Economy
Nomura launches RBI Policy Signal Index
Nomura's NRPSI sees the RBI delivering a final 25bp rate cut in its post-budget policy meeting in April 2016. However, an earlier inter-meeting cut cannot be ruled out
 
Nomura has launched a new index called Nomura RBI Policy Signal Index (NRPSI), which it says quantifies the relative probability of monetary policy easing versus tightening using a range of macroeconomic indicators such as growth, inflation, financial and external parameters. 
 
According to Nomura, the NRPSI can signal both the direction of monetary policy and the potential for a larger-than-normal rate action. It says, "We find that, in addition to growth and inflation, the Fed funds rate, oil prices, global growth and exchange rates are significant drivers of the RBI’s policy decisions."
 
"Currently, the NRPSI is predicting more easing, which is consistent with the RBI’s accommodative policy stance. In our baseline, we expect the RBI to deliver a final 25bp rate cut in its post-budget policy meeting in April 2016. However, an earlier inter-meeting cut cannot be ruled out," Nomura added.
 
 
Nomura says the NRPSI has three advantages over typical Taylor-rule type estimates, which suffer from drawbacks such as real-time assessment of the neutral real rate and potential growth.
 
"First, since the NRPSI is based on the observed responses of the RBI to changing macro dynamics, it does not require any express assumptions on the real rate or other factors. Second, the NRPSI is useful in measuring the net direction of policy change (accommodative, neutral or contractionary) despite contrasting signals from macro data (e.g., weak growth but a high current account deficit); and third, it can be used to gauge the potential for a larger-than-normal (>25 basis point) policy action," it added.
 

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COMMENTS

MG Warrier

10 months ago

Interesting INDEX.Those who are research-oriented can think of indexes for the several variables, Nomura says will influence RBI decision. There could be indexes for the 'strength' of GOI-RBI relationship and for the amenability of monetary policy to expectations of finance ministry from time to time.

Dhirubhai Ambani, Rajinikanth, Sri Sri Ravi Shankar among Padma awardees this year
The list comprises of 10 Padma Vibhushan, 19 Padma Bhushan and 83 Padma Shri Awardees
 
Dhirubhai Ambani, founder of Reliance Industries, Superstar Rajinikanth, Art of Living founder Sri Sri Ravi Shankar, actor Anupan Kher, former CAG Vinod Rai and Robert Blackwill, former US Ambassador to India are among the 112 persons chosen for the Padma awards for 2016. 
 
Dhirubhai Ambani, Rajinikanth, Sri Sri Ravi Shankar and Ramoji Rao, the media baron from South would receive Padma Vibhushan, the second-highest civilian award. The list comprises of 10 Padma Vibhushan, 19 Padma Bhushan and 83 Padma Shri Awardees. Around 19 of the awardees are women and the list also includes 10 persons from the category of foreigners, non-resident Indians (NRIs), persons of Indian origin (PIOs) (include one posthumous) and four Posthumous awardees.
 
Jammu and Kashmir (J&K)'s former Governor Jagmohan, DRDO's former chief VK Aatre, cancer specialist and chairperson of Adyar Cancer Institute Dr V Shanta, Bharatnatyam and Kuchipudi dancer Yamini Krishnamurthi, classical vocalist Girija Devi and Indian-American economist Avinash Dixit have also been named for Padma Vibhushan for this year's Republic Day celebrations.
 
Sports star Sania Mirza and Saina Nehwal, industrialist Pallonji Shapoorji Mistry, Maruti Suzuki chairman RC Bhargava, architect Hafeez Contractor, Bennett, Coleman & Co's chairperson Indu Jain, spiritual leaders late Swami Dayanand Saraswati, Swami Tejomayananda are among the 19 eminent people chosen for Padma Bhushan.
 
About 841 personnel have been awarded police medals on the occasion of the Republic Day this year.  President’s Police Medals for Gallantry (PPMG) have been awarded to three, Police Medals for Gallantry (PMG) to 121, President’s Police Medals for Distinguished Service to 89 and Police Medal for Meritorious Service to 628 personnel.
 
The President also approved conferment of Jeevan Raksha Padak Series of Awards – 2015 on 50 persons, which includes Sarvottam Jeevan Raksha Padak to three, Uttam Jeevan Raksha Padak to nine and Jeevan Raksha Padak to 38 persons. Nine awards are posthumous.
 
Jeevan Raksha Padak series of awards are given to a person for meritorious act of humane nature in saving the life of a person.
 
Bollywood actors Anupam Kher and Ajay Devgn on Monday welcomed the reported government decision to honour them with a Padma Bhushan and Padma Shri respectively. Megastar Rajinikanth's daughter shared her joy on the award of a Padma Vibhushan for her father.
 
"Proud daughter!!! Appa is now Padma Vibhushan Shri Rajinikanth," Soundarya, one of Rajinikanth's two daughters, tweeted.
 
Veteran actor Anupam Kher tweeted: "Happy, humbled and honoured to share that I have been awarded the Padma Bhushan. Greatest news of my life, JaiHind."
 
Actor-filmmaker Ajay Devgn, who is in Bulgaria to shoot his directorial "Shivaay", said: "I feel deeply humbled yet elated to receive such an honour from my own country. This announcement today makes it special for me when I'm filming abroad for my new film 'Shivaay'.
 
"I'd like to acknowledge that Padma samman puts an extra responsibility on me, and I promise to serve my country for as long as I can."
 
His wife and actress Kajol, who won the Padma Shri in 2011, tweeted: "Another Padma Shri in the family. Congrats to my other half with lots of love and pride."
 
Senior lawyer Ujjwal Nikam, who was the prosecution counsel in the Mumbai terror attack case and actor Priyanka Chopra are selected for the Padma Shri awards.
 
Here is the list of Padma awardees for 2016...
 
 

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3 FAQs but still no clarity in SEBI’s Listing Regulations
SEBI came out with FAQs on its Listing Regulations three times in January alone. However, the FAQs continue to create more ambiguity instead of clarity 
 
On three different dates, market regulator Securities And Exchange Board Of India (SEBI) has come out with twenty one (21) frequently asked questions (FAQs) on the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations). In this month alone, SEBI has issued FAQs on 8th, 19th and 21 January 2016. In addition to the same, more FAQs, are expected to come. It is however left far from bringing clarity as was expected; rather it creates more and more ambiguity in a clear sense. 
 
Before the inception of the Listing Regulations 2015, various workshops have been conducted in the major cities of the country in order to enable the market participants to implement the new Listing Regulations and seeking the pros and cons, comments and difficulties on such implementation. Various issues have also been discussed and answered thereon and some queries were told to be clarified later by way of clarifications or FAQs. It is felt that even on completion of almost two months from the inception of the aforesaid Regulations; many issues have been left unattended or ambiguous. One of such ambiguities lies in Regulation 24 of the aforesaid Regulations which pertains to corporate governance requirements with respect to subsidiary (ies) of the listed holding entity which corresponds to earlier Clause 49 (V) of the equity listing agreement. 
 
Regulation 24(4) - significant transactions or arrangements by unlisted subsidiary
 
The provisions under Regulation 24(4) and Clause 49 (V) (C) have been kept unchanged, which requires the management of an unlisted subsidiary to bring to the notice of the Board of Directors of the listed holding entity on a periodic basis, a statement with respect to all significant transactions or arrangements entered into by such an unlisted subsidiary. Although, similar requirements were there in the listing agreement earlier, there were however, no such representations or ambiguities discussed or brought to the notice of SEBI; the probable reason of which may be the absence of any statutory recognition of the listing agreement. However, considering the fact that the replacement of the erstwhile listing agreement with the new Listing Regulations gives statutory recognition to the listing norms as were existing earlier, it is felt necessary to retract the ambivalence so that the listed entities are able to implement the new Listing Regulations, follow its obligations and make disclosures thereunder in letter and spirit as required by the said Regulations.
 
The ambiguity under Regulation 24(4)
 
The ambiguity under Regulation 24(4) appears from the explanation provided below the said Regulation and such ambiguity would not have been appeared so. Interpretation of the said Regulation would not have been so difficult, if SEBI would not have come up with the FAQs. SEBI vide its FAQs has clarified that for the purpose of Regulation 24, wherever the terms ‘unlisted material subsidiary’ or ‘unlisted subsidiary’ have been distinctly mentioned, the provisions shall be applicable to such ‘unlisted material subsidiary’ or ‘unlisted subsidiary’ as the case may be. Further, the said FAQs also provide that the Regulation 24(4) is applicable to all unlisted subsidiaries. However, while the Regulation 24(4) talks about unlisted subsidiary, the explanation given below talks about unlisted material subsidiary. The applicability of the said Regulation arises when there is any significant transaction or arrangement comes into picture with respect to the unlisted subsidiary. However to understand the meaning of such a significant transaction, one has to refer to the explanation, which provides the meaning of such a transaction in respect of an unlisted material subsidiary. At first instance, the intention might have been to include any one of the both i.e. unlisted material subsidiary and unlisted subsidiary; however, the same is an ambiguous and contradictory provision till date which requires more clarity.
 
Even if SEBI clarifies to include either of the two above, the practical situations that may arise in the process of complying with the said provisions may be of much burdensome for a listed entity having a greater number of unlisted subsidiaries or unlisted material subsidiaries. Even the Board of Directors of the listed entity will have to take note of all such information placed before it, since the threshold to become a transaction a significant one is only greater than 10% of total revenues, total expenses, total assets or total liabilities of such single reporting subsidiary, which is much easier to achieve in day-to-day business. 
 
Considering the requirements under Regulation 24(4) as aforesaid, although, the Board of Directors has to concentrate on various other sensitive matters or business decisions, which require more time and evaluation, however, it will still have to waste its valuable time in discussing the information placed by its subsidiaries. Hence, it seems that the aforesaid provisions need a review or revisit so that implementation of the new Listing Regulations becomes easier and the same does not become a burdensome process.
 
(Munmi Phukon works in the Corporate Law Division at Vinod Kothari & Company)

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COMMENTS

Dipakkumar J Shah

10 months ago

SEBI had in 1994 Approved Prospectus of Ratnamani Engineering Limited . Where in Report of Auditors containing a remarks Job Charges for 31.10.1992 were just mere book entry included in Profit . Out of the same profit dividend was declared. This is on their record and many complaints were made to SEBI . No follow up and corrective action!! What is the requirement of such action !!!!!

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