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QBiz: SEBI Eases KYC Guidelines; Sudden Plunge in Stock Market

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1. Relief for FPIs as Sebi Eases KYC Guidelines

The Securities and Exchange Board of India (Sebi) on Friday, 21 September, relaxed know-your-client (KYC) requirements norms for foreign portfolio investors (FPIs).

After considering the interim recommendations of the SEBI working group under the chairmanship of Harun R. Khan, a former deputy governor of the Reserve Bank of India, the capital markets regulator said beneficial ownership criteria in Prevention of Money Laundering (Maintenance of Records) Rules, 2005, or PMLA Rules, should be made applicable for purpose of KYC and not for determining eligibility of FPIs.

(Source: Livemint)

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2. Reliance Shuts Its Only Oil Field in KG-D6 Block After Reserves Dry Up

Reliance Industries Ltd has shut its only oil field (MA-D26) in the Krishna-Godavari basin block (KG-D6) after the reserves depleted completely, closing the door on an asset in which it had spent close to $2 billion.

Mukesh Ambani-owned Reliance on Friday announced that the MA (D26) field has ceased production, a decade after it started producing oil in September 2008.

Post cessation, activities related to safe shutdown of the field are underway, it said in a statement.

(Source: Business Line)

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3. RBI Announces Norms for Co-Origination of Priority Sector Loans by Banks, NBFCs

The Reserve Bank Friday announced guidelines for co-origination of priority sector loans by banks and NBFCs with a view to enhancing flow of funds to the sector at competitive rates.

As per the norms issued by the RBI for all scheduled commercial banks (excluding Regional Rural Banks and Small Finance Banks) and Non-Banking Financial Companies – Non-Deposit taking- Systemically Important (NBFC-ND-SIs), the sharing of risks and rewards between these entities should be in a manner that enables appropriate alignment of respective business objectives, as per their mutual agreement.

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4. Sensex Skips a Heartbeat! NBFCs Drive Market Down 1,100 Points, Recovers Soon After

The Sensex and Nifty crashed in afternoon trade amid heavy selling in housing finance companies stocks. The stocks of non-banking finance companies (NBFCs) crashed today and spooked Sensex and Nifty which fell nearly 1,128 points and 368 points, respectively. However, the indices later recovered on management of these companies allaying concerns over their financial position.

The stock of Dewan Housing Finance fell 59.67 per cent or 364 points to a new low of 246.25, the most among the NBFCs. Other housing finance companies such as India Bulls Housing Finance, LIC Housing, L&T Finance Holding stocks too fell in afternoon trade.

(Source: Business Today)

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5. NSE, LSE Join Hands for Dual Listing of Masala Bonds

National Stock Exchange of India (NSE) has signed a memorandum of understanding (MoU) with London Stock Exchange Group (LSEG) to collaborate on creating a dual listing route for Masala bonds and foreign currency bonds of Indian issuers.

LSEG has listed 46 Masala bonds, which have raised an equivalent of more than $5 billion. The two exchanges will look to provide a route for Masala bonds and foreign currency bonds of Indian issuers listed on London Stock Exchange to be dual listed on NSE’s International Exchange, NSE IFSC Ltd, in Gujarat International Finance Tech (GIFT) City.

Similarly, Masala bonds and foreign currency bonds of Indian issuers listed on NSE IFSC in GIFT City will be dual listed on the London Stock Exchange.

(Source: Livemint)

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6. Fitch Raises India’s Growth Forecast to 7.8% for FY19

Fitch Ratings today upgraded India's growth forecast for the fiscal year 2018-19 to 7.8 percent, from 7.4 percent projected earlier.

In its Global Economic Outlook, Fitch, however, flagged tightening of financial conditions, rising oil bill and weak bank balance sheets as headwinds to growth.

“We have revised up our forecast for FY19 growth to 7.8 percent from 7.4 percent on the back of the better-than-expected Q2FY18 out-turn. India’s growth likely peaked in April-June though”, said Fitch Ratings.

(Source: BloombergQuint)

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7. Rupee Strengthens for Second Straight Day

A weakening dollar, unwinding of positions in the offshore market and continued speculation of stronger measures to protect the rupee, helped the Indian unit recover for a second consecutive trading day.

The rupee closed at 72.20 per dollar in trade on Friday, 21 September.

The Indian currency gained 53 paise to trade at more than a two-week high of 71.85 per dollar compared with Wednesday’s close of 72.37. The local unit recovered almost 1.5 percent in the last two sessions, having hit an all-time low of 72.98 earlier this week. Markets were closed for a local holiday on Thursday.

(Source: BloombergQuint)

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8. Omaxe Chairman Rohtas Goel Dragged to NCLT by Younger Brother

Realty group Omaxe and its chairman Rohtas Goel have been dragged to the National Company Law Tribunal by his younger brother Sunil Goel, alleging mismanagement into the affairs of the company. Sunil Goel, who was removed as a joint managing director last year, also sought his reinstatement and also prayed for a status quo ante of the company on 27 September, 2017. Omaxe group has termed the allegations of Sunil Goel as “false and frivolous”.

The Chandigarh bench of NCLT heard the matter on September 19 and did not grant any stay. It has posted the matter on 16 November for hearing. The NCLT has observed that the petitioner has only 1.84 percent stake in Omaxe and sought a special waiver under Section 244 of the Companies Act to be eligible to file such a matter.

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9. Finance Ministry Officials to Brief Parliamentary Panel on Ponzi Scheme Bill

Senior finance ministry officials will brief a parliamentary committee later this week on a Bill to ban ponzi schemes. The Banning of Unregulated Deposit Schemes Bill, 2018, which proposes to ban unregulated deposits and has a 10-year jail term provision, was introduced in the Lok Sabha in July during Parliament’s Monsoon Session. The Bill was later referred to the Parliament’s Standing Committee on Finance on the ground that it requires thorough deliberations.

Officials of department of Financial Services will brief the panel on the Banning of Unregulated Deposit Schemes Bill, 2018, according to a Lok Sabha bulletin. The Bill seeks to put in place a mechanism by which the depositors can be repaid without delay by attaching the assets of the defaulting establishments, as per its statement of objects and reasons.

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Topics:  QBiz   Business News 

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