CA Online

Sebi proposal on distributors, advisors can trip mutual funds Business from banks will be adversely impacted, advisors likely to go out of trade The Securities and Exchange Board of India’s (Sebi’s) renewed push to split the role of an investment adviser and distributor is causing a lot of heart burn in the Rs 22 trillion mutual fund industry. The industry, which has been riding high due to robust inflows of Rs 50 billion a month from the systematic investment plan route could suddenly find itself in a situation when one of the prime contributors to the assets under management, banks, will be completely out of action. “If the proposals are implemented, around 40 per cent of inflows will be impacted as wealth management arms of banks will no longer be able to give advice on mutual funds,” said the CEO of a fund house. “The latest proposals will also drive the bulk of the business towards the distribution side,” said Dhirendra Kumar, CEO, Value Research. Distribution per se is

New framework  for algo trading on cards Sebi will soon issue a consultation paper seeking market feed back The Securities and Exchange Board of India (Sebi), in consultation with the finance ministry, is expected to reissue fresh guidelines on high frequency trading (HFT), popularly known as algorithm trading, after taking feedback from market participants. According to sources, the earlier proposal to tighten the algo trading rules, which had been put out by Sebi in August 2016, has been dropped by the ministry.The market´s contention was that the rules were framed without taking all aspects into consideration, were not in line with global practices, did not have sufficient checks and balances, and would have had an adverse impact on liquidity. To review the proposed norms, Sebi constituted in August last year a committee on fair market conduct to suggest measures to improve surveillance of the market and strengthen the rules for algo trades.“We have received several propos

Lok Sabha sends national medical commission bill to parliamentary committee The Lok Sabha sent the National Medical Commission Bill to the Parliamentary standing committee on health for consideration and the panel's report is expected before the budget session.The bill, which is aimed at development and regulation of all aspects related to medical education, medical profession and medical institutions, will replace the much-criticised Medical Council of India with a new commission to ensure transparency and reform. The National Medical Commission Bill, 2017, was introduced in the Lok Sabha on December 29 and was expected to be debated on Tuesday.It spurred a nationwide protest by a doctor's body that led to several private hospitals shutting down their outpatient departments. The Indian Medical Association, a lobby group of 3 lakh doctors, called off the strike after the Lok Sabha referred the bill to the standing committee.After considering the bill and getting comment

Sebi issues fresh consultation papers on investment advisers The Securities and Exchange Board of India (Sebi) on Tuesday proposed new norms for investment advisers, under which they will haveto segregate their advisory and product distribution businesses. However, mutual fund distributors, while distributing the investment product can explainits features to the client. The new proposals would help prevent the conflict of interest between´advising´and´selling´of investment products by the same entity or person."There should be clear segregation between the two activities of the entity providing investment advice and distribution of the investment products/ execution of investment transactions," Sebi said in a discussion paper. The Sebi has sought public comments on the fresh proposals till January23 and the final regulation will be put in place after taking into consideration, views of all the stakeholders. The Business Standard, New Delhi, 03rd January 2018

2017 produced largely satisfactory foreign policy outcomes for India We should look at our foreign policy options realistically and judge our successes and failures keeping in mind that we do not control the policies of other sovereign countries who may view their interests differently from ours, and that even small countries can be defiant. We cannot also put a limit on the presence of outside powers in our neighbourhood. Shaping our external environment as we like for realising our goals and priorities is not possible In the light of these caveats and limitations, our foreign policy in 2017 was largely successful in promoting our interests in an uncertain international environment. We have had to cope with the reality of US foreign policy becoming unpredictable and inconsistent under Trump. We have had to deal with China's growing ambitions in Asia and the expansion of its influence in our neighbourhood at our expense. We have had to cope with the reality of US foreign po

Government to rope in banks, financial institutions to push Swachh Bharat The government is looking at roping in state-run banks and financial institutions to give a push to its Swachh Bharat campaign. The finance ministry will prod lenders to increase credit towards industries, especially small and medium enterprises, involved in sanitation products."DFS (department of financial services) & MDWS (ministry of drinking water and sanitation) join hands to increase rural sanitation credit," financial services secretary Rajiv Kumar stated in a tweet. The department held a video conference with all public sector banks and financial institutions to step up lending for rural sanitation under priority sector lending to households, self-help groups, and small and medium enterprises.State-run banks and financial institutions have been asked to use their corporate social responsibility (CSR) funds towards Swachh Bharat in the next financial year. The finance ministry has also

RBI bonds Scheme not closed :Finance Minister The Finance Ministry today said RBI Bonds Scheme has not been closed but the interest rate on such papers lowered to 7.75 per cent. Yesterday, the government notified that the 8 per cent GoI Savings (Taxable) Bonds, 2003 “shall cease for subscription with effect from the close of business on Tuesday, January 2, 2018.” “The 8 per cent Savings Bonds Scheme, also known as RBI Bonds Scheme, is not being closed. 8 per cent Scheme is being replaced by 7.75 per cent Savings Bonds Scheme,” Economic Affairs Secretary SC Garg said in a tweet. These taxable bonds are meant for individual other than Non-Resident Indians with no maximum limit for investment. In 2003, the government came out with bonds offering 8 per cent interest to encourage retail investors to invest. The bond was open for subscription from April 21, 2003, and had a fixed tenure of six years. There was no upper limit for investment. The Mint, New Delhi, 03rd January 2018