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[hfe_template id='11223'] [ad_1] Regulation need not be only a tick-box approach, said Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey. In an interview to Nishanth Vasudevan, Deepshikha Sikarwar and Vinay Pandey, he said rationalisation of regulations will be a key focus for the capital market regulator. Edited excerpts: There is a concern in the industry about a growing trust deficit and a subsequent increase in compliances. Do you agree with this view, and is there a case for relooking at compliances? We need to look at optimal regulation which looks at compliance as an important consideration. There could be multiple ways of doing things. They (regulations) may have served the purpose at a time and may not be actually relevant because some of the context may have changed, technology may have changed, and the market may have developed. We have to see whether that micromanagement is at all necessary. Regulation need not be only a tick-box appro...

[hfe_template id='11223'] [ad_1] Shares of Asia's oldest stock exchange, BSE Ltd, surged 4.9% on Tuesday to Rs 5,408.95 on the National Stock Exchange (NSE) after brokerage firm Jefferies upgraded its rating on the bourse to ‘hold’ from ‘underweight’ and significantly increased the target price to Rs 5,250 from Rs 3,500 earlier. The upgrade reflects Jefferies' optimism about potential earnings upgrades for BSE Ltd, despite the adverse impact of recent measures by the Securities and Exchange Board of India (Sebi) on the derivatives market. According to Jefferies, Sebi's new futures and options (F&O) rules, which mandate larger lot sizes, initially caused a sharp 70% drop in options contract volumes. However, the decline in premiums has been less severe than expected, falling by less than 10% month-to-date in January against the firm’s anticipated 25% decline, the brokerage noted. Jefferies said that while the measures have pressured discount brokers, whose...

[hfe_template id='11223'] [ad_1] Mumbai: India will need ₹1,094 lakh crore to ensure an average annual growth rate of 8-9% by 2036 as per the government's Viksit Bharat plan, State Bank of India chairman CS Setty said. Out of this amount, ₹323 lakh crore has to come from banks while the equity market will have to generate ₹643 lakh crore, Setty said, adding that investors will have to move away from the derivatives markets to spot transactions for more depth and liquidity. "For the first leg of Viksit Bharat that is up to 2036, we envisage a growth rate of at least 8% to 9% on an average. These rates can be achieved if we can increase the investment rate to 35% by 2036 (which is) approximately 200 basis points (2 percentage points) higher than the current levels of 2024. Thus, the domestic savings rates must rise from the present levels by at least 350 basis points to 33.5% so that CAD (current account deficit) stays at around 1.5% of GDP," Setty said in hi...

[hfe_template id='11223'] [ad_1] While Adani Group stocks bounced back on Friday after a previous day collapse, the ports-to-power conglomerate has seen some setbacks as a fallout of the indictment by US court. Here are 5 things which have gone against the group as a reaction to what happened: 1. Likely credit halt by global banks Some global banks are considering temporarily halting fresh credit to the Adani Group but staying put with existing loans, a Reuters report said citing sources. Senior executives at two of Adani's global lenders said that they have had multiple calls within their respective banks since the indictment details were announced to discuss exposure to the group and what the impact of the latest development would be on the group's financials. "We will have to put a pause to fresh lending until we are able to figure how this will play out. I think it will be a while before the bank is able to tap the credit market," the report said, q...

[hfe_template id='11223'] [ad_1] Mumbai : Listed companies paid royalty to related parties in excess of 20% of their net profits on one out of four occasions, flagging the need for change in norms, a study published by the Securities and Exchange Board of India (Sebi) Thursday showed. “The data suggests that though the royalty payments made by companies are reasonably within the stipulated threshold, such payments are unjustifiably high in terms of their profitability,” Sebi said. “While the necessity of royalty payment to be considered as an expenditure from the perspective of business growth is acknowledged, such payments when viewed through the profitability lens reveal too pressing an issue to be overlooked,” it said. In one out of two occasions that listed companies paid such levels of royalty, they did not pay dividends, or paid more royalty to related parties than dividend paid to other shareholders. The study asked whether companies that skip dividend payments bu...

[hfe_template id='11223'] [ad_1] Retail traders made a combined net loss of ₹1.81 lakh crore in futures and options trading in the three years to March 2024 and only 7.2% of individual traders made a profit during this period, a study done by markets regulator Securities and Exchange Board of India (Sebi) showed. The number of retail traders has almost doubled in two years from about 5.1 million in FY22 to about 9.6 million in FY24. Although they contributed about 30% in total turnover in FY24, they are a clear majority in number terms, as 99.8% of traders in the derivatives segment are individuals, Sebi said. The regulator has flagged concerns over the chaotic trading in index options and is likely to tighten rules for derivatives trading soon. It has proposed several changes including increasing the minimum contract size in index derivatives, a reduction in weekly index product offerings and making options trading costlier among other things to curb the heightened risk...

[hfe_template id='11223'] [ad_1] Aimed at promoting ease of doing business for non-convertible securities, market regulator Securities and Exchange Board of India (Sebi) on Friday released a consultation paper seeking feedback on proposals, including alignment of provision regarding approval and authentication of financial results for entities having listed non-convertible securities with that for equity listed entities. Under the proposed norms, the quarterly financial results submitted shall be approved by the board of directors. Further, the financial results submitted to the stock exchange shall be signed by the chairperson or managing director, or a whole-time director. In the absence of all of them, it should be signed by any other director of the listed entity who is duly authorised by the board of directors to sign the financial results. Under the current regulation, listed non-convertible securities requires quarterly results to be taken on record by the board o...

[hfe_template id='11223'] [ad_1] The 'silence' of many 'portfolio management service' (PMS) firms has raised the regulator's hackles in a runaway market. The Securities and Exchange Board of India (Sebi) is unable to reach out to a large number of PMS service providers who are not responding to queries, said a senior Sebi official during an interface with the PMS industry last week. Typically arms of brokerages and asset managers, PMS houses handle the money of wealthy investors with several Bollywood actors, cricketers, and senior professionals as well as government functionaries putting a slice of their wealth with these investment managers. ETMarkets.com There are 438 PMS firms registered with Sebi managing assets worth ₹7.5 lakh crore.Manoj Kumar, the Sebi executive director who addressed the members of the PMS industry body APMI, however, did not quantify the number of firms who remain incommunicado and are thus failing to meet the basic complia...