Major Events

• HDFC Ltd. launched a dual rate home loan product where it offers fixed rate of interest of 8.25% valid for two years (i.e. upto March 31, 2012) and thereafter applicable floating rate for the balance term.



• The National Stock Exchange’s (NSE) Mutual Fund Service System (MFSS) started on Monday – November 30, 2009 with UTI schemes making its debut onto the new mutual fund trading system with a turnover of Rs 78 lakh. Birla Sunlife Mutual Fund was the second one to join the NSE’s MFSS platform. The rest of the fund houses are expected to join later since they are in the process of creating their technology infrastructure to list their schemes on the exchange.



• The Bombay Stock Exchange (BSE) launched its mutual fund trading platform today (Friday – December 4, 2009) named BSE StAR MF (Bombay Stock Exchange Platform for Allotment and Redemption of Mutual Fund units), with Tata Mutual Fund schemes making its debut onto the mutual fund trading system from Friday. Big fund houses such as HDFC, ICICI Prudential, DSP BlackRock too have signed up for this platform.



• The start of the tax saving season has seen some of the mutual fund companies stepping up commissions. Some of the mutual fund companies are offering as high as 5% commissions to distributors, which are mostly on tax saving schemes. This initiative by the mutual fund companies is despite the fact that SEBI banned commissions to be deducted from investors’ money.



• The Pension Fund Regulatory & Development Authority (PFRDA) unveiled its Tier II account for its New Pension Scheme. Under this account investors will be allowed to enter and exit at will (just like savings account). However, the account will be available for investors of NPS who already hold Tier I account.



• With gold making waves, it is turning out to be an important asset for wealth managers. Religare Mutual Fund has sought the approval from SEBI to launch a gold Monthly Income Plan (MIP). The fund will be a first of its kind in the country.



• Gold prices hit a record high breaching the Rs 18,000 mark. In the Mumbai market standard (99.5 purity) gold closed at Rs 18,220 (for 10 gm) on Wednesday, Dec 2, 2009.



• Employers may soon be required to make mandatory provident fund contribution to their employees with a salary upto a sum of Rs 15,000 a month, instead of Rs 6,500 at present.