Capital measures

SEBI is pondering on streamlining the timelines for raising funds through QIP, IPO and Rights issues, apart from reducing disclosures for Rights issues and roping in an 'anchor investor' - a strategic investor who will lock in, say 25 % of the 60 % reserved for institutional investors.

Good measures .. lets hope they come in soon enough !!

Singh is King

The markets reacted with a salute to Mr. Manmohan Singh's unanimous victory .. Upper circuit hit at 15 % level. The markets re-opened at 11:55 a.m only to close again for the rest of the day. History has just been written.. The markets have never been closed for the entire day..

As per SEBI rules, in case of a 10% movement of either of these indices, there would be a one-hour market halt if the movement takes place before 1:00 p.m. In case the movement takes place at or after 1:00 p.m. but before 2:30 p.m. there would be trading halt for ½ hour. In case movement takes place at or after 2:30 p.m. there will be no trading halt at the 10% level and market shall continue trading.

In case of a 15% movement of either index, there shall be a two-hour halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1:00p.m. but before 2:00 p.m., there shall be a one-hour halt. If the 15% trigger is reached on or after 2:00 p.m. the trading shall halt for remainder of the day.

In case of a 20% movement of the index, trading shall be halted for the remainder of the day.

Empowerment of PMS clients

SEBI is thinking of empowering investors under PMS to verify their accounts by bypassing fund managers .. Seems to us, will defeat the purpose the rather-popular discretionary PMS accounts. A leading Portfolio Manager has already shut shop and many others are closing down some of their Schemes. Corporates working on wafer-thin margins, irate customers who have seen their portfolios collapsing like a pack of cards .. The PMS industry has more than its share of troubles..

The darker side of buy-backs

SEBI has apparently awakened to the darker side of buy-backs and is now going to make the requirement of disclosing a minimum number of shares to be bought-back, mandatory. This is in order to curb the practice of hollow or cosmetic buy-backs. We however feel that this requirement is already part of the Regulations in the form of Schedules which are standard formats of the Letter of Offer and the Public Announcement.

SEBI clears 'pool' of confusion in PMS

SEBI had come out with an amendment in the PMS regulations which stated that the clients' listed securities should not be held by the Portfolio Manager in his own account - without any reference to the funds of the client. It was only when a broker, through an Informal Guidance sought clarity on the funds part, that SEBI has clarified that the bank accounts also need to be separate. This has cleared the air on the pool aspect of Portfolio Management Schemes, which was a common practice in the markets till recently. SEBI has also come out rather strongly on Portfolio Managers who do not comply with the segregation of demat accounts, by disallowing any fresh business..