Commission disclosure worries mutual funds

Starting next month, the periodic statements provided to mutual fund investors will have to disclose commission paid to distributors or financial planners. Fund houses are lobbying with the Securities and Exchange Board of India (Sebi) to dilute this requirement. They fear it would spark an insurance-industry-like practice where investors ask for kickbacks from agents. Sources say Sebi will soon take a call on this issue

Chandan Kishore Kant

Sebi, YES Bank at odds?
Recently, Rana Kapoor, managing director and chief executive officer of YES Bank, said its $1-billion qualified institutional placement (QIP) failed to sail through due to the Securities and Exchange Board of India's norms. His comment seems to have not gone down well with the market regulator. According to sources, Sebi called YES Bank's investment bankers, Goldman Sachs and Motilal Oswal to understand the issue. Kapoor in an interview to a TV channel had said Sebi's two-day notice requirement acted as a hurdle.

Samie Modak

Online brokerages try to ride IPO boom
Online brokerages such as ICICI Direct and HDFC Securities are trying to cash in on the initial public offering (IPO) boom. Besides trying to attract new investors, they are also trying to get the existing investors in the IPO investing fold, citing superior returns in some of the recent IPOs such as RBL Bank and Quess Corporation. After Sebi has made the so-called Applications Supported by Blocked Amount facility compulsory for IPO investing, online brokerages have gained over the mom and pop rivals, say industry players.

Samie Modak