Mutual Funds can hold gold certificates in physical form: Sebi

MFs were allowed to hold such gold deposit certificates only in dematerialised or electronic forms.

Published: October 21, 2013 4:28:02 am

Mutual Funds can hold gold certificates in physical form: Sebi

Mumbai: Market watchdog Sebi has allowed Mutual Funds to hold gold certificates issued by banks in the physical forms as well,in addition to the ones in demat form,for investments made in Gold Deposit Schemes. So far,MFs were allowed to hold such gold deposit certificates only in dematerialised or electronic forms. “Gold certificates issued by banks in respect of investments made by gold ETFs in GDS (Gold Deposit Scheme) can be held by mutual funds in dematerialised or physical form,” the Securities and Exchange Board of India (Sebi) has said in a circular. Sebi said the circular has been issued “to protect the interests of investors in securities and to promote the development of,and to regulate the securities market”. Earlier this year,the market watchdog had allowed gold ETFs of mutual funds to invest in GDS of banks,as part of its efforts to utilise idle assets of the precious metal for more productive purposes.

National Housing Bank’s Rs 2,100 crore tax-free bonds to hit market soon: CMD

New Delhi: The Rs 2,100-crore tax-free bond issue of National Housing Bank will hit the markets soon,a top official of the housing finance regulator said. “We should be opening it soon now. Of the total Rs 3,000 crore,we have already mobilised Rs 900 crore through private placement. Rs 2,100 crore is what we need to raise. And for that we are coming to the market very soon,” National Housing Bank (NHB) chairman and managing director R V Verma told reporters here. The bond will be issued in tenors of 10,15 and 20 years. NHB,the regulator for housing finance companies,was permitted this year to issue tax-free bonds of up to Rs 3,000 crore. Of this,NHB had already raised Rs 900 crore through private placement in August.

Bombay Stock Exchange allows MF distributors to use its infrastructure?

Mumbai: BSE has allowed MF distributors to use its infrastructure for purchase and redemption of mutual fund units directly from Assets Management Companies (AMCs) on behalf of their clients following a Sebi directive. In a circular,BSE said an entity seeking to register itself as MF Distributor on its mutual fund platform in a move to use the exchange’s infrastructure is required to have a networth of at least Rs 1 lakh on the basis of audited balance sheet of latest financial year. For an individual,the exchange has set a minimum tangible assets worth Rs 1 lakh. Also,the exchange would charge a one-time fee of Rs 15,000 for membership. MF distributors would not handle payout and pay in of funds as well as units on behalf of investor. “The pay-in will be directly received by recognised Clearing Corporation and payout will be directly made to investor’s account. “In the same manner,units shall be credited and debited directly from the demat account of the investors by the Clearing Corporation,” BSE said.

Sebi study suggests lowering of STT

Mumbai: A Sebi commissioned study has suggested lowering of Securities Transaction Tax (STT) to boost the capital market. The study,conducted by independent experts for Sebi’s Development Research Group,found that spot-market has been dominating the futures and option (F&O) markets and that the dominance of futures market over options has diminished after the increase in STT. Consequently,it said,“STT on protective-put and hedged- call positions should be reduced to give boost to the option market.” STT,which was introduced in 2004,is levied on the sale and purchase of equities. The government,in March,had lowered the STT by 20 per cent to 0.1 per cent from 0.125 per cent,in a bid to bring down costs of equity transactions. According to estimates,STT accounts for 51 per cent of the transaction cost in stock markets. The present study examined the impact of increased derivatives trading in India on the price-discovery process by studying F&O on NSE Nifty and 10 other randomly-selected stocks on the exchange.

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