Lamborghini eyes ICE sports cars beyond ‘30
However, the Italian carmaker plans to electrify its entire portfolio by ’24.
India’s capital markets regulator, the Securities and Exchange Board of India (Sebi), has further tightened scrutiny on mutual funds by asking whether they mis-sold certain fund categories to investors, according to several industry executives aware of the matter. The categories under the lens include small-cap funds, retirement funds, credit risk funds and lock-in funds.
Sebi has been clearly uneasy in recent times about huge retail investments in smalland mid-cap funds. Chairperson Madhabi Puri Buch recently warned of froth in small- and mid-cap stocks, and Sebi thereafter ordered stress tests on the small- and mid-cap portfolios of mutual funds in the event of market stress.
The latest move appears to be another step to keep a check on things and nip any potential issue in the bud.
Queries from Sebi to MF houses have been flagged with transaction details in certain instances. Industry executives said the period of transactions under Sebi’s radar is from April 2022-December 2023. Mint could not independently ascertain where Sebi sourced transaction data from, but the regulator has the authority to ask for specific transaction data from mutual funds.
It is also unclear whether Sebi has sent enquiries to all mutual funds, or sent targeted queries to some funds only. At least one fund confirmed to Mint about receiving a query from Sebi, while others said they haven’t yet received a query, but they might.
One senior fund house executive confirmed that he received a Sebi query for one fund category that he offered. “In certain instances, the regulator has flagged transactions pertaining to high-risk funds with a lock-in period of three years-plus being sold to supersenior citizens and retirement funds along with certain other thresholds,” the executive said on condition of anonymity. “These thresholds appear prima facie counterintuitive in nature.”
Another senior mutual fund official confirmed that Sebi had raised queries on mis-selling, but added that his fund wasn’t in receipt of the same, a situation that remained unchanged till the time of writing this article.
“There is a query on misselling,” he said. “It’s the regulator’s way of saying, ‘We have our sights fixed on you,’” he said. “We can call and speak with investors about the risks of investing, but we find that after one phone call they normally don’t answer.”
A query to Sebi remained unanswered till press time.
A third MF industry executive said the mis-selling could also include luring investors by assuring them of attractive returns or selling long-duration funds to senior citizens who have no idea of the risks involved in investing in small caps.
A retirement fund has a lock-in period of five years or until retirement, whichever is earlier. A lock-in fund could be a fixed maturity plan, target maturity plan or ELSS (equitylinked savings scheme), where an investor is locked in for the tenure of the scheme. Credit risk fund is a bond fund that invests 65% in risky company bonds for higher returns.
The latest development comes on the back of stress tests on small- and mid-cap funds ordered by Sebi, which was alarmed at the relentless money pouring into small-cap funds in particular.
The MFS released the stress test results on 15 March, which disclosed the time they would take to sell 25-50% of smalland mid-cap fund portfolios in the event of a market downturn. The idea was to make investors cognizant of the risks involved in investing in smalland mid-cap funds.
ram.sahgal@livemint.com
Lamborghini sees a future for super sports cars with internal combustion engines well beyond 2030, even as the Italian carmaker embarks on electrifying its entire portfolio by 2024. In the backdrop of 'commoditization' of acceleration-related performance in the electric era, Stephan Winkelmann, chief executive officer, told Mint that Lamborghini's strategy will be to leverage hybrids and combustion engines for supercars "for as long as possible".
Lamborghini closed 2023 recording its highest sales (10,112 cars), turnover (€2.66 billion), operating profit (€723 million) and return on sales (27.2%), the company said.
In India, Lamborghini sold more than 100 cars last year, a record, driven by stable taxation and a young demographic profile. A high number of non-resident Indians buying Lamborghinis abroad have also spurred sales in India.
Winklemann said that in 2024, sales in India could exceed the 2023 record of 103 cars sold, helped by a strong order bank of cars, but conceded temporary delays due to the global shipping crisis.
“So, there will be or there were some delays now at the beginning of the year, but this (shipping delays) will be adjusted in a way that there should be no further delay for the whole year taken together,” he said.
Lamborghini will unveil the Urus plug-in hybrid at the Beijing Auto Show in China next month.
Winkelmann acknowledged the slower pace of electric vehicle (EV) adoption compared to initial industry projections,
WINKLEMANN said that in 2024, sales in India could exceed the 2023 record of 103 cars sold outlining that Lamborghini's strategy to push for hybrids will "safeguard" aspects of power, crucial for a luxury sports car maker, as well as lower emissions which are driven by regulation.
“The first phase of hybridization is safeguarding both, you have more power, you have less emissions and you still have sound of combustion engine,” Winklemann said, adding: “We have two strategies
Ahigh number of non-resident Indians buying Lamborghinis abroad have also spurred sales in India
ACCORDING to Winklemann, India has huge potential for luxury goods
going in parallel: for daily driveable cars, we will shift to electrification sooner than for the super sports cars. For super sports cars, we will keep the doors open as long as possible to continue to have internal combustion engines together with the battery. We think that this is a very good opportunity also after 2030.”
Winkelmann sees plug-in hybrids facing no issues in India, given the prevalence of home charging stations among luxury car buyers. He also highlighted the super cars' ability to recharge batteries quickly while driving. He is also confident that by the end of the decade, India, along with other markets, will be more receptive to fully electric cars. Interestingly, JSW MG Motor India recently also unveiled plans to introduce plug-in hybrids.
According to Winklemann, India has huge potential for luxury goods, and we are benefiting from the stability in taxation for the last few years. “And last, but not least, there is a shift in terms of generation. The younger generations are more likely, let’s say, to buy luxury goods compared to their fathers and mothers. This is something which we are witnessing in Indian markets. These, in my opinion, are the most important elements, but for sure, it’s a market with lot of opportunities,” he added.
Sebi has been clearly uneasy in
recent times about huge retail investments in small- and mid-cap funds
HE acknowledged the slower pace of EV adoption compared to initial industry projections