Street signs: Bandhan worries investors, brokers not on board, and more

Bandhan Bank worries investors 
 

The Reserve Bank of India’s (RBI's) decision to stop Bandhan Bank from opening new branches and freezing the remuneration of MD & CEO Chandra Shekhar Ghosh has rattled investors. They believe that the apex bank should have discussed with market regulator, the Securities and Exchange Board of India (Sebi), to come up with a solution instead of taking a harsh action at a time when there is nervousness anyway because of the IL&FS problem. “And now, we have a compliance issue with one of the better banks in India. A template needs to be set so that such issues can be smoothly managed by both regulators,” says a mutual fund CEO.

Joydeep Ghosh

Fund managers caught off guard 

The financial sector, which typically accounts for a large share of a fund manager's portfolio, has seen some unexpected changes recently. Besides the sharp spike in yields which have raised concerns over borrowing costs of non-banking financial companies (NBFCs), fund managers have been caught unawares by regulatory and government-led decisions in the case of certain banks. Experts say investment calls taken by fund managers didn't account for these changes. “The quantum of correction in shares like Yes Bank, Bank of Baroda and several NBFCs has caught us off guard. We have been blindsided by these recent developments,” said a fund manager.
 

Jash Kriplani

Brokers not on board 

The broking community has not yet braced itself for longer trading hours. Industry body Association of National Exchanges Members Of India (Anmi) recently asked its members in a survey on what they thought about Sebi’s proposal to extend derivatives market timings till midnight. Sources say 121 out of 122 brokers surveyed were not comfortable with the move. Anmi will soon submit the survey findings to stock exchanges and Sebi. The lack of market preparedness has delayed the extension, which was supposed to come into effect from October 1. 
 

Shrimi Choudhary