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Commentary

#Linkfest: Direct Plans Win, Be-Sahara, ESOP Disclosures …

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Links for today:

Direct plans garner 56% of new inflows in Jan, says ET. Out of 60,000 cr., of fresh investments, nearly 33,000 cr. has come into direct plans. This should happen, as corporates shift their debt investments into direct plans. Why? Because debt plans are seeing about 0.2% to 0.5% better performance by direct plans, and on a corpus of Rs. 10 crore, that translates to Rs. 2 to 5 lakh per year, a very reasonable sum of money.

Update 19/2/2013:  Reader Neerav says  Wealth Forum post points out that ET has issued a corrigendum, saying that there was an error in their data, mixing up both direct and regular flows. However, I couldn’t find the admission on the ET site, so I’m keeping both the original link and this other post as is.

SEBI has attached assets of Subroto Roy and two Sahara Group companies that were supposed to refund more than 25,000 cr. to investors. After a long supreme court battle, when the SC allowed SEBI full reign to attach assets or bank accounts to recover the money, SEBI has acted and attached everything it knows, including properties, mutual fund holdings, bank accounts and equity holdings. This is a confident sign for governance – now they have to investigate properly and find if Sahara has been involved in fraud as well.

Zee has made a disclosure about what it’s ESOP trust will do – sell off the nearly 11,000 shares it holds. Remember that SEBI has barred ESOP trusts from buying from the market, and has asked for a disclosure of what they will do with existing holdings.

Kingfisher Airlines’ assets may only fetch Rs. 1,500 cr. out of the Rs. 7,500 cr. debt it owes. Oh, well.

Damodaran says $100 bills are hard to come by. A must read, HT @CupLord.