Mutual Funds Current Affairs - 2019
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The proceeds from the disinvestments have exceeded the disinvestment target for the fiscal 2018-19 by Rs 5,000 crore taking the total proceeds to Rs 85,000 crore against the targeted Rs 80000 Cr.
Disinvestment refers to the process of public asset sales by the government of India. Industrial Policy provides that in order to raise resources and encourage wide public participation, a part of the government shareholding in the public sector would be offered to mutual funds, financial institutions, general public and employees.
Disinvestments are undertaken to fulfil the objectives such as modernisation of the public sector through strengthening R & D, initiating diversification/ expansion programmes, retraining and re-employment of employees, funding genuine needs of expansion, widening the capital market basis and mitigating fiscal deficit of the government.
Financial Year: Proceeds from Disinvestment
2014-15: Rs 26,068 crore
2015-16: Rs 23,997 crore
2016-17: Rs 46,247 crore
2017-18: Rs 1,00,056 crore
This is the second highest disinvestment proceeds in a financial year and the government in fiscal 2017-18 had mopped up a little over Rs 1 lakh crore against the target of Rs 72,500 crore. The government has set a target of Rs 90000 crore for fiscal 2019-20.
Reliance Capital Asset Management (RCAM) has received nod from Competition Commission of India (CCI) to acquire Goldman Sachs’s mutual funds and exchange-traded funds business in India.
This approval comes after the boards of both the companies had approved the acquisition transaction. Now RCAM needs to get final nod of the Securities and Exchange Board of India (SEBI) to complete the takeover.
Under the acquisition deal, RCAM will acquire all 12 onshore mutual fund schemes of Goldman Sachs Asset Management (GSAM) India with total asset under management of 7132 crore rupees.
US based Goldman Sachs had entered the Indian mutual fund industry in 2011 with acquisition of Benchmark Mutual Fund for 120 crore rupees.
About Reliance Capital Asset Management (RCAM)
- RCAM’s is subsidiary of Reliance Capital which in turn is financial services arm of business conglomerate Reliance Group led by Anil Ambani.
- It is the country’s largest asset manager and is managing assets over 54,517 crore rupees ($39.15 billion) across various funds, schemes, and managed accounts.
- Presently, it is also present in insurance, brokerage and wealth management among other areas.