NSE comes under Sebi panel’s lens

Post unearthing evidence that some traders on the exchange had illicit access to market data and trading systems, the Securities and Exchange Board of India’s (Sebi’s) technical advisory committee has recommended action against NSE. 

National Stock Exchange (NSE), India’s largest bourse seems to have been pulled up by the Securities and Exchange Board of India.

Post unearthing evidence that some traders on the exchange had illicit access to market data and trading systems, the Securities and Exchange Board of India’s (Sebi’s) technical advisory committee has recommended action against NSE, 

The capital market regulator has also been asked by the committee to find out if there was a “collusion” between NSE officials and a trading firm, OPG Securities, the report said.

In its meeting last month, the regulator had accused NSE of violating the norms by providing unfair access to traders thereby benefiting brokers. However, the exchange has denied the persistent allegations, as per the report.

Immediate action on the lapses by NSE’s could be taken under the committee's guidance. Additionally, a team consisting of members relevant to resolve the issue could be formed by the regulator for a more effectual investigation, industry experts believe, added the report. 

Sebi bars wilful defaulters from raising public funds

Report says that Sebi has also decided to bar such defaulters from setting up market intermediaries such as mutual funds. 

Sebi decided to bar wilful defaulters from raising public funds through stocks and bonds, according to reports.

Report says that Sebi has also decided to bar such defaulters from setting up market intermediaries such as mutual funds.

These defaulters would also be not allowed to take control of any other listed company, says report.

The move comes in the wake of a raging controversy over UB Group Chairman Vijay Mallya, who has exited the country

M&M Financial gets SEBI approval for setting up Mahindra Mutual Fund

The company has received approval from the Securities and Exchange Board of India to act as the Asset Management Company to the Mahindra Mutual Fund, set up by the company.

Mahindra & Mahindra Financial Services Ltd has informed BSE that Mahindra Asset Management Company Private Limited, a wholly-owned subsidiary of the Company has on February 04, 2016 received the approval from the Securities and Exchange Board of India to act as the Asset Management Company to the Mahindra Mutual Fund, set up by the Company.


Stock view:
Mahindra & Mahindra Financial Services Ltd ended at Rs. 201, down by Rs. 0.2 or 0.1% from its previous closing of Rs. 201.2 on the BSE.

The scrip opened at Rs. 201.5 and touched a high and low of Rs. 207.75 and Rs. 200 respectively. A total of 918126(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 11431.88 crore.

The BSE group 'A' stock of face value Rs. 2 touched a 52 week high of Rs. 294 on 07-Jul-2015 and a 52 week low of Rs. 192.95 on 28-Jan-2016. Last one week high and low of the scrip stood at Rs. 211.55 and Rs. 195.75 respectively.

The promoters holding in the company stood at 51.97 % while Institutions and Non-Institutions held 43.44 % and 4.59 % respectively.

The stock traded above its 200 DMA.

SEBI proposes fresh norms for REITs public issue

SEBI reportedly said that the proposed norms for the public issuance of REITs relate to appointment of merchant bankers, disclosures in the offer documents and filing of draft papers.

The Securities and Exchange Board of India proposed fresh norms for the public issue of Real Estate Investment Trusts (REITs), including cap of 75 per cent allocation to institutional buyers, according to reports.

SEBI reportedly said that the proposed norms for the public issuance of REITs relate to appointment of merchant bankers, disclosures in the offer documents and filing of draft papers.

 The allocation in the public issue should be maximum 75 per cent to qualified institutional buyers (QIBs) and at least 25 per cent to other investors, SEBI said.

SEBI added that REITs will need to deposit, before the opening of subscription, and keep deposited with the stock exchange, an amount calculated at the rate of 0.5 per cent of the amount of units offered for subscription to the public, says report.

SEBI clears shares tendered by LIC in Essar Oil delisting

The delisting offer which was to close yesterday got struck due to ‘technical’ issues as the bids were received for an an estimated 10.1 crore shares, as against a requirement for 9.26 crore shares for the offer to succeed.

According to reports, SEBI has cleared shares tendered by LIC in Essar Oil delisting.

The delisting offer which was to close yesterday got struck due to ‘technical’ issues as the bids were received for an an estimated 10.1 crore shares, as against a requirement for 9.26 crore shares for the offer to succeed.

The bids from LIC came within the scheduled time but some 'technical issues' led to the LIC shares remaining in the 'unconfirmed category'.

Essar Oil Ltd is currently trading at Rs. 253.6, up by Rs. 13.6 or 5.67% from its previous closing of Rs. 240 on the BSE.

The scrip opened at Rs. 243.5 and has touched a high and low of Rs. 254.7 and Rs. 243.5 respectively. So far 1916835(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 36302.26 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 249.8 on 22-Dec-2015 and a 52 week low of Rs. 98 on 05-Jun-2015. Last one week high and low of the scrip stood at Rs. 249.8 and Rs. 216.3 respectively.

The promoters holding in the company stood at 24.89 % while Institutions and Non-Institutions held 3.24 % and 6.26 % respectively.

The stock is currently trading below its 50 DMA.

Constant loss of money will make retail investors refrain from IPOs: U K Sinha

If the investors feel that they are continuously losing their money in IPOs, they are not going to enter the market, UK Sinha said.

With 2015-16 has been a roller-coster ride for the primary market, with 10 out of total 18 initial public offerings (IPOs) are trading above their issue prices, this year has been the best in past four years for the investors. The recent measures taken by the Securities and Exchange Board of India (Sebi) to ease the IPO process can be considered as one of the reasons for the success of the primary market in the current fiscal. However, U K Sinha, Chairman, Sebi, emphasized on safety of retail investors, particularly in IPO market.

“If the investors feel that they are continuously losing their money in IPOs, they are not going to enter the market,” said Sinha at the AIBI Summit 2015, organized in Mumbai today by Association of Investment Bankers of India (AIBI).

Expressing his views on the performance of IPOs in FY16 so far, Sinha added that prior to 2013, more than two-thirds of the new issues were trading below issue price. Obviously, it had impact on investors. But I am happy that IPOs that have come this year, 56 per cent are trading above the issue price. Total primary issues in FY15 were worth Rs. 9,700 crore, but this fiscal it is Rs 18,300 crore, out of which Rs 16,150 crore would come from sectors such as healthcare, education, hotel and restaurants, while there are no issues from banks, and power companies which have been traditionally active.

Speaking about the impact of easing the IPO regulations, the Sebi chief noted that we have reduced the time taken to process and clear DHRPs has now been reduced to half and the new IPO norms will be effective from January 1.

“Earlier it was complained that Sebi was taking more time to clear IPOs, but it was aimed at the safety of retail investors. In some cases, we had been persuading the corporates to come out with safety grades with investors’ safety in mind,” Sinha added.

Sebi along with the RBI and the Indian Bankers’ Association has taken initiative to educate all the bankers about ASBA so that retail investors’ money is not blocked indefinitely by participating in IPOs, the Sebi chief informed.

Throwing light on broader economic picture, Sinha noted that there has been increasing realization from the international as well as domestic agencies that the economy is going a right path. The forecast by the world Bank and the IMF made one year earlier about Indian economy has now seen an upsurge on 100 basis points. In the last quarter, Indian economy has seen more growth as compared to the corresponding period last year.

“Also, inflation is under control, the current account deficit (CAD) to the GDP ratio is currently 2/3 and the recent IIP data is also encouraging,” Sinha added.

However, on a flip side, our exports have been falling since last 11 months and during this financial year, our exports have fallen by 17.4% to US$ 154 billion. In addition, for July - September 2015, the growth of corporate sector has been muted at around 1% as compared to the same period last year. The bank loan growth between September 2014 and September 2015 was 8.4%, which has now been 8.1% for October 2014 to October 2015.

“In FY 16 till 8 November the FPI equity flow is -US$ 3 billion, in the debt segment they have been more positive, so we have come to nearly US$ 1.2 billion plus. But in the last fiscal it was US$ 12.3 billion in equity and US$ 18.6 billion in debt segment, totaling to US$ 30.9 billion,” Sinha pointed out.

SEBI forms a committee to improve disclosure standards of financial products, including mutual funds

SEBI has formed a committee on Disclosure and Accounting Standards (SCODA) to seek recommendation on improving disclosure standards of financial products including mutual funds.

SEBI has formed a committee on Disclosure and Accounting Standards (SCODA) to seek recommendation on improving disclosure standards of financial products including mutual funds through offer documents, application forms and advertisements.

The 17-member committee was formed on September 03. Ishaat Hussain, Director-Finance, Tata Sons is heading this committee as the chairman. Milind Barve, Managing Director, HDFC MF is the member from the mutual fund industry in this committee.

The committee will also give its recommendation on improving disclosure requirements of financial intermediaries registered with SEBI like Registered Investment Advisers (RIAs) and stock brokers.

SEBI Board Meeting: Key highlights and decisions taken

The market regulator announced easier listing norms for start-ups, new framework for promoters in listed companies to be reclassified as public shareholders, made electronic IPOs mandatory for companies listing from January 1, 2016, and reduced the minimum public holding requirement for listed companies wishing to raise further capital from the markets. 

The SEBI Board met at Mumbai on June 23, 2015.  Highlights of the decisions taken are as follows:
 
1. Streamlining process of public issues- Obviating the need to issue cheques:
Initial Public Offering (IPO) process streamlined to, reduce time period for listing of issues from T+12 days to T+6 days, increase reach of retail investors to access the IPO and reduce the cost of public issues. With this issuers will have faster access to the capital raised and investors will have early liquidity.
 
2. Simplified framework for capital raising by technological start-ups and other companies.
 
Enabling provisions approved for capital raising by technological start-ups and other companies through Institutional Trading Platform.
 
3. Fast Track Issuances through FPOs or Rights Issue:
Requirement of market capitalization of public shareholding of the issuer for Fast Track Issues (FTI) reduced to Rs. 1000 crore in case of Follow on public offering (FPO) and Rs. 250 crore in case of rights issue. This will help more listed companies to raise further capital using fast track route.
 
4. Review of Offer for Sale (OFS) through stock exchange mechanism
Changes proposed to encourage greater retail participation in OFS.
 
5. Reclassification of Promoters as Public:
A rationalised, simple framework put in place for reclassification of promoters as public. The proposed framework will bring in consistency and also enable investors to take informed decisions based on any such move by the company / promoters
 
6. Annual Report for 2014-15
Annual Report for 2014-15 approved by the Board.
 
The details of some of the decisions taken are as follows:
 
1. Streamlining the Process of Public Issues - Obviating the need to issue cheques
In order to reduce the post-issue timeline for listing from existing T+12 days to T+6 days, increase the reach of retail investors and reduce the costs involved in public issue of equity shares and convertibles, Board took the following decisions:

• Presently more than 99.5 % applications are received from centres where ASBA facility is available. Based on an analysis of a few public issues, in terms of amount, ASBA applications account for 99.90% of the total bid amount received from all investors. Considering the reach and advantages of ASBA, it shall now be mandatory for all investors to make ASBA applications. Amongst many other significant advantages, ASBA enables investors to give the mandate for payment of application money in the application form itself without suffering loss of interest for the intervening period. It also obviates the hassle of refund of money by the issuer as per the difference in application amount and the amount for which shares are finally allotted.
• 
  
• In order to substantially enhance the points for submission of applications, Registrar and Share Transfer Agents (RTAs) and Depository Participants (DPs) shall also be allowed to accept application forms (both physical as well as online) and make bids on the stock exchange platform. This will be over and above the stock brokers and banks where such facilities are presently available.
• 
  
• To help intermediaries and banks to modify their existing systems and train their staff and also enable the investors to adapt to the new system, there will be a phase-in period of 6 months. Accordingly, a public issue which opens on or after January 01, 2016 will have to follow the new system.

 
2. Simplified Framework for Capital Raising by technological start ups and other companies on Institutional Trading Platform.
The Board undertook a review of the extant regulatory framework in the primary market and noted the suggestions of market participants on making the existing avenues for capital raising amenable for accommodating a larger number of start-up companies. Based on the same, the Board approved the following proposals to amend the regulations concerning the ITP Platform:

• The platform shall now be called as Institutional Trading Platform (ITP) and shall facilitate capital raising as well.

 
The said platform will be made accessible to:

• companies which are intensive in their use of technology, information technology, intellectual property, data analytics, bio-technology, nano-technology to provide products, services or business platforms with substantial value addition and with at least 25% of the pre-issue capital being held by QIBs (as defined in SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009), or
• Any other company in which at least 50% of the pre-issue capital is held by QIBs.
• No person (individually or collectively with persons acting in concert) in such a company shall hold 25% or more of the post-issue share capital. 
• 
  
• Considering the nature of business of companies which may list on the said platform, disclosure may contain only broad objects of the issue and there shall be no cap on amount raised for General Corporate Purposes. Further, the lock in of the entire pre-issue capital shall be for a period of 6 months from the date of allotment uniformly for all shareholders. 
• 
  
• As the standard valuation parameters such as P/E, EPS, etc. may not be relevant in case of many of such companies, the basis of issue price may include other disclosures, except projections, as deemed fit by the issuers. 
• 
  
• Companies intending to list on the proposed ITP, shall be required to file draft offer document with SEBI for observations, as provided in SEBI (ICDR) Regulations, 2009. 

Only two categories of investors, i.e.

1. Institutional Investors (QIB as defined in SEBI (ICDR) Regulations, 2009 along with family trusts, systematically important NBFCs registered with RBI and the intermediaries registered with SEBI, all with net-worth of more than Rs. 500 crore) and
2. Non-Institutional Investors (NIIs) other than retail individual investors can access the proposed ITP. 
3. In case of public offer, allotment to institutional investors may be on a discretionary basis whereas to NIIs it shall be on proportionate basis. Allocation between the said two categories shall be in the ratio of 75% and 25%, respectively. 
4. 
   
5. In case of discretionary allotment to institutional investors, no institutional investor shall be allotted more than 10% of the issue size. All shares allotted on discretionary basis shall be locked-in in line with requirements for lock-in by Anchor Investors i.e. 30 days at present. 
6. 
   
7. The minimum application size in case of such issues shall be Rs. 10 lakhs and the minimum trading lot shall be of Rs. 10 lakhs. 
8. 
   
9. The number of allottees in case of a public offer shall be 200 or more. 
10. The company will have the option to migrate to main board after 3 years subject to compliance with eligibility requirements of the stock exchanges. 
11. 
    
12. For Category I and II AIFs, which are required under the SEBI (Alternative Investment Funds) Regulations, 2012 to invest a certain minimum amount in unlisted securities, investment in shares of companies listed on this platform may be treated as investment in 'unlisted securities' for the purpose of calculation of the investment limits.

Grandfathering of existing companies listed on SME-ITP:
xiv. The existing companies listed on SME-ITP may continue to be guided by the existing regulatory framework for them including applicable relaxations from compliance with corporate governance requirements.
 
Rationalisation of disclosures for proposed ITP as well as main board:
xv. Further, in order to rationalize the disclosures requirements for all issuers whether intending to list on the main board or the proposed ITP, it has been decided that the disclosures in offer document with respect to group companies, litigations and creditors shall be in accordance with policy on materiality as defined by the issuer. However, all relevant disclosures shall be available on the website of the issuer. Also, the product advertisements of an issuer will not be required to give details of public/rights issue.
 
3. Fast Track Issuances - Follow on Public Offerings and Rights Issues
In order to enable more number of listed companies to raise further capital using fast-track route, Board approved the proposal to reduce the minimum public holding requirement from Rs. 3000 crore to Rs. 1000 crore in case of FPO and to Rs. 250 crore in case of rights issue, subject to compliance with following additional conditions:

• In case of rights issue, promoters shall not renounce their rights, except to the extent of renunciations within the promoter group, or for the purposes of complying with minimum public shareholding norms;
• Annualized delivery based trading turnover requirement of 10% of the total paid up capital;
• 
  
• No conflict of interest between the lead manager and the issuer or its group or associate company in accordance with applicable SEBI Regulations;
• 
  
• Shares of the company should not have been suspended from trading as a disciplinary measure in past 3 years;
• 
  
• &Issuer, promoter group and directors of the issuer should not have settled any alleged violation of securities laws through the consent mechanism with the Board in last 3 years. This is in addition to the existing condition that no show-cause notices should have been issued or prosecution proceedings initiated by SEBI or pending against the issuer or its promoters or whole time directors.

 
4. Review of Offer for Sale (OFS) of Shares through stock exchange mechanism
A discussion paper was floated on the review of Offer for Sale of Shares (OFS) through Stock Exchange mechanism. The Board considered the comments / suggestions received on the discussion paper and approved the following changes to the present OFS framework:

• To ensure increased retail participation in the OFS process, OFS notice shall be continued as per present practice i.e. latest by T-2 days, however, T-2 day shall be reckoned from banking day instead of trading day.
• 
  
• To simplify the bidding process for retail investors, it would be mandatory for the seller to provide the option to retail investors to place their bids at cut off price (default option) in addition to placing price bids.

 
5. Re-classification of Promoters as Public
In order to put in place a policy framework with respect to re-classification of promoters in listed companies as public shareholders under various circumstances, the Board has approved the proposal for putting in place a regulatory framework for the purpose.
 
Existing promoter of a listed entity may cease to be a promoter and/or re-classify itself as public in the following circumstances, on compliance with conditions stated thereunder:
 
Pursuant to change in promoter

• When a new promoter replaces the previous promoter subsequent to an open offer or in any other manner, re-classification shall be permitted subject to approval of shareholders in the general meeting.
• Shareholders need to specifically approve whether the outgoing promoter can hold any Key Management Personnel (“KMP”) position in the company. In any case, the outgoing promoter may not act as KMP for a period of more than 3 years from the date of shareholders’ approval.
• The outgoing promoter can’t hold more than 10% shares of the company.

 
Inheritance

• In case of transmission/succession/inheritance, the inheritor shall be classified as promoter.

Company not having any identifiable promoter
Existing promoters may be re-classified as public in case the company becomes professionally managed and does not have any identifiable promoter. A company will be considered as professionally managed for this purpose, if:

• No person or group along with Persons Acting in Concert (PACs) taken together holds more than 1% shares of the company (including any convertibles/outstanding warrants/ADR/GDR Holding).
• Mutual Funds/Banks/Insurance Companies/Financial Institutions/FPIs can each hold up to 10% shares of the company (including any convertibles/outstanding warrants/ADR/GDR Holding).
• Erstwhile promoters and their relatives may hold KMP position in the company only subject to shareholders’ approval and for a period not exceeding 3 years from the date of shareholders’ approval.
•   The following conditions shall also be applicable:
• 
  
• The outgoing promoter shall not have any special rights through any formal or informal arrangements.
• The outgoing promoter shall not, directly or indirectly, exercise control over the affairs of the company.
• Increase in public shareholding pursuant to re-classification of promoters may not be counted towards achieving compliance with minimum public shareholding (MPS) requirement under clause 40A of equity listing agreement read with rule 19A of the Securities Contracts (Regulations) Rules, 1957 (SCRR).
• If any public shareholder seeks to re-classify itself as promoter, it shall be required to make an open offer to the shareholders and would not be eligible for exemption from the said obligation.
• The event of re-classification may be disclosed as a material event in accordance with the listing agreement/regulations.
• 
  
• In order to remove difficulties in specific cases the Board authorized the Chairman, SEBI to take required measures on a case to case basis.

 
6. SEBI Annual Report: 2014-15
The Board considered and approved the SEBI Annual Report: 2014-15. In compliance with Section 18(2) of SEBI Act, 1992, the same Annual Report would be submitted to the Central Government.
 
7. FMC- SEBI merger
The Board also discussed operational issues relating to the merger of Forward Markets Commission (FMC) with SEBI.
 
8. Recommendations of the Depository System Review Committee (DSRC)
An expert committee was constituted by SEBI, to inter-alia review and assess the depository system on the basis of CPSS-IOSCO principles so as to benchmark with global best practices. In its meeting held on November 19, 2014 the Board broadly accepted the recommendations of the committee.
 
The Board today reviewed the status of the implementation of recommendations and noted that the Depositories have been advised to implement the following:

• Develop a mechanism to maintain complete reconciled record of total issued and listed capital, including both physical and dematerialized shares.
• 
  
• Risk Management Policy at the Depositories and Information Technology (IT) infrastructure of the Depository Participants.
• 
  
• Popularization of e-KYC among Depository Participants.
• 
  
• Put in place systems to facilitate generation and dispatch of single Consolidated Account Statements (CAS) for investors having investments in securities and Mutual Funds, which has been implemented with effect from March 01, 2015.
• 
  

9. Interim Use of Funds by the Issuers
In order to prevent misuse of funds during the interim period pending utilization by the issuer, for funds raised through public / rights issue in accordance with SEBI (ICDR) Regulations, 2009, the Board decided that net Issue proceeds pending utilization (for the stated objects) shall be deposited only in the Scheduled Commercial Banks included in the Second Schedule of Reserve Bank of India Act, 1934. In case of public / rights issue of Indian Depository Receipts, the issuer shall keep the funds in a bank having a credit rating of 'A' or above by an international credit rating agency.

SEBI directs stock exchanges to provide co-location facility

SEBI said stock exchanges will have to provide all market participants availing co-location facility fair and equal access to their facilities and data feeds

The Securities and Exchange Board of India has directed stock exchanges to provide the co-location facility in a fair and transparent manner.

The regulator said stock exchanges will have to provide all market participants availing co-location facility fair and equal access to their facilities and data feeds.

Besides, they have to ensure that the size of the co-located or proximity hosting space is sufficient to accommodate all the stock brokers and data vendors who are desirous of availing the facility.

"provide the flexibility to avail rack space in the co-location or proximity hosting so as to meet the needs of all stock brokers desirous of availing such facility," SEBI said in a circular on Tuesday.

Exchanges have been asked to put in place systems to implement these guidelines within three months.

SEBI rejects Elder Pharma’s proposal to recast shareholding plan

The company submitted to SEBI that as there is no change in the total promoter shareholding, there would be no change in control in Elder Pharma 

The Securities and Exchange Board of India recently rejected a proposed recast of shareholding of Elder Pharma, according to a media report. Promoters of Elder Pharma had proposed to transfer their shareholding in two entities, which hold shares in the company as a gift to themselves, as well as to Apricot Capital, another promoter entity, the report added.

 The promoter group includes Alok Saxena and Anuj Saxena who are brothers. Both of them hold shares equally in Apricot Capital. But, Apricot Capital does not hold any shares in Elder Pharma. The company submitted to SEBI that as there is no change in the total promoter shareholding, there would be no change in control in Elder Pharma.

 "The condition of holding shares for a period of three years prior to the proposed acquisition would be deemed to be fulfilled in case the transferor or transferee collectively hold shares...In the instant case, Alok Saxena and Anuj Saxena, being one of the transferees are holding shares for the last three years, it would be sufficient to qualify for exemption under regulation 10 (1)(a)(ii) of takeover regulations even if the other transferee is not holding shares for such period," the company submitted to SEBI. But, SEBI rejected the proposal.

The regulator said one of the conditions for claiming exemption with regard to inter-se transfer of shares is that the transfer is among persons named as promoters in the shareholding pattern filed by Elder Pharma for not less three years before the proposed acquisition.

SEBI to explore social media to promote financial education

In the SMS space, SEBI is specially targeting the schemes where investors are promised doubling of their investments within a few months 

In order to spread financial education, Securities and Exchange Board of India (SEBI) has decided to track social media, internet and other mobile platforms, according to a media report.

The SEBI is already present on platforms such as TV, radio and print newspapers for investor education and awareness programmes.

The regulator has also carried out a number of campaigns in various languages including English, Hindi and regional languages spoken across India.

SEBI is now planning to explore various other mediums such as outdoor media, advertising and social media in the current fiscal 2015-16, to spread investor awareness.

In the SMS space, SEBI is specially targeting the schemes where investors are promised doubling of their investments within a few months, the media report added.

Besides, SEBI is continuing its investor education and awareness programmes through newspapers. 

SEBI to revise norms for alternative investment funds

The capital market regulator is setting up a high-power committee which is expected to be headed by Infosys founder NR Narayana Murthy 

The Securities and Exchange Board of India is preparing to revise norms on alternative investment funds (AIFs), according to a media report.

The capital market regulator is setting up a high-power committee which is expected to be headed by Infosys founder NR Narayana Murthy, the report added.

AIF as an investment vehicle was established to pool in funds for investing in real estate, private equity and hedge funds. Such funds buy into private companies, restructure them and then liquidate their positions by selling to other firms or via a stock offering.

The seven-member panel is to create an environment in which enterprises including startups can raise private capital efficiently as well as put in place measures for AIFs, the report further said. 

MFs report net outflow of Rs. 1.09 trillion in March: SEBI

Private sector mutual funds witnessed outflow of Rs. 81,630 crore in March 2015, while public sector mutual funds saw outflow of Rs. 28,268 crore 

Mutual funds reported net outflow of Rs. 1,09,898 crore in March 2015 as compared to a net inflow of Rs. 18,365 crore in February 2015, according to the SEBI bulletin published for the month of April.

Private sector mutual funds witnessed outflow of Rs. 81,630 crore in March 2015, while public sector mutual funds saw outflow of Rs. 28,268 crore, SEBI added.

Private sector mutual funds witnessed inflow of Rs. 13,212 crore in February 2015, whereas public sector mutual funds saw inflow of Rs. 5,154 crore.

S&P BSE Sensex closed at 27,957.5 on March 31, 2015, as against 29,361.5 on February 28, 2015, registering a decrease of 1,404 points (-4.8 percent).

CNX Nifty closed at 8 ,491.0 on March 31, 2015 compared to 8,901.8 on February 28, 2015 indicating a decrease of 410.9 points (-4.6 percent). 

MFs invest Rs. 3,940 crore in equity in March: SEBI

Mutual Funds invested Rs. 77,300 crore in debt market in March 2015 as against of Rs. 63,575 crore invested in February 2015 

Mutual Funds made net investment of Rs. 81,240 crore in the secondary market in March 2015 compared to net investment of Rs. 67,507 crore in February 2015, according to the SEBI bulletin published for the month of April.

Mutual funds invested Rs. 3,940 crore in equity in March 2015 compared to Rs. 3,932 crore in February 2015. Further, Mutual Funds invested Rs. 77,300 crore in debt market in March 2015 as against of Rs. 63,575 crore invested in February 2015.

As on March 31, 2015 there were a total of 1,884 schemes under mutual funds of which Income / Debt oriented schemes were 1,346 (71.4 percent), Growth/equity oriented schemes were 434 (23 percent), Exchange Traded Funds were 48 schemes (2.5 percent), Balanced schemes were 25 (1.3 percent) and Fund of Funds investing Overseas schemes were 31 (1.6 percent).

The number of schemes at the end of 2013-14 were 1,638 of which Income/Debt oriented schemes were 1,178 (71.9 percent), Growth/equity oriented schemes were 363(22.2 percent), Exchange Traded Funds were 40 schemes(2.4 percent), Balanced schemes were 30 (1.8 percent) and Fund of Funds investing Overseas schemes were 27(1.6 percent). 

SEBI reviews securitisation trustee norms

SEBI has proposed that trustees would have the power to inspect books of account, records and the trust property. 

The SEBI on Thursday released a discussion paper on SEBI (Public Offer And Listing Of Securitised Debt Instruments) (Amendment) Regulations, 2015. These Regulations shall come into force on the date of their publication in the Official Gazette.

In the paper, SEBI has highlighted the role and responsibilities of trustees of SDI (securitised debt instruments). An applicant seeking registration to act as a trustee shall have a networth of not less than Rs. 2 crore. The duty of calling for periodic reports from sellers and ensuring the investors of SDI have been allotted debt would lie with the trustee of SDI.

A trustee shall supervise the implementation of the covenants regarding creation of security for the securitised debt instruments; do such acts as are necessary in the event the security becomes enforceable and supervise the enforcement of the security in the interest of the investors.

In the discussion paper, SEBI has proposed that trustees would have the power to inspect books of account, records and the trust property to the extent necessary for discharging its obligations.

SEBI has also said that securitisation trustee shall not be party to any manipulative practices and creating of false market. The regulator has invited comments from the market till August 28 

SEBI revises FII limit for $-Re pair in F&O

FPIs shall ensure that their short positions at a stock exchange across all contracts in USD-INR pair do not exceed USD 15 million, says SEBI 

The SEBI has increased the limits in the rupee-dollar currency pair for foreign portfolio investors (FPIs) in the currency derivatives segment (for both long and short positions) from $10 million to $15 million without having any underlying exposure.

SEBI in a notification on Wednesday said, “FPIs may take long as well as short positions per stock exchange upto the following limit without having to establish the existence of any underlying exposure:

(i) USD-INR currency pair: USD 15 million;
(ii) EUR-INR, GBP-INR and JPY-INR currency pairs (all put together): USD 5 million”

SEBI further said, “FPIs shall ensure that their short positions at a stock exchange across all contracts in USD-INR pair do not exceed USD 15 million and do not exceed USD 5 million in EUR-INR, GBP-INR and JPY-INR pairs, all put together.”

In the event a FPI breaches the short position limit, stock exchanges shall restrict the FPI from increasing its existing short positions or creating new short positions in the currency pair till such time FPI complies with the said requirement.

To take long positions in excess of USD 15 million in USD-INR pair and in excess of USD 5 million in EUR-INR, GBP-INR and JPY-INR pairs, all put together, FPIs shall be required to have an underlying exposure in Indian debt or equity securities, including units of equity/debt mutual funds.

F&O total turnover stood at Rs 1,81,220.87 crore on April 8 and the total number of contracts traded on the day were 71,37,137.