NPS not popular in private sector

NPS not popular in private sector

Considering that National Pension Scheme (NPS) has not been a successful venture in the private sector, the Pension Fund Regulatory Development Authority (PFRDA) has introduced a registration process for pension fund managers (PFMs), increased the fees of PFMs from 0.0009 per cent to a fixed ceiling at 0.25 per cent along with other significant steps to ensure that pension sector in the private sector takes off, chairperson of the PFRDA said at an ASSOCHAM event held in New Delhi on Tuesday.

 “NPS which started off as a government pension scheme has not been popular in the private sector as there are certain changes that have to be brought about when extending a compulsory product on a voluntary basis,” said PFRDA chief Yogesh Agarwal while addressing a national conference on ‘Pension Funds: The Untapped Opportunities’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Fee hike for managers to add more NPS subscribers

Fee hike for managers to add more NPS subscribers

With hike in fees for pension managers and increase in number of distributors, the pension regulator is confident of finding more private enterprises subscribing to the New Pension Scheme (NPS).

Yogesh Agarwal, chairman of Pension Fund Regulatory Development Authority (PFRDA), said, “Something (NPS) that was meant for public sector was simply extended to private sector and that is the reason it failed to pick up. However, with increased fees to 0.25 per cent, it becomes lot more viable for fund managers.”

Pension fund managers’ (PFMs’) fees was increased to 0.25 per cent, from an earlier 0.0009 per cent beginning November.

New Pension System – Status as on 10th November 2012

The New Pension System (NPS) has been implemented for various sectors like Central Government, State Government, Private Sector and NPS-Life.  The status of NPS in these sectors as on 10th November, 2012 is as under:-

Sector	No. of Subscribers (Figures in lakhs)	Assets under Management (Rs. In crores)
Central Government	10.62	14,846
State Government	14.67	7,445
Private Sector	1.64	835
NPS-Life	13.05	344
Total	39.98	23,470

The number of subscribers is increasing every year in all the sectors.

Primary Issue : LIC HF

Issuer	LIC HOUSING FINANCE LIMITED
Instrument	Secured, Redeemable, Non-Convertible Debentures
Issue size	Rs. 200 crores Plus Greenshoe Option
Tenor	2 years
Coupon	9.37%
XIRR	9.48%
Rating	“AAA/Stable” by CRISIL & “AAA” by CARE
Put/Call Option	N.A.
Interest Payment	30-may-13 , 30-may-14,  30-nov-14
Issuance Format	The Bonds will be issued in the dematerialized format
Minimum Application size	5  Crs and Multiple of 1 Crs thenafter.
Face Value	Rs.10,00,000/-per Bond
Issue Price	Rs.10,00,000/-per Bond
Opening Date	27 November,2012
Closing Date	30th November, 2012
Pay-in Date	30th November, 2012

Improving Self Confidence

Henry Ward Beecher was a young boy in school, he learned a lesson in self confidence which he never forgot.

He was called upon to recite in front of the class. He had hardly begun when the teacher interrupted with an emphatic, “No!” He started over and again the teacher thundered, “No!” Humiliated, Henry sat down.

The next boy rose to recite and had just begun when the teacher shouted, “No!” This student, however, kept on with the recitation until he completed it. As he sat down, the teacher replied, “Very good!”

Henry was irritated. ”I recited just as he did,” he complained to the teacher.

But the instructor replied, “It is not enough to know your lesson, you must be sure. When you allowed me to stop you, it meant that you were uncertain. If the world says, ‘No!

The world will say, ‘No!’ in a thousand ways.

‘No! You can’t do that.’
‘No! You are wrong.’
‘No! You are too old.’
‘No! You are too young.’
‘No! You are too weak.’
‘No! It will never work.’
‘No! You don’t have the education.’
‘No! You don’t have the background.’
‘No! You don’t have the money.’
‘No! It can’t be done.’

And each ‘No!’ you hear has the potential to erode your confidence bit by bit until you quit all together.

 

Though the world says, ‘No!’ to you today, you should be determined to say, ‘Yes!’ and prove it! ”

 

Henry Ward Beecher, a prominent Congregationalist clergyman, social reformer, abolitionist and speaker in the mid to late 19^th century.

IRFC Tax-Free Bonds - Term Sheet

Kindly find the term sheet of IRFC Tax free,

Issuer	INDIAN RAILWAY FINANCE CORPORATION LTD.
Instrument	Tax Free, Secured, Redeemable, Non-Convertible Bonds in the nature of Debentures having tax benefits under section 10 (15) (iv) (h) of The Income Tax Act, 1961 (Series 2-A & 2-B) (collectively referred to as the “Bonds”)
Objects of the Issue	The Issue is for augmenting the medium to long-term rupee resources of IRFC for the purpose of carrying out its functions authorized under the object clause of the Memorandum of Association of IRFC. The funds raised by way of the issue will be utilized for various operations of IRFC.
Security	The Bonds shall be secured by way of first pari passu charge on the specific immovable property (ies) and/or book debts of the Issuer, as may be agreed between the Issuer and the Trustees, pursuant to the terms of the Debenture/ Bond Trust Deed and/or Deed of Hypothecation with a minimum security cover of one time of the aggregate face value amount of Bonds outstanding at all times. The Issuer undertakes that it shall obtain permission/ consent from the earlier creditor(s) to create pari passu charge and execute the necessary documents for creation of the charge, including the Debenture/ Bond Trust Deed, within time frame prescribed in the relevant regulations/ act/ rules etc and submit with the Stock Exchanges within five working days of execution of the same for uploading on its website. The creation of such security shall be sufficient compliance of the Issuer’s obligation to create security.
Issue Size	Rs. 500 crores
Rating	AAA
Face Value	Rs. 10,00,000 per Bond
Mode of Issue	Private Placement through book building route
Tenor	10 years	15 years
Redemption	At par at the end of 10 Years from the Deemed Date of Allotment	At par at the end of 15 Years from the Deemed Date of Allotment
Put / call option	None	None
Coupon rate	7.21%	7.38%
Interest Payment	Annually each year till maturity of Bonds
Form of issuance	Dematerialized
Listing	Listed on the Wholesale Debt Market segment (WDM) of the National Stock Exchange (NSE)
Interest on Application Money	Interest at the respective lowest yield (subject to deduction of income tax under the provisions of the Income Tax Act, 1961, or any other statutory modification or reenactment thereof, as applicable) will be paid to the applicants on the application money for the Bonds for the period starting from and including the date of realization of application money in Issuer’s Bank Account upto one day prior to the Deemed Date of Allotment.
Day Count Basis	Actual/ Actual. Interest shall be computed on an “actual/actual basis”. Where the interest period (start date to end date) includes February 29, interest shall be computed on 366 days-a-year basis.
Book Opening Date	November 22, 2012 – 11.00 a.m.
Book Opening Date	November 22, 2012 – 4.00 p.m.
Issue Opening Date / Issue Closing Date / Pay-in Date / Deemed Date of Allotment	Monday, November 26, 2012

Primary Issue : Alok Industries Ltd. ( 12.50% - Quarterly payment )

Kindly find the tentative term sheet of Alok Industries Ltd.

 

Issuer	Alok Industries Ltd.
Product Line	Textiles
Instrument	Secured, Redeemable, Non-Convertible Debentures
Issue Size	Rs. 50 - 100 crs
Security	Pari passu charge on fixed assets of the company
Tenor	7 years
Call option	at the end of 5 years
Indicative rate	12.50% p.a. payable quarterly
YTM/C	13.10%
Credit Rating	A by CARE
Financial Highlights ( Figures in Rs Crore)
Year ending 31st March 2012
Particulars		2010		2011		2012
Net Sales		4311.17		6388.44		8900.86
PBT		285.97		501.24		640.5
PAT		247.34		404.37		380.53
Share Capital		787.79		787.79		826.28
Reserves		1928.4		2309.79		2829.24
Debt Equity Ratio		2.28		2.15		2.68
DSCR		2.39		2.55		2.28
Current Ratio		1.83		1.4		1.35

 

Company Profile:

Established in 1986, Alok Industries Ltd. is amongst the fastest growing vertically integrated textiles solutions Provider in India. A diversified manufacturer of world-class home textiles, apparel fabrics, garments and polyester yarns, Alok has capacities of 82.50 mn meters of sheeting fabric and 6700 tons of terry towels for its home textiles business, 186.00 mn meters of apparel width woven fabrics, 18200 tons per annum of knitted fabrics and 22 million pieces per annum of garments. Alok has achieved complete integration. The company also has a strong presence in the polyester segment with a capacity of 1,14,000 tons per annum of polyester textured yarn supplemented by 3,00,000 tons per annum of POY. The company has a blue chip international customer base comprising of world renowned retailers, importers and brands.