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SEBI has told mutual funds to reduce the number of funds under management and stick to only one fund per category in an attempt to end the complexities of mutual fund investing.  As per industry tracker, there are 1600+ debt funds and a total of 2500+ fund schemes which is more than number of actively traded listed stocks on stock exchanges. This is confusing customers and making it impossible to gauge a fund's suitability. Most often the difference between funds are minimal to make any significant difference. The mutual fund industry actually trying to play on the psychology of investors with new scheme as investors wrongly believe that buying a unit at Rs 10 is beneficial compared to an existing fund whose net asset value could be higher. The regulator wants every fund to have one sch...

National Savings Certificate and Kisan Vikas Patra will now be issued in electronic mode (e-mode). Government has decided to discontinue the system of physical pre-printed paper certificates w.e.f 1-April-2016.  However, till the Core Banking System transits to that e-mode, banks and post offices may choose to issue a physical certificate recorded on a passbook, it added. NSC and KVP are popular small saving schemes, specifically designed for government employees, businessmen and other salaried classes who are Income Tax assesses. Investment up to Rs 1.50 lakh per annum qualifies for tax rebate under section 80C of Income Tax Act.

The government has reduced the rate of interest of small saving schemes from April 1 2016. The popular Public Provident Fund (PPF) will yield 8.1% from April 1compared with 8.7% at present. The Kisan Vikas Patra will fetch 7.8% against 8.7% now while five-year National Savings Certificate (NSC) will offer an annual return of 8.1% against 8.5%.   See below the revised rates for the schemes :   Rate of Interest on Small Savings   Current rate Rates from April 1 PPF 8.7 8.1 Kisan Vikas Patra 8.7 7.8 Sukanya Samriddhi 9.2 8.6 Postal Savings Deposit 4 4 5 Year NSC 8.5 8.1 5 year Senior Citizen 9.3 8.6 5 year Monthly Income 8.4 7.8             Postal Deposits - 1 year 8.4 7.1 Postal Deposits - 2 year 8.4 7.2 Postal Deposits - 3 year 8.4 7.4 Postal De...

July 28. SEBI has cancelled Sahara's Mutual fund licence, saying it's not a "fit and proper person" to carry out the business of mutual fund. Sebi on Tuesday said Sahara's fund management licence would stand cancelled after 60 days from the date of the order. It has directed Sahara AMC: not to take any new subscription from the investors including existing investors in systematic investment plans and not to levy any penalties on the investors for not depositing the installments. to transfer its activities to a new sponsor and a Sebi-approved AMC at the earliest. In the event of failure of Sahara MF to complete the process of transition within a period of 5 months from the date of this order, then Sahara MF should compulsorily redeem the units allotted to its investors and credit t...

CBDT notifies Cost Inflation Index for Financial Year 2015-16 (AY 2016-2017)  -  1081 For details on Cost inflation Index for other years (1981 to 2015) , please click on this link GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES Notification No. 60/2015 New Delhi, Dated- 24th   July, 2015 S.O.  (E) –  In exercise of the powers conferred by clause(v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, published in the Gazette of India, Extraordinary vide number S.O. 709(E), dated the 20th  August 1998 namely : – 2. In the said ...

The Reserve Bank of India has again extended the date for the public to exchange their pre-2005 banknotes till December 31 this year. This means, all such notes will remain legal till that time. The central bank has urged citizens to deposit the old designed currency notes in their bank accounts or exchange them at a bank branch convenient to them. The move, introduced last December, is actually aimed at checking counterfeit notes in the system as those old soiled notes were not equipped with all modern security features. RBI stated that the notes could be exchanged for their full value. It will continue to monitor and review the process so that the public is not inconvenienced in any manner. See - how to check if the note is pre-2005