Weekly News 14th march 2022

1. Weekly
News
14th March 2022
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2. Snapshot
SEBI Approves LIC IPO
EPFO Cuts Interest
Rate
Equity MFs Witness
Jump in Inflows in
February
Fresh Inflows Enabled
in PPFAS Flexi Cap
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3. LIC
LIC Recieves SEBI Approval to Launch
IPO
● Approval received in 22 days from filing its DRHP. LIC aims to sell 5% of its stake (31.6
sell 5% of its stake (31.6 crore shares) and raise up-to Rs. 63,000 Crores.
63,000 Crores.
● 10% of the IPO size will be reserved for policyholders and 5% for employees.
for employees.
● Highly likely the Govt will postpone its IPO to the upcoming FY 23 due to current market
23 due to current market volatility induced by the Russia-Ukraine conflict.
conflict.
● The Govt plans to file its RHP for SEBI Approval. The RHP will provide details on the
provide details on the price band and discount for policyholders & retail buyers.
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SEBI Registered Investment Adviser (INA200006628)

4. EPFO cuts interest rate to 8.1% for FY 2021-
2022
● EPFO slashes interest rates from 8.5% (FY 20-21) to 8.1% for FY 21-22.
● Decision was based on EPF’s estimated earnings of Rs.76,768 Cr. The interest rate cut
leaves the EPFO with a surplus of Rs.450 Cr.
● The cut is the lowest since 1977-78 (8.0%). Since then, it has been 8.25% or more.
● The Finance Ministry will vet the declared interest rate provided by the EPFO prior to it
getting notified. EPF subscribers will receive the interest amount post-notification (Diwali-
2022).
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SEBI Registered Investment Adviser (INA200006628)

5. Equity MFs Witness Increase in Inflows
Despite Volatility
● As per AMFI data, Equity MFs witnessed a
32% increase in inflows in Feb (Rs.19705 Cr)
compared to January (Rs. 14,888 Cr).
● Investors are utilising the current market
correction as a point of entry.
● Increased exposure to flexi and large cap is
recommended as blue-chip companies display
greater resilience in uncertain times compared
to MSMEs.
Image Source: Business Standard (March,2022)

6. ● Given that there is no change in the overseas investment limit (USD 7 Billion), fresh net
inflows in the fund will be invested in domestic equities.
● The weightage to international equities in the fund will decline until there is an increase in
the overseas investment limit.
● Portfolio rebalancing will be done as per prevailing market conditions when the overseas
limit increases.
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SEBI Registered Investment Adviser (INA200006628)
PPFAS to Enable Fresh Inflows in its Flexi Cap Fund from
March 15th

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