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Bajaj Allianz to start a mutual fund

Bajaj Finserv and Allianz Global Investors will set up an 49:51 joint venture to promote a mutual fund. The new company will apply to the relevant authorities, including Sebi for permission to start a new mutual fund. The JV will come up when the uptrend in stock markets is making investors wonder if the bottom is behind them.

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Will Pfizer India make an open offer to Wyeth’s shareholders or will the two merge?

Pfizer is acquiring Wyeth for $68bn in a cash and stock transaction. Both companies have listed subsidiaries in India, Pfizer Limited and Wyeth Limited. The first point of interest for Indian shareholders will be whether this will result in an open offer for Wyeth. It will not, because the transaction has been styled as a merger agreement, in which Pfizer will pay the consideration in cash and stock. Under the Sebi Takeover regulations, an acquisition by way of merger will be exempt from the compulsory open offer clause.

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Interest rates to go up, repo rate and CRR hiked by RBI

RBI’s quarterly policy announcement would have normally continued with its policy stance over the past few months. But anticipation of a change or a pause had built up, given the government winning the trust vote, and inflation easing (from 11.91% to 11.89%, how does that constitute easing). The changed political and supposedly economic environment would give it legroom to pause interest rate hikes.
 

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No credit derivatives for India: global financial centre a distant dream

One drawback of the Indian corporate bond market is the absence of credit derivatives. Regulatory reluctance was a main reason for this phenomenon. This had changed over the years with strong lobbying from all interested parties and the government giving a go-ahead from its side. The government had made announcements to that effect in the 2006-07 Budget and even commissioned a report on making Mumbai a regional financial centre.
 

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Mutual fund investors escape loads on reinvested units

Mutual fund investors in India recently got a reprieve from entry loads, on investments made directly and not through an intermediary. Now, Sebi has given them another piece of good news; a bright spot in an otherwise gloomy equity environment. MF investors will not have to suffer entry loads on bonus units and units given on dividend reinvested.
 

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Indian stock markets: round one to the Fed. But is the illness cured?

Indian stock markets will open today, sharply up. That’s no startling prediction, Asian markets that have already opened have gained and India will be no different. Monday and Tuesday saw India re-coupling with global markets, with the Sensex closing at 16730, down 17% from a week ago.
 

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What is the problem with the Indian corporate debt market?

Sebi too has pitched in to try and revive the corporate debt market. The lack of a vibrant secondary debt market has been one of the biggest cribs of the financial services industry. The primary market is not rocking, either. So, everyone from the finance ministry, the stock exchanges, RBI and Sebi have been putting on their thinking caps, trying to change things, over many years.
 

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Entry load out from Jan 4, will investors go the extra mile?

Sebi has stuck to its word and banned the entry load on direct investments in mutual funds (without going through an agent/broker/collecting bank). It’s a welcome step as it instantly adds about 2% more to the capital invested by an investor, and hence the overall returns go up significantly in the longer run.
 

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