Tag: Investments

India invites US investments under Make in India scheme

India invites US investments under Make in India scheme

30/08/2016 16:34

India today invited American investments under the Make In India scheme, as the government strives to make the country a manufacturing hub.

Speaking at the US-India CEO Forum, which was attended by US Secretary of Commerce Penny Pritzker and several top Indian industrialists, Commerce Minister Nirmala Sitharaman invited the American investment to the country.

The meeting was as part of the second strategic and commercial dialogue, which happened between India and the US today.

Top Indian industrialists and bankers including Cyrus Mistry, Sunil Bharti Mittal, Deepak Parekh, Kumar Mangalam Birla, Chanda Kochhar, Anand Mahindra, and Hari S Bhartia, were present at the meeting.

During the meeting, India and the US held detailed discussions on infrastructure funding and renewable energy, and ways to promote innovation and entrepreneurship, said sources.

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PE investments in India eases to 3-year low: Report

20/06/2016 11:15

Private equity space turned off-colour in May as PE investments slid to a three-year low due to absence of sizeable amounts, says a report.

According to Grant Thornton, the global advisory, tax and assurance firm, there were 71 PE deals worth of USD 518 million clinched in May while it was 68 transactions worth USD 1,248 million in the same month last year.

“While the deal momentum is good, there will be some big-ticket transactions, especially in the PE space,” Prashant Mehra, Partner at Grant Thornton India LLP, said.

The PE investment activity increased marginally in volume terms, but investment value fell to the lowest in the last three years. Outlook for this space looks bullish though.

“As India remains a hot favourite for PE investors, the government’s ongoing measures towards easing statutory regulations and ease of doing business will perhaps facilitate those large investments,” Mehra added.

May was dominated by investments in start-ups which contributed 72% to total volumes.

Start-ups in sectors like travel, transport and logistics, education, financial and health technology took pole position.

The consolation is May saw one of the largest investments this year in Indian technology ecosystem, with Khazanah committing USD 100 million in Fractal Analytics.

“IT and ITeS along with start-ups and e-commerce segments have ruled the sector trend this month, contributing almost 45 per cent to the total deal values across M&As and PEs,” Mehra said.

Investments via P-Notes down to 18-mth low of Rs 2.18 lakh cr

21/03/2016 16:06

Investments through participatory notes (P-Notes) into India’s capital markets declined to 18 month low of Rs 2.18 lakh crore at the end of February, amid sluggish equity markets, said the media report.

P-Notes, which are mostly used by overseas HNIs (high net worth individuals), hedge funds and other foreign institutions, allow investors to invest in Indian markets through registered foreign portfolio investors (FPIs), the key driver of Indian markets.

This saves time and cost for them, but the flip side is that the route can also be used for round-tripping of black money.

According to Sebi data, total value of P-Notes investment in Indian markets (equity, debt and derivatives) has been falling since October.

It declined to Rs 2,17,740 crore at the end of February from Rs 2,31,317 crore in the previous month.

Total value of P-Notes investment in Indian markets stood at Rs 2.58 lakh crore, Rs 2.54 lakh crore, Rs 2.35 lakh crore and Rs 2.31 lakh crore in October, November, December and January, respectively. It was Rs 2.54 lakh crore in September, reported PTI.

Of the total, P-Note holdings in equities were at Rs 1.32 lakh crore at February-end and the remaining holdings were in debt and derivatives markets.

The January figure marks the lowest level since August 2014, when the cumulative value of such investments stood at Rs 2.11 lakh crore.

The quantum (percentage) of FII investments via P-Notes rose to 10.7 per cent in February, from 10.5 per cent in the preceding month.

Meanwhile, the benchmark Sensex plunged 7.5 per cent during the period under review.

Earlier this month, Sebi chairman U K Sinha had said that strong measures have been put in place to check any misdemeanors including misuse of the instrument.

Besides, Sebi Whole Time Member S Raman had said that it is difficult to identify the end-users of such instruments.

“But under the new regime, we have limited the rights for who can subscribe to these instruments to only two of the three classes of FPIs. These are sovereign funds and regulated entities. We have debarred others from issuing or subscribing to P-Notes.

“After November 2014, we further tightened the norms as we found that there was a possibility of a gap or some regulatory arbitrage that could have been misused. We closed that gap also,” Raman said.

Till a few years ago, P-Notes used to account for more than 50 per cent of the total FII investment, but their share has fallen over the years after Sebi tightened disclosure norms and other related regulations.

HCG, Bharat Wire IPOs to hit markets this week

HCG, Bharat Wire IPOs to hit markets this week

14/03/2016 09:37

HealthCare Global Enterprises (HCG) and Bharat Wire Ropes, will hit the capital markets this week to tap the upbeat investor sentiments, reported PTI.

The initial public offer of HCG will open on March 16 and close on March 18, while that of Bharat Wire Ropes will begin on March 18 and conclude on March 22.

The IPO of HCG comprises fresh issue of up to 1.16 crore equity shares and an offer for sale of up to 1.82 crore shares by its existing shareholders. PIOF, an investment vehicle of Azim Premji’s PremjiInvest, plans to sell shares through offer for sale. PIOF holds 21 per cent stake in the company.

The company has fixed the price band at Rs 205-218 for its IPO.

The proceeds of the issue will be used for purchasing medical equipment, investment in IT software, services and hardware, pre-payment of debt crore and for other general corporate purposes.

Kotak Mahindra Capital Company, Edelweiss Financial Services, Goldman Sachs (India) Securities, IDFC Securities, IIFL Holdings and Yes Bank are the book running lead managers to the issue.

Bharat Wire Ropes, a speciality wire ropes manufacturing company, aims to raise Rs 70 crore through its IPO. The offer would also include reservation of equity shares worth Rs 3.5 crore for subscription by eligible employees.

Proceeds of the issue would be utilised for setting up a manufacturing plant at Chalisgaon, Maharashtra and for other general corporate purposes.

The issue is being managed by Intensive Fiscal Services and BOB Capital Markets.

The shares of these companies are proposed to be listed on the BSE and the National Stock Exchange (NSE).

AMFI seeks more tax breaks for mutual fund sector

08/02/2016 13:26

Association of Mutual Funds in India (AMFI) in its pre-budget proposals has urged the government to consider additional tax benefits for the investors.

The industry body has sought more tax incentives on ELSS, pension products and infrastructure debt mutual funds.

“We have asked for an equal treatment of pension products of mutual funds and NPS. At the moment, under section 80CCD of the Income Tax Act, NPS is given a priority. We have also sought separate tax exemption for ELSS, which is currently within the 80C limit of Rs 1.5 lakh,” AMFI Chief Executive C V R Rajendran said.

“There is also need for more infrastructure financing. So we also proposed investment of capital gains in infrastructure mutual funds. The 54EC bonds (used to save capital gains) should be exclusively invested in infrastructure mutual funds,” he said this on the sidelines of an Indian Chamber of Commerce summit.

Rajendran further said there is a target to increase the size of the mutual fund industry to Rs 30 lakh crore within three years from the current Rs 13 lakh crore. “But this would require all mutual fund companies to expand their reach. Narrow margins have prevented a rapid expansion. That is what keeping us from moving into smaller markets,” he noted

Life Insurance: 5 reasons why you may be declined!

Life Insurance: 5 reasons why you may be declined!

Planning to choose a life insurance policy for yourself? You may be surprised to know that life insurance companies may not follow the ‘welcome all’ policy they may so advertise.

Every life insurance company has several clauses for declining life insurance cover. Ever wondered what they are? Here are the 6 most common ones that you may not know:

Obesity

Known to be the root cause of major illnesses and conditions, overweight is certainly a red flag for life insurance companies. While being overweight alone may not be a sufficient ground for declining insurance (though the premium may be higher!), its existence with other health risks increases the likeliness of a decline.

Income limitations

Some life insurance companies don’t write a life insurance policy for someone whose income is below a certain level. That level varies between insurance companies.

Elevated Cholesterol, Lipids and Triglycerides

The main concern here isn’t necessarily high cholesterol, but rather the combination of high LDL cholesterol, and low HDL cholesterol. The combination puts you at higher risk for heart disease and stroke.

AIDS/ HIV

Even though AIDS and HIV are better understood now than in the past, and even though survival rates have improved dramatically, some life insurance companies still see them as red flags and may deny your application. However, there are companies out there that will provide life insurance subject to certain tests.

Hazardous occupations

Some occupations carry a higher degree of danger than others. This can make life insurance companies reluctant to approve policies if you are working in an occupation that is considered particularly hazardous.

Previous Declines on Life Insurance Applications

Life insurance companies subscribe to a system that enables them to share information on approvals and denials with other insurance companies. A previous denial is usually a red flag. But this doesn’t mean that just because you’ve been denied a life insurance policy in the past, that you can never be approved by any other life insurance company.

There are several more reasons why you may be denied insurance. But the point of this list isn’t to discourage you from applying for life insurance. Rather, it is to educate and make you aware so that you can go about it in the right way.

If you have been denied Life Insurance:

  • Find out the specific reasons for the denial. You’ll need this information in order to determine your next course of action.
  • Get copies of your medical records. Order copies of any medical records that were used by the life insurance company in declining your application.
  • Work with an independent insurance broker. There are hundreds of life insurance companies, and each takes a somewhat different view of various health conditions. A broker may be able to suggest a company that best suits your health and habits.

Hope this helps to make you an informed choice.