To improve market reliability and protect the welfare of investors, the regulator of the capital market in India, the Securities and Exchange Board of India (SEBI), and stock exchanges Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have been hosting numerous superior preventive surveillance actions namely a reduction in price band, transfer of securities to Trade for Trade segment and periodic call auction from time to time.
In addition to several surveillance actions by now put into action, the SEBI and stock exchanges, according to debates in joint surveillance summits, have decided that together with the aforementioned actions there shall be Enhanced Surveillance Measures (ESM) on Micro-Small Companies (on main board with market capitalization below ₹500 crores) based on objective parameters such as Price variation, Standard Deviation, etc. The framework to prevent volatility in small-cap counters is applicable from June 5, 2023.
Know your ESM
According to the announcement, public sector organizations and public sector banks will be exempted from the procedure of shortlisting securities under ESM. The securities will be chosen under the ESM framework based on high-low price variation and close-to-close price variation. The recognition of securities based on entry norms will be 100% margin from the settlement cycle of the trade date plus two days (T+2). As per the notification, the trading for these securities will be settled through a trade-for-trade mechanism with a price band of 5% (if the scrip is already in the 2% band) or 2%. For securities already in stage I, trading will be allowed once a week with periodic call auctions. The trading for these securities will be settled through a trade-for-trade mechanism with a price band of 2%. The notification stated that stage-wise scrutiny of securities will be weekly.
Diese Geschichte stammt aus der July 2023-Ausgabe von Indian Economy & Market.
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Diese Geschichte stammt aus der July 2023-Ausgabe von Indian Economy & Market.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
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NEW INVESTMENT PRODUCT CATEGORY IS SEBI'S LATEST MOVE COMMENDABLE?
The Securities and Exchange Board of India (SEBI) has introduced a consultation paper proposing a new investment product category aimed at addressing a specific market need. This proposed asset class would offer investment options that sit between mutual funds (MFS) and PMS, filling a gap and providing greater flexibility in portfolio management. The new investment vehicle is designed for investors who are prepared to take on riskier market positions but find PMS schemes or AIFs out of reach. SEBI after reviewing the feedback and finalizing the regulations through stakeholder discussions, may issue the final regulations.
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Until the 2014 Lok Sabha elections, when the Bharatiya Janata Party secured 282 seats and Narendra Modi ascended to power, India experienced 21 years of coalition governments. A decade later, the BJP holds 240 seats in the Lok Sabha, and India is once again governed by a coalition. Fitch has indicated that coalition politics and a weakened mandate for the NDA could hinder the passage of ambitious reform legislation. It raises the question: Do coalition governments impede the economic reform agenda?
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With a rising number of millennials, Gen Z investors, and tech-savvy traditional investors, Robo advisors are making a significant impact on the FinTech and WealthTech sectors. Factors like growing per capita income, favourable demographics, and increasing smartphone and internet Usage further enhance India’s potential as a robust market. Al’s role in stock market analysis is unquestionably growing. It enhances rather than replaces human judgment, providing powerful tools for informed investment decisions.
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Face to Face
\"We believe ourselves to be service providers and not any goods manufacturer\"
THE REALITY OF CORPORATE ESG INITIATIVES
Today, environmental, social, and governance (ESG) considerations dominate business discussions and have become an integral part of the strategies of many organisations in different industries. While some companies are grappling with these new standards and commitments, others, already aligned with the Sustainable Development Goals (SDGs), are well prepared to meet the evolving regulations and standards related to corporate social responsibility (CSR) and ESG.
Standard Capital Markets Ltd. Incorporates Subsidiary for Insurance Broking
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THE IMMINENT MIDDLE EAST WAR
Recent intelligence from a variety of sources points to an Israeli war against Hezbollah, which is an Iranian proxy. Hezbollah is systematically attacking Israeli bases, radars, intelligence-collections facilities and other defense system components. Now the attacks are spreading to include Israeli settlements in the West Bank and Galilee. You’re just not hearing about it in the mainstream media. These attacks have three effects: They break down Israeli military and intelligence systems, terrorize the civilian population and handicap Israel’s ability to conduct air attacks on Syria or Lebanon. James Rickards points out why all these are imminent.