Page 18 - Banking Finance May 2019 N

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

Tata Mutual Fund Debt mutual funds have Rs 76,000 crore exposure to

launches 'Video KYC' NBFC sector
Tata Mutual Fund has launched Debt mutual funds had a total exposure of around Rs 76,000 crore to the sec-
"video tor, making them one of the biggest source of
KYC" as a funds for the non-bank lenders, according to
digital so- data from Value Research.
lution to Among MFs, HDFC group has the largest expo-
continue sure worth around Rs 6,200 crore across three
paperless funds followed by Kotak Liquid Fund with total
know your customer (KYC) verifica- exposure worth Rs 3,972.2 crore at the end of
tion. Video KYC requires an investor last month. Other big investors include Aditya Birla Mutual Fund and SBI.
to update their details and upload
"NBFCs have been facing liquidity crisis since October last year. For investors, it
identity proof i.e. PAN card, address
could mean postponement of returns," says G Chokkalingam, Founder,
proof, photograph, a cancelled Equinomics Research and Advisory.
cheque, and signatures on the AMC's
website. However, he ruled out loss of capital in cases where the underlying asset base
is strong. "Liquidity crisis can be overcome if the underlying asset quality is not
On uploading all documents, the in- questionable," he added.
vestor is required to start real-time
video recording using the front cam- LIC Mutual Fund seeks SEBI nod for overnight debt
era on his/her smartphone or com-
puter and display a hard copy of all scheme
the documents for five seconds each. LIC Mutual Fund has sought the Securities and Exchange Board of India (SEBI)'s
Investors have to say 'Hi' followed by approval to launch LIC Overnight Fund, an open-
the investor's name at the end of the ended debt scheme investing in overnight securities,
video recording. 'How to do video according to the draft offer document on the
KYC' by Tata Mutual Fund is currently regulator's website.
available in English and Hindi and will The scheme will deploy its entire assets in overnight
shortly be available in 4 other lan- securities, which includes debt and money market
guages viz. Bengali, Kannada,
instruments with residual maturity of a single business day. Overnight securities
Malayalam, Tamil and Telegu assist-
also include synthetic overnight positions such as reverse repo/tri-party repo and
ing the customer about the simpli-
other derivative transactions, where the interest rate is reset every business
fied 'Video KYC' procedure.
day.
18 | 2019 | MAY | BANKING FINANCE