SEBI order Dec 10 on Bajaj Finance plea in Karvy case, HDFC Bank, ICICI also go to SAT

Sebi’s prompt action against Karvy has resulted in nearly 83,000 investors getting back their securities. (Photo: Reuters)

2 min read . Updated: 03 Dec 2019, 12:21 PM ISTJayshree P. Upadhyay

• Sebi has estimated the total exposure of lenders to Karvy at ₹2,800 crore
• Bajaj Finance is aggrieved by the Sebi order, which prevents it from accessing its pledged shares

Mumbai: The Securities and Appellate Tribunal (SAT) on Tuesday gave Securities and Exchange Board of India (Sebi) time till 10 December to pass an order in the plea filed by Bajaj Finance Ltd against the capital market regulator’s move to transfer pledged shares to clients of the troubled Karvy Stock Broking Ltd.

Sebi has estimated the total exposure of lenders to Karvy at ₹2,800 crore, of which Bajaj Finance has an exposure of ₹345 crore as per a copy of the petition reviewed by Mint.

Bajaj Finance is aggrieved by the Sebi order, which prevents it from accessing its pledged shares. The firm claimed that it has the right to its pledged securities and that Sebi was wrong in returning the securities to the accounts of Karvy’s clients.

HDFC Bank Ltd, ICICI Bank Ltd and some other lenders also joined Bajaj Finance on Tuesday in its plea against the Sebi move. An order in their pleas will be passed later. SAT asked Sebi to hear Bajaj Finance’s plea by Wednesday.

Early on Monday, the National Stock Exchange of India Ltd (NSE) and the BSE suspended Karvy’s trading licence for all segments due to non-compliance with the exchange’s and Sebi norms. Multi Commodity Exchange (MCX) and MSEI also suspended the licence of the brokerage firm.\

This action follows the 22 November order by Sebi which had said the brokerage firm misused client securities and used it for other purposes. Karvy had sold clients securities and the proceeds were transferred to related party businesses such as Karvy Realty Ltd.

Sebi’s prompt action against Karvy has resulted in nearly 83,000 investors getting back their securities, which were illegally transferred by the brokerage firm to its own account and were even pledged without any authorisation.

With the latest transfer by National Securities Depository Ltd (NSDL), nearly 90% investors have got back their securities and the remaining ones will get after clearing their dues.

Karvy took loans to the tune of ₹600 crore by pledging securities worth more than ₹2,300 crore of 95,000 clients with lenders. Of these, 95,000 clients, nearly 83,000 of them have got their securities.

On 20 November, Bajaj Finance issued a loan recall notice to Karvy and the pledges against the loan would have been invoked on 23 November. Sebi had on 22 November barred depositories from transferring securities from Karvy’s account except to beneficial owners or clients who had paid in full. The petition also says Karvy had given a false undertaking to Bajaj Finance that these securities belonged to the brokerage.

https://www.livemint.com/market/stock-market-news/sebi-order-dec-10-on-bajaj-finance-plea-in-karvy-case-hdfc-bank-icici-also-go-to-sat-11575354685940.html

Share:

Read More

Stocks to Watch: Yes Bank, RBL Bank, DHFL, Bharti Airtel, Vodafone Idea

Shares of Yes Bank, RBL Bank, DHFL, Bharti Airtel, Vodafone Idea will be in focus today.

2 min read . Updated: 03 Dec 2019, 08:06 AM ISTDevansh Sharma

• Yes Bank on Monday filed an insolvency petition against Jaypee Healthcare before the Allahabad bench of NCLT
• Shares of DHFL will in focus as Mumbai bench of NCLT on Monday admitted RBI's petition seeking bankruptcy proceedings against the company
• 
  

From Discover on Google

https://www.livemint.com/market/stock-market-news/stocks-to-watch-yes-bank-rbl-bank-dhfl-bharti-airtel-vodafone-idea-11575340208143.html

Share:

Read More

Ujjivan Small Finance Bank IPO

 *Ujjivan Small Finance Bank IPO*

Dates:  *2nd December to 4th Dec*

Issue Size After Private Placement : *750 Crores*

Shareholder Category Reservation : *75 Crores*

Net Issue Size (Amount): *675 Crores*

Net Issue Size (Shares) : *18,24,32,423*

QIB 75%

HNI 15%

Retail 10%

Price Band : *Rs. 36 - Rs. 37*

Bid Lot Size : *400 Shares*

*SHAREHOLDERS CATEGORY DISCOUNT Rs. 2 PER SHARE*

Cut Off Date for ShareHolder Category : *22nd November*

*45,608* Applications Required for 1 Time in Retail Category

Share:

Read More

Ujjivan Small Finance Bank gets Sebi's go-ahead for Rs 1,200-cr IPO

As per the draft papers, the bank is proposing to undertake an initial public offering of equity shares of face value of Rs 10 each, comprising a fresh issue of shares aggregating up to Rs 12,000 crore.

Ujjivan Bank IPO Details

Issue Open	Nov 29, 2019 - Dec 3, 2019
Issue Type	Book Built Issue IPO
Issue Size	[.] Eq Shares of ₹10 (aggregating up to ₹1,200.00 Cr)
Fresh Issue	342,857,142 Eq Shares of ₹10 (aggregating up to ₹1,200.00 Cr)
Face Value	₹10 Per Equity Share
Issue Price	[.] to [.] Per Equity Share
Market Lot
Min Order Quantity
Listing At	BSE, NSE

Ujjivan Small Finance Bank has received markets regulator Sebi's go ahead to raise Rs 1,200 crore through an initial public offer (IPO). Microfinance lender Ujjivan Financial Services is the holding company of Ujjivan Small Finance Bank.

The bank, which had filed draft papers with the regulator in August, obtained its observations on October 16, according to the Securities and Exchange Board of India (Sebi).

The observations are very important to any company for launching public issues like initial public offer (IPO), follow-on public offer (FPO) and rights issue.

As per the draft papers, the bank is proposing to undertake an initial public offering of equity shares of face value of Rs 10 each, comprising a fresh issue of shares aggregating up to Rs 12,000 crore.

The proposed issue includes reservation of equity shares aggregating up to around Rs 120 crore for subscription by eligible shareholders of Ujjivan Financial.

The proceeds of the issue will be utilised towards augmenting the company's capital base to meet future requirements.

Ujjivan Financial Services had raised Rs 300 crore in February from a clutch of investors, including HDFC Life and Sundaram MF, in a pre-IPO placement. The funding valued the company at around Rs 2,000 crore.

After the IPO, Ujjivan Small Finance Bank will join listed peers like AU Small Finance Bank.

Earlier this month, Kerala-based CSB Bank, formerly known as Catholic Syrian Bank, received Sebi's go-ahead to launch an initial share-sale.

Share:

Read More

Stocks In News

RComm, Tata Steel, Asian Oilfield, HIL, HCL Info, BPCL, Wockhardt, Unichem Lab

Share:

Read More

Market Headstart: Nifty seen opening flat; HDFC, Power Finance top buys

Trends on SGX Nifty indicate a flat opening for the broader index in India, with a 2 points gain or 0.02 percent. The Nifty futures were trading around 11,945-level on the Singaporean Exchange.

The Nifty50 is expected to open flat on Monday following mixed trend seen in other Asian markets.

Trends on SGX Nifty indicate a flat opening for the broader index in India, with a 2 points gain or 0.02 percent. The Nifty futures were trading around 11,945-level on the Singaporean Exchange.

The rupee appreciated by 18 paise to close at 71.78 against the American currency on Friday, extending gains for a second day on the back of easing crude oil prices and positive trends in equity markets.

On the institutional front, FPIs were net sellers in Indian markets for Rs 1008 cr, while the DIIs were net buyers to the tune of Rs 537 cr, provisional data showed.

Foreign portfolio investors (FPIs) pumped in a net sum of Rs 19,203 crore into the domestic capital markets in the first half of November amid encouraging domestic and global factors.

Stocks in news:

Foreign brokerage firm Nomura Singapore picked up 9,50,000 shares of Eris Lifesciences at the price of Rs 410 per share through a bulk deal on BSE on November 15.

Telecom operator Tata Teleservices (Maharashtra) on November 15 posted a loss of Rs 2,335 crore on account of provisioning for liabilities after the Supreme Court ruling on statutory dues.

Direct-to-home operator Dish TV India Ltd has reported a consolidated net loss of Rs 96.37 crore for the quarter ended on September 30, 2019. The Essel Group firm had reported a net profit of Rs 19.73 crore in the July-September quarter a year ago, Dish TV said in a BSE filing.

ADAG stocks will be in focus follwoing resignation of Anil Ambani as the director of Reliance Communications.

Share:

Read More

Parents can't be paying perennially for adult children's money mistakes

Helping your children in times of need would not be out of place. But such occurrences should be rare - Dev Ashish

In an earlier article we discussed why you can’t rely on your kids for your post-retirement needs. That is at one end of the spectrum.

At the other end is a situation where your adult children (who should be capable of supporting themselves) become dependent on you for their needs. That is, they are unprepared to handle their finances on their own and regularly look up to you for help.

This discussion is not about children with special needs. It’s about adults who are fully capable of supporting themselves.

Financial independence

Helping your children in times of need would not be out of place. But when the frequency of such needs increases to the extent that it becomes a regular expense, then something isn’t right.

You would want your children to be independent. It’s true that ‘what-I-have-is-also-theirs’ kind of view is what parents have. And we cannot question that. But there is no denying that you would also want them to eventually understand how to manage money properly. After all, some day, they will need those skills when you are not around.

If your children regularly run out of money before the month ends, are unable to pay their credit card bills in full during every cycle, frequently find it difficult to service EMIs, etc. then there is something they are doing wrong. And if they take money from you to tackle such problems, their problem gradually becomes yours! And when that happens, remember that you will have lesser money available for your own critical goals and such as savings for retirement and uninsured medical contingencies.

Once in a while, you can pitch in for your children’s needs. But regular occurrences are a red flag. Either their expenses are unnecessarily exceeding their income or they are regularly failing to plan their expenditure properly. Such situations can lead to an unmanageable debt burden and other financial mistakes if not corrected soon.

Talking about money with children

You need to have a one-on-one interaction with your children about this. This discussion wouldn’t be easy, but needs to be done as early as possible. Here are some pointers.

- Are they spending most of what they earn every month? If yes, then do a sort of personal financial audit and dig deep on what they are spending on. This is a delicate issue and needs to be handled with care. On facing resistance, you can say that if they seek your money, it is only fair that they be asked to open their books to you.

- If you see money being spent unnecessarily and which reduces the amount available for actual important expenses, then show them the mirror.

- Tell them that you will help them out (if the need arises) only for the next 1-2 months. After that, they should be on their own even if they default on their repayments. This is a harsh step to take but at times, and in some cases, may be necessary.

- Also make them understand the need for setting aside some money for emergencies and unexpected expenses.

- Tell them that gradually, they should accumulate 3-6 months’ worth of expenses (including EMIs if possible) in their emergency savings. It might sound tough to them. And the fact is that it is not going to be easy for someone unable to manage his/her finances. But it has to be done. Ask them to (if nothing else) keep aside a fixed proportion of their salary for this emergency funding.

These are just a few points to ponder. Dynamics would differ across families and financial circumstances.

But the important point is that even if you as a parent are financially capable of helping them, you should ensure that they don’t build this assumption in their heads. You want your children to become independent and stand on their own feet. You have already done a lot for them by educating them. Isn't it?

As adults they must be capable of earning well and spending wisely. They must be trained not to turn to you for help to support their money misadventures. If it needs you to draw a line and take some harsh steps, then so be it.

(The writer is the founder of StableInvestor.com)

From Discover on Google https://www.moneycontrol.com/news/business/personal-finance/parents-cant-be-perennial-source-of-money-for-adult-children-4628781.html

Share:

Read More