Companies garner Rs. 3,700 crore from NCDs in April-July period
Three companies raised Rs 3,700 crore through retail issuance of non-convertible debentures (NCDs) in the April-July period of the ongoing fiscal to meet their business expansion plans.
In comparison, five companies had collected Rs 2,400 crore through this route in the April-July period of 2016-17.
The funds have been mobilised for business expansion, supporting working capital requirements and other general corporate purposes.
NCDs are loan-linked bonds that cannot be converted into stocks and usually offer higher interest rates than convertible debentures.
According to the latest data with markets regulator Sebi, three firms -- Muthoot Finance, Mahindra & Mahindra Financial Services and Srei Equipment Finance -- have mopped-up funds totalling Rs 3,699 crore through retail issuance of NCDs in the current fiscal till July 31.
Individually, Muthoot Finance raised Rs 1,969 crore as against a target of Rs 200 crore in the ongoing fiscal, Mahindra & Mahindra Financial Services garnered Rs 1,150 crore as against a target of Rs 250 crore and Srei Equipment Finance raked in Rs 580 crore against a base size of Rs 500 crore.
Overall companies had mobilised about Rs 29,550 crore in the entire preceding fiscal.
Total equity inflows into domestic mutual funds rose to all time high of Rs 18,200 crore in July, indicating the 'financialisation' of savings cycle in India, says a Deutsche Bank report.
According to the global financial services major, July was a historic month for Indian equities, with total equity inflows (equity plus equity-linked savings schemes plus equity component of balanced funds) into domestic mutual funds rising to an all-time high of Rs 18,200 crore or $2.8 billion.
"The accelerating momentum of inflows into the equity schemes of mutual funds indicates that the financialisation of the domestic savings cycle in India which began in earnest in 2014 is becoming deeply entrenched," Deutsche Bank said in a research note.
The report further said the rising component of Systematic Investment Plans (SIPs) in total monthly inflows underscores how significantly the profile of Indian savings is shifting towards equity investments.
Moreover, domestic mutual funds' ownership of BSE 500 companies rose from a low of 3 per cent in March 2014 to 6 per cent as of June 2017.
"We view this as a constructive development, as it incrementally reduces the vulnerability of Indian equities to external developments and also reduces the cost of capital for domestic companies," the report noted.
Sebi allows MCX to start options contract in gold
The Multi Commodity Exchange Ltd (MCX) on Wednesday said it has received markets regulator Sebi approval to launch country's first gold options contract soon.
"We have already commenced mock trading and conducting bullion participant awareness events. In the next couple of weeks, we will finalise exact contract specifications and launch date," MCX spokesperson Girish Dev said here.
In June this year, Sebi allowed options trading in commodities to deepen the market but permitted each exchange to launch options on futures of only one commodity initially.