mutual fund units

It’s important to note that under the Income Tax Act, 1961, there is mention of only one type of mutual fund. i.e. “Equity Oriented Fund”. It implies that from Income Tax angle mutual fund schemes can be categorized into-(a) Equity oriented fund (Scheme) (b) Non Equity oriented fund (Scheme) Full Article

Regulation 37(1) of SEBI (Mutual Fund) Regulations, 1996 states that “a unit unless otherwise restricted or prohibited under the scheme, shall be freely transferable by act of parties or by operation of law.” The spirit and intention of this regulation is not to prohibit transferability of units as a general rule or practice. Full Article

After taxing investors for dividend stripping, the Income Tax (I-T) Department is gearing up to tax bonus stripping. Official sources say scrutiny of returns filed by companies, brokers and individuals active in the stock markets and in possession of shares revealed wide use of this mechanism to evade tax. Full Article

Investors will be able to transact in mutual funds units through the National Stock Exchange (NSE) from Monday. UTI Mutual Fund will be the first fund house to use the NSE’s mutual fund platform, which would enable exchange’s members to use its existing infrastructure for transaction in MF schemes. Full Article

All trading members of the Exchange who are registered with Association of Mutual Funds of India (AMFI) as Mutual Fund Advisors and who have signed up with the specific Asset Management Company (AMC) of a Mutual Fund are eligible to participate in the New MFSS. For this purpose, trading members shall have to register with NSEIL as Participants by submitting an Undertaking as per the format specified in Annexure 2. Full Article

banks have been advised that they need not obtain prior approval of the RBI for engaging in insurance agency business or referral arrangement without any risk participation, subject to the conditions stipulated in Annex 4 of the Master Circular. Banks have also been permitted, vide paragraph 17 of the above circular, to offer purely referral services on a non-risk participation basis to their customers, for financial products subject to certain conditions. Full Article

The Income Tax department is all set to move the Supreme Court for a final judgement on its tax claims of around Rs 2,000 crore (Rs 20 billion) in cases involving dividend stripping prior to 2002-03. The taxman had lost the case in the Bombay high court last year. Though the government in 2005 put [...] Full Article