Trading Plans Review: Sebi proposes 2 different disclosure formats, setting of price limits - Moneycontrol

The group also suggested allowing insiders to set a price limit during the formulation of the TP.

Company insiders may be allowed to mask their personal details, such as name and designation, while notifying their trading plan (TP) to the public. They may be asked to make full disclosure only to the exchanges, according to a new consultation paper put out by the market regulator.

They may also be allowed to set price limits during the formulation of the TP, such as an upper limit for buy trades and lower limit for sell trades.

In a consultation paper dated November 24, the Securities and Exchange Board of India (SEBI) have suggested provisions to give more flexibility to trading plans under the Sebi (Prohibition of Insider Trading) Regulations 2015.

Also read: Super30: Two leading brokerages keep an illegal investment advisory afloat

TPs were introduced to help people who are constantly in possession of unpublished price-sensitive information (UPSI). But since the introduction of the TPs, the market feedback has been that the requirements are onerous to meet and therefore TPs weren't popular, according to the consultation paper.

Subsequently, Sebi set up a Working Group to review the TP provisions.

One of the suggestions was on the disclosure of personal details of insiders in TP.

The consultation paper said: "As per Reg 5(5) of PIT Regulations, upon approval of the trading plan, the compliance officer shall notify the TP to the stock exchanges on which the securities of the Company are listed. Such disclosure of TP enables investors in the market at large to take informed decision. While there is no prescribed format for disclosure of the TP, it typically contains the personal details (Name and Designation) of the insider along with the trades planned to be undertaken."

To strike a balance between respecting the privacy of the insider and preventing misuse by the insider, the group has suggested that the insider makes two separate disclosures of the TP. One will will have all the details and that will be filed confidentially with the exchanges. The other will be disclosure without the personal details to the public through the stock exchange.

The. group has submitted various proposals such as reducing the minimum cool-off period between disclosure of TP and implementation of TP to four months from six months; reducing the minimum coverage period to two months from twelve months; and doing away with the black-out period for trading in TP.

Also read: Urban Infra VC Fund: SAT quashes Sebi restrictions placed on directors, trustees and MD&CEO

On allowing insiders to set price limits for their trading plans, the consultation paper explained, "If price of the security, during execution, is outside the price limit set by the insider, the trade shall not be executed. If no price limit is opted for, the trade has to be undertaken irrespective of the prevailing price."

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RBI supersedes Mumbai-based Abhyudaya Cooperative Bank’s board for 12 months - CNBCTV18

In yet another instance of the regulator taking action against a bank due to governance-related concerns, the Reserve Bank of India on Friday said it had superseded the board of Abhyudaya Cooperative Bank for a period of 12 months. It also appointed Satya Prakash Pathak, former Chief General Manager of State Bank of India as the ‘Administrator’ to manage the affairs of the bank during this period.

The regulator said that this action was necessitated due to “certain material concerns emanating from poor governance standards observed in the bank”. However, RBI clarified, that no business restrictions have been placed on the bank, and it would continue to carry on its normal banking activities as is hitherto, under the guidance of the Administrator.

“In exercise of the powers conferred under Section 36 AAA read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), the Reserve Bank has today superseded the Board of Directors of Abhyudaya Cooperative Bank Ltd., for a period of 12 months,” RBI said in a public notification on its website.

The Reserve Bank has also appointed a “Committee of Advisors” to assist the Administrator in discharging his duties. The members of the “Committee of Advisors” are Venkatesh Hegde (former General Manager, SBI), Mahendra Chhajed (Chartered Accountant); and Suhas Gokhale (former MD, COSMOS Co-operative Bank Limited).

In October, there was a fake document doing the rounds on social media in October, claiming RBI had cancelled the licence of Abhyudaya Cooperative Bank. An RBI official had clarified this was not true at the time.

The Mumbai-based cooperative bank has 109 branches, and 113 ATMs, as per its website. As of March 31, 2021, the bank had deposits of ₹10,952 crore versus ₹10,838 crore in the previous fiscal. Its loans and advances were at ₹6,711 crore in FY21, compared to ₹6,654 crore in FY20, as per information available on its website.

The RBI has in the past superseded boards of Yes Bank, Dewan Housing Finance, SREI twins, and Reliance Capital in the past for various reasons.

(Edited by : Pihu Yadav)

First Published: Nov 24, 2023 6:11 PM IST

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RBI penalises ₹10.34 crore on Citibank, BoB, IOB for non-compliance - Hindustan Times

PTI |

Nov 24, 2023 06:35 PM IST

Indian Overseas Bank was slapped with a ₹1 crore fine for contravention of directions concerning loans and advances.

The Reserve Bank on Friday imposed penalties totalling ₹10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for contravention of various regulatory norms.

The highest penalty of ₹5 crore has been imposed on Citibank NA for non-compliance of norms. (REPRESENTATIVE PHOTO)

The highest penalty of ₹5 crore has been imposed on Citibank NA for non-compliance of norms related to depositor education and awareness fund scheme, and code of conduct on outsourcing of financial services, the RBI said in a statement.

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A fine of ₹4.34 core was imposed on the state-owned Bank of Baroda for violation of certain directions related to the creation of a central repository of large common exposures, and others, another release said.

Chennai-based public sector lender Indian Overseas Bank was slapped with a ₹1 crore fine for contravention of directions concerning loans and advances.

In all three cases, the Reserve Bank of India said, penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

• Reserve Bank Of India
• Indian Overseas Bank
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6 things that changed for the stock market overnight - Gift Nifty, US jobless claims to drop in Nvidia shares | Mint - Mint

Asian markets traded mostly lower and US stocks gained overnight while treasury yields rose on expectations that US inflation will remain high.

The domestic benchmark indices ended Wednesday’s volatile session marginally higher amid mixed global cues.

The Sensex closed 92.47 points, or 0.14%, higher at 66,023.24, while the Nifty 50 settled 28.45 points, or 0.14%, higher at 19,811.85.

“Overall, the market is likely to remain lacklustre and consolidate in a range in the absence of any major events, and start of holiday season," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — November 23

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded in a narrow range on Thursday after US stocks gained while Treasuries fell on data showing US consumers expect inflation to persist.

Japan’s markets are shut for a public holiday. South Korea’s Kospi rose 0.18%, while Kosdaq rose 0.16%.

Hong Kong’s Hang Seng index futures were lower at 17,692 compared with the HSI’s close of 17,734.6.

Australia’s S&P/ASX 200 fell 0.58%.

Meanwhile, Gift Nifty was trading around 19,891 levels as against Nifty futures’ previous close of 19,887, indicating a flat start for the Indian benchmark indices.

Also Read: Stocks to Watch: Honasa Consumer, Welspun Corp, InterGlobe Aviation, TVS Motor

Wall Street

US stock market indices ended higher on Wednesday amid optimism that the US Federal Reserve may not hike interest rates further and that the economy is still resilient.

The Dow Jones Industrial Average rallied 184.74 points, or 0.53%, to 35,273.03, while the S&P 500 rose 18.43 points, or 0.41%, to 4,556.62. The Nasdaq Composite ended 65.88 points, or 0.46%, higher at 14,265.86.

The yield on benchmark 10-year notes rose 1.3 basis points (bps) to 4.431%. The two-year's yield, which reflects interest rate expectations, rose 5.1 bps to 4.934%. 

Among stocks, Nvidia share price declined 2.5% after the chip designer warned US export curbs could lead to a steep drop in sales in China while it forecast overall fourth-quarter revenue above Wall Street targets.

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Deere & Co shares fell 3.1% after the farm equipment maker forecast 2024 profit below analysts' estimates.

The US stock market and bond markets will remain closed on Thursday for the Thanksgiving holiday.

US jobless claims

The number of Americans filing new claims for unemployment benefits fell more than expected last week. Initial claims for state unemployment benefits dropped 24,000 to a seasonally adjusted 209,000 for the week ended November 18. Economists polled by Reuters had forecast 226,000 claims for the latest week.

Though the weekly jobless claims report from the Labor Department also showed unemployment rolls declining for the first-time since mid-September, they remained near the highs for this year.

Nvidia shares drop

Nvidia share price dropped 2.46% to $487.16 on Wednesday after the company’s downbeat China sales outlook. The company had a day before reported revenue well above Wall Street expectations, but said it expects a steep drop in fourth-quarter sales in China - a key revenue generator - in the wake of new US rules.

Nvidia forecast adjusted gross margins of 75.5% for the fourth quarter, above analyst estimates of 72.64%. Nvidia forecast current-quarter revenue of $20 billion, plus or minus 2%.

Also Read: Dividend stocks: Amrutanjan Health Care, Premco Global, Procter & Gamble Health shares to trade ex-dividend today

Nvidia is set to take a hit from the vastly expanded US export controls on what the company can sell to China. Sales of the affected chips made up nearly a quarter of Nvidia's datacenter sales in the past few quarters, Reuters reported.

“Export controls will have a negative effect on our China business, and we do not have good visibility into the magnitude of that impact even over the long term," Chief Financial Officer Colette Kress said.

Oil prices plunge

Crude oil prices plunged 4% on Wednesday after the Organisation of Petroleum Exporting Countries and its allies (OPEC+) unexpectedly delayed the policy meeting planned for Sunday, raising questions about the future course of crude production cuts. 

Brent crude was trading 0.59% lower at $81.96 a barrel, while US West Texas Intermediate crude fell 0.56% to $76.67 a barrel.

Read here: Oil prices slump 4% after OPEC+ postpones output policy meeting to November 30; Brent drops to $79/bbl

US inflation expectations rises

US consumer inflation expectations rose for a second straight month in November, according to a survey released Wednesday that may create some worry for Federal Reserve policymakers.

American households see inflation accelerating to 4.5% over the next year, up from 4.2% in October and from 3.2% in September, the University of Michigan's twice-monthly survey of consumer sentiment showed. That is the highest rate since April, Reuters reported.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 23 Nov 2023, 07:17 AM IST

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Raymond founder Vijaypat Singhania laments giving ‘everything’ to son Gautam - Hindustan Times

ByHT News Desk, New Delhi

Nov 23, 2023 08:33 PM IST

The ex-textile magnate handed over the company's reigns to the latter in 2015.

Raymond Group founder Vijaypat Singhania on Thursday lamented making the ‘stupid’ mistake of giving ‘everything’ to son and current Chairman Gautam Singhania. His statement comes at a time when the family is seeing tumultuous times, as Gautam has separated from wife Nawaz Modi, who has demanded 75% of his fortune.

Gautam Singhania, MD of Raymond Ltd

Also Read: Raymond Group Chairman Gautam Singhania announces separation from wife Nawaz

The former Raymond boss, meanwhile, further alleged that Gautam ‘backed out’ after promising to give him some parts of the company.

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“Parents should think very carefully before they give away everything to their children,” Vijaypat Singhania, who handed over the reigns of Raymond Group to Gautam in 2015, told Business Today in an exclusive interview.

“I have no business. He (Gautam) had agreed to give me some parts of the company, but of course, he backed out. So, I have nothing. I gave him everything. By mistake, I was left with some money on which I am surviving today. Otherwise, I would have been on the road,” the ex-textile magnate added.

The Raymond boss would be ‘happy to see me on the road,’ he also stated. In 2017, the father had accused the son of ‘pushing’ him out of the JK House building, the family property in south Mumbai.

Vijaypat Singhania on Gautam-Nawaz episode

While he refused to comment on the recent developments in the family, including the allegations of assault by Nawaz Modi against Gautam, the retired industrialist noted how she could easily get what comes under the Hindu Marriage Act (50% of husband's property in case of separation).

“Why is she fighting for 75%? Gautam is never going to give in, because his motto is - buy everybody and buy everything. That is what he did with me. By fighting like this, I don't think she'll get much. Unless she has, maybe, a person like Harish Salve, Mukul Rohatgi, Kapil Sibal,” he asked.

However, as Nawaz is a Parsi, she must check if she is covered under the Hindu Marriage Act, the business veteran said.

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  Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

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SBI set to increase interest rate after RBI's higher risk weight norms - Business Standard

State Bank of India (SBI), the country’s largest lender, will increase interest rates on unsecured loans — personal loans — following the banking regulator’s move to mandate higher risk weighting for those segments.The increase in risk weighting for unsecured loans will have an impact of 2-3 basis points on SBI’s net interest margin (NIM), Chairman Dinesh Khara said on Wednesday.

“If my cost of funds are going up, I will certainly increase interest rates. We have to do the calculation,” the SBI chairman said on Wednesday on the sidelines on a banking event.
 

Last week the Reserve Bank of India increased risk weighting for such loans from 100 per cent to 125 per cent. Risk weighting on bank loans to higher NBFCs too has been increased by 25 percentage points.

The new norms are applicable to both new and outstanding loans.
 

“The reflection of due diligence is the gross non-performing assets. We have gross NPAs of 0.7 per cent, which is the total retail book, including the unsecured segment, reflective of our due diligence and control mechanisms,” Khara said.
 

“There will be an impact on NIMs by 2-3 basis points in the next quarter,” he added.
 

SBI’s NIM for domestic operations lowered by 12 basis points to 3.43 per cent in Q2FY24 from 3.55 per cent in Q2FY23.

Sequentially, the NIM fell from 3.47 per cent in Q1FY24.
 

R Subramaniakumar, managing director and chief executive officer (CEO), RBL Bank, said while the lender was adequately capitalised, the new norms would be impacting the credit card business.
 

“RBL Bank’s CET1 [common equity tier-1] is at 15.15 per cent and we are adequately capitalised. We gave the capital to risk-weighted asset ratio at 17.07 per cent. It will have an impact on our credit card business. The impact on our overall business will be 60 bps,” Subramaniakumar said.
 

The RBL Bank CEO said despite the tighter norms the bank would be able to achieve the growth rate mentioned in the annual plan because the profits would aid in facilitating it.
 

“We have no plans of raising capital. The exposure to NBFCs, which will be impacted, is minimal,” he said.
 

Bankers said the signal from the regulator was to go slow on unsecured loans.
 

“The intention is to slow (and) make it more penal. It is too early to say the response from our end as we don’t have a large unsecured loan book,” said Hitendra Dave, CEO of HSBC India.
 

Earlier in the day, RBI Governor Shaktikanta Das said the recent measures were aimed at sustainability and were pre-emptive in nature.
 

At the same time, Das said the regulator had exempted sectors that were major growth drivers from higher risk weighting.
 

“We recently announced a few macro prudential measures in the overall interests of sustainability. These measures are pre-emptive in nature. They are calibrated and targeted,” Das said.
 

“It may be relevant to note that major growth drivers like loans for housing, vehicles, and MSMEs (micro, small, and medium enterprises) have been excluded from these measures,” Das added.
 

Das said banks, NBFCs and other financial entities must continue to do stress-testing of their books. 

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Tata Technologies IPO Oversubscribed 3.3x, Signaling Strong Investor Enthusiasm - Investing.com India

By Aayush Khanna

In a historic move, Tata Technologies, part of the esteemed Tata Group, has opened its INR 3,042.51-crore IPO for subscription—the first from the Tata conglomerate in over two decades. The offering has garnered significant interest, being oversubscribed 3.3 times, with investors snapping up 14.57 crore equity shares against the initial offer of 4.5 crore.

Notable trends in subscription data reveal robust demand from retail investors (2.87 times), high-net-worth individuals (5.17 times), and qualified institutional buyers (2.22 times). Employees and shareholders of Tata Motors (NS:) also demonstrated keen interest, subscribing 0.61 times and 4.48 times, respectively.

Tata Technologies, a Pune-based global engineering services company, specializes in providing product development and digital solutions to global original equipment manufacturers (OEMs). The IPO, set to close on 24 November 2023, comes with an offer-for-sale (OFS) structure by promoters Tata Motors and investors Alpha TC Holdings and Tata Capital Growth Fund 1.

The offering, priced in the range of INR 475-500 per share, has generated excitement in the grey market, trading at a substantial 70% premium. Market analysts, citing the company's stellar performance, industry growth potential, and the trusted Tata brand, anticipate a positive listing.

With marquee names participating in the anchor book, including Copthall Mauritius Investment, Goldman Sachs (NYSE:), and BNP Paribas (EPA:) Funds, the IPO reflects favorable valuations, strong business prospects, and a sound financial foundation, as acknowledged by leading brokerages. At the upper price band, Tata Technologies' stock is valued at a PE multiple of 32.53 of its FY23 diluted EPS, with a market capitalization exceeding INR 20,000 crore.

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