The requirement of a unique identification number for investing in mutual funds, known as MIN, will be done away with. According to information available, mutual funds will be asked to follow the Finance Ministry's suggestion of making PAN compulsory for mutual fund applications.
The Association of Mutual Funds in India (AMFI), in consultation with the SEBI, is expected to make an announcement to this effect shortly.
The association had made MIN compulsory for investments of Rs 50,000 and above in mutual funds from January 1, 2007.
The mutual fund identification number was introduced to free investors from the hassle of providing documents every time they make an investment in a mutual fund.
Quoting MIN, investors could invest in the scheme of any mutual fund without submitting know-your-customer documents.
According to sources, the Finance Ministry is against asking investors to obtain more than one identification number.
The SEBI had earlier introduced MAPIN and subsequently suspended it.
Several investors had obtained this number from SEBI-appointed agencies at their own cost.
Afterwards, PAN was made compulsory for all investors in the equity market, followed by MIN. All these have created confusion among investors, said an analyst.
I couldn’t understand why these agencies are torturing us by introducing so many numbers. I think the officials of these agencies are just trained to produce this sort of useless junk ideas.

Indian Transformer Industry: Capitalizing on changing current

The Rs55bn Indian transformer industry will benefit from the strong demand expected from reforms in the power sector. We expect the industry to witness a CAGR of 30% plus in value terms over the next five years against approximately 17% CAGR in the past three years. Improved realizations and higher volumes will largely drive this growth. The government intends to add massive capacity to the generation side and create a National Grid for distribution of this power, both of which should boost demand for transformers. The funding issues for the same have been taken care by the World Bank (WB) and Asian Development Bank (ADB).

Annual demand of about 122,679MVA expected for the next five years
The country’s installed base for transformers stands at 759,240MVA per annum (till 2004 – Source: CMIE). There are about 20 players in the organized segment with nine of them controlling about 60% of it. Installed annual capacity of these nine players will stand at approximately 105,154MVA by end of FY07. Demand for the equipment is expected to remain robus t with the XIth Five Year Plan targeting an addition of about 68,000MW to the existing generating capacity. Assuming the historical achievement rate of 60%, we expect 61,050MW of additional generating capacity coming up over the next five years.

Coupled with this, demand will also stem from the replacement market where transformers installed 25-30 years ago will have exceeded the expected life span. In addition, exports to countries where power reforms are underway i.e. Africa and Middle East provide growth opportunity. Also, huge industrial capex lined up in power intensive industries i.e. oil and gas, metals and cement act as a booster. Based on the above demand factors, we expect a strong annual demand of 122,679MVA for the next five years.
Thanks to www.5paisa.com.
Please click on the link below to download the entire report:

Periodically check your bank A/c statements

Try to check and reconcile your bank statements at least every month. Try to use good software like Microsoft Money to track your finances. I have A/c with number of private banks and all are offering net banking facility. I usually download my bank statements (which have the facility to transfer funds online) every week and tally with Microsoft Money and check the statements in monthly intervals for banks which do not offer online fund transfer facility. But my recent experience proved that I must be more vigilant. What else I can Say? When I check my KVB Rainbow Saving A/c statement, I shocked to see that Rs.15000 is missing from my A/c. On scrutiny of the bank transaction statement, I found that a debit of Rs.15000 on 30.11.2006 by a self cheque using loose cheque leaf available at the bank branch. As my fixed deposits (FDs) are linked to my savings A/c, a portion of my FD was used to pay that cheque. As the branch manager is my neighbor, I informed him the same at 6.45am. He found that in the loose cheque leaves customer themselves fill the A/c no. One of their customers wrongly filled my Ac no. instead of his and the teller paid the cheque without verifying the credentials. By 12 noon I got the money back. But all the stories may not have the same happy end. The lesson is check and reconcile ALL your bank A/c statements every fortnight

Think twice to sign as a guarantor

Recently I read an article written by Geeta Nair
If the person for whom you were a guarantor defaults on his payments you can be sure the law will catch up with you. Under the Securitisation Act, in case your borrower friend defaults on his loan payment the bank can easily recover the money in around six months' time from the guarantor All your personal assets could be attached including bank balances, property and investments leaving you bankrupt. But then, you cannot always refuse being guarantor, especially in family or even close friends. To be on the safer side you can consider standing guarantee to an amount of upto 1/3rd of your gross income. Debt exposure beyond this figure can mean financial disaster. If you yourself are already in debt, limit the amount further more.
Now a days some aggressive banks giving away loans with out any third party guarantee which saves the day for me.

MIN - Part II

SEBI under the PMLA (Prevention of Money Laundering Act, 2002) has mandated that Mutual Funds adopt a clear know-your-customer (KYC) policy. This KYC policy has to apply to all investors wishing to invest Rs.50,000 or more, with focus on the areas of proof of identity and residence. This would, in turn necessitate a change in the process of applying for units of any mutual fund.

If you wish to invest Rs.50,000/- or more into any mutual fund, you would now, under the KYC policy, be required to complete a KYC form, and submit proof of identity and residence. On completion of this form, you would be assigned a MIN (Mutual Fund Identification Number), which you can use across all mutual funds for all your transactions as proof that you have complied with KYC disclosure norms. The KYC form and MIN allotment therefore is a one-time activity that you would need to complete.
To make the data capture and document submission convenient to you, CDSL Ventures Ltd has been appointed by the mutual fund industry as the Central Agency to verify and maintain records of all investors.
Investors who have obtained the MIN can invest in the schemes of the mutual fund by quoting the MIN in lieu of submitting information and documents required under AML Laws.

When is MIN required?
It is mandatory to quote the MIN every time a fresh purchase is made in Mutual Funds for value Rs.50,000 or more. The MIN will be validated with the records of the Central Agency before allotting units. Applications for the said value without a valid MIN may be rejected. This minimum threshold for quoting the MIN is subject to change and the AMC reserves the right to prescribe a lower threshold.
How to apply for MIN?Investors (individuals / non-individuals) can apply and procure MIN (a unique number) by filling up a simple application form and meeting certain mandatory requirements establishing their identity and address. Enclosed herewith is the application form, which also provides the list of documentation required, for your use. You may also download the MIN application form from our website www.sundarambnpparibas.in or from www.amfiindia.com. A list of documents, which will be accepted as proof of identity and address, is mentioned in the form
You can submit these documents at our Investor Service Centers (ISCs) or designated ‘Points of Service (PoS)’. A complete list of PoS is available on the above-mentioned websites. A provisional MIN will be allotted across the counter. Subsequently, the central agency will scrutinize the information and documents and confirm the MIN. Should there be any discrepancies, the MIN may be cancelled within 15 working days from the date of allotment of the provisional MIN and the investor will be informed immediately.

Important points to note:

Investors not fulfilling the complete KYC requirements will not be able to invest with any of the mutual fund.

Incomplete / insufficient and illegible documents are liable to be rejected.

Should the MIN application form be rejected for any reason (inadequate information/incomplete documentation etc.) the investment transaction will be cancelled and the amount will be redeemed at applicable NAV subject to payment of exit load, if any. In the case of ELSS or a New Fund Offer, the original invested amount will be refunded.

All refunds due to rejected MIN applications for investments in the case of existing funds will be despatched within a maximum period of 21 days from date of allotment of units.
All refunds due to rejected MIN applications during NFOs will be dispatched within a maximum period of 6 weeks from the date of closure of the NFO.

MIN is not required for minors, although all applications of Rs.50,000/- and above should have the guardians’ MIN number

MIN number is mandatory for POA (Powers of Attorney)
We have a list of
FAQs (Frequently Asked Questions), which should answer most queries.

Mutual Fund Customer Identification under Prevention of Money Laundering Act, 2002

Prevention of Money Laundering Act, 2002 (PMLA) came into effect from July 1, 2005 and consequently SEBI mandated that all intermediaries (which includes Mutual Funds) should formulate and implement a proper policy framework as per the guidelines on anti money laundering measures and also adopt a Know Your Customer (KYC) Policy. Your attention is drawn to the addendum dated August 31, 2006 issued by HDFC Mutual Fund (Mutual Fund) / HDFC Asset Management Company Limited (AMC) on PMLA. In view of this, presently each investor (including joint Unitholders) who wishes to invest an amount of Rs. 50,000 or more need to obtain their Mutual Fund Identification Number (MIN) and thereby be KYC compliant as required by law. The Mutual Fund / AMC reserves the right to prescribe a lower threshold subscription amount for customer identification. Process of applying for / allotting a MIN
Investors (both individuals and non individuals) intending to invest Rs. 50,000 or more must meet certain mandatory requirements in terms of establishing their proper identity and address. Applicants (including new / existing Unitholders) will have to submit the following documents :
Application Form for MIN duly completed by each applicant including joint Unitholders
Documents evidencing Proof of Identity and Proof of Address ** List of requisite KYC documents is mentioned in the
Application Form for MIN.
These documents can be submitted at a few of our
Investor Service Centres (ISCs) or designated “Points of Services” (PoS). A complete list of PoS will be available on our website and the website of AMFI at www.amfiindia.com. Upon receipt and verification of the above documents, a MIN will be allotted to each applicant. Investor(s) must note that quoting the MIN is mandatory at the time of submission of each subscription request with the designated Official Points of Acceptance. The MIN is presently being issued free of cost.
Important points to note for Investors :
Investors not meeting our complete KYC requirements will not be able to invest with HDFC Mutual Fund.
Incomplete / insufficient and illegible documents are liable to be rejected.
In the event of any MIN Application Form being subsequently rejected for lack of information / deficiency / insufficiency of mandatory documentation, the investment transaction will be cancelled and the amount will be mandatorily redeemed at applicable NAV, subject to payment of exit load, wherever applicable. (In case of an ELSS Scheme or a New Fund Offer, the original amount invested will be refunded). Such refunds will be despatched within a maximum period of 21 days from date of allotment of units. In respect of New Fund Offer the refunds will be despatched within a maximum period of 6 weeks from the closure of New Fund Offer. In view of the above, we request you to ensure KYC compliance at the earliest. Necessary application forms for allotment of a MIN are available at all our ISCs / downloadable from our website
You may also SMS HDFCMF to 6767 / email to kyc@hdfcfund.com or contact any of our ISCs / your distributor, if any, for further clarifications.
For your detailed understanding of the KYC requirements, a list of
Frequently Asked Questions (FAQs), which should answer most queries is available on our website. We request your urgent attention to this letter to ensure that your future investments are processed smoothly.

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