Skip to main content

New norms proposed for public issue of InviTs, additional tier- I bonds

By
The Securities and Exchange Board of India ( Sebi) has proposed new regulations for public issue of core capital instruments by banks and for the public issue of Infrastructure Investment Trusts ( InviTs).
The proposed norms for retail or public issuance of Additional Tier- 1 ( AT1) bonds set the minimum investment at ? 2 lakh, due to the additional risk with these as compared to other debt products. “ To ensure only well- informed retail ( individual) investors, with adequate risk tolerance level, subscribe to these," explained Sebi in the draft norms, issued on Friday.
Last year, the Reserve Bank had allowed banks to issue AT1 instruments to retail investors. Sebis committee on corporate bonds had deliberated on the additional requirements for and disclosures by banks for doing so.
For InviTs, Sebi has proposed that disclosures in the offer documents and draft papers be kept in the public domain for at least 21 days. The allocation in the public issue to qualified institutional buyers ( QIBs) is proposed to be capped at 75 per cent. An investment manager can allocate up to 60 per cent of the portion available for allocation to QIBs to anchor investors.
The issue would need to be kept open for at least three working days but not more than 30 days.
Sebi also proposed no InviT make a public issue of units if it or any of its sponsors, investment manager or trustee was barred from accessing the capital market by it or is a wilful defaulter as defined by the Reserve Bank.
Sebi has refunded Rs.42 crore to Sahara bond- holders In the high- profile Sahara case, Sebi has disclosed having refunded over Rs.42 crore to the bondholders of the two Sahara firms while discrepancies were found in nearly 3,000 refund applications. According to the latest status update on the refund process, published today, Sebi received 10,456 applications and made refunds with respect to 7,296 applications for an aggregate amount of Rs.42,42,36,472 including interest of Rs.18,04,58,872, as on June 3, 2015. “ About 1,527 applications were referred to applicants for removal of discrepancies and the remaining ( approximately 3,000 cases) fall in the disputed category, which need to be looked into and decided upon individually by the Competent Authority," Sebi said in its latest annual report released on Friday.
Business Standard, New Delhi, 196th Dec. 2015

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more