Plan and Policy

Plan & Policy

Mahindra MF launches Dhan Sanchay Yojana balanced fund

Mahindra Mutual Fund announced the launch of a new fund offer (NFO)— a balanced fund called “Mahindra Mutual Fund Dhan Sanchay Yojana”.
The new fund aims to generate long-term capital appreciation and income through investments in equity and equity-related instruments, arbitrage opportunities and debt & money market instruments. The NFO opens on January 10 and closes on January 24. The fund would allocate 65 to 85 per cent of the corpus to equity, including 15 to 35 per cent to equity arbitrage, and 15 to 35 per cent to debt instruments and money market securities.

Two-wheeler insurance sees traction with long-term plans

For the two-wheeler insurance sector, renewals have remained a pain area. However, months after introducing long-term policies, insurance companies are now seeing better growth in the renewals.
According to the data from online insurance aggregator Policy Bazaar, two-wheeler insurance renewals have shot up several times this year.

Online-offline gold experience crucial: WGC

Millennials want to experiment with different investment options and look for both offline and online sources of information while making investments. Hence, seamless integration of online and offline gold experiences can act as a unique differentiator and will be critical to engaging digitally savvy millennials for the future, finds the World Gold Council.

E-payment for overtime hits workers, firms

The recent amendment to the Payment of Wage Act for moving to a cashless system has come as a blow to companies, which find it difficult to make overtime payments to daily wagers who put in more than 72 hours of extra work in a quarter. Many workers put in more than the permissible 72 hours of overtime in a quarter and companies pay them in cash ‘adjusting’ it suitably in their books. The companies, were, however, not recording the payment made for overtime in excess of permissible limit. But this practice cannot continue now as wages can be paid only electronically or through cheques.

BNP Paribas draws up big plans for Sharekhan

BNP Paribas will invest ¤70 million or approximately Rs 500 crore by 2020 in its newly acquired broking arm Sharekhan to expand its presence in the capital market.
Sharekhan, now owned by BNP Paribas after its acquisition last year, aims to double its customer base in five years from the current 1.4 million and is also looking to be among the top 15 mutual fund distributors in the country with Rs 20,000 crore in mutual fund assets under management.

Sebi issues guidance note on evaluation of boards

Sebi on Thursday came out with a detailed guidance note for evaluation of boards of listed companies, including the role of independent directors.
The markets regulator has also extended the deadline for companies listed on non-operational bourses to submit their future action plan until March 31, besides relaxing the rules for investment by angel funds and cracking down on secret profit sharing agreements between private equity funds and promoters of listed firms.

Bank stocks begin slow climb

Lending rate cuts announced by banks have provided a glimpse of better days ahead, though with a lag due to short-term demonetisation impact.
The Prime Minister announced interest rate subvention for low cost housing, which hurt bank stocks as trading in banks stocks began in the new year. The bank stocks have so far have taken it on the chin in the new year as investors saw lending rate cut hurting banks’ profitability. But, bank stocks bounced back on Thursday but, say analysts, banks will have to take innovative steps to perform well.

Buying sentiment nosedives in top cities in December

Thanks to demonetisation, Indian consumers’ keenness towards making purchases has fallen 61 per cent in December, the lowest level in nine months. Among the top cities, Delhi’s buying propensity fell the most, as it went into the negative territory.
India’s Buying Propensity Index (BPI), measured regularly by brand intelligence company TRA Research, stood at 0.26 in December, down 61 per cent or 0.42 points from 0.68 in November.

As bad loans run deep, banks mull ‘deep rejig’

The asset quality review has completed one year but the problem of bad loans is far from over. Against this background, bankers are brainstorming a new proposal on ‘deep restructuring’ to revive stressed assets. Sources said the Indian Banks Association (IBA) has held three meetings on this and another one would be held of January 17 to decide the broad contours of such a scheme. They will later submit the plan to central bank for approval.
In a deep restructuring, banks typically convert a portion of debt into equity and also extend the repayment period for the rest of the loan.

Bonus, ESOPs on the cards for bank staff from FY18

Banks Board Bureau (BBB) chief Vinod Rai (in pic) on Thursday suggested fixing a minimum six-year term for appointment to senior positions in state-run banks. This is expected to ensure greater stability and accountability in the public sector banks.
Rai also said that employees of the public sector banks would get higher pay package and attractive perks from next fiscal so as to attract the best talent from the market and retain them. On the lines of the private sector, bank executives would get bonuses, variable pay and ESOPs as part of the total compensation.