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- Two Indian nationals have gone missing after being swept away by Sunkoshi river in Nepal's Sindhupalchok district, police said.
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- LIBERAL California is on its way to becoming the first American state to mandate gender diversity in companies at board level. A bill approved by the state senate on August 30th requires publicly traded firms headquartered in California to have at least one woman on their boards by the end of next year.
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- *As on 31 July. Schemes with corpus above Rs 100 cr considered. TER is total expense ratio. The difference in TER of direct plan and regular plan is the percentage points difference. Source: Ace MFAnother concern is that while some fund companies have slashed the expense ratio in regular plans, they are not bringing down costs in direct plans the same way. While 56 schemes have seen a fall in expense ratio for regular plans compared to three years ago, 13 of the schemes have raised costs for the direct investor. Experts say if there is scope for reducing costs for the regular plan, it should also translate into lower costs for the direct plan. Overall, 59 schemes are now charging more for direct plans than three years ago even as 82 schemes have raised the costs for regular plan over the same period. The CEO of a mid-sized asset management company points to blatant tinkering of costs by some fund houses. âBy playing around with the fund management fee and taking advantage of the fungibility allowed by Sebi in charging the expense ratio, few fund companies may be keeping costs artificially high for direct plans,â he says. This is visible in some schemes, where the stated fund management fee as percentage of the scheme corpus is higher for the direct plan.What should investors do?Direct plans are attractive because of the cost savings they offer relative to the regular plan, allowing the investor to build a bigger corpus over time. The impact of higher expense on returns can be significant. Even so, direct plans are meant for investors who are well-versed with the market and can devote their time to identify the right scheme and monitor performance. But for the vast majority who do not understand the risks involved and cannot keep track of fund performance, it is best to invest through an adviser. If the cost differential between the regular and direct plans is not sufficiently large, the benefits of guidance from an adviser will far outweigh the savings offered by direct plans. âThe difference between the direct and regular plan should ideally be more than 1% to materially benefit the investor,â says Shah.
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- In a major move to stem out the menace of money laundering, India and Cyprus on Monday signed a MoU on the same.
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- HYDERABAD, SEP 3
- - Telangana Principal Secretary IT Jayesh Ranjan and Arjen Van Tunen, CEO of KeyGene lighting the lamp during a symposium on 'Impact of New Breeding Technologis in Agriculture' in Hyderabad on Monday. UNI PHOTO-46U
- - Telangana Principal Secretary IT Jayesh Ranjan and Arjen Van Tunen, CEO of KeyGene lighting the lamp during a symposium on 'Impact of New Breeding Technologis in Agriculture' in Hyderabad on Monday. UNI PHOTO-45U
- - Telangana Principal Secretary IT Jayesh Ranjan addrssing a symposium on 'Impact of New Breeding Technologis in Agriculture' in Hyderabad on Monday. UNI PHOTO-44U
- CHANDIGARH, SEP 3
- - Street vendors taking out a againt Minicipal Corporation of Chandigarh (MCC) to press their verious demands, in Chandigarh on Monday. UNI PHOTO-43u
- - Street vendors taking out a againt Minicipal Corporation of Chandigarh (MCC) to press their verious demands, in Chandigarh on Monday. UNI PHOTO-42u
- - Street vendors taking out a againt Minicipal Corporation of Chandigarh (MCC) to press their verious demands, in Chandigarh on Monday. UNI PHOTO-41u
- - Street vendors taking out a againt Minicipal Corporation of Chandigarh (MCC) to press their verious demands, in Chandigarh on Monday. UNI PHOTO-40u
- MATHURA, SEP 3
- - Priests performing Abhishek of the deity with milk, curd, ghee honey and other offerings at Radharaman temple on the occasion of Sri Krishna Janamshtami in Vrindavan on Monday. UNI PHOTO-39U
- - Priests performing Abhishek of the deity with milk, curd, ghee honey and other offerings at Radha Damodhar temple on the occasion of Sri Krishna Janamshtami in Vrindavan on Monday. UNI PHOTO-38U
- - Priests performing Abhishek of the deity with milk, curd, ghee honey and other offerings at Radha Damodhar temple on the occasion of Sri Krishna Janamshtami in Vrindavan on Monday. UNI PHOTO-37U
- THIRUVANANTHAPURAM, SEP 3
- - A deserted view pf the Kovalam beach as rain and rough sea due to monsoon keeps visitors away, in Thiruvananthapuram on Monday. UNI PHOTO-36U
- - A deserted view pf the Kovalam beach as rain and rough sea due to monsoon keeps visitors away, in Thiruvananthapuram on Monday. UNI PHOTO-35U
- - A deserted view pf the Kovalam beach as rain and rough sea due to monsoon keeps visitors away, in Thiruvananthapuram on Monday. UNI PHOTO-34U
- - A deserted view of the Kovalam beach as rain and rough sea due to monsoon keeps visitors away, in Thiruvananthapuram on Monday. UNI PHOTO-33U
- - A deserted view of the Kovalam beach as rain and rough sea due to monsoon keeps visitors away, in Thiruvananthapuram on Monday. UNI PHOTO-32U
- - Telangana BJP President Dr K Laxman, addressing a press conference at BJP office in Hyderabad on Monday. UNI PHOTO-31u
- - Telangana BJP President Dr K Laxman, addressing a press conference at BJP office in Hyderabad on Monday. UNI PHOTO-30u
- - Telangana BJP President Dr K Laxman, addressing a press conference at BJP office in Hyderabad on Monday. UNI PHOTO-29u
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- There is no end to the rise in fuel prices. Petrol price hit a peak of Rs 79.15 in Delhi and Rs 86.56 per litre in Mumbai, the highest ever for any metro city, on Monday. While the government is hoping the rally in global rates declines soon, it is also looking at alternatives to lessen future pinches. This explains its current interest in rotten potatoes. You heard it right. India often overproduces potatoes which find no buyers. The common spectacle of protesting farmers throwing potatoes on roads after over-production can now become a rarity as the government plans to turn rotten potatoes, besides other plant waste and residue, into biofuel.The idea doesn't seem far-fetched if you consider what happened a week ago. On August 27, no-frills airline SpiceJet operated India's first test flight powered by fuel made from nuts of jatropha plant. In 2008, a Virgin Airlines plane had flown on oil made from coconut and Brazilian babassu nuts. Biofuel can be produced from various types of plant residue and waste. Now the government sees rotten potatoes as another potential source of biofuel. What is biofuel?Biofuel is produced from renewable resources and used in place of or in a blend with diesel, petrol and other fossil fuels for transport and other uses such as household cooking and power production. The biofuel falls in three categories. Basic biofuels are called 'first generation (1G)' and include bioethanol and biodiesel. These are made from sugars and vegetable oils found in food crops. Advanced biofuels include 'second generation (2G)' ethanol which is made from municipal solid waste and drop-in fuels, which can be straightaway used in place of petroleum and petrol products without the need for blending. 'Third generation (3G)' biofuels are made from non-food biomass such as bio-CNG. Why India needs biofuels?In India, diesel constitutes 72% of transportation fuel followed by petrol at 23%. The remaining fuels are CNG, LPG, etc. The domestic crude oil production is able to meet only about 18% of the demand. The rest of crude is imported. Being import-dependent, India's fuel economy is greatly sensitive to international trends. Though India can produce only a limited amount of crude, it has a large potential for producing biofuel. The Spicejet biofuel flight holds out great promise for India's energy needs. According to the government, mixing of one crore litre of bio-ethanol in petrol saves Rs 28 crore of foreign exchange on oil imports. The ethanol supply year 2017-18 is likely to see a supply of around 150 crore litres of ethanol which will result in savings of over Rs 4,000 crore of forex, the government says. India spent $87.7 billion (more than Rs 6 lakh crore) on importing 220.43 million tonne of crude oil in 2017-18. For 2018-19, the imports are pegged at almost 227 MT. Biofuel will not help India cut its dependence on oil import but also contribute to preserving the environment as it causes less emissions than fossil fuels. What India has done so far ?Though the Spicejet flight brought the biofuel potential to the fore, the government has been promoting biofuel for more than a decade. Ethanol-Blended petrol (EBP) programme was launched by the government in 2003. The programme focused on 5 per cent blending of molasses-based ethanol with petrol. In the same year, the Planning Commission came up with National Biodiesel Policy which proposed a two-phase strategy for biodiesel production from jatropha seeds to achieve a 10 per cent blending mandate by 2012.In 2008, the blending target for EBP programme was pushed to 10 per cent. National Biofuel Policy in 2009 proposed the blending target at 20 per cent. However, ethanol blending percentage in petrol is around 2 per cent and biodiesel blending percentage in diesel is less than 1 per cent. That's mainly because limited production of biofuel.The future roadmapIn May, the Union Cabinet approved the National Policy on Biofuels 2018 which includes several steps to boost biofuel production and blending. It proposes an indicative target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel by 2030. A major step towards boosting production is the permission to make biofuel from sugarcane juice, sugar-containing materials like sugar beet, sweet sorghum, starch-containing materials like corn and cassava, damaged food grains like wheat, broken rice and, of course, rotten potatoes. So far, India has produced ethanol for petrol blending from molasses, a byproduct of sugar industry. However, there is a limit to how much molasses we can produce. Moreover, molasses are also used to produce alcohol and chemicals. At the present levels of cane and sugar production, the maximum quantity of molasses available is about 13 million metric tonnes, which can produce about 300 crore litres of ethanol or alcohol. Allowing a large variety of raw materials to produce ethanol is likely to boost production as well as help farmers who suffer losses due to over-production and consequent lack of demand for their produce. The new measure will also help with the problem of a lot of foodgrain going waste due to various factors. However, the use of crop waste and surplus foodgrain for ethanol production will also require a well-oiled biomass supply chain. Another challenge would be storage. Most crops and their residue are available on the seasonal basis and cannot be stored for long.
- Niti Aayog vice-chairman Rajiv Kumar reportedly blamed former Reserve Bank of India (RBI) governor Raghuram Rajan for India's declining growth, adding that his policies led to industries not receiving credits from banks that lead to a spurt in bad loans.âGrowth was declining due to former RBI Governor Raghuram Rajan's policies," Kumar was quoted as saying in an interview. India's economy grew at 2-year high of 8.2 percent in the April-June quarter of 2018-19 on strong performance of manufacturing and agriculture sectors. Kumar, in the interview, said a new mechanism brought under Rajanâs regime led to a surge in stressed NPAs and that stopped banking sector to give credit to industry.âIt is a continuation of a trend of a declining growth, and why was this growth declining, it was declining because of the rising NPAs in the banking sector. When this government came into office that figure was 4 lakh crore, it rose to 10.5 lakh crore by the middle of 2017 because under the previous RBI governor, Mr. Rajan, they had identified mechanisms to identify stressed and non-performing assets which is why the banks stopped giving credit to industries."Kumar blamed Rajan's policies on non-performing assets for the slowdown and not the decision to ban 500 and 1000 rupee notes. "The slowing of growth rate in the post-demonetisation period was not due to the decision to ban notes, but because there was a declining trend in the economy. Starting from last quarter of 2015-16, the growth rate had come down for six successive quarters," he said.As much as 99.3 per cent of the junked Rs 500 and Rs 1,000 notes have returned to the banking system, the RBI said in a recent report, indicating that just a miniscule percentage of currency was left out of the system after the government's unprecedented note ban aimed at curbing black money and corruption.Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on November 8, 2016, when the note ban was announced, notes worth Rs 15.31 lakh crore have been returned. This meant just Rs 10,720 crore of the junked currency did not return to the banking system.
- Sebi is focusing on the cost structure of mutual funds, concerned as it is about the high expense ratios of several schemes, particularly regular plans. Reports say Sebi is also probing the narrow difference in expense ratio of regular and direct plans of some fund houses. So are direct plan investors not getting the entire benefit of lower costs they are supposed to?Direct plans were introduced by Sebi five years ago as a low-cost alternative to regular plans, sold through intermediaries. The former allows purchase of funds at a lower cost, as it eliminates the expense on distributor commissions. The commissions on equity fundsâ"including the up front commission and annual recurring payoutâ"typically vary between 0.75%-1.25% annually. The cost differential between the direct and regular plan should ideally be equivalent to this expense.However, data shows the difference in the expense ratios of the two variants is much narrower. Among the 143-odd diversified equity funds on offer, 72 have a cost differential of less than 100 bps between the direct and regular plans. The gap in the two variants is narrower than 75 bps for as many as 38 schemes. This raises concerns that investors are actually being overcharged despite taking the direct route as fund houses are not passing on the benefits of culling the commission expense.The difference in costs of regular and direct plans is down in some funds
- Some of these schemes may have cut down on distributor commission in the regular planThe cost differential for several funds has narrowed over the past few years. As many as 41 schemes are now offering a smaller gap in costs between the regular and direct plans. Experts say there is merit in the regulatorâs observations on direct plans. Suresh Sadagopan, Founder, Ladder 7 Financial Advisories, asserts, âThe record of several fund houses in direct plans is patchy with significant variation in cost differential even within the same fund house.â Rohit Shah, CEO, Getting You Rich, adds, âThe pricing of direct plans is often not consistent and investors may be overpaying to some extent.âSchemes with the lowest difference in costs
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- Delaying or trying to evade transfer orders on promotion will now result in railway officers losing their seniority, the railway board has indicated.According to orders issued by the board, those using such tactics will be debarred from such promotions for a minimum of one year.A comprehensive transfer policy issued by the railways in 2015 states that the controlling officer will ensure that the officer transferred is relieved within a maximum period of one month.However, the board said officers who are transferred from one zone or unit to the other on promotion often fail to comply with the orders within the stipulated time frame. "They do not carry out the orders within the stipulated period and try to evade or delay the process by citing one reason or the other," the board said. This, it said, causes a lot "administrative difficulties" not only for the railway unit/zone where the officers continues to remain even after issue of transfer orders but also where he is transferred. The board in an August 29 order has said the decision was taken to "curb the rising tendency among officers" of not complying their transfer or promotion orders."If an officer does not comply with his/her transfer-cum-promotion within the stipulated period, it may be treated to be a refusal for promotion and may render the officer liable for debarment from such promotion for a minimum period of one year," the board has said. The railways' order comes amidst cases of officers trying to wriggle their way out of tough or uncomfortable postings, sources said. While all civil servants are governed by the Central Civil Services Rules, each cadre has its own set of rules for transfer and promotions within the cadre.The CCS rules stipulate the time frame in which officers need to join their new post according to the distance of the new posting to the old one.It carries time from immediate joining to around a month under some situations, depending on the distance between the two headquarters. Not joining within the stipulated time could lead to barring of the officer for future and foreign postings for as long as five years. Different cadres, however, have the power to enforce rules they seem fit for transfer of officers within it.
- Home-grown auto major Mahindra & Mahindra (M&M) today launched its new utility passenger vehicle Marazzo at a starting price of Rs 9.99 lakh, which will compete with segment leader Toyota Innova Crysta.The vehicle has been developed from engineering collaboration between Mahindra Automotive North America (MANA), Detroit and Mahindra Research Valley (MRV) Chennai, and designed by Pininfarina, Italy and Mahindra Design Studio in Mumbai, according to M&M executive chairman Anand Mahindra."We have launched globally developed Marazzo for the Indian market," Mahindra told reporters here.The company has spent around USD 200 million to develop this product, he said, adding it hopes to launch more luxury vehicles in collaboration with MANA, MRV and Pininfarina in the future.The new vehicle will be manufactured at the company's Nashik facility, and besides Innova Crysta, will also be competing with other brands in the segment such as forthcoming second-gen Maruti Ertiga and Ranault Lodgy.Replying to a query on the rising competition, Mahindra said, "We are not focused on market share but making sure our products are a hit."Marazzo will be available at Mahindra dealerships across the country starting today, at a launch price of Rs 9.99 lakh (ex-showroom) for the M2 variant, and will go up to Rs 13.99 lakh for M8 top end model for a limited period, according to M&M managing director Pawan Goenka.It will be available in four variants - M2, M4, M6, M8 - and in six colours Mariner Maroon, Poseidon Purple, Aqua Marine, Iceberg White, Oceanic Black and Shimmering Silver."The Marazzo turns a new leaf in Mahindra's evolution in the UV segment; it embodies Mahindra's new, increasingly global approach to product development. It will use nearly 10 per cent of imported components," said Goenka.The vehicle is powered by a 1.5 litre, four-cylinder D15 diesel engine, and will come in seven and eight-seater options, with the seven-seater option offering captain seats in the second row.Goenka said the company hopes to launch petrol version once the BS-VI gets implemented by 2020.
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