Page 16 - Banking Finance February 2024

MUTUAL FUND

Mutual Fund

News

Indan i-bankers' 2023 The second highest fee source was the mendous amount of liquidity in retail,
fee from equity capital market (ECM) and their ownership of equities is ris-
earnings highest since underwritings, which reached USD ing," said Prakarsh Gagdani, former

2000 343.5 million, up 68 per cent over CEO of 5paisa Capital
2023, it said.
Investment bankers laughed all the The benchmark Nifty50 rose 20 per
way to the bank as their fee income ECM activities raised USD 31.2 billion cent in 2023. The Nifty Midcap 100
touched a new record of USD 1.3 bil- in 2023, up 59.6 per cent over 2022, rose 46.6 per cent and the Nifty Small
lion in 2023, growing 28 per cent over making the latest collection figure the Cap 100 rose 55.6 per cent.
the previous year. At USD 1.3 billion in highest since 2021. India's macroeconomic stability, corpo-
estimated fees during 2023, invest- rate earnings, and robust inflows from
ment bankers collected 28 per cent New demat additions domestic institutional investors and
more than they did last year, and this jumped 29% in 2023 foreign portfolio investors (FPI) helped
is the highest since records began in the Indian markets end with gains. The
The number of dematerialised (demat)
2000, according to the data collated US Federal Reserve's dovish pivot and
account additions in 2023 exceeded 31
by LSEG Deals Intelligence, formerly the Bharatiya Janata Party's win in
Refinitiv. million, driven by the rally in the mar-
kets, stupendous gains in small and three out of five key state Assembly
The fee income of investment bankers midcaps, and the robust performance elections further boosted the rally.
got a boost due to higher equity and of initial public offerings (IPOs).
debt issuance volumes which offset the The number of demat accounts Kotak Mutual Fund an-
massive plunge in deal activities.
opened with the two depositories - the nounces change in fund
State Bank of India took the top posi- Central Depository Services (CDSL) and
tion in investment banking fees chart the National Securities Depository managers for six schemes
with a collection of USD 102.7 million, (NSDL) -- rose 28.7 per cent in the Kotak Mutual Fund has announced
which is 7.7 per cent of the country's past 12 months, from 108.1 million to change in fund managers for its six
overall investment banking fee pool, touch 139.2 million. About 4.1 million equity oriented schemes. The fund
according to the agency. demat accounts were added in De- house informed the investors about
The fee income chart was led by cember 2023, making it the highest- this through a notice cum addendum.
ever monthly addition.
M&A's (mergers and acquisitions) con- The notice cum addendum also stated
tributing USD 416.1 million, which was "The 2023 market gave double-digit that the fund house has recently ap-
7 per cent down year-on-year. The deal returns after a muted 2022. This rally pointed Atul Bhole, Rohit Tandon, and
street saw a massive 51 per cent fall was broad-based. All segments, includ- Mandar Pawar as key personnel and
in value over 2022, the agency said. ing microcaps worked. There is a tre- fund managers in Kotak Mutual Fund.

14 | 2024 | FEBRUARY | BANKING FINANCE