The acquisition of Sharekhan by BNP Paribas has left some wondering if the latter's joint venture (JV) with Geojit will end. BNP had picked up a minority stake in Geojit around the time of the last bull run. Today the stake remains at around 34 per cent. The acquisition of a major retail brokerage separate from their JV operations has naturally led to speculation. So, will the two part ways and chart their own course? Both Geojit and BNP Paribas executives declined comment. The Sharekhan stock is up 8.19 per cent since Thursday when the deal was announced.
Not unique
The recent announcement by a mutual fund that all its employees will be required to invest in only its own products has become a topic of conversation in the Street. However, this is not without precedent in corporate India. Many senior executives with large corporations are also required to buy generous quantities of their own stock, to 'reflect confidence in the company' according to one senior person in the know. The purchases are said to be voluntary, but friendly suggestions to pick up company stock are rarely ignored. Especially if it comes from the top.
Curbing mis-selling in sector funds
The Securities and Exchange Board of India has repeatedly expressed concern about mis-selling in mutual funds. Recently, a distributor proposed in a meeting between fund houses and distributors that the minimum investment limit in sector funds can be increased from Rs 5,000 to Rs 1 lakh. "This takes out matters from distributors' hands. Also, it will serve as an entry barrier and will automatically take out the number of investors in sector funds which are perceived as the riskiest," says a fund manager. According to industry sources, a couple of fund houses have already increased the investment limit in their sector funds.
