SEBI permits passive funds to invest in listed securities of sponsor's group companies beyond 25 pc
28 Aug, 02:46 AM (GMT+5:30)
2 Min
Summary
Securities and Exchange Board of India (Sebi) has amended mutual fund rules, whereby equity-oriented ETFs and index funds can now invest in the listed securities of group companies of the sponsor beyond 25% of the net assets.
Markets regulator Sebi has streamlined norms for passive funds – index funds and Exchange Traded Funds (ETFs) – on exposure to securities of group companies of the sponsor to facilitate a level playing field for mutual funds.
In a notification on Tuesday, the Securities and Exchange Board of India (Sebi) has amended mutual fund rules, whereby equity-oriented ETFs and index funds can now invest in the listed securities of group companies of the sponsor beyond 25% of the net assets.
Earlier, mutual fund schemes were not allowed to invest more than 25% of their net asset value (NAV) in group companies of the sponsor.
This has restricted passive funds from effectively replicating the underlying index, in cases where group companies of sponsors comprise more than 25% of the index.
This has put such asset management companies (AMCs) at a relative disadvantage compared to other AMCs who may not have a sponsor group company comprising over 25% in the underlying index.
To streamline the norm and create a level playing field for all AMCs, Sebi's board in April approved the amendment to mutual fund rules to allow equity passive schemes to take exposure up to the weightage of the constituents in the underlying index.
This exposure would, however, be subject to an overall cap of 35% investment in the group companies of the sponsor, Sebi had stated.
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Jindal Poly Films rises over 18% after strong Q1, amid rising in packaging stocks
- 28 Aug, 02:48 AM (GMT+5:30)
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Summary
Shares of Jindal Poly Films jumped over 18% after the company posted strong results. Volumes on the counter too rose sharply. Other packaging stocks such as Uflex and Polyplex Corp too rose in trade after declaring similarly strong results.
Shares of Jindal Poly Films closed over 18% higher in trade today as it swung to a quarterly profit from a loss in the previous quarter.
Volumes in the counter stood at 1.4 million on NSE, much more than the 30-day average of 110,000.
In an exchange filing, the company said it posted a consolidated profit of ₹169 crore in the first quarter compared to a loss of ₹19 crore in the fourth quarter of the last year. Revenue grew from ₹1,138 crore to ₹1,378 crore.
The growth was led by its key packaging films business, where revenue rose from ₹870 crore to ₹103 crore.
Part of the BC Jindal Group, Jindal Poly Films sells polyester and polypropylene films, which are used in consumer goods packaging, lamination, medical packaging photographic films etc, besides having industrial applications. The company also makes cold-rolled steel strips and galvanised sheets.
Today’s rally in Jindal Poly Films shares was accompanied by a rise in shares of other packaging companies as well, which also declared similarly strong results, with Uflex rising 20% and Polyplex Corp up 8.9%.
Jindal Poly Films shares have gained 34% over the past one year and 238% over the past five years, amid flattish revenue growth over the past five years and a fall in profit. As of FY24, the company had a debt-to-equity ratio of 1.04.
However, its recent growth trend has been encouraging, with first-quarter revenue climbing both year-on-year and quarter-on-quarter.
On a technical level, its shares appear to trade above short and long-term moving averages on the daily chart and appear bullish on RSI and MACD. They also exhibit bullish moving average crossovers. Technical indicators, however, do not necessarily mean that the stock will continue to do well and investors must conduct their own research.
Promoters in Jindal Poly Films own 75%, foreign portfolio investors hold 3% while the rest of the shareholding is in the hands of individual investors.Take your investment to next level
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PhonePe Group posts ₹197 crore profit for FY24
- 28 Aug, 02:47 AM (GMT+5:30)
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PhonePe Group's payment business reported a standalone net profit (excluding ESOP costs) of ₹710 crore in FY24, against a loss of ₹194 crore in the preceding fiscal.
Walmart-backed PhonePe Group on Monday reported a consolidated net profit, excluding ESOP costs, of ₹197 crore for fiscal year 2023-24.
It had incurred a loss of ₹738 crore in the previous fiscal, according to a company statement.
Revenue in FY24 was ₹5,064 crore, 73.7% higher than ₹2,914 crore in FY23.
The group's payment business reported a standalone net profit (excluding ESOP costs) of ₹710 crore in FY24, against a loss of ₹194 crore in the preceding fiscal.
The group has expanded into financial services (insurance, lending, wealth) as well as new consumer tech businesses (pincode - hyperlocal e-commerce and Indus App Store). The company has not provided the results of these verticals.
PhonePe has been able to achieve growth and diversification of revenue through a combination of market leadership, platform reliability and cross-selling a diverse product portfolio, the statement said.
This achievement is a result of PhonePe’s focus on driving operating leverage through automation and cost efficiencies, it added.
"Our financial strategy is anchored on three key pillars: (1) predictable and sustainable growth in revenue, (2) diversification of revenue streams, and (3) continuing improvements to the bottom line," PhonePe CFO Adarsh Nahata said.
These pillars have guided the firm's strategic decisions and enabled it to scale rapidly and a focus on disciplined financial management will help it continue in the progression towards profitability of the payments business, he added.
Sameer Nigam, Founder and CEO said the optimisation of investments and capital allocation, in conjunction with building a diversified revenue model, and remaining customer-focused, will provide a solid foundation for sustained future success.
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HDFC Asset Management puts restrictions on lumpsum and systematic transactions for HDFC defence fund
- 28 Aug, 02:45 AM (GMT+5:30)
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Effective July 22, 2024, HDFC Asset Management has announced the ceasing of lumpsum subscriptions and restriction on systematic transactions for HDFC Defence Fund. But other things will continue as usual for all ongoing systematic transactions (SIPs).
HDFC Asset Management said that referring to the addendum dated June 6, 2023, on discontinuation of lumpsum subscriptions and restrictions on Systematic Transactions in HDFC Defence Fund. Regarding the same, the following has been decided in the Scheme with effect from July 22, 2024, i.e. the effective date:
Source - - New SIP Registrations: Requests for new Systematic Investment Plan (SIP) registrations in the HDFC Defence Fund will not be accepted from July 22, 2024.
- Lumpsum Investments and Switch-ins: Fresh lumpsum investments, including switch-ins, and new systematic transfer registrations into the HDFC Defence Fund will remain restricted.
- Existing SIPs: SIPs registered before July 22, 2024, will continue to be processed without any changes.
- Ongoing Systematic Transactions: All systematic transactions already registered will continue to be processed as usual.
Take your investment to next level
Open a FREE* Demat and Trading account to invest in Stocks, Mutual Funds, IPOs and more
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