Within hours, after Moneylife published a report about the unjustified increase in arbitration fees, SEBI has modified its earlier circular saying that there is a maximum limit on arbitration fees.
Within hours after Moneylife published a report about the unjustified increase in arbitration fees (http://www.moneylife.in/article/72/8688.html ), Securities and Exchange Board of India (SEBI) has modified its earlier circular. In the modified circular, the market regulator has clarified that the circular has put a maximum limit on arbitration fees. SEBI has also increased the limitation period for filing arbitration claims to three years from six months.
According to the modified circular, there is a maximum limit on arbitration fees and the circular removes the uncertainty about such fees prevailing earlier where exchanges could collect additional charges beyond initial deposit.
"A client filing an arbitration reference for claim/counter claim up to Rs10 lakh within six months does not have to pay any fees. For such clients, the costs are to be borne by the stock exchange," the modified circular said.
SEBI has also made the number of arbitrators uniform across exchanges. Claims less than Rs25 lakh will be dealt by a sole arbitrator and claims more than Rs25 lakh will be dealt with by a panel of three arbitrators.
In order to ensure that the arbitration proceedings are completed in a time bound manner, timelines have been prescribed at each stage of activity, the modified circular said.
Earlier on Tuesday, Moneylife reported "Investors furious over SEBI's hike in arbitration fees, tilting the ground in favour of NSE"
The scheme was the first ETF with global exposure; however, the market response has been tepid so far
Benchmark Mutual Fund's Hang Seng BeES or Hang Seng Benchmark Exchange Traded Scheme launched in March this year is yet to become popular. It is the first foreign index based exchange-traded fund (ETF) listed in India (on the National Stock Exchange). Hang Seng BeES gives Indian investors an exposure to the Hong Kong and Chinese markets.
Trading volumes of Hang Seng BeES continue to be low, leading to low liquidity and wide bid-ask spread. At the end of the day today, the 'buy' price was Rs1,252 and the 'sell' price was Rs1,265. Total traded volumes today were just 156 units with a total turnover of Rs1.96 lakh. On an average, just 277 units were traded per day in August on the NSE. The turnover on the BSE is negligible. The open-ended passively managed fund was launched on 15 February 2010.
The Hang Seng index is a popular indicator of the performance of the Hong Kong stock market. HSBC Holdings, Bank of China, Hang Seng Bank and China Mobile are some of its constituents.
There have been a number of ETF launches by fund houses but investor appetite for such funds continues to remain low. Recently, Birla Sun Life Mutual Fund filed a draft offer document to launch its Nifty ETF. Benchmark Mutual Fund plans to launch six open-ended ETFs like IT BeES, FMCG BeES, SERVICES BeES, ENERGY BeES, PHARMA BeES, and REALTY BeES. Currently there are 22 ETFs listed on the NSE and the Bombay Stock Exchange (BSE).
While the real GDP growth at factor cost is estimated at 8.8%, at market prices, Nomura estimates the same at just 3.7%. But that depends on whether you trust government data
India's gross domestic product (GDP) expanded by 8.8% in the quarter to June on the back of robust manufacturing growth. However, there is a substantial divergence between the real GDP growth at factor cost and the real GDP growth at market price. This also raises questions about the validity of data collected and disbursed by the government.
While the real GDP growth at factor cost is estimated at 8.8%, the same at market prices is estimated at just 3.7% due to the difference in net indirect taxes, which suggests that taxes are falling while subsidy payments have risen substantially, contradicting the recent evidence of improving government finances, says broking company Nomura India in a research note.
However, one wonders whether the government data is correct at all. "In our view, domestic demand may have started moderating, but it is surely not as weak as suggested by the demand-side GDP components. Indeed, other real activity indicators on auto sales, capital goods output, machinery equipment production and government expenditure all suggest strong domestic demand. The data may be revised higher at a later stage, but the current readings are puzzling," said Nomura India in a report.
According to the government data, private consumption slumped to 0.3% year-on-year (y-o-y) in the quarter to end-June from 2.6% in quarter to end-March, fixed investment has dropped to 3.7% from 17.7%, government consumption growth was negative and both export and import growth contracted. The demand side, therefore, paints a completely different and a much weaker picture than the robust outlook presented by the supply side, Nomura India said.
The preliminary expenditure-side GDP estimate can often be subject to subject to significant revision, due to statistical anomalies and estimates of inventory change. "Given the strong momentum in the service sector, especially wholesale and retail trade, we believe there can be significant scope for revision in private consumption and investment. At this stage, we would not be overly concerned," said Barclays Capital in a note.
According to the data released by the Indian government on Tuesday, the economy grew by an impressive 8.8% during the quarter ended June on the back of robust manufacturing growth, as against 6% in the corresponding quarter of the last fiscal. Agriculture and allied activities grew by 2.8%, higher than 1.9% in the year-ago period. Manufacturing expanded by a strong 12.4% in April-June, 2010 against a mere 3.8% growth rate in the same period last year.
Nomura India said," We see downside risks to our GDP estimate of 9% y-o-y in FY11. Nomura's composite leading index is pointing towards a slowdown, suggesting that June may mark the peak quarterly GDP growth in FY11. We are currently reviewing our estimates with a mind to downgrade."
"The June quarter GDP growth of 8.8% was slightly below our estimate of 9%. Though agriculture growth was sluggish at 2.8% y-o-y, given the strong monsoons this year, we expect agriculture to revive in the next 3 quarters clocking full year growth of about 5%. The details on the expenditure side were slightly disappointing as private consumption and gross fixed capital formation growth was sluggish in real terms, though we expect private consumption growth to improve due to better rainfall and consequent moderating food inflation," said Ashutosh Datar, economist, IIFL.
According to a PTI report, Planning Commission deputy chairman Montek Singh Ahluwalia said that wholesale price inflation will fall to around 6% by December. Inflation had slid back to single-digits at 9.97% after five months in July. Food inflation, however, has been above 10% since the last week of July. "It is certainly true that with the growth being high there is no particular need for loosening monetary policy from the growth point of view," Mr Ahluwalia said.
The Reserve Bank of India (RBI) continues to describe managing inflation and anchoring inflation expectations as its policy priorities. "We expect non-food manufacturing inflation to remain sticky and strong job growth to encourage further demand-side pressures. However, we believe favourable base effects and moderation in growth momentum will have a tempering influence on the manufacturing sub-components, in line with the RBI's inflation expectations. We expect the RBI to hike the repo and reverse repo rates by 25 basis points (bps) on 16th September to take the rates to 6% and 4.75%, respectively," said Barclays Capital.