Latest news with #G-Secs
Economic Times
13 hours ago
- Business
- Economic Times
Will eased KYC norms revive foreign investment in Indian sovereign bonds?
Mumbai: India's regulatory latitude on compliance and KYC norms for foreign funds buying only sovereign bonds is expected to burnish the allure of an asset class already featuring in global gauges, although an immediate halt to recent outflows would require worldwide rate dynamics and geopolitical risks to settle in favour of the emerging markets. ADVERTISEMENT "Considering that the Indian economy is growing and the market is coming up the maturity curve with inclusion in global indices, it is quite logical for making the investing route easier for FPIs," said Divaspati Singh, partner at Khaitan & Co. According to a senior official at a foreign bank, there has been a long-pending demand to ease the operational issues around reporting and KYC. On Wednesday, Sebi approved the proposal to relax certain regulatory requirements for all existing and prospective foreign portfolio investors that exclusively invest in G-Secs. Overseas investors have been shedding Indian bonds of late. Easing of the KYC norms are unlikely to lead to an immediate trend reversal. "While this may not see a sudden spurt of inflows, it does make life easier for FPIs participating only in G-secs," Singh overseas banker expects long-term benefits from Sebi's move. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
13 hours ago
- Business
- Time of India
Will eased KYC norms revive foreign investment in Indian sovereign bonds?
Mumbai: India's regulatory latitude on compliance and KYC norms for foreign funds buying only sovereign bonds is expected to burnish the allure of an asset class already featuring in global gauges, although an immediate halt to recent outflows would require worldwide rate dynamics and geopolitical risks to settle in favour of the emerging markets. "Considering that the Indian economy is growing and the market is coming up the maturity curve with inclusion in global indices, it is quite logical for making the investing route easier for FPIs," said Divaspati Singh, partner at Khaitan & Co. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Chi phí cấy ghép răng là bao nhiêu vào năm 2025 (kiểm tra giá) Cấy ghép răng | Quảng cáo tìm kiếm Tìm hiểu thêm Undo According to a senior official at a foreign bank, there has been a long-pending demand to ease the operational issues around reporting and KYC. On Wednesday, Sebi approved the proposal to relax certain regulatory requirements for all existing and prospective foreign portfolio investors that exclusively invest in G-Secs. Bonds Corner Powered By Will eased KYC norms revive foreign investment in Indian sovereign bonds? India's relaxation of KYC norms for foreign funds investing solely in sovereign bonds aims to enhance the appeal of this asset class, already included in global indices. While easing operational issues is a welcome step, an immediate reversal of recent outflows hinges on favorable global rate dynamics and reduced geopolitical risks. Experts anticipate long-term benefits for FPI participation in G-secs. India's Larsen & Toubro may explore another ESG bond issue after debut attracts premium, spokesperson says Indian bond yields marginally higher; focus on oil, debt supply Sebi eases norms for foreign investors who only buy government bonds Lending yields set to shrink in FY26 as banks play it safe Browse all Bonds News with Overseas investors have been shedding Indian bonds of late. Easing of the KYC norms are unlikely to lead to an immediate trend reversal. "While this may not see a sudden spurt of inflows, it does make life easier for FPIs participating only in G-secs," Singh said. An overseas banker expects long-term benefits from Sebi's move. Live Events
Indian Express
2 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.
Time of India
2 days ago
- Business
- Time of India
Govt bond push: Sebi eases compliance rules for G-Sec FPIs, KYC norms and disclosure timelines relaxed
In a move aimed at boosting long-term foreign investment in Indian debt markets, Sebi on Wednesday approved several compliance relaxations for Foreign Portfolio Investors (FPIs) that invest exclusively in Indian government securities (G-Secs). The decision, taken at the regulator's board meeting, is expected to simplify onboarding, reduce paperwork, and improve ease of doing business for these investors at a time when global interest in India's debt market is rising. 'With an objective 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 FPIs that exclusively invest in G-Secs,' Sebi said in a statement, PTI reported. Currently, FPIs invest in Indian debt through the General route, the Voluntary Retention Route (VRR), and the Fully Accessible Route (FAR). Both FAR and VRR allow investments with minimal restrictions. As part of the new measures, Sebi said KYC review timelines for G-Sec FPIs will now be aligned with Reserve Bank of India (RBI) norms, resulting in fewer periodic compliance requirements. Moreover, those investing via the FAR route will no longer need to disclose investor group details. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Поза во сне может многое рассказать о вашем характере! Удивительные Новости Undo The regulator also decided to allow Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Resident Indian individuals to be part of such government securities-focused FPIs (GS-FPIs), without the restrictions that typically apply to other FPI categories. However, existing rules under the Liberalised Remittance Scheme and limits for global funds with less than 50% Indian exposure will continue to apply. In another easing of norms, Sebi set a uniform 30-day window for reporting all material changes by such investors, replacing the current requirement that varies between 7 and 30 days depending on the type of change. Sebi said these changes would apply during onboarding and any future transition between GS-FPI and other FPI categories, subject to conditions that may be specified by the regulator. India's inclusion in global bond indices such as those by JP Morgan, Bloomberg, and FTSE is expected to draw greater foreign interest in G-Secs. According to Sebi data, FPI investment in FAR-eligible bonds had already crossed Rs 3 lakh crore ($35.7 billion) by March 2025. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Business
- Time of India
IT sector poised for earnings surprise in FY26-27 on reviving tech spend: Christy Mathai
"Combination of these factors we are fairly positive on the EPS trajectory going ahead and this environment is very good for the private capex to grow as well because you have had interest rate cuts. The corporates can borrow cheaper. At present, they have significant cash on their books. But given the tariff uncertainty especially with respect to Trump and so on and so forth, there is some issues on that front," says Christy Mathai , Quantum AMC. Give us a sense of how you are positioning your portfolio amid all the geopolitical uncertainty we are seeing right now. How much of it is deployed? How much are you sitting in terms of cash? Christy Mathai: So, clearly this economic backdrop is pretty conducive compared to what it was, let us say, about three or six months back. What we have seen is the government is really pushing the pedal on growth and we have some indication of it as we look at the 4Q GDP numbers as well. Also, the inflation is clearly moderating and we do not think the current geopolitical issues would really change that materially unless the crude were to go really up which we do not foresee in a normal case scenario and against this backdrop, what we have seen is RBI is infusing liquidity and frontloaded quite a bit of interest rate cuts, so this should propel some sort of earnings growth going ahead, the CRR cut of 100 basis points was particularly positive, it has a multiplier impact on the economy because the lending increases assuming the bank do not park it in G-Secs and they start lending again. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Kulkas yang belum Terjual dengan Harga Termurah (Lihat harga) Cari Sekarang Undo So, combination of these factors we are fairly positive on the EPS trajectory going ahead and this environment is very good for the private capex to grow as well because you have had interest rate cuts. The corporates can borrow cheaper. At present, they have significant cash on their books. But given the tariff uncertainty especially with respect to Trump and so on and so forth, there is some issues on that front. But broadly, we think all the signs are right for the earnings growth to slowly pick up. Our concerns chiefly is on the valuations, given the 10% or more rally that we have seen in the past couple of months, valuation is the only concern for us and hence possibly, we are not looking at a great set of returns one-year or two-year out. But apart from that broadly earnings trajectory should be positive. Live Events But any new sector where you believe the earnings momentum can really take the sector higher from the current levels because a lot of sector churning is already underway. We have seen the runup in financials. Other than that, of late, it is the IT, select healthcare counters that are making a comeback. Christy Mathai: So, in terms of earnings, possibly where things can look up from our sense is purely looking at the IT pack. We have had possibly very near-term rally, so to say in it, but what we are looking at is most of the FY26 numbers have been dramatically cut, it is possibly in the vicinity of maybe 3% to 5% growth which possibly the managements are guiding, but we think this number at least maybe FY26-27 could be much better owing to the fact that the technology spends possibly can come back because we are sitting over a three years of absolutely no IT spends especially on the services part by the major banks in US or manufacturing sector. So, there is a possibility of that picking up, plus the margins also can expand given some of the cost levers that most of the IT players have in hand. So, we think you that could be a possible place where there could be earnings surprise as we move ahead. But broadly, if you were to just think about the consumption theme also, where we are invested through autos primarily which is also a play on interest rate cut and there could be better credit growth in that particular sector, which is at present not happening, so some of these two-wheeler volumes especially in the mass segment which have been hit by inflation for a long time which is now moderating can be a surprise going ahead. While we are talking about consumption, let us talk about an ancillary that is cement in a way. Give us a sense on where you are seeing cement as a sector moving ahead because we have seen benign raw material on the other hand, you have the monsoon overhang, so that seasonality is coming into play. Where do you see the cement sector headed now? Christy Mathai: So, we are invested in cement sector as a whole through one of the companies which is more contained to a specific geographic location where the price hike in the recent past has been good. But see over the course of the year you will have a usual seasonality play out, typically monsoon season you will see some demand moderation which picks up as you go ahead in the month of October or towards the Diwali, so that is the usual seasonality. The issue last year was one of a kind because you have had significant demand moderation along with fierce competitiveness because a lot of large players who have sort of consolidated were pushing up the volumes in through some of their acquired entities, so that was what is depressing the prices to a four-year or five-year low. Now, we see that improving which is sort of a big positive for the sector as a whole. Monsoon seasonality, it usually happens, so there is nothing concerning as such and the government capex and slowly the demand recovery in, let us say, the housing segment should be a key driver as you look at the cement stocks. We did touch upon select sectors there and also you did share your outlook on the earnings front, but if I have to ask you top three sectors where you are most bullish on which one those will be and the three sectors you believe will be languishing for some time from now to participate in the rally for Indian markets. Christy Mathai: So, clearly where we have large allocation are clearly the banks, financials which is not very different from when you look at an index perspective. But the point is here we think until now if you were to look at the whole people visualising the rate cut cycle, they were expecting an extended rate cut cycle, but with the stance change and the commentary that you hear looks like there will not be further rate cuts so what you will have there is a one or two, maybe three quarter impact on NIMs, but CRR cut is positive, so that is on the extreme near term in terms of what will happen. But otherwise, we think the credit growth should normalise ahead. IT is at 9%, sub-9% at the moment and the deposit challenges are slowly going away. So, you should see that credit growth pick up as you go through the year, possibly in the second half, so 12-13% is what we think the long-term on credit growth has been for a very long period of time, we do not see that change, and within that the private players would have their play with a slightly higher growth rates, so that remains a pocket which is very attractive to us and reasonably valued in our view. The other sector as I said was it and some bit in consumption which is especially the auto pack with primarily play on two wheelers, so that is broadly our sectors where we are reasonably positive on. We have picked up on some of the financial plays as well, something like an insurance which we have added in the recent past that also looks pretty attractive when you were to really think about long-term growth because there is significant protection gap as we see it in the life insurance space and the valuations are not so expensive. The pocket where we are not so convinced about is again this is primarily driven by valuations. You just look at some of the cap goods names, some of the names which are driven by order book especially dependent on how the government spend would be, those are the pockets where there could be room for disappointment going ahead in a sense and some of the capital market linked themes where there could be impact in one of these years, we cannot really pinpoint which year it would be. So, these would be places where we would be a little bit wary off, but by and large positive.
