Blog Posts
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SEBI: Proposal on Integrated Disclosures
An aspect of the Indian securities regulations that has always been somewhat puzzling is the stark disparity in the disclosure regimes governing the primary markets and secondary markets. While a strong disclosure regime has been a boon to the primary markets where companies making a public offering are required to issue a prospectus with fairly…
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Lessons from the Turmoil
Today’s Business Standard carries an editorial that deals with possible regulatory responses to financial markets crises, a theme also addressed in a recent post on this blog. Here is an excerpt from the editorial: “The history of financial regulation shows such regulation is rooted in crisis. Significant regulatory change usually takes place in response to…
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Miscellaneous: Stock Exchanges; Online IPO Applications
There are two pieces in the Economic Times today that deal with stock exchange operations and electronic settlement in IPOs. 1. Alternative Trading Systems The first is an op-ed by C K G Nair and M S Sahoo that explains the metamorphosis that the stock exchanges are undergoing. They write: “For the past few years…
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More on the “Decoupling” Theory
The previous two posts (here and here) have argued that the “decoupling” theory, when it comes to emerging markets (like India and China), is a myth. Here is some additional analysis in an article in the Economist: “INVESTORS were until recently big fans of the “decoupling” theory, the notion that Asian economies can shrug off…
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Stock Market Turmoil and the Role of Regulation
This is a cross-post from the Law and Other Things blog, to which also I contribute. Riding the downward tide of the global capital markets, Indian stock prices too tumbled 1,408 points on Monday, January 21, 2008 making investors poorer by $155 billion in a single day. The rout continued on Tuesday as well, before…
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The Asian Stock Market Meltdown
The oft-repeated adage that goes “when America sneezes, the rest of the world catches a cold” was proven to be true once again when stock markets across Asia crashed, some to record levels. The Indian markets were not to be spared—the Sensex tumbled 1,408 points on Monday, and share prices continued to dive today on…
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Competition Commission: Draft Merger Regulations Now Available
An earlier post on this blog noted the concerns of the industry relating to the merger regulations proposed by the Competition Commission and also certain comments made by the acting chairman of the Competition Commission of India to allay any fears of the industry. The proposed draft of the Competition Commission of India (Combination) Regulations,…
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IPOs: Listing Day Price Band
Initial public offerings by companies are beset with the aspect of what is known as ‘underpricing’. This is when companies accessing the capital markets for the first time experience a significant jump in the stock price on the first day of trading. This works to the advantage of investors who have been allocated shares in…
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Competition Commission and Merger Regulation
The Competition Commission is working on the draft of the Competition Commission (Combinations) Regulations, which are expected to be announced shortly. Due to concerns from the industry regarding these regulations operating as a serious hurdle to M&A activity in the country, there are indications that the Competition Commission will introduce provisions in the draft regulations…
