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Time of India
a day ago
- Business
- Time of India
Sebi plans to change MF norms to tackle overlaps, ensure names ‘true-to-label'
The Securities and Exchange Board of India (Sebi) has proposed changes to mutual fund scheme categorisation to address portfolio overlaps. The regulator may also permit fund houses to launch a second scheme in the same category and invest part of the corpus in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). "It was noted that in the case of some schemes, there was a significant overlap of portfolios. It was therefore felt necessary to introduce clear limits to the industry to avoid schemes with similar portfolios," Sebi said in a discussion paper on Friday. Sebi has proposed new limits on how much two schemes can hold the same securities, in order to ensure clearer differentiation between funds. The regulator has suggested capping portfolio overlap at 50% for value and contra funds, as well as for schemes in the sectoral and thematic equity categories. This is to help investors distinguish one product from another. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » The overlap condition would be monitored at the time of NFO (new fund offering) deployment or on a semi-annual basis using month-end portfolios, it said. Scheme Nomenclature Live Events While retaining the existing structure of five broad groups - equity, debt, hybrid, solution-oriented, and other schemes such as index funds and exchange-traded funds (ETFs) - the regulator has recommended stricter uniformity in how schemes are named to remain "true-to-label." Sebi has proposed standardising the naming of mutual fund schemes, which would have to directly reflect their category. For instance, a large-cap fund would simply be called a 'large cap scheme'. Sebi has also proposed renaming certain debt schemes to better reflect their investment characteristics. It has suggested changing 'low duration fund' to 'Ultra short to short term fund'. Additionally, the regulator suggested that fund names could include the intended duration, such as 'medium term fund (3 to 4 years)'. Lock-In Sebi has proposed that solution-oriented schemes , such as retirement and children's funds, must carry a specified lock-in period. While these lock-ins would apply to new investments, existing investors would be exempt, it said. Second Scheme The regulator has proposed allowing asset management companies to launch a second scheme in an existing category, subject to conditions. The existing scheme would need to be at least five years old and have assets under management exceeding ₹50,000 crore. While the new scheme must have similar objectives and features, it should have a separate fund manager, and the existing scheme would stop accepting fresh subscriptions. "AMC may merge an existing scheme with an additional scheme if there is a significant decline in the AUM of the existing scheme," said the Sebi paper.
Time of India
a day ago
- Business
- Time of India
ET Infra's Roads and Highways Summit: Improving BOT model, tech-enabled highway development, key focus points at the event, ETInfra
Advt Advt By , ETInfra NEW DELHI: Technology-enabled road development, quality maintenance as well as choosing the optimum financing model were among the key themes which resonated amongst the speakers and participants at the second edition of ET Infra's Roads and Highways Summit which was held on Friday in guest at the summit, Minister of State for Road Transport and Highways Harsh Malhotra, emphasized on the rapid development of highways and rural roads since 2014, which has substantially led to GDP growth and employment generation, especially in previously underserved regions like the Northeast. He further highlighted that major road infrastructure development in and around Delhi is expected to decongest the city and significantly reduce pollution.V. Umashankar, Secretary, Ministry of Road Transport and Highways , spoke on significant progress in highway construction over the past decade but noted a recent dip in the pace of awards, necessitating a recalibration of direction, including improving and making more attractive the Build–Operate–Transfer (BOT) Model of highways further outlined that highway construction globally and in India as well occurs in spurts, with the country's road infrastructure buildup expected to see saturation within the next 15-20 Kaswan, Member of Parliament and Member, Standing Committee on Transport, highlighted that while India has made strides in highway development, the infrastructure continues to face issues such as a lack of white lines and lane segmentation, faulty entry/exit points, improper compaction leading to road settlement, and potholes. He called for such issues to be addressed by the ministry and National Highways Authority of India in order to prevent the number of accidents on India's Gen Raghu Srinivasan, Director General, Border Roads Organisation, underlined that since 2014, significant government impetus on infrastructure has led to a surge in border connectivity, transforming remote villages and ensuring strategic sovereignty. Major projects like the Sela Tunnel, the upcoming Shinku la Tunnel, and the Indo-Myanmar border fencing underscore the organisation's expanding scope and its commitment to developing vital infrastructure despite extreme Jhala, Member of Parliament and Member, Standing Committee on Transport, stated that for the future, the focus should be on developing climate-resilient infrastructure to withstand the impacts of global warming and sporadic weather discussions amongst various stakeholders from the industry and government deliberated on relevant roles of Infrastructure Investment Trusts (InvITs), Toll-Operate-Transfer (TOT) and Build–operate–transfer (BOT) Model, as well as budgetary support to the roads and highway development along with the need for sustainable practices were also among the key topics of discussion at the summit was supported by industry partners Arcadis, Welspun Enterprises, Bosch, Autodesk, Xpedeon, CP Plus, ACE (Action Construction Equipment), Khaitan & Co, Equirus Raghnall, JSA, Dextra, associations included Pradhan Mantri Gram Sadak Yojana, NAREDCO, CSIR-Central Road Research Institute, Construction Industry Development Council, National Rural Infrastructure Development partners included International Road Federation (India Chapter), Construction Federation of India, National Highways Builders Federation.
The Print
3 days ago
- Business
- The Print
India's solar ambition needs financial vision – ISA must move from commitments to execution
India's experience illustrates this well. Despite policy successes in solar deployment, the government's ability to directly invest in grid infrastructure or generation assets is capped by fiscal deficit targets and debt ceilings. Even green bonds, while helpful, are bound by ring-fenced rules and are limited in scale. Public financing, therefore, can only act as a catalytic lever—it cannot be the backbone. The potential of solar energy is undeniable. It is modular, scalable, and increasingly cost-effective. Yet, for the nations most abundant in sunlight, finance remains a key constraint. The International Energy Agency estimates that clean energy investments in emerging economies must rise from $770 billion in 2022 to over $2.2 trillion annually by 2030. A significant portion of this must be allocated to solar energy. However, the fiscal realities of many countries—either still recovering from the Covid-19 pandemic, burdened by debt, or struggling to cope with pressing social needs—limit the ability of governments to invest at scale. As the world confronts the realities of climate change and energy insecurity, solar energy presents itself not merely as a technological solution but as a transformative geopolitical and developmental strategy. The International Solar Alliance is uniquely positioned to catalyse this transformation. But to succeed, it must go beyond declarations. It must now design and implement financial architectures capable of supporting its ambitions. Turning to the private sector, we find both potential and limitations. Many solar developers operate on highly leveraged balance sheets, and with rising global interest rates, the space for fresh capital is narrowing. Moreover, risks such as currency volatility, regulatory uncertainty, and weak transmission infrastructure dampen investor appetite, especially in frontier markets. Private capital is crucial but requires structured entry points, credible exit mechanisms, and active risk mitigation to be effective. Making solar power viable One promising solution lies in Infrastructure Investment Trusts (InvITs). These allow mature infrastructure assets—such as operational solar plants or transmission lines—to be monetised and sold to institutional investors, freeing up capital for developers to reinvest in new projects. India has already demonstrated the utility of InvITs in sectors such as roads and power transmission. Extending this to the solar power arena could unlock significant value. The ISA should take the lead in crafting a common InvIT framework tailored for solar infrastructure. A pooled anchor investment fund, supported by multilateral finance institutions, could reduce risks and attract scale investors across member countries. Equally vital is grid infrastructure—the invisible scaffolding that makes solar power viable. The sun may shine everywhere, but power must travel, be stored, and be balanced in real-time. India's Green Energy Corridor and the Revamped Distribution Sector Scheme offer early models. Yet, many ISA member states lack integrated plans for transmission, storage, and cross-border trading. And then there is global capital. Today's capital markets are flush with liquidity, seeking long-duration, climate-aligned assets. But this window may not last. As rates rise and climate risks mount, capital will flow only to those who present credible regulatory frameworks, transparent asset registries, and scalable instruments. The ISA should champion a Global Solar Asset Registry for standardised project information. It must also establish a Solar Credit Guarantee mechanism to mitigate political and currency risks. And it must establish a blended finance facility to crowd in private investment using concessional capital. Also read: Why surge pricing can spark a brighter future for solar power New strategies are key The rise of India's solar power capacity—from under 3 GW in 2014 to 100 GW today—demonstrates what the right mix of policy, institutional coherence, and financial innovation can achieve. However, to transition to 500 GW by 2030, new strategies are essential, including rooftop and distribution company (DISCOM)- level solar investments, urban InvITs, and the integration of solar energy into agriculture through active implementation of schemes such as the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan). These experiences must be adapted and scaled across ISA countries. ISA's evolving strategy must rest on three core principles. First is to scale with purpose. Solar expansion must reduce energy poverty and build domestic value chains. The second is to finance with innovation. ISA must mobilise capital markets and create new instruments, such as InvITs. The third is to lead with solidarity. Emerging economies must shape the agenda with shared standards and cooperative execution. The sun unites us—geographically, climatically, symbolically. However, to truly harness its power, we must act together, think boldly, and manage our finances wisely. The International Solar Alliance must now transform from a coalition of commitments into a platform of execution. It is time to light not only the grids but also the lives of those still waiting for their first connection. The author is a former finance secretary to the Government of India and chairman, Institute of Development Studies Jaipur. Views are personal. (Edited by Zoya Bhatti)
Time of India
5 days ago
- Business
- Time of India
Insurers may get to put more in REITs, InvITs
India's insurance regulator has proposed doubling investment caps for companies seeking exposure to pooled property and infrastructure assets , while simultaneously allowing insurers to buy into gold exchange-traded funds (ETF), draft norms accessed by ET showed. Real Estate Investment Trusts (REITs), which pool funds to distribute property ownership, and Infrastructure Investment Trusts (InvITs) have become major investment avenues for long-term funds, while gold as an asset class surged nearly 90% in dollar terms in the past five years. Insurance Regulatory and Development Authority of India's ( IRDAI ) proposed norms showed the regulator would allow insurers to buy into gold Exchange Traded Funds (ETFs) under Unit-Linked Insurance Plans (ULIPs). The proposed rules double the cap on REIT and InvIT exposure to 6% of own fund size for life insurers and 6% of investment assets for general insurers, up from the current 3%. This is being proposed to channel more long-term insurance capital into infrastructure and real estate. Live Events As of March 31, 2024, life insurance companies held ₹61.57 lakh crore in total funds. Of this, ₹53.96 lakh crore (87.64%) was in traditional policies and ₹7.61 lakh crore (12.36%) in ULIPs. Insurers had invested ₹24.37 lakh crore in central government securities, ₹12.95 lakh crore in state government bonds, ₹5 lakh crore in housing and infrastructure, and ₹10.65 lakh crore in other approved assets. Also, the regulator plans to reduce the public float requirement for REITs and InvITs at the time of investment from 30% to 25%, in line with capital market regulations. With assets under management of InvITs and REITs expanding at 15-20% to ₹7.5-8 lakh crore by FY25, according to a Crisil report, IRDAI's proposals are expected to support capital flow into these sectors, given the push for infrastructure financing. IRDAI has also proposed that up to 5% of a segregated ULIP fund's assets could be invested in gold ETFs, within the overall mutual fund cap of 15%. This proposal, which is based on requests from two large life insurers, has come as gold has delivered more than 30% returns over the past year, far outperforming equities, fixed deposits, and liquid funds, which returned 5-8%.
India Gazette
09-07-2025
- Business
- India Gazette
NHAI road award growth could reach 9-11% in FY26: Report
New Delhi [India], July 9 (ANI): The growth in road project awards by the National Highways Authority of India (NHAI) could reach 9-11 per cent in FY26, according to a report by Axis Securities. The report noted that while there has been a slowdown in awarding activities so far in the current fiscal, a slight improvement since November 2024 suggests that growth momentum may pick up in the coming months. It stated 'a slight improvement in project awarding has been observed since Nov'24, and if this trend continues, growth could reach 9-11 per cent in FY26'. As of July 2025, both the NHAI and the Ministry of Road Transport and Highways (MoRTH) have witnessed delays in awarding new highway projects. However, the report expects that the total length of roads awarded in FY26 will be in the range of 8,500-9,000 km, which is broadly similar to FY25 levels. The report highlighted that the recent pickup in project awarding activity since November 2024, if sustained, could lead to growth. In terms of construction, NHAI built a total of 5,614 km of national highways in FY25, surpassing its set target of 5,150 km. Despite this achievement, the government has announced a lower construction target of 10,000 km for FY26, the lowest in the past seven years. MoRTH recently informed the Department-Related Parliamentary Committee on Transport that the construction budget for FY26 is lower than Rs 10,421 crore. In addition, the monetisation target for FY26 is also below the Rs 39,000 crore previously expected. During the first quarter of FY26 (April-June 2025), NHAI took major steps under the second phase of the National Monetisation Pipeline (NMP 2.0), aiming to unlock Rs 10 lakh crore in capital over a five-year period. Of this, the road sector is expected to contribute Rs 3.5 lakh crore. In June 2025, NHAI also released its first-ever Asset Monetisation Strategy Document. The document outlines plans to raise capital through various models, including Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation. These efforts are part of a broader strategy to mobilise funding for infrastructure development without placing additional pressure on government finances. (ANI)
