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Showing posts from June, 2014

Sebi Proposes Breather For Primary Market Offers

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SEBI, at its Board Meeting held on 19th June 2014 discussed and announced various relaxed norms for fund raising by the Company. On one hand, it attempted to ease the fund raising and on the other, with the intent to align the working of Employee Welfare Trusts in Listed Companies with the internationally&nbsp accepted practice, it proposed to allow secondary market acquisitions pursuant to the Employee Benefit Schemes. Given below is the gist of proposals & decisions approved by the Board:
Ms. Anjali Aggrawal
Vice President
+919971673336
anjali@indiacp.com 1. Reforms proposed in the Primary Market:  In order to align the regulatory requirements with the changing market realities on one hand and to rejuvenate the capital market on the other, the following reforms have been proposed:

Risk Management Using Derivatives

People typically use derivatives for two reasons - either to increase leverage or to speculate on an asset's movement. But with proper planning and management, derivatives can be seen as a valuable tool for hedging or reducing existing exposure, as financial risks like Currency, Interest Rate, Default/ Credit Risk can be minimized by the help of derivatives. For doing this, it is essential to identify business risks accurately and to use the right control techniques, because derivative products can be used as insurances policies by paying premium. An Individual/Corporate may think that they can reduce their risk, but in case of event specific risk and unsystematic risk it’s not the same thing. Event specific risks can only be managed by buying insurance and unsystematic risks can be managed by diversification. In this article we'll discuss major financial risks and the way-out to use derivatives for managing those risks. Before going to the risk management, we have to underst…

BSE’s Direct Listing Norms for Non-operational Stock Exchange Listed Companies

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In consonance with the SEBI Circular dated 22nd May, 2014 advising the Companies exclusively listed on non-operational stock exchanges to opt for direct listing on any of the stock exchanges having
Ms. Anjali Aggarwal
Vice President
+919971673336
anjali@indiacp.com nationwide trading terminal, the BSE has relaxed its direct listing norms for such Companies.
The main highlights of the said norms are outlined as follows:
S.No. Criteria Threshold 1. Issued and Paid up capital Minimum Paid up capital: Rs. 1 Crore
and
Net worth: Rs. 3 Crores

Sebi's Observations On Scheme Of Arrangements

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PARADIGM SHIFT FROM SE TO SEBI Prior to 4th February, 2013, the scheme of arrangements, involving listed companies, were regulated in accordance with clause 24 (f) of Listing Agreement i.e. with the Stock Exchange (SE). However, post 4th February, 2013, SEBI amended the requirements and introduced a circular, wherein it widened its scope for dealing with the Schemes and provided for additional disclosures/ procedural compliance’s by SE’s/ Listed Companies.