MUMBAI: In the years after the Ketan Parekh scam in 2001, the Indian capital market regulator had clamped down on foreign funds that ran protected cell companies or PCCs, which were bankruptcy remote special vehicles catering to many rich international investors betting on Indian shares. These cells had then sparked regulatory concerns because of their opaque nature which masked the identities of actual investors. After more than a decade, PCCs may make a comeback, thanks to Sebi’s new rule that require foreign portfolio investors (FPIs) to disclose the names of ultimate beneficial owners or, the last natural persons who have put money in a fund. The Sebi-constituted panel, led by former RBI deputy governor HR Khan, is understood to be in favour of allowing PCCs in the present regulatory environment, two persons familiar with the subject told ET. “Post-Lehman crisis, more and more foreign investors insist on investing into PCCs which ringfence liabilities. Earlier, … [Read more...] about FPIs bring back age-old PCC model to ringfence liability under new regulation
Funding rounds explained
By S.S.S. Kumar and Aravind Sampath The date: 5 February 2034. In two days’ time, Krishnan Murthy retires after 30 years of service. He has liquidated the equity portion of his retirement savings in the New Pension Scheme (NPS). When he checks his bank balance, he is shocked to find that the amount credited is Rs 5 lakh less than what he had anticipated. Till last week, the equity portion of his NPS corpus was worth Rs 50 lakh. But only Rs 45 lakh is showing in his account. Murthy calls up his NPS fund manager to know what’s wrong. The manager explains that the market fell 6% over the past week due to a mix of the global oil crisis and local budgetary policies. Although the reasons for the decline are normal enough, Murthy bears the brunt of the market agony and loses Rs 5 lakh in the process. Can investors avert risk?Murthy’s story could be that of any investor because risk and expected returns are inseparable. The regulator is yet to wake up to this possibility. … [Read more...] about How safe are market-linked products like the NPS?
If year-end reports are to be believed, CRE (commercial real estate) leasing maintained a rising trend with the segment registering 47 mn.sq.ft, a 30% increase during the first three quarters of 2019, surpassing its previous peak of 2018. It is expected to go past 50 mn.sq.ft in 2020. Of these over 15 mn.sq.ft. came during the Q3 of 2019, a rise of 23% in nine metropolises. Four cities — Bengaluru, Hyderabad, NCR and Mumbai — accounted for 80% of the leased space in the first three quarters. … [Read more...] about Resilience was the hallmark of realty in 2019
Pune: The presence of national coach Samaresh Jung at the 13th All India Police Shooting Sports Championship caught the attention of participants. Representing the Central Industrial Security Force (CISF) teams as coach and player, Jung grabbed gold (score 562-16x) in the 25 metre Standard Pistol men’s qualifying round. … [Read more...] about I don’t promote sport, but give advise when asked, says Samaresh Jung
“To remove any doubts about our respect for and trust in the president, I have written a resignation letter and handed it over to the president,” Oleksiy Goncharuk wrote on his official Facebook page. … [Read more...] about Ukraine PM offers resignation after leaked recording on President Zelensky