Equity MFs’ inflow falls 43% to `8,898 crore in July
NEW DELHI: As many as 1,999 cases of corporate insolvency resolution process were going on under the insolvency law as of June this year, according to the government.
The resolution for corporate debtors is done under the Insolvency and Bankruptcy Code which provides for resolution through a market-driven process.
In a written reply to the Lok Sabha on Monday, Minister of State for Corporate Affairs Rao Inderjit Singh said the time taken for Corporate Insolvency Resolution Process (CIRP) depends on several factors, including the nature of business, business cycles, market sentiments and marketing effort.
“As on 30th June 2022, total 1,999 CIRPs are ongoing out of which only 436 are in real estate sector. During COVID-19 pandemic period, there has been a general slowdown in the distressed asset market,” the minister said.
He was responding to queries related to resolutions in the real estate sector.
NEW DELHI: Equity mutual funds attracted Rs 8,898 crore in July, a sharp decline of 43 per cent from the preceding month, amid volatile market conditions.
Although, this was the 17th straight month of positive inflow in equity schemes.
The net inflows in July were lower compared to the net inflow of Rs 15,495 crore seen in June, Rs 18,529 crore seen in May and Rs 15,890 crore in April, according to data released by Association of Mutual Funds in India (Amfi)on Monday.
Equity schemes have been witnessing net inflow since March 2021, highlighting the positive sentiment among investors. Prior to this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021, losing Rs 46,791 crore.
All the equity-oriented categories received net inflows in July with the Small Cap Fund category being the biggest beneficiary with a net inflow of Rs 1,780 crore. This was followed by the Flexi Cap Fund fund that witnessed Rs 1,381 crore net infusion. Besides, Large Cap Fund, Large & Mid Cap Fund and Mid Cap Fund witnessed over Rs 1,000 crore net inflow each. Apart from equity, debt mutual funds witnessed an inflow of Rs 4,930 crore last month after witnessing a net outflow of Rs 92,247 crore in June.
However, Gold ETFs experienced a net outflow of Rs 457 crore, which was in sharp contrast to a net infusion of Rs 135 crore seen last month. Overall, the mutual fund industry registered a net inflow of Rs 23,605 crore during the month under review as compared to a net withdrawal of Rs 69,853 crore. This was mainly on account of higher levels of redemptions from debt mutual funds.
In last financial year, 210 applications pertaining to real estate sector were admitted for CIRP under the Code. Out of them, 18 cases have been resolved, 60 have been settled or withdrawn and in 63 cases, liquidation has been ordered. The process is going on in the rest of the cases, Singh said.
Responding to another query, the minister said the realisation by creditors through CIRP under the Code is dependent on quality assets at the time of its resolution.
In a separate written reply, Singh said the Insolvency and Bankruptcy Board of India (IBBI) receives complaints and grievances from Centralised Public Grievance Redress and Monitoring System (CPGRAM), the Prime Minister’s Office, the corporate affairs ministry and other authorities.
“Till 31st July, 2022, the IBBI had received 6,231 such complaints and grievances, of which 6,172 have been disposed after examination.
“Further, as per information available, Directorate of Enforcement has received one complaint against an RP (resolution professional)of one CIRP in which appropriate action under applicable law has been taken,” the minister said.
Further, CBI has received one complaint regarding abuse of process in one Corporate Insolvency Resolution Process matter which was forwarded to the regulator and on examination, the regulator has not found any actionable material, Singh added.
‘In FY2022, 210 applications pertaining to real estate sector were admitted for CIRP under the Code. Out of them, 18 cases have been resolved, 60 have been settled or withdrawn and in 63 cases, liquidation has been ordered. The process is going on in the rest of the cases’