Capital Markets 30 May 2017 by Tojo

SEBI plans more restrictions on Participatory Notes

SEBI plans more restrictions on Participatory Notes

The capital market regulator SEBI is planning new regulations to curb the misuse of Participatory Notes. According to a consultation paper, the regulator would like to end the use of PNs for non-hedging purposes by 2020. Participatory notes are popular instruments for non-resident Indians to bring back money stored in overseas to make investment in Indian shares and bonds. They are offshore derivative instruments enabling foreign investors who have not registered with SEBI to invest in Indian shares to trade in shares through Indian brokers. Government’s White Paper on black money and the Special Investigation Team on black money have identified PN as a way to bring back bl

Read More »
Capital Markets 26 Aug 2016 by Tojo Jose

RBI launches big bang reforms to rejuvenate corporate bond market

RBI launches big bang reforms to rejuvenate corporate bond market

All of a sudden, the RBI has announced several path breaking measures to give life to the country’s corporate bond market. The central bank has announced several market reform measures for mobilizing and investing funds in the corporate debt market inviting active participations from institutions and individuals. Major measures include permission to banks to issue the so called rupee denominated bonds or masala bonds overseas for financing infrastructure and affordable housing and to mobilize Additional Tier I and Tier II capital. So far, rupee denominated bonds were issued only by big infrastructure lenders like IFC, HDFC etc.  The new policy will help banks to mobiliz

Read More »
Capital Markets 12 Feb 2016 by Tojo Jose

India holds on one more turbulent day; but Asian markets falls

India holds on one more turbulent day; but Asian markets falls

For the second day, stock markets across the have undergone painful volatility, but at the end of the day, many have withstood the turbulence. Notable was the Indian market where the indices almost closed flat. In Asia, Japanese stock market which was closed yesterday has undergone their downward scoop today with Nikkei losing 5%. Australia and Hong Kong also have continued their slide. But in India, the market was relatively resilient though initially the indices lost values. As the day progressed, Indian market slowly decoupled from their Asian peers. India’s recovery without transferring the scoop to the western markets is because of positive momentum in the economy. In

Read More »
Capital Markets 20 Jan 2016 by Tojo Jose

India’s stock market fared better compared to others on a day of global turbulence

India’s stock market fared better compared to others on a day of global turbulence

Stock markets from Japan to US, suffered big losses today and currencies of many emerging markets witnessed serious decline after capital outflows. Stock markets in Europe and US lost nearly 3% points and Asian markets also experienced similar trend. World Markets fell by 3.5% on an average, Indian stocks fell by 1.7%; rupee near to 68  India also was deeply affected by the uncertainty in the global market as both stock markets and the rupee falling during the day. The rupee lost 30 paise and closed just short of 68 at 67.95 against Dollar. Rupee was plunged to its 28 month low during intraday. But the rupee was a comparatively better performer among the EME currencies.

Read More »
Capital Markets 03 Aug 2015 by Aswin A S

Government to discuss the SIT report on P Notes with SEBI and RBI

Government to discuss the SIT report on P Notes with SEBI and RBI

The government is planning a discussion with two regulators- SEBI and the RBI on the Participatory note issue. Last week, the Special Investigation Team appointed by the Supreme Court has identified P-Notes as a channel for black money investment in India. P-Notes are instruments issued by registered foreign institutional investors to overseas investors who wish to invest in the Indian stock market. A major accusation against P Notes is that details of the investor remain unknown for the regulator. Market analysts count that nearly 12 per cent of the money put by the investors are through P Notes. Leading indices the Sensex and Nifty have shed nearly 5.5% on last Monday after th

Read More »
Capital Markets 28 Jul 2015 by Sreejesh S

China stock market loss means systemic weakening and is a warning for India

China stock market loss means systemic weakening and is a warning for India

The continuing scoop in China’s stock market is not good news for EMEs including India. Portfolio investors are sniffing for systemic fault lines in other EMEs as the Chinese government’s invisible effort to tame the market goes futile. Already, the Chinese equities are down by nearly 10% in the last two trading days. Drying liquidity amidst weakening economy is the root cause of the burst in the Chinese market. Overvaluation and bubble in the last one year is also a contributor. So far, the market observers are interpreting it as the inability of the communist part to rein in the market. Here, the conclusion is that the problem is China specific. But a caution is ri

Read More »
Capital Markets 24 Jun 2015 by Tojo Jose

SEBI brings relaxed listing and fund raising norms for start-ups

SEBI brings relaxed listing and fund raising norms for start-ups

Capital market regulator SEBI has come out with relaxed norms to promote the listing of digital economy companies. Group of measures related to listing and fund raising were made by SEBI that may make it easy for India’s start up sector to list in India rather than going to the overseas markets. An important component of the new relaxed regulation is launching of separate institutional trading platforms for start ups. To complement the new platform, SEBI has announced many flexible norms including lightened disclosure and fund disposal criteria for stratus to mobilise funds from the capital market. The flexible norms include important change in disclosure norms relate

Read More »
Capital Markets 02 Mar 2012

LIC and SBI bailouts, ONGC's offer for sale

LIC and SBI bailouts, ONGC's offer for sale

Scooped down like a rocket, seconds after its launch; this is what happened to the ONGC’s offer for sale. Wrong time and to an extent wrong pricing has resulted in the under subscription of shares of India’s No. 1 company. In the end, the disinvestment ministry was able to procure nearly 8000 crores rupees because of the participation of ace insurer LIC and lead banker SBI.                 ONGC’s successful open offer would have given government the much needed money to shorten its fiscal deficit. Simultaneously, the exercise would be a trend setter for the coming open offers of SAIL and

Read More »
Capital Markets 27 Jan 2012

The opportunity to buy shares at their lowest price has just gone!!

Such a prediction may not be good to your reputation, especially if you are a portfolio adviser. Stock price movements are used to fluctuate with all global and domestic events and the present economic environment is highly unpredictable. The BSE Sensex has just crossed seventeen thousand mark after touching the low of near fifteen thousand mark, weeks back. Now, the question is whether we will go back to the low levels or may witness an uptrend. All depends on what happens to the crucial pull and push factors in the global and domestic economic environment.             There are some positive signs domestically and globally w

Read More »
Capital Markets 24 Jan 2012

Liberalisation is a threat to financial stability

Premature liberalization of financial markets may add to financial instability - predicts the Depu­ty Governor, Reserve Bank of India, Dr Rakesh Mohan. Liberalization of money and bond markets may lead to large and volatile cap­ital inflows, intensifying com­plications for macroeconomic and monetary management. Volatile rates and liquidity may create instability and even will be unmanageable for the monetary authority.  "Deregulation, liberalisa­tion, emergence of financial conglomerates and globalization of financial markets pose growing risks to financial sta­bility," he said.    Dr Mohan was speaking on 'India's financial sector re­fo

Read More »