Page 19 - Banking Finance August 2024

MUTUAL FUND

Mutual Fund

Sebi tweaks norms for The net assets under management of flexi cap funds in June. Inflows into
the mutual fund industry surpassed the small- cap funds declined to Rs
passive MFs Rs 60 lakh crore mark for the first time 2,263.47 crore, compared to Rs

Sebi has revised norms on investments to reach Rs 61.16 lakh crore as on June 2,724.67 crore in May. Midcap equity
by passively managed mutual fund 30, 2024. schemes witnessed inflows of Rs
schemes in the group companies of The contribution of systematic invest- 2,527.84 crore, compared to 2,605.7
their sponsors. The new rules mandate ment plans touched an all- time high crore. Inflows into large- cap funds in-
that no mutual fund scheme should of 21,262 crore in the reporting creased to Rs 970.4 9 crore in June, as
make any investment in the listed se- month, compared to Rs 20,904 crore against Rs 663.09 crore in the previous
curities of group companies of the spon- in May and Rs 20,371.47 crore in April. month.
sor in excess of 25% of the net assets
Higher inflows into equity mutual funds
of the scheme, except for investments was driven by robust investor senti- 20% TDS on repurchase by
by equity oriented exchange traded
ments on domestic stock market dur- mutual funds & UTI with-
funds (ETFs) and index funds. ing the month. The Sensex and the
Equity oriented ETFs and index funds, Nifty rose around 7 per cent each in drawn
based on widely tracked and non-be- June as the Lok Sabha- related election Finance Minister Nirmala Sitharaman
spoke indices, can make investments in uncertainty settled. In the first quar- announced that 20% TDS rate on re-
line with the weightage of the con- ter ended June 30, total net inflows purchase by mutual funds and UTI has
stituents of the underlying index. into equity mutual funds stood at Rs been withdrawn.
94,222.28 crore. According to the Finance Bill, 2024,
Inflows into equity MFs "The mutual fund industry has demon- the Clause 55 of the Bill seeks to omit
strated remarkable growth, becoming section 194F of the Income-tax Act
rose 17% to all-time high
a cornerstone of financial stability and relating to payments on account of
of Rs. 40,608 crore in June wealth creation for crores of investors. repurchase of units by Mutual Fund or

Net inflows into equity mutual fund The industry continued to benefit from Unit Trust of India (UTI).
sustained flows into equity- oriented
schemes grew by 17 per cent month- The bill further mentioned that the
on- month to an all- time high of Rs mutual funds, hybrid funds and passive said section provides that the person
40,608.19 crore in June, from Rs funds," said Venkat Chalasani, Chief responsible for paying to any person
34,697 crore in May, the latest data Executive, AMFI. any amount referred to in sub-section
from the Association of Mutual Funds Among equity mutual fund schemes, (2) of section 80CCB shall, at the time
in India (AMFI) showed. June marks the sectoral/thematic funds received the of payment thereof, deduct income-tax
40th month of positive inflows into highest net inflows of Rs 22,351.69 thereon at the rate of twenty per cent
equity mutual fund schemes. crore, followed by Rs 3,058.81 crore in (20%). It is proposed to omit the said

BANKING FINANCE | AUGUST | 2024 | 17