Capital Markets

Sebi receives suggestions from stakeholders on F&O trading discussion paper

Capital markets regulator Sebi has received suggestions from around 6,000 stakeholders on the consultation paper floated on Futures & Options (F&O) trading, its chief Madhabi Puri Buch said on Thursday. In its consultation paper floated in July, the regulator proposed seven measures, including increasing minimum contract size and upfront collection of option premiums, intra-day monitoring of position limits, rationalisation of strike prices, removal of calendar spread benefit on expiry day and increase in near contract expiry margin. These measures are aimed at enhancing investor protection and promoting market stability in derivative markets. Speaking at Global Fintech Fest 2024, Buch said that the regulator has received comments from around 6,000 stakeholders on the consultation paper on the F&O segment. Also, technology has validated faster processing of such enormous amounts of feedback. Additionally, she said that the Securities and Exchange Board of India (Sebi) is ..

'SMEs turn to capital markets for funding, raise Rs 11,000 crore'

Small and Medium Enterprises (SMEs) are increasingly turning to the capital markets for funding, with 780 SMEs listed on the NSE and BSE as of June 2024, a senior official said on Wednesday, adding that these companies have raised approximately Rs 11,000 crore. The combined market capitalisation of these SMEs now exceeds Rs 1.6 lakh-crore, Shekhar Chaudhary, director of the financial markets division at the department of economic affairs, said. Speaking at the 10th edition of the CII (East) Capital Markets Conclave, Chaudhary emphasised the vital role capital markets play in India's economic growth and development. A report on SME Initial Public Offerings (IPOs) was released during the event. Experts discussed how capital markets could drive India's economic future by empowering SMEs to make significant contributions to the country's GDP, a statement said. Chaudhary also noted that in the social enterprise sector, nine NGOs have raised Rs 12 crore through a social exchange platform

Sebi to release paper on easing norms for investment advisor registration

Capital markets regulator Sebi will early next week come out with a consultation paper on making it easier to become a registered investment advisor, a senior official said on Friday. The move has come amid Sebi efforts to contain the activities of unregulated 'fin-influencers'. The Sebi board recently approved a series of measures on restricting the play of fin-influencers, which focus mainly on policing the segment through their tie ups with the entities regulated by Sebi. Also, senior Sebi officials in the recent past have said that challenges to get registered as an investment advisor are among the reasons for growth in the problematic fin-influencers segment. The capital markets regulator will come out with a consultation paper which will have proposals on relaxing the registration requirements for investment advisors and research analysts by Monday or Tuesday, its whole-time member Kamlesh Varshney said addressing Ficci's Capam event here. The registered investment advisors h

Sebi clarifies on reports pertaining T+0 system mandatory for all

Capital markets regulator Sebi on Wednesday clarified on media reports pertaining to making the T+0 system mandatory for all. "This has been erroneously reported in a section of the press as Sebi bats for making the T+0 system mandatory for all," the regulator said in a statement. In a statement issued, the regulator clarified that its chief Madhabi Puri Buch was discussing the Application Supported by Blocked Amount (ASBA) facility, not the T+0 settlement cycle. The ASBA facility ensures that the investor's fund gets moved only when the allotment is completed. At an NSE event on Tuesday, the Sebi chairperson released a report on "Indian Capital Markets: Transformative Shifts Achieved through technology and reforms". The report referred to potential annual benefit of Rs 2,800 crore if ASBA for the secondary market were to be adopted fully by retail investors. "In this context, a question was posed to the Sebi chairperson on the ASBA facility being optional due to which retail ...

India planning to reduce paper work for foreign investors buying govt debt

The Securities and Exchange Board of India is discussing with the Reserve Bank of India to make the registration and maintenance process easier

Mega deals in India, IPOs in Hong Kong to make Asia an equity deals hotspot

India's total ECM deals jumped 137 per cent in the first half of this year from the same period of last year, with $28.5 billion raised, according to LSEG data

Sebi invites application to hire executive director on 3-year contract

Capital markets watchdog Sebi has started the process to recruit an executive director and invited applications to fill the vacancy. The Securities and Exchange Board of India (Sebi) has invited applications for the post until July 18. The appointment of executive director will be on a deputation or contractual basis, for a period of three years, the regulator said in a public notice issued last week. The candidate applying for the position is required to have at least 20 years of experience in dealing with problems related to the securities market or special knowledge or experience of law, investigation, finance, economics and accountancy, among others. At present, Sebi has 10 executive directors -- S V Muralidhar Rao, G.P. Garg, Pramod Rao, Biranchi Narayan Sahoo, B Rajendran, Ruchi Chojer, Manoj Kumar, Govindayapalli Ram Mohan Rao, G Babita Rayudu and V S Sundaresan. Earlier this month, Sebi initiated the process to hire 49 officers in different departments this year, a move

Sebi to auction 19 properties of KBCL India to recover investors' money

Capital markets regulator Sebi has lined up 19 properties of KBCL India Ltd for auction on July 16 to recover money illegally collected from investors. The move is part of Sebi's effort to recover investors' money. The regulator has initiated the process for the sale of assets after KBCL India Ltd, its directors Rakesh Kumar, Vishvnath Pratap Singh and Shashi Kant Mishra failed to refund the investors' money. The properties include land parcels and a plot in Uttar Pradesh and they will be auctioned at a reserve price of Rs 3.54 crore, according to a notice issued by the Securities and Exchange Board of India (Sebi) on Wednesday. Quikr Realty has been engaged by Sebi to assist it in the sale of properties, while C1 India has been appointed as the e-auction service provider. As per the notice, the regulator said bidders should make their own independent enquiries regarding the encumbrances, litigations, attachments and acquisition of liabilities of the property put on auction, prior

Sebi junks rule to freeze demat a/cs, eases MF folio norm for investors

Capital markets regulator Sebi on Monday eased rules for existing investors with abolishing the norm of freezing demat accounts and mutual fund folios in case of failure to provide a 'choice of nomination'. Additionally, investors holding securities in physical form would be eligible for receipt of any payment, including dividend, interest or redemption payment as well as to lodge grievances or avail any service request from the RTA (Registrars to an Issue and Share Transfer Agents) even if they did not submit 'choice of nomination'. Earlier, the regulator set June 30, 2024, as the deadline for all existing individual mutual fund holders to nominate or opt out of nomination. Failure to comply with the rule could have led to the freezing of their accounts for withdrawals. Based on representations received from the market participants, for ease of compliance and investor convenience, Sebi has decided that for existing investors or unitholders, non-submission of 'choice of nomination'

Sebi forms panel to review ownership, economic structure of clearing corps

Capital markets regulator Sebi on Tuesday said it has set up a committee to review the ownership and economic structure of clearing corporations and suggest measures to ensure that clearing corporations function as resilient, independent, and neutral risk managers. The ad-hoc committee would be chaired by Usha Thorat, former Deputy Governor of the Reserve Bank of India (RBI). The decision has been taken in the wake of the substantial growth of Indian securities markets in recent years and the importance of clearing corporations as central risk management institutions. In a statement, Sebi said that the committee has been entrusted with the task of reviewing ownership structure as well as finances of clearing corporations. With regards to ownership structure, the committee will examine the feasibility, and broadening the list of eligible investors, who are allowed to take shareholding in a clearing corporation and suggest categories of investors who can acquire stakes in such ...

Infosys partners with Germany's Commerzbank to transform trading ecosystem

Indian IT major Infosys on Tuesday said it has collaborated with Commerzbank, a German bank, and Murex, which is into trading, risk management and processing solutions for capital markets, on a successful "go-live" or operationalisation of a consolidated, unified trading platform. The joint project has enabled Commerzbank to consolidate FX, FX derivatives, equity, and commodities onto Murex's integrated MX.3 platform, simplifying its operations, cutting costs, speeding up time to market, and preparing for future challenges. "Infosys today announced that it collaborated with Commerzbank... and Murex... on a successful go-live of a consolidated, unified trading platform that streamlines the bank's business processes and IT landscape," according to a release. In effect, the consolidation on a unified Murex platform enables the bank to accelerate its digital transformation journey by driving system efficiency and cost-effectiveness. Within the project, Infosys supported Commerzbank in

Unsecured loans, capital market funding can bring grief for NBFCs: RBI DG

Over-reliance on unsecured lending and capital market funding can "bring grief" to non-bank lenders in the long run, Reserve Bank Deputy Governor Swaminathan J has cautioned. In an address to heads of assurance functions of non-bank finance companies at an RBI-organised conference on Wednesday, Swaminathan also warned against over-reliance on algorithms for taking lending calls. He also went public with the RBI's disappointment at the tendency of "misguided or intelligent interpretation" of rules to "circumvent regulations" and termed this as a "significant threat" to the financial system's integrity. The career commercial banker-tuned-regulator also flagged the risk limits for certain products or segments like unsecured lending are "way too high" to be sustainable in the long run. "There appears to be a fancy among most NBFCs to do more of the same thing, such as retail unsecured lending, top up loans or capital market funding. Over reliance on such products may bring grief at som

Investments through P-note surge to near 6-yr high at Rs 1.5 trillion

Investments through participatory notes in the Indian capital markets reached Rs 1.5 lakh crore at the end of February, making it the highest-level in nearly six years, driven by a strong performance of the domestic economy. The latest data includes the value of P-note investments in Indian equity, debt, and hybrid securities. Participatory notes (P-notes) are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process. According to the latest data from markets regulator Sebi, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 1,49,517 crore at the end of February compared to Rs 1,43,011 crore at the end of January. The amount has reached the highest-level since June 2017, when investment through the route stood at Rs 1.65 lakh crore, data with the Securities and ...

RBI revises banks' capital market exposure norms for T+1 settlement

The limit of 30 per cent for risk is based on the assumption of 20 per cent downward price movement of the equities on T+1

Japan's equity renaissance

The Japan story is still in its early days. But the lesson it holds is that companies, regulators, and the broader market micro-system all need to continuously evolve

Paytm Payments Bank's Mukund Barsagade joins Lendingkart as Group CFO

Mukund Barsagade has previously worked with organisations such as GE Capital, Experian, Transamerica, Utkarsh Small Finance Bank, and Fino Payments Bank in various finance leadership roles

India Inc's capex frontier: When will companies start spending big time?

The economy is growing and capital markets are buoyant. A look into why companies aren't spending enough

Participatory note investment drop to Rs 1.43 trn on high valuations

Overall, the investment through the route saw an upward trend in the last one year with the investment rising from Rs 91,469 crore in January 2023 to Rs 1,49,447 crore in December 2023

Brokers should be cautious against manipulations in stock mkt: Sebi member

Sebi Whole Time Member Kamlesh Chandra Varshney on Saturday cautioned against manipulations in the capital market and urged brokers to keep an eye and prevent such instances. Clamping down on misdoings, the markets watchdog has been taking action against various entities for manipulations, including front running activities. Emphasising the importance of investor trust, Varshney said that if there is no trust of investors, "everything will fail". Manipulations are going on and Sebi cannot intervene in all of them. Some brokers are involved and the broker community should keep an eye as "bad elements can come in the system", he said. He was speaking at the 13th international convention of the Association of National Exchanges Members of India (ANMI) in the national capital. The Whole Time Member of the Securities and Exchange Board of India (Sebi) also said that entities should look at technological developments to improve efficiency as well as business.

Sebi mulls revamping nominations framework to reduce unclaimed assets

Capital markets regulator Sebi on Friday proposed revamping the nominations framework in a bid to reduce unclaimed assets in the securities market as well as smoothen the process for claiming the assets by surviving successors of the deceased investors. In its consultation paper, the regulator proposed revisions to nomination facilities for securities such as shares, bonds, units of REITs (Real Estate Investment Trusts), InvITs (Infrastructure Investment Trusts), AIFs (Alternative Investment Funds) and other securities held in dematerialized form and for units of mutual fund schemes that are expressed in a statement of account. This will address the objective of providing convenience to investors and uniformity in the procedures to institutions. Such revamped nomination facilities will operate without affecting the prevalent systems of law governing transmission and succession -- rule of survivorship in case of joint holdings, when a person has died leaving a Will; and when a perso