Thursday, June 29, 2017

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Mutual funds barely out of teens, can grow 10-fold in 5 years: Ambani

Says GST will be India’s ‘economic freedom’29 Jun 2017 | 1:28 PM

MUMBAI: Urging regulator SEBI to simplify investment and advertisement norms for mutual funds, business leader Anil Ambani on Thursday said investing in them should be as easy as buying smartphones on Internet.

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Mutual funds barely out of teens, can grow 10-fold in 5 years: AmbaniAnil Ambani

Mumbai, June 29

Urging regulator SEBI to simplify investment and advertisement norms for mutual funds, business leader Anil Ambani on Thursday said investing in them should be as easy as buying smartphones on Internet.

He said only one in 25 Indians invests in these products at present, but the investor base can be expanded 10-fold to 60 crore in five years.

“India’s mutual fund industry is today poised for its Jan Dhan moment,” Ambani said here at an event of the Association of Mutual Funds in India (Amfi).

Reeling out figures, the Reliance Group chief said while 9 out of 10 Indians have a mobile connection and 3 out of 10 have a smartphone, only 1 in 25 Indians has an investment in a mutual fund.

“The comparisons in a global context are even more staggering. There are as many as 58 asset management companies in the world which manage more money than India’s entire MF industry put together,” said Ambani whose group firm Reliance Capital runs one of the biggest fund houses of the country.

He said India’s mutual fund industry is a relatively young industry.

“In fact, I would claim it has barely moved out of its teens!” he added.

Recalling that the erstwhile UTI started India’s first mutual fund way back in 1964, Ambani said no private player was there for the next 30 years.

“And it is fitting that the man who is widely regarded as the father of capital markets and the equity cult in India—my late visionary father, Dhirubhai Ambani—was among the first to sense the potential that lay ahead.

“We at Reliance, together with my late brother-in-law, Shyam Kothari, shared the exclusive privilege of launching India’s first-ever private sector mutual fund in 1993 -- Kothari Pioneer Mutual Fund. Our own offering followed soon afterwards with the launch of Reliance Mutual Fund in 1995,” he said.

“From an AUM of under Rs 60 crore in 1995, and Rs 2,200 crore in 2002, we have grown our asset base over 100 times to reach Rs 2.25 lakh crore. As an AMC, we currently manage Rs 3.58 lakh crore. In the same timeframe, India’s mutual fund industry, with 5.7 crore individual accounts, has expanded its AUM to reach Rs 20 lakh crore,” Ambani said.

The industrialist said Sebi (Securities and Exchange Board of India) has historically played a hugely important and proactive role in the development of the capital markets while safeguarding the interest of the small investor.

“It is to our regulator’s immense credit that India is today widely perceived as among the most efficiently run markets in the developing world.

“Going forward, we in the industry need to work closely with you (Sebi) to further simplify the on-boarding process for new investors,” Ambani said while suggesting some steps for the the next 100 days.

His suggestions included making MF investment even simpler, allowing anyone with a legitimate bank account to invest in financial products since their bank KYC is already in place and ensuring better utilisation of technology to improve penetration and facilitate faster transactions.

He also urged Sebi to simplify advertising norms to help communicate the value proposition of mutual funds better.

“These steps will bring in a new class of investors to the mutual fund industry,” he added.

Ambani urged the industry to give the nation an increase in the number of individual investor folios from 6 crore currently to 60 crore in five years when India will celebrate 75 years of Independence.

He also termed the GST (Goods and Services Tax) as India’s ‘economic freedom’ while noting that it would make “a borderless world of 1.3 billion people—producers and consumers engaged in a seamless exchange of goods and services, skill sets and capital, labour and ideas”.

He said the world has seen nothing like this before as “in less than 48 hours, India will emerge as the biggest free and democratic market in the history of humankind”.

“In tandem with its policy precursor—demonetisation—GST will forever change the ground rules of doing any kind of trade, commerce or business in India,” he added. PTI

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29 Jun 2017 | 10:10 AM

MUMBAI: The rupee made a positive start on Thursday by firming up 10 paise to 64.45 against the dollar, with domestic equities playing along.

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29 Jun 2017 | 10:14 AM

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29 Jun 2017 | 1:13 PM

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SEBI chief cautions MFs against letting debt funds bulge

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29 Jun 2017 | 12:53 PM

MUMBAI: Amidst the concerted efforts by the government and RBI to rein in the mounting bad loans issue, SEBI Chairman Ajay Tyagi today cautioned mutual fund (MF) players against letting some of such money flow into the industry by way of debt funds.

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29 Jun 2017 | 12:35 AM

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29 Jun 2017 | 12:35 AM

NEW DELHI:Commerce and Industry Minister Nirmala Sitharaman has written a letter to all Members of Parliament to consider setting up working spaces for startups in their constituency under the Members of Parliament Local Area Development Scheme Fund (MPLADS).

Kohler chief bullish on India

29 Jun 2017 | 12:35 AM

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Godrej Industries to raise Rs 400 crore

29 Jun 2017 | 12:35 AM

New Delhi: Godrej Industries Ltd will sell shares in the initial public offering (IPO) of its group firm Godrej Agrovet to raise up to Rs 400 crore.

Gold climbs Rs 94 on positive global cues

28 Jun 2017 | 11:25 AM

NEW DELHI: Gold prices were trading up by Rs 94 to Rs 28,647 per 10 grams in futures trade on Wednesday as speculators raised bets amid firm global trend.

RIL’s Mukesh Ambani keeps annual salary unchanged at Rs 15 cr

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28 Jun 2017 | 11:23 AM

NEW DELHI: Reliance Industries’ Chairman and Managing Director Mukesh Ambani kept his annual salary capped at Rs 15 crore for the ninth year on the trot and did not even take stock options that were given to other board directors.

Rupee slides 6 paise to 64.59 against US dollar

28 Jun 2017 | 10:21 AM

MUMBAI: The rupee traded lower by 6 paise at 64.59 against the US dollar in early part on Wednesday, pressed by a lower opening in the domestic stock market. Increased demand for the American currency from importers and banks kept the dollar in fine shape.

Markets open on a negative note on Wednesday

28 Jun 2017 | 9:50 AM

MUMBAI: The 30-scrip Sensitive Index (Sensex) on Wednesday opened on a negative note during the morning session of the trade. The Sensex of the BSE after opening at 30,988,87 points touched a high of 31,000.48 points and a low of 30,899.41 points.

Alliance Air launches new flights

28 Jun 2017 | 12:33 AM

NEW DELHI: Air India subsidiary Alliance Air on Tuesday launched new flights connecting Lucknow with the capitals of Uttarakhand, Rajasthan and Madhya Pradesh.

GM dealers fear loss of 15,000 jobs

28 Jun 2017 | 12:33 AM

NEW DELHI: Protesting dealers of General Motors, which is exiting the Indian market, today said around 15,000 people would lose jobs due to the auto major’s move and the government should intervene in the matter.

GST jitters drag Sensex down, bank scrips melt

28 Jun 2017 | 12:33 AM

MUMBAI: A correction-bound BSE Sensex logged its biggest fall in a month, slipping below the 31,000-mark and plunging by 180 points to end at 30,958.25, as banking and PSU stocks led the decline amid lacklustre global cues and jitters ahead of GST rollout.

Govt unlikely to divest entire stake in Air India

28 Jun 2017 | 12:33 AM

NEW DELHI: The BJP-led NDA government is unlikely to go for divesting its entire stake in the debt-ridden national carrier Air India and instead keep a majority stake with it while getting rid of the airlines’ debt.

‘War room’ to deal with crises

28 Jun 2017 | 12:33 AM

NEW DELHI: Equipped with multiple phone lines and computer systems and manned by tech-savvy youngsters, a “mini war room” has been set up in the Finance Ministry to deal with crises related to the implementation of Goods and Services Tax.

GST: Experts predict mayhem in short term

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28 Jun 2017 | 12:34 AM

NEW DELHI: With just three days to go for the launch of GST, experts have predicted that confusion is likely to prevail as the country is not yet ready for the GST. While the organised sector stands to benefit from the new tax regime whereas in an economy where 90% of workers are employed informally, small businesses will face a painful period.

GST impact: Coca-Cola to raise price of aerated drinks

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27 Jun 2017 | 8:01 PM

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Indian renewable market to witness strong growth: Moody’s

27 Jun 2017 | 3:06 PM

MUMBAI: As India is moving towards meeting its commitments under the Paris agreement on climate change, its renewable energy market is likely to witness a strong growth over many years, says Moody’s Investors Service.

Gold prices shine on global cues, jewellers’ buying

27 Jun 2017 | 2:38 PM

NEW DELHI: Gold prices went up by Rs 60 to Rs 29,160 per 10 grams at the bullion market on Tuesday, tracking a firm trend overseas and fresh buying by local jewellers.

Rupee climbs 11 paise against dollar to 64.41

27 Jun 2017 | 10:00 AM

MUMBAI: The rupee firmed up 11 paise to 64.41 against the dollar on Tuesday, taking support from foreign capital inflows and a higher opening in domestic equities.

Now, CVC can probe graft in private banks

27 Jun 2017 | 12:58 AM

NEW DELHI:The Central Vigilance Commission (CVC) can now probe allegations of corruption in private sector banks and against their employees.

Amul eyes Rs 50K cr turnover by 2020

27 Jun 2017 | 12:58 AM

NEW DELHI:Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which markets the popular Amul brand of milk and dairy products, aims to achieve a turnover of Rs 50,000 crore and become the largest FMCG organisation in India by 2020-21.

Lupin founder Gupta dies at 79

27 Jun 2017 | 12:58 AM

NEW DELHI:Founder and Chairman of pharma major Lupin, Desh Bandhu Gupta passed away today in Mumbai.

RBI move on NPAs to be positive for banks, says Crisil

27 Jun 2017 | 12:58 AM

NEW DELHI:The RBI recently referred 12 large non-performing assets (NPAs) in the banking system for resolution under the Insolvency and Bankruptcy Code, 2016 (IBC) and a time-bound resolution of these cases will indeed be a big positive for bank balance sheets, says a Crisil Research report.

Govt defers TDS, TCS provisions under GST

27 Jun 2017 | 12:58 AM

NEW DELHI:The government today deferred implementation of tax deduction at source (TDS) and tax collection at source (TCS) provisions besides exempting from registration small businesses supplying and selling on e-commerce platforms.

GM dealers to protest today

27 Jun 2017 | 12:58 AM

NEW DELHI:Dealers of General Motors, which has decided to stop selling vehicles in India by the year-end, will demonstrate at Jantar Mantar tomorrow to protest against the American automaker.

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