RBI lays guidelines for DFIs
Mumbai: The working group of the Reserve Bank of India has made several recommendations on development finance institutions (DFIs). The group says DFIs that the Centre does not support must convert themselves into either a bank or a non-banking finance company. DFIs that convert into banks will not get relaxations unless mandated by a statute. State finance corporations should be phased out within a definite time frame.

Special status conferred upon securities issued by public financial institutions should be done away with. All new financial institutions should be set up as a company to be registered with the RBI as in the case of NBFCs. They will be called development finance companies (DFCs). A net owned fund of Rs 100 crore has been recommended for the formation of such DFCs. The report added that a cap in terms of NOF may be fixed for mobilisation of public deposits by residuary non banking firms.
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Sahara Mutual on expansion drive
Mumbai: Sahara Mutual Funds has launched a major expansion drive and is targeting to recruit more than a hundred employees to man its couple of dozen new offices. The major expansion drive will see, besides addition of personnel, introduction of new schemes, including a few niche products and to begin with the company is launching a mid cap fund and a monthly income plan.

Sahara MFhas already concluded restructuring the board of its asset management company. The new faces on it include Mr Subroto Roy, promoter of Sahara India Parivar, and Mr Sanjiv Kapoor, an accounting professional. The Fund has also brought in a chief investment officer - Naresh Kumar Garg - who has been with UTI since 1989 and has handled a number of functions at the public sector fund house. From five centers at present the MF will now expand its reach by setting up offices in 24 new locations.
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ICICI insurance cos to go public
Mumbai: The ICICI group is opening its two insurance companies, ICICI Lombard and ICICI Prudential to the market. The group is also brining in a private equity investor for its business process outsourcing (BPO) company, ICICI OneSource.

The general insurance company ICICI Lombard, a 74:26 venture with Lombard of Canada, may come into the market this year while the group's life insurance arm ICICI Prudendial will go public later.

According to the company ICICI Lombard has become profitable after a one full year of operation with a RoE (return on expenditure) of 20 per cent and can be taken to the market. while
ICICI Prudential, a 74:26 venture with Prudential of the UK, will take another three years to break even.
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