sebi finalises norms for Research analysts.

SEBi finalises norms for Research Analysts

To safeguard Indian markets from manipulative research reports including by foreign entities, Sebi has finalised detailed norms for ‘research analysts’ to ward off any conflict of interest in their activities.

Foreign entities acting as research analysts for Indian markets or India-listed companies would need to tie-up with a registered entity in India, while domestic players would also be subjected to strict disclosures and scrutiny.

The final norms in this regard would be notified soon after draft regulations are approved by the board of capital markets regulator Sebi at its meeting later this week, a senior official said.

The new norms, which would also cover ‘proxy’ advisors or those providing advisory services similar to research analysts, have been framed in the wake of various instances of ‘mischievous’ research reports having been circulated among the investors in the past to manipulate the overall market trends or share price of individual companies.

As per the draft norms, every individual or entity desiring to function as a research analyst would need to get registered after meeting the prescribed criteria regarding qualifications, capital adequacy, establishment of internal policies and procedures, firewalls against conflict of interest, sufficient and timely disclosures, among others.

The regulations also provide for penal actions that Sebi can take against erring research analysts. Such actions would include cancellation of registration, debarment, or penalties similar to any other market intermediary.

All existing research entities and individuals engaged in research activity would come under these regulations. Also, the research entity or proxy adviser has to segregate their research work from its other activities.

Further, entities would have to ensure that yearly audits are carried with respect to complying with these regulations.

With regard to foreign entities, Sebi has decided that they have to enter into an arrangement with registered research analysts.

The registered entities would be allowed to distribute third party research reports as per the regulations, the official said.

Earlier the proposal was that overseas entities would be required to incorporate or establish an Indian office to carry out the function of research analysts.

Under the norms finalised by Sebi, the compensation of individual research analyst would be decided by the board of directors or committee of directors. The panel should not have any representation from the merchant banking, investment banking or brokerage services department.

Comments from more than 80 entities/individuals were received on the consultation paper on regulatory framework for research analysts which was issued by Sebi in November last.

In July 2011, the board had approved a proposal that Sebi may look at regulating research analysts in the domestic securities market.

http://www.business-standard.com/article/pti-stories/sebi-finalises-norms-for-research-analysts-114061700839_1.html

FCCB maturity oct and nov 2014

Come oct and nov 2014….FCCB maturity looming ….
Amount in $.mns and maturity date

Tata steel  546.94  21st nov
Sterlite ind. 500       30th oct
Tata power 300       21st nov
Sesa goa     284       31st oct
Larsen tubro 200     22nd oct

Need to see how this big cos. Redeem or mature the fccbs….

“MONEY IS YOURS BUT RESOURCES BELONG TO THE SOCIETY.”

Fwd: TRUE STORY:

“MONEY IS YOURS BUT RESOURCES BELONG TO THE SOCIETY.”

Germany is a highly industrialised country. It produces top brands like
Benz, BMW, Siemens etc. The nuclear reactor pump is made in a small town in this country.
In such a country, many will think its people lead a luxurious life. At least that was my impression before my study trip.

When I arrived at Hamburg , my colleagues who work in Hamburg arranged a
welcome party for me in a restaurant. As we walked into the restaurant, we noticed that a lot of tables were empty. There was a table where a young
couple was having their meal. There were only two dishes and two cans of beer on the table. I wondered if such simple meal could be romantic, and whether the girl will leave this stingy guy.

There were a few old ladies on another table. When a dish is served, the waiter would distribute the food for them, and they would finish every bit of the food on their plates.

We did not pay much attention to them, as we were looking forward to the dishes we ordered. As we were hungry, our local colleague ordered more food for us. As the restaurant was quiet, the food came quite fast. Since there were other activities arranged for us, we did not spend much time dining. When we left, there was still about one third of unconsumed food on the table.

When we were leaving the restaurant, we heard someone calling us. We noticed the old ladies in the restaurant were talking about us to the restaurant owner. When they spoke to us in English, we understood
that they were unhappy about us wasting so much food. We immediately felt
that  they were really being too busybody.

“We paid for our food, it is none of your business how much food we left
behind,” my colleague Gui told the old ladies.
The old ladies were furious. One of them immediately took her hand phone out
and made a call to someone. After a while, a man in uniform claimed to be an officer from the Social Security organisation arrived. Upon knowing  what
the dispute was, he issued us a 50 Euro fine. We all kept quiet. The local colleague took out a 50 Euro note and repeatedly apologized to the officer.

The officer told us in a stern voice, “ORDER WHAT YOU CAN CONSUME, MONEY IS YOURS BUT RESOURCES BELONG TO THE SOCIETY. THERE ARE MANY OTHERS IN THE WORLD WHO ARE FACING SHORTAGE OF RESOURCES. YOU HAVE  NO REASON TO WASTE RESOURCES.”

Our face turned red. We all agreed with him in our hearts. The mindset of people of this rich country put all of us to shame. WE REALLY NEED TO REFLECT ON THIS. We are from country which is not very rich in resources.
To save face, we order large quantity and also waste food when we give others a treat.

THIS LESSON TAUGHT US A LESSON TO THINK SERIOUSLY ABOUT
CHANGING OUR BAD HABITS.