Some Indian financial intermediaries are looking to no less than the US President to ease recent regulatory pangs. The Foreign Account Tax Compliance Act (Fatca) created a headache for many local intermediaries, even as they rang in the New Year. The law requires intermediaries abroad to provide information on clients who might be subject to US tax laws or face penal provisions. With the passing of the deadline, December 31, and no clear word on the agreement, many are unsure how Fatca will be implemented. Rumours are that it would be signed before US President Barack Obama's visit this month.
Traders show aggression with defence stocks
Defence stocks are being touted as the "hot" stocks of 2015. With the government opening up the sector and increasing foreign direct investment ceiling from 26 per cent to 49 per cent (provided the company is owned and controlled by Indians), many stocks in the sector have already shown a sharp spike. sPipavav Defence, Walchand Industries, Solar Industries and Bharat Electronics are up between five and 40 per cent since the beginning of the year. Expect more action in these counters
Joydeep Ghosh
Two more MFs on the block
The market is abuzz with talk of two more mutual fund exits. One owned by a global financial services giant and the other a domestic entity, in the market since the initial years of the opening up of the sector. Neither has been able to raise enough assets to sustain their businesses. Analysts say while foreign entities might attract more buyers because of their relatively clean books and systems in line with global practices, domestic ones have a distribution advantage. The turnaround in the fortunes of the stock market is seeing exits from many fund houses. While the names of Deutsche and Goldman Sachs are floating for possible exits, the merger of UTI Mutual Fund is also being talked about.
Sneha Padiyath
