Q2 FPI holdings in BSE-200 companies rise 25% to $337 bn
Foreign Portfolio Investors (FPIs) have raised their stake in BSE-200 companies to USD 337 billion during July-September quarter and heavy buying was seen in sectors like banking and telecom, says a report.
FPI ownership in the BSE-200 index stood at USD 311 billion during the June quarter, according to the Kotak Institutional Equities report.
In percentage terms, FPI holding (including American Depository Receipts or ADRs and global depository receipt or GDR) in the index marginally rose to 25 per cent in three months ended September 30, 2016 against 24.8 per cent in the preceding quarter.
A sector-wise analysis shows that FPIs invested in automobiles, banking and energy and sold pharmaceuticals, technology and telecom stocks.
Meanwhile, domestic institutional investors (DIIs) holdings in BSE-200 companies decreased marginally to 11.3 per cent in the September quarter from 11.4 per cent at the end of the previous quarter.
DIIs have reduced stake in automobiles, energy and cement sectors and bought stocks in technology and pharmaceuticals sectors.
FPIs have bought maximum stake in Manpasand Beverages during the quarter under review -- 5.9 percentage points followed by Bharat Financial Inclusion and Supreme Industries (5.8 percentage points each).
Overseas investors also raised their holdings in Axis Bank, DCB Bank, Karnataka Bank, Teamlease, Mahanagar Gas, Hindalco Industries, Reliance Capital and Tata Motors.
On the other hand, Carborundum Universal saw substantial decline in FPI holdings -- 11.1 percentage points, followed by Ambuja Cements (4.9 percentage points) and Shriram City Union Finance (4.3 percen
Leading stock exchanges BSE and NSE have initiated the delisting process for companies that have been under suspension for a very long time, Parliament was informed on Tuesday. As on date, trading in equity shares of 1,021 companies on the BSE and 132 firms on the NSE have been suspended for more than seven years, Minister of State for Finance, Arjun Ram Meghwal said in a written reply to the Rajya Sabha.
“The exchanges have initiated the process of delisting those companies which have been under suspension for a very long time and have not complied with listing requirements,” he added.
Under the norms, stock exchanges can compulsorily delist the equity shares of listed company in case trading in the firm remains suspended for more than six months.
In August, BSE (formerly known as Bombay Stock Exchange) delisted 194 companies, while National Stock Exchange (NSE) announced delisting of 48 firms during August-November.
Sebi allows 268 entities to set up AIFs in four years
Markets regulator Sebi has allowed as many as 268 entities to set up AIFs -- pooled-in investment vehicles for real estate, private equity and hedge funds -- over a period of more than four years
These Alternative Investment Funds (AIFs) have been registered with Sebi since August 2012.
As on November 15, as many as 268 AIFs are registered with Securities and Exchange Board of India (Sebi), latest data showed.
Of these, 80 AIFs got the capital markets watchdog’s nod in 2016 (till November 15) while 67 had procured the nod during 2015.
Among the newly registered AIFs are Airavat Capital Trust, Scale Ventures Trust, Stakeboat Capital Fund, Pioneer Investment Fund, Sathguru Catalysers Trust, Aavishkar Bharat Fund and Milestone Commercial Advantage Fund.
AIFs are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.
Under Sebi guidelines, AIFs can operate broadly in three categories. Sebi rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others. The regulator had notified in May 2012, the guidelines or this class of market intermediaries.
The Category-I AIFs are those funds that get incentives from the government, Sebi or other regulators and include social venture funds, infrastructure funds, venture capital funds and SME funds.
The Category-III AIFs are those trading with a view to make short-term returns and include hedge funds among others.
BSE tightens norms for firms shifting from SME platform
Tightening norms for companies seeking to migrate from its SME platform to the main board, BSE on Tuesday said firms, directors and promoters who have been barred by markets regulator Sebi will not be eligible for the move. Accordingly, companies that are seeking migration from the small and medium enterprises (SME) platform to the main board, would be required to submit an undertaking that the company, its promoters and directors have not been debarred by Sebi.
“Where there is any Sebi debarment order against the company, its promoters, directors, such company will not be eligible to migrate from SME to main board of BSE till such Sebi debarment order is in force,” the exchange said in a circular. Putting in place additional eligibility criteria for migration from SME to main platform of the BSE, the exchange said that if a company has been debarred from accessing the securities market, it cannot raise any funds. However, bonus issues (not amounting to raising of funds from public) would be permitted to such extent as to not increase the post-issue capital to beyond Rs 25 crore.
However, where the directors and promoters of the company are debarred from accessing the securities market, then the company would be allowed to increase its capital to such extent so as to not increase the post-issue capital to more than Rs 25 crore.
Further, BSE said that debarred entities would not be eligible to participate in any such further issue of capital.
“While the Sebi debarment is in force against the company, its promoters and directors, it shall be mandatory for the company to appoint a trading member of BSE as a market maker even after the completion of mandatory period of three years.