SEBI has directed stock exchanges, depositories, mutual funds, AMCs, Trustee Companies and Boards of Trustees of MFs to take necessary steps to implement the Rajiv Gandhi Equity Savings Scheme (RGESS). A notification for the RGESS was issued by the Ministry of Finance (MoF) on November 23, 2012. In light of that notification, the SEBI has clarified the following:
- For RGESS eligible close-ended MF schemes, advice given by AMCs to the depository for extinguishing units of close-ended schemes upon maturity of the scheme will be considered as settled through depository mechanism and therefore RGESS compliant. Also, AMCs will need to disclose that RGESS eligible ETFs and MF schemes are compliant with the guidelines notified by MoF on November 23, 2012, in the Scheme Information Document (SID) if it is a new scheme, or in an addendum for existing eligible schemes.
- The MoF notification provides that RGESS eligible securities credited to an investor’s demat account will automatically be subject to lock-in during the first year. The investor will need to specify (by filling up Form B), if he does not want such securities to be included within the above limit of investment. He will need to submit this form with its Depository Participant within 1 month from the date of transaction. For their part, Depositories may seek necessary transactional details from stock exchanges to enforce lock-in for transactions undertaken by investors through their RGESS designated demat account.
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Tata MF CEO steps down
Sanjay Sachdev resigned as the President and CEO of Tata Asset Management Company from November 30, 2012 due to personal reasons, as per a press release issued by the AMC.
New scheme launched
IDBI Mutual Fund launched IDBI Gilt Fund with the investment objective ‘to provide regular income along with opportunities for capital appreciation through investments in a diversified basket of central government securities, state government securities and treasury bills.’ The NFO period is from December 5 to on December 17, 2012. Its performance will be benchmarked against CRISIL Gilt Index and it will be managed by Gautam Kaul.
Change in scheme offering
PineBridge Mutual Fund has stopped offering weekly dividend reinvestment option for transactions on the platforms of NSE and BSE under PineBridge India Liquid Fund, PineBridge India Treasury Fund and PineBridge India Short Term Fund.
Quantum Mutual Fund introduced the Interbank Mobile Payment System as a mode of payment for online subscriptions application made from December 4, 2012.
BOI Axa Mutual Fund introduced BOI Axa SIP Shield facility in BOI Axa Equity Fund and Tax Advantage Fund from December 6, 2012. The AMC may provide a Group Insurance cover to all resident Individual/ NRI Applicants and fund the premium towards such cover. The insurance cover will be available for individuals with a minimum age of 18 years and maximum age of 45 years as on last birthday. The insurance cover will start from the date of first allotment of units under SIP Shield. The minimum SIP tenure for availing the facility is 3 years and the minimum application is Rs 1500.
Changes in exit loads
ICICI Mutual Fund revised exit loads under two schemes from December 3, 2012. Under ICICI Prudential MIP 5, it has begun charging an exit load of 1% if units are redeemed or switched out up to 6 months from allotment and Nil thereafter. Meanwhile, under ICICI Prudential Ultra Short Term Plan, an exit load of 0.25% will be applicable if units are redeemed or switched out up to 6 months from allotment and Nil thereafter.
DWS Mutual Fund has begun charging an exit load of 1% under DWS Investment Opportunity Fund from December 3, 2012 if units are redeemed or switched out within 3 months of allotment.
Edelweiss Mutual Fund changed the exit loads of Edelweiss Absolute Return Fund, Equity Enhancer Fund, Select Midcap Fund and Diversified Growth Equity Top 100 Fund from December 6, 2012. The revised load for all the schemes except Diversified Growth Equity Top 100 Fund will be 1% if units are redeemed within 365 days from the date of allotment. For Diversified Growth Equity Top 100 Fund, a load of 3% shall be charged if units are redeemed within 365 days from allotment; 2% if redeemed after 365 days but within 730 days and 1% for redemption after 730 days but within 870 days from allotment.
Dividends declared
UTI Mutual Fund declared dividend under UTI Master Plus Unit Scheme. The quantum of dividend is Rs 2.00 per unit with the record date set as December 12, 2012.
Tata Mutual Fund declared dividend under the dividend option of Tata Ethical Fund. The quantum of dividend is Re 1 per unit with the record date set as December 7, 2012.
