DSP Merrill to launch $100 mn gold fund
New Delhi: DSP Merrill Lynch Mutual Fund plans to launch an open-ended gold-linked fund in June this year to raise $100 million (over Rs400 crore) which it will invest in its world gold fund programme.

The World Gold Fund, with a size of more than $6 billion was launched in 1994 by the United States-based Merrill Lynch and invests predominantly in global conglomerates engaged in mining of gold and other precious metals.

RBI recently raised the limit of overseas investments by domestic mutual funds to $4 billion from $3 billion, in a bid to manage over $200 billion of forex reserves.

Lahiri said DSP Merrill Lynch is also planning to launch a Focus 25 fund during this year.

The fund would invest the money in select 25 stocks across different sectors with high growth potential.

Global fund house Merrill Lynch owns about 90 per cent in DSP Merrill Lynch, Hemendra Kothari, HMK Investment and Adiko Investment together have a 10 per cent stake.
Back to News Review index page  

Taurus MF to dilute equity stake to foreign co
New Delhi: Taurus mutual fund may sell as much as 50 per cent of its equity to a foreign partner to raise Rs40 crore.

According to data on the website of the Association of Mutual Funds of India, the assets under management of Taurus Mutual Fund for the month of April stood at Rs301.85 crore.

Taurus was set up in 1994. Initially, IFC Washington, Edinburgh Fund Managers London and Lazard India were the major shareholders in the company.

The Indian mutual fund industry is attracting many big players from overseas, with many smaller players being forced to either dilute a significant share, or get acquired.

Japanese firm Nomura is the latest foreign company looking to enter India. Korean financial services companies Shensei is said to be in talks with Andhra Bank, while Mirae is setting up a 100 per cent subsidiary in India.

The mutual fund industry has been growing at a rapid pace. The AUM of the Indian mutual funds grew 36 per cent in the past one year, from Rs257,108.65 crore in April 2006 to Rs350,441 crore as on April 2007.
Back to News Review index page  

BSE may sell stake to LIC, PSU banks
Mumbai: Asia's oldest bourse, The Bombay Stock Exchange (BSE), has entered into an agreement with — Life Insurance Corporation, State Bank of India, Bank of India and Central Bank — to sell a part of its holding. The four state-owned financial institutions would be offered the stake at Rs5,200 a share, the price at which BSE roped in strategic investors.

Sources said BSE was also in talks with about a dozen private sector players, including the investment arm of the Singapore government and StanChart Private Equity, to invest in the exchange. While Deutsche Boerse and Singapore Exchange have already bought 5 per cent each in BSE, the exchange is awaiting approval from the Foreign Investment Promotion Board to sell another 4 per cent to US-based Caldwell AMC.

The demutualisation guidelines allow BSE to sell up to 25 per cent to such institutional players — state-owned and private.
The move will take the total public shareholding in BSE over the 51 per cent mark and help it become a demutualised stock exchange, one where trading rights and ownership are distinct.
Back to News Review index page