The Sebi committee’s order asks NSDL to review its systems, and pinpoint people responsible for the IPO scam-related lapses. Sebi too gets a slap on the wrist, told to play a more proactive role.
The Securities and Exchange Board of India today key decisions that will affect mutual funds: a transaction charge, more transparency, a single KYC-process and distributor regulation will debut in 2011-12.
Sebi has ushered change into India’s M&A landscape. Acquirers will find the going easier, and open offers may become less frequent. Minority shareholders should fret but there is something for them too.
Sebi’s fear that Standard Chartered’s IDR-holders may head for the exit has made it come out with an irrational rule barring redemptions, effectively killing the Indian Depositary Receipt market. The IDR fell by as much as 20% on this news.
Sebi has allowed domestic investors to hedge their exposure to India by taking positions in foreign equities, through index derivatives. Traders will have another avenue to make more money through speculation.
Even before differential voting rights became a trend, they are headed for a quiet burial. An amendment to the listing agreement will make them unattractive to both promoters and minority shareholders.
Will anchor investors bring stability to the pricing of IPOs or will issuers use their discretionary powers to curry favour? The move may be well-intentioned but is open to misuse.
Tata Motors is seeking to make use of JLR’s rising cash flows by leveraging its balance sheet, and refinance existing debt and potentially lower interest costs too.
State Bank of India’s reaction to the credit policy was swift, in a move which will see short term deposit rates spike and all loans will become expensive.
