No circuit filter on the day of listing helps operators to push up prices.
The trend has attracted the attention of fund managers who have resumed launching products targeted at HNIs.
The software is being developed in association with the Central Record-keeping Agency. It is expected to debut by the end of this year. PFRDA is also looking to have an ombudsman for redressal of investor grievances. To increase liquidity of the scheme, there could also be Tier-II accounts by the end of this year, which would allow investors to withdraw money at any given point of time.
Brokers said the Securities Transaction Tax regime and high stamp duty charges on share market transactions were the main reasons for the high cost of trading in India. As per the current STT rate structure, a delivery-based cash market transaction is taxed at Rs 12,500 per Rs 1 crore (Rs 10 million), or 0.125 per cent. The tax is levied on both buyers and sellers.
With rising instances of non-compliance with rules, the country's top depository National Securities Depository Ltd (NSDL) has revised the penalty imposed on erring market participants, which came into effect from May 1.
After getting the go-ahead from the Reserve Bank of India (RBI), IDBI Bank is all set to apply to the Securities and Exchange Board of India (Sebi) for a mutual fund licence.
Stockbrokers who have been taking advantage of the ambiguity in the Income Tax Act rules to reduce their tax payouts could be in for a rude shock.
In a notice sent to all its members on March 20, BSE has listed nine types of violation for which penalty norms have been revised. These are circular trading, fictitious trading, creating artificial volumes, price manipulation (rigging), manipulation of order book, placing of orders at unrealistic prices when circuit filters are open, placing orders that result in rogue trades, late submissions of details or submission of wrong information.
According to sources, the market regulator is planning to introduce colour forms for client registration in a bid to stop brokers from making changes after a client has filled up the form. Currently, there are boxes each for cash derivatives and debt, and investors have to indicate whether they want to trade in the cash market or futures and options. In some cases, brokers themselves click on the derivatives option without the permission of the client.
Share transfer agents have come under the Securities and Exchange Board of India's scanner after the market regulator received several complaints about their misconduct.
The Income Tax Department has moved the Bombay High Court to recover nearly Rs 500 crore from top stock brokers, who have managed to avoid paying income tax on the pretext of claiming depreciation on their Bombay Stock Exchange membership card.
Though the government in 2005 put an end to dividend stripping by enacting a law, disallowing the sale of mutual fund units within nine months if they were purchased three months prior to the dividend record date, the I-T department has been trying to recover taxes from several assessees, who exploited this loophole prior to the enactment of the new law and evaded tax.
At least 14 mutual fund schemes have closed down, according to announcements made by fund houses. The reason: they had less than 20 investors in the scheme or a single investor was accounting for more than 25 per cent of the corpus. According to Sebi's guidelines, any scheme should have at least 20 investors. Also, no investor can account for over 25 per cent of the corpus.
The Securities and Exchange Board of India is considering its Primary Market Advisory Committee's recommendation to introduce a uniform face value system for all listed companies. At present, companies decide their individual face value between Rs 1 and Rs 100.
Eight years after it was indicted by the market regulator for 'profiting from advance knowledge' of news website Tehelka's market-moving exposs, brokerage house First Global says it has procured documents under the Right to Information Act that show how the regulator fabricated a case against it.
Top Satyam executives accelerated sales of their shares in the company in close to three months before the company's aborted December 16 bid to buy two developers controlled by Ramalinga Raju's family.
Rules governing short-selling in various jurisdictions continue to generate controversy among regulators, lawmakers and market participants. While the US capital market regulator Securities and Exchange Commission has banned short-selling of financial shares after it was blamed for the collapse of Lehman Brothers, in India, the practice had come under the scanner as foreign institutional investors were lending stocks overseas to facilitate short-selling.
As per Sebi's new guideline, all companies will have to disclose information about shares pledged by promoters within a period of seven days after the promoters give the companies an intimation. Analysts are of the view that most of the promoters were hesitating to disclose this information as there is a fear among investors that the pledging of shares would cost promoters dear.
The Prevention of Money Laundering Act, 2002, requires all financial institutions, banks and intermediaries like merchant bankers, FIIs and stock brokers to submit reports on suspicious transactions above Rs 1 million in Indian or foreign currency. According to FIU's annual report for 2007-8, while the agency received 2.2 million such cash transaction reports from banks, other financial intermediaries put together have submitted only 2,500 suspicious transaction reports.
On the last day of Satyam's stint in India's benchmark indices - the Bombay Stock Exchange Sensex and the National Stock Exchange S&P CNX Nifty - its shares turned out to be a punter's delight.
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