SEBI STUDY
Sebi targeting F&O froth but longer term investors may get caught in cross-firing
Sebi's new regulations on F&O trading aim to standardize charges and reduce excessive profits for brokers. This may lead to higher costs for long-term investors and potential changes in brokerage models. Retail participation in options trading is being closely monitored for its impact on savings.
Open to probe, regulations will help doing business: Axis My India chief on alleged stock market manipulation through exit polls
Facing scrutiny, Axis My India's Pradeep Gupta supports regulations for pollsters to improve business practices and credibility. Calls demands to ban exit polls 'childish' and stresses the importance of regulations.
NBFC Avanse Financial files draft prospectus for Rs 3,500 crore-IPO
The Rs 3,500 crore Avanse Financial IPO comprises a fresh equity sale of Rs 1,000 crore and an offer for sale (OFS) of up to Rs 2,500 crore by the existing shareholders. Under the OFS, Olive Vine Investment, International Finance Corporation, and Kedaara Capital Growth Fund III will offload shares. Net proceeds for the issue will be utilised for augmenting the capital base to meet the future capital requirements arising out of the growth of business and assets.
Retail investors play with a time bomb but RBI and Sebi are watching
Futures and options (F&O) trading involves contracts that derive their value from an underlying asset, such as stocks and commodities. Futures contracts obligate the buyer and seller to transact at a predetermined future date and price, while options give the holder the right, but not the obligation, to buy or sell the asset at a set price within a specific period.
RBI monitoring F&O frenzy in India along with Sebi: Shaktikanta Das
The increased involvement of retail traders, many of whom are experiencing losses in the futures and options (F&O) market, has drawn regulatory scrutiny. A joint early warning group consisting of the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) is closely monitoring this situation.
Free course from Sebi, NISM for stock market investors. How to enrol?
Indian capital markets regulator the Securities and Exchange Board of India (Sebi) launched a free, voluntary online investor certification examination on Tuesday, with an aim to help individuals, especially beginners, gain comprehensive knowledge about stock market investing.
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LIC, YES Bank among 78 stocks that can enter F&O list if Sebi changes rules
Sebi proposes to revise criteria for derivatives market, potentially adding 78 stocks like LIC, Zomato, YES Bank. Changes include higher thresholds for order size, market-wide position limits, and introducing Product Success Framework for single-stock derivatives after 6 months.
InGovern gets defamation notice over its report on Religare
Religare alleged that InGovern, founded by Shriram Subramanian, had published a defamatory report on its website without any verification and without studying information available in the public domain.
Retail investors' participation in F&O trading surges due to quick profit potential: Experts
Finance minister Nirmala Sitharaman and chief economic advisor V Anantha Nageswaran have recently flagged the growing risk of F&O trading for retail investors. In November 2023, Sebi chief Madhabi Puri Buch also cautioned investors against heavy bets on F&O
Why Sebi's decision on AIF certification is need of the hour and should be welcomed
Sebi mandates that at least one key personnel on the investment team of an AIF manager must have NISM certification. The regulation aims to signal legitimacy, promote lifelong learning, and create a talent pool in the investment industry.
Are concerns over F&O retail activity overblown?
Options turnover in the total F&O turnover has been calculated on the basis of the premium and not the strike value (which is used by NSE and BSE to calculate their turnover officially).
Top regulators, govt departments join forces to counter pesky calls, online fraud
Regulators such as RBI, SEBI, Trai, along with government departments like the Ministry of Home Affairs, Ministry of Consumer Affairs, and DoT, convened on May 21 to address the issue of pesky communications and online financial fraud. Discussions centered on tightening KYC rules, improving information sharing among stakeholders, and enhancing consent mechanisms. Trai's joint committee of regulators is spearheading collaborative efforts to tackle digital regulatory implications.
Unchecked explosion in retail F&O trading may dent household finances, warns Nirmala Sitharaman
The Finance Minister called on NSE, BSE and Sebi to brainstorm together and chalk out robust compliances and regulatory standards to protect investors' interests. BSE and NSE were asked to mitigate systemic risk and ensure market stability. Sithraman said this in at a BSE event in Mumbai.
D-Street Scam? Harsh Goenka warns of Harshad Mehta-era scam amid booming markets
RPG Group Chairman Harsh Goenka has raised alarm over a resurgence of stock market malpractices akin to the Harshad Mehta/Ketan Parekh era, particularly in Kolkata. He expressed concerns about promoters inflating profits and colluding with brokers to artificially boost stock prices to unsustainable levels. Goenka urged SEBI and the Finance Ministry to step in and investigate to protect small investors from potential losses. The warning follows a significant market decline, with the BSE Sensex and NSE's Nifty both experiencing sharp drops.
U-turn! 81% smallcap mutual funds underperform their benchmarks in 2024 so far
Around 81% of smallcap mutual funds have underperformed their benchmarks in 2024. Only five out of 27 schemes managed to outperform. The smallcap space faces challenges due to overvaluation and regulatory pressures, impacting investor decisions and fund performances.
The case for transparency: Why India's broking industry needs to put clients first
India’s broking industry has experienced massive growth ever since the years of the pandemic. According to reports from January 2024, 4.9 million demat accounts were opened in December of 2023 itself, with the year ending at a total tally of 139 million.
Many mid- and small-cap mutual funds have not fared well in Sebi’s stress test; Find out if your MFs are safe
Are investors drawing the right conclusions? Are some funds illprepared for a doomsday scenario? Should you buy or exit a fund based on these test results? We attempt to filter out the noise around the much-hyped stress tests to find out whether investors need to be worried.
5 smallcap mutual funds delivered over 25% CAGR in 5 years. What's next?
We considered all the small cap schemes that have been in the market for five years for the study. We considered regular and growth options. We considered daily rolling returns of small cap schemes for the analysis. Daily rolling returns were calculated from March 13, 2019 to March 13, 2024.
We will not jump in to buy all the PSU stocks that have corrected: Sunil Subramaniam
Sunil Subramaniam of Sundaram Mutual advises caution in investing in PSU stocks due to liquidity concerns and fundamental issues. Despite strong smallcap and midcap earnings, it is recommended to wait for a fundamental reset and be selective in the PSU space. The stress test reveals that if there is a sudden shock, a whiplash of some investor pulling out, will you have trouble in selling your most appreciated smallcaps?
Sebi's call for caution in small-caps keeps MFs on their toes
Immediately, it is quite likely that most mutual funds will impose restrictions on incremental investments in mid-cap and small-cap schemes or even increase the exit load - a fee for early exit - for this category to make hasty redemptions more expensive.
No need to panic; SEBI as a regulator will always be a little more cautious: Feroze Azeez
According to Feroze Azeez, Deputy CEO, Anand Rathi Wealth, SEBI's notification to smallcap fund managers is part of a larger move to improve liquidity and protect investors. The risk-reward ratio needs consideration before investing in small and midcap stocks. SEBI's directive may enhance institutional research in the under-researched Indian capital market.
MCA asks Sebi to share details on Zee, could summon Puneet Goenka
The ministry's preliminary probe had found appropriation of ZEEL's fixed deposits (FDs) by Yes Bank, for squaring off loans of related entities of Essel Group. ZEEL is part of the Essel Group promoted by Subhash Chandra and his family.
More than 55% F&O traders buying more to average out losses: Study
Recently, the Securities and Exchange Board of India (SEBI) issued a report, stating that 9 out of 10 individual traders in the equity F&O segment incurred an average loss of Rs 1.1 lakh during FY22, with most of them operating in the options segment.
From consumer to custodian: The changing face of wealth management for India’s elite
For instance, in 2009, SEBI struck down the entry loads on mutual funds, forcing distributors to change their business models, and the value chain over the next decade became more manufacturer-oriented. The excesses in the system in terms of commissions to distributors or manufacturers normalised over the years. With the role of passive and factor-based strategies coming in and the sheer size growing, net returns of manufacturers did not get affected, but the economies of scale passed on to the investors, reducing their cost of investing even further, to 0.75-0.8% for the same AUM.
Desperate retail investors drive India's options craze
The Securities and Exchange Board of India’s crackdown on social-media influencers peddling advice is a losing battle. Although nine out of 10 individual traders are losing money, retail investors can’t get enough of derivatives. A smartphone-led gamification of investing is complete.
Confused and surprised at investor interest in F&Os, says Sebi chief
"I must admit, I am always a little confused and surprised as to why people continue to do that (bet in futures and options) knowing that the odds are not in their favour at all," the Sebi chairperson said during a BSE event.
India's growth needs to be in tandem with sustainable economy: Sebi's Ashwani Bhatia
"The Indian economy is at a stage of rapid growth. However, this growth needs to be accompanied with the transition to a sustainable economy. As regulators, we are putting in place holistic regulatory framework covering aspects of financing or disclosures and transparency," Ashwani Bhatia said.
More boards across the world are seeing strategic importance of ESG compliance
The importance of environmental, social, and corporate governance (ESG) reporting is increasing globally, and companies with better ESG ratings have outperformed their peers in the stock market. As regulatory norms emerge in India, companies need to develop their ESG practices and boards must enable sustainable reporting practices.
Sebi initiates study on fees and expenses charged by mutual funds
This study is part of ongoing reviews that Sebi conducts to see whether existing regulations reflect the market conditions and their impact on investor interest. The reviews are in consultation with the stakeholders.
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