Street signs: Big FPI makes India entry, PC Jeweller shares crash, and more

Big FPI makes India entry

Canada-based insurer Sun Life Financial has registered as a foreign portfolio investor (FPI) in India after the market regulator tightened the participatory note (p-note) norms. Till now, the fund used p-notes for investing in India, but has now decided to take the direct route. Sun Life Financial is a big institutional investor in the US, Canada and European markets. Sources said the fund is planning to deploy around $2-3 billion in the Indian markets over the next two years. “Sun Life has registered as category-II FPI in India and is expected to invest in the Nifty universe for now. Such investors are a plus for Indian markets as they have a long-term investment mandate,” said a source privy to the development.

Pavan Burugula

Sebi caps foreign trips of employees

The Securities and Exchange Board of India (Sebi) has placed restrictions on employees travelling abroad. According to sources, the capital market regulator has made changes in its human resources policy, restricting foreign trips of employees to four times a year. The move is to help the regulator save costs. Typically, such foreign tours depend on the level of the employee within Sebi. Sources say current foreign travel frequency for some of the employees was much higher. 

Shrimi Choudhary

Funds hit by PC Jeweller crash 

Several institutional investors are in panic mode after the sharp correction in the shares of PC Jeweller, which tanked as much as 60 per cent on Friday before recouping some losses to end 24 per cent down. Life Insurance Corporation of India and Fidelity hold meaningful stake in the company while equity schemes of domestic mutual funds such as Edelweiss and JM Financial too had holdings in the company as on December 2017. The sell-off in PC Jeweller was on concerns that the company is linked to Vakrangee, which has come under regulatory scanner. Shares of Vakrangee crashed 50 per cent last week. "The company has clarified that it has no business connections with Vakrangee. This has provided some comfort. However, we are monitoring the developments," said an institutional investor.

Samie Modak