Sebi scraps entry load for MFs, cuts fees of intermediaries

The Securities and Exchange Board of India has rationalised disclosure norms for rights issues. The market regulator has allowed investors to choose commission payable to mutual fund distributors and has cut fees for financial intermediaries by 50%. It has also approved the concept of anchor investor. CNBC-TV18 was the first to report these changes on June 16.

The Sebi board which met today approved the concept of anchor investor, which are long-term strategic investors. An anchor investor has to be a qualified institutional buyer and can subscribe up to 30% of the institutional quota. The promoter group cannot be an anchor investor. There will also be a 30-day lock-in period for anchor investors.

On rights issue:

The Sebi board has also rationalised disclosure norms for rights issues. Henceforth, there will be no preferential issue for superior voting rights. Also, no listed company can issue shares with superior rights.

On mutual fund schemes:

Mutual fund investors have a reason to cheer. There will be no entry load on any mutual fund schemes from now on. Distributors will now have to disclose commission for schemes. In a landmark move, mutual fund investors will now decide on the commission payable to distributors.

Fee cut for intermediaries:

The board has decided to rationalise the fees charged by intermediaries. It plans to cut fees for financial intermediaries by 50%. Broker fees for debt deals have been cut to Rs 2.5 per Rs 1 crore of turnover.

On initial public offerings: From here on, companies planning an initial public offering will have to list on at least one national exchange.

Dividend in Just 7 months: Bharti-Axa Equity Fund

The first offer by Bharti AXA Investment Managers (BAIM) in diversified equity space through its BA Equity Fund, an open-end equity growth fund whose investment performance is benchmarked against S&P CNX Nifty index, has managed to pleasantly surprise its investors by announcing a dividend payout today, just seven months from launch.

While BAIM, a joint venture between Bharti Ventures Ltd, AXA Investment Managers and AXA Asia Pacific Holdings, is itself a fairly new asset management company, it is looking to move aggressively in the space to make up for lost time against well-entrenched competitors.

The record date for BA Equity Fund, launched in September 2008, has been fixed as 29th May 2009 and all purchases on or before this date will be eligible for the dividend.

According to Sandeep Dasgupta, CEO, Bharti AXA Investment Managers, “Stringent risk control norms have been the pivot in our investment strategy. It is our stated philosophy that we book profits and share them with the investors.”

 

	Quantum Of Dividend
Bharti AXA Equity Fund* (Plan/ Option)	Re. per unit	% of face value	Record Date	NAV as of 21st May, 09 (Rs.)
Regular Plan – Quarterly Dividend	0.50	5%	May 29,2009	14.18
Regular Plan – Regular Dividend	1.00	10%		14.18
Eco Plan – Quarterly Dividend	0.50	5%		14.21
Eco Plan -  Regular Dividend	1.00	10%		14.21
Institutional Plan – Quarterly Dividend	0.50	5%		-
Institutional Plan - Regular Dividend	1.00	10%		-

* as of May 21, 2009. Face value: Rs 10 per unit.

 

Record date : May 29, 2009

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