Latest news with #AMCs
Time of India
2 days ago
- Business
- Time of India
Mutual Fund KYC process got simplified: Now complete your KYC at your nearest Post Office
Academy Empower your mind, elevate your skills What is KYC? Which documents are accepted as Proof of Identity (PoI) and Proof of Address (PoA)? How to check your mutual fund KYC status New KYC rules for mutual fund investors What does each KYC status imply? Now, the Department of Posts (DoP) will provide Know your customer (KYC) verification and document collection services through its post offices for mutual fund investors. This enables postal employees to assist investors in completing KYC forms, verifying and attesting self-attested documents, and transferring them to Asset Management Companies (AMCs).According to a release on July 17, 2025, 'The Department of Posts signed an Memorandum of Understanding (MoU) with the Association of Mutual Funds in India ( AMFI ) to offer KYC verification and document collection services through its 1.64 lakh+ post offices, ensuring smooth compliance for mutual fund investors.'AMFI will facilitate this initiative on behalf of its member AMCs to achieve 'KYC Validated' status for investors in the records of KYC Registration Agencies (KRAs).Also read: Mutual fund KYC status: Meaning of validated, verified, registered KYC and how it impacts for MF investments Know Your Client (KYC) means identifying and verifying the client's identity and the identity of the beneficial owner through documents submitted for Proof of Identity (PoI) and Proof of Address (PoA) and compliance with rules, regulations, guidelines and circulars issued by the Board or any other authority for Prevention of Money Laundering from time to following documents are acceptable as PoI and PoA:i. the passport;ii. driving licence;iii. proof of possession of Aadhaar number;iv. the Voter's Identity Card issued by Election Commission of India;v. job card issued by NREGA duly signed by an officer of the State Government;vi. the letter issued by the National Population Register containing details of name address; orvii. any other document as notified by the Central Government in consultation with the any mutual fund website or register and transfer website where you have an investmentCheck for KYC status linkEnter your 10-digit PANYour KYC status will be displayed as validated/ registered/on hold /rejectedThe new rules for Know-Your-Customer (KYC) standards for mutual funds, which came into effect on April 1, 2024, impact how easily a person can invest in mutual fund your KYC status is KYC Validated, you can do any your KYC status is registered, you can do transactions such as purchases, redemptions, switches, SIPs, etc. in all your existing mutual fund investments without any if you want to invest in a mutual fund where you don't have any investment already, you will have to do your KYC once your KYC status is KYC on hold or rejected, the website will show the reason for 'KYC On-Hold'/Rejected status; it could be: mobile or email not validated, PAN is not linked with Aadhaar or deficiency in the KYC documents, will have to fix the reason for your KYC by understanding why it was put on hold or rejected.
Time of India
3 days ago
- Business
- Time of India
Sebi proposes to bring uniformity in valuation process of gold and silver ETFs
The Securities and Exchange Board of India (SEBI) has proposed a review of the valuation of physical gold and silver in cases of gold and silver Exchange Traded Funds (ETFs) as this change is expected to bring uniformity in the valuation process of gold and silver throughout the mutual fund industry, for investments made by the gold and silver ETFs . SEBI has invited public feedback on this proposal by August 6, 2025, indicating a likely implementation soon after. Currently mutual fund houses managing gold and silver based ETFs use London Bullion Market Association (LBMA) price in US dollars as the benchmark, according to a consultation paper by Sebi. Explore courses from Top Institutes in Select a Course Category Data Science CXO others MBA PGDM Public Policy Cybersecurity Digital Marketing Data Science Operations Management MCA Degree Technology Project Management Design Thinking Others Healthcare Product Management Artificial Intelligence Leadership healthcare Management Finance Data Analytics Skills you'll gain: Data Analysis & Interpretation Programming Proficiency Problem-Solving Skills Machine Learning & Artificial Intelligence Duration: 24 Months Vellore Institute of Technology VIT MSc in Data Science Starts on Aug 14, 2024 Get Details Skills you'll gain: Strategic Data-Analysis, including Data Mining & Preparation Predictive Modeling & Advanced Clustering Techniques Machine Learning Concepts & Regression Analysis Cutting-edge applications of AI, like NLP & Generative AI Duration: 8 Months IIM Kozhikode Professional Certificate in Data Science and Artificial Intelligence Starts on Jun 26, 2024 Get Details Also Read | Confused between gold and silver? Why not leave it for fund manager to decide Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 15 Most Beautiful Women in the World Further, customs duty and other applicable taxes and levies are also factored in for arriving at the final valuation. The price is further adjusted to the Indian bullion prices, which are often either at a premium or discount to the LBMA prices based on the domestic demand and supply. The fund houses managing gold and silver ETFs currently face the challenge of duplication of effort for valuing physical gold/ silver held by mutual fund schemes. Presently, different AMCs use different sources of domestic benchmark to apply necessary premium/ discount, which leads to non- uniformity of the valuation practice for gold and silver across the MF industry. Further, in the absence of any regulatory direction, AMCs use their discretion to apply premium/ discount resulting in differences in valuation of gold/ silver. Live Events While the physical gold/silver held by gold and silver ETFs are valued as per the LBMA process, the Exchange Traded Commodity Derivatives (ETCDs) on gold/silver held by MF schemes are valued as per the closing price of Futures in the domestic commodity exchange of the respective ETCDs. Therefore, if any gold/silver ETF invests in both physical gold/ silver and ETCDs, two different sources are used for valuation of the same asset class in that scheme. Sebi has now proposed consideration of spot price published by the domestic commodity exchanges for valuation of gold and silver and polling process for calculation of spot prices in case of both gold and silver. Also Read | Stocks, FD or Mutual Funds? Radhika Gupta shares 3 basics to smart investing 'SEBI's proposal to shift gold and silver ETF valuation from LBMA-based pricing to domestic commodity exchange spot rates is a significant reform. It brings uniformity across AMCs, eliminates subjective premium/discount adjustments, and aligns NAVs more accurately with local demand-supply conditions. This simplifies operations, enhances transparency, and strengthens investor confidence,' said Akshat Garg, AVP, Choice Wealth. 'As India witnesses rising gold ETF inflows amid global uncertainty, this move could boost both retail and institutional participation. While care must be taken to ensure polling mechanisms remain robust and tamper-proof, this transition reflects SEBI's broader goal of deepening trust in India's capital and commodity markets through localized, data-driven frameworks,' Garg further added.
Time of India
3 days ago
- Business
- Time of India
Sebi to review how mutual funds value gold & silver
Representative image NEW DELHI: Markets regulator Sebi is considering a review of the valuation methodology for physical gold and silver held by mutual funds through exchange-traded funds (ETFs) to ensure greater consistency and better alignment with prevailing domestic market prices. In this regard, Sebi has proposed that AMCs should use spot prices published by domestic commodity exchanges to value gold and silver, replacing the current practice of using LBMA prices, according to its consultation paper on Wednesday. It is also looking to identify a uniform domestic benchmark and make the detailed polling mechanism for spot price determination publicly available. Currently, gold held by any gold ETF scheme is required to be valued at the AM fixing price of the London Bullion Market Association in US dollars per troy ounce for gold having a fineness of 995.0 parts per thousand. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
4 days ago
- Business
- Mint
Sebi proposes to standardize valuation methods of gold, silver ETFs
The Securities and Exchange Board of India (Sebi) has unveiled a consultation paper that proposes to bring sweeping changes to how physical gold and silver held by Exchange Traded Funds (ETFs) are valued. The proposal, open for public comment until 6 August, seeks to replace the current valuation system, which relies on international prices, with a simpler approach grounded in domestic market realities. Currently, mutual fund houses managing gold and silver ETFs use the London Bullion Market Association (LBMA) price in US dollars as the benchmark. This price is then converted to Indian rupees and subjected to a host of adjustments—customs duties, local taxes, and variable premiums or discounts—to reflect Indian market conditions. This multi-layered process has given asset management companies (AMCs) leeway to use different sources and frequencies for making these price adjustments, resulting in a lack of uniformity in the valuation methods. Sebi has now proposed that ETFs instead use spot prices for gold and silver published by Indian commodity exchanges like MCX. These prices are polled from a panel of domestic market participants—importers, traders, jewellers—and are meant to reflect real-time supply and demand within India. 'Presently, different asset management companies (AMC) use different sources of domestic benchmark to apply necessary premium/ discount, which leads to non-uniformity of the valuation practice for gold and silver across the MF industry. Further, in the absence of any regulatory direction, AMCs use their discretion to apply premium/ discount resulting in differences in valuation of gold/ silver," Sebi's consultation paper highlighted. There are various service providers/ index providers in India such as jeweller associations, commodities exchanges etc., which publish spot price of commodities including gold and silver under the domestic market condition, Sebi said. 'The commodity exchanges usually poll the spot prices of gold and silver on a daily basis and this price is used as reference price for physical market transactions in gold/ silver within India,' the Sebi paper highlighted. Exchange Traded Funds, or ETFs, are mutual funds that are tradeable in the stock markets just like stocks. And just like a mutual fund, they track an index, sector, commodity or asset. Surendra Mehta, national secretary at the India Bullion and Jewellers Association (IBJA), expressed reservations about Sebi's proposal. 'Commodity exchange spot polling prices of gold and silver are declared at 4.30 pm daily only once in a day. Since the gold and silver market are internationally traded commodities and this market remains open 23 hrs a day, calculating gold and silver price based on particular Indian time can lead to a huge gap between international price and domestic spot price polled by exchange," Mehta said, stressing that the ETF valuation price should be based on LBMA price only. 'Further, when the Reserve Bank of India (RBI) uses IBJA) price for issue and redemption of Sovereign Gold Bonds (SGB) and also for lending against jewellery, IBJA price can also be used for valuation purpose by ETF,' he added. (with contributions from Ram Sahgal)
Hans India
4 days ago
- Business
- Hans India
Nifty expected to reach 26,889 until December 2025: PL Capital
Mumbai, July 16, 2025: PL Capital, one of India's most trusted financial services organizations in its latest India Strategy Report highlights a multi-faceted recovery in domestic demand, supportive monetary policies, and focused fiscal initiatives as key drivers of growth. Reflecting this positive view, the brokerage has raised its 12-month Nifty target to 26,889, valuing the NIFTY at 2.5% discount to 15-year average PE at 18.5x. PL Capital believes that the domestic oriented sectors like domestic pharma, select staples, Banks, capital goods, defense and power will outperform in the near term. In the first quarter, government capital expenditure was front-loaded, recording impressive growth of 61% in April and 39% in May, supported by strong momentum in new project orders and a significant increase in defense spending. At the same time, the Reserve Bank of India reduced the repo rate by 100 basis points and announced a phased 100 basis point cut in the cash reserve ratio (CRR). These policy moves are intended to enhance system liquidity and stimulate credit growth, which reached a moderate 9.5% in Q1 FY26. FY26/27 EPS cut 1.2/0.6%, 13.4% EPS CAGR over FY25-27 PL Capital forecasts modest top line growth of 2% for our coverage universe, supported by stronger gains of 15% in EBITDA and 15.6% in PBT. Excluding oil & gas, EBITDA and PBT are expected to rise by 10.5% and 7.7%, respectively. Growth will be led by telecom, AMCs, EMS, cement, capital goods, and oil & gas, driven by operating leverage and margin tailwinds. Conversely, building materials, consumer durables, travel, and financial services are likely to face PBT declines, while banks, consumer, IT, and pharma are expected to register only muted, sub–mid-single-digit PBT growth, reflecting sector-specific headwinds and demand normalization. The earnings outlook remains uncertain. Since introducing the FY27 NIFTY EPS forecast in October 2024, PL Capital has revised its NIFTY EPS estimates downward by 7.3% for FY26 and 6.15% for FY27, while consensus estimates have seen even larger cuts of 8.9% and 7.5%, respectively. Over the same period, the NIFTY index itself has inched up by just 0.8%. NIFTY free float EPS grew by 14.2% over FY23–25, and is now expected to grow at a slightly lower pace of 13.4% over FY25–27. Mr. Amnish Aggarwal, Director- Research, Institutional Equities, PL Capital said 'Although a broad-based recovery is yet to take hold, factors such as tax relief, normal monsoons, easing inflation, and lower interest rates are creating conditions for a consumption-driven rebound. Rural sentiment remains resilient, while urban sentiment is gradually improving, particularly in discretionary segments. India's growth trajectory in FY26–27 will ultimately depend on the combined effect of robust public expenditure, rising private investment, and a sustained recovery in consumer confidence'. Inflation Trends Turning Benign India's inflation trajectory has witnessed a sharp and sustained improvement over the past year, largely driven by a significant decline in food prices. Headline Consumer Price Index (CPI) inflation, which peaked in Q3FY25, has steadily eased, falling to 2.1% in June 2025—its lowest level in over three years. The Food and Beverages segment saw inflation drop from a high of 9.7% in October 2024 to -0.2% in June 2025. Similarly, the Consumer Food Price Index (CFPI) declined sharply from 10.9% to -1.1% over the same period. This correction in high-frequency prices—especially of perishables like vegetables and pulses—was driven by improved rabi arrivals, softening mandi prices (as per DPIIT), and a favourable monsoon outlook. These trends validates insights from PL Capital's January 2025 India Strategy Report on inflation , which had projected that food inflation had likely peaked and would ease over the course of 2025. The report had attributed this expected moderation to stabilizing agricultural production and the positive impact of stronger rabi yields. It also noted that a potential reduction in import duties on essential food items—especially in response to rising global prices—could further alleviate inflationary pressures. Core inflation is expected to remain stable, with average CPI inflation projected between 4.3% and 4.7% for FY26. PL Capital had also anticipated a 25-basis-point rate cut in FY25, followed by an additional 50 bps reduction in the first half of FY26. Sectoral Outlook: Domestic Plays Take Center StagePL Capital believes domestic-oriented sectors will lead the next leg of market performance and is being overweight on Banks, Healthcare, Consumer, Telecom, and Capital Goods, while remaining underweight on IT services, cement, metals, and oil & gas. In large caps, PL maintains positive views on ICICI Bank, Bharti Airtel, Hindustan Aeronautics, ITC, Titan, and Kotak Mahindra Bank. In mid and small caps, KEI Industries, Astral Ltd., and Indian Railway Catering & Tourism Corporation (IRCTC) are among the top choices. Rural Resilience Supported by Strong Monsoons and Inflation ReliefThe rural economy shows greater resilience, with the rural Current Situation Index (CSI) rising from 96.5 in Jan-24 to 100 by May-25. This recovery is anchored by improved Kharif sowing—up 11% YoY—benign food inflation, and robust government spending in rural development. Headline CPI inflation moderated sharply to 2.1% in June 2025, its lowest in over three years, while food inflation entered negative territory at -1.1%, strengthening real purchasing power for rural households. Tax Relief to Catalyze Urban and Rural ConsumptionThe landmark ₹1 lakh crore income tax relief in the FY26 Union Budget is expected to lift disposable incomes, especially for over 5.65 crore taxpayers in the ₹8–24 lakh annual income range. While the consumption impact is unfolding gradually, PL Capital expects momentum to build during the upcoming festival season, when moderating inflation and normal monsoons will further boost Capital estimates tax savings could translate into ₹3.3 lakh crore in additional consumption over FY26, particularly benefiting discretionary segments such as travel, home upgrades, and lifestyle products. RBI Shifts Gear: Focus on Growth with sharp rate cut In a decisive effort to stimulate domestic demand, the Reserve Bank of India (RBI) lowered the repo rate by 50 basis points to 5.5% during its June 2025 monetary policy meeting—marking the third consecutive cut and bringing the total easing to 100 bps since February. Additionally, the RBI announced a phased reduction of the Cash Reserve Ratio (CRR) by 100 bps, from 4% to 3%, effective from September 2025, aimed at infusing ₹2.5 lakh crore of durable liquidity into the banking system. These measures reflect the RBI's proactive stance to counter weakening global growth and subdued domestic inflation, with the goal of reviving economic momentum.
