Blog Posts

  • SWFs and Capital Flows

    [Posted by Umakanth Varottil] The Indian Government’s latest position on sovereign wealth funds (SWFs) can be gathered from a recent speech delivered by the Governor of the Reserve Bank of India, Dr. Y.V. Reddy at a session on ‘The Role of Government-owned Investment Vehicles in Global Capital Flows’ in the International Capital Markets and Emerging…

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  • More on the Indian Derivatives Saga

    [Posted by Umakanth Varottil] While the legalities of several derivative transactions entered into between banks and corporates are pending consideration of courts, it appears that these matters have ended up in court in the first place because of unexpected market movements over the last few months which defied all prior indications and past market history.…

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  • Measuring the Success of Capitalism

    [Posted by Umakanth Varottil] Being back on blawgosphere after a brief hiatus, I noticed this interesting column by Arun Maira in today’s Times of India. By way of background, the recent events in the US and UK have cast a serious doubt on the efficacy of capitalism as a viable economic model. It has been…

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  • Amendments to Clause 49

    [Posted by Pramod Rao] SEBI has on April 8, 2008 issued a press release and circular amending certain provisions of Clause 49 relating to corporate governance, and can be viewed here: http://www.sebi.gov.in/Index.jsp?contentDisp=WhatsNewScroll&FilePath=/press/2008/200895.html The composition of board of directors has been required to be as under:(a) where chairman is an executive chairman, atleast half the board…

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  • Draft Report of the High Level Committee on Financial Sector Reforms

    [Posted by Pramod Rao] The Draft CFSR report is up on the Planning Commission website for public view and can be accessed from the following link: http://www.planningcommission.gov.in/reports/genrep/report_fr.htm A commentary which appeared in Business Standard is available at: http://www.business-standard.com/common/news_article.php?autono=319612&leftnm=4&subLeft=0&chkFlg=

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  • More on Social Business

    [Posted by Umakanth Varottil] After I wrote an earlier post on Social Business over a month ago, I came across some interesting examples of efforts being made to integrate companies and society. These are not just voluntary efforts by companies to act in societal interest, but matters of policy pronounced by legislatures to be complied…

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  • Direct Market Access to Institutional Investors

    [Posted by Umakanth Varottil] SEBI yesterday issued a circular to the BSE and NSE with a view to granting direct market access to institutional clients through the brokers’ infrastructure. The rationale for the move is described in the circular as follows: “Direct Market Access (DMA) is a facility which allows brokers to offer clients direct…

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  • Foreign Investment in the Small Scale Sector

    [Posted by Umakanth Varottil] The small scale sector has continued to receive protection from the Government when it comes to foreign investment, despite liberalisation pervading in the economy generally. It is time to alter that position, argues an editorial in today’s Financial Express: “Foreign direct investment (FDI) in small-scale industry (SSI)? It could be just…

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  • Derivatives in Commodities: Some Issues

    [Posted by Umakanth Varottil] This is a cross-post from the Law and Other Things Blog.The issue over commodities exchanges and trading of futures and options in respect commodities has been brought to the fore with the Left parties deciding not to support the Forward Contracts (Regulation) Amendment Bill. By way of background, commodities trading can…

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  • Preposterous policy view from SEBI on QIPs and Public Shareholding

    [Posted by Somasekhar Sundaresan] The Securities and Exchange Board of India has issued an informal guidance relating to the Listing Agreement and the SEBI (Disclosure and Investor Protection) Guidelines (“DIP Guidelines“) that defies all logic and reason. Clause 13.A.1.1(b) of the DIP Guidelines, which governs private placements to qualified institutional buyers, provides that a listed…

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