Pre-Budget expectation views by Nilesh Sathe, MD & CEO, LIC Nomura Mutual Fund

Author(s): 

Nilesh Sathe, CEO, LIC Nomura Mutual Fund.

Expectation from Mutual Funds
•         Simplification of rules for Investments by NRI from US in Indian Mutual Fund schemes
•         Make Indian equity market accessible to overseas market participants like in other Asian countries.
•         Separate regulator for Mutual fund to focus on the growth and penetration of Mutual Fund.
•         SIP in equity ETF and Index related funds should be made eligible investments under section 80 CC and the exclusive limit should be given up to Rs. 50000
•         Some allowance should be given to AMCs for opening offices in tier2 and tier 3 cities to promote MF business in these areas.
Expectation from General Budget
•         Focus on Reforms like road map for implementing GST which will give higher revenue to both centre and state.
•         Subsidies will reduce by will reduce due to nil under recovery by Oil companies in respect of petrol and diesel
•         Additional revenue of Rs 50000 cr by way of increase excise duty on petrol and diesel done during current year.
•         Custom duty on crude oil of 5% may be restored back in the current budget which will give addition revenue.
•         Access on direct tax and services tax may be levied to generate revenue for Clean India Campaign.
•         Good reforms in PDS and PPP infrastructure investment and direct benefit transfer payment of all subsidies.
•         Expect Fiscal deficit around 3.6% as against 4.1% of last year projection.
•         The revenue deficit may be much more healthier to enable the government to embark on capital  expenditure in a big way and kick start Growth.
•         Expect MAT on SEZ s to come down,
•         Some measures towards consolidation of Banks
 
Date: 
Friday, February 20, 2015