Page 17 - Banking Finance July 2017

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

SEBI releases draft norms Close ended equity scheme launched by Birla Sun Life
for mutual fund distribu- Birla Sun Life Asset Management Com- Company, said. The product aims to

tors, advisors pany (BSLAMC) launched a close-ended generate capital appreciation by in-
equity scheme with a vesting primarily in eq-
The Securities and Exchange Board of tenure of 3.5 years. The uity and equity-related
India (SEBI) product - Resurgent In- securities (including op-
has drafted a dia Fund-Series 4 - is a tions premium), that are
new set of close-ended equity likely to benefit from re-
rules and scheme with a tenure of covery in the Indian
regulations for
Banks, Non-Banking Financial Corpo- 3.5 years from and in- economy.
cluding the date of allot-
rations (NBFCs) and other corporate The scheme will allocate around 80-100
ment, the company, a part of Aditya
bodies offering investment advice. % of assets in equity and equity-related
Birla Financial Services (ABFS), said.
The proposed norms state that mu- securities, and 0-20 % in money mar-
tual fund distributors are explicitly BSLAMC is also the investment man- ket and debt instruments, the state-
not Allowed to give any investment ager for Birla Sun Life Mutual Fund ment said. As part of the investment
advice whereas it is allowed to ex- (BSLMF). strategy, the scheme will book profits
plain the material facts of the MF and "Our NFO looks to provide investors a at opportune moments to take advan-
the associated risk factors of the good opportunity to benefit from com- tage of the volatility in the market. It
scheme. It is mentioned that the panies which stand to appreciate in the may also invest a small portion of its
employees of registered investment corpus in fixed income securities, in-
advisors should be a graduate in any long run, and gain from the turnaround cluding money market instruments, to
discipline. Previously, SEBI allowed in the Indian economy over the 3.5-
only a post-graduate or a graduate year horizon," A Balasubramanian, manage liquidity requirements,
with five years experience in the fi- CEO, Birla Sun Life Asset Management BSLAMC said.
nancial services industry which is still Government Mulls 10% Dividend Tax On Stock-Based
applicable to an individual advisor.
Mutual Funds
The amended proposal also includes
a segregation of advisory and prod- Over 46 million equity-linked retail investors in mutual fund industry may be in
uct distribution businesses of Invest- for a jolt if the goverment goes ahead with its plans to tax dividends at a hefty
ment advisors. If implemented, com- 10% from next fiscal year. This move is likely to see an outgo of around Rs. 740
panies providing investment advisory crore per annum from these investors, say experts. However, industry lobby Amfi
services will have to provide a sepa- expects the government to heed its demand to shelve the plan and has already
rate subsidiary. represented the matter to the finance ministry.

BANKING FINANCE | JULY | 2017 | 17

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