The curbs on participatory notes (P-notes), announced by the Securities and Exchange Board of India (Sebi) on Thursday, have virtually ended a flourishing business of many leading foreign institutional investors (FIIs). Observers said the brokerage fees for offshore P-note transactions were nearly four times higher than those prevailing in the onshore market in India.
According to estimates by Citigroup India, P-note investments, excluding the underlying shares, account for 34 per cent of FII assets with custodians in BSE-500 companies. Sebi stipulates that P-Notes can account for up to 40 per cent of FII assets under custody. This leaves room for FIIs to increase their exposure through P-notes 6 percentage points.
Regulating PNs are important when the country has some restrictions on foreign investments. Countries having full capital account convertibility do not need FIIs to even register.
When Dhirubhai Ambani entered with his big bang public offer the foundation for the Indian stock market was laid.
The commodity futures market has started losing its sheen after a stupendous growth rate of 96.05 per cent in the last financial year
Traders said it is unusual that the grey market is active even after the issue subscription has closed. DLF grey-market shares were priced at Rs 525 per share.
The market regulator decided to set up an investor protection fund. It also approved delisting guidelines, regulation of investment advisors and the consent order scheme.
While a scheme allowing short-selling of securities is expected to come into force from July, exchanges and depositories are finalising a mechanism for lending and borrowing of securities, without which the scheme cannot be implemented.
Rakesh Jhunjhunwala of RARE Enterprises, a high-profile investor, talks to Business Standard on the state of the secondary market and the hype around IPOs.
Early onset of monsoon has raised the hopes of rainwear manufacturers. Wholesalers have already started stocking and they expect good demand despite rising prices of rainwear products.
Dinesh Thakkar, MD, Angel Broking, explains in an interview that retail investors' participation in the equity market is falling, but the share of organized players in broking business is increasing.
The department of consumer affairs is planning to put a ceiling on the stake that a single domestic investor can hold in a commodity exchange.
The US-based Depository Trust & Clearing Corporation is planning to pick up 5 per cent stake in the Bombay Stock Exchange.
The story began with the BSE board selling 5 per cent of its equity each to Frankfurt-based Deutsche Boerse AG (the world's biggest stock exchange in terms of market capitalisation) and the Singapore Exchange at Rs 5,200 per share.
An interview with Jaykrishna D Pathak, president of the Bombay Yarn Merchants Association & Exchange.
The National Securities and Depository is looking at increasing the number of demat accounts by restructuring its IT infrastructure.
The Indian stock markets started falling from mid-February after reaching an all time high of 14,700-plus.
Indian companies have now started looking at the Singapore Stock Exchange for fund raising and listing. The SGX became a shareholder in the Bombay Stock Exchange last week.
Exchange valued at $600-800 mn.
The Bombay Stock Exchange governing board is meeting over the next couple of days to select a strategic partner.
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