TMS Ep70: Zee-Sony merger, market correction, crypto, securitisation

Zee Entertainment and Sony Pictures have finalised their merger after 90 days of negotiations. This deal is expected to change the country’s entertainment landscape. The pact is seen as complementary to both the groups. But, more importantly, it allows Zee founder Subhash Chandra to retain his family’s hold over the company. We'll see how the future will unfold for the Chandra family as they still address investors’ concerns over corporate governance issues.

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Soon after the news of merger came, the stock of Zee entertainment soared 2.58 per cent before taking a plunge. It settled a tad below its previous close. Half of the companies listed in the past two months are trading below their issue prices now. These include the likes of RateGain Travel and Technologies, Star Health and Allied Insurance, Paytm, and Policybazaar. Besides, recently listed companies, especially from the digital space, have tumbled nearly 50% from their recent highs. Yet, market watchers don’t see them as value buys just yet.  

Just like the IPOs, investors should also tread with caution while purchasing cryptocurrencies. If global investors are to be believed, India emerged as the fastest-growing crypto market in the world this year. The sudden rush of huge money and RBI’s tough stance against the digital currency have put the government in a fix. A Bill to regulate it remained a work in progress even as the winter session of Parliament was adjourned sine die yesterday. So, what is puzzling the government? And overall, how was the year 2021 for cryptos? 

Even as it maintained a tough stance against cryptocurrencies, the Reserve Bank of India ushered in several reforms across sectors this year. Among them was changing the norms for securitisation of assets like loans. The minimum holding period before an asset is securitised was reduced from 12 months to six months. This is expected to boost volumes in the space. But what exactly is securitisation? We have an explainer for you and more in this episode of the podcast.