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Indian Express
3 days ago
- Business
- Indian Express
SEBI introduces special measures to facilitate voluntary delisting of certain PSUs
The Securities and Exchange Board of India (SEBI) board on Wednesday announced several measures, including steps to facilitate voluntary delisting of certain public sector undertakings (PSUs), relaxation in regulatory compliances for foreign investors investing in government bonds and allowing founders of start ups to hold employee stock options (ESOPs) even after listing of the company The board also approved category I and II Alternative Investment Funds (AIF) to offer co-investment opportunities within the AIF structure. The SEBI board introduced special measures for PSUs to undertake voluntary delisting through fixed price delisting process when the shareholding of the government as a promoter or other PSUs equals or exceeds 90 per cent. 'PSUs (other than banks, NBFCs and insurance companies) in which aggregate shareholding of the government and/or any PSUs equals or exceeds 90 per cent of total issued shares of the PSU, would be eligible for delisting under the relaxed route ,' the SEBI said. Delisting of such eligible PSU would be only through a fixed price delisting process which shall be atleast 15 per cent premium over the floor price. In order to enhance ease of doing business through a risk-based approach and optimum regulation, the board approved the proposal to relax certain regulatory requirements for all existing and prospective foreign portfolio investors (FPIs) that exclusively invest in government securities G-Secs (GS-FPIs). SEBI has harmonised the periodicity of mandatory Know Your Customer (KYC) review for GS-FPIs with the Reserve Bank of India's (RBI) requirement. This would essentially mean that GS-FPIs will have less frequent mandatory KYC reviews. Under the revised norms, existing and prospective FPIs that exclusively invest in g-secs under the Fully Accessible Route (FAR) will not be required to furnish investor group details. Such details are largely relevant for monitoring FPI exposures into equity and corporate debt only. The SEBI said that GS-FPIs will be permitted to intimate all material changes within 30 days instead of 7 days. These relaxation come at a time when several global index providers have announced inclusion of g-secs in their respective bond indices, such as J P Morgan Global EM Bond Index, Bloomberg EM Local Currency Government Index and FTSE Russell Emerging Markets Government Bond Index. SEBI said that under the existing regulations, promoters are ineligible to hold or be granted share based benefits, including ESOPs. If they hold such share based benefits at the time of filing of draft red herring prospectus (DRHP), they have been required to liquidate such benefits prior to the initial public offering (IPO). 'This provision has been found to be impacting founders classified as promoters at the time of filing of DRHP. The proposal approved by the Board shall facilitate founders who received such benefits at least one year prior to the filing of DRHP with the Board, to continue holding, or exercising such benefits even after being specified as the promoter and the company becoming a listed entity,' the regulator said. These proposals as approved by the board are expected to assist public companies who are intending to list after undertaking reverse flipping (i.e. shifting the country of incorporation from a foreign jurisdiction to India) and relax certain requirements relating to share based benefits granted to founders prior to the company undertaking the IPO. With an objective to enhance ease of doing business for AIFs, the SEBI board approved the proposal to permit Category I & II AIFs to offer co-investment scheme (CIV scheme). This will further facilitate AIFs and investors to co-invest and will support capital formation in unlisted companies through AIFs. Co-investment refers to investment made by a manager or sponsor of the AIF or by investor of Category I and II AIFs in unlisted investee companies where such a Category I or Category II AIF(s) makes investment. At present, co-investment for AIF investors is facilitated through Co-investment Portfolio Managers under Portfolio Management Service (PMS) regulations. The regulator said that a separate CIV scheme shall be launched for each co-investment in an investee company subject to safeguards to ensure that the scheme is used only for bona fide purposes. The SEBI board has also decided to introduce a settlement scheme for certain stock brokers who traded on the National Spot Exchange Ltd (NSEL) platform and had applied/ were registered with SEBI as trading member / clearing member. The scheme will provide an opportunity to such stock brokers against whom enforcement actions have been taken by SEBI. By availing the benefit of the scheme, the stock brokers may settle such proceedings and seek expeditious conclusion of the said proceedings.
Bloomberg
3 days ago
- Business
- Bloomberg
India SEBI Eases Rules for Global Funds Buying Sovereign Bonds
India's securities market regulator on Wednesday relaxed certain rules for foreign funds investing in local government bonds, to increase participation from funds tracking global bond indexes. Existing and new funds that exclusively invest in government securities under the Fully Accessible Route or FAR will not be required to furnish investor group details, the regulator said in a statement after its board meeting in Mumbai.
Reuters
02-06-2025
- Business
- Reuters
India's index-linked bonds see record foreign selling in May on profit-booking, currency swings
MUMBAI, June 2 (Reuters) - Foreign investors sold Indian government bonds included in global indexes for a second straight month in May, driven by profit-taking and currency volatility rather than a change in sentiment towards the country, several investors said. Foreign investors offloaded 123.2 billion rupees ($1.44 billion) of Indian bonds under the Fully Accessible Route in May, the highest since its 2020 launch, after selling 111.4 billion rupees in April. They have invested 1.20 trillion rupees in Indian bonds till March since June 2024, when Indian bonds were included in the JPMorgan emerging debt market index. "The recent outflows are best viewed through the lens of profit-taking after a strong run, rather than a shift in fundamental conviction," said Rong Ren Goh, portfolio manager at Eastspring Investments, which manages $256 billion of assets. Some headwinds, including geopolitical tensions and uncertainty over the new RBI governor's stance on FX policy, may have also led investors to trim exposure and rebalance portfolios, he added. The Indian rupee has grown more volatile over the past six months since new RBI Governor Sanjay Malhotra took charge in December, with implied volatility averaging 4.26%, up from 2.24% during the final six months of former governor Shaktikanta Das's tenure. A rise in U.S. Treasury yields due to fear of a wide budget gap and inflationary impact of President Donald Trump's tariff policies and a drop in Indian rate due to declining inflation have also narrowed the yield differential between the two markets. The spread between Indian and U.S. bond yields have collapsed to 21-year low of around 170 bps now, from 250 bps early November. "This (selling in Indian bonds) was not driven by skepticism towards India, but rather by shifts in global macro sentiment," Jean‑Charles Sambor, head of emerging markets debt at TT International Asset Management said, that manages $3.15 billion of assets across EM. "We do not see this (outflows) as a game changer. Sentiment towards Indian bonds is likely to improve as inflation continues to decline and there is more fiscal space," Sambor said, adding he remains constructive on rupee bonds and believes appetite for local currency bonds is returning. ($1 = 85.3790 Indian rupees)
Yahoo
02-06-2025
- Business
- Yahoo
India's index-linked bonds see record foreign selling in May on profit-booking, currency swings
By Dharamraj Dhutia MUMBAI (Reuters) -Foreign investors sold Indian government bonds included in global indexes for a second straight month in May, driven by profit-taking and currency volatility rather than a change in sentiment towards the country, several investors said. Foreign investors offloaded 123.2 billion rupees ($1.44 billion) of Indian bonds under the Fully Accessible Route in May, the highest since its 2020 launch, after selling 111.4 billion rupees in April. They have invested 1.20 trillion rupees in Indian bonds till March since June 2024, when Indian bonds were included in the JPMorgan emerging debt market index. "The recent outflows are best viewed through the lens of profit-taking after a strong run, rather than a shift in fundamental conviction," said Rong Ren Goh, portfolio manager at Eastspring Investments, which manages $256 billion of assets. Some headwinds, including geopolitical tensions and uncertainty over the new RBI governor's stance on FX policy, may have also led investors to trim exposure and rebalance portfolios, he added. The Indian rupee has grown more volatile over the past six months since new RBI Governor Sanjay Malhotra took charge in December, with implied volatility averaging 4.26%, up from 2.24% during the final six months of former governor Shaktikanta Das's tenure. A rise in U.S. Treasury yields due to fear of a wide budget gap and inflationary impact of President Donald Trump's tariff policies and a drop in Indian rate due to declining inflation have also narrowed the yield differential between the two markets. The spread between Indian and U.S. bond yields have collapsed to 21-year low of around 170 bps now, from 250 bps early November. "This (selling in Indian bonds) was not driven by skepticism towards India, but rather by shifts in global macro sentiment," Jean‑Charles Sambor, head of emerging markets debt at TT International Asset Management said, that manages $3.15 billion of assets across EM. "We do not see this (outflows) as a game changer. Sentiment towards Indian bonds is likely to improve as inflation continues to decline and there is more fiscal space," Sambor said, adding he remains constructive on rupee bonds and believes appetite for local currency bonds is returning. ($1 = 85.3790 Indian rupees)
Economic Times
02-06-2025
- Business
- Economic Times
India's index-linked bonds see record foreign selling in May on profit-booking, currency swings
Foreign investors sold Indian government bonds included in global indexes for a second straight month in May, driven by profit-taking and currency volatility rather than a change in sentiment towards the country, several investors said. ADVERTISEMENT Foreign investors offloaded 123.2 billion rupees ($1.44 billion) of Indian bonds under the Fully Accessible Route in May, the highest since its 2020 launch, after selling 111.4 billion rupees in April. They have invested 1.20 trillion rupees in Indian bonds till March since June 2024, when Indian bonds were included in the JPMorgan emerging debt market index. "The recent outflows are best viewed through the lens of profit-taking after a strong run, rather than a shift in fundamental conviction," said Rong Ren Goh, portfolio manager at Eastspring Investments, which manages $256 billion of assets. Some headwinds, including geopolitical tensions and uncertainty over the new RBI governor's stance on FX policy, may have also led investors to trim exposure and rebalance portfolios, he added. The Indian rupee has grown more volatile over the past six months since new RBI Governor Sanjay Malhotra took charge in December, with implied volatility averaging 4.26%, up from 2.24% during the final six months of former governor Shaktikanta Das's tenure. ADVERTISEMENT A rise in U.S. Treasury yields due to fear of a wide budget gap and inflationary impact of President Donald Trump's tariff policies and a drop in Indian rate due to declining inflation have also narrowed the yield differential between the two markets. The spread between Indian and U.S. bond yields have collapsed to 21-year low of around 170 bps now, from 250 bps early November. ADVERTISEMENT "This (selling in Indian bonds) was not driven by skepticism towards India, but rather by shifts in global macro sentiment," Jean-Charles Sambor, head of emerging markets debt at TT International Asset Management said, that manages $3.15 billion of assets across EM. "We do not see this (outflows) as a game changer. Sentiment towards Indian bonds is likely to improve as inflation continues to decline and there is more fiscal space," Sambor said, adding he remains constructive on rupee bonds and believes appetite for local currency bonds is returning. ($1 = 85.3790 Indian rupees) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
