Sebi tweaks norms to aid fund-raising, caps tenure of MD & CEO of exchanges
The Securities and Exchange Board of India (Sebi) has made major changes in rules governing fund-raising, to provide flexibility to issuers and to boost capital formation. The regulator tweaked norms governing stock exchanges, clearing corporations and depositories —known as market infrastructure institutions (MIIs) — capping the tenure of top officials and bringing in more accountability to the board structure. Going ahead, a company will have to make public the pricing for its initial public offering (IPO) just two days before the opening as distinct from five days earlier.
Panama Paper leaks: Fresh revelations being looked into by MAG, says Finmin
The government started its investigations into the fresh Panama Paper leaks, even as those named denied any wrongdoing. The finance ministry on Thursday said the fresh revelations are being looked into by the Multi Agency Group (MAG), headed by the Central Board of Direct Taxes chairman as its convener and comprising representatives of the income-tax (I-T) department, Enforcement Directorate, Financial Intelligence Unit, and the Reserve Bank of India. “The fresh release… under the Panama Paper leaks is being promptly looked into by the law enforcement agencies under the aegis of the MAG already constituted for facilitating coordinated and speedy investigation,” the ministry said in a release.
India slaps tariffs on 29 US items; new rates to kick in from August 4
After a week of speculations, India on Thursday finally imposed higher tariff rates on 29 import items from the United States (US) but announced that new rates would kick in from August 4. India had last week notified the World Trade Organization (WTO) of its decision to impose ‘reciprocal tariffs’ on American products. The move comes after New Delhi got a cold shoulder from Washington DC on its request for exempting India from the higher tariffs announced by the US on steel and aluminum imports. The government has not officially clarified why it chose to impose the new rates — which have been doubled for some items — from a later date instead of June 21, as had been widely expected.
Firms to approach forensic experts for curbing instances of insider trading
Recent regulatory action has prompted a host of top listed firms to approach forensic auditors to curb instances of insider trading within their organizations. The misuse of unpublished price sensitive information, or UPSI, came into the limelight after financial results of companies circulated through WhatsApp messages caught the attention of market regulator Securities and Exchange Board of India late last year. The regulator has gone to the extent of vetting social media to ascertain wrongdoing, and may soon come out with guidelines to help companies’ better tackle the menace.
Stressed assets: No special relief to the power sector, says RBI
The Reserve Bank of India (RBI) on Thursday held its ground and refused to give any special relief to the power sector from its February circular that mandates early detection and time-bound resolution of stressed assets. In a meeting of stakeholders convened by the finance ministry following a directive of the Allahabad High Court, the central bank, instead, favored expeditious resolution by the government and the firms concerned of sector-specific issues that have led to the huge pile-up of stressed assets in the sector.
Vodafone-Idea merger to be approved soon
The Department of Telecommunications (DoT) is expected to clear the merger of Vodafone India and Idea Cellular early next week. Both the companies, however, may have to pay one-time-spectrum-charges (OTSC) dues, though these are under challenge in the court. The DoT is expected to ask Vodafone for Rs 5,650 crore – or a bank guarantee – and Idea for Rs 2,113 crore for its OTSC dues. Sources said the additional solicitor general (ASG) has replied on queries raised by the DoT and suggested that it could raise the issue of pending dues of Vodafone with Idea.
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