Liquid BeES

1
Liquid BeES
2
About Benchmark

• First AMC in India with focus on passive and
  quantitative asset management
  
• First AMC in Asia (ex Japan) to launch ETF, and
  only 18th in the world
  
• Launched the first ETF in India Nifty BeES
• Run by a team of professionals with vast
  experience in companies like Merrill Lynch,
  CRISIL, Salomon Smith Barney, etc.
  

• Directors of Trustee Co.
• Dr. S.A. Dave Dr. Pravin P Shah
• Mr. Dakshesh Dhruv

• AMC Directors
• Mr.Dhirubhai Mehta
• Mr. Sevantilal Parekh
• Mr. Shripad Halbe
• Ms. Susan Thomas
• Mr. T.N.V. Ayyar

3
Introduction to Liquid BeES

• Liquid BeES, first Exchange Traded Fund (ETF) in
  India on debt
  
• Combination of a share and a mutual fund unit, to
  be issued in demat mode
  
• Real-time Trading on NSE
• Will trade on the capital market segment of NSE
  and be settled in the rolling settlement on T2
  basis
  
• Face Value of each unit Rs.1,000. The Fund will
  endeavor to keep the daily NAV at Rs.1000
  
• The Funds will be invested in Floating Rate
  Securities short dated money market
  instruments
  

4
Introduction to Liquid BeES

• Endeavor to provide daily returns full
  protection of capital
  
• Daily Dividend Scheme
• Daily reinvestment of dividend
• Units will be allotted up to 3 decimals
• NSDL CDSL has waived all charges relating to
  transactions in Liquid BeES in their respective
  depository system

5
Liquid BeES - Structure

• An Investor can invest in/redeem Liquid BeES in
  two ways
  
• Buy/ Sell directly on NSE, T2 Rolling
  Settlement
  
• Directly with the Fund, Minimum Subscription
  Rs.25 lacs ( multiples of Rs.25 lacs
  thereafter), T1 subject to clearance of funds/
  transfer of units

6
Liquid BeES Advantages for Investors

• Earn return on idle funds without moving to the
  banking system
  
• Can do effective set off trade from equity to
  cash or from cash to equity in the same
  settlement.
  
• Minimize broker Risk
• Tax efficient way to earn interest
• Ability to earn interest on funds for less than 7
  days avoid the time lag involved in moving
  funds to banking system
  

7
Liquid BeES Advantages for Brokers

• Intermediaries Less working capital and
  smoother cash flows
  
• Reduces credit risk of Investor
• Facilitates T2 settlement
• SEBI vide its circular no. SEBI/SMD/SE/Cir-22/2003
  dated June 11, 2003 has directed the stock
  exchanges to include Liquid Mutual Fund units in
  the list of securities eligible as Cash or Cash
  Equivalent for the Cash Component portion of the
  Additional Capital and Margins.

8

9
Our Other Existing Products

• Nifty BeES An ETF on SP CNX Nifty,
• Indias first ETF and the best index fund in
  terms of tracking error and cost
  
• Junior BeES - An ETF on CNX Nifty Junior
• The CNX Nifty Junior is the next rung of liquid
  securities after the SP CNX Nifty Index.
  Together, the SP CNX Nifty the CNX Nifty
  Junior, make up the 100 most liquid securities in
  India.

10
THANK YOU