Market Liquidity

Market regulator Sebi is examining position limits for non-agricultural contracts to improve liquidity and depth without weakening risk controls, its chairman Tuhin Kanta Pandey said on Saturday. Speaking about reforms in the commodity derivatives market, Pandey said the market design should allow contracts to gain scale. In some agricultural commodities, physical settlement from the outset can impede market development, and a phased approach could allow contracts to mature before physical settlement becomes mandatory. He said Sebi has completed consultations on the matter and guidelines will follow. The regulator is also working to reduce structural friction in commodity markets, including engaging with stakeholders on GST-related issues affecting participants who give or receive commodities through exchange platforms. Pandey said technology should serve the specific needs of commodity markets, which include producers, commercial users, farmers, processors and physical ...

Broker groups seek a separate framework for liquidity providers, warning RBI's new collateral rules could reduce market depth and raise trading costs

The regulator has proposed higher client-level position limits and revised penalties for breaches to improve liquidity and deepen agricultural commodity markets

The revelations in this recent case should lead to a reassessment of the foundations of India's financial markets

The finance ministry has asked public sector banks (PSBs) to look at monetising their investment in subsidiaries by listing them at bourses after further scaling up operations so that they realise good return. There are about 15 subsidiaries or joint ventures of PSBs lined up for initial public offering or divestment in medium to long term, sources said. Wherever required banks should invest funds to scale up operations of their subsidiaries or joint ventures, sources said, adding, banks can look at unlocking value at an opportune time. As a precursor to monetisation, sources said, banks should improve governance, professional decision-making and bring in greater operational efficiency in their subsidiaries. For example, the country's biggest lender State Bank of India may look at listing SBI General Insurance and SBI Payment Services in the future after they scale up their operations. SBI General Insurance Company Ltd, incorporated on February 24, 2009, earned a profit of Rs 509

Analysts believe a lower tick size can bolster price discovery and market efficiency, rendering trading more appealing for both retail investors and traders.

Canara Bank on Wednesday said it is planning split of the equity shares of the state-owned bank to boost the stock's liquidity. The decision in this regard will be taken by the bank's Board of Directors in a meeting, which is scheduled on February 26, Canara Bank said in a regulatory filing. The meeting's agenda is "to seek in principle approval from the board of directors for sub-division/split of the equity shares of the bank, subject to prior approval of Reserve Bank of India (RBI) and other statutory/regulatory/Government of India approvals, as may be required," it said. Shares of the bank were trading 4.16 per cent higher at Rs 542.95 per unit on the BSE.

The company which already has a strong market share in the state aims to set up a multi-category factory

Banks earn less for keeping money in SDF, at 6.25 per cent, while call money rates hover around 6.70 per cent

Some market participants believe that it will have little impact on the bond market as it is only applicable for a short period of time

The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs

BNP Paribas said it has a cautious stance on the Indian markets amid lack of positive catalyst for further earnings upgrades amid slowing global demand, lofty valuations and a slowdown in retail flows

The RBI's average daily absorption of excess liquidity was at Rs 3.8 trillion during June-July against Rs 5.5 trillion in May and Rs 7.4 trillion a month ago

Bameta is a fund manager and an economist with Aditya Birla Sun Life Asset Management Company (AMC) and manages the Aditya Birla Sun Life Income Fund

The stocks witnessed their biggest intra-day fall since April 12, 2021, and also their biggest weekly fall since January 29, 2021

The move is part of Sebi's effort to improve the efficiency of the use of the margin capital by market participants, the regulator said in a circular

Existing investors need to scrutinise portfolios carefully, new ones should take expert help

For the sake of context, the financial crisis of 2008 had seen the S&P 500 fall by more than 50 per cent from its peak

'The demand is that all EMI due dates must be automatically deferred,' he said

India trades at 77 per cent from a market cap-to-GDP perspective which is its long-term average, and not expensive, says Shiv Sehgal, deputy CEO, Edelweiss Global Investment Advisors