The Hindu Business Line : Update

The Bombay Stock Exchange has revoked the suspension of trading in units of Prudential ICICI SPIcE, an exchange-traded fund based on the Sensex. The fund has re-entered the exchange with a circuit limit of 10 per cent of the base price.

BSE has now defined a few modalities that include a base price of 1/100th of the previous day's close of Sensex, to be set on a daily basis. SPIcE can now be traded like any other listed stock.

UTI Mutual Fund plans to launch UTI Wealth Builder-a close-ended equity fund with maturity of five years. The fund will be automatically converted into an open-ended scheme on maturity. Investments would be made in a diversified portfolio of stocks and would be benchmarked against the Sensex.

Redemption and switch-out facilities will be provided on an on-going basis at six-monthly intervals at prices based on the relevant net asset value. The fund will invest at least 65 per cent of the assets in equities with an option to use derivatives to hedge the portfolio. An exit load of four per cent will be charged if redemptions made within a year of allotment.

Benchmark Mutual Fund has filed a prospectus with SEBI to launch an exchange-traded gold fund named Gold Benchmark Exchange-Traded Scheme. The fund will track domestic prices by investing in physical gold. Each unit of the scheme would be equal to the price of one gram of gold and would have a face value of Rs 100.

The Reserve Bank of India has allowed regional rural banks to market mutual funds in rural areas. The banks will however be allowed to market only primary issuances and not sell schemes acquired from the secondary market. The banks may restrict retailing to select branches.

Escorts Mutual Fund has announced monthly dividends. A dividend of 0.35 per cent has been announced under Escorts Income Plan and a 1.50 per cent dividend in Escorts Opportunities. Record date for dividends under both the schemes is May 22.

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