Street signs: ELSS outflow an unusual surprise, Antony shares slide & more

ELSS outflow an unusual surprise

Equity-linked savings schemes (ELSS) saw outflows to the tune of Rs 804 crore in December. This has surprised market observers as it is the first time in the last seven years that the category has witnessed outflows during the month. Historically, December has seen inflows of Rs 500-1,000 crore as investors start their annual tax planning, culminating in even higher flows in the subsequent months as the financial year draws to a close. Invest­me­nts of up to Rs 1,50,000 done in such schemes are eligible for tax deduction under section 80C of the Income Tax Act. The advantage ELSS has over other tax saving instruments is a short lock-in period of three years.

Ashley Coutinho

On the inside track

The Securities and Exchange Board of India's new division to handle corporate frauds is said to have increased the need for those with chart­ered accountant expertise, given the shena­nigans with financial statements that have come to light in recent years. Fraud has been detected at multiple listed firms, many of whom found themselves without auditors after abrupt resignations. The need for people with account­ing expertise, however, hasn’t been hard to fill at the regulator, according to a source, since a fair number of chartered accountants already work at the Sebi.

Sachin P Mampatta

Antony Waste shares slide post listing 

The shares of civic services provider Antony Waste Handling Cell has already lost a third of its listing gains a week after its market debut. Its IPO price band was Rs 313 to Rs 315, while shares now trade around Rs 374 after listing at over Rs 400 on January 1, even as leading indices have risen during this period. Analysts said the firm's fundamentals are catching up after the listing euphoria. Concerns were raised about the company during its initial public offer citing its high receivables, dependence on munici­palities, low entry barrier for the business, and falling return on equity or RoE. The company also had to pay 18 per cent of its net profit for FY19 as penalty for failing to deliver service as per terms of contract.

Sundar Sethuraman