SEBI sets up committee on corporate bond market

The committee, which includes representatives from SEBI, Reserve Bank of India (RBI) and independent experts, would advise the regulator on development of the corporate bond market and the market for securitised instruments in the country

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) today constituted a 16-member committee which will suggest a roadmap for developing corporate bond market in the country, reports PTI.

The ‘Corporate Bonds & Securitisation Advisory Committee’ would be chaired by RH Patil, the chairman of Clearing Corporation of India (CCIL), SEBI said in a statement.

The committee, which includes representatives from SEBI, Reserve Bank of India (RBI) and independent experts, would advise the regulator on development of the corporate bond market and the market for securitised instruments in the country.

Members of the committee include Nimesh N Kampani (chairman, JM Financial), Rajiv Lall (MD & CEO, IDFC), Chitra Ramakrisha (joint MD, NSE) and B Prasanna (MD & CEO, ICICI Securities- PD), among others.

The committee would “advise SEBI on implementing the recommendations of the High Level Committee on Corporate Bonds and Securitisation,” it said.

It would also suggest removal of regulatory hurdles and advise on issues which need to be taken up with other regulators as also highlight the operational and systemic risks, if any, in the corporate bonds and securitised instruments market.

“This would help make the corporate bond and securitisation market more active and dynamic,” SMC Global Securities strategist & head of research Jagannadham Thunuguntla said.

Pursuant to the announcement made in the Union Budget, 2005-06, the government had appointed a ‘high level expert committee’ on corporate bonds and securitisation to examine legal, regulatory, tax and market design issues in the development of the corporate bond market.

The committee’s recommendations included enhancing the issuer as well as investor base of corporate bonds, simplification of listing and disclosure norms, rationalisation of stamp duty and withholding tax and consolidation of debt.

The committee had also suggested improving trading system through introduction of an electronic order matching system, efficient clearing and settlement systems, a comprehensive reporting mechanism, developing market conventions and self- regulation and development of the securitised debt market.

Earlier this month, SEBI allowed listing of securitised debt instruments or certificates on exchanges, and said that the move would help improve the secondary market liquidity for such instruments.

Securitisation involves pooling of financial assets and the issuance of securities that are re-paid from the cash flows generated by these assets.

Common assets for securitisation include credit cards, mortgages, auto and consumer loans, student loans, corporate debt, export receivable and offshore remittances.


SEBI tells listed cos to run updated websites from tomorrow

As per the SEBI guideline, companies not adhering to the requirement of having an ‘up and running’ website will face the risk of getting delisted from the stock exchange where their shares are traded

New Delhi: Having a website with up-to-date information at any given point of time will become mandatory for all the listed companies with effect from 1st April—a move aimed at providing investors with easy access to information, reports PTI.

A notification by market regulator Securities and Exchange Board of India (SEBI), which makes it mandatory for listed companies to have a functional website with latest details of various investor-sensitive information about them, will come into effect from 1st April.

The websites would require to have updated information about the company’s basic business and financial details, shareholding pattern, corporate governance, contact details, as also information about any agreements with media companies.

As per the SEBI guideline, companies not adhering to the requirement of having an ‘up and running’ website will face the risk of getting delisted from the stock exchange where their shares are traded.

Changes to this effect have been brought forward by SEBI by amending Equity Listing Agreement, which a company needs to enter into with a stock exchange before getting listed. The market regulator said that these amendments to the listing agreement were aimed to “ensure/enhance public dissemination of all basic information about the listed entity.”

As per the amendment, proposed to come into effect from 1 April 2011, it would be mandatory for any listed company to “maintain a functional website.”

On its website, the company would need to provide “details of its business, financial information, shareholding pattern, compliance with corporate governance, contact information of designated officials responsible for assisting and handling investor grievances, details of agreements entered into with the media companies and/or their associates, etc.

Besides, companies would have to “ensure that contents of the said website are updated at any given point of time.”

With effect from 1 January 2011, SEBI has already made it mandatory for listed companies to make relevant disclosures about their agreements with media companies.

Besides their websites, the listed companies are also required to notify the stock exchanges with details of agreements entered into by corporates with media companies

Disclosures are required regarding shareholding of media companies, details of nominee of the media companies on the board of a listed company and any management control or potential conflict of interest arising out of such agreements.

Besides, the companies are also required to disclose “any other treaties/contracts/agreements/MoUs or similar instruments entered into by the issuer company with media companies and/or their associates for the purpose of advertising, publicity, etc.”


Shares prices rise for 8th day in a row: Thursday Closing Report

Expecting a correction has been futile, but there is hardly any record of the market rising for a 9th day in a row

Joining in India’s celebrated semi-final win in the Cricket World Cup last night, the market continued its gaining spree for yet another day. The Sensex opened 50 points higher at 19,340 and the Nifty gained 15 points to 5803.05. Banking and realty counters witnessed early demand. Volatility on account of the futures and options expiry was evident since the start of trade today.

The market touched the day’s high just after mid-day, with the Sensex scaling 19,575 and the Nifty touching 5,872. However, intense profit-booking pushed the indices to their intra-day lows at around 2.50pm. The indices fell below its opening levels and even dipped into the red (Sensex to 19,284 and the Nifty to 5,779).

The market has rallied for eight days in a row and it would be a surprise if it does not correct tomorrow.

Vodafone, the world’s largest mobile phone operator by revenue, today said it has exercised its option to acquire Essar’s stake in their joint venture for $5 billion. Essar has a 33% stake in the joint venture company and with this buy Vodafone will have a direct holding of 75% in the Indian telecom company. Essar will exit completely from the joint venture. The company also said that a final settlement is expected to be completed by November 2011.

The market picked up some momentum amid fluctuations in the last half an hour and closed in the positive for an eighth day, an indication of a strong bull-run. The Sensex closed at 19,445, a gain of 155 points over its previous close, and the Nifty was up 46 points at 5,834.

In the fiscal-end rally which started on 22nd March the Sensex has gained 1,606 points and the Nifty has risen by 469 points.

Among the broader markets, the BSE Mid-cap index gained 0.29% and the BSE Small-cap index added 0.21%.

In the sectoral space, BSE IT (up 1.92%), BSE Fast Moving Consumer Goods (up 1.67%), Oil & Gas (up 1.44%), BSE TECk (up 1.42%) and BSE Metal (up 0.98%) were the major gainers. BSE Bankex (down 0.70%), BSE Healthcare (down 0.35%), BSE Consumer Durables (down 0.22%) and BSE Capital Goods (down 0.16%) were the main losers.

Bajaj Auto (up 2.90%), ONGC (up 2.76%), TCS (up 2.71%), Hindustan Unilever (up 2.50%) and Hero Honda (up 2.23%) were the best performers on the Sensex today. State Bank of India (down 3.19%), Cipla (down 2.01%), Reliance Communications (down 2%), Mahindra & Mahindra (down 1.61%) and Maruti Suzuki (down 0.95%) were the top lowers on the index.

Food inflation eased to single digits at 9.5% for the week ended 19th March helped by cheaper pulses even though vegetables and fruits remained expensive. Food inflation, measured on the basis of wholesale prices, had soared to 10.05% in mid-March after remaining in single digits for two weeks in a row.

The drop in food inflation in the week under review is also due to higher base in the corresponding period last year, when the rate of price rise was 20.18%.

Markets in Asia recovered from early hiccups and barring the Shanghai Composite, all others closed in the green. The Chinese benchmark settled lower on worries that the country’s central bank could go in for another round of rate hikes. However, geo-political issues and debt concerns in Europe capped the gains. The Seoul market gained on support from insurers and airlines. The realty sector aided the Hang Seng to close higher.

The Hang Seng gained 0.32%, the Jakarta Composite surged 1.04%, the KLSE Composite advanced 0.88%, the Nikkei 225 rose 0.48%, the Straits Times was up 0.34%, the Seoul Composite gained 0.73% and the Taiwan Weighted climbed 0.43%. On the other hand, the Shanghai Composite declined 0.88%.

Back home, foreign institutional investors were net buyers of stocks worth Rs739.61 crore on Wednesday. On the other hand, domestic institutional investors were net sellers of stocks worth Rs615.34 crore.

Aurobindo Pharma (up 1.08%) has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Fosinopril Sodium Tablets USP 10mg, 20mg and 40mg in the US. The drug is the generic version of Bristol-Myers Squibb Company Pharmaceutical Research Institute’s Monopril tablets 10mg, 20mg, and 40mg. The product falls under the cardiovascular (CVS) therapeutic category and is indicated for the treatment of hypertension. The product has a market size of about $20 million for the twelve months ending September 2010.

Tata Power (up 0.34%) today said it had started commercial operation of another 120-MW unit at its coal-based power plant at Jojobera, in Jamshedpur. Commercial operation of the latest 120-MW unit at Jojobera—dubbed Unit 5—began on 27th March. With the addition of this unit, the total capacity of the Jojobera thermal power station is now 547.5 MW.

KEC International (1.66%), the flagship company of RPG Group has bagged orders totalling Rs801 crore in the areas of transmission (domestic and international) and cables.

In India, the company has secured three orders from Power Grid Corporation of India aggregating Rs224 crore and one order from state utility Aptransco worth Rs84 crore on a turnkey basis. In the global arena, the company has bagged orders worth Rs386 crore from Saudi Arabia, South Africa, United States and Brazil.



k a prasanna

6 years ago

Market is over heated, will correct tomorrow. Expect 70-100 points correction in NIFTY.

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