Page 16 - Banking Finance March 2021

MUTUAL FUND

public offering. The country's largest authorisation voting, as all the parties UTI Mutual Fund launches
lender plans to ask investment banks in the court had submitted that the
for proposals after discussions with its winding-up should be overseen by a WhatsApp services for
board and shareholder Amundi Asset third-party. investors
Management, it said. This move will help in accelerating the UTI Mutual Fund has introduced 24X7
The process will be started in the next process of repaying funds to WhatsApp chat services. The service
few months, according to news report. unitholders of Franklin Templeton will be available for both the existing
The lender could raise about $1 billion Mutual Fund (FT MF), after the and prospective investors, the
from the offering, one of the people schemes were shut in April last year. company said in a statement.
familiar of this development told. SBI's "Franklin Templeton Mutual Fund will The new service will provide 24x7
mutual fund is currently valued at provide all assistance and co-operation assistance along with live chat option.
about $7 billion, another person said. Investors can easily inquire about about
to SBI Funds Management to monetise
At $1 billion, the first-time share sale the assets. The decision of the Hon'ble NAV, portfolio details, account and
could be India's biggest since the $1.4 Supreme Court to dispense with voting capital gains statements, UFC address,
billion listing by SBI Cards & Payment u/r 41 reduces any potential delay in and more via messaging application. "It
Services Ltd. in March, according to commencing active monetisation of aims to be a self-service channel for
data compiled by Bloomberg. The SBI assets," a spokesperson for FT MF said. investor acquisition, investor servicing
mutual fund business would also be the and investor communication, UTI
"Accordingly, with the consent of the
third such listing of its kind in the Mutual Fund added. The interactions
country, joining UTI Asset parties, we have appointed SBI Funds will be entire secure with end-to-end
Management Co. and HDFC Asset Management to undertake the encryption, the company said.
Management Co. exercise of winding up," the SC bench The WhatsApp chat services will be
said.
SBI's plans to list the mutual fund arm available at +91-7208081230, the
is part of its strategy to extract more Section 41 of the regulations of company said. "The 24X7 chat service
value from its units after divesting Securities and Exchange Board of India will significantly boost investor
some of its stakes in its life insurance (SEBI) requires unitholders to vote on interface via text-based chats and
and cards businesses last year. whether they should authorise the MF updates, and infographics. It is also
trustees to wind-up the schemes or aimed at opt-in users who show an
SBI's mutual fund is the largest in India interest in the company's products and
with Rs. 5 trillion ($68.4 billion) of assets any other third-party should. seek additional information," the
under management, according to its The SC observed that as per the company added.
website. The fund house posted a net submissions made by FT MF and the
income of Rs. 4.98 billion for the April- trustees, more than Rs. 17,000 crore It will also provide easy and convenient
December period, according to an of assets were yet to be realised in the access to information through
investor presentation. SBI holds a 63% six schemes. automated investor support. There will
stake in the mutual fund business, while The court noted that both the SEBI be options to explore mutual funds,
Paris-based Amundi owns the rest. Systematic investment plans (SIPs) and
and trustees had wanted the process index funds via WhatsApp service. A
of liquidation to be handled with calculator to plan investment goals and
SC asks SBI mutual fund to caution, as "offloading securities in risk analyser to know risk appetite will
oversee winding up of haste could result in losses," which also be available on the messaging
debt schemes of Franklin would reduce the realisable value of application.
the underlying debt securities.
Templeton SC said it did not want to give any Besides, customers can use the
WhatsApp chat service for transactions
The Supreme Court gave the mandate specific directions on this to SBI Funds as well. Investors can perform over 30
to SBI Funds Management to oversee Management, but would expect the transactions like investments in SIP,
the winding-up of Franklin Templeton's company to follow the "best effort systematic transfer plan (STP),
wound-up debt schemes. principle" to ensure the payment systematic withdrawal plan (SWP),
The apex court brushed aside the process is timely and that the best pause in SIP and others via 24X7 chat
request for another round of possible value is realised. option, the company said. T

16 | 2021 | MARCH | BANKING FINANCE