Mumbai :The Securities and Exchange Board of India (Sebi) pulled up the mutual fund industry over the practice of distributing dividends without the consent of trustees. According to sources, the market watchdog took a serious view of this breach during a meeting with independent trustees, who sit on the boards of asset management companies (AMCs).
The meeting was attended by Ajay Tyagi, chairman, Sebi, Madhabi Puri Buch, whole time member, Sebi and more than 80 independent trustees. It was the first meeting between independent trustees and the Sebi chairman Ajay Tyagi.
Tyagi said that the primary reason for calling the meeting was to make sure that MFs have good governance standards and highlighted the importance of safeguarding investors’ interests.
“The industry’s assets under management (AUM) have doubled in the last four years and assets of beyond-15 centres have tripled. Today, the MF industry is 20 per cent of banking system. This shows that retail participation has significantly improved. We must safeguard investors’ interests to retain their trust,” Tyagi told reporters after the meeting.
Sebi presented findings of its recent inspection report, highlighting 25 critical violations committed by the industry participants in recent years. The lapse in distributing dividends was on top of that list, with Sebi officials highlighting the need for a larger discussion on this matter.
The Sebi had recently sent out findings of its inspection report to chief executive officers (CEOs) of all fund houses, warning them against several breaches committed and demanding corrective actions.
Sebi has observed there were several instances where either the trustees’ approval for dividend distribution was not obtained or the power of trustees were delegated to the officials of AMC to declare and fix the record date as well as decide the quantum of dividend under various schemes of the fund.
Dhirendra Kumar, CEO of MF tracker, Value Research, said the market regulator wants the MF industry to not only follow the regulations on paper, but also in spirit. Recently, the balanced funds category saw mis-selling as these schemes were sold on assurance of one per cent monthly dividend yield.
According to CEO of a mid-sized fund house, besides presenting the inspection report, the regulator explained the independent trustees about their role as ‘first-line regulators’.
According to a top industry official, Sebi chief directed independent trustees to conduct technology audits of the AMCs to prevent any possibility of online frauds. The official cited above said that the regulator wants to make sure that its push towards digital is not compromised by any unforeseen events.
There can be cases where investment is done from one account and redemption is done from another. The regulator wants to make sure that such instances don’t happen, especially in smaller towns where investors can be more vulnerable to online frauds,” Kumar added.
Tyagi said there was no specific discussion on distributor commissions, however, Sebi would take up the issue with industry body Association of Mutual Funds in India (Amfi) at a meeting next month.
The regulator also emphasized on the need for improving registrar and transfer agents (RTA) reconciliation, whereby the units allotted by the RTAs didn’t match the money lying with the fund houses in real time.
“The MF industry is a good story and we must make sure that it continues,” Tyagi said.
WPI inflation at 8-month low of 3.80 pc in Dec on softening fuel, food prices
New Delhi: Inflation based on wholesale prices fell to a 8-month low of 3.80 per cent in December, 2018, on softening prices of fuel and some food items.
The Wholesale Price Index (WPI)-based inflation stood at 4.64 per cent in November, 2018, and 3.58 per cent in December 2017. According to the government data released on Monday, deflation in food articles stood at 0.07 per cent in December, against 3.31 per cent in November.
Vegetables, too, saw deflation at 17.55 per cent in December, compared to 26.98 per cent in the previous month. Inflation in the ‘fuel and power’ basket in December slumped to 8.38 per cent, nearly half of 16.28 per cent in November.
This was on account of lowering of prices of petrol and diesel through December. Individually, in petrol and diesel inflation was 1.57 per cent and 8.61 per cent, respectively, and for liquified petroleum gas (LPG) it was 6.87 per cent during December.
Among food articles, potato prices became cheaper substantially with inflation at 48.68 per cent in December, as against 86.45 per cent in November.
Inflation in pulses stood at 2.11 per cent, while in ‘egg, meat and fish’ it was 4.55 per cent. Onion witnessed deflation of 63.83 per cent in December, compared to 47.60 per cent in November.
The 3.80 per cent inflation is the lowest in 8 months, and a lower inflation than this was last seen in April at 3.62 per cent. Data for retail or consumer price index-based inflation would be released later in the day.
The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating monetary policy. In its fifth monetary policy review for the fiscal, last month, the Reserve Bank kept interest rates unchanged, but held out a promise to cut them if the upside risks to inflation do not materialise.
The central bank lowered retail inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.
Air tickets, identity cards to become redundant; flyers can use facial recognition to enter airport
New Delhi: The hassle to show air tickets and identity cards at Airport will be over as air travellers can soon enter airport with facial recognition biometric facility.
GMR Hyderabad International Airport Ltd (GHIAL) that operates the Rajiv Gandhi International Airport (RGIA), has successfully conducted the trial of facial recognition technology. During the first phase of the trial, employees of GHIAL were included. The second phase of the trial is expected to be launched by the end of this month, in which GHIAL will include common air fliers. And if the second phase of the trial is successful, GHIAL will implement facial recognition technology in Hyderabad airport from March onwards.
Three phases of facial recognition technology
First phase: GHIAL has installed facial recognition cameras in the Hyderabad. In the first phase, the imaging of passengers will be done through these cameras which will recognise the faces of the flyers.
Second phase: There would be a centralised registration system for passengers. Each passenger’s face will be attached with his/her photo identity like passport, Aadhaar, voting id, driving licence etc. The details of passengers along with his facial mapping will be scanned and stored by GHIAL through the centralised registration system at the Airport.
Third phase: The ID proof of the passengers along with their facial mapping will be stored at the e-boarding gate of the Airport.The data centres at Airlines will also have similar information. Whenever such passengers book tickets, the data system will alert the Hyderabad Airport authorities.
The moment you book a flight ticket originating from Hyderabad airport, your details will be shared by the data centre and the information will be given to all the concerned authorities.
When you reach the Hyderabad terminal gate, face recognition technology will identify you and all your details will be shared on the screen. The security personnel at the gate will access all your information via the system.
Similarly, your details can be accessed by the security personnel at the check-in counter, security check-in. Once the formalities are done, passengers will get an online boarding pass on their mobile phone.
Maruti all-new WagonR 2019 available for booking at Rs 11,000
New Delhi: Country’s largest car manufacturer Maruti Suzuki India on Monday said that its all-new WagonR is available for booking starting.
Customers can book the 3rd generation WagonR at authorized dealer network across the country by paying Rs 11,000. They can also book the car online.
The New WagonR is powered by the advanced K-series engine offering high fuel efficiency and an unmatched driving experience, Maruti said. The car now comes with a new 1.2 L engine option that delivers powerful and impressive performance coupled with great fuel economy. Customers will also have the choice of 1.0 L engine for the all-new WagonR.
Maruti Suzuki’s acclaimed two pedal technology will also be offered in the new WagonR. The Auto Gear Shift (AGS) offers. Maruti said that for the first it is going to offer the most innovative SmartPlay Studio infotainment experience in the Big New WagonR.
The car will be available in Pearl Poolside Blue, Pearl Nutmeg Brown, Magma Grey, Pearl Autumn Orange, Silky Silver and Superior White Range of variants. The Petrol: 1.0 L engine will be available in Lxi, Vxi / Vxi AGS variants while the Petrol: 1.2 L will be available in Vxi, Vxi AGS, Zxi / Zxi AGS variants.
“The new WagonR gets bigger with enhanced comfort. The car’s sturdy and masculine look with true tall boy design makes for a strong road presence. The Big New WagonR not only embodies strong looks but is also stronger inside out,” Maruti said in a release.