Policy From the Regulators Archives

Market crash-Part II: the RBI and government should join hands

August 16, 2013August 20, 2014Editor

In the previous article, the main problems facing the government and the RBI were listed –a falling rupee, slowing growth and rising inflation. What is needed at this stage is confidence-building measures rather than the fear-inducing steps taken, such as the one imposing capital controls. Foreign investors have been caught on the wrong foot in many countries, where they were prevented from taking their dollars out. They need to be reassured that option is not on the table.

TRAI proposes FDI hike for news channels, FM radio and carriers

July 31, 2013August 20, 2014Editor

The Telecom Regulatory Authority of India has proposed a hike in foreign direct investment limits in the broadcasting sectors, chiefly television and FM radio. The move follows the government’s desperation to bring in FDI follows to help bridge the balance of payments problem.

Axis Bank-Enam deal gets RBI nod; Shikha Sharma’s first major win

September 16, 2011August 20, 2014Editor

In the Indian banking scene, regulation can often trip up intermediaries. Axis Bank’s acquisition of Enam’s investment banking business appeared to be stuck in a regulatory quagmire, first announced in November 2010.

EU may relax generics drug transit shipment regulations

July 29, 2011August 20, 2014Editor

India’s dispute with the European Union over the passage of generics drugs through EU territory is close to a resolution, or so it appears. The dispute dates back to 2008 when the EU began seizing drug shipments, of generic drugs being shipped to countries via the EU. India’s position as a leading supplier of generic drugs saw it being one of the worst affected.

Sebi’s bar on IDR redemption irks Standard Chartered’s IDR-holders

June 6, 2011August 20, 2014Editor

Standard Chartered Plc’s Indian Depositary Receipt fell by as much as by 20% on Monday on the BSE, on news that capital market regulator Sebi will not allow redemption of IDRs, except if they were illiquid.

RBI goes by the script, hikes rates by 0.25%

January 25, 2011August 20, 2014Editor

The Reserve Bank of India (RBI) stuck to its trajectory of calibrated rate hikes in the current credit policy too. It hiked the repo rate by 25 basis points to 6.5% and the reverse repo rate also by 25 basis points to 5.5%. The repo rate is what banks pay to the RBI to borrow funds to meet short term liquidity needs and the reverse repo rate is what they get from the RBI, when they park surplus funds with the central bank.

Indian investors can now trade in foreign index derivatives

January 12, 2011August 20, 2014Editor

India has become an integral part of the global capital markets, forming a key part of the emerging markets portfolio for large investors. Domestic investors have benefited as the incoming tide of foreign capital flows has swelled investor wealth, over a longer period of time. While foreign investors can hedge their bets across the world, it was not as easy for domestic investors to do so. Increasingly, domestic investors will feel the need to hedge against an unfavourable movement in domestic markets.

RBI leaves rates unchanged but talks down expectations

July 28, 2009August 20, 2014Editor

The Reserve Bank of India left benchmark interest rates untouched in its quarterly credit policy statement, released today. That was as expected. But RBI Governor D. Subbarao, has made it clear that once clear signs of a recovery are evident, and if prices are ruling higher, the RBI will move swiftly to hike rates. At present, it is holding back pre-emptive action, to give room for consumers to borrow and buy and thereby generate demand for industries to grow.

Discretion and IPOs don’t mix well

July 12, 2009August 20, 2014Editor

India’s initial public offer (IPO) market has evolved over the years, from when the issue price was set by a government body called the Controller of Capital Issues to now where investors bid in a book-built issue to determine the price.

HDFC Bank settles with Sebi in IPO case

December 26, 2008August 20, 2014Editor

Sebi has issued a consent order, accepting HDFC Bank’s application to settle the case filed against it in the IPO scam. It has paid Rs 1 lakh as part of the consent procedure. The Sebi order says that it had launched an investigation into share dealings in shares issued through IPOs during 2003-05.