FYI

[Saurabh Vashistha]

Dear All,

 

 Insurance companies to again cut costs

 After a tough quarter, insurance companies are going through a second round of cost rationalization. A number of private sector insurers are planning to cut   

 costs, as much as 20 per cent, in the next few months.  The first move being planned is closure of branches in not-so-productive areas. Life insurance officials

 said many companies were looking at reducing the number of branches by 5-10 per cent because of high maintenance costs.

 

Source: Business Standard Dated: 29th January, 2011

 

Life insurers' new biz premium dips 20%

The new business premium income of the life insurance industry fell by 20 per cent in December compared to the year before. According to data collated by insurers, the industry collected Rs 9,709 crore by selling new policies in December, as against Rs 12,201 crore last year. However, the new business income rose from November, when the industry collected Rs 7,282 crore.

 

Source: Business Standard Dated: 28th January, 2011

 

Mutual funds don't accept third-party cheques

According to AMFI guidelines, investments made through third-party cheques are not to be processed by mutual funds. A cheque issued by and signed by any other person other than the first holder of the investment is a third-party cheque.

 

Source: Economic Times Dated: 19th January, 2011

 

MFs pushing ELSS ahead of new tax regime

Mutual funds are doling out generous commissions to distributors to push their tax-saving equity product to investors, who are scurrying to save taxes towards the end of the current financial year. The possibility of this product , called equity-linked savings scheme (ELSS), losing its status as a tax saver once a new tax regime comes to effect next year has fund houses going all out to promote it, even at the cost of taking a hit on their financials.

 

Source: Economic Times Dated: 3rd February, 2011

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Do revert back for any further clarifications.

Thanks and Regards,
Saurabh Vashistha
Assistant Manager E - Broking
Head Product Development
Angel Broking
Call: 022 -39527050 Extn: 5550
 Cell: 9833399765