REGULATIONS


Chit fund scams continue to be a problem for regulatory authorities. We have come across cases such as the Saradha Chit Fund, Sahara Financial, Rose Valley, PACL, fake cops, unauthorised colleges and courses. High-profile illegal schemes have mopped up more than Rs1 lakh...

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UPDATED on 13 June 2020 at 9.10am to add response from IL&FS.   In the past couple of weeks, two publications have published exclusive reports on the second forensic audit of ITNL (IL&FS Transportation Network Ltd). ITNL, like IFIN (IL&FS Financial Services), is one of the two big...

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Moneylife Digital Team 12 June 2020
India is looking to introduce a law to ban cryptocurrencies, as the government sees a legal framework as being more effective than a circular from the Reserve Bank of India (RBI) in this regard, says a report.   Quoting a senior government official, a report from the Economic Times...

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The Reserve Bank of India has come up with a discussion paper on governance in commercial banks, whereby it has proposed to limit the term of a bank promoter to hold the position of a CEO or whole-time director.   According to the RBI paper, a promoter or major shareholder of a bank...

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The Delhi High Court on Monday issued notice to Franklin Templeton Mutual Fund and market regulator SEBI in response to a petition filed over the closure of the six debt funds.   The writ petition has been filed challenging the winding-up notice issued by the mutual fund to close its...

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The Securities and Exchange Board of India (Sebi) has "strongly censured" Astrazeneca Pharma India Limited for "gross professional misconduct" and fraudulent trade practices" in its 2014 delisting exercise.   The Sebi order running into 65 pages comes six years after the delisting...

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When India imposed a hard lock-down, decision-makers were clueless about how it would impact over 140 million Indians who were out of a job overnight and stranded across the country, far away from home and families. After they decided to walk thousands of miles without adequate food,...

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After the Reserve Bank of India said the waiver of interest charges on EMIs during moratorium will lead to loss of 1 per cent of the GDP, Supreme Court on Thursday asked the finance ministry to reply, whether the interest could be waived or it will continue during the moratorium...

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Uday Kotak is selling 2.83% equity stake in Kotak Mahindra Bank, through a block deal, for around $900 million to meet the criteria set by the RBI to reduce promoter shareholding to 26% in the bank.   Kotak is the promoter of the bank and Managing Director. This will be a 100%...

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Moneylife Digital Team 01 June 2020
Market regulator SEBI has invited comments from public on a report on Social Stock Exchange-SSE for listing social enterprise and voluntary organisations.    Following the announcement in the Budget, SEBI had formed a working group on SSE headed by Ishaat Hussain and consisting of...

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Moneylife Digital Team 26 May 2020
To attract long-term and stable foreign portfolio investments (FPI) into the Indian debt markets, the Reserve Bank of India (RBI) introduced the voluntary retention route (VRR) in March 2019. However, the current volatile market scenario amid the coronavirus (COVID-19) crisis has made the...

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Moneylife Digital Team 22 May 2020
Taking cognizance of the lock-down due to coronavirus (COVID-19), the Reserve Bank of India (RBI) on Friday reduced its repo rate (short-term lending) by 40 basis points (bps) to 4.0% in its first monetary policy review for 2020-2021. RBI also allowed banks to extend the three-month...

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SEBI on Thursday allowed the listing of mutual fund schemes which are in the process of winding up.   In a circular, the securities market regulator noted that as per mutual fund regulations, there are several steps with respect to winding up of mutual fund schemes before the scheme...

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The Reserve Bank of India (RBI) has directed HDFC Limited to bring down its stake in its subsidiaries HDFC Ergo and HDFC Life Insurance to 50% or below.   The RBI has directed that post-merger of HDFC Ergo Health Insurance Company Limited (formerly Apollo Munich Health Insurance...

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If the Indian industry wants a bailout and an economic stimulus and lobbies as a group, can it remain silent about its members' over-opportunistic actions to take advantage of the situation?   Remember, the COVID-19 calamity is relatively recent; but investors and savers have...

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The Securities and Exchange Board of India (SEBI) on Thursday relaxed the 25 per cent minimum public shareholding norm and advised exchanges not to take penal action, till August 2020, against companies in case of non-compliance.   In a circular on Thursday, the security market...

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In another relief over regulatory compliance for listed companies, the Ministry of Corporate Affairs (MCA) has said that if a company is not able to deliver a notice with the details of a proposed rights issue, opening up to July 31, to the shareholders, it will not be considered as a...

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Moneylife Digital Team 08 May 2020
Market regulator, the Securities and Exchange Board of India (SEBI) has advised Franklin Templeton (FT) India Mutual Fund (MF) to focus on returning money to investors, in the context of winding up six of their debt schemes.   In a release, SEBI says, "Despite the regulations being...

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The reverse repo (RR) rate, which is the interest rate that the Reserve Bank of India (RBI) pays the banks for parking their surplus funds with it, has seen two cuts since the 27th March. It came down from 4.90% to 4% as per RBI notification on the 27th March. It was further reduced from 4%...

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Maya M 05 May 2020
Ganesh Anupindi is a stock investor who had an account with Kotak Securities. According to him, a relationship manager of Kotak called on him and orally promised a return of around Rs50,000-Rs100,000 per month by selling the call & put options on Nifty. He explained to him that that the...

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