The PMS-AIF part of India's asset management industry has been growing rapidly and drawing top talents in recent times because of two main reasons: flexibility with choice of assets to create beta and more leeway with the commission structure to incentivise distributors. Sebi may now play spoiler, as it seeks to scrap upfront commissions to distributors and shift to a trail commission model in line with the mutual fund industry. Will it create a ripple in the rich men's world? Wait and watch!
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded 21 points higher at 7 am (IST), signalling a positive start for Dalal Street. Asian stocks edged up as investors prepared for a Fed rate cut. South Korea's KOSPI advanced 0.2%, Japan's Nikkei rose 0.7% and Australian stocks climbed 0.7%. US stocks ended mixed overnight: Dow finished with gains, but S&P500 and Nasdaq closed slightly below the break-even line.
Read More Oil prices extended overnight gains on Tuesday. Brent futures rose 30 cents to $64.01 a barrel while WTI crude rose 34 cents to $57.21.
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Time for Turnaround?... The selloff in the stock market might be in the final stages if the shrinking spread of yield on Nifty earnings over that of 10-year government securities is any clue. Analysts say the drop in this spread to 2 standard deviations below mean shows market declines could be limited from here on. In last 20 years, this spread traded below 2SD seven times and on all occasions, Nifty has risen at least 20% in the ensuing year.
Read More Zee suitors... A consortium led by US cable major Comcast and comprising Atairos, Blackstone and James Murdoch's Lupa Systems submitted a binding offer late Monday to buy out Subhash Chandra from Zee Entertainment. Sources close to Zee, however, said they had not received any bid till late Monday evening.
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Slowdown signs getting prominent... The rate at which bank nonperforming assets are growing has slowed, indicating an improvement in the asset-quality situation, but debt downgrades have outstripped upgrades for the first time in three years. A Prime Database analysis of credit rating actions in six months since January showed downgrades outpaced upgrades by two to one for the first time since 2016, reflecting a deeper slump in the economy.
Read More Crackdown... Sebi is planning to tighten rules for broker commissions on investment products for the rich as it aims to curb mis-selling and bring in more transparency. The proposal to clamp down on fees charged by PMS and AIFs follows complaints that asset managers and distributors are aggressively pushing these products to investors after incentives for selling mutual fund schemes were cut.
Read More Meanwhile... This year's end-of-season sales for offline retailers have been worse than last year and high discounts have failed to prop up sales. Now retailers are bracing for a longer sales season even as discounts have gone up to 50-70% at stores like Marks & Spencer, Puma and Lifestyle.
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