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Sebi likely to ease Invit, Reit framework The Securities and Exchange Board of India (Sebi) is looking at ways to revive the infrastructure investment trust (InvIT) market.After two listings earlier this year, the fortunes of the newest investment vehicle that helps cash starved infrastructure companies raise capital by transferring assets and listing them as InvITs have seen as lump. No companies are coming forward with InvIT plans, while the trading volumes on the two existing ones —India Grid Trust and IRB InvIT Fund —have dried up.Sources say Sebi at its board meeting on Thursday could announce relaxations in the InvIT and real estate investment trust (ReIT) framework. Tax clarity, changes in the minimum ticket size, and allowing pension funds to participate are some demands made by players operating in this space.In the past two years, the Centre and Sebi have taken measures to boost the market.But more can be done, say industry players. The recent provisions around the ...

India’s market cap to GDP nears 100% Indian stocks are nearing the red zone as the country’s market capitalisation is now almost equal to its gross domestic product (GDP).With the benchmark indices recording new highs, India’s market capitalisation has swelled to Rs 150.7 lakh crore, 95 per centof GDP (on a trailing four-quarter basis). The market cap-to-GDP ratio was just 72 per cent a year ago. The surge of 23 percentage points is due to exuberance in the equity market despite economic growth slowing.The Indian market cap has risen by Rs 44.44 lakh crore, or 42 per cent, in the past-one year.Besides the sharp share price increase, high equity issuances, particularly initial public offerings (IPOs), have contributed to the increase in market cap this year. Meanwhile, GDP has managed to rise by only eight per cent during the same period. Domestic GDP in the June quarter had slowed to 5.7 per cent (year-on-year growth) due to demonetisation and the introduction ofthe goods and s...

Govt likely to give Sebi powers to regulate private placements The government is planning to relax a few key norms in the Companies Act to give Sebi more powers over private placements so that there's no conflict with the proposed crowdfunding norms. The government is likely to give the Securities and Exchange Board of India (Sebi) the power to regulate private placements by any Indian entity at a time when the capital markets regulator is finalizing norms for crowdfunding, said two people with direct knowledge of ongoing discussions between the regulator, the ministry of corporate affairs (MCA) and the ministry of finance. At present, private placements by unlisted firms are regulated by the MCA, while Sebi regulates fundraising activities by listed firms.Private placement means raising funds from less than 200 investors in a financial year. Funds raised from more than 200 investors automatically becomes a public offering and the issuer has to list these securities. Foll...

Revenue concerns may push back further GST cuts With revenue concerns surfacing,areduction in goods and services tax (GST) rates for consumer durables in the 28 per cent slab may take longer than expected.With almost three months to go for the fiscal year to end, pruning the 28 per cent slab again may not happen in the next GST Council meeting in January. The reduction in rates for more than 200 items in the November meeting had raised expectations that white goods would be taken out of the 28 per cent slab.According to officials, the January meeting will not discuss rate reduction and the focus will be on stabilising revenue collection “The meeting in January is unlikely to look at reducing rates.A decision will be taken after the Union Budget is presented in February.The revenue position will become clear after that,”asenior official in the Council told Business Standard The focus was to meet the revenue collection target, he added.The Centre and the states should collect R...

Divestment 2018: Some Profitable PSUs Too May Be Put On The Block With Rs. 52,500 crore coming in from disinvestment so far this fiscal, the government has exceeded Rs. 45,500 crore raised through PSU stake sale last fiscal The government may include some profitable Central Public Sector Enterprises (CPSEs) - which are not of much strategic importance -- in the the list of entities targeted for disinvestment in 2018, along with sick and loss-making units, a top official has said.The government was so far focused on strategic sale of sick and loss-making CPSEs. "This (privatisation) process will continue because Niti Aayog has been mandated to see how we can get rid of loss-making CPSEs, and may be even some profit-making CPSEs where we can find a very good buyer or government's interest is not so relevant," the official told PTI. The Niti Aayog, the official said, has already recommended a list of 23 PSUs for privatisation which are being looked at by the Depart...