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SBI MF launches One India Fund
SBI Mutual Fund has announced the launch of its close-ended growth fund, SBI One India Fund. The new fund offering (NFO) period would be from November 24 to December 22, 2006.
The investment objective of the scheme would be to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of equity stocks focussing on all four regions of India and in debt and money market instruments. The scheme has a tenure of 3 years. On maturity, the scheme will be automatically converted into an open-ended scheme.
The fund would invest a minimum of 70% in equity/ equity related instruments, while 0% to 30% is proposed to be invested in a mixture of debt and money market instruments. The fund also plans to invest 0% to 20% in ADR, GDR and foreign securities.
The SBI One India Fund will have growth and dividend investment options. The scheme will have a minimum application of Rs 5,000 and in multiples of Rs 1 per application.
The scheme does not carry any entry load during the NFO period. No exit load is applicable for the scheme. The scheme reopens for continuous repurchase from January 19, 2007.The performance of the scheme has been benchmarked against BSE 200 Index.
HDFC, Chubb may suspend partnership
The talks between HDFC and Chubb`s, US based insurer to discontinue the non-life partnership - HDFC Chubb General Insurance are stuck in a deadlock, since both the partners are keen on taking over the business, reports Economic Times.
The two partners have approached the Insurance Regulatory and Development Authority (IRDA) to find out available options.Even though HDFC is a majority partner with 74% stake in the company, the products, process and systems are largely from Chubb.Unlike the life venture, where the CEO is from HDFC, Shrirang Samant, managing director of HDFC Chubb is from the US insurance company.
Like in most US companies, the different lines of business have vertical reporting structures with heads for many activities based outside the country. Chubb Corporation has assets of over USD 30 billion and it claims to be among the world`s largest and finacially strongest insurance company.
However, IRDA, at the point of issuing a new license, gives strong weightage to the quality of promoters. Therefore, a new majority partner who comes in would have to fulfill all the conditions for acquiring a fresh license from IRDA. This will include a fresh business plan.
This would also mean that even if Chubb finds some other partner, IRDA would have to be convinced about the partner`s ability to bring in additional capital to meet solvency requirements.On the other hand, while HDFC can buy out Chubb and convert its non-life subsidiary into a wholly-owned venture, it will no longer have access to Chubb`s expertise.
SEBI proposes 25% premium to SHs on delisting
The Securities and Exchange Board of India (SEBI) on Thursday proposed a substantial increase in the offer price set by companies for delisting shares from stock markets, reports Business Standard.
The move is yet another initiative by SEBI, aimed at helping small investors realize a higher price while tendering their shares to promoters for delisting. Under the proposal, the offer price would have to be at least 25% more than the floor price set for buying back the shares from public shareholders, or a fair value determined by an accredited rating agency added to a premium of 25%.
The capital market regulator also proposed to correct the anomaly with regard to the reference date for calculation of the floor price. The floor price would be determined by the date on which the stock exchanges were notified of the board meeting at which the delisting proposal was considered.
The regulator has invited public comments on the concept paper by December 14.The changes have been necessitated since it was increasingly felt that the book building process, which was to aid in the determination of a fair exit value for shareholders, was not fully achieving its objective.
The regulator also felt that the perceived investor friendliness of the price discovery mechanism was not necessarily translating into genuine discovery of price.
With regard to the eligibility criteria for delisting of shares, SEBI said it wanted to introduce a level of 10% of public shareholding, as is the practice internationally, as the breach percentage level for delisting.
It also proposed to introduce a minimum subscription level for delisting offers.
The success of the offer depends on a minimum subscription resulting in the public shareholding reducing below 10% or 4%.
Thus, the promoter holding should breach the 90% or 96% level, as the case may be, depending on the categorisation of the company.
The new proposals come in the wake of a realisation that the existing book building process for price discovery was giving disproportionate powers to public shareholders holding a major chunk and the possibility of frivolous bids to destabilise the delisting offer.
The freedom to the promoters to reject the price discovered and revision of bids lead to cartelisation in the price discovery.
Also, under the new proposal, the book building mechanism would be available to all shareholders both in demat mode and as physical shares, which earlier was available only to demat shareholders.
SBI Mutual Fund has announced the launch of its close-ended growth fund, SBI One India Fund. The new fund offering (NFO) period would be from November 24 to December 22, 2006.
The investment objective of the scheme would be to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of equity stocks focussing on all four regions of India and in debt and money market instruments. The scheme has a tenure of 3 years. On maturity, the scheme will be automatically converted into an open-ended scheme.
The fund would invest a minimum of 70% in equity/ equity related instruments, while 0% to 30% is proposed to be invested in a mixture of debt and money market instruments. The fund also plans to invest 0% to 20% in ADR, GDR and foreign securities.
The SBI One India Fund will have growth and dividend investment options. The scheme will have a minimum application of Rs 5,000 and in multiples of Rs 1 per application.
The scheme does not carry any entry load during the NFO period. No exit load is applicable for the scheme. The scheme reopens for continuous repurchase from January 19, 2007.The performance of the scheme has been benchmarked against BSE 200 Index.
HDFC, Chubb may suspend partnership
The talks between HDFC and Chubb`s, US based insurer to discontinue the non-life partnership - HDFC Chubb General Insurance are stuck in a deadlock, since both the partners are keen on taking over the business, reports Economic Times.
The two partners have approached the Insurance Regulatory and Development Authority (IRDA) to find out available options.Even though HDFC is a majority partner with 74% stake in the company, the products, process and systems are largely from Chubb.Unlike the life venture, where the CEO is from HDFC, Shrirang Samant, managing director of HDFC Chubb is from the US insurance company.
Like in most US companies, the different lines of business have vertical reporting structures with heads for many activities based outside the country. Chubb Corporation has assets of over USD 30 billion and it claims to be among the world`s largest and finacially strongest insurance company.
However, IRDA, at the point of issuing a new license, gives strong weightage to the quality of promoters. Therefore, a new majority partner who comes in would have to fulfill all the conditions for acquiring a fresh license from IRDA. This will include a fresh business plan.
This would also mean that even if Chubb finds some other partner, IRDA would have to be convinced about the partner`s ability to bring in additional capital to meet solvency requirements.On the other hand, while HDFC can buy out Chubb and convert its non-life subsidiary into a wholly-owned venture, it will no longer have access to Chubb`s expertise.
SEBI proposes 25% premium to SHs on delisting
The Securities and Exchange Board of India (SEBI) on Thursday proposed a substantial increase in the offer price set by companies for delisting shares from stock markets, reports Business Standard.
The move is yet another initiative by SEBI, aimed at helping small investors realize a higher price while tendering their shares to promoters for delisting. Under the proposal, the offer price would have to be at least 25% more than the floor price set for buying back the shares from public shareholders, or a fair value determined by an accredited rating agency added to a premium of 25%.
The capital market regulator also proposed to correct the anomaly with regard to the reference date for calculation of the floor price. The floor price would be determined by the date on which the stock exchanges were notified of the board meeting at which the delisting proposal was considered.
The regulator has invited public comments on the concept paper by December 14.The changes have been necessitated since it was increasingly felt that the book building process, which was to aid in the determination of a fair exit value for shareholders, was not fully achieving its objective.
The regulator also felt that the perceived investor friendliness of the price discovery mechanism was not necessarily translating into genuine discovery of price.
With regard to the eligibility criteria for delisting of shares, SEBI said it wanted to introduce a level of 10% of public shareholding, as is the practice internationally, as the breach percentage level for delisting.
It also proposed to introduce a minimum subscription level for delisting offers.
The success of the offer depends on a minimum subscription resulting in the public shareholding reducing below 10% or 4%.
Thus, the promoter holding should breach the 90% or 96% level, as the case may be, depending on the categorisation of the company.
The new proposals come in the wake of a realisation that the existing book building process for price discovery was giving disproportionate powers to public shareholders holding a major chunk and the possibility of frivolous bids to destabilise the delisting offer.
The freedom to the promoters to reject the price discovered and revision of bids lead to cartelisation in the price discovery.
Also, under the new proposal, the book building mechanism would be available to all shareholders both in demat mode and as physical shares, which earlier was available only to demat shareholders.
posted by SY at 11:39 AM
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