SEBI chief Sinha said credibility of primary markets is at stake as retail investors on many occasions are left clueless about their returns as scores of stocks are trading way below listing price
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Wednesday cautioned the credibility of primary markets is at stake as retail investors on many occasions are left clueless about their returns as scores of stocks are trading way below listing price, reports PTI.
It also said investment bankers need to introspect their role on the price discovery mechanism for these markets.
"The credibility of our markets is at stake. The i-bankers need to introspect whether their behaviour challenges the entire merit-based versus price discovery mechanism or not. We need some amount of sanity in pricing and IPO disclosures," SEBI Chairman UK Sinha told a summit of i-bankers here in west India.
Stating that many of the newly-listed stocks are trading below listing price, Sinha said: "There is something wrong if two-thirds of the issues between 2009 and 2012 are trading below market decline levels. Call auction data show that volatility on opening day have reduced considerably.
"SEBI has noticed in some IPOs that due diligence wasn't done properly. Assets mentioned were missing or weren't even mentioned," he said.
India Ratings and Research said there would be limited financial impact on NBFCs from the proposed revisions in asset classification, provisioning norms and higher tier-I capital ratio requirements
Mumbai: Non-banking Finance Companies (NBFCs) are likely to benefit from the proposed guidelines issued by the Reserve Bank of India (RBI) which focus on enhanced corporate governance, disclosure standards and tightened liquidity management requirements, reports PTI.
"Domestic non-banking finance companies (NBFCs) will benefit from the enhanced corporate governance and disclosures standards and tightened liquidity management requirements proposed recently by the Reserve Bank of India (RBI)," a report by India Ratings and Research said.
It also said that there would be limited financial impact on NBFCs from the proposed revisions in asset classification, provisioning norms and higher tier-I capital ratio requirements.
The RBI released the new draft guidelines for NBFCs based on the Usha Thorat Committee report recommendations on 12 December 2012.
According to the proposed guidelines, NBFCs have to recognise a loan as non-performing asset (NPA) if it is not serviced for 90 days from the present 180 days NPA norm.
The new guideline also proposes to implement 10% capital adequacy ratio (CAR) norm for most of the NBFCs.
Referring to the capital adequacy ratio, the report said, " We do not expect any significant impact on the operating performance of the requirement of a minimum Tier I capital ratio of 10% (current requirement of 7.5% for retail finance NBFCs)."
It also added that the transition of NBFCs to the 90-day NPA norm from the present 180 day from Q1 of FY16 would not have significant impact on profitability.
"The transition of NBFCs to the 90-day NPA norm from Q1FY16 (same as at banks) from a 180-day NPA norm is unlikely to have a significant impact on NBFCs' profitability in the medium term," the report said.
It, however, added that NPA ratios on a 90-day delinquent basis could nearly double as most of the major NBFCs and incremental provisioning expenses (including assuming the provision for standard assets at 0.40%, against the 0.25% mandatory) could reduce return on average assets (ROA) by around 5-40 basis points.
The rating agency also noted that the monitoring and collection systems and borrower behaviour are likely to adjust during the transition phase and the 90-day delinquencies are likely to reduce substantially by the proposed time of implementation.
UBS, the biggest in Switzerland, will pay more three times the amount of the settlement reached in June with Britain's Barclays, another one of the more than dozen banks investigated for trying to rig global interest rates
Zurich: Swiss banking giant UBS said it had agreed to pay about $1.5 billion to British, US and Swiss regulators to settle allegations it manipulated LIBOR interest rates, reports PTI.
The bank said it the settlement, equivalent to 1.2 billion euros, would likely push into a net loss of between $2.2- $2.7 billion, in the fourth quarter.
The LIBOR rate is a reference point for vast ranges of financial contracts around the world, and revelations that it had been rigged have damaged the reputation of the City of London financial centre.
"UBS agrees to pay approximately CHF 1.4 billion in fines and disgorgement to US, UK and Swiss authorities to resolve LIBOR-related investigations," the statement said.
The bank, the biggest in Switzerland, will pay more three times the amount of the settlement reached in June with Britain's Barclays, another one of the more than dozen banks investigated for trying to rig global interest rates.
As part of the one of the biggest fines ever slapped on a financial institution, the Swiss bank said it had agreed to pay $260 million in fines to the UK Financial Services Authority.
It will pay $64 million as disgorgement, or compensatory penalty, of estimated profits to the Swiss Financial Market Supervisory Authority (FINMA).
It also said it had agreed to payment schedules for a total of $1.2 billion to the US Department of Justice and the Commodity Futures Trading Commission (CFTC).
UBS was the first bank to reveal problems in the rate-setting process of the LIBOR, an acronym for London Interbank Offered Rate, which estimates the rates at which banks lend money to each other and also affects huge numbers of contracts around the world.
Other banks are also reportedly in advanced talks with regulators about settling allegations that they too manipulated their LIBOR information, including Royal Bank of Scotland and Deutsche Bank.