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QBiz: SEBI, Bourses Step up Surveillance for Poll Results & More

1. SEBI, Bourses Step up Surveillance for Poll Results

Securities and Exchange Board of India and stock exchanges have enhanced their surveillance measures to curb possible manipulative practices as well as excessive volatility in the market on Thursday when the general election results will be announced.

Markets are likely to witness significant movements on Thursday, especially after a rally on Monday following exit polls showed that the Bharatiya Janata Party-led National Democratic Alliance is expected to come back to power.

Surveillance and monitoring of markets have been beefed up by SEBI and stock exchanges for the trading session on Thursday, according to a senior official.

(Source: BloombergQuint)

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2. Indusind Bank Profit Misses Estimates on Higher Provisions for IL&FS

IndusInd Bank Ltd.’s quarterly profit missed estimates as it categorised loans to the Infrastructure Leasing and Financial Services group as non-performing, leading to an increase in provisions.

Net profit fell 62 percent year-on-year to Rs 360 crore in the quarter-ended March, according to the private lender’s exchange filing. That’s compares with the Rs 710-crore consensus estimate of analysts polled by Bloomberg.

Net interest income, or the bank’s core income, rose 11 percent year-on-year to Rs 2,232 crore—in line with the Rs 2,410-crore estimate.

(Source: BloombergQuint)

3. Fortis Investors Move SEBI Over Delay in IHH Open Offer

Some minority shareholders of Fortis Healthcare Ltd have appealed to the Securities and Exchange Board of India (Sebi) to issue directions to Malaysian firm IHH Healthcare Bhd to pay interest to shareholders for the delay in the open offer to buy an additional 26 percent stake in Fortis Healthcare.

The offer was to be open for subscription from 18 December till 1 January. However, IHH Healthcare could not proceed with the open offer following a Supreme Court’s order to put the transaction on hold.

The shareholders have also appealed to Sebi to issue directions to IHH Healthcare to ensure early resumption of the open offer tendering process, according to two people aware of the matter.

(Source: Livemint)

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4. Snapdeal May Acquire Shopclues at a Likely Valuation of $250 M

Online retailer Snapdeal is carrying out due diligence for a potential acquisition of its rival ShopClues at a valuation of 200-250 million dollars, said people familiar with the matter.

The potential acquisition will mark further consolidation in India’s e-commerce sphere, which saw market leader Flipkart acquired by Walmart last year.

Online media platform Entrackr reported on 9 April that ShopClues was in talks for a potential acquisition by Snapdeal.

“Nexus (Venture Partners) is the common investor between the two companies and the one that initiated this deal," said one the persons mentioned above.

(Source: Livemint)

5. Indigo Clocks Record Market Share at 49.9% in April

IndiGo, the airline run by InterGlobe Aviation Ltd., has clocked 49.9 percent market share in the domestic market during April, its highest ever since inception as a schedule carrier in 2006, as it flew a record 54.81 lakh passengers during the month, according to the latest data from Directorate General of Civil Aviation (DGCA).

IndiGo, which had a market share of 46.9 percent in March, carried 54.41 lakh domestic passengers during the month.

"We achieved our highest market share on back of the large number of planes ordered by us, which helped increased our capacity substantially," said an IndiGo official, who didn't want to be named.

(Source: Livemint)

6. Appellate Tribunal Asks NSE to Transfer Rs 687 Cr to SEBI Within Two Weeks

The Securities and Appellate Tribunal (SAT) on Wednesday put a stay on disgorgement orders issued by the Securities and Exchange Board of India (Sebi) against the National Stock Exchange of India (NSE) in the co-location case.

The tribunal directed the NSE to transfer Rs 687.5 crore from the escrow account to the Securities and Exchange Board of India (Sebi) within two weeks. This will be kept in an interest-bearing account till the result of the appeal.

The SAT further directed NSE to place all revenues emanating from its co-location facility in the same escrow account and furnish details of the account to Sebi periodically. At present, the escrow account has Rs 2,344 crore deposited in it.

(Source: Business Standard)

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7. RBI Rules Out Credit Line for NBFCs, Discusses Revised Bad Loan Circular

The Reserve Bank of India (RBI) board on Tuesday suggested not extending a credit line to struggling non-banking financial companies (NBFCs) because it felt there was no systemic liquidity issue but there were solvency concerns in some large entities.

The board, headed by RBI Governor Shaktikanta Das, met in Chennai and discussed the NBFC crisis as well as a revised circular that would replace the controversial “resolution of stressed assets” framework released by the central bank on 12 February , 2018.

The RBI is working on a liquidity framework for the NBFC sector and that may be released soon. Though an asset quality review (AQR) is not on the cards for NBFCs, the board was informed the central bank had called the management of large NBFCs and asked them to submit plans, with timelines, for capital infusion and asset monetisation.

(Source: Business Standard)

8. NSE Co-Location Scam: CBI to Go After the High and Mighty

KR Srivats The Central Bureau of Investigation (CBI) has decided to investigate the “wider angle” and “wider conspiracy” involved in the Rs 50,000-crore NSE co-location scam.

This investigative agency has in a status report – submitted to the Delhi High Court — on its probe in the NSE co-location scam assured the Court that it will not limit itself to the First Information Report (FIR) filed in 2017, which was seen by critics to be very narrow in scope.

The CBI has now assured the Court that it would not hesitate to examine all the people and aspects mentioned in the public interest litigation (PIL) filed by Shantanu Guha Roy, no matter how high the officer or public servant is in the ranks of the government.

(Source: The Hindu Business Line)

Also Read: PNB may lead next round of PSU bank merger in Sept

9. HDFC Bank Board Nod for Share-Split

The board of directors of HDFC Bank, on Wednesday, approved a proposal to split the lender’s share from one equity share of face value of Rs 2 each to two shares of face value Rs 1 each.

“Owing to the bank’s strong financial performance and sound asset quality, the market price of the bank’s equity shares has grown steadily over the past several years,” HDFC Bank said in a regulatory filing, adding that the stock split will augment the affordability of the bank’s equity shares and participation of retail and individual investors.

“This will thereby facilitate more liquidity in the bank’s equity shares, sub-division of the equity shares is proposed,” it said.

(Source: The Hindu Business Line)

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