SEBI To Allow Mutual Funds To Invest In REITs, InvITs

New Delhi: Mutual funds will be allowed to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), the market regulator said on Saturday, a move aimed at boosting investor interest in such alternative investments.

The Securities and Exchange Board of India (SEBI) had been working on easing regulations on REITs and InvITs to woo more investors to India's capital-starved property sector.
A fund would not be able to invest more than 5 percent of its net asset value in units of a single issuer of REIT or InvITs, the regulator said in a statement.

The maximum allowed investment in the alternative instruments by a single fund would be capped at 10 percent, it added.

REITs or InvITs are listed entities that invest in rent-yielding assets and distribute most of their income to shareholders as dividends.
The decisions were taken during SEBI's board meeting in Jaipur.

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From Bank FDs To Cash Deposits, How Income Tax Department Is Tracking Your Transactions

From bank deposits to credit card bill payments to property transactions, financial institutions and other entities have to report transactions above a certain threshold to the income tax department. A January 17 notification from the tax department lists the financial transactions that have to be reported. Income tax authorities have set up an e-platform through which banks and other institutions can report the transactions to them. 

Here are 10 key things to know:

1) Banks have to report cash deposits aggregating to Rs 10 lakh or more in a financial year, in one or more accounts (other than a current account and fixed deposit) of a person. 

2) Fixed deposits other than renewals of a person aggregating to Rs 10 lakh or more of a person in a financial year have to be also reported.

3) Cash payments of Rs 1 lakh or more for credit card bills have to be reported. Also to be reported is payment of Rs 10 lakh or more made by any mode (including cheque or wire transfer) to settle credit card dues in a financial year.

4) The tax department also reiterated its November 2016 instruction asking banks to report all cash deposits of Rs 2.5 lakh or more made in one or more accounts of a person during November 9 to December 30, 2016.

5) For current accounts, banks have to report deposits of Rs 12.5 lakh or more during the period. After demonetisation of old 500 and 1,000 rupee notes, the government had allowed the junked currency to be deposited in bank accounts during a 50-day window ending December 30, 2016.

6) Cash deposits during April 1, 2016, to November 9, 2016 in any account that are reportable should also be intimated to the tax authorities by January 31, 2017, the notification said.

7) Companies or institutions have to report receipt from any person an amount aggregating to Rs 10 lakh or more in a financial year for acquiring bonds or debentures.

8) A similar limit is also set for reporting purchase of mutual funds units or buyback of shares.

9) Purchase of foreign exchange including travellers cheque and a forex card aggregating to Rs 10 lakh will have to be reported to tax authorities.

10) Property registrars will have to report to tax authorities purchase or sale by any person of immovable property for an amount of Rs 30 lakh or more.

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Asian Stocks Slip, Dollar Flat As Caution Reigns Before Trump Inauguration

Singapore: Caution was the name of the game in financial markets on Friday ahead of U.S. President-elect Donald Trump's inauguration later in the day, with Asian stocks and the dollar pulling back and U.S. Treasury yields hovering near their highest close this year.
Investors were also awaiting fourth-quarter and full-year GDP data from China at 0200 GMT, for clues on how much momentum the world's second-largest economy is carrying into 2017.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.1 percent, and looked set to end the week flat.

Japan's Nikkei rose 0.1 percent, on track for a near 1 percent weekly loss.
Australian stocks retreated 0.6 percent, heading for a 1.1 percent decline for the week. South Korean shares slid 0.3 percent, poised to end the week 0.5 percent lower.
Economists polled by Reuters expect China to report its economy grew by a steady 6.7 percent in the fourth quarter from a year earlier, boosted by higher government spending and record bank lending.
While the stable headline growth may soothe investors, concerns are growing about whether Beijing can contain the financial risks from an explosive growth in debt fuelled by years of government stimulus.
A cooling housing market and painful structural reforms, as well as pressure on exports if Trump fulfils his protectionist promises, are also key risks for China in 2017.
"Today's China December quarter GDP and other monthly data are unlikely to deviate significantly from expectations," Ric Spooner, chief market analyst at CMC Markets in Sydney, wrote in a note.
"Market reaction is also likely to be muted with traders in risk averse mode prior to the Trump (inauguration) speech."

Markets will also be watching Federal Reserve Chair Janet Yellen's speech in California, starting at 0100 GMT, for new clues on the likely pace and timing of Fed rate hikes this year.
The 10-year U.S. Treasury yield was unchanged at 2.472, after spiking to as high as 2.496 on Thursday, amid wariness about whether Trump will deliver on his pro-business promises, including tax cuts, fiscal stimulus and looser regulation kept investors on the sidelines.
The dollar was flat after surrendering most of the gains it made on Thursday on upbeat data pointing to the economy's brightening prospects.
U.S. homebuilding rebounded sharply in December amid stronger demand for rental housing, and the number of Americans filing for unemployment benefits fell to close to the 43-year low touched in mid-November.
The dollar climbed 0.2 percent to 115.02 yen. On Thursday, it surged as much as 0.8 percent before closing less than 0.2 percent higher at 114.82 yen.

The dollar index, which tracks the greenback against a basket of six major global peers, was little changed at 101.18 on Friday after paring a 0.8 percent gain to close up 0.2 percent.
U.S. stocks were also restrained, with the major indexes posting losses of as much as 0.4 percent, and the Dow Jones Industrial Average down for its fourth straight session.
"There's been a lot of positive news priced into the market so it's taking a break on the equities side," said Wade Balliet, chief investment strategist of the Bank of the West in Denver.

Investors are "getting nervous trying to piece together what the policies will be," he said.
The euro erased losses made after European Central Bank chief Mario Draghi played down a recent rise in euro zone inflation, as investors parsed his statement and noted he had announced no changes to policy.

s 0.4 percent on Thursday, before retracing its steps to close 0.3 percent higher.

In commodities, oil rose after the International Energy Agency said oil markets had been tightening even more as cuts agreed by producers took effect. Still, gains were tempered by concerns about swelling U.S. inventories.
U.S. crude added 0.2 percent to $51.52 per barrel, pulling further away from Wednesday's one-week low.
Spot gold was steady at $1,204.32 an ounce, retaining its slight gains from Thursday.

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Netflix Adds A Third More Subscribers Than Expected; Shares Jump 8%

 

Streaming video pioneer Netflix Inc added over a third more subscribers than expected in the last quarter of 2016, a sign of success for its ambitious global expansion that sent its shares up 8 percent in extended trading.
Netflix signed up 7.1 million new subscribers globally, far more than the 5.2 million analysts had expected, according to research firm FactSet, beating targets at home and abroad even as it raised prices.
Original shows like "Marvel's Luke Cage" and British drama "The Crown" performed strongly around the world, Netflix said, noting that competitors were adapting to compete.
Amazon.com Inc recently expanded its Amazon Prime Video service globally, and Britain's BBC announced plans to release entire series at once to allow the "binge watching" popularized by Netflix.
"It's becoming an internet TV world, which presents both challenges and opportunities for Netflix as we strive to earn screen time," the company said in its quarterly letter to shareholders.
Netflix, in its earnings report, said it added 5.1 million subscribers outside the United States and 1.9 million in its home market in the quarter ended Dec. 31.
Analysts had forecast 3.73 million non-U.S. additions and 1.44 million at home.
"The future battleground at home is now in keeping hold of customers as much as it is in trying to acquire new ones," said Neil Saunders, head of retail analyst firm Conlumino.
"In our view, the fact that consumers have readily absorbed the price increase, and that Netflix has continued to advance its subscriber numbers in spite of it, indicates the company is now firmly in pole position in the streaming arena."
Netflix said it planned to release more than 1,000 hours of original programming this year, up from 600 hours last year. It recently signed a deal with comedian Jerry Seinfeld to stream his show "Comedians in Cars Getting Coffee" as well as two new stand-up specials and other shows he will develop.
The Los Gatos, California-based company said revenue rose 35.9 percent to $2.48 billion in the December quarter. Analysts on average had expected $2.47 billion, according to Thomson Reuters I/B/E/S.
The company said it expected to add 1.50 million subscribers in the United States in the current quarter, fewer than the FactSet estimate of 1.79 million.
In international markets, Netflix said it expected to add 3.70 million subscribers, above the average estimate of 3.05 million.
Netflix projected negative free cash flow of about $2 billion in 2017, up from negative $1.7 billion in 2016.
Up to Wednesday's close of $133.26, Netflix's stock had risen 33.5 percent since it reported third-quarter results in October.
Netflix rose as much as 8.2 percent in after-hours trading, adding nearly $5 billion to the company's stock market value.

Gold Under Pressure On Yellen's Support For Rate Hikes

Gold prices on Thursday held on to their losses from the previous session, when they fell 1 percent on a strong dollar, after Federal Reserve Chair Janet Yellen advocated lifting U.S. interest rates gradually.

FUNDAMENTALS
-Spot gold was largely flat at $1,203 per ounce by 0100 GMT. The bullion hit an eight-week high of $1,218.64 on Tuesday, but fell 1 percent in the previous session as dollar strengthened.

-U.S. gold futures were down 0.7 percent at $1,203.50 per ounce.

-With the U.S. economy close to full employment and inflation headed toward the Federal Reserve's 2 percent goal, it "makes sense" for the U.S. central bank to gradually lift interest rates, Fed Chair Janet Yellen said on Wednesday.

-The U.S. central bank should be able to raise rates "in a gradual and patient manner," Dallas Fed President Robert Kaplan said on Wednesday.

-U.S. consumer prices increased in December as households paid more for gasoline and rental accommodation, leading to the largest year-on-year increase in 2-1/2 years and signaling that inflation pressures could be building.

-With euro zone growth and inflation slowly picking up pace, the European Central Bank is set to argue on Thursday that its extra-easy policy stance is still needed to keep the recovery on course.

-China's economy likely grew by a steady 6.7 percent in the fourth quarter, the same pace as in the previous three quarters, supported by higher government spending and record bank lending that has stoked concerns about debt risks, according to a Reuters poll of 62 economists.

-Japan's government could debate after April revising its target of eliminating the primary budget deficit by 2021, two government sources said, as infrastructure spending and a delay in the sales tax hike make wiping out the deficit unlikely.

-The Philippines has cancelled the environmental permits of six more companies, including four miners, Environment and Natural Resources Secretary Regina Lopez said on Wednesday.

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Industrial Revolution Can Help Indian Start-Ups Provide Quick Solutions, Says Government

Davos: Industrial revolution can "give us answers" and can help start-ups in India to provide quick solutions, Union Minister Nirmala Sitharaman said on Tuesday. 

Speaking at the World Economic Forum (WEF) annual meet here, she said, "I don't think we should worry about it (industrial revolution)."

She was participating in a session on 'Harnessing Regional Cooperation in South Asia' where Sri Lankan Prime Minister Ranil Wickremesinghe and Bangladesh Prime Minister Sheikh Hasina were also present. 

The Commerce and Industry Minister emphasised that industrial revolution "can give us answers", adding that countries like India cannot stay away from robotics.

According to her, industrial revolution can help start-ups in India to be able to give quick solutions.

"We have to be careful how we play it (industrial revolution) up in our countries," she added.

Talking about South Asia region, she said it can be the engine for growth in the world.

Old taste, crispy returns: Your child powered this multibagger; you missed it.

NEW DELHI: Dad, bring me a packet of CRAX when you come home. Sounds familiar?

It is possible that kids like your children have helped DFM FoodsBSE 2.34 %, which markets corn rings and wheat puffs under the brand names CRAX and NATKHAT, to script a strong growth story over the past five years.

But it is also possible that you did not know that DFM Foods is one of the luckiest stocks that have given multibagger returns to investors over the past six years.

And this has helped the stock clock a over 1,500 per cent return during this period. The stock has risen from Rs 124 on January 17, 2011 to Rs 1,957 on January 16, 2017.

An investment of Rs 10,000 made in the stock in January 2011 would have become Rs 1,57,823 today.

The company has been posting consistent rise in top line and bottom line figures for over a dozen quarters so far. During the past five years, consolidated profit after tax of the company grew over 25 per cent annually (CAGR) till March 31, 2016. Net profit grew from Rs 8.32 crore in FY11 to Rs 25.04 crore in 2015-16. Top line climbed from Rs 119.84 crore to Rs 388.95 crore in the same period.

According to an annual report of DFM Foods, the snack food industry consists of two principal segments – the traditional ethnic snacks which have been around for generations and the “modern” snacks, which have emerged over the last couple of decades.

The traditional ethnic snacks segment consists largely of the unorganised sector along with a few organised players. Of late, there has been a shift in this market from the unorganised to the organised sector.

The modern snacks segment consists largely of organised players, who employ automated production systems, mass marketing and organised sales and distribution systems across geographies. Products manufactured in this segment have been accepted well by the market, resulting in rapid growth.

Opportunities & threats
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Continuous growth in the economy, increasing disposable income and rapid urbanisation offer immense opportunity for the healthy growth in the business. However, some of the threats faced by the business include uncertain economic conditions and uncertainty over raw material price s.

Valuations
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The stock today trades at a price-to-earnings ratio of 77.12 against its long-term average of 40.35. The debt-to-equity ratio of the company was at 0.97 as on March 31, 2016. Return on capital employed (RoCE) advanced from 29.99 per cent in FY12 to 35.86 per cent in FY16, whereas return on net worth increased from 39.21 per cent to 45.29 per cent.

The stock hit its all-time high level of Rs 2,433 on June 17, 2016 and an all-time low of Rs 2 on May 13, 1999.