According to industry players, over 50 FMPs have exposure to Zee Group companies. Illustration: Dominic Xavier/Rediff.com Mutual fund (MF) houses, with exposure of over Rs 8,000 crore to Zee Group, mostly in their debt schemes, are delaying payments to investors in fixed maturity plans (FMPs). HDFC MF, the country’s largest MF house, has extended the tenure of its FMP by over one year to April 2020. Kotak MF has informed investors that the fund house will make part-payment on maturity, and the rest will be paid when there is recovery from its exposure to Zee Group and other entities. HDFC FMP, which had close to 10 per cent of its net assets exposed to debt papers of Essel Group entities Edisons Infrapower and Multiventures (as of March 31), has proposed extending the scheme’s maturity date by another year to April 29, 2020.As things stand, the FMP is maturing on April 15, 2019. “In case you (unitholders) do not wish to roll over/extend the maturity of the plan, … [Read more...] about Zee’s repayment woes force fund houses to reschedule
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The scrip was the worst hit among the front-line companies on both the indices during the day. Shares of Yes Bank slumped nearly 30 per cent on Tuesday after the company reported a loss of Rs 1,506.64 crore for the fourth quarter ended March 31, owing to rise in provisioning for bad loans. The scrip tanked 29.23 per cent to close at Rs 168 on the BSE. During the day, it plummeted 30.37 per cent to Rs 165.30. At the NSE, shares cracked 29.70 per cent to close at Rs 166.75. The scrip was the worst hit among the front-line companies on both the indices during the day. The company's market valuation plunged by Rs 16,048.56 crore to Rs 38,909.44 crore on the BSE. "Yes Bank opened gap down and fell over 29 per cent today as the street is unhappy with the quarterly numbers which reported a massive net loss of Rs 1,507 crore on the back of provisions which rose nearly seven times," said Umesh Mehta, head of research, Samco Securities Ltd.In terms of traded volume, 206.47 lakh shares were … [Read more...] about How Yes Bank lost Rs 16,049 cr investor money in one day
By Sandeep Shah The hornet’s nest has been stirred again! The news about a reputed stockbroking firm misusing power of attorneys (POA) given by clients in its favour to pledge the shares for its own benefit and the consequential losses suffered by the client due to the inability of the broker to return the shares has made the capital market jittery. The shock wave is not limited to such clients alone, but also to the lending community. Way back in 2010, Sebi had realised that diverse practices were prevalent in the area of obtaining power of attorneys from clients, which gave brokers and/or brokers-cum-depositary participants unfettered powers. During a study of such market practices, Sebi had observed that clients were compelled to issue irrevocable PoAs, which gave broker/s the right to open and close accounts and trade on client’s accounts without consent. In most cases, brokers were not even offering services unless clients gave PoAs. Sebi then constituted a … [Read more...] about How brokerages misuse clients’ power of attorneys & how can investors protect themselves
New Delhi, Dec 6 () Almost 58 per cent stock brokers will invest in 'algorithmic trading or algos' as part of their technology software spends in 2020, which indicates precision and speed in execution of trades will continue to be the focus area for them, a survey by ANMI said on Friday. The StockTech survey, conducted by the Association of National Exchange Members of India (ANMI) that surveyed around 450 trading members across the country, found that besides front-office and back-office software, other technology software that most brokers -- around 58 per cent -- would invest in algorithmic trading or algos. This shows "precision and speed in execution of trades will continue to be the focus areas for brokers even as broking services migrate towards automation and Delivery Instruction Slip (DIS) models," the survey noted. A DIS is used by sellers of securities to instruct their depository participant to debit their demat account. The survey also found that almost 86 per cent of … [Read more...] about About 58 pc brokers to invest in ‘algos’ as part of software spends in 2020: Survey
By Sunil Badala & Amit Ahuja The Securities and Exchange Board of India (Sebi) has introduced welcome changes for foreign portfolio investors (FPI) in its new Sebi (FPI) Regulations 2019, read with its operational guidelines. The key changes include elimination of broadbased requirement, elimination of declarations relating to opaque structures, reduction in FPI categories from three to two. An important change allows appropriately-regulated private banks, merchant banks, broker dealers and swap dealers to invest on behalf of their clients – individuals and family offices. Earlier, private banks and merchant banks were eligible to invest only their proprietary funds as FPIs and investment on behalf of their clients was not permitted. Around February, 2018, Sebi allowed such entities to invest on behalf of their clients by separately registering a collective investment vehicle, which satisfies the broadbased criteria (20 investors). These conditions were found restrictive … [Read more...] about Private banks get to invest client money as FPI: But will it meet client objectives?