P-Note rumours help recovery
A news flash on a leading business channel that capital market watchdog SEBI may review its earlier policy banning participatory notes with equity futures as the underlying, contributed to the recovery on Monday.
When contacted by ET, highly placed sources in SEBI denied any such proposal as being under consideration. FIIs have been net sellers of Indian equities since October last year, and this coincides with the SEBI decision to curb the use of P-notes by overseas investors.
A reversal of decision to phase out P-notes would be not only be a throwback to old times when lot of accounted money was flowing into the stock market through supposedly respectable fronts, but it would also be go against the finance ministry’s attempts to moderate capital flow in the short term.
Besides the new SEBI chairman would not liked to be perceived as one reversing his predecessor’s policies.
JPA’s Sensex entry raises eyebrows
The move to include Jaiprakash Associates (JPA) in the Sensex has baffled quite a few market watchers. The stock was in the midst of a controversy just a few weeks back.
Irate fund managers pummelled the stock on lack of clarity regarding the company’s stake holding in its unlisted subsidiary Jaypee Infratech (JIL). Somehow, these fund managers got an impression that JPA’s holding in the subsidiary had fallen to 55% from 100% earlier.
Subsequently JPA executive chairman, Manoj Gaur clarified that the company held 100% in JIL and that there was no dilution. But the sagging stock price of JPA seems to indicate that minority shareholders are not convinced, despite a couple of rosy reports from leading brokerage houses giving the management a clean chit.
The stock price is down 28% over the last one month, and has more than halved from its highs in January. Also, market watchers point that both cement and construction — the two major business segments of JPA — are more than adequately represented in the Sensex.
A news flash on a leading business channel that capital market watchdog SEBI may review its earlier policy banning participatory notes with equity futures as the underlying, contributed to the recovery on Monday.
When contacted by ET, highly placed sources in SEBI denied any such proposal as being under consideration. FIIs have been net sellers of Indian equities since October last year, and this coincides with the SEBI decision to curb the use of P-notes by overseas investors.
A reversal of decision to phase out P-notes would be not only be a throwback to old times when lot of accounted money was flowing into the stock market through supposedly respectable fronts, but it would also be go against the finance ministry’s attempts to moderate capital flow in the short term.
Besides the new SEBI chairman would not liked to be perceived as one reversing his predecessor’s policies.
JPA’s Sensex entry raises eyebrows
The move to include Jaiprakash Associates (JPA) in the Sensex has baffled quite a few market watchers. The stock was in the midst of a controversy just a few weeks back.
Irate fund managers pummelled the stock on lack of clarity regarding the company’s stake holding in its unlisted subsidiary Jaypee Infratech (JIL). Somehow, these fund managers got an impression that JPA’s holding in the subsidiary had fallen to 55% from 100% earlier.
Subsequently JPA executive chairman, Manoj Gaur clarified that the company held 100% in JIL and that there was no dilution. But the sagging stock price of JPA seems to indicate that minority shareholders are not convinced, despite a couple of rosy reports from leading brokerage houses giving the management a clean chit.
The stock price is down 28% over the last one month, and has more than halved from its highs in January. Also, market watchers point that both cement and construction — the two major business segments of JPA — are more than adequately represented in the Sensex.
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