Posts Tagged ‘Indian bourses’

Now, Trading in Derivatives Contracts in 3 More Currency Pairs :)

Trading in Derivatives Contracts in 3 More Currency Pairs

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Spirits of indian investors and institutions dealing in foreign currencies were boosted by the latest news of regulators allowing Indian bourses to start trading in derivatives contracts in three more currency pairs.

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Rupee-Euro, Rupee-Japanese Yen (JPY) and Rupee-British Pound (GBP).

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Currently, only trading in futures contracts in Rupee-US Dollar is allowed on the bourses, which began on the NSE on August 29, 2008, followed by MCX-SX.

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Permission from the banking regulator Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) came within a month of the combined turnover of the two forex derivative bourses β€” NSE’s foreign forex trading segment and MCX Stock Exchange (MCX-SX)β€” crossing the combined turnover of the cash market of NSE and BSE.

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Last fortnight, the forex derivatives markets recorded a turnover of nearly Rs 34,500 crore, compared to about Rs 23,200 crore on the two bourses’ cash segments.

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Although BSE offers forex derivatives trading, the segment is yet to take off.

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Following the global trend, where forex trading volumes dwarf volumes in both equities and commodities, the forex derivatives segment in India took just a year and a half since their launch to surpass the turnover in the cash segment of the bourses.

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However, spokespersons from both NSE and MCX-SX said that these bourses will start trading in these three new pairs very soon.

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Trading Hours of Bourses Extended by SEBI :)

Trading Hours of Bourses Extended by SEBI

Trading Hours of Bourses Extended by SEBI

Market regulator SEBI on Friday extended the trading hours of bourses by up to two-and-a-half hours from 9 am to 5 pm, a move that may help in bringing back the trade that was seen shifting to Singapore Stock Exchange.

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It has been decided to permit the stock exchanges to set their trading hours (in the cash and derivatives segments) subject to the condition that the trading hours are between 9 am and 5 pm,” SEBI said in a statement.

The new trading hours would now help integrate the Indian bourses with Singapore and other Asian markets in the morning hours, and the European market in the evening hours, said SMC Capitals Equity Head Jagannadham Thunuguntla.

“Some trade that had shifted to SGX Nifty (Indian Nifty traded in Singapore Stock Exchange) can now be brought back to the country,” he said.

The current market hours stand from 9.55 am to 3.30 pm.

In Singapore, trading sessions are held between 9 am to 12.30 pm and 2 pm to 5 pm (local time).

In addition, there is pre-open routine from 8.30 am to 9 am and pre-close routine from 5 pm to 5.06 pm.

Singapore is around two and a half hours ahead of India.

This would provide an opportunity to NSE to try and align their timings to that of a few Asian markets like the SGX since this exchange permits trading in Nifty.

With market regulator SEBI now allowing longer trading hours, it is now up to the bourses to decide on the duration and when to reset their trade timings.

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Thunuguntla said, “All stock exchanges are likely to go for the maximum possible trading hours as they have been demanding it to be extended to 9 am to 9 pm.”

He said there is a serious competition ongoing between Bombay Stock Exchange and National Stock Exchange, and then there is the new competitor MCX-SX.

“I will be surprised if any bourse not utilises the full timing,” he added.

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IDFC, KRIBHCO Buy 5% Stake Each in ICE :)

IDFC-KRIBHCO-buy-5%-stake

IDFC and Krishak Bharati Cooperative Limited (KRIBHCO)have purchased a stake ofΒ  5% each in Indian Commodity Exchange, which jointly promoted by Indiabulls Financial Services and MMTC.

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According to sources, the bourse will apply to Forwards Markets Commission, the regulator, after the completion of the formalities of the shareholding agreement.

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With the latest divestment, the current holding of Indiabulls stood at 40% while MMTC has 26%. The other shareholders include HDFC Bank, Yes Bank and Indian Potash.

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FMC guidelines stipulate a maximum shareholding of 40% in a commodity exchange by an anchor investor.
This has to be reduced to 26% within a period of two years starting with the fourth year from the date of exchange’s recognition.

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Earlier, FMC (Forward Markets Commission) rejected United Stock Exchange’s proposal to pick up 10% stake in Indian Commodity Exchange since it was yet to receive full recognition from capital markets regulator SEBI.

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The bourse is the latest entrant into the commodity futures space and will vie with the predominantly metals and energy bourse MCX and agri bourses NCDEX and NMCE.

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In August, FMC had directed the exchange, which had received recognition from the Ministry of Commerce over a year ago, to offer 10 per cent equity of USE to other competent partners and re-submit the application by September-end.

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Allot IDRs on proportionate basis: SEBI

Allot IDRs on proportionate basis: SEBI

Market regulator SEBI today said that the allotment of Indian Depository Receipts, a tool used by foreign companies to raise funds from Indian bourses, should be made on proportionate basis and not at the discretion of the issuer.

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“Allotment to all these categories shall be made on proportionate basis only,” SEBI said, amending its guidelines concerning general and disclosure requirements pertaining to IDR issues.

The market regulator further said that in case of underwritten issues, if the issuing company does not receive the minimum subscription of 90 per cent of the net offer, from the date of closure of the issue, the issuing company shall forthwith refund the entire subscription amount received.

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Underwriting refers to the process that a large financial service provider like a bank or investment house undertakes to assess the eligibility of a customer to receive their financial products and in case the product is not bought, the financial service provider takes them.

Commenting on it, SMC Capitals Equity Head Jagannadham Thunuguntla said, “It is a right step for creating a good IDR market in India. It will help in smooth execution of IDRs.”

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SEBI further said that the audited financial statements should be prepared in accordance with Indian GAAP, or with the International Financial Reporting Standards (IFRS) or US GAAP, for a period of three financial years immediately preceding the date of prospectus.

The report prepared by the statutory auditors of the issuing company should disclose financial statements in Indian rupees, while the issuing company would do it in Sterling Pound, Euro, Yen or US Dollar. πŸ™‚