Make LIFE INSURANCE More accessible to consumers across India


For immediate release

Allahabad Bank and SBI Life Insurance announce a Bancassurance partnership, to make insurance more accessible to consumers across India


Kolkata, December 31, 2018: Allahabad bank country’s premier and oldest nationalised bankand SBI Life Insurance one of the largest private life insurers in India came together and signed a Bancassurance pact, to offer a holistic financial planning solution to consumers.

One of the largest Bancassurance partnerships in the country will see 3,238 branches of Allahabad bank across the country offer SBI Life’s range of protection, wealth creation and savings products to its customers.This will empower the consumer to address their complete financial needs under one roof.

The agreement was signed in the presence of Shri CH.S.S Mallikarjuna Rao, MD & CEO, Allahabad Bank & Shri Sanjeev Nautiyal, MD & CEO, SBI Life..

Commenting on the significance of the landmark tie-up, Mr. Mallikarjuna Rao, MD & CEO, Allahabad Bankstressed about bank's objective of offering wider choices of life insurance products to the customers under one roof and also augmenting on non-interest income of the bank.

Speaking about the partnership, Mr. Sanjeev Nautiyal, MD & CEO, SBI Life Insurance said, “Our success in leveraging our banca channel to add value for consumers gives us a reason to be thrilled about the opportunities that our partnership with Allahabad bank presents. Consumers will now have a direct access to SBI Life’s range of protection, wealth creation and savings products, providing a holistic financial planning solution”. He further added, “We believe strengthening our distribution network will go a long way in making insurance more accessible to the general public and our partnership with Allahabad bank is a step in that direction”.


About SBI Life Insurance Company Limited:
SBI Life Insurance Company Limited (“SBI Life”/ “the Company”), incorporated in the year 2000, is a joint venture between State Bank of India and BNP Paribas Cardif S.A. and is one of the leading life Insurance companies in India. SBI Life has an authorized capital of ` 20.0 billion and a paid up capital of ` 10.0 billion as of September 30, 2018.
SBI Life offers a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency. The Company offers individual and group products which include protection and savings plans to address the insurance needs of diverse customer segments.
SBI Life has a multi-channel distribution network comprising of an expansive Bancassurance channel with SBI, which has an unrivalled strength of over 22,000 branches across the country. SBI Life also has a large and productive agent network comprising of 113,045 agents, as on September 30, 2018. The Company’s other distribution channels include direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries. As on September 30, 2018, the Company has a widespread network of 848 offices across the Country to address customer needs effectively and efficiently. The Company had an AuM of ` 1,261.7 billion as of September 30, 2018.
The Company is listed on National Stock Exchange (“NSE”) and The Bombay Stock Exchange (“BSE”).

For press queries

SBI Life

Santosh Setty                         
Landline: +91-22-6191 0034                  

Minakshi Mishra                             
Landline: +91-22-6191 0140


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Mutual Fund Penetration in India has a long way to go...dec 2018

Mutual Fund 
Penetration in India 
has a long way to go

As on December 2018 
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Time to Save Income Tax 5 Best ELSS FUNDS FOR 2019

Time to Save Income Tax 
5 Best ELSS FUNDS 
FOR 2019
From ET  Tax Saving Investment - MF
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How Retail Mutual Fund Investors can Build a Low-risk Portfolio for 2019..!


How Retail Mutual Fund Investors can Build a Low-risk Portfolio for 2019..!


By Mr. Rajesh Naidu ET Intelligence Group

For retail mutual fund investors, 2018 has been rather dismal.

A large number of equity schemes have underperformed their benchmark indices. According to data from mutual funds data-tracking agency
Accord Fintech, 30 investment plans of 32 large-cap schemes have been unable to outperform their benchmark indices.

The key reason for this is the lack of earnings growth, which has made the task of identifying ideas a tad difficult for fund managers. Experts point out that earnings growth in 2019 would not be secular either and only select themes would work.

They suggest a combination of banking and PSU bond schemes, liquid funds of large Asset Management Companies (AMCs), and balanced and multi-cap schemes (with at least five-year SIP horizon) for retail investors to tide over the various uncertainties in 2019.

The uncertainty surrounding the general elections outcome, the pace of interest rate increases by the US Federal Reserve, and geopolitical unknowns in 2019 point to periods of extreme volatility. To deal with this, retail investors require a low-risk portfolio, which holds the promise of reasonably good returns in volatile markets.

“There are quite a few important developments next year and these may keep the markets volatile.... To beat this volatility, I think retail investors need to create a fairly defensive portfolio,” said Mr. Kaustubh Belapurkar, director (fund research), Morningstar India.

 “A combination of Exchange Traded Funds (ETFs), Banking and PSU bonds schemes, balanced and multi-cap schemes could serve retail investors well to help insulate his or her portfolio from the volatility in markets and, at the same time, gain meaningfully from any appreciation.”

Experts point out that 50:50 allocation to equity and debt spread across pure debt, balanced, Exchange Traded Funds (ETFs) and multi-cap schemes would help investors construct a relatively low-risk portfolio.


“I think this is the right time for retail investors to construct a proper low-risk portfolio with careful allocation and which also deliver reasonably good returns in the long-term,” said Mr. Rupesh Bhansali, head-mutual funds, GEPL Capital.

“I would recommend adding Gold ETFs also.”

Bhansali suggests that if a retail investor has hundred rupees, he or she can invest 25% of the money in banking and PSU bond schemes, 10% in liquid schemes, 10% in gold ETFs, 20% in balanced schemes, 15% in Nifty ETFs, and 20% in multi-cap schemes.

Experts suggest retail investors invest in multi-cap, balanced funds and ETFs with a minimum investment horizon of five years. They recommend a five-year Systematic Investment Plan (SIP) route to buy these schemes.

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RBI cancels registration of 1,490 NBFCs in 2 years; CHENNAI 4TH PLACE with 103


RBI cancels registration of 1,490 NBFCs in 2 years; CHENNAI 4TH PLACE with 103

BY Mr. Abhijit Lele,  Business Standard

Stepping up oversight over credit companies, the Reserve Bank of India has cancelled the registration of 1,490 non-banking financial companies (NBFCs). These included NBFCs that failed to meet prudential norms and those that voluntarily surrendered registration.

Kolkata tops the list with 617 cancellations, and New Delhi stands at second spot with 203, followed by Mumbai at 190, according to the data provided by the RBI for parliamentary questions (Lok Sabha).

These cancellations happened owing to non-compliance with mandatory requirements like minimum net-owned funds (NoF) of Rs 20 million, not submitting statutory returns, and companies not being traced at the addresses they gave.

In some cases, NBFCS surrendered the certificate of registration, the RBI said.

The RBI said NBFCs registered with the regulator were subject to on-site inspection and off-site monitoring through return submission and statutory auditors’ reports.

Analysts said finance companies had become crucial in extending support in the last mile to reach customers where banks experience limitations due to structure and staff strength. Finance companies have a nimble set-up, reach and flexibility to reach even remotest locations.

NBFCs are a key link in extending credit and other financial services to micro, small and medium enterprises (MSMEs) and those at the bottom of the pyramid across the country.

According to the Financial Stability Report published by the RBI in June 2018, loans and advances of the sector increased 21.2 per cent and investments 13.4 per cent. The aggregate balance sheet size at the end of March was Rs 22.1 trillion.

Senior NBFC executives said the quality of risk management and governance by finance companies had a bearing on the financial stability of the system. Defaults by Infrastructure Leasing & Financial Services (IL&FS) and its group entities in the second quarter of the current financial year (FY19) were a major setback to the financial system and hit liquidity for finance companies.

The RBI has stepped up supervision and now looks at liquidity management and loan books for asset quality to spot gaps and risks. The major concerns flagged about finance companies include borrowing short-term for lending to long-term assets, often leading to asset-liability mismatch. Governance and risk management practices need improvement.

According to the Financial Stability Report, there was a deceleration in the share capital growth of NBFCs, whereas borrowing grew 19.1 per cent, implying rising leverage. NBFCs have to maintain minimum Tier I and II capital of not less than 15 per cent of aggregate risk-weighted assets. All finance companies are subjected to prudential regulations such as capital adequacy requirements and provisioning norms, along with reporting requirements.

In March 2018, there were 11,402 of these companies registered with the RBI. Of those 156 were deposit-accepting (NBFCs-D). There were 249 deemed systemically important non-deposit accepting NBFCs. The number has come down to 10,102 by the end of September 2018, according to the RBI data.


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6 out of 10 women have bought a term plan

6 out of 10 women in Hyderabad have bought a term plan, AEGON Life


Rajeev Chugh, Chief Financial Officer, AEGON Life Insurance company said, “We are happy to announce the launch of ‘POS GRIP’. It is in line with our philosophy of launching simple, easy to understand products for our customers. It provides tax efficient assured returns for customers who like to invest in fixed return instruments. It is easy to understand and can be bought online at the customer’s convenience. Our regional market is also expanding, and we have specific plans for regional markets in the pipeline.”

While speaking about their presence in Hyderabad Mr. Chugh said, “Hyderabad is a leading market for us and we are focused on creating a value proposition for our customers. Given Hyderabad’s rich culture, people there understand the concept of life insurance and the need for one to protect their loved ones. 76% of our customers have opted for term plans.”

He further adds, “More than 80% customers are between the age group 25-45 years, 8 out of 10 customers have chosen to protect their families at an early age. Women also have realized the need for life insurance. As per our data, more than 65% women customers opted for protection in Hyderabad. i.e. 6 out of 10 women in Hyderabad have taken a term plan from Aegon Life.”

“Lastly, Hyderabad as a city is rapidly adopting the online buying culture. Of the total policies bought online out of which 97% are protection. 9 out of 10 policies bought online are term. An unwavering commitment to markets like Hyderabad has enabled us to gain insights from the emerging customers and consistently innovate when creating new products.”

The relationship between AEGON Life and Hyderabad comes a long way. The insurer started its operations in the year 2008 and since then, it has expanded its footprint in Hyderabad and Telangana/Andhra Pradesh enabling customers to financially protect their family's future As of now December 2018, AEGON Life services customers from more than 300 cities and towns across India. This is backed by a very strong digital presence that allows the company to establish a direct to customer dialogue. AEGON life is the pioneer in online term plans and 60% of their protection plans are online.
AEGON Life insurance recently launched second leg of their campaign ‘AEGON, toh Tension Gone’ through a TVC and signed Vicky Kaushal as their Brand ambassador. Through this, AEGON Life is urging customers to not procrastinate buying term insurance.
 
ABOUT AEGON LIFE INSURANCE COMPANY

AEGON Life in India is a new-age digital service company and is amongst the first companies to launch Online Term Plan in India. Being the online protection specialists, AEGON Life has a company-employed service team that is fully geared to provide customers the highest levels of service. The company’s Direct to Customer focus establishes a direct dialogue with the customers to make for greater clarity and transparency. According to a recent report published by IRDA in September 2018, AEGON Life ranked #1 in average New Business Sum Assured per policy in the individual regular (non-single) premium category. This ranking included all the players, even LIC. https://www.aegonlife.com/ 

ABOUT AEGON:

AEGON’s history dates back for almost two centuries, however AEGON as we know it today was founded in 1983 following the merger of two Dutch insurance companies, AGO and Ennia. Today, AEGON is one of the top-10 largest insurance companies in the world. AEGON is one of the world's leading providers of life insurance, pensions and asset management headquartered in The Hague, Netherlands. Globally, AEGON has operations in over 20 countries and covers more than 29 Million Lives. As of December 2017, AEGON managed more than EUR 817 billion of revenue-generating investments
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NBFC - Non-Banking Financial Institution- and its specific guidelines


NBFC (Non-Banking Financial Institution) and its specific guidelines



NBFC is an institution under the Companies Act 2013 or 1956 who is basically engaged in the business of loans and advances, equities, acquisition of stocks, debt etc issued by the government or any local authority. The objective behind the NBFC registration is to accept deposits under any scheme or manner.

As per section 45 (c) of the RBI Act, a Non-Banking Company engaging in the business of a financial institution will be an NBFC. The Ministry of Corporate Affairs and the Reserve Bank of India govern this kind of institutions.

Which NBFCs are not required to obtain any registration with the Reserve Bank of India?

  1. Merchant Banking Companies
  2. Core Investment Companies (assets < 100 crore or public funds are not taken)
  3. Companies those who are engaged in the business of stock-broking
  4. Companies those who are engaged in the business of Venture Capital.
  5. Housing Finance Companies
  6. Insurance companies which are having a certificate of registration issued by IRDA.
  7. Chit Fund Companies under the Sec 2 clause (b) of the Chit Fund Act, 1982
  8. Nidhi Companies

Types of NBFCs

On the basis of the Activity nature
  1. Asset Finance company
  2. Investment Company
  3. Loan Company
  4. Infrastructure Finance company
  5. Core Investment Company
  6. Micro-Finance Company
  7. Housing Finance Company
  8. Mortgage Guarantee Company
On the basis of the Deposits
  1. Deposit accepting NBFCs
  2. Non-deposit accepting NBFCs

What are the requirements and procedure for incorporating NBFCs?

Following are the procedure and requirements for commencing new NBFC in India:
  1. First and foremost, the company must be registered under the Companies Act 2013 or under Companies Act 1956.
  2. Rs. 2 crores should be the minimum net owned fund of the company.
  3. There must be at least one director from the same background or a senior banker as a full-time director in the company.
  4. The CIBIL score of the company must be crystal clear.
  5. Then, fill the online application on the website of RBI and submit it along with the requisite documents.
  6. CARN number will be generated.
  7. Application's hard copy has to be sent to the regional branch of the Reserve Bank of India.
  8. When the application is properly scrutinized, the License will be granted to the company.

What are the specific guidelines for an NBFC?

The following guidelines must be adhered by the company after getting an NBFC license:
  • NBFC can't receive deposits which are payable on demand.
  • The minimum period for public deposit is for 12 months and the maximum time period is 60 months.
  • The interest rate of NBFC can't be more than the ceiling prescribed by the RBI (Reserve Bank of India).
  • Any repayment of the amount taken by the company will not be guaranteed by the RBI.
  • The composition of the company and the information about the company has to be furnished to the RBI.
  • All the deposits taken by the public will be unsecured.
  • Every year, the company needs to submit its audited balance sheet.
  • Every statutory return on the deposits taken by the company has to be furnished in the form NBS- 1 every year.
  • Every quarterly return on the liquid assets of the company has to be furnished.
  • A Certificate must be drawn from the auditors stating that the company is in a position to pay back all the deposits or money taken from the public.
  • Half-yearly ALM return must be given by the company which has a Public Deposit of Rs. 20 crores and above or has assets worth Rs. 100 crore and above.
  • In every 6 months, the credit rating has to be taken and submitted to the RBI.
  • Public deposits up to the level of 15% have to be maintained by the company in Liquid Assets.
In case the NBFC defaults in the payment of any amount taken, then the consumer can go to the national company law tribunal or the consumer forum to file a suit against the company.

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Investments for New Year 2019 Top TEN High Return Mutual Funds




Best High Return Mutual Funds to invest in India in 2019.
 There are many mutual fund (MF) schemes which can be invested based on risk appetite & tenure. 
If you are looking for highest return MF schemes, you may invest based on highest returns provided by MF schemes over a period of  three years..



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Download Free Ebook - 10 Big Lies That Skew Retirement Planning..!


“Don't simply retire from something; have something to retire to.”- Harry Emerson Fosdick

Where and how would you like to spend your retirement?

Keeping in mind the general responses that I get, I will give you a few options:
·         You think retirement will not change anything. You will continue to live with your family and will share the expenses. Even if you are in rented place, you will try to adjust your life to that of earning members of the family.
·         You will build or buy a home for yourself. You will expect that your kids live with you and take care of you, as you will not have adequate income after building the house.
·         You would like to live an independent life. You will build a separate home and if the kids like, they can live with you; otherwise you will not be a dependent, as you are financially free.

These days retirement is a real challenge due to little or no pensions, shifts towards the nuclear family system, the increasing longevity of life, rising medical expenses, etc.

Retirement is a time in life for which you have no option. Age puts you in this phase of life and you need to survive.  Physically, you have a relatively weak body and you could have heavy responsibilities, if you have not planned your financial life well.

The icing on the cake is that now, with changing times, family sizes are diminishing and ages are increasing. So you have fewer people to depend on for your care and you have more years to live.

Let’s look at some of the BIG LIES.






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AUM OF MUTUAL FUNDS NOVEMBER 2018

 AUM OF INDIAN MUTUAL FUNDS

 NOVEMBER 2018



Mutual Fund Industry, Mutual Fund Investors
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Attention File ITR Before December 31, 2018

Attention File ITR Before December 31, 2018



Income Tax - Filing
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LIC of India’s Jeevan Shanti - A case of mis-selling?


LIC of India’s Jeevan Shanti -  A case of mis-selling? 

Mis-selling is not just about selling bad products to the consumers. It is also about selling good products the wrong way.

LIC Jeevan Shanti is a fine annuity product. However, the way it is being sold (or so is my doubt), does it fall under the latter category?

Fine products being sold the wrong way or with a wrong impression to the investors.

In this postI will highlight the issues with the promotional material being used to sell LIC Jeevan Shanti.

You can decide if that constitutes a case of mis-selling.

Click here to continue.

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Investing Mantra's - Investment Mis-selling

Investing Mantra's - Investment Mis-selling


Mis-selling is not just about selling bad products to the consumers. It is also about selling good products the wrong way.

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2018: These Shares Tripped Ace Investors, Too..!


2018:  These Stocks Tripped Ace Investors, Too..!

Calendar 2018 taught some hard lessons to retail investors, especially those who blindly ape established names on Dalal Street, as even biggies like Mr. Rakesh Jhunjhunwala, Mr. Dolly Khanna, Mr. Anil Kumar Goel and Mr. Porinju Veliyath faced the heat in the prolonged selloff.

Take this: As many as 10 of Jhunjhunwala’s portfolio stocks plunged over 50% from January until December 17.
Among the top wealth destroyers, Mandhana Retail tanked 76%, followed by Geojit (down 65%), DHFL (down 63%), Prozone Intu Properties (down 60%) and Prakash Industries (down 58%).

Some of his other favourites like Orient Cement, Anant Raj, Aptech, Bilcare, Man Infra Construction, TV18 Broadcast and Ion Exchange have declined between 40% and 54% for the year till date. Other holdings such as VIP Industries, Firstsource Solutions and Titan Company, however, played saviour and gained 49%, 26% and 9%, respectively.
Shankar Sharma of First Global in an earlier interaction with ETMarkets.com said one should never ape others in the stock market. “You should read a lot. This will help you develop your own style. You can take some elements from others, but ultimately you have to find your own style in investing,” he said.

Kochi-based investor Porinju Veliyath also took a massive hit on his portfolio, comprising largely small caps and midcaps. Stocks owned by his wealth management firm Equity Intelligence, like LEEL Electricals, Liberty Shoes, Shalimar Paints, Ansal Buildwell, Eastern Treads, Kerala Ayurveda and BCL Industries slipped between 35% and 81% in 2018.
Most of the shares held by Chennai-based investor Dolly Khanna also moved southward during the year. Srikalahasthi Pipes, Rain Industries and Butterfly Gandhimathi Appliances dipped over 50% during the year. Khanna’s other stocks such as RSWM, IFB Agro, Mannappuram Finance, Nilkamal, Nocil and Ruchira Papers slipped between 7 % and 32%.
With over 1% holding in more than 30 companies, Anil Kumar Goel saw his portfolio value fall up to 73 % during the year. Samtex Fashions, Sarla Performance, Indsil Hydro Power and Manganese, Vardhman Holdings, KG Denim, Srikalahasthi Pipes, KRBL, Dwarikesh Sugar Industries, Shivam Autotech and Thirumalai Chemicals dipped between 50% and 75%.
Jhunjhunwala earlier told ETMarkets that excitement about mid-caps has mellowed down quite a bit. “Midcaps can’t trade at the valuation of large caps,” he said


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BSE - Trading Holidays for 2019 - Equity Segment, Equity Derivative Segment and SLB Segment

Trading Holidays for 2019 - Equity Segment, Equity Derivative Segment and SLB Segment

SI.NO.HolidaysDateDay
1MahashivratriMarch 04,2019Monday
2HoliMarch 21,2019Thursday
3Mahavir JayantiApril 17,2019Wednesday
4Good FridayApril 19,2019Friday
5Maharashtra DayMay 01,2019Wednesday
6Id-Ul-Fitr (Ramzan Id)June 05,2019Wednesday
7Bakri IdAugust 12,2019Monday
8Independence DayAugust 15,2019Thursday
9Ganesh ChaturthiSeptember 02,2019Monday
10MuharramSeptember 10,2019Tuesday
11Mahatma Gandhi JayantiOctober 02,2019Wednesday
12DussehraOctober 08,2019Tuesday
13Diwali BalipratipadaOctober 28,2019Monday
14Gurunanak JayantiNovember 12,2019Tuesday
15ChristmasDecember 25,2019Wednesday

  • Muhurat Trading shall be held on Sunday, October 27,2019 (Diwali – Laxmi Pujan). Timings of Muhurat Trading shall be notified subsequently.  

  • The Exchange may alter / change any of the above holidays, for which a separate circular shall be issued in advance.
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