffans Petrochemicals, and has also taken the ownership of the company's 60 kilo tonne ethylene oxide derivatives facility at Ankleshwar. Though Laffans is a BSE-listed company, and the acquirer Huntsman is traded on the NYSE, both the parties did not reveal the financial details of the deal.
The $9-billion Woodlands, Texas-based Huntsman is a global manufacturer and marketer of differentiated chemicals to industries such as chemicals, plastics, automotive, aviation among others.
Huntsman India has its facilities at Navi Mumbai and has been having a technical collaboration with Laffans for the past two years. India contributes to a little over 3% of its global revenue of $9.2 billion in 2010.
Laffans set up in 1994 to manufacture ethylene oxide derivatives had revenues in excess of $50 million in 2010. The Ankleshwar plant was set up under technical assistance from Reliance Industries and is in proximity to the Hazira plant of Reliance. The unit operates the largest loop reactor in the country and its glycol ethers and acetates unit has a capacity of 30,000 tonne per annum.
The Ankleshwar plant of Laffans produces speciality intermediates for use in agrochemicals, household and personal care products, oil and gas applications and automotive lubricants and brake fluids.
Post-deal, the chemicals business of Laffans becomes an integral part of Huntsman Performance Products, giving the division its first dedicated production plant in the country, Huntsman said in a release.
On Monday, Laffans Petrochemicals ended 19.84% up at Rs30.50 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.45% to 19,701.73.
MMTC has invited bids for the supply of 2,500 tonnes of technical grade prilled urea for industrial use
Trading firm MMTC has invited bids for the supply of 2,500 tonnes of technical grade prilled urea for industrial use.
Bids will close on 7th April and a decision on awarding the tender will be taken on the same day, MMTC said on its website. The bids are to be submitted through electronic mode, it added.
The company said out of the total consignment, 2,200 tonnes of urea is to be discharged at Nava Sheva port near Mumbai, 200 tonnes at the Mundra port in Gujarat and 100 tonnes at the Inland Container Depot (ICD) in Tughlakabad.
The shipment period for the consignment is April-May 2011 and the origin of the urea is to be indicated by the bidder, it added.
Technical grade urea is used in the production of glue used extensively in the particle board industry. It is also used to produce coatings for metal, paper, textile and leather finishing. It also finds applications in the pharmaceutical, healthcare and cosmetic industries.
On Monday, MMTC ended 2.52% up at Rs958.35 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.45% to 19,701.73.