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Street Signs: Sebi move to defer loan default disclosure may stump traders

Sebi's breather to India Inc could trigger a positive reaction, say market players

Shrimi Choudhary Ashley Coutinho & Samie Modak 


With the Securities and Exchange Board of India (Sebi) deferring the implementation of a new rule mandating India Inc to disclose any loan default within 24 hours two days before its implementation, many traders are likely to be caught on the wrong foot. Taking advantage of the already weak sentiment, traders had built short positions with the view that the new rule could impact several negatively. However, Sebi’s breather to India Inc could trigger a positive reaction, say market players. Repayment defaults are common but never make it to the public domain as companies make sure they don’t lose their ‘standard asset’ tag by making payments just before the end of the 90-day period after which an asset is classified as non-performing.

Shrimi Choudhary
to remain under pressure
The Bank Nifty shed about 1,100 points from the highs it made during the September series, ending the series 1.3 per cent lower over the previous expiry. The expiry day saw a sizeable number of shorts getting rolled over and less aggressive rolls on the buy side, indicating sustained pressure on banking Public sector banks could come under further pressure, say experts and the volatility is likely to continue in this series as well. The index faces resistance at 24,350-24,500 and a return to stability hinges on the index crossing these levels. On the downside the index could test 23,500 levels.
Ashley Coutinho
a hit in grey market
The weakness in the market notwithstanding, of Godrej Agrovet, a company focused on agri business, are commanding a 25 per cent premium in the grey market.

In the grey market, its are trading Rs  110 higher than the issue price of Rs 450-460. Meanwhile, of Mas Financial Services are changing hands at a premium of just five per cent. Both and Mas Financial public issues open this week.
Samie Modak

First Published: Tue, October 03 2017. 02:49 IST