Street signs: Sebi's tougher rules for MIIs, mkts settle into neutral gear

Guarding the guardians: Sebi’s tougher playbook for MIIs

 

In a move to strengthen market infrastructure institutions (MIIs) — which include stock exchanges, clearing bodies, and depositories — the Securities and Exchange Board of India (Sebi) has outlined measures to enhance accountability for public interest directors (PIDs) and key officials, such as compliance officers. Sebi mandates that PIDs of MIIs meet separately at least once every six months to discuss issues like conflicts of interest that may not align with market interests or to review corrective actions, particularly concerning governance and cybersecurity. Compliance officers are now required to submit quarterly reports on non-compliance and investor grievances, while the chief risk officer must do so semi-annually. Additionally, MIIs must establish processes for disciplinary action against key officials and resolve whistle-blower complaints within 60 days, submitting reports on these actions. These changes will take effect on April 1, 2025.

 

Turning water into wealth: Enviro Infra IPO hits high marks

 

The grey market premium (GMP) for Enviro Infra Engineers, a water and wastewater management solutions company, has surged by 32 per cent above its issue price as its initial public offering (IPO) concludes on Tuesday. The GMP for recent IPOs has been relatively weak due to the selloff in the secondary market. Some issuers have deferred their IPOs, waiting for market turbulence to subside. However, Enviro Infra’s moderate valuations, double-digit net margins, and strong order book have drawn investor interest compared to its listed peers. The Rs 650 crore IPO is priced between Rs 140 and Rs 148 per share, consisting of a fresh issue of Rs 573 crore and an offer for sale of Rs 78 crore. The company specialises in designing, constructing, operating, and maintaining water and wastewater treatment plants for government entities. The IPO of NTPC Green Energy, which concluded on Friday, was subscribed 2.5 times.

 

The quiet before the climb? Markets settle into neutral gear

 

Although equity benchmarks ended their two-week losing streak last week, it was a turbulent period, exacerbated by escalating geopolitical tensions and the rout in Adani group stocks. Since the S&P BSE Sensex and the National Stock Exchange Nifty reached all-time highs in September, markets have faced huge selloffs, driven by foreign portfolio investor outflows and disappointment over weak corporate earnings for the 2024–25 September quarter. This week, no major market-moving triggers are expected. “We will likely open higher due to Friday’s positive close in the US markets. The Nifty may rise to 24,500, and we’ll need to see if there’s steam beyond that. A good support level could be 23,600,” said Deepak Jasani, head of retail research at HDFC Securities.