Investor Issues
No need to pay deposit for investors seeking arbitration reference

Stock market investors seeking arbitration reference for claims of up to Rs10 lakh would not be required to make any deposits with the stock exchanges and expenses on such applications would be borne by the bourses

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has said investors seeking arbitration reference for claims up to Rs10 lakh would not be required to make any deposits with the stock exchanges and expenses on such applications would be borne by the bourses, reports PTI.

 

Arbitration process generally refers to resolving disputes through an out of court settlement.

 

"A client, who has claim/counter claim up to Rs10 lakh and files arbitration reference, shall be exempt from the deposit. Expenses thus arising with regard to such applications shall be borne by the stock exchanges," SEBI said in a circular.

 

Prior to this change, investors who were resorting to arbitration reference for claims up to Rs10 lakh were exempted from making any deposit only if they filed the application within six months.

 

The six-month period was computed from the end of the quarter during which the disputed transaction(s) were executed or settled. The period excludes time taken by the Investors Grievances Redressal Committee of the stock exchange to resolve the dispute as well as the time taken by the member to attempt the resolution, among others.

 

SEBI has asked stock exchanges to immediately make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the new guideline.

 

According to the latest circular, stock exchanges are required to bring the change to the notice of its members and also disseminate the same through their websites.

 

The market regulator has asked the bourses to communicate to it, "the status of implementation of the provisions of this circular in the Monthly Development Reports".

 

Modifications have been made to the SEBI circular dated 31st August 2010.

 

The arbitration committees on the BSE and the NSE help settle disputes between a client and broker, or disputes among brokers.

User

Suzlon moving CDR cell to give lenders time to sort issues: SBI

Noting that Suzlon case is much different from that of Kingfisher, SBI chairman said the wind-turbine maker's is a much different case as it is a running company and has operations globally

Gurgaon: State Bank of India (SBI), the major lender for debt-laden Suzlon, has said the wind turbine maker's move to approach corporate debt restructuring (CDR) cell would give more time for lenders to sort out the issues, reports PTI.

 

Loss-making Suzlon Group last month said it has started discussions with lenders for restructuring debt, including a two-year moratorium on repayment of term loans.

 

"I think reference to the CDR cell gives the bankers more time to iron out these issues and Suzlon's financials are a little more complex," SBI Chairman Pratip Chaudhuri told reporters on the sidelines of the World Economic Forum on India summit.

 

Suzlon has a debt burden of over Rs13,000 crore including foreign currency convertible bonds (FCCBs) obligations. A few weeks back, bondholders had rejected its proposal seeking four-month extension to repay overseas debt worth about $221 million.

 

Noting that Suzlon case is much different from that of Kingfisher, Chaudhuri said the former "is a much different case, it is a running company and has operations globally".

 

"Whatever little I understand is that they (Suzlon) took lot of short term debt...," he added.

 

SBI is estimated to have an exposure of about Rs3,500 crore to Suzlon.

 

Talking about Suzlon, he said that its business model is such that "when you build a wind energy farm, the payment would come after a long period of time of 15-20 years, which they financed out of 3-5 years, so it is more a mismatch than I would say an insolvency issue".

 

According to Chaudhuri, SBI is quite confident about Suzlon's technological capabilities while recognising the challenging global environment.

 

"So, how the company manages the technological issues with the financing issues, that would need more in depth discussions," he said.

 

Last month, SBI had suggested merger of Suzlon's German arm REpower with the group to improve profitability.

 

"They (Suzlon) have global subsidiaries (but) to what extent those global subsidiaries can be brought in together, to what extent you can use the surplus cash lying in one subsidiary to fund the another... so those are some of the issues," he noted.

User

State Bank of India may reduce lending rate in next 2-3 weeks

SBI last reduced its base rate in September, and its chairman expect the bank's asset liability committee to decide on reducing lending rates over next two-three weeks

Gurgaon: State Bank of India (SBI) has indicated it could reduce lending rates in the next two-three weeks to boost credit growth, reports PTI.

 

"We had an asset liability committee (ALCO) meeting and there we did not cut the rates, but I am not ruling that out (rate cut). It could happen in the next two to three weeks," SBI Chairman Pratip Chaudhuri told reporters on the sidelines of World Economic Forum on India summit.

 

"Our rates are the best in the industry today, particularly from consumer finance, home and auto," he added.

 

SBI last reduced the base rate or the minimum lending rate in September this year. The base rate of SBI is presently pegged at 9.75%.

 

Chaudhuri emphasised that there has been a strong co- relation between the reduction in interest rates and rise in demand for advances.

 

"We will see how the loan growth picks up. We are seeing a very strong co-relation as you drop the rates, the loan demand picks up very strongly," he said, adding that he would not be surprised if the home loan segment picked up by over 30% in the current fiscal.

 

Last month, RBI in its half yearly review of monetary policy left the key interest rate unchanged but reduced cash reserve ratio by 0.25% to infuse additional liquidity that will inject Rs17,500 crore into the financial system.

 

Driven by huge inflow of deposits, SBI is currently having surplus liquidity of Rs60,000-Rs70,000 crore.

User

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)