FDI in B2C E-Commerce sector. Boon or Bane?

The government refrains from allowing FDI in the B2C segment of e-commerce industry since the government is focusing on strengthening the manufacturing sector. 

The argument over relaxing FDI has been put on hold by the Modi government and the plans are in full steam to uplift the manufacturing sector, says a report. Manufacturing sector would go on to become instrumental in delivering the 12 million jobs which country needs every year to nurture growth and employment issues, the report said.

The ministry of commerce and industry is opposed to allowing FDI in the B2C segment of e-commerce at the moment, since the intention is to manage resources to uplift the manufacturing sector by creating physical infrastructure, as per the inputs given by a DIPP official to the Financial Express.

This is because B2C FDI in e-commerce could put it at odds with FDI policy in multi-brand retail sector. The opposite however is true for allowing FDI in B2B segment in the same industry since it boosts manufacturing activities. The small and medium retailers get a platform to sell their products through market place model in this way, says the report.

The extant policy, introduced by UPA-II, allows 51 per cent FDI in the sector, still the government feels opening multi-brand retail sector wold jeopardize the interests of small retailers and traders. This has made Carrefour and other multi-brand retailers pull away from committing any investments in India, the report mentions.

“Currently, we need large number of physical infrastructure, not virtual infrastructure. E-commerce will not promote the physical infrastructure. Right now, our focus is on zero-defect zero-effect products,” the official said in the report.

The government reportedly estimates the e-commerce sector to touch a sales figure of Rs 50,400 crore by 2015-16 leaving aside tickets and online sales. E-commerce giants both domestic and multinational wish wish the B2C segment to open, the report states.

The ministry of consumer affairs has suggested to bring the sector under the supervision of nine government agencies and regulatory bodies, including RBI, home ministry, the revenue department and the ministry of corporate affairs, stated the report. 

Reliance Defence ties up with SAAB

Report said that the deal may be valued at Rs 1,000 crore.

Anil Ambani’s Reliance Defence and Aerospace has tied up with SAAB of Sweden to bid for unmanned aerial vehicle (UAV) programme of the Indian Navy, according to reports.

Report said that the deal may be valued at Rs 1,000 crore.

The tie-up will probably mark the entry of European UAVs into the Indian market.

The last date of submission was March 19, after an extension of two weeks. 

The Anil Ambani Group showed keen interest in the Naval Utility Helicopters Programme of the Defence Ministry.

Corporate espionage! SEBI to look into insider trading complaints

SEBI will check if leak of secret documents of various ministries has resulted in any insider trading.

The information contained in documents from various ministries, have been allegedly leaked and complaints have been filed for using this information for insider trading in stocks. SEBI chairman has expressed concern over this since any insider trading will directly impact SEBI, as per a report.

Reportedly SEBI  has started probing into the issue of nexus between CAs, brokers and market operators. The Securities and Exchange Board of India said it is looking into the raised complaints and a multitude of other agencies are also prying into the reported leaks of documents.

The number of complaints is meagre (one or two) and the same have met with due receipt. Investigations are also on which includes analysing trading and share price trends in public and private companies across banking, pharmaceuticals and energy sectors. However, a certain amount of time will be required for completion of the process, stated UK Sinha, Chairman SEBI in the report as a response to being questioned if regulator is looking into the case.

“SEBI will take its own time to monitor that, to investigate that because investigating these things will take its own time,” Sinha commented on the issue as mentioned in the report.

It has been reported that if the investigation progresses smoothly, further action would be taken by SEBI.

The issue has brought officials and corporates under surveillance and some individuals have been detained owing to the probe of CBI and Delhi Police into the case and sale of confidential documents at various ministries, says the report.

The case would be monitored under Insider Trading Regulations, Prevention of Fraudulent and Unfair Trade Practices (PFUTP) norms, followed by stern penal actions, says the report.

It is also being suspected whether the documents were leaked to manipulate the stocks of various companies including by the Chartered Accountants, consultants, brokers and even the company promoters and executives, as stated in the report. 

Bank of Baroda revises interest rates

Bank of Baroda revises rates of interest payable on domestic term deposits & NRO deposits of below Rs. 1 crore 

Bank of Baroda has decided to revise rates of interest payable on Domestic Term Deposits & NRO Deposits of below Rs. 1 crore, applicable to fresh deposits and renewal from March 24, 2015.

The applicable rate of Interest in the maturity range of 181 to 270 days has been reduced from existing 7.75% to 7.65%

Deepak Fertilisers clarifies reports on MCF stake sale

Deepak Fertilisers & Petrochemicals Corporation Ltd clarified "We would like to inform you that the news article published in the Business Standard on 19th March, 2015 is not based on any information from the Company. 

The Exchange had sought clarification from Deepak Fertilisers & Petrochemicals Corporation Ltd with respect to news appearing on Business Standard on March 19, 2015 titled "Deepak Fertilizers may sell MCF stake"

Deepak Fertilisers & Petrochemicals Corporation Ltd clarified "We would like to inform you that the news article published in the Business Standard on 19th March, 2015 is not based on any information from the Company.

Hence, we cannot comment on the contents of the article."

Arun Jaitley, SEBI board review the state of capital markets

Arun Jaitley emphaised the need for pension money to come to the Indian securities market. He also took note of the roadmap of FMC's merger into SEBI.

In his meeting with Sebi's board, Finance Minister Arun Jaitley reviewed the state of economy and the markets and discussed capacity building and other infrastructure needs for merger of commodities regulator FMC with SEBI.

Jaitley interacted with the members of the SEBI Board and senior officials of SEBI in New Delhi on Sunday. Jayant Sinha, Minister of State for Finance and Rajiv Mehrishi, Finance Secretary and Ajay Tyagi, Additional Secretary, Finance also attended the meeting.

Jaitley highlighted the announcements related to the securities market in the Union Budget for 2015-16 and consequent action being taken by SEBI. He discussed the recent trends related to investments by foreign portfolio investors and domestic institutional investors in the securities market.

Need for pension money to come to the Indian securities market was particularly emphasized. Potential with respect to entry of REITs in the market was also discussed. Finance Minister also took note of the roadmap of FMC's merger into SEBI.

Besides, UK Sinha, Chairman-SEBI, the meeting was attended by members of SEBI Board viz. Anjuli Chib Duggal, Prashant Saran, Rajeev Kumar Agarwal, S Raman, Manoj Joshi and PC Chhotaray. Executive Directors and other senior officials of SEBI were also present.

Suzlon receives shareholders and CDR EG approval for Senvion sale

The stock has hit a high of Rs 27 and a low of Rs 26. 

Suzlon Energy Ltd has announced that it has received shareholders and CDR EG (Empowered Group) approval for Senvion sale and issue of upto 100 Crores equity shares on preferential basis.

Speaking on the occasion, Tulsi R. Tanti, Chairman, Suzlon Group said:  “We thank our shareholders and lenders for their confidence, trust and faith in the strategic vision of Suzlon. I am confident the bold decisions taken in the recent past by the company will pave the way for Suzlon’s resurgence. I wish to reiterate that these initiatives are in the interest of all stakeholders and aligned to our endeavour of creating maximum shareholder value. We will capitalize on our technological prowess, sustained market leadership of 18 years and best-in-class services to tap the immense growth opportunities in our home market, USA and other emerging economies. ”

The stock is down 1% at Rs 96.

The stock has hit a high of Rs 27 and a low of Rs 26.

Total traded quantity on the counter stood at over 44.50 lk shares.

Spicejet signs agreement with Wilmington Trust...stock spurts 6%

Under the said Settlement Agreement, the lessor has agreed to withdrawal of court proceedings and deregistration process of aircraft subject to SpiceJet satisfying the terms of settlement. 

Spicejet Ltd has announced that the Company has on March 23, 2015 entered into Settlement Agreement with its lessor (Wilmington Trust SP Services (Dublin) Limited) with regard to aircraft operated by the Company. 

Under the said Settlement Agreement, the lessor has agreed to withdrawal of court proceedings and deregistration process of aircraft subject to SpiceJet satisfying the terms of settlement.

The stock gained 6% at Rs 22. The stock has hit a high of Rs 23 and a low of Rs 21.

Total traded quantity on the counter stood at over 22.09 lk shares.

Wipro former marketing chief Rajan Kohli to head digital business: Reports

A report said that the formal announcement is expected to be made this week. 

Wipro former marketing chief Rajan Kohli is set to head the company's digital business, according to reports.

A report said that the formal announcement is expected to be made this week. 

Last week, the company appointed former TCS back-office head Abid Ali Neemuchwala as its chief operating officer.

Court injunction on two drugs...Glenmark Pharma clarifies

The company is seeking legal advise on the next steps and will take appropriate action. 

The Exchange had sought clarification from Glenmark Pharmaceuticals Ltd with respect to news article appearing on ET Now on March 20, 2015 titled "Delhi High court restrains Glenmark Pharma from manufacturing and marketing Zeta, Zeta-met used to treat Diabetes"

Glenmark Pharmaceuticals Ltd clarified that  Division bench of Delhi high court has injuncted today Glenmark from manufacturing Zita and Zita- met.

The injunction is not applicable for the products (zita and zita-met) which are already in market.

The company is seeking legal advise on the next steps and will take appropriate action."

Finance Minister meets Directors of RBI Central Board

FM discussed the Union Budget 2015-16 with the Board members and had interactions with them on various issues. 

Finance Minister Arun Jaitley addressed the Central Board of the Reserve Bank of India at its office in New Delhi. He was accompanied by Jayant Sinha, Minister of State, Finance. The meeting was also attended by the Government nominee directors on the Central Board Shri Rajiv Mehrishi, Finance Secretary and Dr. Hasmukh Adhia, Secretary, Department of Financial Services. Aradhana Johri, Secretary (Disinvestment) was also present. The Finance Minister discussed the Union Budget 2015-16 with the Board members and had interactions with them on various issues. He also addressed the press after the meeting.

Besides Dr. Raghuram G. Rajan, Governor of the Reserve Bank, Deputy Governors Harun R. Khan, Dr. Urjit R. Patel, Shri R. Gandhi and Shri S.S. Mundra of the Reserve Bank attended the meeting. The other Directors of the Central Board of the Reserve Bank of India present at the meeting included Shri Y.H. Malegam, Kiran S. Karnik, Dr. Nachiket Mor, Prof. Dipankar Gupta, G. M. Rao, Ms. Ela R. Bhatt, Dr. Indira Rajaraman, Shri Y. C. Deveshwar, and Prof. Damodar Acharya. In the meeting the Board discussed, among others, macroeconomic developments and other specific areas of operations of the Reserve Bank of India.

The Central Board of the Bank meets at least once two months. Apart from holding meetings in Mumbai, Chennai, Kolkata and one in New Delhi after the Union Budget, which is addressed by the Finance Minister, the rest of the meetings are held in other states by rotation. The main function of the Central Board of Directors of the Reserve Bank is to provide overall direction to its affairs.

Tata Motors stock gains on rights issue plans

Tata Motors plans to raise up to Rs. 7,500 crore via rights issue of equity shares.

Tata Motors stock was up 1% at Rs 552 after company said that it plans to raise funds via rights issue.

Tata Motors plans to raise up to Rs. 7,500 crore via rights issue of equity shares. 

Further the company's board will also consider a proposal for buyback of secured non-convertible debentures issued by the company in May 2009, maturity date being 31 March, 2016, face value of Rs. 1250 crore, as part of its debt restructuring programme.

The stock is now up 0.7 per cent at Rs. 551. The counter has seen trades of around 9,700-odd shares on the BSE.

Meanwhile, the Sensex has rallied 88 points at 28,349.

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Board meeting: SEBI eases norms on debt conversion

Indian banks will be able to convert debts of defaulting publicly traded borrowers into equity, says SEBI 

The SEBI Board met in New Delhi on Sunday and took the following decisions:

SEBI budget for the year 2015-16:

While approving the SEBI budget for the year 2015-16, the Board noted and approved the following policy initiatives that may be taken during FY2015-16:

Extensive and integrated use of technology to facilitate and further ease the investing process in the securities market, e.g. e-IPO, Aadhaar based e-KYC, etc.

Proactive steps to meet the aspirations of young entrepreneurs and cater to the financing and listing needs of start-ups with measures like Institutional Trading Platform (ITP), crowd funding, etc. or a separate carve out for them in the ICDR regulations.
Significant increase in investor education and awareness efforts through collaboration with other agencies and through empanelment of more Resource Persons.   

Tapping the increasing stature of social media for enhancing investor awareness and education.

Enhancing the experience and interface of investors and other stakeholders through upgradation of the SEBI website.

Further streamlining the enforcement process to ensure uniformity in approach and improve the efficiency of enforcement proceedings across the organization.

SEBI Guidelines for IFSC
Pursuant to announcement in the Union Budget 2015-2016 on Gujarat International Finance Tec-City (GIFT), SEBI Board has approved SEBI (International Financial Services Centres) Guidelines, 2015. These guidelines facilitate and regulate financial services relating to securities market in an International Financial Services Centre (IFSC) set up under Section 18(1) of Special Economic Zones Act, 2005 and matters connected therewith or incidental thereto. The broad framework of securities laws has been made applicable to the entities operating in IFSC with certain carve outs as specified in the guidelines.

Indian as well as foreign stock exchanges, clearing corporations and depositories are permitted to set up subsidiaries to undertake the same business in IFSC subject to certain relaxed norms on shareholding and net worth, etc. In addition, stock exchanges are also permitted to set up clearing corporations in IFSC. All Institutions in IFSC will comply with the IOSCO principles and Principles for Financial Market Infrastructures (FMIs) and such other governance norms specified by SEBI. SEBI registered intermediaries or recognized intermediaries of foreign jurisdiction are permitted to operate as securities market intermediaries in IFSC through a subsidiary or joint venture company.

The guidelines, inter alia, permits issue of depository receipts and debt securities in IFSC by domestic as well as foreign companies subject to the Foreign Currency Depository Receipts Scheme, 2014 and relevant SEBI (Issue of Capital and Disclosure Requirement) Regulations.  The guidelines also provide for listing and trading of equity shares issued by companies incorporated outside India, depository receipts, debt securities, currency and interest rate derivatives, index based derivatives and such other securities as may be specified by SEBI from time to time.  Non Resident Indian,  foreign investors, institutional investors, and Resident Indian eligible under FEMA may participate in IFSC.

Mutual Funds and Alternative Investment Funds set up in IFSC can invest in securities listed in IFSC, securities issued by companies incorporated in IFSC and securities issued by foreign issuers.

SEBI will be specifying norms and relaxations by way of guidance notes or circulars, for implementation of these guidelines to facilitate and regulate financial services relating to securities market in an IFSC.

Conversion of Debt into Equity by the Banks and Financial Institutions
The Board has approved a proposal, prepared in consultation with RBI, to relax the applicability of certain provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 in cases of conversion of debt into equity of listed borrower companies in distress by the lending institutions. Such relaxation in terms of pricing will be subject to the allotment price being as per a fair price formula prescribed and not being less than the face value of shares.. Other requirements would be available if conversions are undertaken as part of the proposed Strategic Debt Restructuring (SDR) scheme of RBI. This is intended to revive such listed companies and provide more flexibility to the lending institutions to acquire control over the company in the process of restructuring, to the benefit of all the stakeholders.

Review of Continuous Disclosure Requirements for Listed Entities 
SEBI has reviewed the requirements pertaining to disclosures being made by the listed entities on a continuous basis with a view to enable the investors to make well informed investment decisions. The following changes to the proposed SEBI (Listing Obligations and Disclosure Requirements) Regulations, have been approved by the Board:

(i)         The listed entity shall make the disclosure of all events/information, first to stock exchange(s), as soon as reasonably practicable and not later than 24 hours of occurrence of event/information.
(ii)        Disclosure of outcome of board meetings shall be made within 30 minutes of the closure of the meeting of Board of Directors.
(iii)       In addition to current requirement of making disclosure at the time of occurrence and after the cessation of the event, updation of disclosure on material developments shall also be made on a regular basis till such time the event/information is resolved/closed with explanations wherever necessary.
(iv)       The listed entity shall disclose on its website all events/information which is material and such information shall be hosted for a minimum period of 5 years and thereafter as per the archival policy of the listed entity, as disclosed on its website. 
(v)        The listed entity shall disclose all events or information with respect to subsidiaries which are material for the listed entity.
(vi)       The listed entity shall provide specific and adequate reply to queries of stock exchange(s) with respect to rumours and may on its own initiative also, confirm or deny any reported information to the stock exchange(s).
(vii)      In order to determine whether a particular event/information is material, the listed entity shall consider following criteria:
(a)       the omission of an event/information, which is likely to result in discontinuity / alteration of information already available publicly; or result in significant market reaction if the said omission came to light at a later date;
(b)       if in the opinion of the Board of Directors of the listed entity, the event /information is considered material.
(viii)     The Board of the listed entity shall frame a policy for determination of materiality, which shall be disclosed on its website.
(ix)       Rationalization, consolidation, enhancement and categorization of existing list of events into two parts:
(a)       Events which are by nature material i.e. those that necessarily require disclosure without any discretion by the listed entity.
(b)       Events which shall be construed to be material based on application of the guidelines for materiality, as specified by SEBI.
(x)        SEBI to specify an indicative list of information which may be disclosed upon occurrence of an event.

SEBI (Issue and Listing of Debt Securities by Municipality) Regulations, 2015 
The Board considered and approved the SEBI (Issue and Listing of Debt Securities by Municipality) Regulations, 2015 thereby providing a regulatory framework for issuance and listing of debt securities by Municipalities. 
The proposed regulations provide framework governing the issuance and listing of bonds by Municipalities and will enable the investors to make an informed investment decision before investing in the bonds issued by such entities.  The regulations also provide for disclosure requirements to be made by the prospective issuers. The proposed framework provides for public issuance and listing of privately placed municipal bonds.  These regulations are in line with the Government of India guidelines for issue of tax-free bonds by Municipalities.  Some of the features of these regulations are:
(i)         An issuer making a public issue shall only issue revenue bonds. In case of private placements, an issuer may issue general obligation bonds or revenue bonds.
(ii)        Issuer’s contribution for each project shall not be less than 20 per cent of the project costs, which shall be contributed from their internal resources or grants.
(iii)       Mandatory credit rating, which has to be investment grade rating in case of public issuances.
(iv)       Minimum tenure of 3 years.
(v)        Municipality should not have defaulted in repayment of debt securities or loans obtained from Banks/Financial Institutions, during the previous 365 days.
(vi)       Municipality should not have had negative net worth in any of the last three preceding financial years.
(vii)      Banks or Financial Institutions will be appointed as monetary agencies who will inter-alia prepare periodic reports.

Amendment to SEBI (Mutual Funds) Regulations, 1996, regarding managing/ advising of offshore pooled funds by local fund managers
As per extant requirements a fund manager who is managing a domestic scheme, is allowed to manage an offshore fund, only if, (i) the investment objective and asset allocation of the domestic scheme and the offshore fund are same, (ii) atleast seventy percent of the portfolio is replicated across both the domestic scheme and the offshore fund, and (iii) the offshore fund should be broad based i.e. there should be at least 20 investors with no single investor holding more than 25 percent of corpus of the fund, etc. Otherwise, a separate fund manager is required to be appointed for managing an offshore fund.

SEBI Board after deliberations decided to remove the above restrictions for managing offshore funds, belonging to Category I FPIs and appropriately regulated broad based Category II FPIs, by local fund manager who is managing a domestic scheme.

This will enable local fund managers to manage offshore funds effectively and also garner more offshore business in future 

Jindal Steel tumbles on setback in coal auction

The stock has plunged over 15 per cent at the opening bell. 

Jindal Steel & Power (JSPL) tumbled over 15 per cent to a low of Rs. 140 in early morning deals on reports of that the government has cancelled bids of Jindal Steel and Balco for four coal blocks.

According to media reports, the government examined bids in nine coal blocks, off which five got approved and four were cancelled.

The Coal Ministry rejected the bids of Jindal Steel and Balco amid reports of speculation of cartelisation during the recent coal block auction.

Reports added that the government will take a final decision on these mines after deliberations.

The stock is now down 11 per cent at Rs 146. Around 351,000 shares have changed hands at the opening bell on the BSE.

Meanwhile, the Sensex has gained 109 points at 28,371. 

Nifty above 8,600 levels

The BSE Mid-cap Index is trading up 0.22% at 10,649, whereas BSE Small-cap Index is trading up 0.29% at 10,891

The indices seem to be sitting on supports with less downside seen immediately. Lack of triggers may prevent an upmove and so what we have is a range-bound trade initially.  Though the week ended mostly lower, top seven Sensex companies added Rs 21,942.99 crore in market valuation. 

At 9:27 AM, the S&P BSE Sensex is trading at 28,352 up 91 points, while NSE Nifty is trading at 8,601 up 30 points.

The BSE Mid-cap Index is trading up 0.22% at 10,649, whereas BSE Small-cap Index is trading up 0.29% at 10,891.

Some buying activity is seen in Capital goods, healthcare, oil and gas, bankex and IT sectors, while realty sector is showing weakness on BSE.

Power Grid, Godrej Consumer Products, Bharti Airtel, Zee Entertainment Enterprises and RECL are among the gainers, whereas Jindal Steel & Power, NMDC, Hindustan Zinc, Glenmark, HDIL are losing sheen on BSE.

India's economy is likely to clock 8% growth in the next financial year and 8.3% in 2016-17, according to Fitch. Tata Motors could be in focus as its board will soon meet for a proposed Rs 7,500 crore rights issue. Glenmark Pharma could see pressure as it is facing restriction from manufacturing, marketing or selling its anti-diabetes drugs Zita and Zita-Met, says a report. .

In a major blow to Jindal Steel & Power, the government today said it was rejecting three of its successful bids in the recently-concluded coal block auctions, along with one by Balco, said media reports.

The RBI and Finance ministry appeared to be on the same page at a news conference on Sunday. "A public debt management agency as a professional organisation, independent of the (central) bank, independent of the government, is something that is desirable," Rajan said. "Besides time and the nature of resources it uses, how it works with the central bank and with the government, those are all details that the government is working to fill out. Those are the things that have to be determined," Rajan said.

Prime Minister Narendra Modi has assured farmers that their interest will be fully protected in implementation of revised land acquisition legislation. He also assured farmers that the Government is with them at a time when farmers are having tough time due to unseasonal rain and hailstorm which damaged rabi crops.

"Government aims to remove anomalies in land bill to benefit farmers, their families, villages," he said in his monthly radio broadcast 'Mann ki Baat' on Sunday.

To deepen capital markets, SEBI today pitched for allowing investment of pension money into various securities instruments and to create an enabling environment for REITs to flourish, as Finance Minister Arun Jaitley reviewed the state of capital markets in the country.

Lok Sabha passed 14 Bills during Budget session so far. The Coal bill got a nod from the Rajya Sabha (RS) members, making it the second bill to be passed as MMDR bill was passed by RS earlier. This will conclude the very successful day of the Narendra Modi goverment at the Rajya Sabha, where it is in minority.

Minister of Parliamentary Affairs M.Venkaiah Naidu has said that the first phase of the Budget session of Parliament that concluded today has been productive and has been the most significant and rewarding of the four sessions of Parliament since the Government assumed office in May, 2015. Naidu briefed the media on the outcomes of the Budget session so far.

According to reports, the Cabinet Committee on Economic Affairs has approved sale of equity in four state-owned companies including ONGC and NMDC which may fetch the exchequer Rs 22,574 crore, the Lok Sabha was informed on Friday.

On the other hand, Pharma, Energy, Infra and IT indices have gained 0.4 per cent each.

In Nifty-50 stocks - Bharti Airtel has jumped 1.5 per cent at Rs. 386. Zee Entertainment, Cipla, Tata Steel, Sun Pharma, Hindalco and Power Grid have also spurted over a per cent each.

On the other hand, Jindal Steel has slumped nearly 11 per cent to Rs. 147, on reports of that the government has cancelled bids of Jindal Steel and Balco for four coal blocks.

NMDC has dropped around 2 per cent at Rs. 129. DLF has also dropped a per cent at 158