...An Outlook on the Evolution, Scope and Growth Potential of the Mutual Funds Industry In Deyvaansh Misra Contents INTRODUCTION 3 A RETROSPECTIVE VIEW OF MUTUAL FUNDS 5 THE FUTURE LIES ON THE BRINK OF THE HORIZON 6 CONCLUSION 10 INTRODUCTION Shakespeare once wrote, ‘out of this nettle, danger, we pluck this flower, safety'. The Indian mutual fund industry has witnessed significant growth in the past few years driven by several favourable economic and demographic factors such as rising income levels and the increasing reach of Asset Management Companies (AMCs) and distributors. However, after several years of relentless growth, the industry witnessed a fall of 8 percent in the assets under management in the financial year 2008-09 that has impacted revenues and profitability. Recent developments triggered by the global economic crisis have served to highlight the vulnerability of the Indian mutual fund industry to global economic turbulence and exposed the increased dependence on corporate customers and the retail distribution system. It is therefore an opportune time for the industry to dwell on the experiences and develop a roadmap through a collaborative effort across all stakeholders, to achieve sustained profitable growth and strengthen investor faith and confidence in the health of the industry. Innovative strategies of AMCs and distributors, enabling...
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...Part 1: The Australian Accounting Environment Chapter 1 An overview of the Australian external reporting environment Review questions 1.1 Refer to pages 6 to 25 of the text. The main bodies responsible for regulating accounting disclosure in Australia are: (i) Australian Securities and Investments Commission (ASIC) Briefly, ASIC is responsible for administering corporations legislation within Australia (which includes various reporting requirements). According to its own website, the role of the ASIC is to enforce and regulate company and financial services laws to protect consumers, investors and creditors. (ii) Australian Accounting Standards Board (AASB) The role of the AASB is to develop a conceptual framework. It is also responsible for ‘making’ accounting standards that have the force of law under the corporations legislation, as well as formulating accounting standards that are to be used by reporting entities that are not governed by corporations legislation, inclusive of entities operating in the not-for-profit sector and public sector entities. The AASB is also responsible for Interpretations Advisory Panels, user focus groups and project advisory panels. As was indicated in this chapter, however, a great deal of the responsibility for developing accounting standards to be released by the AASB is in the hands of the IASB, as is the development of the conceptual framework. It is to be anticipated that only minor...
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...Services | | | Financial Services AssignmentSubmitted to Prof. S. Shanbhag | Shashank Gupta (2013266) | 9/6/14 | Financial Services | | Q. What does the Government of India hope to achieve with the new draft RBI guidelines for the wealth management industry? What are the reasons behind introduction of the new regulations? A. Reserve bank of India’s guidelines for the wealth management industry prohibit banks from offering discretionary wealth management services to their customers, wherein a portfolio manager independently manages funds of individual customers and takes their investment decisions. The discretionary portfolio management service also includes portfolios broadly directed by the customer, or those wherein the customer gives a negative list of investment products at the time of opening the account so that the fund manager ensures that such investment products are not included in the portfolio. In case of non-discretionary services, the RBI allows banks to work through a separately identifiable department or division (SIDD) or a subsidiary. Such a subsidiary or SIDD would require to be registered with market regulator Securities and Exchange Board of India (SEBI) and comply with SEBI guidelines on providing these services, including the code of conduct, if any. There should be an arm’s length relationship between the bank and the subsidiary if the latter is offering wealth management services, the central bank said. RBI has also stated that...
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...Internship Report Impact of Credit Rating on Corporate and Banking Sectors of Bangladesh A Study based on Ratings of Credit Rating Agency of Bangladesh Limited (CRAB) Exam Roll: 091127 Internship Report on Impact of Credit Rating on Corporate and Banking Sector of Bangladesh A Study based on Ratings of Credit Rating Agency of Bangladesh Ltd. (CRAB) Prepared For: Chairman Internship Placement Committee Prepared by: Exam Roll Number: 019927 Class ID: 892 4th year, 8th semester Batch Number: 18th, BBA Program Academic Session: 2008-09 Institute of Business Administration (IBA-JU) Jahangirnagar University, Savar, Dhaka 1342 Date: 16.02.2013 Letter of Transmittal February 16, 2013 Chairman Internship Placement Committee Institute of Business Administration Jahangirnagar University Savar, Dhaka 1342. Subject: Submission of Internship Report Dear Sir, It is an event of great pleasure for me to prepare and present the internship report on ‘Impact of Credit Rating on Corporate and Banking Sectors of Bangladesh: A Study based on Rating of Credit Rating Agency of Bangladesh Limited (CRAB)’ which is a requirement for the completion of BBA program. In this report I have tried to identify different aspects of the credit rating service and its impact on the corporate and banking sectors of the country. I have tried my best to organize all relevant information and do according to the instructions of preparing...
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...FSDC OVERVIEW A regulator is a public authority or government agency responsible for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity. An independent regulatory agency is a regulatory agency that is independent from other branches or arms of the government. Regulatory agencies deal in the area of administrative law—regulation or rulemaking (codifying and enforcing rules and regulations and imposing supervision or oversight for the benefit of the public at large). The existence of independent regulatory agencies is justified by the complexity of certain regulatory and supervisory tasks that require expertise, the need for rapid implementation of public authority in certain sectors, and the drawbacks of political interference. Some independent regulatory agencies perform investigations or audits, and some are authorized to fine the relevant parties and order certain measures. Regulatory agencies are usually a part of the executive branch of the government, or they have statutory authority to perform their functions with oversight from the legislative branch. Their actions are generally open to legal review. Regulatory authorities are commonly set up to enforce standards and safety, or to oversee use of public goods and regulate commerce. Economic regulators are the agencies established by central government for the control of or intervention in the operation of markets, according to public interest principles...
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...Corporate Social Responsibility in Agriculture sector By Mrs.Vanishree.V,MBA Abstract: As rightly said by Amartya Sen, intervention is required for the equitable distribution of wealth and improving the quality of life of the society and it must come voluntarily from the corporate houses and their top management. Thus, for a fast growing economy like India which is striding fast to become a developed country, the participation of the business houses in strengthening the economy has become indispensable.CSR is not new to India, even before CSR became a popular cause, it did exist in India. Companies like TATA and BIRLA practiced it in the form of social initiatives. In the light of the above, the paper attempts to explore the CSR initiatives and best practices of various selected Indian companies in Agricultural sector. Objective: The objective of this paper is to examine the nature and extent of corporate social responsibility (CSR) initiatives under taken by selected Indian companies in Agricultural sector and to study its relevance in business. Research Methodology: The research paper is an attempt of exploratory research, based on the secondary data sourced from websites, journals, magazines, articles and media reports. To study the above objectives 8 agro based companies were selected based on the CSR Report in their website. Limitations The main limitation of this paper is that this study has only focused on a small sample of Indian companies...
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...GOVERNMENTAL STANDARD SEniNG IN PERSPECTIVE The author examines the need tor a single body to set rules. by Michael H. Granof The problems of financial reporting by governmental units are unique and as a consequence the models for standards are not necessarily comparable nor can parallels always be drawn between governmental and corporate reporting. This article examines the differences between user requirements and explores the necessity for standard setting by a single body. First of ali, the sources from which investors derive information regarding securities of municipalities appear to be different from those of other types of organizations. Although there have been few research efforts to identify the factors which influence investor decisions to buy or sell specific municipal issues, it is believed that the bond rating assigned by Moody's or Standard & Poor's is the single most significant element. Available statistical evidence indicates a close correlation between the rating assigned to a bond and the price at which it is sold in the market. An improvement of one grade on the rating scale has been associated with a reduction in interest rate from 28 to 40 basis points (hundredths of a percent in interest rate).' Moreover, government securities are 1 Derived from tables in John E. Petersen, The Rating Game (New York: Twentieth Cenlury Fund, 1974), p.44. MICHAEL H. GRANOF, CPA. PhD., is associate professor of accounting at the University of Texas at Austin. He is currently...
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...ASSIGNMENT#1 Submitted By: Saadia 1. Accounting and Auditing Organization for Islamic financial institution (AAOIFI) The AAOIFI is a non-profit organization that focuses mainly on the area of accounting and auditing for Islamic financial institutions. While recognizing the need for standards, AAOIFI was established on February 1990 in Algeria and was registered on March 1991 in the kingdom of Bahrain. The organization is supported by 200 institution members from 45 countries across the global. The AAOIFI is one of prominent Islamic agency that attempts to install accounting and auditing standard for Islamic financial industry. The main object is to develop and disseminate accounting and auditing thought relevant to Islamic financial institutions and their applications. Its tasks include holding seminars, publishing periodicals, newsletters, commissioning research and prepare, promulgate, interpret and review, the accounting and auditing standards for Islamic financial institutions. Its notable efforts are to inform and encourage banking supervisors around the world to adopt its standard as the benchmark for Islamic financial institutions in their countries. These attempts to improve the transparency and comparability of the financial reporting of Islamic financial institutions are bearing fruit. The AAOIFI’s standard has been applied in various countries such as Bahrain and Sudan which require Islamic Banks in their countries to follow AAOIFI’s standards. In Qatar and Saudi...
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...Sustainability Reporting Guidelines & Oil and Gas Sector Supplement © 2000-2012 GRI Version 3.1/OGSS Final version The Oil and Gas Sector Supplement is based on the G3.1 Sustainability Reporting Guidelines © 2000-2012 GRI Version 3.1/OGSS Final version Oil and Gas Sector Supplement Sustainability Reporting Guidelines RG & OGSS Table of Contents Overview of the Guidance provided in this Document for the Oil and Gas Sector Human Rights Society Product Responsibility 43 47 52 Preface Sustainable Development and the Transparency Imperative General Reporting Notes Data Gathering Report Form and Frequency Assurance 10 Glossary of Terms Acknowledgments 12 12 13 14 54 54 55 56 58 Introduction Introductory Section for the Oil and Gas Sector Overview of Sustainability Reporting The Purpose of a Sustainability Report Orientation to the GRI Reporting Framework Orientation to the GRI Guidelines Applying the Guidelines Part 1 Defining Report Content, Quality, and Boundary Guidance for Defining Report Content Principles for Defining Report Content Principles for Defining Report Quality Guidance for Report Boundary Setting 16 17 22 26 Part 2 Standard Disclosures Strategy and Profile 1. Strategy and Analysis 2. Organizational Profile 3. Report Parameters 4. Governance, Commitments, and Engagement 5. Management Approach and Performance Indicators Economic Environmental Social: Labor Practices and Decent Work 40 29 29 30 30 31 33 34 36 ...
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...operate within a classification were appropriate. • Depository financial institutions—they attract savings from depositors and investors and provide loans to borrowers. Examples: commercial banks, building societies and credit unions. • Contractual savings institutions—there liabilities (sources of funds) are contracts that generate periodic cash flows, such as insurance contracts and superannuation savings. Their accumulated funds are used to purchase both real and financial assets—includes insurance offices and superannuation funds. • Finance companies—mainly provide loans to small business and retail customers. Also provide lease finance. No depositors; therefore, they borrow funds in the markets to finance their activities. • Investment...
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...in which owners manage their own business, do not need external reporting of the results of operations. However, external reports have become essential with the increase in the size and number of business enterprises, along with the increased amount of people investing capital resources in these businesses. The corporate form of business also increases the need for objective verification of data and creates a need for disclosure of more and better information to owners and potential investors. Furthermore, the increase in value, size and activity of capital exchange in security market also increases the opening of taking advantage in lax conditions and to profit by misrepresentation and manipulation. Hence, the main reason for establishing the securities legislation was because large security market requires operating procedures that would protect investors from fraud and guarantee an adequate supply of capital for economic growth. Background of the SEC The Securities and Exchange Commission (“SEC”) is one of several public and private sector rule-making organizations that have an effect on financial reporting for businesses. It plays a crucial role in the development and improvement of financial reporting theory and practice. Frequently the work, accomplishments and contributions of the SEC do not receive the attention given to other group, such as the Financial Accounting Standards Board, the Government Accounting Standards Board, or the American Institute...
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...Financial Crisis Advisory Group July 28, 2009 To the Members of the International Accounting Standards Board and the US Financial Accounting Standards Board: On behalf of the members of the Financial Crisis Advisory Group (FCAG), we are pleased to present our report to the Boards about the standard-setting implications of the global financial crisis. We believe that confidence in the transparency and integrity of financial reporting is critically important to global financial stability and sound economic growth. We hope that our conclusions and recommendations will be helpful to the Boards as they work together to simplify and improve accounting standards on financial instruments and other key areas highlighted by the crisis. The FCAG will be meeting in December to review the progress that has been made. In the meantime, we are available to assist the Boards in their efforts. Sincerely, Harvey J. Goldschmid Co-chair Hans Hoogervorst Co-chair cc: Gerrit Zalm, Chairman of the Board of Trustees, International Accounting Standards Committee Foundation John J. Brennan, Chairman of the Board of Trustees, Financial Accounting Foundation Report of the Financial Crisis Advisory Group – July 28, 2009 Table of Contents Page I. INTRODUCTION _________________________________________________________________________ 1 II. PRINCIPLE 1: Effective Financial Reporting____________________________________________________ 3 Intersection of Prudential Regulation...
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...Accounting Standards Building international opportunities for Australian business Corporate Law Economic Reform Program Proposals for Reform: Paper No. 1 © Commonwealth of Australia 1997 ISBN 0 642 26110 5 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction rights should be directed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601. The Government is seeking comments from interested parties on the detail of the proposals in this paper which should be forwarded to the following address: First Assistant Secretary Business Law Division The Treasury Parkes Place PARKES ACT 2600 Telephone: 02 6263 3960 Fax: 02 6263 2882 Email: clerp@treasury.gov.au Copies of this paper are available from the Australian Government Publishing Service and on the Treasury web site (http://www.treasury.gov.au). Enquiries concerning the paper can be made to: Ms Veronique Ingram Assistant Secretary The Treasury Telephone: 02 6263 3970 Printed by the Australian Government Publishing Service TABLE OF CONTENTS Page Abbreviations PART 1: PART 2: Reform Proposals Introduction 2.1 2.2 PART 3: Background Key economic principles v 1 9 9 10 11 11 12 13 13 14 16 17 19 19 19 20 22 23 The Case for Reform 3.1 3.2 Impetus...
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...Accounting Standards Building international opportunities for Australian business Corporate Law Economic Reform Program Proposals for Reform: Paper No. 1 © Commonwealth of Australia 1997 ISBN 0 642 26110 5 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction rights should be directed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601. The Government is seeking comments from interested parties on the detail of the proposals in this paper which should be forwarded to the following address:| First Assistant SecretaryBusiness Law DivisionThe TreasuryParkes PlacePARKES ACT 2600|Telephone:Fax:Email:|02 6263 396002 6263 2882clerp@treasury.gov.au| Copies of this paper are available from the Australian Government Publishing Service and on the Treasury web site (http://www.treasury.gov.au).Enquiries concerning the paper can be made to:Ms Veronique IngramAssistant SecretaryThe TreasuryTelephone: 02 6263 3970| Printed by the Australian Government Publishing Service Table of Contents Page Abbreviations v PART 1: Reform Proposals 1 PART 2: Introduction 9 2.1 Background 9 2.2 Key economic principles 10 PART 3: The Case for Reform 11 3.1 Impetus for reform 11 3.2 What the Government is seeking...
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...Mutual Funds and Other Investment Companies Why buy mutual fund: people are lazy if you are trading stocks you have to give basis data for transactions you make for takes but with a mutual fund they do it for you. Diversification ** an individual investor choosing a mutual fund should consider not only the fund’s stated investment policy and past performance, but also management fees and expenses.** 4.1 INVESTMENT COMPANIES Investment Companies do the following tasks: WHY MUTUAL FUNDS?? • Administration & record keeping (people don’t want to do it themselves) • Diversification & divisibility (diversified portfolio) • Professional management • Reduced transaction costs Investment Companies: Net Asset Value (the value of each share) What determines share price NAV!! • Net Asset Value ' Any fund totals up all the shares does the calculation and generates an NAV ' One time per day ' Used as a basis for valuation of investment company shares ' Selling new shares cash goes in ' Redeeming existing shares (liquidate stocks and send you cash back) cash goes out ' They can keep printing more shares Calculation: Market Value of Assets - Liabilities Shares Outstanding 4.2 TYPES OF INVESTMENT COMPANIES: Investment companies: either Units of trust or managed investment companies Unit Trusts: subset of investment company (15 stocks and...
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