Axis Bank, Britannia Industries among 126 BSE stocks to hit 52-week highs, 22 fall to 52-week lows The domestic equity indices are trading in the green today after closing flat yesterday. Sensex is trading at 62,451, while Nifty is at 18,580. The broader markets also open marginally higher; NSE Nifty Midcap 100 and NSE Nifty Smallcap 100 are up 0.3%. Sectorally, most indices started in the green as well. HDFC Bank, Axis Bank, Kotak Bank, Reliance and Bajaj Finance are the most active Nifty 50 stocks intraday.Nifty 50 Gainers and Losers On the NSE Nifty index, IndusInd Bank, Bajaj Finance, M&M, HCL Tech, UltraTech Cement are among the top gainers, with IndusInd Bank up 1.63%. The biggest laggards are UPL, Apollo Hospitals, BPCL, JSW Steel and Titan. UPL is trading 0.99% down. On the flip side, 22 stocks fell to their 52 week lows. Wanbury, Apollo Finvest (India), Laurus Labs, Rossari Biotech, Svarnim Trade Udyog, Vivanza Biosciences were among these scrips. On the NSE Nifty, 71 stocks hit their 52 week highs including Archean Chemical Industries, Apollo Tyres, Axis Bank, Fourth Dimension Solutions, Britannia Industries, Bombay Super Hybrid Seeds , Central Bank of India, Dhanlaxmi Bank, DCB Bank, Jyothy Labs, Kalpataru Power Transmission, Revathi Equipment, VIP Clothing, Yes Bank are among others. Alternatively, 13 stocks including DCX Systems, DJ Mediaprint & Logistics, Laurus Labs, Osia Hyper Retail, Clariant Chemicals (India), Cerebra Integrated Technologies among others were the stocks at 52 week lows. BGR Energy Systems, Motor & General Finance, Krsnaa Diagnostics, Vardhman Acrylics and Rajdarshan Industries are the top volume gainers of the day on NSE. HDFC, HDFC Bank, ICICI Bank, SBI and Ultratech Cement were among the volume toppers on the BSE Sensex-30 index.
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In its consultation paper, Sebi has suggested that trustees of mutual funds should focus on market abuse by AMC, its employees and mis-selling by the AMC to increase the asset base.
Also, trustees should be responsible for fairness of fees and expenses charged by the AMC, compare its performance with peers and ensure that AMC’s sponsor is not getting any undue advantage.
In addition to the core areas, the trustees should be responsible for periodically reviewing the steps taken by AMCs for the folios which do not contain all KYC attributes with bank details.
Further, Sebi has suggested that trustees and their resource persons should independently evaluate the extent of compliance by AMC and not merely rely on AMC’s assurances.
To facilitate trustees’ supervision, AMCs should provide them with analytical information.
Presently, the trustees primarily rely on the AMCs for ensuring compliance with the applicable rules.
Under the rules, trustees hold the property of the mutual fund in trust for the benefit of the unitholders. The trustees appoint an AMC to float schemes for the mutual fund and manage the funds mobilised under various schemes, in accordance with the investment objectives.
“In view of the increasing scale and reach of the mutual fund industry, trustees’ role in respect of unitholders’ protection assumes even greater significance,” Sebi said on Friday.
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Over the past decade there has been a five-fold increase in the size of the mutual fund industry. The assets under management (AUM) has surged from Rs 7.93 lakh crore in November 2012 to Rs 39.89 lakh crore in December 2022.
To ensure that trustees devote time and attention to their core responsibilities, Sebi has suggested that for fulfilling other responsibilities, trustees may rely on professional firms such as audit firms, legal firms, merchant bankers for carrying out due diligence on their behalf.
The Sebi also listed some duties trustees can delegate to AMCs. This include ensuring that all systems are in place prior to the launch of any scheme by the AMC, and calculating any income in the mutual fund due to the fund and any income received in the mutual fund for unitholders.
The regulator has proposed to provide a one year time to existing trustees with board of trustee structure to convert into a trustee company, from governance point of view.
Presently, two structures for trustees are permitted — corporate and board of trustees structure. Moreover, there are a few mutual funds which have the board of trustees structure while the trustees of all other mutual funds have adopted the structure of a trustee company.
Considering the enhanced role of trustees over the period of time, Sebi has suggested to increase the minimum number of trustees to adequately perform their functions. Presently, the minimum number of trustees prescribed is four.
Also, it has been proposed that the chairperson of the trustee company should be an independent director.
Sebi has suggested that apart from the meeting of the audit committee of AMCs and trustees (which mostly comprises of independent directors), the board of AMCs and the board of trustees may be mandated to meet at least once a year to discuss the issues concerning the mutual funds.
The regulator proposed that the existing MF Regulations on AMC and its obligations may be amended to include additional clauses with respect to the obligations of the board of AMC.
The proposed amendment may include a clause which casts an obligation on the board of AMC to ensure that all the activities of the asset management company are in accordance with the provisions of these regulations.
The Securities and Exchange Board of India (Sebi) has sought comments from public till February 24 on these proposals.