THE ECONOMIC TIMES - The Times of...
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BENGALURU | 28 PAGES | . `3.50 ONLY FRIDAY, 30 OCTOBER 2015 BENNETT, COLEMAN & CO. LTD. T HE E CONOMIC T IMES WWW.ECONOMICTIMES.COM New Investment Limits for Fund Houses Likely Redemption pressure on JPMorgan AMC, investor losses may trigger Sebi move Auto were downgraded by cred- it rating agencies. JPMorgan chose to pass on the credit loss to investors. The Amtek Auto de- fault rattled the corporate bond market, raised risk premium on securities, and turned inves- tors’ attention to securities of other debt-laden companies. Reena.Zachariah @timesgroup.com Mumbai: Losses to unit holders and redemption pressure faced by JPMorgan Asset Manage- ment Company (AMC) in Sep- tember have driven capital mar- ket regulator Sebi to consider new investment limits for fund houses. According to a proposal under discussion, no fund manager would be allowed to invest more than 20% of a scheme in securi- ties issued by companies be- longing to a corporate group. While there are restrictions on the maximum amount that can be invested in a single company or sector, there is no cap on expo- sure to a single business group. “This is now under review. Also, permissible investment to one company and sector would be lowered,” said a person familiar with the subject. The regulator may simultane- ously introduce a rule to disal- low asset managers from re- stricting redemptions due to their poor investment decision. The sector exposure limit is likely to be reduced to 25% from 30% while the single issuer limit may be brought down to 10% from 15%. The additional in- vestment limit of 10% provided for securities issued by housing finance companies is also being reconsidered. Two debt schemes of JPMor- gan AMC faced redemption pressure after bonds of Amtek CHANGE IN THE AIR Sanjiv Kapoor has stepped down as COO of Spicejet, reports Binoy Prabhakar. Saturday will be his last day. He is like- ly to join the leadership team in Vistara.12 SpiceJet COO Sanjiv Kapoor may 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 by Order on Call Drop Penalty authority, this order of the reg- ulator will continue to stand from January 1,” Telecom Reg- ulatory Authority of India Chairman RS Sharma told re- porters on Thursday. “The operators must take steps to prepare themselves to implement this.” He said operators were free to go to court to challenge the or- der. “Every association has a le- gitimate right to put up their concerns in a legal forum.” Review of Telcos’ Contention23 Our Bureau New Delhi: The telecom regu- lator stood by its order that car- riers must compensate users for dropped calls and said it was technologically possible to detect whether a call had dropped due to an error on part of the operator or not, dismis- sing claims to the contrary by the industry. “It’s a valid regulation. So long 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 Halt Buffalo Slaughter Our Bureau Mumbai: The . `3,268-crore initial public offering of In- terGlobe Aviation attracted strong demand with the op- erator of no-frills airline In- diGo receiving bids for more than six times the shares on sale. Foreign in- stitutions were the most ag- gressive bidders in the issue — the largest in three years. Bids for 18.52 Cr Shares21 IndiGo IPO Receives 6x Bids FIIs aggressive bidders; Jhunjhunwala bids big for HNI shares; retail portion unsold Fresh Rules SEBI IS REVIEWING SINGLE ISSUER, GROUP AND SECTOR 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 to 25% from 30% SINGLE issuer limit may be lowered to 10% from 15% SEBI IS reviewing rules on restriction of mutual fund redemptions 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 Low in Diversity Index Companies are dis- banding the bell- curve model of per- formance appraisal or tweaking it to make the sys- tem of rating flexible12 Cos Discarding Bell Curve Model Facebook Founder and CEO Mark Zuckerberg backed the concept of net neutrality at a private lun- cheon attended by government of- ficials, lawmakers and industry heads, and said that the future of the Internet was moving to aug- mented reality and rich in video content, reports Anandita Man- kotia and Gulveen Aulakh.6 Zuck Backs Neutrality DEFENDING PM FM insists reservation on basis of religion will eat into quota for backwards & promote conversions; says Bhagwat’s comments haven’t hurt NDA RakeshMohan.Chaturvedi @timesgroup.com Patna: Finance Minister Arun Jaitley has backed PM Narendra Modi’s charge that the Grand Alliance is plan- ning to roll out reservations for minorities at the expense of existing beneficiaries such as Scheduled Castes, Scheduled Tribes and Other Backward Classes. Speaking to ET in Patna during a campaign trip, Jait- ley warned that the idea of reservations on the basis of religion is “fraught with dan- ger” and may lead to demo- graphic changes by encou- raging people to convert to Christianity and Islam. “The Constituent Assemb- ly had rejected religion- based reservations. If you start speaking in terms of reservations on the basis of religion and an additional quota for converts to other reli- gions, whose share will they eat into?” Jaitley said. Jaitley also claimed that Rashtriya Swayamsevak Sangh chief Mohan Bhag- wat had never spoken against reservations and de- nied the BJP-led alliance has been pushed to the backfoot on 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 SAYS Trai 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 from January 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 SAYS TELCOS TO TAKE DECISION ON TARIFF HIKE INDIVIDUALLY Off To A Flying Start NO. OF TIMES SUBSCRIBED * Qualified Institutional Buyers FIIs DIIs MFs Non-Institutional Investors Corporates HNIs Retail Employees TOTAL 17.80 14.96 0.25 2.58 3.57 1.77 1.54 0.92 0.13 6.15 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 pm SOURCE: BSE & NSE SC has refused to in- crease the ceiling (for quotas), and (minority reserva- tion) will cut into the quota of SCs, STs GA’s Idea of Religious Quota Fraught with Danger: Jaitley Has Lalu seen the lev- el of his own public speaking? Have Cong leaders, seen the qual- ity of his speeches? FULL INTERVIEW 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 Terror Statement Fails
Transcript of THE ECONOMIC TIMES - The Times of...
BENGALURU | 28 PAGES | .̀ 3.50 ONLY FRIDAY, 30 OCTOBER 2015BENNETT, COLEMAN & CO. LTD.THE ECONOMIC TIMES
WWW.ECONOMICTIMES.COM
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.
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
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
