,~~~~~~~~.~.~~.~.~~.~ ~.~ ij 8 i • i • i • EMPLOYEES' PROVIDENT FUND ORGANISATION NEW DELHI i • i • On ~ ~ I ~ I j i A i i A I. i A A i i i VENUE: i . Conference Hall, • 3rd, floor, EPFO( Head Office), R Bhavishya Nidhi Bhawan, i 14, Bhikaiji Cama Place, ~ NEW DELHI - 110066. ~ i • i • i • i • i • i • i • 1220 d M fh eeting 0 te i • i • FINANCE INVESTMENT AND AUDIT COMMIITEE i • i • [A SUB- COMMITTEE OF THE CENTRAL BOARD, EMPLOYEES' PROVIDENT FUND) i • 09.12.2015 at 2:30 P.M. ~ • i • i • i • i • I' i I • . -""' I
Transcript
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EMPLOYEES' PROVIDENT FUND ORGANISATION
NEW DELHI
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VENUE: i. Conference Hall, •3rd, floor, EPFO( Head Office), R
Bhavishya Nidhi Bhawan, i14, Bhikaiji Cama Place, ~
NEW DELHI - 110066. ~
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1220d M f heeting 0 t e
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FINANCE INVESTMENT AND AUDITCOMMIITEE
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[A SUB- COMMITTEE OF THE CENTRAL BOARD,
EMPLOYEES' PROVIDENT FUND)
i• 09.12.2015 at 2:30 P.M.~•i•i•i•i•
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EMPLOYEES' PROVIDENT FUND ORGANISATION
AGENDA BOOK
122"d Meeting of the Finance Investment and Audit Committee,
Central Board, EPF.
Date: 9.12.2015 Time: 02:30 P.M.INDEX OF ITEMS
ItemNo. Agenda Page No.
t. Confirmation of the Minutes of 121st Meeting of theFinance Investment & Audit Committee (FIAC ) held on 1-"1-16.10.2015
2. Action taken report on the recommendation of the 121st <},-- gMeeting of the Finance Investment & Audit Committee(FIAC) held on 16.10.2015
.._.3. Amendment in terms of Agreement of Portfolio
'o-~?-Management Service Agreement entered with PortfolloManagers.
4. Accounting policy and method of Accounting for equity & '?,~-~,.,related Investment
5. CBlO borrowing transactions by the Portfolio Managers 4~-tr1during the period 19.09.2015 to 20.11.2015
Any other item (s) with the permission of the Chair•..... _.
122nd Meeting of FIAC 9.12.2015
Item No.1: Confirmation of the Minutes of 121st Meeting ofthe Finance Investment and Audit Committee heldon 16.10.2015 at EPFO,Headquarter, New Delhi.
Minutes of 121st Finance Investment and Audit Committee
(FIAC) meeting held on 16.10.2015 was circulated vide letter No.
Invest.1/(121st Mtg.)FIAC/2015/14689 dated,26.10.2015. Copy of the
minutes is enclosedas Annexure -'A' of this item.
Minutes maybe taken as confirmed.
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Minutes of the 121st Meeting of Finance Investment & Audit Committee (FIAC)
held on 16-10-2015
1. The 12Vt Meeting of Finance Investment & Audit Committee was held on 16-10-2015
from 3.00 P.M. onwards in the Conference Hall, 3rd Floor" EPFO, 'Head Office,
New Delhi.
2. The following members were present In the meeting.
(I) Shri K.K. Jalan Chairman, FIAC, CBT, EPF and Central Provident Fund
Commissioner ,
(ii) Shri Heera Lal Samariya .Addltional Secretary (L&E), Ministry of Labour &
Employment
(in) Ms. Meenakshi Gupta Joint Secretary & Financial Advisor, Ministry of Labour &
The proposal as contained in the agenda was taken note of by the Committee.
The same item shall be placed in the next meeting of Central Board of Trustees'.
. [tern tJo. 4: Performance Evaluation of Portfolio Managers for the period
01.04.2015 to 30.06.2015.
FIACnoted the performance of Portfolio Managers for the period 01.04.2015 to
30.06.2015. FA &. CAO darifled that said period pertained to earlier agreement,
term of which ended on 30.06.2015 and accordingly, It would not be possible to
take any action.
FIACfurther observed that the underperformance of all Portfolio Managers may
be tracked regularly and it was decided that notice .may be served to those
portfolio managers who underperform for two quarters continuously.
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Item No.5: Relaxation in investment guidelines for Private Scheduled Commercial
Banks (SeBs)
FA&. CAOintroduced the Item to the Committee. JS & FAobserved that such
Important agenda should be self sufficient & shall contain all the details. CPFC
Intervened to say that it is true that agenda item should have been more,,detailed but it is Important to take It up. The Committee, then, deliberated upon
,the issue and decided that It will be proper to go for consideration of CBT.
The Proposal as contained In Para 6 which Is as below:
Para 6: With respect to (a):
-oJ For this partlcularjlrrancial year, the-Investment in SDts-may be permittedbeyond the maximum percentage prescribed In the Pattern of Investment.
It is informed that an elaborate Item to this effect was-brought befor.e theCI3Tin its 204th meeting held on 2ff1' August, 2014. The issue was also properlyexamined by FIAC in its 114h meeting held on 25th August, 2014. In the saidmeeting it was decided that a proposal should be made to DFS,MoF Gol to allowinvestment In G.Sec/SDLupto 100". A request to this effect has already beenmade to DFS.It is likely that it will agree to ~igher percentage of investments inG.Sec./SDLfor this financial year. However, findl communication to this effect isyet to be received. In this Situation, it Is brought to the notice of the Board thathigher allocation to G.Sec/SDL is likely to made by EPFOin this financial yearparticularly If the rate of AAA corporate credit of PSUsremain below SDL.
was taken note by the Committee.
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The Proposal as contained In Para 7 which is as below:
Para 7: With respect to(b):
(b) The guidelines for Investment In the corporate credits of private sectorshould be relaxed in order to Include more corporate credits in the basketof Investments eligiblefor EPFO;
It Is informed that an elaborate item to this effect was brought before theCBT in its ~OSh Meeting held ·on 19th December. 2014 after obtainingrecommendation of FIACIn Its 11Z" Meeting held on 28th April, 2014 to allowinvestment in Private Corporate Credits having minimum dual AA+ rating. Thisparticular Item has been referred to the Expert Committee headed by sh. ArunKaul which Is yet to submit its final report. However. the issue has beenelaborately deliberated' in the sold Committee regarding investment in AA+Private Scheduled Commercial Banks that has suggested that the same may beallowed as the Banks in India are meticulously regulated by RBIand therefore therisk associated with Banks In Indio Is much lower as compared to oily otherIndu!~ry ~~rticC1!._~_C£ordi".g-'Y'_I!!,,-d!-'!J!.I!II'!!-,el!~'!.21 tlJe_!aici~~~pe!!_~~rn!rii~eeafter which on agenda relating to eligibility for Investment In Private CorporateCredits shall be brought before the FIACand CB~ It is proposed that investmentin bonds and Term deposit of dual AA+ Private Scheduled Commercial Bonks withthe following conditions (w.r.t. bonds only) may be allowed:
SI. No. Guidelines Private Scheduled Commercial Banks ratedAA+ by atleast two rating agencies .
Tenure 10t.
Limits as " 20ii. oLnetworth
..was decided to recommend for pladng the same before the Central Board.
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Item No.6: Extension of tenure of Custodian of EPFOSecurities MIs. Standard
Chartered Bank (Sea) upto 31/03/2016 after their performanceevaluation for the period 01.04.2014 to 30.06.2015.
FIAC noted the performance of SCB (Custodian) for period 01-04-2014 to
3~06-2015, and extended its term up to 31.Q3.2016 as per the term of existing·
agreements.
FIAC enquired about the terms of all external agencies including ECA
(M/s.Chandoybhoy & Jassobhoy) and thereafter observed that process of
appointment of External Concurrent Auditor may be initiated at the earliest so
that new ECAis appointed well In time.
The meeting ended with a vote of thanks to the chair.
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•IIIII,
Annexure-I
tI
I Shri Sudhir Shyam Representative, Director , Department of FinancialServices, Ministry of Finance, Govt. of India,representative Joint Secretary, MOF& GOI.
II Shri Abhay Ranjan RPFC·I(IMC)
Iii Shri Vishal Agarwal RPFC·II(IMC)
Iv ;Shri Ajay Kumar RPFC-II(lMC)
v Shri Kumar Punit APFC-. (Investment)
122nd Meeting of FIAC 9.12.2015
Item No 2: Action Taken Statement on the minutes of 121st meeting of the FinanceInvestment and Audit Committee (FIAC) held on 16.10.2015.
Sr
No.Decisions/Directions of FIAC Action Taken
Extension of tenure of Custodia.n of EPFO As per the decision/approval ofSecurities M/s. Standard Chartered Bank FIAC agenda item was placed in(SeB) upto 31.03.2016 after their 209th Meeting of Central Board,performance evaluation for the period EPFOheld on 24.11.2015.01.04.2014 to 30.06.2015.
, Minutes of the 209th meeting ofFIAC noted the performance of SCB(Custodian) Central Board held on 24.11.2015for period 01.04.2014 to 30.06.2015, and are awaited.extended its term uQ to 31.03.2016 as per the
CBLOborrowing transactions by thePortfolio Managers till 18.09.2015.
1.The proposal as contained in the agenda wastaken note of by the Committee. The same itemshall be placed in the next meeting of CentralBoardof Trustees.
IMC Wing (Item no. 3 of 121st FIAC)
Performance Evaluation of PortfolioManagers for the period 01.04.2015 to30.06.2015
2.The proposal as contained in the agenda wasapproved by the-CorTllTiittee~ .. - ...
IMCWing (Item no. 4of 121st FIAC)
Relaxation in investment guidelines forPrivate· Scheduled Commercial Banks(SeBs).
3. The proposalswas considered and it was decidedto recommend for placing the same before theBoard. .
IMC Wing (Item no. 5 of J2Jst FIAC)
4.
As decided, the proposal wasplaced before the Board in its209th Meeting held on24.11.2015.
As decided, the item was placedbefore Board in its 209th Meeting(agenda no. 10) held on24.11.2015.
(Action Complete)
The item was for information ofthe Committee. Accordingly, nofurther action was required.
fACtion Ccimplete)
(Action Complete)
FIAC enquired about the terms of all external Action to appoint Custodian andagencies including ECA (MIs ECAis being initiates separately.Chandoybhoy & Jassobhoy) and thereafterobserved that processof appointment of ExternalConcurrentAuditor may be initiated at the earliestso that new ECAis appointed well in time.
term of existing agreements.
The proposal as contained in the agenda wasapproved by the Committee.
Investment Wing (Item no. 6of 121st FIAC)
122"dMeeting of FIAC 09.12.2015
Item No 3: Amendment in terms. of Agreement of Portfolio Management ServiceAgreement entered with Portfolio Managers.
1. During the performance evaluation meeting held on 7th November 2015, the PortfolioManagersraised the Issue with regard to the dause VII of Section 11 of the PortfolioManagementService Agreement entered between EPFO.They submitted that the saidprovisionof agreement Is restricting the fund managersto Invest in instrumentswhere the
. counter party Is within the definition of sponsors/assodatesas mentioned in the PMSAgreement. Portfolio managers have requested to revisit the said provision of theagreementIn the interest of Trusts. Copyof request is placedasAnnexure'A'.
2. The relevant portion of Section 11 of current PMSAgreement and the agreementduringthe previoustenure i.e. 2011-2015is placedin the table as below:
PMSAgreement 2015-18 PMSAgreement 2011-15Clause (vii) the Portfolio Manager Clause(viii) the Portfolio Managershall not giveshall not utilise the services of the any undueor unfair advantageto any associatessponsor or any of its associatesor or deal with any of its associatesIn any mannerIts associatebrokers, employees·or detrimental to interest of the Trust. Thetheir relatives (or the servicesof the PortfolioManagershall not utilise the servicesofsponsor of any other Portfolio the sponsor or any of Its assodates or ItsManagerappointed by the EPFO,or Associatebrokers, personnelor their relativesor-any··-of-theirassodatesor--its- the-services of -any other-portfolio -managerassodate brokers, employees or appointed by the ·Trust, for the purposeof anytheir relatives), for the purpose of Securities transaction and distribution and saleany securities transaction, of Securities. However, the services ofdistribUtion,and sale of securities in Assodates/ Sponsors may be utilized to thesecondarymarket. extent permissible in the guidelines issued by
the Trust. Notwithstanding anything hereinstated,in any event, if the Portfolio Managerhas to invest in any issue managed by ItsAssodate, it will take prior written approval ofthe Trust, For the purposeof this sub - section,Associate(s)includes(any companyin which theFund Managerowns more than 26 per cent ofthe share capital or any company which ownsmore than 26 percent of the sharecapital of theFundManag~r)."
3. The Portfolio Managers have informed that as per the combined list ofsponsors/assocates, there are more than 400 entities with which the fund managersmight not be able to deal with under the saiddause of the agreement.The detailed list isendosed as Annexure '6'. Some of these are the active partidpants in the secondarymarketand contribute a major part of the daily market volumes.
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4. The relevant portion of the clause (vii) of the present agreement is restricting PortfolioManagers to deal with large number of counter parties while carrying out secondarymarket transactions.
5. Further, as most of the transactions in secondarymarket in Government Securities/StateDevelopment Loan (SOL) take place in computerized environment of matching bids andoffers, counterparty name is disclosed only at the time of closing the deal. This wouldmake it difficult to handle such long list of excluded counter party/entities operationallywhile doing any secondary market transactions.
6. It may also be pertinent to note that going forward Special SDLsmight be an attractiveinvestment avenue for EPFO,which are first allocated to PSUBanksand thereafter wouldbe availablein the secondarymarket.
7. In view of the fact that the PMS Agreement with the Portfolio Managers during theprevious tenure i.e. 2011-2015 had worked without any problem and no instance of anydeviation was reported concerning this provlslon of the agreement. Accordingly, it isproposedthat the relevant portion of the present terms under clauseVII of Section 11 i.e.RESTRICITONS& PENALTY.of the Portfolio Management Service Agreement may beamended. The changes are highlighted as under:
"The Portfolio Mat1il!/er shall not give any undue or unfair advantage to anVassodates or deal with -any of its associates in anY manner detrimental tQinterest of the Trust. The Portfolio Managershall not utilise the servicesof the sponsoror any of its associatesor its Associatebrokers, personnel or their relatives or the servicesof any other portfolio manager appointed by the Trust, for the purpose of any Securitiestransaction and distribution and sale of Securities in secondary market. However, theservices of AssgcIatesl Sponsors maY be utilized to the extent oermissible jn -. tlze gujdeUnes issued by the Trust. Notwithstanding anrtbing herein stated, inanY event, if the Portfolio Manager has to invest in any issue managed by itsASSDCjate,it will take prior written approval of the Trust. For the DUCJ10SBofthis sub - section, Assoc;ate{s) indudes (any comOanY in which the FundManager owns more than 26 per cent of the share ca.pjta/ or any companywhiclz owns more than 26percent of the share ca.pital of the Fund ManagerJ.
8. It is highlighted that the PMSAgreement was approved by the FlAC in its 119th .Meetingheld on 26.03.2015. Accordingly, FlAC may deliberate and approve the proposal ofamendment of the said clauseof the PMSagreement.
Theproposal placed at Para 7 is before the Committee for approval
This has reference to the mail received from EPFO regarding dealing restrictions for EPFO fund managers withsponsors/associates of portfolio managers pursuant to pro\1sion of clause 11("';i) of the portfolio managementagreement dated 12thMay 2015 and the discussions during the quarterly performance meeting held on 7thNoy'15.
Based on the detailed look at the list it may be noticed that it contains several large entities with a considerablemarket presence in- the financial markets. The list consists of more than 400 entities with which .the fundmanagers might not be able to deal with under the said clause of the agreement. This list includes largePSu/PVT banks like SBI arid its subsidiarjes, PNB, BoB, ICICI Bank and large insurance companies like L1C,SBtUfe, SBIGeneral, Reliance General, Reliance Life, SBI DFHI. SBI Capital Markets, SBI MF e.t.c. The aboveare the active participants in the secondary market and contribute a major part of the daily market wlumes.
This would reduce the dealable active counterparties for EPFO as an entity. thereby reducing the access tosecondary market supply. As a market practice. counterparty name is disclosed only at the time of closing thedeal which becomes difficult to handle operationally.
It may also be pertinent to note that going forward,§pecial S.D~ might be an attractive investment avenue forEPFOs wnich are first aflocated to-PSU Banks and thereafter would be available in the secondary market.
Considering the foregoing, we request you to look in the matter and ease the dealing restrictions for the fundmanagers.
-- Forwarded message --From: Puneelt N Srivastavva <[email protected]>Date: Mon, Nov9, 2015 at 11:15 AMSubject: Request for re'.AsitingClause 11('.Ai)of the Portfolio Management AgreementTo: ajay kumar <[email protected]>, Vishal Agarwal <v;[email protected]>Cc: Jimmy Baji Buhariwala <[email protected]>
Dear Sir,
This has reference to the mail received from EPFO regarding dealing restrictions for EPFO fund managers withsponsors/associates of portfolio managers pursuant to provsion of clause 11('.Ai)of the portfolio managementagreement dated 12thMay 2015 and the discussions during the quarterly performance meeting held on 7thNov'15.
Based on the detailed look at the list it may be noticed that it contains several large entities with a considerablemarket presence in the financial markets. The list consists of more than 400 entities with which the fundmanagers might not be able to deal with under the said clause of the agreement. This list includes largePSU/PVT banks like SBI and its subsidiaries, PNB, BoB, ICICI Bank and large insurance companies like lIC,SBI Ufe, SBI General, Reliance General, Reliance Ufe, S81 DFHI, S81 Capital Markets, S81 MF e.t.c. The above
'ai'tHhef active participants in the secondary market and contribute a major part of thedaUy ,market'.()lumes.
This would reduce the dealable active counterparties for EPFO as an entity, thereby reducing the access tosecondary market supply .. As a market practice, counterparty name is disclosed only at the time of closing·thedeal which becomes difficult to handle operationally.
It may also be pertinent to note that going forward Special SOLs might be an attractive investment avenue for.EPFOs which are first allocated to PSU Banks and thereafter would be available in the secondary market.
Considering the foregoing, we request you to look in the matter and ease the dealing restrictions for the fundmanagers..
Thanks & Regards,
Puneeit N Srivastawa
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As a part of m!ssicn to prcJ'lide the ertlre gamut fAfinancialseNcts across India, the State Bank Group. \II~1la netwcKlof 22.831 branches (indudlna 6,S54bfanchts of fiveAssociate 8anks~ naddition tobanklna seNce!o the Gn:lup,ttirougtl its various subsidlaries, pnMdes I whcle ranpfA.fInandaI serkes. ~. life tnsuranc ••. Men:birt~. T~ee Buslne5$,MWial Fund$. CMIl CriFactorint. Seturity tradirt. Pension Fund Manapment.Custocfial stNlces. GenerallnsuIiIfU (Non Ute Inslnnm)and Primary Dealership in the Money MaOcet.
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Associate Banks1M 1M Associate Banks of SBt had a Marlett shari of .5.22" " deposits and 5.66 ~ in ~dvances appnJXima~1yas on 31st Mirth 2015.Associilt SInks IDpdter hiYt8.561 number of AlMs..which IN shIred by.u. SUte .e.kGrcup.
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t SUt!8i1Ift cfBbner &JiIIU 676.12 75.07102302&3231 1119 2106 m 85.48llSJ 4.1.- l5A 12.921 State3¥i cI t\*abad 367'ss 100.00 '1S4S03 H11~ 1<*1Sl 291" 13111189 11.26 .t.SI U4 1173 "3· State &rk of Mysore 628.63 90,00 J9469 6~ .Sl296 1131 aaUl 11.42 4.00 2.16 9..0
Awards and Accolades•. StItt Bank of Bibner L Jaipur w.s _anMd the "Social BlnkincExcellenct AJ¥ri 20'4: 9ub6c Sector 8Anks .
Category· by ASSOCHAM.••• State Bank of Hydef3bad &ar* has receMcl "8t!t Bank (Public .Seaor)Award insIilutId by AlP News.~ Stac. bnk of J¥.ore was ~ Bac hnk·.....-d for Ta SlfNVI- by ChImDtr of IndiM Mtcro.SrnIII &
Medium Enterprise$. New o.hi~ Statt Bank fAPINt.hB reclMld· Best BanIc ~ For•••• 1nitiJtM. Runner Up"' from Chimblroflndian Micro
On I stIndIIoM bDs"SBlCAP posted. a PBf of fS07.90crores~.fY2()15~.IIfIIinst~aorudlarinl·theFV2014 •••• PATofflalcrons iit FaolSapiMtf2Qi.47 Q'Otes,ii FY2014.
SSlCAPand its S subs~riIs tDpther.poad.• PST of •t5095t,C'Om dun"! tM ro01S •. apimt'~.&Saor.sdurina'ChefV201. ~PAT of t334.10 crotfllS"'"dum: FY201S ISqaimt Q6237 crores inFV2014.
sSiCAPdeclared~. il'llidend in Mo15 apinst ~60"in fY2014.
. As a leadar In its space. S8ICAP has IttaIned recopirioIiin the fOrm of:some of the rncnt presticious awanbin meindustry nameiy.
Awards:• IFI Asia Jle&jonllAwIRfs HfIh YiIId Bond - Tata
SiMl'sUSSl'5 bilioftdull-trantheWlior nota,. AJNmonIy . RecJonll Capital Marbb Awards '
Ranklnls:,. r-to.1 ''''lndated Lead Arran,., in AsiA-PICExjapan
Loans Le•• Tables lOU .•-NiU\MMkIl:ahart ofB.~' as per 9\oomberc.
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~~l~RUnnerA~p,.c:t»jlpan loins -~ttsftIniJi.SY. IS per~";' l .No·1~~~It8dArral1pt~NIQ;~.s~1!$~.lSper~·· .....• t.'In,ttie~iDanS MtATlibies sse tops the liStMhinlrbtSha,.af57" is per8Ioornbtrj. .
No.1 Book Runnlr Asia Pacific & JIPIR with ~shlreofl4a IS perPAlhGmsCIn RtutIn~~~:,~,. ' .. S
.' se&ments. il also enppd in. anddimibuli'M ofOChlr financial productl likeMutual fUnds.Taxi' Bonds-- :
•SSl hasiO'lerl00 tnnches ••• offen Oemlt.. .~in&.IPO .MF services to both ,.taii and institutioMIcftnb. cumt\tIy h~ more than 7.80 IMhs cti*-s InMIItt\, 5 .1'heCompany his booked&nm ~off114.01 aomdurintFY2015IS .pinst m.O! ~ InFY1()14.
SSl.w¥. winMd ~ certificalH from Hltion.'Stock e Chao nlt.of India for beinl a To·!)PerformingMem' in UoId ETF"tObdizaticn" and "New cr~ntEnrcllm " .
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2. SBiCAPS Ventures limited (SVL) -SVl is a wholly 0WnId subsidiary of S8I Capital MatteaUmited ORO {Departmentfor ,merNtioMl DeYtIopment:)has joined hands with the S8I croup to sponsor the "Net\'Fund'" to be maaapd byS8lCAP VenllnS limited SVl willau as the Asset Management Company.
The Funds win _invested in Infrastructure sectOrs suchas ren..,ible .'*D. waatr MId SInitIlion. ~~~supply chain in 8 identified stitCH of tncr..(8ihar.Chhattisprh. jhMkhand. Madhya Pradesh, Odisha.-RajathM. Uttar Pr.tesh and WestBenpO.
3. SalCAP (UK) UMITED(SUL)SOl is a wholly owned subsidia.y of S8I Capital MMtetswmitad SUl is posiIjanint itself as I •••••Iionship outfitfor S8f Capital Ihrhts- Umbd in UK .and Europe.Reb!W;Onships ani bftlI_·· built wiIh Als.. Financial
- , Ins~ Law Firms.. AccountinC ~ _ III marketthe bu$iness products ofSB1CAP.
581 ,roup hokb 72.17 % shilre in the Com5NfIY. TheCompany postad Net Profit of ~2.S5 crare! in ~1S.sapinst '6Q.70 (rares in fY10t.l. '
The martet shara of S8I OFH' was lJ13'i am<>rlr.st allmarket participants and 16.' ft amonpt StandalOne POlas on March. 2015. .
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Co sal CARDS & PAYMENTS SERVICESPRIVAn LIMITED (SBICPSl)
SBICPSl.. dw stand-iIon. awdit ani issuin: co~ny inlndi•• is I joint vtntan between -StM:eBankof .,. andGECapital CorporMion, wMt'Iin S8I holds 601i ~
SBICPSI.is 3rd •••• in the industry in tanns of~rds in-force with 1~ market sh••.• with I b.1se of 31.$8. Iakhs. iISat Mard\ 2015.., compM'ed to 15-' maricet. wiI:ha bas. of2l.Sl1Uhs u at u.dt. 20U ..Com.,.., hasU..5 market shaN in IItrmS of spends in fY201$apinstn~ in fY20t4.. t
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4. S81CAP (SINGAPORE) LIMITED (SSGl) 'The companys net profit dun", the yur FlpnS isSSGl a wholly O'MWI subsi~ of sBl Capiul MIrUts t266.70 Crans. CoflllN"Y haswiptd out its ~1HUmitad. which commenced business wich effKt from .losses Ind dIdInld dMdend in FY201S. S8JCard JfInthedDecember 20' 2. ComJNnYhas posted Net Profit of fl51 SytfeUP Card, a MIll Co-brJnchd Cn in partnarsftjp withClOI'6 during FY2015 B apinst Nee Ioss~ t 2.81 croru Fashion at Bil 1MzMr. (A fWn Group EnterPrise) indurint fY20U. Dee.",., 2014 and MumINi Metro Card in MMih. 201 S.
sa Cards hasbeen ...-did Gold in die CiI~"'Credits:-5BICAP TRUSTEcC"'On-.-IL~I~Mt"'ITE"~D~(C'"STrlC"'L~)-lC"'ar=dSr."'-=-lftttMReadin Oipst Ti'UStid 1IiiiiCISiiMi·201S.
. ~Trus_ Co ltd (STell. a whoa, owMd sub$icbtyofSBltJpial u.rtrets Umad.whidtcommenc:ed ~trustH business wid\ effKt from 1st Aucust 2008. Msposted Nee Profit fA f11.16 cnxes duMC Pt2015 .,apinsi: ~.81 aores durin: fY2014.1t ••• made II'AiIItN• facility for onr..,. creation of will
B. SB.DFH.LIMITED (S81 DFHI)SBIOFHI Ud is one of the larpst standalone PrimaryDMIen{PDlwithA.,. tnciIpnI8a.As aPrimaryo..r
. (PO)'it is mandated to support tM book buikIin& procassin primary .lUdions ~ -prcNid. depth. and IiqUcfityto secondary rMtkets in G·Sec.. Besides Governmentsecurities. it ~Iso de~s in money market instruments,.non G-Sec debt in!CrUments. etc. As • PO. itsbusintssactivities are r..,..a by RBI.
D. SBILIFE INSURANCE COMPANYLIMITED (SBlUfE)
SBI t.n Insurance Company Umited is a Joint v.ncu •.•betwetn State Bank of Ind~and BNP Parlbas c.dif inwhich sa holds 74~ •••. $BIur. hilS a unique multi·dlstribuCion modaf comprisi"l ~ RetailApncy. ~ Gr.aup Corporate olnd Online Channelsfor disaribution of Insurance products. .,
MMtet sha,.. in New Business Premium (NBP) amongaU ~ players ., on MIrth. 201S is 15.~ SBI Lnrecorded 10.81'" YOY increase in PAT to "20 cfcns infY2015 acainst U.so UOl'Hin FY2014.Th. 'Assels und.,Man.pmenr' 01 SBI utt recorded a 'tOY :rowth of21.~ to rum f71.l39 CtOres as on 31stMarm 201 S.The company his been fII1kId No. lin the industIy in(NBP) durinc Ft201 5 ImOnIIIIPriva Insurance pfayets.
InSpirinI Wok PIKa AWant201. in BFSl.'PICNilnAJdlctror~""ift'" ~byskoch·.~. Inclusion ~·D •••••••• -.. .1014.I~ lnSur•• Awatds2014 ~ ~C~I~. -
~lJfelnannca~lMerdbyAsi.~Financiil Senias Ind Jnsurance &alltnca 2014. -TheMostAdmired Uf.lnsuranct COntPI"Y and thtBtstUtlns ••• nct Compq in dw Priv_ $«tor,il1 the 8FS1 ~1J Aw.i'ds.
Most TMttd Pm•• ur. Insur~ Brand byTheEconomic TiIMS. Brand Equity .nd Nielsen Sut\;~for four ~t yt...-s.
~ Go!dt!'l Peaced( National Trainin. Awri 2014
-.
S81 GLOBAL FACTORS LIMITED(S816Ft)
SB1GR. is • le.adinc provicI« of fwo"", setvices fordomestic and inttmAtioMI O"ICM. S8I&rouP holch 86.11"sh«e in t:ht Compa"!. Compan)'s s.mc.s ar. especiallysuiable for MSME diena for frMin, up mourcuIocktctin book .CItbts.By 'Iirtue of its rntmIMrship. ofFa~~ CNift ITrter'MdoNi (Fell the Company is able CDameJior •• uediC risk from export AC.iv~t.5 under the1 fa<Q)r mo<W.
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NotwithstandinC challen;es in gowin; top line and Gross Written Premium (GWP)s1Dod at ~lS80 crores forimprc:Nini asm quar~ in the pm.ins economic . fY201s... C~ recorded ]A powth in GWP VOvslowdown. the Company recistered in Qplfibnt profit of apinst an industry crowth of ~f49.78 acres during FY2015.
Overall market share amOl1l all iMW1f1CI companiesTh.f companyis adequately capitifl2ed with Wi A1+ Ondudirc GeM companies) increased from 1.~ to 1.9\rannp from reputed rItina iC..us for its borrowinC ind in 35,. to 4.1,. amonc'privIte players.programmes.
G. S81 PENSION FUNDS PRIVATELIMITED (S8IPF)
SBIPF is one of the three Pension Fund Manaprs(PfM) appointed by Ptrmon Fund RegulatOry&[}i'4elopmencAuthority (PFROA) for manasement of~ension.Fundsundtf' the N~ PMsion System (NPS)fer Central GOliernment (except Atmed Fotm) iInd SWtGo••••mmentempioyees.
SBIPF, i whoUy owned subsidiary of the State Bank Group.commenced'its OJ)e.radons' fiOm· April. .2CCt.. The· total·Assetsl!ndtr Manapmen( Gf the company IS on 31st "Marth. 2015 mre 01.407 crores (YOY&rO'Mh of 69 %)against t18.624 crom in FV2014.
Impro ••oed in IHIbtrankinl - CMr1U to 13m from 18m:nfY201'{ and to 8th in MCnS from 12thimOflltht pm-ampliyen.
S8IGICoccupies ind position in "Pr~ Accidtn(atan over~ industry !eveand 2nd position ·in Art ROn:Privatl1nswtn.
Awards and recognitions• WW1ner - iCMG fmf8r Company Martetin, Group'
ExctIIenct Award for Enterpf.se Architeaurt in2014. -RuMtr-up - WOQ DItJ Quality Asii Pacific Award2014.iAAA rami from ICRA f« daim payinc ability.
lhtCompanymai~nedlod positionamonptPension I. S8156GLOBALSECURITIESFundManaCers in terms of AUMin bodt Govtmrnenc_an_d_-.....:!S£"'iRVK'-S-PR~VAIF:-bIMn~~~S6)I-----.I>rjvate Sectors. -
The overall AUMIl".arket share in Priva seaDr was 73,..while in the Go'Iernmtnt $«tOr itw.,lS~ The compiflymaintained its number 1 rink in both Priv•• SeclDr IrIdGoYerntnent Stctor.
H. 581 GENERAL INSURANCE COMPANYLIMITED (S8IGIC)
SBlGIC is a joint venture betweenStltlBri of ~ IIIdlAGAustnlii in wnich SBIholcts74~ SUb. The companysWOnt focus is on disdpfcnedpricin~ fair and transparentdaims manapment practices.
The cornerstone of tht compll1y's p'OMh aspitalmwill be focussed on the banca chinnel whilst seIeUiveIydll/tiopinc I'ternattch.mnelsand products that meetCt6 busines objECtrve5.
SBISG. a joint venture between State Bank of 1_ andSoci~e GeneraIe. was set up ID offer hiP quality custDdyand fund admUisnOonseMc.tDCamplemthebouquetof tinancW SlNiclS on olfet by I fiRlftCiifCOftllomeritl.
S81SGcommenced cornrrtettill operations in Custody in .M.y 2010 and fund AttounCiftI Senic-es in Sept 2010.
(ompany'1Ntt.profitsin5.69croresinFt201SHapiMtto.21 ClOre in F12014..
r..,. AsselSU~er Custody is on 31st Match.2015ros,to fl".S87 cram as ~ f1.1S.701 crOftS on 31stMarth 201A. while the Assets Under Administrition wtf'Iat t7'.09Ocrom in fY201Sis apinst 52.901 crares inFi.20U,
,::til . List of Sponsor and Associates - Clause I\(vii) of the PMS ... https:llmail.googlu:.);!I'mail/ulOl?ui=2&iJ<=:7adde2e951&view=pl~~ ....•....:>1.. -••
Please find attached file for details required In your below email.
Reliance Capital Limited is the sponsor shareholder of ReAM.
Regards
.. Jayesh ...
From: IMe EPFO[mailto:[email protected]]Sent: Wednesday, October 14, 2015 10:33 AMTo: [email protected];dgmpms.gm; PrashantRaghunathPimple; Puneelt N Srivastavvaisundaram.g; Yat!n V1nekar;·[email protected];[email protected] .Cc: FACAO;[email protected] Agarwal; ajay kumar; Ankur GuptaSubject: List or Sponsorand Associates- Oause l1(Vii) of the PMSAgreement
Sir,
Please refer to the Clause 11 (vii)of Portfolio. Management Services Agreement, wherein"The Portfolio Manager shall not utilize the services of the sponsor or any of its associates orits associate brokers, employees or their relatives ( or the services of the sponsor of anyother Portfolio Manger appointed by the EPFO, or any of their associates or its assodatebrokers,employeesor their relatives), for the purpose of any securities transactions, .distribution, and sale of securities in secondary market. However, investments can be madein primary market issuances in which the sponsor or any of its associates or its associate
Associates of Reliance Capital Limited (Sponsor of R.llance Mutual Fund) as on September 30, 2015
~\
Reliance capital umitadSr.N o Holding Company & List of Group as per MRTP, Act. 1969 i List of Companies In which Directors of·RCAM are·actlng
SDOnsor as Dlnctors1 Reliance Capital Llrnlt~ /IiAA & Sons .Enterprisei Private Limited ! Edelweiss Alset Management Limited2 MA Advertisement Private LImIted J Motilal OsWaIAsset Management Company Limited .3 AAA Allied Services Private limited Ga~r India Research & Advisory Services Private Limited
4 AAA Business· Machines Private Limited Il&FS Infrastnlcture Development Corporation Limited5 AAA Capital Consultants Private Limited 1 Il&FS Energy Development Company limited6 AAA Cinecreatlon Services Private limited ! Kaifash Healthcare Limited7 MA Commercial Enterprises Private Limited Reliance AIF Manageme~ Company Limited8 AAA Communication Partners Gammon Infrastructure Projects Limited9 AAA Communication Private Urnited I Motherson Sumi Systems· Limited10 14M Corporation Private limited i Reliance General Insurance Company Limited11· 14M Electrical Power Development Private Limited Reliance life Insurance Company Limited12 AAA Engineering Services Private limited Reliance HOme Final'lceUmltect13 14M Enterprises and Venture, Private Limited Reliance capital Pension Fund Limited14 AAA enterprises Partners 1 Reliance Exchangenext limited15 AAA Enterprises Private LImited : DaHan Capital Advisors (India) Private Limited16 AAA Entertainment Private Limited Glnnl Filaments Limited17 AAA Evershlne Entertainment Private Limited 1 Forbes & Company Limited18 AAA Facilities Solutions Private limited Thukrallndustriallnvestments Private limited19 AAA Home Entertainment Services Private Llmlte~ Sterting Transtel limited20 AAA illuminative Solutions Private Limited ... Upper Crust Builders Private Limited21 AAA Industrial Services Private limited i Karat Diamond Private Limited22 AAA Industries Private -limited . JSW Infrastructure Limited23 AAA Infra Advising Services Private Limited i JSW Jaigarh Port Limited24 AM Infrastructure Consulting & Engineers Privat~limited South West Port Limited25 AAA Infrastructure Consulting And Engineers Priv~te limited JSW Nandgaon Port Pivate Limited
26 AAA I~frastructllre Finance Management Private Limited Kailash Hospitals limited27 AAA Infrastructure Investments Private Limited I Reliance Capital Limited28 AAA Integrated- Services Private Limited i Espandere Advisors PriVate Limited29 AAA International Capital Private Limited i Association. of Mutual Funds In India30 AAA Micro Services Private Limited MFUtilities India Private Limited---- --- ---- ----
•• 2..1
I
.e 31 AAA MultivisionService$ Private Limited32 AAA Pivotal Enterprises Private limited33 AM Power Systems (Global) Private Limited34 AM Project Ventures Holdings Partners i
35 " ~~ AAA.·Pl'C.ffCtV~IPatmetS36 AM ProJect Ventures Prtvate Limited37 AAA Resources Private limited !38 AAA Telecom Holdings Private Limited39 . AM Utility Ventures Private Limited i
40 Acerock Infrastructure & Consulting ~rivate Limited41 ADA Enterprises and Ventures Private Limited42 AJpsoft Techventures Private Limited \
43 Ambani EnterpriSes private .limited I
44 Ambanl Industries Private Limited I
45 Ammolite Holdings Ltd. i46 Amulin Hydro Power Private Limited41 Anupam Global Soft (U) Limited I
i48 Aricent COmmercial Services Private limited49 Me/Trading Private limited i50 Atlanta AcMsory Services Private Limited51 Atlantic Ventures Private limited i
. 52 Atos Mercantile Private limited i
53 Alas Trading Private Limited I54 Bhllruch Power Limited55 BIg Animation (India) Private limited I56 Big Flicks Private Limited i57 Bonn Investment Inc • I
I
58 Campion Properties Limited j59 Capitallnfraprojects Private limited I
63 Chltrangi Power Private Limited64 CoastalAndhra Power Infrastructure Limited65 Coastal Andhra Power Limited
I
iI.k.:z.
torr-\
66 Dahanu Solar Power Private Limited I
67 Deltainfra Technology Private Limited I
68 DhiNbhai Ambanl Enterprises Private Limited69 Ohintbhai Amban/ Memorial1=rust I J70 Ohwani EnterpriseS lLP I J71 Emerging Money Mall limited (w.eJ. February 20.2013)(merge72 Emfni Hydro Power Private limited ,
73 Euronet Spain SA74 Fidelity Shares and Securities Private Limited I
I
75 FLAG Telecom Deutschland GmbH76 FLAG Atlantic UK Limited77 FLAG Hotding.s (Taiwan) Limited78 FLAG Telecom Development Services CompanY,LLC79 FLAG Telecom Nedertand BV I80 FLAG Telecom Singapore Pte. Limited
I
81 FLAG Telecom Asia Limited . . i
82 FLAG Telecom Development Limited83 FLAG Telecom Espana Network SAU I
84 FLAG Telecom Group Services Limited I
85 FLAG Telecom Hellas AE i86 FLAG Telecom Ireland NetWork Limited ,
87 FLAG Telecom Japan LimitedBB FLAG Telecom Network Services limited89 FLAG Telecom Network USA Limited
•• 90 FLAG Telecom Taiwan Umited91 Gateway Net Trading Pte. limited92 Gaylord Investments and Trading Private Limited93 Guruvas Commercials LLP .94 Guruvas Textiles Private Limited ,
95 Hansdhwani Trading Company Private Limited96 Hannony Art Foundation I
97 Hui Investments Unlimited : !
98 liT Insurance Broking and Risk Management Private Limited99 Indian Agri Services Private Umited100 Indian Commodity Exchange Ltd I
•• :;(3
'ed with RCL w.e.f. Appointed date i.e. March 31, 2013)
• '" ~ T l t r f ~ i T -
,,101 .--' Intuit Consulting Private Limited . i
102 Jharkhand Integrated Power Limited103 Jumbo Mercantile Private Umited ,104. Jump Games Private Limited I105 K D Ambani Trust i106 Kalai Power Private Umited107 KO Ambani Trust108 KDA Enterprises Private Limited109 Kerala Communication Network Private Um ted110 . Krupa Commericals LLP . i
111 Lagerwood Investments Umited ,112 Lara Sumta Hydro Power Private Umited I113 Lord Comtrade LLP ,
114 M. P. Chitale & Co.115 M. P, Network Private Limited116 MIs. Mro Mundial ,117 Mis. V. M. Salgaocar Sales Intemational·118 Maharashtra Energy Generation Umited I
119. Malti Vasant Heart Trust !
120 Mandke Foundation I,121 Microtech Development Private Limited I122 Mihundon Hydro Power Private Umited i123 Mr. Abhinav Jhunjhunwala·124 Mr. Amitabh Jhunjhunwala125 Mr. Anil O. Ambani ,
126 Mr. Bhadrashyam H. Kothari I127 Mr. Bidhubhusan Sarnal • !128 • Mr. Binod M. SamaJ129 Mr. Dattaraj V. Salgaocar130 Mr. Harshvardhan V. N. Kaul I
I
131 Mr. Jagannath Temple Managing Committee132 Mr. JaianmoiA Ambani I
133 Mr. Jaianshul A Ambani i134 Mr. Jayant Wad ,
135 Mr. Mukesh D. Ambani !
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136 Mr. Prabhakar P. Chitale137 Mr. Rajendra P. Chltsle :
138 Mr. Sanjay' Swain139 Mr. Satindra Nath Kaul140 Mr. Sunil Kucchal141 Mr. Thakore Prasad Jhunjhunwala142 Mr. V. N. Kaul i
143 Mr. Vikramadltya K. N. Kaul144 MRG Hotels Private limite~145 Ms. BadhuH Samal146 Ms. Diptl O. Salgaocar I
147 Ms. Jyoti Wad ,
148 Ms. Kokilaben O. Ambani149 Ms. Mala Kaul150 Ms. Niharika KuOChal151 Ms. NinaB. Kothari !
I
152 Ms. Nita M. Ambani153 Ms. Prema Jhunjhunwala154 Ms. Prlyal R. Chltsle155 Ms; Radha Kaul156 Ms. Sheela Jhunjhunwala i
157 Ms. Shivani Samal158 Ms. Shobhana R. Chitale159 Ms. Shrlya Samal160 Ms. Sisir Samal i161 Ms. Snighda Samal ,
162 Ms. Sushma P. Chitale163 Ms. Tapoti Jhunjhunwala164 Ms. Tina A. Ambalii :
165 Ms. Veena Kaul166 NO's Art World Private Limit~d167 Net Direct SA (Proprietary) Limited168 PT Avaneesh Coal Resou~s169 PT Brayan Blntang Tiga Energi170 PT Heramba Coal Resources
'. :~5
'. 171 PT Sriwijiya Bintang Tiga Energi i172 PT Sumukha Coal Services173 Purthi Hydro Power Private Limited i
"" ~ f " •.••.• T ~ f • ~ - ~ , , .- , f •.. , • , • I
... \ ,...
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205 Reliance Big Broadcasting Private Limited206 Reliance Big Entertalnment·(Singapore) Pte LTD i207 Reliance Big Entertainment (US) Inc.208 Reliance Big entertainment lapanCo.Ud .209 Reliance Big Enteitainment·'Private Limited210 Reliance Big News Private Limited !
211 Reliance Big Private Limited212 Reliance Big TV Limited I
215 Reliance Capital A1F Trust" Company Private Limited216 Reliance Capital Asset Management (UK) PIc.217 Reliance capital Asset Management Limited218 Reliance capital Pension Fund Limited219 Reliance Capital Trustee Co. Limited , -
361 Reliance Infra Realty-Llmited I362 Reliance Money Solutions Private Limited363 Shri Niranjan Shah (Father)364 Smt. Neela N Shah (Mother)365 Ms. Heena Shah (Sister)366 Ms. Neha Shah (Sister) I
(-, DISCLAIMER: The information transmitted in this·ema~ contains confidential and prlvileged material and itis meant for the intended recipient only. If you are not the intended recipient of this email, please delete the .same and inform the sender immediately. ~ disdos\l'e or further diStribution of the·email is strictlyprohibited. The recipient is advised to scan the mail and arTf attachments for viruses before opening. Thecontent of the message camot be guaranteed to be secure or error free. For 10\1' attention: Social Media:Now interact with us on: FaceBook: http://www.facebook.comiUTIMlo.tUaIFund Twitter: https:lItwitter.comlutimlJtualfundlinkedln: http://www.linkedin.comfcompany/uti-mf YouTube: http;lIwww.youtube.comluser/utimutualiunds Presenting 'Haq Ek 8ehtar Zindagi Ka' - the lYC for our new brand campaign hUp:/IbiUyIUTI-MF_Haq Plan your investments online, Register for e-Statement of Accounts, NAV alerts and more athttp://www.utimf.comClickonhttps:/Ionline.utimf.comlto Invest online throughlnternet Banking, Debitcards or IMPS and enjoy complete freedom from paperwork. To see the demo, click onhttps.r/online utimf.com/demosi demo_main.html ------------------- .•-.:.------------------------------- Pleasecontact us at: email: [email protected] Toll-free: 180022 1230 Non Toll-free: 02226546200 '---------------~--------------------~-------------------- Mutual Fund investments are subject to market risks readall scheme related documents carefully. '
1. National Securities 8hri B. Baburao President is a Nominee DirectorDepositories Ltd. in the Company.
2. Stock Holding Corp. 8hri B. BaburaoPresident is a Nominee DirectorofIndia Ltd. in the Company.
3. N8DL eGovernance 8hri B. Baburao President is a Nominee DirectorInfrastructure Ltd in the Compan~
4. CentBank Home Ms. Vasantha Govindan VP IS a' NomineeFinance Ltd . ' Director.
I \x..
33
Annexure BSr. No.
1.
UTI Spectrum Fund
NameUTI International Ltd.
2. UTI Retirement SolutionsLtd.
ReasonIt is a 100% Subsidiary of UTIAMC & as Shri.Leo Purl Managing Director UTIAMC is the NonExecutive Director.It is a 100% Subsidiary of UTIAMC and Shri LeoPuri Managing Director UTIAMC is theChairman (Non Executive Director), Shri P. N.Venkatachalam Director UTIAMC & Shri BalramBhagat employee UTIAMC are Directors of thisCompany .:It isa 100% Subsidiary of UTIAMC, Shri LeoPuri Managing Director UTIAMC is theChairman (Non Executive Director), Shri M VSuryanarayana Director UTIAMC & Mr. JamesSellers Riepe, Director UTIAMC are Directors ofthis Company.It is a 100010subsidiary of UTIAMC and Shri LeoPurl Managing Director UTIAMC is theChairman (Non Executive Director), ShriFlemming Madsen Director UTIAMC, Shri IRahman. OrouP_J>~jq_~l1L&CEQUTIAMCare- ..
.--- Directors--o(· this Company and Shri GautamRajani officer of UTIAMC is the CompanySecretary.It is a lOQ% subsidiary of UTI International Ltd.,Shri Leo Purl Managing Director UTIAMC is theNon Executive Director, and Shri I RahmanGroup President & CFO UTIAMC are Directorsof this Company.
3. UTI Venture FundsManagement Co. P. Ltd.
It is a 100%.subsidiary of UTI International Ltd.
7. UTI Private EquityAdvisors Ltd., Mauritius
It is 100% subsidiary of UTI Venture FundsManagement Com~-.1 Pvt. Ltd.
8. Ascent Capital AdvisorsIndia Pvt. Ltd.
4. UTI Capital Pvt. Ltd.
IV of UTI Venture Funds Management CompanyPvt. Ltd., Shri Leo Purl Managing DirectorUTIAMC is the Chairman (Non ExecutiveDirector), oflhis Company.Its 50% share capital is held by UTI VentureFunds Management Company Pvt. Ltd.
5. UTI International(Singapore) Pte Ltd.
9. Shinsei UTI India Fund(Mauritius) Limited
10.
As .management shares are held by UTIInternational Limited
6. UTI InvestmentManagement Company(Mauritius) Ltd.
-00-
·..••••11.
12.
13.
14.
15.
16.
17.
18.19.
20.
I\~
I I
21.
22.
23.
24...- .--.- . .-' --
25.
26.
27.
28.
29.
30.
31.
LPL . Finan~ii!! J:f()l<\ings,_ As Mr. JamesSeUers- Riepe DireetorUTIAMC is-Inc.-- -- aBoard Member .
Vardhman Acrylics As Mr. Sachit Jain Director UTIAMC is aLimited Director (Non Executive Director).Vardhman Apparels .As Mr. Sachit Jain Director UTIAMC is theLimited Chairman & Director (Non Executive Director).Vardhman Yarns and As Mr. Sachit Jain Director UTIAMC 1S aThreads Limited Director (Non Executive Director).
UTI International Wealth -00-Creator 1UTllnternatiohal Wealth -00-Creator 2UTI International Wealth -00-Creator 3 )~
UTI International Wealth -00-Creator 4UTI International Wealth -Do-Creator 5UTI International Wealth -Do-Creator 6UTI Horizon Fund Ltd. As management shares are held by UTI
International (SinRapore) Pvt. LimitedUTI Phoenix Fund Ltd. -00-UTI India Fixed Income -00-FundInvest India MicroPension Services Ltd.
As Shri Surojit Saba is a Director of thisCompany.
T Rowe Price Program forCharitable Giving Inc.
As Mr. James Sellers Riepe Director UTIAMCisthe Chairman of the Board & Director.
Baltimore EquitableSociety
As Mr. James Sellers Riepe Director UTIAMC isa Board Member.
Genworth Financial Inc As Mr. James Sellers Riepe Director UTIAMC isthe Non-Executive Chairman of the Board.
Vardhman Textiles As Mr. Sachit Jain Director UTIAMC is Jt.Limited ManaRin2 Director of this Company.Vardhman Special Steels As Mr. Sachit Jain Director UTIAMC is theLimited Managin2 Director.
Syracuse Invest. & Trdg -Do-Co.Pvt.LtdAdinatb Investments & -00-Trdg Company fl'vtcompany with unlimitedliability)
change in valuation have not been accounted for in these assets.
3. As against the above characteristics of fixed income assets where the income is
actually derived from interest. which is revenue in nature, the profit in the equity
( , will mostly be capital in nature and will be represented by its current market
value as compared to its cost of acquisition. However, the dividend received on
underlying shares of ETF, will be revenue in nature having 'characteristic similar
to interest income.
4.(,
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Secondly, EPFO being a Pension Fund is likely to have long term investment in
equity. It will not be prudent to sale the asset at the end of the year in order to
realise profit in cash for its distribution among the .beneficiaries. This will
unnecessarily introduce the concept of repeated transaction cost. during the
sale for booking the profit and purchase in subsequent month from the fresh
receipts.
5. The accounting complexity in EPFO is also due to the nature of scheme itself.
At the end of the year, EPFO has to credit the interest to individual account and
also has to declare the rate of interest. The declaration of rate of interest
defines uniqueness of EPFO and distinguishes EPFO as a mode of saving
from the other instruments for old age saving available in the market such as
NPS, mutual fund etc. Declared rate of lnterest is also easy to comprehend for
majority of the benefici~ry of EPFO who are financially illiterate or not very well
versed with the complicated instruments where profit has to be derived on the
basis of certain set of data.
6. This characteristic makes Provident Fund a hybrid scheme which though isdefined contribution on yearly basis becomes defined benefit scheme at the end
of the year.
7. In the above operational context of the provident fund the decision to invest in
equity and related instrument, while has the objective to maximise the profit on
. investment the objective of accounting policy should be to ensure that:-
i) the declared rate of interest is smooth over a long period of time despite
making investment in eq\:Jityand related instrument to the extent possible.
ii) The capital invested in equity is protected to the extent possible.
iii) To avoid generation shift in distribution of profit from investment in equityand related investment as far as possible.
i·
8. In view of above, the following accounting policy for equity & relatedinvestments are proposed as under:
A. Calculation of Profit/loss:
I. Valuation of the Asset investment in equity will be as per mark to themarket basis (MTM).
\ -II. The opening stock of the first year will be nil (zero).
III. The purchases shall be calculated on the basis of the cost of purchase +
brokerage and other direct cost paid for the purchase.
39
IV. The closing stock of the investment relating to equity and related
instruments will be valued at market price(mark to market basis).
V. The closing stock of the previous year shall become the opening stock of
the subsequent year.
VI. The dividend will be considered as receipt on accrual basis. In other
words, the dividends declared by 31st March on any of the equity held as
investment shall be treated as income of the year.
VII. The profit or loss every year in equity and related investments will be
difference of the closing stock + dividend received + sale price (sale if
there isany)as reduced by the value of opening stock + purchase duringthe year.
B~Creation of Equity Income Stabilisation Reserve:
I. It is expected that over period of next 7-10 years, the compound annualgrowth rate of equity will be 12%though this target may be achieved inI~~g-t~r~:-Th~re- may-be year to -yearvOratilitY-inthErsame~ -------
(:.
II. In order to declare a smooth rate of return, certain portion of profit from the
investment in equity shall be declared as distributable profit for the year
under para 60 of EPF Scheme. Remaining portion of profit shall betransferred in reserve, which may -be called Equity Incomestabilisationreserve(EISR).
III. The profit from investment in equity shall be bench marked to the average
G-sec rate. For calculation of average G-sec rate,average closing price of
current series of. 10 year G-sec. for last day of each month of perviousyear will be considered. If there are more than one current series in the
previous year, the relevant series will be considered for the months in
which it was current. In month of April every year EPFO will calculate and
make available the working of the average g:-secrate on it's website.(,
40
, I
(iv) The profit from equity and related investment will be considered fordistribution in the following manner.
Percentage Distributable profit in percentage(profit on eost ofinvestment)
Above average G 200 bp above Average G.Sec.rate A.sec rate Upto 15%From 16% to 20% A + 40% of the profit in excess of 15% BFrom 21% to 30% B+ 50% of profit in excess of 21% CAbove 30% C+ 60% of profit in excess of 31%
(v) The excess of the profit from the investment in equity and
related instrument, over and above distributable profit as
calculated in the paragraph4 above shall be transferred to ESIR.
(vi) The excess of profit from fixed income assets as against the
amount of interest payable to individual beneficiarv calculated
on the basis of declared rate of interest for that year shall also,-'- -.- -~., ----.-----.--~--- -- ._- ------, - ._------_.-----_._----------- ----.- -~.-.-.-.---.-.- --,-----
be credited to this EISR.
(vii) The Equity Income stabilisation reserve will hold maximum upto
10% of the value of AUM.
(- (viii) If the interest stabilisation reserve become more than 10% of
AUM, there will be no further credit to this accountand any
amount which otherwise would have been creditable to the
reserve will be available for distribution of the profit., \
: Ic. Use of Funds in EISR:
: c_
o
I (,,_,
(i) The EISR can be used for smoothen out the rate of interest '
declared by EPFOfrom year to year.
,
(ii) In case the profit from investment in share and related
instrument is between the fIAverage G.Sec. Rate" and 200 basis
point above averageG.Sec. Rate, no drawal from interest
stabilisation reserve will be made to distribute or declared the
interest for the year.
(Hi) lf the profit from the share and related instruments for a
particular year is below the average of G.sec. Rate, the Board
may at his discretion decide to draw from the reserve to declare
the rate of interest for the year.
(iv) If during any year, there is income from. equity below the
average G.Sec. rate and there. is no balance in EISR,the actual
income calculated alone shall be distributed.
(v) If during any year, there is loss on investment in equity and
-there is-nobalanceln -EISR;the-toss out -ofinvestmentineqUify-------
shall be added to income out of investment in other asset and
the resultant income shall be distributed as interest for that
particular year.
The proposal contained in Para 8 is placed before the committee for approval
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122nd Meeting of FIAC09.12.2015
Item No.5: CBlO borrowing transactions by the Portfolio Managers duringthe period 19.09.2015 to 20.11.2015.
Pursuant to the recommendation of CBT in its 204th Meeting held on 26.08.2014,the Ministry of Labour & Employment vide its letter no. G-20025/1/2014-S5-II dated1ih May, 2015 approved borrowing of funds from CBlO for participation in PrimaryAuctions of Government Securities and Corporate Bonds. Accordingly, the direction ofGovt. on borrowing of funds from CSlO was communicated to all Portfolio Managers,that inter-alia mentioned following conditions:
a) No borrowing will be done for more than 15 days.b) Prior to entering into such transaction, the Portfolio Managers shall intimate
through' email to Investment Monitoring Cell (IMC), at EPFO Head Office thedetails of proposed borrowing to be made and the matching purchase ofsecurity. The proposal should also contain the expected profit/gains from thetransaction.
c) The P9rtfolio Managers shall report full outcome of the transaction to the IMCafter the borrowing is closed.
d) The IMC shall compile all such transactions and place the same before RAe in its·--next immediately- foltowing meeting;--- . --------- -. ------e) The outcome shall also be placed before the Soard for information in next
following meeting.
2. The information of the CBlO borrowing transactions till 18.09.2015 done by thePortfolio Managers had already been placed in 121st Meeting of the RAe held on16.10.2015 and subsequently in 209th Meeting of the CST held on 24.11.2015. It islearnt the same has been taken note of by the CST.
3. This agenda contains outcome Report of the following transactions done by PortfolioManagers during the period 19.09.2015 to 20.11.2015:
I. PNBHousing Finance Bonds by one Portfolio Manager (UTI AMC)II. State Development loans (SOls) by one Portfolio Manager (HSBCAMC)III. Axis Infra Bonds by one Portfolio Manager (HSBCAMC)IV. SOls of various states (kamataka (KA), West Bengal (WB), Madhya Pradesh
V. 4. The following are the details of profit made in the period of investment onborrowed fund:
(I) PNB Housing Finance Bond
UTIAMC
Mode of Borrowing One time Term Money BasisWeighted average yield on long Term 8.39 % (Semi Annual Coupon ofInvestment of PNBHousing FinanceBond 8.23%)
Cost of Borrowing in CBlO 6.85%Total Amount of Borrowing through Rs 15 CroreCBlONumber of Days of Borrowing 7 DayPositive spread_(in bps) betweeneturn of long term investment vts 154 bp (8.39% -6~85%)the cost of CBlO funding~etGains Rs 44,559.90,
(II) State Deyelopment Loans (SDLs)
-- ----- -~----------- HSBCAMC---- --------
- IMode of Borrowing Term Money Borrowing
through CBLOITM 8.13 % ( Semi Annual)Cost of BorrowinQ in CBlO 6.79%[TotalAmount of Borrowing through Rs 10.40 CroreCBlO~umber of Days of Borrowing 1 DayPositive spread (in bps) betweenreturn of long term investment vIs 1.34%he cost of CBlO funding ,
Net Gains Rs3,81S/- -,
(III) -Axis Infra Bonds
HSBCAMC
Mode of Borrowing Term Money Borrowingthrough CBLO8.25 % (Annual)
l
~ost of Borrowing in CBlO 6~90%Total Amount of Borrowing through Rs 79.90 CroreCBlONumber of Days of Borrowing 14 DaysPositive spread (in bps) betweenreturn of Long term investment vls 1.350/0he cost of CBlO fundinQlNet Gains Rs 4,13,729/-
. (IV) State Development loans of various statesSBI
\
Proposed Mode of Borrowing 4- day CBLOBorrowingYield on overnight investment in 8.3056-8.3160SOLof MP,WB & RJCost of borrowing in CBlO 6.90%Total amount of borrowing through 4,469,500.00 CroresCBlONumber of days of borrowing 4 dayPositive spread(in bps)
Proposed Mode of Borrowing On overnight basisYield on overnight investment in 8.29 - 8.31SOL of Jharkhand, Telangana,Madhya Pradesh, Uttar PradeshCost of borrowing in CBlO 6.99%Total amount of borrowing through 163.10 CroresCBlONumber of days of borrowing 1 dayPositive sgread(in bps) 130-132
Net Gains Rs.58,569.95/-
.
: lReliance CAMLProposed Mode of Borrowing On ovem!ght basisYield on overnight investment in 8.28 - 8.31SOLof Jharkhand Telanqana,
Madhya Pradesh, Uttar PradeshCost of borrowing in CBLO 7.05%Total amount of borrowing through 200AOCroreCBLONumber of days of borrowing 3dqysPositive spread(in bps) 1.23% to 1.26%
Net Gains Rs.2,03,812.14/ .• '-
HSBCAMC
: I"
ProposedModeof Borrowing Overnight borrowing for 5underCBLO days or till the time sufficient
inflows are receivedYield on overnight investment in 8.2952 % - 8.3056%SDLof West Bengal, MadhyaPradesh, and KarnatakaCost of borrowing in CBLO 6.60%,Total amount of borrowing through 54.12 CroresCBLONumber of days of borrowing 3 daysPositive spread(in bQ~) 170 - 171... ---- _ .._ .. - -.--- - - .. ------ --- .
Net Gains Rs.75,744/-
UTIAMCI
ProposedMode of Borrowing dvemight borrowing for 5underCBLO days or till the time sufficient
inflows are receivedYield on overnight investment in 8.27 - 8.31SOLof West Bengal, MadhyaPradesh and KarnatakaCost of borrowing in CBLO 6.92%- 7.06%Total amount of borrowing through 82.65 CroresCBLONumber of days of borrowing 3-5 daysPositive spreadfjn ~sJ 123- 139
Net Gains Rs.1,06,314.20/-
I, ,
Net Gains for EPFO in ria aboveSOls transactions of various States(Total of S8I, I-see PO, Reliance,HSBC&UTI)
Rs. 11,36,903.76
The item is placed before the FIAC for information. The same ,shallalso be placed in the next csr meeting for information.
( ,
Telephone: 26178450 Fax No: 26194349
Employees' Provident Fund Organisation(~mf~~/m«1~
(Ministry of Labour & Employment, Govt. Of India)Ij1I,CilfllCi I Head Office
8hay1shya NIdbI BhawID,l1-Bh'uG, earn' Place. New Delbl-llQ066
All Members,Finance Investment & Audit Committee,Central Board of Trustees, Employees' Provident Fund.
Sub: Minutes of 12200 Meeting of the Finance Investment & Audit Committee (FIAC),CBT,EPFheld on 09.12.2015 at EPFO, Head Office, New Delhi -Reg.
Sir,
Minutes of 12200 Meeting of the Finance Investment & Audit Committee held on
09.12.2015 approved by the Chairperson are enclosed herewith for your kind perusal and
necessary action please.
Yours faithfully,
Enel:- As above \\..J~\l'Il""(VIS~~r~~~iL)
R.P.F.C-I1(IMC)/Link R.P.F.C.-II (Invest.)
- 2-
Copy fOlWarded for information and necessary action to:-
1. P.S. to Central Provident Fund Commissioner, EPFOHead Office.
2. P.S. to FA & CAO, EPFOHead office.
3. Addl.C.P.F.C -1 (1MC~EPFO Head Office.
4. Regional Provident Fund Commissioner-II (Conference), EPFO Head Office.
5. Regional Provident Fund Commissioner-II (IMC), EPFOHead Office.
6. Regional Provident Fund Commissioner-II (IMC) EPFOHead Office.
l' f!-.ppc. ..- CFH) £ P po He~4.,1 OJ~/ (_.(7,.
~~\~\~(VISHAL AGARWAL)
R.P.F.C-II(IMC)/Link R.P.F.q-U (Invest.)
f - ·"i -I,
it ,
Minutes of the 1220d Meeting of the Finance Investment & Audit
Committee (FIAC) held on 09-12-2015
1. The 122nd Meeting of Finance Investment & Audit Committee was held on 09-12-
2015 from 02.30 P.M. onwards in the Conference Hall, 3rd Floor, EPFO, Head Office,
New Delhi.
2. The following members/representatives were present in the meeting.
1. Sh. K.K. Jalan Chairman, FlAC, Central Board and Central Provident Fund
Commissioner-,
2. Sh. Heera Lal Samariya Additional Secretary (L&E), Ministry of Labour &,Employment, Govt. of India.~--Sh. Sudhir Shyam Director, Deptt. of Financial Services, Ministry of Finance, as
representative of Joint Secretary, MoF, Govt. of India; as,
Domain Expert.
4. Sh. Balasubrahrnanyam Member, Central Board, (Employers' Representative)
Kamarsu
5. Sh. J. P. Chowdhary Member, Central Board, (Employers' Representative)
6. Sh. Pawan Kumar As representative of Sh. Prabhakar J. Banasure, Member,
Central Board, (Employees' Representative)
The following members could not attend the meeting:
1. Dr. G. Sanjeeva Reddy Member, Central Board, (Employees' Representative)
2. Ms. Meenakshi Gupta Joint Secretary & Financial Advisor, Ministry of Labour &
Employment
In addition to the above, Shri Sanjay Kumar, FA & CAO, EPFO and Convener was
also present during the meeting.
3. The Chairman welcomed all the members and officers present in the meeting.
Thereupon the agenda were taken up.
Item No.1: Confirmation of the Minutes of 121st Meeting of the Finance Investment
& Audit Committee held on 16-10-2015.
The minutes of 121st Meeting of the Finance Investment & Audit Committee
held on 16-10-2015 were confirmed.
Item No.2: Action taken report on the recommendation of the 121st Meeting of
Finance Investment & Audit Committee (FIAC) held on 16-10-2015.
The action taken report as placed was taken note of by the Committee.
Item No.3: Amendment in terms of Agreement of Portfolio Management Service
Agreement entered with Portfolio Managers.,
FIAC deliberated upon the issue. It was felt that the restrictions sought to be
imposed on transactions by the Fund Ma nagers with related party should not
be left totally uncontrolled. The Committee felt that changing the terms of
. agreement in one go should not be the approach. As FA&CAO listed the
difficulties, it was decided that the proposed transactions (as proposed by FA)
be allowed as were being allowed earlier.
The Committee further decided that the working of the investment with the
amended clause will be observed for some time and it shall be reviewed within
next few months in order to decide if this provision requires any further
amendment to make it practical in the present context of the market.
Item No.4: Accounting policy and method of Accounting for equity & related
Investment.
After detailed discussion, the accounting policy and method of accounting for
equity and related investment was approved.
Item No.5: CBLO borrowing transactions by the Portfolio Managers during the
period 19.09.2015 to 20.11.2015.
The committee took note of the agenda.
Item No.6: Agenda Item on one time ex-post facto sanction of FIAC for continuing
CBLO borrowing- Regarding HSBC case.
The Committee took note of the facts presented in the Agenda item. FA
pointed out that the permission may be given for borrowing upto 30 days. It
was felt that a separate agenda may be brought for increasing the tenure of
borrowing from 15 days to 30 days.
Item No.7: Revised Estimates for the year 2015-16 and Budget Estimates for the year2016-17 for EPFO and the schemes administered by EPFO.
The agenda was approved by the committee with the following remarks anddirections:
i) On the receipt side, the Committee observed that the forecast/estimatesfor contribution received in 2016-17 are on the lower side and it shouldbe raised to minimum 10% of the RE of2015-16.
ii) The entire contribution to the Gratuity and the Pension fund of the staffand officers of EPFO should be charged as a one time in expenditure inthe current financial year.
Item No.8: Update on Investment in Exchange Traded Fund (ETF).
The Agenda on the investment in ETF was discussed and it was furtherdecided that the investment in ETF was further to be reviewed. For thispurpose, CRISIL, NSE & BSE will be requested to make a separate expertpresentation in the next meeting of FIAC. The experts in this meeting shall berequested to focus their presentation on the following broad points:
i) Relevance of investment in equity by Pension Fund.ii) Security of the investment money in the Pension Fund.Hi) The periodicity of review of the decisions of investment in equity.iv) The ideal size of fresh accretions that should be invested in equity
considering the AUM to EPFO and the equity market of India.v) The right mix of the products among the equity and related investment
for investment by EPFO at present and in future.
The meeting ended with a vote of thanks to the chair
