Sebi reduces public issue timeline to 12 days

The Securities and Exchange Board of India (Sebi) has proposed to reduce the time between the closure of a public issue and its listing to 12 days from the current threshold of 22 days. This will be applicable to public issues will op[en after May 1 2010. It takes bout 3 weeks now.

This way, small time players who want to make some quick buck for listing gains can get better ROI given this reduction.

With ASBA already in place, investing IPO has become that much for friendly for retail investors.

What more can come in IPO markets ??.

Banks to give 3.5% p.a. returns on savings accounts

Starting 1 April, we all will get 3.5% per annum interest for funds that are idle in our savings bank accounts. Earlier banks were mnadated to give 3.5% per annum returns on the lowest balance between the 10th and the end of any month.

Assume that in month, one had deposited a large sum on on the 15th of a month and keep it there for the rest of the month. One would tend to think it will get some interest because the money sat in your account for 15 days, one does not. Because the minimum balance in your account from the 10th to the 15th is zero, that is the amount picked up to calculate the interest.

Banks will have to give interest on a daily closing basis.

Government to contribute in New Pension Scheme (NPS)

In the recent budget, there is a proposal that the government will match contributions upto Rs 12,000 a year to people who contribute up to Rs 12,000 a year into their New Pension System (NPS) accounts as a perk and boost investment in NPS which has not taken of in a big way.

More on NPS and the Pros and Cons of the same in future.

Meanwhile, happy reading.

SEBI to allow allow exchange-traded interest futures

After the launch of the futures for exchange rates between the US dollar and the Indian Rupee, The Securities and Exchange Board of India (Sebi) will allow exchange-traded interest rate futures in January, a senior official said on Monday.

“We are on track to launch interest rate futures. It will be launched by January”, T.C. Nair, director at the markets watchdog told an industry conference. Sebi is also considering launching exchange-traded corporate bonds and would unveil it in a “couple of months”, he added. “We are looking at an exchange-traded corporate bond market, because there is more transparency and manipulations are not possible,” Nair said.

Nair also hinted at the possibility of a fourth exchange for currency futures in the near future. “There are some banks and financial institutions which have applied and we are considering their proposal,” he said.

Home loans at a concessional rate of 9.5% for 1st five years

Public sector banks (PSBs) are set to offer home loans of up to Rs20 lakh at a concessional rate of 9.5% for a period of five years as part of the government’s fiscal stimulus package announced on Sunday to spur spending and bolster sagging economic growth.

All new home loans advanced by state-owned banks until 30 June will come at the 9.5% rate, which will be reset five years later depending on the prevailing trend, according to two senior bankers involved in devising the package who didn’t want to be named.

Securities and Exchange Board of India to tighten norms for FMPs

In a significant development, market regulator Sebi, or Securities and Exchange Board of India, has decided to tighten norms for FMPs, or fixed maturity plans, and has put all fresh offer documents that allow an exit option on hold.

Sebi has decided to put all fresh FMP offer documents that allow an exit option on hold and will relook at FMP norms. It will also look at disclosures and need for sectoral limits. The regulator will look at exit clauses on FMPs and wants tougher exit clauses. Sebi also said it will discuss the issue with the industry once the immediate liquidity concerns subside.

Meanwhile, the AMFI, or Association of Mutual Funds in India, Chairman said the industry recognises the concerns and that it will work with the regulator to avoid any future crises and Liquidity pressure on mutual funds was easing.