Wipro, Reliance, HCL Technologies, Infosys, IDBI Bank, Delta Corp, Adani Group stocks in focus on 12 Oct 2022 Indian benchmark indices NSE Nifty 50 and BSE Sensex are likely to open in green amid mixed global cues. SGX Nifty hinted at a flat to positive start for Indian equities as Nifty futures were trading 54 pts or 0.3% up on the Singapore Exchange. “As we’re not seeing any respite on the global front, any disappointment on earnings or the macroeconomic front may put further pressure. On the index front, we are now eyeing 16,800 in Nifty and its decisive break would reverse the recovery trend. Traders should align their positions accordingly,” said Ajit Mishra, VP – Research, Religare Broking.Stocks in focus on 12 October, Wednesday Reliance: Reliance Industries’ arm Jio-BP will lay a network of charging stations at Mahindra & Mahindra dealerships and workshops across the country, initially starting with 16 cities. Jio-BP – a JV between Mukesh Ambani’s RIL and London-based BP – will install DC fast chargers for Mahindra’s e-SUV production line. These stations will be open to the public, hence benefiting all stakeholders in the electric vehicles chain. Infosys: The IT services major on Tuesday said its president Ravi Kumar S has resigned from his post. The company did not give any reason for the move which comes just days ahead of its second quarter earnings announcement. “The board of directors placed on record their deep sense of appreciation for the services rendered by Ravi Kumar S. for his contributions to the company,” Infosys said in a regulatory filing. Delta Corp: The casino operator has clocked 19.5 percent sequential growth in consolidated profit at Rs 68.25 crore for the quarter ended September FY23 and revenue during the same period increased by 8 percent to Rs 270 crore. The business is very resilient and has bounced back much stronger. The company has surpassed the pre-COVID set of numbers and has registered strong growth. Wipro: The IT company is expected to post a muted show for the September 2022 quarter, according to analysts when it announces its earnings on Wednesday. It is expected to report a 3-5% rise in the quarterly revenue, with some contraction in the margins on a on-year basis, thus denting the profitability. The bottom line is likely to remain flat for the IT exporter. 4% on-quarter CC revenue growth is expected in Q2FY23. Adani Group: Adani Data Networks, a unit of Adani Group, has received a unified licence from the Department of Telecommunications in six circles of Andhra Pradesh, Gujarat, Karnataka, Rajasthan, Tamil Nadu, and Mumbai. The company was earlier issued the letter of intent for a unified license. Now, it is eligible to carry long-distance calls on its network and offer internet services. IDBI Bank: Large corporates have been disallowed from being even a minority shareholder in consortium wanting to bid for 61 per cent stake in IDBI Bank, as the current RBI norms bar industrial houses from becoming bank promoters. Currently, RBI guidelines allow industrial houses to hold a maximum of 10 per cent stake in private sector banks, but they cannot be a promoter. Also Read: Sensex tanks 1.5% in fag-end sell-off, Nifty support at 16800; hourly momentum indicator signals more weakness L&T Finance Holdings: The company has received approval from Sebi for the sale of 100 percent shareholding in subsidiary L&T Investment Management to HSBC Asset Management (India). With this approval, all necessary actions are being taken to ensure the completion of the proposed transaction, said the company. Company Q2 results: Wipro, HCL Technologies, Sterling and Wilson Renewable Energy, 7NR Retail, Artson Engineering, Mangalam Industrial Finance, Mega Nirman and Industries, National Standard (India), Nxtdigital, Sanathnagar Enterprises, Standard Capital Markets, and Yash Chemex will announce their quarterly earnings on Wednesday.
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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.