Domestic mutual funds have now been permitted by the SEBI to enter into underwriting arrangements. The move is aimed at expanding the investment scope of mutual funds. Under the new norms evolved by SEBI for this, it has been stipulated that the total underwriting obligations of a mutual fund at any time should not exceed the total value of the corpus of any scheme together with the undistributed profits lying to the credit of that scheme. SEBI has also made it clear to the mutual funds that the decision to take up any underwriting commitment should be made on the same lines as investment under a particular scheme.

Du Pont joins hands with NCL

The international chemical giant Du Pont Inc., USA, has tied up with National Chemical Laboratory (NCL), Pune, to enlarge its scope of activities in the country. As a first step towards putting a thrust on research and development activities in India, Du Pont and NCL have signed an agreement early this week for carrying out joint research and development work in the areas of polymers and catalysis. Under the agreement, specific projects would be identified where the US-based transnational and NCL would pool their expertise and resources.

Godrej entering insurance

Leading toiletry maker Godrej Soaps, anticipating the opening up of the country’s insurance business to the private sector, has tied up with Britain-based Rothschild to set up a joint venture insurance company, the managing director of Godrej Mr. Adi Godrej said. “We will enter the field as soon as the Government allows. us,” Mr. Godrej said in an interview after signing an MoU with Rothschild.

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