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Gone are the days when almost all AMUs launching Fixed Maturity Plans were inviting their advisors and distributors for get together during the event and thus the advisors and distributors canvassed and sold the schemes and now due to sudden change of the Government and also change of policy in the new Govt''s Budget, the scenario has changed but is there anything left for the advisors and distributors to face their clients. Such steps taken by the immediate Govt. leaves the financial sector in critical situation and the credibility is put to awkward. Was there no role of IMFA to fight for the cause.

As in these cases if you actually see the account statement, the scheme remains the same and the date of allotment is also same. This is an additional advantage which we can provide to the investors. ICICI Pru has done it. I think others will also follow. As per tax is concerned there is a good advantage in the current year. At the time of maturity as per the current tax law LTCG benefit is there, but all will depend upon the tax rule prevailing at that point of time.

The point is correct however it is given to understand by one of the leading AMC who said they are rolling over the scheme but in that case they are not going to change the date of allotment of units. It would remain same so in effect its an extension. I think all AMC s would do that. Incase the allotment is dne fresh then the issue of STCG will arise. and AMC is legal departments are quite intelligent they would not put investor to loss. Its a different question if Govt changes its word Now infact we should be carefull even to redeem and reinvest the equity investments also no one knows FM may tax even equity MFs like Debt MFs

I agree to the view point above. Roll over means a new investment, whereas extension is continuation. Unfortunately, advisors are stuck with an instrument that they sold advising their investors of the tax efficiency. Today that tax benefit is lost and so is the liquidity. This is a move made to weed out corporates from taking the tax benefit, SEBI and Mutual Funds knew about it right from the start, that this provision of tax will be used by the corporates, Govt has woken up after many years, due to the bank lobby. My argument is that the Govt is favouring banks where they advertise the interest rates, MFs are not allowed to even disclose what is in for the investor if they invest in a scheme, a blind spot. In such a case tax benefit is the only way that you can promote the MF schemes. Thus this withdrawl is not correct.

I agree with what you have stated in it.Regarding Rollover of FMP IT Department should give clear guidelines . In banking system when Term deposit is roll over interest earn at the point of rollover is treated as interested income and liable for tax liability.

Regarding FMP rollovers for tax benefit , [1]those investors who are simply considering the words of any AMCs are hereby advised to get the promise in writing on the AMC letterhead to avoid further troubles. [2]AMCs can suggest the investors to give consent for rollover at investors'' own risk. [3]Advisors who advise the clients to do rollover may get an additional letter signed by investors that those tax liabilities arising out of this particular FMP rollover /s will be only the investors liability and the advisor will not be held responsible for any difficulties, losses, tax liabilities, & inconveniences arising out of the transaction. ??

Though Mr. Apurva Gandhi has raised some technical issue, I think the onus will be/is on AMCs to keep the objective same so as to give LTCG benefits to the investors in the revised tax guidelines & rules.

AND WHO KNOWS, EVEN AFTER ROLLOVER WHEN IT COMES FOR MATURITY, IF THE LAW SAYS, NO LT GAINS ON FIXED INCOME PRODUCTS, TO BE AT PAR WITH FIXED DEPOSIT, (THE LOGIC NOW GIVEN), TAX ON FIXED INCOME MUTUAL FUNDS TO BE AT NORMAL RATES OF INCOME TAX ONLY, ANY THING IS POSSIBLE WITH TAXATION !!!!!!