Bonds, Currencies & Commodities
Inflation Index Bonds launched by RBI

RBI in consultation with Government of India, has decided to launch Inflation Indexed National Savings Securities-Cumulative (IINSS-C) for retail investors in the second half of December 2013

Inflation Indexed National Savings Securities-Cumulative (IINSS-C) securities  are being launched by the Reserve Bank of India (RBI), in the backdrop of announcement made in the Union Budget 2013-14 to introduce instruments, which will protect savings from inflation. The distribution/sale of IINSS-C would be through banks. Interest rate on these securities would be linked to final combined Consumer Price Index [CPI (Base:
2010=100)]. Interest rate would comprise two parts - fixed rate (1.5%) and inflation rate based on CPI, and the same will be compounded in the principal on half-yearly basis and paid at the time of maturity.
 

Early redemptions will be allowed after one year from the date of issue for senior citizens (i.e. above 65 years of age) and 3 years for all others, subject to penalty charges at the rate of 50% of the last coupon payable for early redemption. Early redemptions, however, will be made only on coupon dates.
 

The date of issuance for subscription would be announced shortly. The issuance of non-cumulative Inflation Indexed National Saving Securities for retail investors will be examined in due course.
 

Here are the salient features of Inflation Indexed National Savings Securities-Cumulative (IINSS-C) securities:
 

  • Face value of one security - Rs5,000 and minimum investment - Rs5,000

 

  • Maximum investment - Rs5,00,000 per applicant per annum

 

  • Rate of interest (per annum) –real interest rate (fixed rate) + inflation rate

 

  • Real interest rate – 1.5% per annum and the same will act as floor

 

  • Compounding - Half-yearly

 

Tenor - 10 years

User

Tarun Tejpal gets interim bail till 10am Saturday

The Sessions Court in Goa granted the Tehelka editor interim relief against arrest till 10am on Saturday

A Sessions Court in Goa on Friday granted interim bail against arrest till 10am Saturday to Tarun Tejpal, the editor of Tehelka, who is accused of sexually assaulting a woman colleague in the state.

 

When the Court resumes tomorrow, the public prosecutor would commence his arguement against the anticipatory bail for Tejpal.

 

Earlier, Goa police took the Tehalka editor into custody as soon as he landed at Dabolim Airport in Panaji from New Delhi.

 

Tejpal had stepped down as Tehelka Editor-in-Chief for six months in the wake of the sexual assault case against him.

User

SEBI seeks to regulate research analysts

SEBI feels that the research reports prepared by analysts as such might not be violating any rules, but they might be used by vested interests for stock market manipulations

"Advice from investment analysts is many times prone to conflicts of interest that may prevent them from offering independent and unbiased opinions. Since the prime objective is to protect investors and enhance confidence in the market, it is a major concern of regulatory authorities to identify and deal with conflicts of interest arising from the production and dissemination of research reports," said the market regulator Securities and Exchange Board of India (SEBI) in a consultation paper on the regulation of research analysts it has put out for discussion and for public comments. Any market participant or interested party can send their comments to SEBI before 21 December 2013.

 

Research analysts attached with brokerage firms, fund houses, investment banks and other market intermediaries are currently governed by SEBI regulations, but there are no comprehensive rules that could also cover third-party or independent analysts and research reports.

 

In a board meeting in 2011, SEBI had discussed the need to have a comprehensive set of regulations for research analysts.

 

Among the proposed measures, the analysts could be asked to make extensive disclosures regarding their incentive structure, shareholding pattern, market dealings, and various direct and indirect business interests.

 

Various registered market intermediaries are already required to put in place certain ‘Chinese Walls’ to avoid any conflict of interest arising out of the reports published by their equity research units.

 

The new rules could also prescribe mechanisms to ensure that the research analysts’ trading activities or financial interests do not prejudice their reports.

 

The comments / suggestions on this paper may be emailed to T Venkateshwarlu, Assistant General Manager ([email protected]) or may be sent to the following address, latest by 21 December 2013 in the following format:

 

Sr. No. 

Name

Pertains to which regulation/sub-regulation

Proposed/

suggested

changes

 

Rationale

 

 

 

 

 

 

 

 

 

 

 

Letter(s) can be addressed to:

 

Ms. Barnali Mukherjee

General Manager,

Investment Management Department - Division of Funds- 1,

Securities and Exchange Board of India,

SEBI Bhavan, Plot No. C4-A, "G" Block,

Bandra Kurla Complex, Bandra (East),

Mumbai 400 051 (India)

 

Here is the consultation paper released by SEBI

User

COMMENTS

Prakasam S

3 years ago

The regulations are heavily loaded against small, independent analysts. It is wrong to presume that every single independent analyst is acting with vested interests.

The underlying principle in any investment decision should be "let the buyer beware". Just because analyst XYZ says "buy stock ABC", should investors blindly follow the advice, without doing their own bit of research? Stocks can also move down after a buy recommendation, due to factors which cannot be predicted even with reasonable acumen and expertise, such as management issues, or frauds being uncovered, or regulatory changes, etc. Should the analyst be held accountable for such cases too?

Sebi seeks to even control what the "analyst" says in the media! Again, the presumption is that the analyst is trying to "push" certain stocks with a vested interest. I believe such constraints should only apply to small cap stocks with low volumes, with say market cap less than Rs100 crore, and penny stocks. If an analyst voices his views on index stocks, or large-cap stocks with good liquidity, his intentions simply cannot be suspected, since a single analyst can never cause the price of such stocks to go up or down dramatically.

Research reports do not usually sell for cash. Why should an analyst, who is not selling his research for cash, have to pay the hefty registration and enrollment fees of Rs 1.50 lakh, when his income from selling research is next to zero?

Nilesh KAMERKAR

3 years ago

Investing is a craft, why insist on treating it like a science?

If the objective is to protect investors, then would it not be better to regulate investor behavior in the first place.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)