Investment alerts

ICICI Securities, a subsidiary of ICICI Bank, has received the go ahead from the market regulator SEBI for issue of shares. In December, the company had filed its draft papers with the SEBI for the IPO and received observations on February 2, 2018. The company hopes to raise ₹3,000-4,000 crore through the sale of over 6.44 crore equity shares, of which 20 per cent stake is reserved for ICICI Bank.

ICICI Securities offers financial services such as investment banking, institutional broking, retail broking, private wealth management, and financial product distribution. It operates in 75 cities in India.

For uniformity of disclosure, SEBI has asked AMCs to disclose the actual total expense ratio (TER) on a daily basis. Investors remain uninformed about the change in TER for which SEBI had asked AMCs to provide TER under total expense ratio of mutual fund schemes on their website in a downloadable excel format. Any change in base TERs should be communicated to the investor via email or SMS at least three working days prior to the effective change.

However, any decrease in base TER would not require issuance of prior notice to investors. Such decrease can be communicated via SMS or email or uploaded on the website. This circular is applicable immediately for new schemes launched on or after January 8, 2018 and for existing schemes, it is applicable from March 1, 2018.

The GST council in a meeting held in January increased the threshold monthly maintenance charges limit to ₹7,500 from the earlier ₹5,000 limit for housing societies. Monthly maintenance charges are paid to co-operative housing societies or resident welfare associations (RWAs). The Ministry of Finance clarified that if monthly charges exceed ₹7,500 per month per member and the annual turnover of the RWA by way of supplying of services and goods is also ₹20 lakh or more, it has to pay GST. Smaller RWAs with low turnover do not have to register under GST.

Tasty Dairy Specialities’ IPO opened on February 7 and closes on February 12, 2018. The company is issuing 54,30,000 equity shares of ₹45 each, aggregating ₹2443.5 lakh. Of the total issue, 2,76,000 equity shares is reserved for the market maker. The company is involved in processing the milk, and is also into bulk milk procurement and handling. Additionally, it provides value-added products such as skimmed milk powder, butter, ghee, dairy whitener and concentrated milk.

Capricorn Food Products is into the manufacturing of tropical fruit pulp/concentrates, bulk frozen, fruit juices. It has filed the draft red herring prospectus with SEBI for its initial public offer (IPO) on February 6, 2018. There will be a fresh issue of 7,643,000 equity shares worth Rs 1,710 million by the company.

SBI Mutual Fund has introduced a Bandhan Systematic Withdrawal Plan, through which the investor can withdraw a specified sum of money on a regular basis from the investment made in the growth option of an open-ended scheme. The minimum transferable amount is ₹5,000 per month and the investor can transfer these funds to family members who are above the age of 15. The investor can cancel this Bandhan SWP at any time by submitting the cancellation request form. Tax will be applicable on the investor and not on the beneficiary. If the investor is transferring all the holding units to another scheme, the Bandhan SWP will be discontinued. To continue with SWP in a fresh scheme, the investor will have to submit a new application.

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