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Sebi clamps down on derivative markets; algo trading made more accessible Accepts most of the Kotak panel recommendations The Securities and Exchange Board of India (Sebi) on Wednesday tightened the derivative markets framework to curb the excessive speculation and prevent small investors from entering the high-risk space. The market regulator, at its board meeting held on Wednesday, also accepted majority of the recommendations made by the Uday Kotak Committee on corporate governance but deferred decision on key proposals such as one on sharing of information with promoters Sebi announced steps to make algorithm trading more accessible and reduced the cost of buying equity mutual funds. It also proposed to introduce a new compliance framework for stocks undergoing insolvency proceedings and an “entirely new” set of buy-back regulations. To ensure derivatives and cash market move in sync, Sebi enhanced the eligibility criteria on stocks allowed to trade in this segment. It fu...

 IBC tweaking: List of offences likely to bar offenders from bidding The panel also suggested bringing the definition of "persons acting in concert" in sync with the Sebi A 14-member committee on reviewing the insolvency and bankruptcy code has recommended that a list of offences be prepared and those who fall in the list be barred from sending resolution plans, say sources. This would provide clarity to those willing to bid for insolvent companies since the existing Code debars offenders from submitting their bids, but does not specify offences. Also, disqualification will be limited to six years from the day of conviction, if the recommendations are accepted. Currently, there is no limit. The committee also recommended doing away with a provision that considers financial creditors who are connected with the debtor company by virtue of converting their debt into equity as a related party. Lawyers stated that this would essentially take out bankers or any other fi...

 Sebi OKs Kotak Panel Proposals to Boost Corporate Governance Split of CMD post from April 2020, enhanced disclosure norms, algo restrictions on cards The Securities and Exchange Board of India (Sebi) approved sweeping changes proposed by the Uday Kotak panel on improving corporate governance standards such as splitting the post of chairman and managing director, tighter rules for independent directors, enhanced disclosure of related-party transactions and mandatory secretarial audits for listed entities and their material subsidiaries. “Out of 80 odd recommendations (of the Kotak panel), 40 were accepted without modification, 15 with modifications, eight were referred to government and other departments,” Sebi chairman Ajay Tyagi told reporters after the board meeting on Wednesday. About 18 suggestions were rejected, he said, including those on sharing information with promoters and significant shareholders, an increase in the number of independent directors on board, mini...

India’s fiscal deficit up to February was 20% more than the revised estimates for FY18  India’s fiscal deficit up to February was 20% more than the revised estimates for FY18 because of increased expenditure and subdued revenue receipts. Experts say that nontax revenues would now be crucial if North Block were to meet its FY18 fiscal-deficit target. "The extent to which the nontax revenues can be shored up in March 2018 would crucially determine if the actual fiscal deficit for FY2018 breaches the revised estimate of Rs 5.94 lakh crore," said Aditi Nayar, principal economist, ICRA. In the revised estimates for FY18, finance minister Arun Jaitley had in the budget presented on February 1estimated a fiscal deficit of 3.5% of GDP against the initial assessment of 3.2% of GDP. Fiscal deficit for FY19 is budgeted at 3.3% of GDP. Fiscal deficit in the April-Feb period stood at Rs 7.15 lakh crore, exceeding the revised target of Rs 5.94 lakh crore for the entire 2017-18 fiscal...

Boost for New Employees, Cabinet Fixes Subsidy for P&K Fertilisers To create more formal sector jobs and lift employment generation, the cabinet committee on economic affairs (CCEA) has decided to meet the full provident fund contribution employer makes for the first three years for new hires. The CCEA also fixed the nutrient based subsidy (NBS) rates for phosphatic and potassic (P&K) fertiliser’s for the year 2018-19 and continuation of NBS and city compost scheme till 2019-20 and approved removal of prohibition on export of all varieties of edible oils except mustard oil. The cabinet approved Rs 4,500 crore spend in the North-East for three years up to March, 2020, and cleared amendments to the National Medical Commission (NMC) Bill. The amendments include stringent punishment for quackery, removal of a bridge course that would have allowed non-allopathic doctors to practice modern medicine and regulation of fees for 50% seats at deemed universities. EMPLOYMENT GENE...

RBI Rolls Out Regulations for Cross-Border Mergers New FEMA rules cover both inbound and outbound investments, expected to boost FDI India has rolled out the long-awaited regulations to allow cross-border mergers and amalgamation that could boost foreign direct investment into the country. The Reserve Bank of India (RBI) has framed the regulations for mergers and amalgamation between Indian and foreign companies. The Foreign Exchange Management (Cross Border Merger) Regulations, 2018, will cover both inbound and outbound investments. The ministry of corporate affairs had already notified Section 234 of the Companies Act, 2013, paving the way for merger and amalgamation of a foreign company with an Indian company and vice-versa. With the RBI framing the regulations under FEMA, the regulations can now take effect. “The notification of FEMA (Cross Border Merger) Regulations, 2018, is the last leg of legal provisions which is finally came in existence to allow both inbound and outb...