LIC to infuse Rs. 25 crore into LIC MF

Life Insurance Corporation’s board approved capital infusion of Rs. 25 crore in LIC Mutual Fund Asset Management Ltd (LIC AMC) on a preferential basis.

LIC informed the stock exchanges of the investment decision.

Currently, LIC has 45 per cent stake in LIC AMC, followed by LIC Housing Finance at 39.30 per cent, GIC Housing Finance at 11.70 per cent and Union Bank of India at 4 per cent.

In July this year, LIC Mutual Fund completed the takeover of IDBI Mutual Fund and merged schemes with effect from July 29.

The strategic move was in line with its mission to strengthen and diversify its product offerings, expand its footprint, and grow its assets under management to emerge as a leading player. LIC MF, which was launched in 1989, has AUM of Rs. 18,400 crore and IDBI MF Rs. 3,650 crore as of June 30. The Competition Commission of India (CCI) had approved the takeover of IDBI MF by LIC MF in March this year.

At the end of 2023, LICMF’s AUM stood at Rs. 17,600 crore. Equity accounted for around 45 per cent of the total AUM at close to Rs. 8,000 crore, while the remaining Rs. 9,600 crore came from debt schemes.

Sebi extends deadline to June 2024 to add nominees in mutual funds, demat accounts

Sebi extended the deadline to June 30 next year for demat and mutual fund account holders to provide a nomination. Earlier, the deadline to nominate a beneficiary or opt out of it by submitting a declaration form was December 31, 2023.

The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.

“Based on representations received from the market participants, for ease of compliance and investor convenience, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024,” the Securities and Exchange Board of India (Sebi) said in a circular.

Further, Sebi asked asset management companies (AMCs), depository participants and Registrar and Transfer Agents (RTAs) to encourage the demat account holders and mutual fund unit holders to fulfil the requirement for nomination/opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such unit holders who are not in compliance with the requirement of nomination.

The communication should provide guidance to provide nomination or opt out of nomination.