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Monday, March 23, 2015

SEBI replacing RBI means complete privatization of Indian Economy and mass destruction resultant. It literally means making in India a jointly owned periphery of United States of America and Israel as well. As it would reduce the financial management to sensex,nifty and IFSC skipping Indian Economy and excluding Indian people. On the other hand,Digital India the RSS gamechanger means complete destruction of green rural agrarian India and replacing it with Biometric Robotic India of smart and super smart cities to be inhibited by cloned citizens deprived of citizenship. Palash Biswas

SEBI replacing RBI means complete privatization of Indian Economy and mass destruction resultant.


It literally means making in India a jointly owned periphery of United States of America and Israel as well. As it would reduce the financial management to sensex,nifty and IFSC skipping Indian Economy and excluding Indian people.



On the other hand,Digital India the RSS gamechanger means complete destruction of green rural agrarian India and replacing it with  Biometric  Robotic India of smart and super smart cities to be  inhibited by cloned citizens deprived of citizenship.



Palash Biswas


Paving the way for creation of India's first International Financial Services Centre in Gujarat's GIFT City, regulator Sebi approved a relaxed set of norms for setting up of stock exchanges and other capital market infrastructure in such centres.


The impact is greater,Jor kaa Jhatka Dhire se lage! Ambedkar is responsible for the constitution of Reserve Bank of India,but the Bahujan Samaj,the majority demography which in its saffron avatar ensured necessary mandate for second phase of economic ethnic cleansing upgrading the exclusion default,blinded with identity politics packed with passionate self destruction, would never realise as it has neither interest nor understanding of this economic transition.


But most amusing part of the irony is that those who are believed to understand the finance and economy better than anyone else and those who have to bear the burns most,the officers and employees of Public Sector Banks already selected to be disinvested making them holding companies,seem to be quite unaware as RESEVE BANK OF India is being dismantled as the Planning commision has been.


The signs are more omnipotent as to deepen markets and help raise funds for business and infrastructure projects, Sebi today announced a slew of measures including for listing of municipal bonds and for setting up of a global financial hub within India on the lines of Singapore and Dubai.


It is a perfect cricket world cup carnival in Indian Economics.


Billions of dollars on stake has already doctored the pitches to get the fixed results on which corporate companies around the world have invested to get the vital breakthrough in the greatest Emerging market that our nation is reduced to.


I am not writing on Cricket and I mean the financial management of the nation which has the greatest impact on our day today life.


SEBI replacing RBI means complete privatization of Indian Economy and mass destruction resultant.


Mind you,markets regulator Sebi said as earlier as on 21st March.

The new guidelines for setting up the country's first International Financial Services Centre (IFSC) in Gujarat's GIFT City will be put in place this month.


"GIFT has been announced in the Budget and the timeframe has also been given, effective April 1. We are in constant touch with RBI," Sebi Chairman U K Sinha said here today.


"RBI and Sebi will come out with formulations before April 1," he added.

Finance Minister Arun Jaitley had announced in the Budget last month that India's first IFSC would be set up in GIFT City in Gujarat.


What happened?


Next day after this statement, SEBI declared the norms for IFSC and ARUN Jaitley sidelined Reserve Bank of India.


It literally means making in India a jointly owned periphery of United States of America and Israel as well. As it would reduce the financial management to sensex,nifty and IFSC skipping Indian Economy and excluding Indian people.


On the other hand,Digital India the RSS gamechanger means complete destruction of green rural agrarian India and replacing it with  Biometric  Robotic India of smart and super smart cities to be  inhibited by cloned citizens deprived of citizenship.


Just remember,Arun Jaitley, the man selected by the ruling hegemony of Hindu Imperialism aligned with global order, announced that the regulations for setting up International Financial Services Centre (IFSC) in GIFT city in Gujarat will be out in March and almost three weeks after,the board of Securities and Exchange Board of India (Sebi) on Sunday approved the IFSC guidelines, 2015 that allows Indian as well as foreign stock exchanges, clearing corporations and depositories to set up subsidiaries to undertake their business in IFSC.


Under the IFSC guidelines that will regulate financial services relating to securities market in an International Financial Services Centre, Sebi relaxed the shareholding and net worth requirement norms for intermediaries setting up their subsidiaries.


Stating that the new IFSC Guidelines, 2015 would help create vibrant capital market activity in such centres, Sebi chairman UK Sinha said, "Stock exchanges and clearing corporations would be provided concessions for setting up ventures in the IFSC. All existing exchanges would be allowed to set up their subsidiaries in the IFSC under the relaxed regimes."


Thus,the Finance Minister has rolled the ball and SEBI is his option replacing Reserve Bank Of India.


The markets regulator also made it easier for banks to acquire control in distressed listed companies, by converting their debt into equity, while it tightened the noose on entities indulging in market manipulation and insider trading by selective leak of information at the cost of investors.


Besides, Sebi also announced a roadmap for the new fiscal, beginning next month, with regard to new norms to help young entrepreneurs raise funds through listing of start-ups and crowd-sourcing, while it would streamline and strengthen its enforcement process for better efficiency.


Proposing a new avatar by adopting latest technologies, Sebi said it will tap social media in a big way to reach out to the investors and make it easier for them through measures like e-IPO and Aadhar-based e-KYC initiatives.


Sebi also pitched for allowing pension money into capital markets and creating an enabling environment for REITs (Real Estate Investment Trusts) to flourish, after Finance Minister Arun Jaitley addressed the board members and top officials of the regulatory authority in his post-Budget meeting with them.


Jaitley also reviewed the state of economy and the capital markets and explained his Budget proposals. He discussed the capacity building and other infrastructure needs for merger of commodities regulator FMC with Sebi to create a unified markets regulator.

To safeguard interest of investors, Sebi Chairman U K Sinha said listed companies would need to disclose their board decisions within 30 minutes, while all other 'material information' would need to be made public within 24 hours, failing which they would face strict penal action.

Tightening its corporate disclosure norms, Sebi said such disclosures would need to be made "as soon as reasonably practicable", but not later than the given time limit.


The information, including about material events, would need to be mandatorily disclosed through stock exchange platforms for the benefit of investors, while the companies would have to provide "specific and adequate reply" to queries with respect to rumours and media reports.


The new disclosure requirements are aimed at checking a widespread practice among the Indian companies of selectively leaking the information, including through media and without informing the investors first, for personal gains by promoters and management by way of inflating the valuations in the stock market and before merger and acquisition deals.


In a draft paper last year, Sebi had proposed a 15-minute time limit for announcement of board decisions, but has now decided to keep it at 30 minutes. There is no such specific limit in the existing regulations.


Sinha said that the regulator is strictly monitoring the compliance of disclosure or listing guidelines, which are now being converted into regulations for better compliance.


Paving the way for creation of India's first IFSC (International Financial Services Centre) in Gujarat's GIFT City, Sebi also approved a relaxed set of norms for setting up of stock exchanges and other capital market infrastructure in such centres.


The game-changing regulations are aimed at creating a vibrant IFSC within India on the lines of Dubai and Singapore and help check the flight of trading in rupee and Indian securities to such offshore financial hubs.

The move would allow companies incorporated outside India to raise money in foreign currencies by issuance and listing of their equity shares on the stock exchanges within the IFSC, where individual and institutional investors from India and abroad, including NRIs, would be allowed to trade.


The IFSC regulatory regime would allow the Indian and foreign stock exchanges to set up separate bourses within the IFSC as subsidiaries, while market entities from India and abroad would be allowed to operate there by providing issuance and trading in depository receipts and debt securities of domestic as well as overseas companies.


The capital and other requirements have been relaxed for some time for the exchanges, clearing corporations and depositories to set shop in the IFSC.


Jaitley was accompanied by Minister of State for Finance Jayant Sinha during his interaction with Sebi's board and other senior officials of the markets regulator.


Besides Chairman Sinha, Sebi's 8-member Board includes three Whole Time Members (Prashant Saran, Rajeev Agarwal and S Raman), an independent director and nominees of Finance Ministry, Corporate Affairs Ministry and RBI.


Mutual funds and Alternative Investment Funds set up in the IFSC can also invest in the securities listed there.

To help banks deal with the problem of non-performing assets, Sebi relaxed norms for them to convert their debt into equity in such defaulting companies — a move that may lead to a sharp surge in restructuring of bank loans.


The total non-performing assets of public sector banks alone stand at nearly Rs 3 lakh crore, while top 30 defaulters are sitting on bad loans worth Rs 95,122 crore as on December 2014. In the past, banks have converted bad debt into equity in a few cases like Kingfisher but the conversion has been mostly difficult including due to regulatory and legal issues.


For municipal bonds, Sebi approved a new set of norms for issuance and listing of such securities on stock exchanges.

These bonds can be issued by the municipal authorities to the public and institutional investors, including sovereign wealth funds and pension funds from abroad, and help raise funds for urban development and smart cities project of the government, Sinha said.

The guidelines for issuance and listing of these securities, which are very popular in the US and other Western markets and are commonly known as Muni Bonds, were approved by Sebi's board today and the final norms would be notified in the next 6-8 weeks.

The new norms would come with adequate safeguards and would provide for disclosure requirements to be made by the prospective issuers.

In the US, muni bonds have attracted investments totalling over USD 500 billion and are among preferred avenues for household savings.


While such bonds have been issued by various municipal authorities in the country, the total funds raised through them stand at only about Rs 1,353 crore.


The Bangalore Municipal Corporation was the first municipal corporation to issue a municipal bond of Rs 125 crore with a state guarantee in 1997.


However, the access to capital market commenced in January 1998, when the Ahmedabad Municipal Corporation (AMC) issued the first municipal bonds in the country without state government guarantee for financing infrastructure projects in the city. AMC raised Rs 100 crore through its public issue.


Among others, Hyderabad, Nashik, Visakhapatnam, Chennai and Nagpur municipal authorities have issued such bonds. However, there were provisions as yet for listing and subsequent trading of muni bonds on stock exchanges in India.


Making it easier for domestic funds to manage offshore pooled assets, Sebi today relaxed its norms by dropping the '20-25 rule', which required a minimum of 20 investors and a cap of 25 per cent on investment by an individual, for funds from low-risk foreign investors.

The BSE Brokers Forum said that Sebi's initiative to use technology for easing the investment process and facilitate the investor education process using social media was a welcome move.

Terming the usage of technology for investments as a step in the right direction, BSE Brokers Forum's Vice Chairman Alok Churiwala said,

"These initiatives will go a long way in increasing the bandwidth of capital market in sync with the government of India's plan of Digital India to build a robust, safe and vibrant investment culture across the country."

On the impending FMC merger with Sebi, he said it will aid in swift recovery of the investors wealth engrossed in the NSEL scam in the most amicable way without any element of vengeance, keeping the larger interest of the investment cult in the economy.



Stock exchanges and clearing corporations would be provided concessions for setting up ventures in the IFSC. All existing exchanges would be allowed to set up their subsidiaries in the IFSC under the relaxed regimes," its chairman U.K. Sinha said after a meeting of the Sebi board.

The BSE and NSE have already signed MoUs for setting up international exchanges at Gujarat International Finance Tec-City (GIFT City) in the state capital Gandhinagar.

Under the new regime, rules and regulations differ and are more relaxed from those applicable outside the IFSCs.

The move is expected to generate an estimated Rs.1,334 crore per day -- or Rs.200,000 crore per year -- worth of trading in rupee derivatives that currently goes to exchanges outside India.

GIFT City chief execitive Ramakant Jha said the new guidelines would provide a much-needed fillip to the new IFSC regime and would save billions of dollars worth financial services business that India is losing out to other global hubs.

Bypassing Resreve Bank of India and backed by the RSS Finance Minister of Global order for India,Nr,Jaitley,India's capital market regulator the Securities and Exchange Board of India (SEBI) has relaxed norms for conversion of debt of listed companies into equity by banks and financial institutions in a meeting on Sunday.

Although banks were already allowed to convert such debt into equity, they were constrained by the pricing which required the conversion to take place at market prices. The guidelines issued by SEBI pointed to use of a fair-price mechanism in valuation of debt altering the current rules. The move would help the banks to reach a price so that the value doesn't go below the face value for restructured debt of distressed firms.

In the board meeting, SEBI approved the proposal, prepared in consultation with banking regulator RBI, to relax the applicability of certain provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 in cases of conversion of debt into equity of listed borrower companies in distress by the lending institutions.

"Such relaxation in terms of pricing   will be subject to the allotment price being as per a fair price formula prescribed and not being less than the face value of shares… Other requirements would be available if conversions are undertaken as part of the proposed Strategic Debt Restructuring (SDR) scheme of RBI," it said.

According to SEBI, this is intended to revive such listed companies and provide more flexibility to the lending institutions to acquire control over the company in the process of restructuring.

The profits of Indian banks have suffered as bad loans have increased with weak economic growth in the recent past. As per data released by the RBI, the gross

non-performing assets (NPAs) of the PSU banks in particular were Rs 2,60,531 crore as on December 31, 2014.

Disclosure norms

SEBI has also tightened the disclosure norms requiring listed firms to make the disclosure of all events/information, first to stock exchange(s), as soon as reasonably practicable and not later than 24 hours of occurrence of event/information.

It has added that disclosure of outcome of board meetings shall be made within 30 minutes of the closure of the meeting.

The regulator said the listed entities shall disclose on its website all events/information which is material and such information shall be hosted for a minimum period of five years and thereafter as per the archival policy of the listed entity, as disclosed on its website.

It has also asked listed firms to disclose all events or information with respect to subsidiaries which are material for the listed parent.

SEBI also set some working guidelines on identifying if a development is 'material' and added that it will specify an indicative list of information which may be disclosed upon occurrence of an event.

Framework for GIFT

SEBI also gave approval for implementation of SEBI (International Financial Service Centre) Guidelines, 2015 after the government's announcement of Gujarat International Finance Tec-City (GIFT) in the Budget presented last month. "These guidelines facilitate and regulate financial services relating to securities market in an International Financial Services Centre (IFSC) set up under Section 18(1) of Special Economic Zones Act, 2005 and matters connected therewith or incidental thereto," SEBI said.

The new norms are expected to open up the market for foreign stock exchanges, clearing corporations and depositories to set up subsidiaries within the IFSC space subject to certain relaxed norms on shareholding and net worth.

The SEBI also laid down rules for mutual funds and Alternative Investment Funds to invest in securities listed in IFSC, securities issued by companies incorporated in IFSC and securities issued by foreign issuers.


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