LIC to acquire 51% stake in IDBI Bank

The Life Insurance Corporation (LIC) gave approval to the acquisition of up to 51% stake in debt-ridden IDBI Bank. This was informed by Economic Affairs secretary S C Garg. Now, the state-owned LIC will approach market regulator SEBI on the matter. The LIC stake buy will help the IDBI get a capital support of 10,000 to 13,000 crore rupees.

PAN verification during FPI share allotment

Markets regulator SEBI has said that allotment of shares to foreign portfolio investors (FPIs) in initial public offers would need to be verified with PANs. This step is taken as a check against any breach of investment limit through multiple entities. Under the rules, purchase of equity shares of each firm by a single FPI would have to be below 10% of the firm’s total issued capital.

SEBI to come out with consultation paper

The Securities and Exchange Board of India (SEBI) will soon come out with a consultation paper on making it mandatory for large corporates to meet one-fourth of their financing needs through bond market. SEBI will discuss with stakeholders before finalising the framework for corporates. SEBI is the regulator for the securities market in India and its chairman is Ajay Tyagi.

YES Bank to launch Mutual Fund Business

Private lender YES Bank announced that it has received final regulatory approval from the Securities & Exchange Board of India (SEBI) to start mutual fund business. This approval is subsequent to the Reserve Bank of India’s (RBI) approval. YES Asset Management (India), a wholly owned subsidiary of YES Bank, will launch fund offerings across the spectrum in both debt and equity markets.

SEBI set to amend buyback regulations

17 : SEBI plans to revise the regulations for share buybacks wherein more clarity would be provided on various aspects, including on the requirement to make public announcements. SEBI has carried out a review of the current buyback norms in order to simplify the language and remove inconsistencies. A company can undertake buyback of shares out of its free reserves and securities premium account.

SEBI panel to study direct overseas listing

The Securities and Exchange Board of India (SEBI) has constituted an expert committee to examine the possibillity of allowing unlisted Indian companies to do a direct equity listing overseas. The expert committee will comprise 9 members. Currently, Indian companies can only use the depository receipts route to list on the overseas exchanges.

SEBI moves to ease corporate insolvency

SEBI amended its ‘Takeover Code’ to remove capital infusion hurdles in companies with approved resolution plans under the Insolvency and Bankruptcy Code (IBC). The SEBI move is expected to smoothen the implementation of successful resolution plans. The ‘Takeover Code’ barred acquirers of shares in a company from entering into any transaction.

SEBI cuts expenses charged by MFs

SEBI has slashed the ‘additional expense’ charged by Mutual Funds to just 5 basis points to help increase the penetration of such products among investors. The move will help reduce the cost of investing in MFs. MF is an investment vehicle made up of a pool of money collected from investors for the purpose of investing in securities such as stocks, bonds, money market instruments.

Panel ‘must’ for reviewing ratings

Credit rating agencies (CRAs) will have to form a review committee of mostly independent members to decide on any request for a rating review. CRAs will have to disclose on their website all ratings that are not accepted by an issuer for at least 12 months. SEBI has proposed these measures as part of its attempts to strengthen the governance, accountability and functioning of CRAs.

SEBI to implement system-driven disclosures

Markets regulator SEBI will soon put in place system-driven disclosures for non-promoters, directors and certain class of employees of listed companies. The system-driven disclosures in securities market was introduced in December 2015 and is being implemented in a phased manner. It has already been put in place with respect to disclosures of promoter/ promoter group.