By Rahul Satija Indian mutual funds are carving out their investments in troubled Vodafone Idea Ltd.’s debt into separate portfolios as they seek to limit any fallout from a possible default by the telecom carrier. UTI Mutual Fund and Nippon Life India Asset Management have moved to ring-fence their holdings in Vodafone Idea’s debt on Monday after credit assessor Care Ratings Ltd. downgraded the carrier’s borrowings, statements from the companies show. Last month, Franklin Templeton Mutual Fund also segregated the company’s debt. India’s top court has asked the nation’s mobile carriers to deposit a combined $13 billion in past dues for spectrum and licenses in a month, rejecting their plea for extended payment. Vodafone Idea, which owes the government the most among its peers, said its ability to continue as a going concern depends on whether the court will modify a previous order that had set Jan. 24 as the deadline for payment. After a series … [Read more...] about Default fear pushes funds to ring-fence Vodafone Idea debt
High yield bond fund
If Pakistan continues with the 'Grey List', it will be difficult for the country to get financial aid from the IMF, World Bank, ADB and the European Union, thus further enhancing problems for the nation which is in a precarious financial situation. … [Read more...] about Pak remains in FATF ‘grey list’ for failure to check terror funding
Greenhouse agritech platform Clover has raised $5.5 million from Omnivore, Accel, and Mayfield.Clover partners with farmers across India and markets premium quality, branded, greenhouse-grown fresh produce through B2B and B2C channels. It provides a full-stack agronomy solution to the greenhouse farmers in the network, improving yields and standardizing output quality.Clover’s business model centers around demand-led cultivation, a managed farm network, and full stack agronomy. Demand-led cultivation means that Clover grows high quality, consistent, and traceable fresh produce for specific and predictable client demands. The managed farm network of greenhouses are based in peri-urban and rural areas surrounding urban consumption zones, thereby ensuring freshness and reducing spoilage.“Clover is building India’s first fresh produce supply chain adapted to the challenge of climate change,” Mark Kahn, Managing Partner of Omnivore said.Based in Bangalore, Clover is … [Read more...] about Greenhouse agritech startup Clover raises $5.5 million
It could be ‘advantage smaller banks’ with the government proposing higher insurance cover for depositors and a number of mutual funds taking a hit due to defaults and downgrades in the past couple of years. Finance Minister Nirmala Sitharaman in her second Budget proposed to raise the insurance cover on bank deposits to Rs 5 lakh from Rs 1 lakh at present. This may not augment deposits for big banks that are already safe, but smaller lenders may see more seekers for their fixed deposit products. “Small banks always offered higher rates, but people were worried about putting money there because their business risks were less known. Now, with a higher insurance cover, small bank deposits will turn attractive,” said Vidya Bala, co-founder of PrimeInvestor.in. This could potentially eat into the pie of inflows to debt mutual funds which compete for depositors money. That, too, when a number of mutual fund schemes have taken a hit due to corporate defaults and … [Read more...] about Will better safety help smaller banks wean depositors away from MFs?
Banks lapped up Reserve Bank of India’s (RBI) fiRs t long-term repo operation (LTRO) for Rs 25,000 crore with a 3-year tenor with the central bank receiving 63 bids at 7.8 times — valued at Rs 1.94 lakh crore — of the notified amount. The pro-rata allotment set by the RBI was at 12.86 per cent, which means for every Rs 100 crore that a bank bid, it was offered Rs 12.86 crore. In a press release on its website, RBI described the auction results as highly encouraging. “The total bids that were received amounted to Rs 1.94 lakh crore, implying a bid to cover ratio (i.e. the amount of bids received relative to the amount announced) of 7.8. The total amount of bids has, in fact, exceeded the aggregate amount of Rs 1 lakh crore proposed to be offered under the LTRO scheme,” RBI said. Under the LTRO scheme announced in the monetary policy review on February 6, RBI will conduct term repos of oneyear and three-year tenoRs up to a total amount of Rs 1 lakh crore … [Read more...] about Rs 1.94 lakh crore bid for Rs 25,000 crore long-term repos