BENGALURU | 28 PAGES | .̀ 3.50 ONLY FRIDAY, 30 OCTOBER 2015BENNETT, COLEMAN & CO. LTD.THE ECONOMIC TIMES

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New InvestmentLimits for FundHouses LikelyRedemption pressure

on JPMorgan AMC,

investor losses may

trigger Sebi move

Auto were downgraded by cred-it rating agencies. JPMorganchose to pass on the credit loss toinvestors. The Amtek Auto de-fault rattled the corporate bondmarket, raised risk premium onsecurities, and turned inves-tors’ attention to securities ofother debt-laden companies.

Reena.Zachariah@timesgroup.com

Mumbai: Losses to unit holdersand redemption pressure facedby JPMorgan Asset Manage-ment Company (AMC) in Sep-tember have driven capital mar-ket regulator Sebi to considernew investment limits for fundhouses.

According to a proposal underdiscussion, no fund managerwould be allowed to invest morethan 20% of a scheme in securi-ties issued by companies be-longing to a corporate group.

While there are restrictions onthe maximum amount that canbe invested in a single companyor sector, there is no cap on expo-sure to a single business group.“This is now under review. Also,permissible investment to onecompany and sector would belowered,” said a person familiarwith the subject.

The regulator may simultane-ously introduce a rule to disal-low asset managers from re-stricting redemptions due totheir poor investment decision.

The sector exposure limit islikely to be reduced to 25% from30% while the single issuer limitmay be brought down to 10%from 15%. The additional in-vestment limit of 10% providedfor securities issued by housingfinance companies is also beingreconsidered.

Two debt schemes of JPMor-gan AMC faced redemptionpressure after bonds of Amtek

CHANGE IN THE AIR

Sanjiv Kapoorhas steppeddown as COO of

Spicejet, reports BinoyPrabhakar. Saturday willbe his last day. He is like-ly to join the leadership

team in Vistara.��12

SpiceJet COOSanjiv Kapoormay Join Vistara

Taxi-hailing app Uber is all set to experiment with

peer-to-peer ride-sharing programme in India,

starting with Punjab, reports Harsimran Julka.��6

Uber’s Ride-sharing Pilot

Trai Stands byOrder on CallDrop Penalty

authority, this order of the reg-ulator will continue to standfrom January 1,” Telecom Reg-ulatory Authority of IndiaChairman RS Sharma told re-porters on Thursday.

“The operators must takesteps to prepare themselves toimplement this.”

He said operators were free togo to court to challenge the or-der. “Every association has a le-gitimate right to put up theirconcerns in a legal forum.”

Review of Telcos’ Contention��23

Our Bureau

New Delhi: The telecom regu-lator stood by its order that car-riers must compensate usersfor dropped calls and said itwas technologically possibleto detect whether a call haddropped due to an error on partof the operator or not, dismis-sing claims to the contrary bythe industry.

“It’s a valid regulation. Solong as it is not annulled, modi-fied or cancelled by any legal

Defence minis-

try has told army

to ensure none

of its units indulges in ritual

slaughter of buffaloes.��3

Army Told to HaltBuffalo Slaughter

Our Bureau

Mumbai: The .̀ 3,268-croreinitial public offering of In-terGlobe Aviation attractedstrong demand with the op-erator of no-frills airline In-diGo receiving bids formore than six times theshares on sale. Foreign in-stitutions were the most ag-gressive bidders in the issue— the largest in three years.

Bids for 18.52 Cr Shares��21

IndiGo IPO Receives 6x BidsFIIs aggressive bidders; Jhunjhunwala bids big for HNI shares; retail portion unsold

Fresh RulesSEBI IS REVIEWING SINGLE ISSUER, GROUP ANDSECTOR EXPOSURE LIMITS OF MUTUAL FUNDS

Exposure to a business group may be restricted

to 20%of a scheme

Sector ex-posure limit may be reduced to25%from30%

SINGLEissuer limit may belowered

to 10%from 15%

SEBI ISreviewing rules on restrictionof mutual fundredemptions

Parents’ First Lessons in Schooling

It is that time of the year when parents take the first big deci-sion for their child’s fu-ture – choosing a school. Cut throat com-petition and peer pres-sure dicatate that the children get into the best schools in Ben-galuru. ET lists out what parents should have in mind while choosing a school. 2

NAMMA BENGALURU

The fairer sex com-

prises less than 2%

of the workforce of

marquee companies like Ada-

ni Ports, Bajaj Auto, UltraTech

and Hero MotoCorp.��12

Women Rank Lowin Diversity Index

Companies are dis-

banding the bell-

curve model of per-

formance appraisal or

tweaking it to make the sys-

tem of rating flexible��12

Cos DiscardingBell Curve Model

Facebook Founder and CEO MarkZuckerberg backed the concept ofnet neutrality at a private lun-cheon attended by government of-ficials, lawmakers and industryheads, and said that the future ofthe Internet was moving to aug-mented reality and rich in videocontent, reports Anandita Man-kotia and Gulveen Aulakh.��6

Zuck Backs Neutrality

DEFENDING PM FM insists reservation on basis of religion will eat into quota forbackwards & promote conversions; says Bhagwat’s comments haven’t hurt NDA

RakeshMohan.Chaturvedi@timesgroup.com

Patna: Finance MinisterArun Jaitley has backed PMNarendra Modi’s charge thatthe Grand Alliance is plan-ning to roll out reservationsfor minorities at the expenseof existing beneficiariessuch as Scheduled Castes,Scheduled Tribes and OtherBackward Classes.

Speaking to ET in Patnaduring a campaign trip, Jait-ley warned that the idea ofreservations on the basis ofreligion is “fraught with dan-ger” and may lead to demo-

graphic changes by encou-raging people to convert toChristianity and Islam.

“The Constituent Assemb-ly had rejected religion-based reservations. If youstart speaking in terms ofreservations on the basis ofreligion and an additional

quota forconverts toother reli-gions, whoseshare will

they eat into?” Jaitley said.Jaitley also claimed that

Rashtriya SwayamsevakSangh chief Mohan Bhag-wat had never spokenagainst reservations and de-nied the BJP-led alliance hasbeen pushed to the backfooton this issue.

Retail investors are

gradually moving to

instruments, such as

preference shares and tax-free

bonds, following the recent

slide in bank deposit rates,

reports Saikat Das.��16

Investors Turn to Mkt as FD Rates Fall

Wake-up for Telcos?SHARMA SAYSTrai will review the contention of telcos that the order was unjust and outside the regulator’s purview

COAI D-G says telcos will decide on moving court after Trai review

Trai Chairman RS Sharma says telcos need to compensate users for call drops fromJanuary

He says it is possible to detect whether a call drop is due to an error on part of a telco or not, dismissing claims to the contrary by carriers

COAI SAYSTELCOSTO TAKE DECISION ON TARIFF HIKE INDIVIDUALLY

Off To A Flying StartNO. OF TIMES SUBSCRIBED *Qualified Institutional Buyers FIIs DIIs MFsNon-Institutional Investors Corporates HNIs Retail EmployeesTOTAL

17.8014.960.252.583.571.771.540.920.136.15

Rakesh Jhunjhunwala placed bids for`400 crore of shares in HNI portion (Total Size: `445 crore)

On Monday, co had raised `832 crore from 43 anchor investors

*At 8 pmSOURCE: BSE & NSE

SC has refused to in-crease the ceiling(for quotas), and(minority reserva-tion) will cut into thequota of SCs, STs

GA’s Idea of Religious QuotaFraught with Danger: Jaitley

Has Lalu seen the lev-el of his own publicspeaking? Have Congleaders, seen the qual-ity of his speeches?

FULLINTERVIEW��PAGE 4

ARINDAM

Northern African

nations scuttled In-

dia’s bid for a state-

ment slamming state-backed

terror at the Africa meet.��5

Bid for TerrorStatement Fails