Sebi allows MFs to trade in gold and related instruments
Mumbai: The Securities and Exchange Board of India (Sebi) has amended its regulations, under the Securities and Exchange Board of India (Mutual Funds) (amendment) regulations, 2006, to allow mutual funds to invest in both gold and gold related instruments.

As per the amended regulations, a mutual fund scheme that invests primarily in gold and gold related instruments shall however be subject to certain investment restrictions. Initial issue expenses in respect of any GETF scheme shall not exceed six per cent of the funds raised under that scheme, Sebi said in a release.

The funds of such schemes shall be invested only in gold or gold-related instruments in line with its investment objective except to such extent that is necessary to meet the liquidity requirements for honouring re-purchases or redemption as disclosed in the offer document, it added.
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Tata Tele Maharashtra plans Rs.325-crore rights issue
Mumbai: Tata Teleservices (Maharashtra) Ltd (TTML) on Tuesday filed a letter of offer, for a rights issue, with SEBI to mobilise Rs300-325 crore to meet its ongoing funding requirements.

The rights issue is in the ratio of two shares for every 25 shares held and is priced at a premium of Rs15-17 on a face value of Rs10 each. The company is not certain as to the exact amount that will be divested as there are still some outstanding convertibles, which may be converted before the record date. Officials said, however, that since the company's existing share capital is Rs1,500 crore, less than 10 per cent stake will be divested even at a price of Rs25 a share.

The Tata Group companies collectively own 65.53 per cent of the issued and paid-up equity capital of the company, including Tata Teleservices Ltd (TTSL), which owns 47 per cent of the issued and paid-up equity capital of TTML.

"Under the terms of the loans availed of by the company, TTSL has pledged its shareholding in favour of the lenders and has also undertaken that the percentage of shares pledged by it would not be less than 50.83 per cent of our total subscribed equity shares (subject to any dilution as a result of exercise of employee stock options)," said the draft offer letter.

The Tata Group owns almost the entire equity interest in TTSL and approximately 46.5 per cent of the equity interest in VSNL. For the fiscal ended March 31, 2005, the company has incurred a net loss of Rs527.86 crore. "We have incurred net losses since incorporation and expect to continue to incur losses for the foreseeable future due to the nature of the business, which involves capital and operational expenditure for the development and expansion of our network," the offer document said.

TTML operates in two telecom circles — Mumbai and Maharashtra (including Goa). The company offers CDMA wireless services (comprising CDMA mobile and CDMA fixed wireless services) and wire-line services in these circles.
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Tata Mutual unveils Tax Advantage Fund-1
Mumbai: The Tata Mutual Fund on Tuesday unveiled an equity-linked savings scheme, Tata Tax Advantage Fund-1. The 10-year close-ended scheme will invest its corpus mainly in equity and equity-related instruments and 0-20 per cent in debt and money market. It will offer tax benefits under Section 80-C of the Income Tax Act, 1961. The lock-in period under the scheme is three years.

The scheme will close for subscription on February 20, after which, no fresh investments will be accepted. The close-ended nature of the scheme, enables fund managers to take long-term bets in the equity market.

Ved Prakash Chaturvedi, managing director, Tata Mutual Fund, said, "The close-ended nature provides fund managers the opportunity to invest in fundamentally strong stocks that are likely to create long-term value. The ability to create a stable portfolio with lower turnover could result in lower transaction costs for investors."

Minimum investment under the scheme is Rs500. The scheme will charge 2 per cent entry load. There will be no exit load. The benchmark index for the scheme is Bombay Stock Exchange's Sensex.
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Kotak launches Kotak Lifestyle open ended scheme
Mumbai: Kotak Mahindra Mutual Fund has launched Kotak Lifestyle, a diversified open-ended equity growth scheme that enables investors to ride the wave of consumerism.

According to fund officials, the scheme seeks to generate long-term capital appreciation from a portfolio of equity and equity-related securities spread across those companies that are likely to benefit by changing lifestyle and rising consumerism in India.

The new fund offer opened on Tuesday and will close on February 22.
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