Category: Personal Finance

NPS subscriber base rises to 51.8 lakh, assets under management stand at ₹2.09 lakh crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a significant milestone for the National Pension System (NPS) private sector, the total subscriber base has surged to 51.8 lakh, with assets under management (AUM) worth ₹2.09 lakh crore as of January 13, 2024. The number of corporate subscribers, on the other hand, has reached 18.94 lakh, marking a 16% increase from the previous financial year.

The AUM for corporate subscribers has surged by 38%, reaching ₹1.55 lakh crore, up from ₹1.17 lakh crore Year-on-Year (YoY), Pension Fund Regulatory and Development Authority (PFRDA) said on Friday, January 19.

Commenting on this, Deepak Mohanty, Chairman, PFRDA said, “We have 7 crore subscribers in NPS and Atal Pension Yojana (APY) put together. APY is at 1 crore subscribers, and we had a target of 1.3 crore, which we are in range to achieve.”

While speaking to CNBC-TV18, Mohanty further addressed the expansion of the AUM, saying, “The corpus has also expanded and crossed ₹11 lakh crore. We expect it to cross ₹12 lakh crore before the end of this year.”

Recently, the number of registered corporate entities under NPS has shown a positive trend, increasing to 14,991 as of December 2023, compared to 12,865 in March 2023.

The milestones include reaching an AUM of ₹11 lakh crore on January 10, 2023, and the private sector AUM hitting the ₹2 lakh crore mark on December 9, 2023.

Notably, the AUM grew from ₹10 lakh crore to ₹11 lakh crore in just four months and 18 days

On the other hand, the “All Citizen” category has also contributed to the growth, witnessing a 22% increase in subscribers, reaching 32.86 lakh from 29.57 lakh. The AUM for All Citizen subscribers has surged by 38%, reaching ₹0.54 lakh crore from ₹0.43 lakh crore YoY.

PFRDA said its recent regulatory enhancements such as the Point of Presence (PoP) regulations 2023, notified on January 10, 2024, simplified the registration process.

“The revisions allow banks and non-banks to require a single registration for NPS, as opposed to multiple registrations earlier, promoting efficiency and broader digital adoption,” PFRDA said.

Under the revised regulations, the eligibility criteria for entities engaging in distribution have been strengthened, with a minimum net-worth requirement of Rupees two crore.

Additionally, the recent entry of DSP Pension Fund Managers as the 11th Pension Fund has added diversity to the sector.

Subscribers can now get systematic lump-sum withdrawals, choose from multiple Pension Funds (PFs) for each asset class, and experience more flexibility in their equity exposure.

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Aditya Birla Sun Life AMC is bullish on IT stocks, expects 8-10% growth in the sector

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahesh Patil, the Chief Investment Officer (CIO) at Aditya Birla Sun Life AMC on Friday, January 19, expressed a positive outlook on the Information Technology (IT) sector. Patil conveyed the company’s readiness to consider adding IT stocks during market declines.

His’s optimism extends to projecting an 8-10% growth in the IT sector, with the possibility of a return to double-digit growth over the next two to three years.

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Turning the spotlight to the hospitality and travel industry, Patil highlighted a noteworthy supply-demand imbalance, predicting favorable conditions for sector profitability.

He noted a scarcity of new supply in the hotel space.

The CIO pointed out that the average revenue per room (ARR) in the hotel sector is currently at a higher level.

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On the banking sector, Patil acknowledged pressure on the deposit side due to tight liquidity conditions.

Patil suggested that banks might need to increase deposit rates to address this imbalance, but he maintained an overall positive outlook for the sector.

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Commenting on the upcoming Union Budget, Patil stated that there are not many expectations from market perspective. However, he emphasised the need for clarity on the indexation benefit, especially for long-term investors entering the bond market through mutual funds.

Patil highlighted that providing clarity in this area could reignite flows into the mutual fund industry, particularly in the fixed-income space, contributing to the development of the bond market and enhanced liquidity.

For more, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SEBI eyes action on mule accounts to curb inflated IPO subscription numbers: Chairperson Buch

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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“The price discovery mechanism of IPOs is imperfect… If you’re an investor, which means you want to hold for a reasonable period of time, then why are you wanting to take this risk? Wait until the price stablises; possibly wait until the first set of quarterly results come. There is no hurry and there is no impact cost for a retail investor,” she said.

Buch further acknowledged the time value of money and stressed the potential consequences of regulatory delays for IPO issuers.

In an effort to streamline the process, she proposed reducing the ageing of IPO draft papers and introducing new forms of observations to expedite approvals.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CDSL allows investors to get statements in 23 languages, launches 24*7 market chatbot

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Central Depository Services (India) Limited (CDSL) has launched two initiatives aimed at promoting inclusivity and accessibility in the capital market landscape. These include inclusion of multi-lingual Client Account Statement (CAS) and launch of CDSL Buddy Sahayta 24*7′ Chatbot.

With the ‘Apka CAS – Apki Zubaani’ initiative, investors can now receive their statements in any of the 23 diverse Indian languages, promoting ease of accessibility, CDSL said in a statement.

“This initiative will offer investors a consolidated view of their securities held in a demat account in a language of their choice,” it said.

On the other hand, the newly launched ‘CDSL Buddy Sahayta 24*7′ chatbot is aimed to simplify investors’ journeys towards self-sufficiency.

Initially available in four languages, the chatbot will provide round-the-clock assistance to investors navigating the complexities of the securities market.

This initiative aligns with CDSL’s ongoing efforts to enhance market awareness, especially in the realms of cybersecurity and financial literacy, CDSL said.

Additionally, CDSL, in collaboration with knowledge partners KPMG, presented a Thought Leadership Report titled ‘Reimagine Digital Trust in Capital Markets.’

Further, as part of its 25th-anniversary celebrations, CDSL concluded the ‘Neev’ campaign, a Pan-India Financial Literacy initiative spanning 25 cities.

CDSL, India’s listed depository, maintains and services over 10 crore demat accounts of Investors or Beneficial Owners (BOs) spread across India.

It began operations in February 1999 and facilitates holding and transacting in securities in electronic form and facilitates settlement of trades on stock exchanges. Its major shareholders are the BSE, Standard Chartered Bank, PPFAS Mutual Fund, LIC, and Canara Bank.

The subsidiaries of CDSL include CDSL Ventures, which is the first and the largest KYC registration agency since 2008 with over 4.5 crore records; CDSL Insurance Repository and CDSL Commodity Repository.

Meanwhile, the total number of new demat accounts opened in December 2023 reached a historic high of 42 lakh. With this, the number of demat accounts in India now stands at 13.93 crore. This is a 50% surge compared to November, which saw 28 lakh new demat accounts.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

UIDAI’s new Aadhaar update rules: From revised forms to ways for changing information

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Unique Identification Authority of India (UIDAI) has recently announced a comprehensive update to the Aadhaar (Enrolment and Update) rules. The revision introduces user-friendly changes aimed at making Aadhaar enrolment and updates more accessible for residents and non-residents alike.

These regulations may be called the Aadhaar (Enrolment and Update) Amendment Regulations, 2024, UIDAI said in a notification.

Here are the changes introduced by UIDAI:

Updated forms for enhanced convenience

UIDAI has introduced new forms for both Aadhaar enrolment and updates.

These forms are now tailored for residents and non-residents (NRIs), with specific categories based on age and address.

The fresh approach is set to eliminate confusion and streamline the application process.

Two paths to update information

Unlike the previous rules, the new regulations offer two convenient ways to update information in the Central Identities Data Repository (CIDR).

Individuals can choose between visiting an enrolment centre or utilising the official website/mobile application for seamless updates. This marks a departure from the 2016 rules, which only allowed online address updates.

Form replacements for clarity

The existing forms for Aadhaar enrolment and details update have been replaced with new, simplified versions. The updated Form 1, designed for residents and non-residents with proof of address in India aged 18 and above, now streamlines the process and ensures clarity in the information provided.

For non-resident individuals, especially those with addresses outside India, specific forms (Form 2 for enrolment and updation) have been introduced.

NRIs are required to provide a valid Indian passport as proof of identity, and an email ID becomes mandatory.

Forms 3, 4, 5, 6, and 8 have been introduced to cater to the enrolment and updates for children of various age groups, both resident and NRI.

The updated rules also address the enrolment of resident foreign nationals, both above and below 18 years of age, introducing Forms 7 and 8, respectively.

Foreign nationals must provide details such as a foreign passport, OCI Card, valid long-term visa, and an email ID.

Documented proof for complete date of birth

A notable change in the updated rules is the requirement for documentary proof if the age of an individual is declared or approximate.

This ensures that the complete date of birth is printed on the Aadhaar card, enhancing accuracy and authenticity, UIDAI said.

Periodic updates for continued accuracy

UIDAI has introduced Form 9, emphasising the need for Aadhaar number holders to update documents or information every ten years from the date of the Aadhaar generation.

This move aims to ensure the continued accuracy of information in the Central Identities Data Repository.

UIDAI has actively encouraged people to update their Aadhaar details, especially if not done in the last 10 years.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mastercard to introduce virtual card for medical claim payment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Payment network processor Mastercard is set to introduce a virtual card for medical claim payment solution in partnership with one of the leading financial institutions in India and a cloud-based health tech platform Remedinet. 

The company added that the facility will be available at all insurance-network hospitals in India on the Remedinet platform. The end-to-end solution will function by embedding virtual cards within the health tech platforms that connect payers and healthcare providers, such as Remedinet, using API connectivity.

Mastercard aims to ease the back-end of cashless claims by connecting hospitals, insurers and third-party administrators in India. 

Mastercard suggested that the virtual cards will provide a critical working capital solution by making the payout process nearly immediate. The virtual cards within the health tech platform would also provide detailed transaction data with the claim settlement information for all the bills paid with it.

This provides several benefits to insurance companies making the claim payment, including greater transparency into the claim status as well as easier and automated reconciliation.

“We’re on a mission to integrate our technology into platform providers to drive seamless B2B payment experiences at greater scale,” said Chad Wallace, global head of Commercial Solutions, Mastercard, “As we assessed industries where we can contribute with impact, healthcare emerged as a critical industry to unlock payment efficiencies.” 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Personal finance, start-ups, fintech seek tax exemptions ahead of Union Budget 2024

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The personal finance, start-ups, and fintech sectors are collectively urging for increased tax exemptions in the upcoming Union Budget 2024, presenting their wish list to Union Finance Minister Nirmala Sitharaman. While recognising the formidable challenge of meeting these demands, the industry is putting forth its key requests.

Ankit Agrawal, CEO and co-founder of InsuranceDekho said, “We anticipate that the finance minister will exempt insurance policies from GST, which will bring down insurance premiums. This step will increase insurance affordability and help fulfill Prime Minister Modi’s dream of insurance for all Indians by 2047. Additionally, we expect the government to increase the tax exemption limit under 80C, which will encourage savings, promote insurance coverage, and stimulate economic growth.”

Agarwal also said, “Despite it being an interim budget, we want the government to support the startup ecosystem by further easing the ease of doing business. The majority of startups fail, and hence it’s equally important to not only ease starting up but also make it easier for entrepreneurs to move on in case they are not able to establish a market-fit product. While the government is taking initiatives to promote entrepreneurship in India, we request that the government set aside more funds, provide access to newer technologies, ease tax rules, and further simplify regulatory requirements to encourage people to start their businesses.”

Siba Panda, founder and managing partner at ValuAble, said, “The investment community eagerly awaits a shift in sentiment toward startup investments following an extended funding winter. The rationalization of capital gains tax is sought to bolster capital inflows into the flourishing startup landscape, which has attracted a substantial $100 billion over the last six years. Despite apprehensions surrounding recent RBI regulations impacting Alternative Investment Funds (AIF), acknowledging the role of stringent standards in reinforcing the investment ecosystem becomes imperative.

A commitment to enhanced regulatory measures, combined with aligning AIF with global standards, serves to fortify the system, a crucial element for maintaining investor enthusiasm. Post the interim budget of 2024, expectations abound for continued further provisions in Union Budget 2024 that specifically cater to the startup ecosystem. These may include simplified regulations, heightened corporate governance, and incentives tailored for Environmental, Social, and Governance (ESG) practices, all contributing to fostering sustainable growth.”

Kumar Abhishek, CEO and founder of ToneTag added, “A thriving Fintech ecosystem is crucial for driving digital adoption and innovation in India. We would like to see policy implementations around regulations, streamlining licensing processes, and offering tax incentives for fintech startups in the upcoming budget. This will foster a dynamic environment where cutting-edge solutions like AI and Voice can flourish, propelling India’s digital transformation.”

To be seen is whether these expectations turn into reality or not on February 1.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Axis Mutual Fund launches fixed term plan with 91-day tenure: Should you consider investing?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Axis Mutual Fund on Thursday, January 18, launched the Fixed Term Plan – Series 120 (91 Days). The new fund offer (NFO), falling under the income category and characterised as a close-ended plan, will be available till January 23, 2024. The primary goal of the scheme is to deliver returns by investing in a diversified mix of debt and money market instruments.

However, there is no assurance that the investment objective of the scheme will be achieved, Axis Mutual Fund said.

With a tenure of 91 days from the date of allotment, the scheme’s liquidity feature allows units to be listed on the stock exchange(s) but cannot be directly redeemed until the maturity date.

Asset allocation

Under normal circumstances, the fund’s asset allocation will range from 0-100% in debt and money market instruments, reflecting a low to moderate risk profile.

Plans and options

Investors have the flexibility to choose between the regular plan and the direct plan.

Each plan offers two distinct options: Growth and Income Distribution-cum-Capital Withdrawal (IDCW).

Minimum application amount and mode

Interested investors can participate in the scheme with a minimum application amount of ₹5,000 and subsequent multiples of ₹10.

Notably, non-CTS/outstation cheques/demand drafts will not be accepted.

Applications in the New Fund Offer (NFO) will be processed exclusively through the Direct Credit mode (Transfer/NEFT/RTGS), the fund house said.

Switch-in requests

For investors looking to switch from equity and hybrid schemes, requests will be accepted until January 22, 2024.

Meanwhile, those switching from debt schemes will have time until January 23, 2024, to submit their requests.

Expense details

With no entry load applicable and an exit load set at nil, the scheme’s expenses, as estimated by the Asset Management Company (AMC), are expected to be up to 1.00% of the daily net assets.

Listing

Units of the Axis Fixed Term Plan – Series 120 (91 Days) will be listed on the capital market segment of the BSE and/or any other stock exchange.

In Conclusion

While the Axis Fixed Term Plan – Series 120 (91 Days) offers a decent investment opportunity with its diversified portfolio and strategic focus, investors should evaluate their investment goals and risk tolerance.

As market conditions remain unpredictable, prospective investors should conduct thorough research or seek professional financial advice before making any investment decisions, experts say.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Should you increase your mutual fund SIP amid the recent market slump?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mutual fund investors are in a quandary over whether to raise their Systematic Investment Plan (SIP) allocations or wait more amid the market sell-off. Indian shares have corrected over 3% in the last two sessions, receding from their recent highs.

The sharp decline in benchmark indices can be attributed to various factors, including HDFC Bank’s December quarter results failing to cheer the Street, a subdued global environment, and the impact of five-week high US Treasury yields.

Experts see the current fall in the stock markets as a good opportunity to pick blue-chips for long-term wealth creation. They also caution investors to not fall into the trap of pump-and-dump penny stocks.

Maintaining a long-term view amid short-term noise

Mukesh Kochar, National Head of Wealth at AUM Capital, advises investors to maintain a long-term perspective and ignore short-term market noise.

“The only thing that is important is to maintain proper asset allocation and avoid penny stock ideas. The idea of making quick money should be avoided,” he emphasised.

Penny stocks are low-priced stocks that typically have a small market capitalisation and are considered highly speculative.

Benefits of SIPs in a falling market

Nitin Shahi, Executive Director at Findoc, suggests that increasing SIP investments during market falls could be a healthy strategy.

SIPs enable individuals to keep pace with inflation and maintain their purchasing power.

Rupee cost averaging comes into play, lowering the average cost and fetching more units with the same investment amount. This averaging-down strategy can result in better returns when the markets recover.

Shahi also highlighted the role of diversification in reducing risks in highly volatile markets.

Divam Sharma, Founder and Fund Manager at Green Portfolio sees the current market fall as a short-term opportunity for investors.

He believes 2024 will provide more periods of volatility, offering investors opportunities for long-term wealth creation.

“Investors can increase SIPs over the coming days,” Sharma told CNBC-TV18.com.

Aditya Gaggar, Director of Progressive Shares, noted that the ongoing market correction provides an excellent opportunity for investors to add good-quality stocks.

He acknowledged the sharp correction in almost all sectors and anticipated further opportunities for investors.

SIP versus lumpsum: A strategic approach

As the debate continues between SIPs and lump-sum investments, experts weigh in on the benefits of SIPs.

Mukesh Kochar of AUM Capital highlighted the consistent upward journey of SIPs throughout 2023, with numbers surpassing 17,600 crore by the end of December. Concurrently, substantial lump-sum investments gained traction, particularly when the market was rising.

“That rally was broad-based one and in such a type of conviction rally, people tend to invest as fast as possible as the market is continuously on an upward journey and no one wants to do a higher average. However, retail investors tend to favor SIPs for their steady and synchronised approach to wealth creation,” Kochar said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This insurance policy is industry’s first annuity plan with 100% premium refund feature

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Prudential Life Insurance on Thursday, January 18, launched ICICI Pru Guaranteed Pension Plan Flexi with Benefit Enhancer. This annuity plan is the industry’s first, providing customers with an option to receive a 100% refund of premiums paid at any time, starting from the date of purchase, ICICI Prudential said in a statement.

The ICICI Pru Guaranteed Pension Plan Flexi is designed to address the apprehensions customers may have about retirement planning.

Key feature of the plan

The plan offers a range of annuity options, including a single life option where income is paid for the lifetime of the policyholder and a joint life option, wherein the income is transferred to the spouse, child, parent, or sibling after the policyholder’s demise—commonly known as the secondary annuitant.

The joint-life option comes with a ‘waiver of premium’ feature, ensuring that in the unfortunate event of the policyholder’s demise, all future premiums are waived, and the secondary annuitant continues to receive a life-long guaranteed regular income, the insurer said.

Additionally, the plan includes a loan facility, allowing customers to navigate unexpected financial emergencies while remaining invested in their retirement planning goals.

Boundary conditions

(Source: ICICI Prudential Life Insurance)

The objective

The introduction of this plan aligns with proposed regulations that aim to ensure customers receive a fair and appropriate surrender value, especially in the case of an early exit from the policy, the life insurance firm said.

Amit Palta, Chief Distribution Officer at ICICI Prudential Life Insurance emphasised that this industry-first feature is in alignment with the regulator’s proposals, underscoring the belief that insurance products should not only encourage long-term savings but also provide an exit route for customers facing financial constraints.

“The ICICI Pru Guaranteed Pension Plan Flexi aims to offer guaranteed life-long income, ensuring financial independence during the golden years. The waiver of premium benefit adds an extra layer of security by ensuring the continuity of income for the spouse in the unfortunate event of the policyholder’s demise,” he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow