ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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GARMENT EXPORTS-Fresh Initiatives Needed

quotes. Many other banks are expected to set up over-the-counter facilities in due course. Another development of considerable significance is the launching by State Bank of India of mutual fund akin to the one floated by the Unit Trust of India. The fund called SBI Mutual Fund will be managed by the bank's wholly-owned merchant banking subsidiary, SBI Capital Markets, and it will concentrate mainly on attracting funds from small investors in the rural and semi-urban areas. The first scheme to be offered by the SBI Mutual Fund would be a close-ended fund and is slated to attract subscriptions amounting to Rs 100 crore for a period of seven years. In view of the amendment of the banking regulation act permitting the setting up of mutual funds by banking companies it will not be long before other banks alsc set up similar funds. Healthy competition among mutual funds can have important implications for the development of the secondary market and it will help promote the cult of equity. Recent discussions on the state of the new issues market have brought into sharp focus the role merchant bankers have to play by way of stricter appraisal of the projects and greater involvement in the outright purchase of new issues of small and medium scale companies.

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