Category: Excerpts

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Excerpts

Ambit’s Saurabh Mukerjea learns from the Commies

In the Soviet era communist regimes,there was a joke which went like this:

Don’t think.

If you think, don’t speak

If you think and speak,don’t write

If you think and speak and write,don’t sign

If you think and speak and write and sign,don’t be surprised

 

Nitin Mangal of Veritas was arrested for writing a negative report against India Bulls.Wall Street Journal has written a brilliant article on this.What I found most interesting in the article was Ambit’s Saurabh Mukerjea’s take:

Some of the issues highlighted in Veritas’s criticisms were “plainly obvious,” said Saurabh Mukherjea, head of institutional equities at the Mumbai-based Ambit Group, in an interview. “The problem is that Veritas went out with guns blazing,” which isn’t done in India, he said, because you could “end up in a police station late at night and never see the light of day.”

Instead of putting his controversial opinions in writing, Mr. Mukherjea said he generally tells his clients verbally “where the skeletons lie.”

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Excerpts

IRDAI to make listing compulsory for large insurers

(Disclosure:I am market making in the shares of ICICI Pru Life)

The Insurance Regulatory and Development Authority of India (Irdai) will make it mandatory for large life insurance companies to list within a specific period. So far, none of them, barring one, has shown interest in going to public, even after completing 10 years of operations.

According to sources familiar with the developments, private-sector life insurance companies with assets under management (AUMs) of more than Rs 60,000 crore will be the first ones that will have to list. The three largest insurance companies at present are SBI Life Insurance, ICICI Prudential Life Insurance and HDFC Life. Only HDFC Life has so far shown any inclination to list.

As on March 31, 2015, SBI Life had a total AUM of Rs 71,339 crore, HDFC Life had Rs 67,000 crore, and ICICI Prudential Life had Rs 1,00,183 crore.

According to Irdai norms, a company has to be in the insurance business for 10 years to be eligible to list on the equity market. The regulator considers the financial performance, capital structure after offer and solvency margin, among other factors, to give its approval.

Regulatory officials said this was an enabling provision and they would use it if required. “For life insurers with huge operations, we do not want one or two partners to share the risks and returns. It should be listed so that the capital could be shared with shareholders,” an official said.-from BS

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Nilesh Shah:Dumb money is leaving the country

Source:Safir

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RBL Bank selected as Best Private Sector Bank in Priority Sector

(Disclosure:I am market making in the shares of RBL Bank)

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Debt Excerpts

This is what a Debt Fund Crisis looks like

In the general interest of the Unit Holders of the JPMorgan India Treasury Fund and JPMorgan India Short Term Income Fund, JPMorgan Mutual Fund India Private Limited, the Trustee Company, has decided to limit the redemptions in the above referred two schemes effective August 28, 2015.

Accordingly, the Redemptions in these two schemes will be limited (“gated”) to a percentage limit not exceeding 1% of the total number of Units outstanding on any Business Day as mentioned in the Paragraph III. Units & Offer, Section B. Ongoing Offer Details ‘Right to limit Redemptions’ of the Scheme Information Document of each scheme and the Trust Deed.

Any Units which consequently are not redeemed on a particular Business Day will, subject to the further application of the Trustee Company’s right to limit Redemption, be carried forward for Redemption to thenext Business Day. Redemptions so carried forward will be priced on the basis of the Applicable NAV (subject to the prevailing Exit Load) of the Business Day on which Redemption is made.

Investors should note that Redemptions shall include Switches, STPsand SWPs also.-stated JP Morgan India