SEBI
BULLETIN
December 2015 VOL. 13
(LOGO)
NUMBER 12
SECURITIES AND EXCHANGE BOARD OF INDIA
EDITORIAL COMMITTEE
Mr. Ananta Barua
Mr. J. Ranganayakulu
Mr. S. V. Murali Dhar Rao
Dr. Anil Kumar Sharma
The Securities and Exchange Board of India Bulletin is issued by the Department of Economic and Policy
Analysis, Securities and Exchange Board of India under the direction of an Editorial Committee. SEBI is
not responsible for accuracy of data/information/interpretations and opinions expressed in the case of
signed articles/speeches as authors are responsible for their personal views. SEBI has no objection to the
material published herein being reproduced, provided an acknowledgement of the same is made. The soft
copy of SEBI Bulletin is available free of cost to the subscribers/readers, who register at
bulletin@sebi.gov.in along with their complete address. A readable version of SEBI Bulletin is available at
http://www.sebi.gov.in. Any comments and suggestions on any of the features/sections may be sent to
bulletin@sebi.gov.in
1
CONTENTS
CAPITAL MARKET REVIEW
GLOBAL MARKIET REVIEW - DECEMBER 2015
HIGHLIGHTS OF DEVELOPMENTS IN INTERNATIONAL SECURITIES MARKET
PRESS RELEASES
1. SEBI to participate in 35th India International Trade Fair 2015, at New Delhi
2. SEBI signs Memorandum of Understanding on bilateral cooperation with the
Bangladesh Securities and Exchange Commission
3. SEBI Board Meeting
POLICY DEVELOPMENTS
A. Circulars
1. Format for Voting Results
2. Format for quarterly holding pattern, disclosure norms for corporate governance report
and manner for compliance with two-way fungibility of Indian Depository Receipts
(IDRs)
3. Format for Business Responsibility Report (BRR)
4. Streamlining the Process of Public Issue of Equity Shares and Convertibles
5. Annual System Audit, Business Continuity Plan(BCP) and Disaster Recovery (DR)
6. Investor Grievance Redressal System and Arbitration Mechanism
7. Timelines for Compliance with various provisions of Securities Laws by Commodity
Derivatives Exchanges
8. Issue of No Objection Certificate for release of 1% of issue amount
9. Non-compliance with certain provisions of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and Standard Operating Procedure for suspension
and revocation of trading of specified securities
10. Disclosure of holding of specified securities and Holding of specified securities in
dematerialized form
11. Manner of achieving minimum public shareholding
12. Formats for publishing financial results
13. Schemes of Arrangement by Listed Entities and (ii) Relaxation under Sub-rule (7) of
rule 19 of the Securities Contracts (Regulation) Rules, 1957
ORDERS PASSED BY CHAIRMAN/MEMBERS AND ADJUDICATING OFFICERS
ANNEX
PUBLICATIONS
2
CAPITAL MARKET REVIEW
I.
Trends in Primary Market
A. Public and Rights Issues
During November 2015, three companies accessed the primary market and mobilised `311 crore
compared to `7,715 crore mobilised through 10 issues in October 2015, showing a decrease of 96 percent
from the previous month. There were two public issues and one Rights issues during the month. Among
the public issues, IPOs garnered ` one crore.
During 2015-16 so far, 63 companies have accessed the capital market and raised `22,492 crore compared
to `10,784 crore raised through 59 issues during the corresponding period of 2014-15 (Exhibit 1). There
were 54 public issues which raised `13,862 crore and nine rights issues which raised `8,631 crore during
Apr-Nov 2015. Among the public issues, there were 44 IPOs and ten public debt issues.
Exhibit 1: Primary Market Trends (Public & Rights Issues)
Items
1
Nov-15
Amount
No. of
Issues
(` crore)
2
Oct-15
Amount
No. of
Issues
(` crore)
3
4
5
2015-16$
No. of Amount
Issues (` crore)
6
7
2014-15$
Amount
No. of
Issues (` crore)
8
9
a. Public Issues
2
231
8
6,924
54
13,862
48
7,979
(i) Debt
1
230
4
2,200
10
4,232
18
6,912
IPOs
1
1
4
4,724
44
9,629
30
1,067
FPOs
0
0
0
0
0
0
0
0
b. Rights Issues
1
80
2
791
9
8,631
11
2,805
Total Equity Issues a(ii)+b
2
81
6
5,515
53
18,260
41
3,872
Grand Total (a+b)
3
311
10
7,715
63
22,492
59
10,784
(ii) Equity, of which
Notes: 1. IPOs - Initial Public Offers, FPOs - Follow on Public Offers
2. Amount raised through debt issues for the last two months are provisional.
3. $ indicates as on last day of November of the respective year.
Source: SEBI
B. Private Placement
1. QIPs Listed at BSE and NSE
QIP is an alternative mode of resource raising available for listed companies to raise funds from domestic
market. In a QIP, a listed issuer issues equity shares or non-convertible debt instruments along with
warrants and convertible securities other than warrants to Qualified Institutions Buyers only. In
3
November 2015, `409 crore was raised through one QIP issues as compared to nil amount raised in
October 2015. The cumulative amount mobilised through QIP allotments route during 2015-16, so far,
stood at `13,067 crore (Details in Table 10).
2. Preferential Allotments Listed at BSE and NSE
Preferential allotment also serves as an alternative mechanism of resource mobilization wherein a listed
issuer issues shares or convertible securities, to a select group of persons. There were 29 preferential
allotments (`4,903 crore) listed at BSE and NSE during November 2015 as compared to 23 preferential
allotments (`16,382 crore) in October 2015. The cumulative amount mobilised through preferential
allotments route during 2015-16, so far, stood at `42,160 crore through 240 issues (Details in Table 11).
3. Private Placement of Corporate Debt
Private placement mechanism dominates the resource mobilization through corporate bonds. In
November 2015, `24,618 crore was raised through private placement route in the corporate bond market
and no amount was raised through public issue route. The cumulative amount mobilised through private
placement of corporate debt during 2015-16, so far, stood at `3,11,269 crore (Details in Table 12 and
Exhibit 1A).
Further in November 2015, the total amount mobilised through public issue and private placement of
debt and equity combined stood at `30,242 crore as against `68,028 crore in October 2015. In 2015-16
(Apr-Nov), `3,88,988 crore was raised through primary market via public issues and private placement of
debt and equity.
Exhibit 1A: Total Resources Mobilised by Corporate Sector (Amount in `crore)
Equity Issues
Month
1
2014-15
2015-16$
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Public &
Rights
2
9,789
18,260
8,890
493
439
719
1,913
210
5,515
81
Private
Placements
3
57,362
55,228
11,517
6,133
3,013
5,482
2,019
5,369
16,382
5,313
Debt Issues
Total
(2+3)
Public
4
5
67,151
73,488
20,407
6,626
3,452
6,201
3,932
5,579
21,897
5,394
9,413
4,232
710
0
0
164
228
700
2,200
230
4
Private
Placements
6
4,04,136
3,11,268
84,807
20,692
36,125
27,920
46,564
26,612
43,931
24,618
Total
(5+6)
7
4,13,492
3,15,500
85,517
20,692
36,125
28,084
46,792
27,312
46,131
24,848
Total
Resource
Mobilisation
(4+7)
8
4,80,643
3,88,988
1,05,924
27,318
39,577
34,285
50,724
32,891
68,028
30,242
Notes: 1. Private placement of Equity includes, amount raised through preferential allotments, QIP and IPP
mechanism, 2. Public Equity Issues includes IPO, FPO & Rights issues of common equity shares. 3. $ indicates as
on last day of November 2015.
Source: SEBI
II.
Resource Mobilisation by Mutual Funds
In November 2015, there was net outflow from mutual funds amounting to `31,196 crore. While net
outflow from private sector mutual funds was `21,041 crore, that from public sector mutual funds was
`10,155 crore. During April-November 2015, the total amount raised by all mutual funds was `1,84,263
crore, of which, the share of private sector was 75 per cent and public sector mutual funds was 25 percent.
Of the total amount mobilized in 2015-16 so far, debt funds accounted for 55.3 percent, followed
growth/equity funds 36.0 percent and 7.2 percent by balanced schemes. Further, the FoF schemes and
GETFs have registered net outflows during April-November 2015 period. The cumulative net assets
under management by all mutual funds decreased by 2.2 per cent to `12,95,131 crore as on November 30,
2015 from `13,24,165 crore as on October 31, 2015 (Details in Table 64 & 66).
III.
Trends in the Secondary Market
During November 2015, the benchmark indices, S&P BSE Sensex and CNX Nifty fell by 1.9 and 1.6
percent to close at 26,145.7 and 7,935.3 respectively on November 30, 2015 (Figure 1). Sensex and Nifty
touched their respective intraday highs of 26,824.3 and 8336.3 on November 02, 2015 and November 04,
2015 respectively. Sensex touched intraday low of 25,451.4 and Nifty at 7714.2 on November 16, 2015.
Figure 1: Movement of Sensex and Nifty
Reflecting the downtrend in market movements, the market capitalisation of BSE and NSE fell by 0.6
percent and 0.2 percent to ` 98,88,227 crore and `96,75,669 crore, respectively, at the end of November
2015 from `98,33,359 crore and `96,54,114 crore, recorded at the end of October 2015. The P/E ratios of
S&P BSE Sensex and CNX Nifty were 20.6 and 21.5, respectively at the end of November 2015
compared to 21.4 and 22.1 a month ago (Exhibit 2).
5
6
Exhibit 2: The Basic Indicators in Cash Segment
2014-15
1
2
A. Indices
S&P BSE Sensex
27,957
CNX Nifty
8,607
B. Market Capitalisation
BSE
1,01,49,290
NSE
99,30,122
C. Gross Turnover
BSE
8,54,845
NSE
43,29,655
D. P/E Ratio
S&P BSE Sensex
19.5
CNX Nifty
22.7
E. No. of Listed companies
BSE
5624.0
NSE
1733.0
2015-16$
Oct-15
Nov-15
Percentage
change over
previous
month
3
4
5
6
26,146
7,935
26,656.8
8,065.8
26,145.7
7,935.3
-1.9
-1.6
98,88,227
96,75,669
98,33,359
96,54,114
98,88,227
96,75,669
0.6
0.2
4,95,840
28,47,352
58,143
3,33,801
50,799
3,07,150
-12.6
-8.0
20.6
21.5
21.4
22.1
20.6
21.5
-3.8
-2.8
5806.0
1786.0
5788.0
1781.0
5806.0
1786.0
0.3
0.3
$ indicates as on last day of November of the respective year.
Source: BSE, NSE
The monthly turnover of BSE (cash segment) decreased by 12.6 percent to `50,799 crore in November
2015 from `58,143 crore in October 2015. The monthly turnover of NSE (cash segment) decreased by 8.0
percent to `3,07,150 crore in November 2015 from `3,33,801 crore in October 2015. The gross turnover
at the cash market segments at BSE and NSE during April-November 2015 was `4,95,840 crore and
`28,47,352 crore respectively.
7
Figure 2: Trends in Average Daily value of Sensex and BSE Turnover
Figure 3: Trends in Average Daily Values of Nifty and NSE Turnover
There was a widespread loss in majority of sectoral and other indices during November 2015. At the end
of November 2015, of the 15 indices (each at BSE and NSE), 12 recorded negative return at BSE and 10
indices at NSE closed negative. Among BSE indices, BSE Metal index decreased the most by 8.2 percent,
followed by BSE Capital Goods index (6.4 percent) and BSE PSU index (3.2 percent). Among NSE
indices, in November 2015, CNX Infrastructure index decreased the most by 4.3 percent, followed by
CNX PSE Index (3.2 percent) and CNX Nifty Junior index (2.4 percent). During November 2015, the
daily volatility of BSE Metal index was the highest at 2.3 percent, followed by BSE Bankex index (2.0
8
percent) and BSE Capital Goods index, (1.7 percent). At NSE, among all the indices, daily volatility of
CNX Bank Nifty index was the highest at 1.9 percent, followed by CNX Finance (1.8 percent) and CNX
Infrastructure index (1.7 percent) during November 2015 (Exhibit 3).
Exhibit 3: Performance of Indices at BSE and NSE during November 2015 (Percent)
Index
1
BSE Sensex
BSE 100
BSE 200
BSE 500
BSE Small Cap
BSE FMCG
BSE Consumer Durables
BSE Capital Goods
BSE Bankex
BSE Teck
BSE Oil & Gas
BSE Metal
BSE Auto
BSE PSU
BSE Healthcare
Source: BSE and NSE
IV.
BSE
Change over
Previous
month
2
Volatility
Index
3
4
-1.9
-1.4
-1.1
-0.8
2.8
0.8
5.0
-2.4
0.7
-2.8
2.9
-2.6
4.4
1.5
-9.8
0.8
0.7
0.7
0.7
0.8
0.9
0.9
1.0
1.0
1.0
1.2
1.0
0.9
0.8
1.1
CNX Nifty
CNX Nifty Junior
CNX 500
CNX Mid-cap
CNX 100
CNX Defty
CNX IT
Bank Nifty
Nifty Mid-cap 50
CNX Infrastructure
CNX PSE
CNX Finance
CNX Pharma
CNX MNC
CNX Media
NSE
Change over
Previous
month
5
Volatility
6
-1.6
-0.6
-1.0
0.1
-1.5
-4.0
-2.4
0.4
3.0
-2.2
0.5
-1.3
-12.7
-2.0
1.1
Trends in Depository Accounts
The total number of investor accounts was 142.1 lakh at NSDL and 102.9 lakh at CDSL at the end of
November 2015. In November 2015, the number of investor accounts at NSDL and CDSL increased by
0.2 percent and 0.8 percent, respectively, over the previous month. A comparison with November 2014
showed there was an increase in the number of investor accounts to the extent of 4.9 percent at NSDL
and 11.2 percent at CDSL (Details in Table 70).
V.
Trends in Derivatives Segment
A. Equity Derivatives
India is one of the vibrant markets for exchange traded equity derivatives in the world. The trading
volumes in the equity derivative market surpassed that of the cash segment turnover by 12.4 times in
November 2015. The monthly total turnover in equity derivative market at NSE decreased by 1.9 percent
to `43,47,054 crore in November 2015 from `44,29,629 crore in October 2015 (Figure 4). The index
options segment has been the clear leader in the product-wise turnover of the futures and options
segment in the NSE. In November 2015, the turnover in the index options category was 73.6 percent of
the total turnover in the F&O segment of the NSE. During November 2015, index futures, stock futures
and stock options recorded decrease in turnover over the previous month, while index options segment
9
0.8
0.8
0.7
0.8
0.7
0.8
1.0
1.0
1.0
0.8
0.9
0.9
1.2
0.8
1.4
registered increase in turnover as compared to previous month. The open interest in value terms in equity
derivative segment of NSE increased by 3.6 percent to `1,81,087 crore as on November 30, 2015 from
`1,74,768 crore as on October 31, 2015.
Figure 4: Trends of Equity Derivatives Segment at NSE (`crore)
The monthly total turnover in equity derivative segment of BSE decreased by 67.3 percent to `1,05,526
crore in November 2015 from `3,22,277 crore in October 2015. While index options comprised 96.3
percent of BSE’s equity derivative turnover, stock options constituted 3.3 percent. During November
2015, index futures, index options and stock futures recorded decrease in turnover over the previous
month, while stock options segment registered growth in turnover as compared to previous month. The
open interest in value terms in equity derivative segment of BSE increased by 11.5 percent to `272 crore as
on November 30, 2015 from `244 crore as on October 31, 2015.
In November 2015, NSE had 97.6 percent share in total equity derivatives turnover in India while BSE’s
share was 2.4 percent. In terms of open interest (in value terms), NSE had 99.85 percent share while BSE
had 0.15 percent share (Exhibit 4).
10
Exhibit 4: Trends in Equity Derivatives Market
NSE
Particular
1
A. Turnover (` crore)
(i) Index Futures
(ii) Options on Index
Put
Call
(iii) Stock Futures
(iv) Options on Stock
Put
Call
Total
B. No. of Contracts
(i) Index Futures
(ii) Options on Index
Put
Call
(iii) Stock Futures
(iv) Options on Stock
Put
Call
Total
Nov-15
Oct-15
2
3
BSE
Percentage
Change
Over Month
4
Nov-15
Oct-15
5
6
Percentage
Change Over
Month
7
2,89,439
3,35,582
-13.8
405
958
-57.7
14,47,834
17,49,524
5,97,633
15,34,880
16,45,579
6,27,671
-5.7
6.3
-4.8
22,410
79,201
16
2,74,380
44,410
52
-91.8
78.3
-68.7
86,405
1,76,221
43,47,054
96,745
1,89,173
44,29,629
-10.7
-6.8
-1.9
1,650
1,843
1,05,526
1,061
1,416
3,22,277
55.5
30.1
-67.3
51,39,901
1,15,02,566
-55.3
7,790
22,040
-64.7
2,52,28,432
2,92,69,261
1,18,76,912
6,61,38,404
6,71,66,048
2,07,17,819
-61.9
-56.4
-42.7
4,40,825
14,88,080
332
69,46,843
10,51,513
2,638
-93.7
41.5
-87.4
17,40,663
33,15,699
7,65,70,868
35,40,218
64,45,041
17,55,10,096
-50.8
-48.6
-56.4
30,652
37,518
20,05,197
36,781
49,309
81,09,124
-16.7
-23.9
-75.3
-9.4
218
222
-1.8
9.9
1.5
6.5
19
19
2
9
9
2
104.7
107.2
7.1
-0.9
-0.6
3.6
9
4
272
1
0
244
1,271.9
1,234.4
11.5
-8.2
4,171
4,166
0.1
11.9
3.0
6.8
368
364
43
174
170
40
111.5
114.1
7.5
-1.8
-2.7
4.7
204
79
5,229
12
7
4,569
1,600.0
1,028.6
14.4
C. Open Interest in terms of Value ( ` crore)
(i) Index Futures
19,452
21,475
(ii) Options on Index
Put
43,654
39,718
Call
47,431
46,746
(iii) Stock Futures
61,986
58,206
(iv) Options on Stock
Put
3,100
3,129
Call
5,464
5,496
Total
1,81,087
1,74,768
D. Open Interest in terms of No of Contracts
(i) Index Futures
3,35,105
3,65,066
(ii) Options on Index
Put
7,41,448
6,62,522
Call
8,03,973
7,80,520
(iii) Stock Futures
12,30,246
11,51,650
(iv) Options on Stock
Put
61,430
62,544
Call
1,07,460
1,10,489
Total
32,79,662
31,32,791
B. VIX Futures at NSE
11
NSE introduced futures contracts on India VIX in Futures & Options segment of NSE w.e.f. February
26, 2014. India VIX is India’s first volatility Index which is a key measure of market expectations of nearterm. The contract symbol is INDIAVIX and 3 weekly futures contract were made available for trading.
The contracts shall expire on every Tuesday. The tick size is 0.25 and lot size is 550. During November
2015, eleven VIX futures contracts with total value of `0.9 crore were traded at F&O segment of NSE
(Figure 5). The open interest in INDIAVIX contracts was zero at the end of November 2015.
Figure 5: Trends in VIX futures at NSE
C. Currency Derivatives at NSE, MSEI and BSE
During November 2015, the monthly turnover of currency derivatives at NSE decreased by 6.2 percent to
`3,35,711 crore from `3,57,978 crore in October 2015. The turnover of currency derivatives at BSE
decreased by 3.5 percent to `1,80,138 crore in November 2015 from `1,86,708 crore in October 2015. At
MSEI, the monthly turnover of currency derivatives decreased by 13.8 percent to `19,275 crore in
November 2015 from `22,351 crore in October 2015 (Figure 6) (Details in Table 42, 43 and 44).
Figure 6: Trends of Currency Derivatives at NSE, MSEI and BSE (`crore)
12
D. Interest Rate Derivatives at NSE, BSE and MSEI
During November 2015, the monthly turnover of currency derivatives at NSE decreased by 6.2 percent to
`3,35,711 crore from `3,57,978 crore in October 2015. The turnover of currency derivatives at BSE
decreased by 3.5 percent to `1,80,138 crore in November 2015 from `1,86,708 crore in October 2015. At
MSEI, the monthly turnover of currency derivatives decreased by 13.8 percent to `19,275 crore in
November 2015 from `22,351 crore in October 2015 (Figure 6) (Details in Table 42, 43 and 44)
Figure 7: Trends of Interest Rate Derivatives at NSE, BSE and MSEI (` crore)
VI.
Commodities Futures Markets
13
During November 2015, the benchmark index MCXCOMDEX and NCDEX Dhaanya decreased
by 5.6 percent and 1.3 percent respectively to close at 2651.4 and 2869.3 respectively on
November 30, 2015 (Figure 8). MCXCOMDEX touched an intraday high of 2821.5 on
November 4, 2015 while touching an in intraday low of 2570.5 on November 23, 2015. NCDEX
Dhaanya touched an intraday high of 2958.9 on November 6, 2015 and an intraday low of 2826.5
on November 24, 2015. (Details in Table 74 & 75)
14
Figure 8: Movement of Commodity Futures Market Indices
MCXCOMDEX recorded a volatility of 0.8 percent during November 2015 while NCDEX
Dhaanya recorded a volatility of 1.0 percent. The volatility and return of commodity futures
market indices is shown in the Exhibit 5 below:
Exhibit 5: Performance of Indices at MCX and NCDEX during November 2015 (Percent)
MCX
NCDEX
Index
Change
over
Previous
month
Volatility
1
2
3
Index
Change
over
Previous
month
Volatility
4
5
6
MCXCOMDEX
-5.6
0.8 Dhaanya
MCX Metal
-5.9
0.8
MCX Energy
-7.3
1.8
MCX Agri
-0.5
0.6
-1.3
1.0
The total turnover in the commodities segment at MCX was `4,01,674 crore in November 2015
registering a decline of 14.3 percent from `4,68,663 crore registered in October 2015. The
turnover of Bullion stood at 34.0 percent of the total turnover while that of the Energy segment
was at 35.1 percent. Agricultural commodities had a share of 1.7 percent in the total turnover at
MCX while the contribution of metals was 29.2 percent.
The total turnover at NCDEX decreased from `1,08,477 crore in October 2015 to `75,562 crore in
November 2015 indicating a decrease of 30.3 percent. The contribution of agricultural
15
commodities in the total turnover stood at 96.9 percent while that of the Bullion segment stood at
3.1 percent.
The total turnover at NMCE declined from `1,817 crore in October 2015 to `1,605 crore in
November 2015 indicating a 11.7 percent decrease. The entire turnover at the exchange is
contributed by the agricultural commodities.
The total turnover in agricultural commodities at all the three exchanges stood at `81,643 crore
while that of the non - agricultural commodities stood at `3,97,199 crore. The total turnover of
agricultural commodities was the highest at NCDEX (`73,238 crore) followed by MCX (`6,800
crore) and NMCE (`1,605 crore). The total turnover of non- agricultural commodities was the
highest at MCX (`3,94,874 crore) followed by NCDEX (`2,325 crore).
(Details in Table 78, 79 & 80)
Figure 9: Turnover of Agricultural Commodities Futures at Exchanges (`crore)
Figure 10: Turnover of Non- Agricultural Commodities Futures at Exchanges (`crore)
16
Rajkot Commodity Exchange Ltd. recorded a turnover of `158 crore in November 2015 as against
`219 crore in October 2015, with only castor seed contracts being traded at the exchange. At
Chamber of Commerce, Hapur the monthly turnover was recorded at `899 crore in November
2015 against `1,319 crore in October 2015, with only the contracts on mustard seed being
currently being traded at the exchange.
VII.
Trading in Corporate Debt Market
During November 2015, 1,132 trades with a traded value of `14,672 crore was reported on BSE
compared to 1,784 trades with a traded value of `22,528 crore reported in October 2015.At NSE,
3,263 trades were reported in November 2015 with a traded value of `56,900 crore compared to
4,637 trades with value of `79,015 crore in October 2015 (Figure 11) (Details in Table 13).
Figure 11: Trends in Reported Turnover of Corporate Bonds (` crore)
17
VIII.
Trends in Institutional Investment
The institutional investment was positive in Indian markets in November 2015.
A. Trends in Investment by Mutual Funds
The total net investment in the secondary market by mutual funds was `37,387 crore in November 2015
compared to `27,947 crore in October 2015. They invested `6,548 crore in equity in November 2015
compared to `2,935 crore in October 2015. In the debt segment, mutual funds invested `30,839 crore in
November 2015 as against `25,011 crore in October 2015 (Figure 12). During 2015-16 (April-November),
the total net investment by mutual funds was `2,79,458 crore of which `2,20,933 crore was in debt and
`58,525 crore in equity.
As on November 30, 2015 there were a total of 2,191 mutual fund schemes of which income/debt
oriented schemes were 1,618 (73.8 percent), growth/equity oriented schemes were 463 (21.1 percent),
exchange traded funds were 53 schemes (2.4 percent), balanced schemes were 26 (1.2 percent) and fund
of funds investing overseas schemes were 31 (1.4 percent). (Details in Table 67 & 68)
Figure 12: Trends in Mutual Funds Investment (`crore)
18
B. Trends in Investment by Foreign Portfolio Investors (FPIs)
In November 2015, FPIs recorded net outflows amounting to `10,826 crore. There was a net outflow
in equity segment of `7,074 crore while debt segment witnessed a net outflow of `3,752 crore (Figure
13). During 2015-16 (April-November 2015), the total net outflows by FPIs in the Indian stock
market was `7,009 crore, comprising of a net outflow of `15,849 crore in the equity segment and
inflow of `8,842 crore from the debt segment.
The assets under custody of FPIs at the end of November 2015 stands at `23,08,769 crore, out of
which the value of offshore derivative instruments including ODIs on derivatives is `2,54,600 crore,
constituting 11.0 percent of the total asset under custody of FPIs. (Details in Table 60, 61 & 62)
19
Figure 13: Trends in FPIs Investment (`crore)
IX.
Trends in Portfolio Management Services
Total assets under management (AUM) of portfolio management services (PMS) industry has increased by
1.6 percent to `9,94,588 crore in November 2015 from `9,94,588 crore in October 2015. As on November
30, 2015, AUM of discretionary PMS constitute 76.1 percent of the total AUM of PMS followed by
advisory PMS (18.4 percent) and non-discretionary PMS (5.5 percent).
In terms of number of clients, discretionary services category leads with total of 50,890 clients, out of
56,739 clients in PMS industry, followed by non-discretionary category with 3,570 clients and advisory
category with 2,279 clients. (Details in Table 69)
X.
Trends in Substantial Acquisition of Shares and Takeovers
In November 2015, seven open offers with offer value of `157 crore were made to the shareholders as
against five open offers with offer value of `1,677 crore in October 2015. (Details in Table 4)
20
GLOBAL MARKET REVIEW - DECEMBER
2015
Snapshots
United States:
 The US economy expanded by 2.1per cent (Q-o-Q) (in
annualised terms) in Q3 2015 compared to a growth
rate of 3.9per cent in Q2 2015. Consumer prices in the
US increased 0.5per cent (Y-o-Y) in November 2015
compared to 0.2per cent in October 2015. The
unemployment rate fell to 4.8per cent in November
2015.
United Kingdom
 The UK economy advanced 2.3per cent (Y-o-Y) in Q3
2015, slowing from a 2.4per cent expansion in Q2 2015.
CPI inflation remained increased marginally to 0.1per
cent (Y-o-Y) from -0.1 per cent in previous month. The
unemployment rate decreased to 5.2per cent in three
months to October 2015.
Japan:
 The Japan economy expanded 1per cent (Y-o-Y) in Q3
2015, same as in Q2 2015. Consumer prices in the Japan
were flat (Y-o-Y) in September 2015, slowing down
from 0.2per cent in August 2015. Unemployment rate
in Japan was 3.4per cent in September 2015, the same as
in previous month.
Euro Zone:
 The Eurozone economy expanded 1.6per cent (Y-o-Y)
in Q3 2015, slightly higher than 1.5per cent in Q2 of
2015. During October 2015, annual inflation in Euro
Area increased to 0.2per cent (Y-o-Y) compared to
0.1per cent in previous month. Unemployment rate in
the EA19 decreased slightly to 10.7per cent in October
2015 from 10.8 per cent in previous month.

 BRIC Nations:
 Real GDP of Brazil contracted further by 4.5per cent
(Y-o-Y) in Q3 2015, compared to -2.6 per cent in Q2
2015. Annual CPI inflation grew to 10.5per cent in
November 2015. Unemployment increased marginally
to 7.9per cent in October 2015.
 Real GDP of Russia contracted by 4.1per cent (Y-oY) in Q3 of 2015. Annual CPI inflation decreased
marginally to 15per cent in November 2015.
Unemployment rate in Russia increased to 5.5per cent
in October 2015 from 5.2per cent in previous month.
 India’s real GDP grew by 7.4per cent (Y-o-Y) in Q3
of 2015(new series). IIP grew by 9.8per cent (Y-o-Y)
in October 2015, strongest since 2011. Consumer
prices grew by 5.4per cent (Y-o-Y) in November of
2015, compared to 5per cent in October 2015.
 During Q3 2015, real GDP of China grew by 6.9per
cent (Y-o-Y), slightly down from 7per cent in Q2
2015. In October 2015, the annual CPI inflation
increased to 1.5per cent from 1.3per cent in previous
month.
Introduction:
1.1. Global equity markets remained lacklustre
in November 2015 with MSCI World Index
returning -0.7 per cent returns. Focus remained on
the prospect of a US rate rise as US dollar
strengthened further against all the major
currencies ahead of FOMC meeting on December
16, 2015. Eurozone equities outperformed other
regions, supported by expectations that the
European Central Bank would announce further
monetary policy easing in December. Emerging
markets lagged their developed counterparts as the
stronger US dollar weighed on emerging market
currencies. Renewed commodity price weakness
had a negative impact on several markets. In fixed
income markets, the diverging outlook for
monetary policy saw US sovereign yields rise while
those in the eurozone declined.
1.2. The US economy expanded by 2.1 per cent
(Q-o-Q) (in annualised terms) in Q3 2015
compared to a growth rate of 3.9 per cent in Q2 on
account of downturn in private inventory
investment. The British economy advanced 2.3 per
cent year-on-year (Y-o-Y) in the third quarter of
2015, slowing down marginally from a 2.4 per cent
expansion in the second quarter of 2015. Revised
data confirmed that the Japan avoided a recession
in Q3 as investment was stronger than previously
reported. Japan's real GDP grew by 1.0per cent (Qo-Q) (in annualised terms) in Q3 as compared to
0.8per cent contraction estimated in the first
estimate. Euro area real GDP increased by 1.6 per
cent (Y-o-Y) in the third quarter of 2015, following
a rise of 1.5 per cent in the previous quarter.
1.3. Relative to last year, growth in advanced
economies is expected to pick up slightly, while it is
projected to decline in emerging market and
developing economies. With declining commodity
prices, depreciating emerging market currencies,
and increasing financial market volatility, downside
21
risks to the outlook have risen, particularly for emerging market and developing economies. Global
activity is projected to gather some pace in 2016.
2. Major Recent Developments Across the Globe:
2.1.
Us Federal Reserve hikes interest rate first time since 2006:
2.1.1 US Federal Open Market Committee (FOMC), in its meeting on December 16, 2015, raised the
range of its benchmark interest rate (Federal Fund Rate) by a 25 bps to between 0.25 per cent and 0.50
per cent from present 0 per cent to 0.25 per cent range, the first increase since June 29, 2006. Equity
markets in the U.S. and Asia rallied strongly as committee signalled the gradual increases in the federal
funds rate. The Dow Jones industrial average gained 1.3 per cent on December 16, 2015 while the bond
yield on the 10-year Treasury note rose slightly to 2.29 per cent.
2.1.2 The committee in its statement said that the US economic activity has been expanding at a
moderate pace. Household spending and business fixed investment have been increasing at solid rates in
recent months, and the housing sector has improved further. Federal reserve expect GDP growth of 2.1
per cent this year, unchanged from their September estimate. Growth in 2016 is expected to be 2.4 per
cent , slightly higher than the previous forecast of 2.3 per cent .The unemployment rate is expected to
remain at its current level of 5 per cent this year, and fall to 4.7 per cent in 2016. Inflation has continued
to run below the Committee's 2 per cent longer-run objective. Inflation is expected to rise to 2 per cent
over the medium term as the transitory effects of declines in energy and import prices dissipate and the
labor market strengthens further.
Chart 1A: US Benchmark Interest Rate (lower bound) history
Source: Bloomberg
2.2. ECB extends Quantitative Easing, cuts deposit rates: - European Central Bank (ECB), on
December 3 2015, extended the Quantitative Easing program for another six months, till March 2017,
rather than originally announced plans of ending QE in September 2016 in order to provide more
22
stimulus to European Economy. Earlier on January 22, 2015 ECB had announced expanded asset
purchase programme' of buying euro-area bonds from central governments, agencies and European
institutions worth €60 billion per month for 18 months beginning March 2015.It further cut the bank
deposit rate to -0.3 per cent from -0.2 per cent. The market however reacted negatively as investors
expected further expansion of QE in terms of amount of bonds bought per month. Major European
markets like Germany, France, Italy fell in the range of 2-4 per cent intraday.
2.3.
China's Yuan enters reserve currency basket:
2.3.1 The International Monetary Fund (IMF) on November 30, 2015 announced its decision to add
the Chinese Yuan to its reserve currency basket, known as Special Drawing Rights (SDR). In a statement,
IMF Managing Director Christine Lagarde noted the Yuan's inclusion is a clear representation of the
reforms taking place in China. The continuation and deepening of these efforts will bring about a more
robust international monetary and financial system, which in turn will support the growth and stability of
China and the global economy. The addition of the Yuan, or Renminbi, will take effect in October
2016. It will join the Euro, Yen, Pound and Dollar in the reserves basket. The Yuan will have about an
11 per cent weightage in the SDR.
2.4
China's Yuan falls to 4 and 1/2 years Low
2.4.1 On December 17, 2015, the Chinese currency Renminbi, or the Yuan, weakened further by 0.16
per cent to 6.4837 against the U.S. dollar, for the 10 the consecutive day since December 4, 2015. While
recent data show the Chinese economy is stabilizing, trade is still a reason for concern after exports fell
for a fifth month in November amid tepid global demand. Afters IMFs decision of inclusion of CNY in
reserve currency basket on November 30, 2015, the Chinese Yuan has depreciated by more than 1.3per
cent against USD.
Chart 1B: Chinese Yuan at 4-1/2 years Low
23
Source: Bloomberg
2.5
Oil Falls To 7 Years Low as Supply of Crude Swells:-
2.5.1 Oil prices extended their freefall on December 11, 2015, flirting with 11-year lows, after the
International Energy Agency (IEA) warned that global oversupply of crude could worsen next year. Data
from the U.S. Energy Information Administration showed crude inventories has increased to 4.8 million
barrels. With production around the world remaining at or near record highs and new supplies looming
from Iran and the United States, the Oil is expected to remain under pressure for quite some time.
2.5.2 On December 4, 2015, the Organization of Petroleum Exporting Countries (OPEC) in its
meeting in Vienna had decided to leave production level unchanged at current actual level (around 31.7
million barrels per day), higher than the official target of 30 million barrels per day. Guided by its biggest
producer Saudi Arabia, OPEC has increased output in an oversupplied market in a bid to force highercost producers to scale back their operations. Meanwhile majority of OPEC members had requested
Saudi Arabia to cut back the OPEC's output target level below 30 million barrels per day (mb/d).
Venezuela had proposed for a 5 per cent cut in the group’s production, which was rejected as Iran joined
the ranks of members refusing to accept any curbs.
2.5.3 On December 14, 2015, Brent Oil Futures fell to $36.33 intraday, 13 cents above the $36.20 low set
in December 2008. Below that level, it would be at its lowest since July 2004, when oil was rebounding
from single-digits lows hit during the 1998 financial crisis. Similarly, Crude Oil also traded at 7 year low
when near month crude oil futures traded at NYMEX fell to $34.53 on December 14, 2015. The history
of Crude Oil – WTI and Crude Oil – Brent is given below in the chart.
Chart 1C: Crude Oil & Brent Oil at 7 years low
24
Source: Bloomberg
3. The World Economy:
3.1. IMF, in its October 2015 World Economic Outlook (WEO) update, has reduced the global
growth projections by 0.2 percentage points for both 2015 and 2016 to 3.1 per cent and 3.6 per cent
respectively. IMF has revised (upwards) its growth projections for United States by 0.1 percentage points
to 2.6 per cent in 2015, while reduced the U.S. growth forecast by 0.2 percentage points to 2.8 per cent in
2016. Among other major advance economies, IMF has projected the growth in United Kingdom at 2.5
per cent, Germany at 1.5 per cent, France at 1.2 per cent, Canada at 1.0 per cent and in Japan at 0.6 per
cent, during the year 2015. In major emerging economies, during 2015, the GDP growth in India is
projected at 7.3 per cent, China at 6.8 per cent, Mexico at 2.3 per cent, South Africa at 1.4 per cent, Brazil
at -3.0 per cent and Russia at -3.8 per cent (Exhibit 1).
Exhibit 1: Overview of the World Economic Outlook Projections: October 2015
Year over Year
Q4 over Q4
Difference from
July 2015 WEO
Update1
2
World Output
Advanced
Economies
United States
Euro Area
Germany
France
Italy
Spain
Japan
United Kingdom
Canada
Other Advanced
Economies 2
Emerging Market
and Developing
Economies
Emerging and
Developing Asia
ASEAN-5 4
Emerging and
Developing Europe
Projections
2015
2016
3.1
3.6
Projections
2015 2016
3.0
3.6
2013
3.4
2014
3.4
1.4
2.2
-0.4
0.2
0.7
–1.7
–1.2
1.6
1.7
2.0
1.8
2.4
0.8
1.6
0.2
–0.4
1.4
-0.1
2.9
2.4
2.0
2.6
1.5
1.5
1.2
0.8
3.1
0.6
2.5
1.0
2.2
2.8
1.6
1.6
1.5
1.3
2.5
1.0
2.2
1.7
-0.1
0.1
0.0
-0.1
0.0
0.1
0.0
-0.2
0.1
-0.5
-0.2
-0.2
-0.1
-0.1
0.0
0.1
0.0
-0.2
0.0
-0.4
1.8
2.5
0.9
1.5
0.1
-0.4
2.0
-0.8
3.4
2.5
2.0
2.5
1.5
1.6
1.5
1.2
3.2
1.3
2.2
0.5
2.3
2.8
1.7
1.6
1.5
1.5
2.2
1.3
2.2
2.0
2.2
2.8
2.3
2.7
-0.4
-0.4
2.6
2.5
2.6
5.0
4.6
4.0
4.5
-0.2
-0.2
4.7
4.0
4.8
7.0
5.1
6.8
4.6
6.5
4.6
6.4
4.9
-0.1
-0.1
0.0
-0.2
6.8
4.8
6.4
4.4
6.4
5.2
2.9
2.8
3.0
3.0
0.1
0.1
2.6
3.2
4.2
25
2015
-0.2
Estimates
2016
2014
-0.2
3.3
BRICS Nations
Brazil
Russia
India 3
China
South Africa
2.7
1.3
6.9
7.7
2.2
0.1
0.6
7.3
7.4
1.5
-3.0
-3.8
7.3
6.8
1.4
-1.0
-0.6
7.5
6.3
1.3
-1.5
-0.4
-0.2
0.0
-0.6
-1.7
-0.8
0.0
0.0
-0.8
–0.2
0.3
7.6
7.1
1.3
-4.4
-4.6
7.3
6.7
0.7
1.3
0.0
7.5
6.3
1.7
Note: Real effective exchange rates are assumed to remain constant at the levels prevailing during July 27–August 24, 2015.
Economies are listed on the basis of economic size. The aggregated quarterly data are seasonally adjusted. Data for Lithuania
are included in the euro area aggregates but were excluded in the April 2015 World Economic Outlook (WEO).
1. Difference based on rounded figures for both the current, July 2015 WEO Update, and April 2015 World Economic
Outlook forecasts.
2. Excludes the G7 (Canada, France, Germany, Italy, Japan, United Kingdom, United States) and euro area countries.
3. For India, data and forecasts are presented on a fiscal year basis and GDP from 2011 onward is based on GDP at market
prices with FY2011/12 as a base year.
4. Indonesia, Malaysia, Philippines, Thailand, Vietnam
Source: IMF
Exhibit 2: Major Macroeconomic Indicators
Other
Ems
BRIC
Developed Countries
Country /
Region
United States
United
Kingdom
Germany
France
Eurozone
Japan
Hong Kong
Brazil
Russia
India
China
South Korea
Indonesia
Turkey
Quarterly Growth Real
GDP
YOY
QOQ
2.2 Q3 2.1* Q3
Annual CPI
Inflation
Unemploymen
t Rate
0.5
Nov-15
4.8
Nov-15
Benchmar
k Interest
Rate
0.25
2.3
Q3
0.5
Q3
0.1
Nov-15
5.4
Sep-15
0.50
1.7
1.2
1.6
1.6
2.3
-4.5
-4.1
7.4
6.9
2.7
4.7
4.0
Q3
Q3
Q3
Q3
Q3
Q3
Q3
Q3
Q3
Q3
Q3
Q2
0.3
0.3
0.3
0.3
0.9
-1.7
-0.6
NA
NA
1.3
3.2
1.3
Q3 0.4 Nov-15
Q3 0.0 Nov-15
Q3 0.2 Nov-15
Q3 0.3 Oct-15
Q3 2.4 Oct-15
Q3 10.5 Nov-15
Q3 15.0 Nov-15
NA 6.3 Oct-15
NA 1.5 Nov-15
Q3 1.0 Nov-15
Q3 4.9 Nov-15
Q2 8.1 Nov-15
4.5
10.5
10.7
3.1
3.3
7.9
5.5
NA
4.1
3.1
6.2
10.3
Oct-15
Oct-15
Oct-15
Oct-15
Sep-15
Oct-15
Oct-15
NA
Sep-15
Nov-15
Aug-15
Sep-15
0.05
0.05
0.05
0.08
0.50
14.25
11.00
6.75
4.35
1.50
7.50
7.50
Note: (Q3) represents third quarter of 2015. (*) represents figure in annualised terms.
Source: Bloomberg
26
Chart 1: Year-on-Year real GDP growth rates of major countries/ region (per cent)
Source: Bloomberg
Chart 2: Year-on-Year Consumer Price Inflation (per cent)
Source: Bloomberg
27
United States:
3.2. The Real gross domestic product (GDP) of USA increased at an annual rate of 2.1 per cent (Q-oQ) (in annualise terms) in the third quarter of 2015, after increasing 3.9 per cent in the second quarter of
2015. In the advance estimate, the increase in real GDP was 1.5 per cent (Q-o-Q) (in annualise terms).
The deceleration in real GDP in the third quarter primarily reflected a downturn in private inventory
investment and decelerations in exports, in personal consumption expenditures (PCE), in non-residential
fixed investment, in state and local government spending, and in residential fixed investment. Businesses
accumulated only $56.8 billion worth of inventory, the smallest since the first quarter of 2014 and sharply
lower from $113.5 billion in Q2 2015. Consumer spending, which accounts for more than two-thirds of
U.S. economic activity, grew at a 3.0 per cent rate, down from the 3.2 per cent rate estimated last month.
2.7 During November 2015, the final seasonally adjusted Markit U.S. Manufacturing Purchasing
Managers’ Index (PMI) fell to 25 months low as output, new orders and employment all expanded at
slower rates while average cost burdens decreased for the third month. The Markit US manufacturing
PMI fell to 52.8 in November 2015, lower than 54.1 in October 2015 (PMI above 50 mark indicates an
expansion in business activity). However, Markit U.S. Services PMI improved to 56.5 in October 2015
from 54.8 in October 2015.
3.3. As per data released by the Bureau of Labor Statistics, the annual consumer price inflation rose to
0.2 per cent (Y-o-Y) in October 2015 as compared to 0 per cent in previous month. On a monthly basis,
consumer prices also rose 0.2 per cent, the biggest gain in four months as cost of most goods and services
including gasoline increased. Unemployment rate in the US was recorded at 5 per cent in November 2015,
the same as in the previous month and the lowest in more than seven years.
3.4. Observations: The U.S. economy grew at a healthier pace in the third quarter than initially thought, suggesting
resilience that could help give the Federal Reserve confidence to raise interest rates in December 2015. The US real GDP has
increased at an annual rate of 2.1 per cent (revised estimate, earlier estimate was 1.5 per cent) in the third quarter of 2015,
after increasing 3.9 per cent in the second quarter of 2015. The consumer prices increased by 0.2 per cent (Y-o-Y) in October
2015 after remaining flat in September 2015. Manufacturing sector PMI declined while Service Sector PMI increased
during November 2015.
United Kingdom:
3.5. As per the "preliminary" estimate of real GDP, released by the Office for National Statistics, U.K.,
the British economy advanced 2.3 per cent (Y-o-Y) in the third quarter of 2015, slowing down marginally
from a 2.4 per cent expansion in the second quarter of 2015, albeit, lowest since the fourth quarter of
2013. During the same period in last year (Q3 2014), economy grew by 3.0 per cent. On a quarter-onquarter basis, the economy expanded 0.5 per cent, below market expectations of a 0.6 per cent increase.
3.6. The Markit UK manufacturing PMI in November 2015 fell to 52.7 from 55.2 in previous month..
On the other hand, the Markit UK services PMI in November 2015 rose to 55.9 from 54.9 in October
2015. It is the highest figure in four months due to a strength in new business while employment slowed,
backlogs rose marginally and price pressures remained weak.
28
3.7. As regards the price situation, The UK's inflation rate as measured by the Consumer Prices Index
went up 0.1 per cent (Y-o-Y) in November 2015, due to falling fuel, food and drink prices.
3.8. Bank of England’s Monetary Policy Committee at its meeting on December 12, 2015, maintained
the official Bank Rate paid on commercial bank reserves unchanged at 0.5 per cent and decided to
continue the stock of asset purchases, financed by the issuance of central bank reserves at £375 billion.
The unemployment rate of the economically active population in UK declined to 5.2 per cent in AugustOctober 2015 period, lowest since January 2006, compared to 5.3 per cent in previous period.
3.9. Observations: UK showed moderate economic growth during the third quarter of 2015. The preliminary
estimate of real GDP grew by 2.3 per cent, lowest since Q4 2013. Price pressures remained on the downside during October,
as highlighted by a further decrease in average input costs and an associated reduction in factory gate selling prices, Annual
CPI inflation remained in negative territory by 0.1 per cent, on account of ongoing reductions in global commodity prices. The
unemployment rate reaches 7 years low of 5.3 per cent in September 2015.
Japan:
3.10. Real GDP of Japan was revised upwards to a positive growth rate, which allowed Japan’s economy
to avoid what was believed to be a technical recession as of the first preliminary estimate. Japan’s real
GDP grew at an annualized rate of 1.0per cent (Q-o-Q) in Q3 2015, revised upward from 0.8 per cent
contraction as per first estimate for Q3 of 2015, compared to contraction of 0.5per cent in Q2 2015. The
bright spot was the upward revision to private capital investment, which was originally reported to have
declined 5per cent but grew 2.3per cent as of the second preliminary estimate. GDP of world third largest
economy rose by 1.6per cent (Y-o-Y) during Q3 of 2015 compared to 1per cent (Y-o-Y) during Q2 of
2015 .
3.11. During November 2015, growth in manufacturing sector hit one-year high on account of increase
in employment and buying activity. Seasonally adjusted Markit Japan Manufacturing PMI grew to 52.6 in
November 2015 from 52.4 in previous month, indicating improvement in manufacturing sector business
activity (PMI above 50 mark indicates an expansion in business activity). New export orders also picked
up to the fastest since June 2015, supported by strong international demand. Both buying activity and
employment showed a solid growth. Inflationary pressures strengthened in November as reports of higher
raw material costs stemming from the falling yen/dollar rate continued to drive up cost burdens.
However, service sector business activity slowed down during November 2015. Markit Japanese Services
PMI fell to 51.6 in November 2015 from 52.2 in previous month.
3.12. According to the estimates by Statistics Bureau and the Director-General for Policy Planning of
Japan, Consumer prices in Japan rose by 0.3 per cent (Y-o-Y) in October of 2015, after showing no
growth in the previous month. It was the highest figure in four months, as food cost rose further while
prices of fuel dropped at a slower pace.
3.13. In its Monetary Policy meeting held on October 30, 2015, Bank of Japan kept its pledge to
conduct money market operations so that the monetary base will increase at an annual pace of around 80
trillion yen. Policymakers also decided to purchase exchange-traded funds (ETFs) and Japan real estate
investment trusts (J-REITs) so that their amounts outstanding will increase at an annual paces of about 3
29
trillion yen and about 90 billion yen respectively. As for Commercial Paper and corporate bonds, the Bank
will maintain their amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen respectively.
The unemployment rate in Japan remained fell to 3.1 per cent in November 2015 compared to previous
month.
3.14. Observations: The GDP in Japan advanced 0.3 per cent on quarter in the three months to September of 2015,
compared to an initial estimate of a 0.2 per cent contraction. Capital expenditure increased while inventories shrank less than
expected, final figures showed. On an annualized basis, the economy advanced 1 per cent, compared to an initial 0.8 per cent
contraction and well above market expectations of a 0.1 per cent increase. CPI inflation and Interest rate were 0 per cent
while unemployment rate remained stable at 3.1 per cent during November 2015.
Euro Area (EA19):
3.15. The Eurozone or the Euro area is a monetary union of 19 of the 28 European Union (EU)
member states which have adopted the euro as their common currency. The Eurozone consists
of Austria, Belgium, Cyprus,Estonia, Finland, France, Germany, Greece, Ireland,
Italy, Latvia,
Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain.
3.16. The Gross Domestic Product (GDP) in the Euro Area expanded 1.60 per cent (Y-o-Y) in the
third quarter of 2015 over the same quarter of the previous year, slightly higher than 1.5 per cent in the
previous period but below market forecasts. The real GDP of Germany and France grew by 1.7 per cent
and 1.2 per cent (Y-o-Y) respectively during Q3 of 2015.
3.17. Euro Area manufacturing and services sector continued to expand further during November 2015.
Markit Euro Area Manufacturing PMI increased to 52.8, strongest in 19 months, in November 2015,
compared to 52.3 in previous month. Further, Markit Euro Area Services PMI increased to 54.2 in
November 2015 from 54.1 in October 2015.
3.18. As per the estimate released by Eurostat, annual inflation in Euro Area remained unchanged at
0.1 per cent in November 2015. The inflation rate has been below the ECB’s 2 per cent target since
January of 2013. The highest annual rates were recorded in Belgium (+1.4 per cent), Malta (+1.3 per cent)
and Sweden (+0.8 per cent). By contrast, the lowest annual rates were registered in Cyprus (-1.5 per cent),
Bulgaria, Romania and Slovenia (all -0.9 per cent). Compared with October 2015, annual inflation rose in
fifteen Member States, remained stable in two and fell in ten.
3.19. The seasonally-adjusted unemployment rate in the Eurozone decreased slightly to 10.7 per cent in
October 2015 compared with 10.8 per cent in previous month and from 11.5 per cent reported in
November of 2014. Among Member States, the lowest unemployment rates in October were recorded in
Germany (4.5 per cent), the Czech Republic (4.7 per cent)) and Malta (5.1 per cent), and the highest in
Greece (24.6 per cent in August 2015) and Spain (21.6 per cent).
3.20. Observations: Euro Area economy continues to grow at a moderate pace as economy stabilises after strong
recovery since Q4 of 2013. In its latest policy meeting, ECB's President Mario Draghi in their efforts to provide more
monetary stimulus extended its €60bn asset purchase program further by six more month. The flat inflation rate , however,
30
remains the concerns for the policy makers. The unemployment rate is decreasing consistently over past 12 months while both
manufacturing and services PMI shows stable growth outlook.
Brazil:
3.21. The Brazilian economy shrank 4.5 per cent (Y-o-Y) in Q3 of 2015, sixth consecutive contraction
and the worst since 1996 as compared to contraction of 3 per cent (Y-o-Y) in Q2 of 2015. During Q3 of
2015, The GDP of Brazil contracted by 1.7 per cent (Q-o-Q) in the third quarter of 2015 as compared to
2.1 per cent (Q-o-Q) contraction in Q2 of 2015. Agriculture sector contracted by 2 per cent while
services sector output fell by 2.9 per cent during Q3 of 2015 (Y-o-Y). Further, industrial sector and
manufacturing sector contracted by 6.7 per cent and 11.3 per cent respectively during Q3 of 2015 (Y-o-Y).
3.22. Brazil’s annual inflation rate (IPCA) increased from 9.93 per cent in October 2015 to 10.48 per
cent in November 2015, the biggest rise since November of 2003 when the inflation hit 11.02 per cent.
The country is struggling with high inflation since mid-2014 after the government imposed several tax
increases aiming at balancing overall budget while its currency Brazilian Real fell around 46 per cent
against the USD in the first 11 months of the year. Brazil's inflation is way above the official target of 4.5
per cent. Evaluating the macroeconomic outlook and perspectives for inflation, Brazil's Central Bank, in
its November 2015 meeting, has kept the benchmark Selic rate unchanged at 14.25 per cent, the highest in
nine years, as policymakers struggle to curb rising inflation amid economic contraction. Brazil's
unemployment rate increased to 7.9 per cent in October 2015 from 7.6 per cent in September 2015.
China:
3.23. The world's second largest economy expanded by 6.9 per cent (Y-o-Y) in the July-September
quarter, slowing from a 7 per cent increase in the previous quarter, according to China's National Bureau
of Statistics. As per World Bank estimates, the growth in China is expected to increase to 7.1 per cent in
2016 and to 6.9 per cent by 2017. The International Monetary Fund (IMF) has revised growth forecast for
China to 6.8 per cent in 2015 and 6.3 per cent in 2016. The Caixin China General manufacturing
Purchasing Manager Index (PMI) increased to 48.6 in November 2015 after reaching 48 months low of 47
in September 2015. While the reading was the highest since April, it remained below 50 for the ninth
straight month. The Caixin Purchasing Managers Index for services dropped to 51.2 in November 2015
from 52 in October 2015.
3.24. China's activity data was stronger than expected in November 2015, with factory output growth
picking up to a five-month high, signalling the steady growth in the Chinese Economy. The Factory
output grew an annual 6.2 per cent in November, compared to 5.6 per cent in October 2015 while retail
sales grew at 11.2 per cent compared to 11 per cent in October 2015. Fixed assets investment , one of the
key driver of economic growth, grew at 10.2 per cent in the first 11 month of 2015.
3.25. As regards price situation, the annual Consumer Price Inflation in China marginally decreased to
1.5 per cent in November 2015 from 1.6 per cent in October 2015.The food prices went up by 2.3 per
cent, while the non-food prices increased 1.1 per cent. On a monthly basis, consumer prices remained
unchanged, following a 0.3 per cent drop in October 2015.
31
Russia:
3.26. Quarterly real GDP of Russia contracted by 4.1 per cent (Y-o-Y) during third quarter of 2015
following 4.6 per cent drop in previous period. In 2014, the Russian economy grew at 0.6 per cent.
According to World Bank estimates, Russian GDP will fall to 2.7 per cent in 2015, before reaching 0.7 per
cent in 2016, and 2.5 per cent in 2017.
3.27. The Central Bank of Russia said in its Guidelines for the Single State Monetary Policy for 20162018 that if oil prices continue to stay below $40 per barrel, the GDP could fall by 5 per cent or more in
2016 while inflation would stay within 7 to 9 per cent.
3.28. As regards price situation, the annual CPI inflation rate decreased from 15.6 per cent in October
2015 to 15 per cent in November 2015. On a monthly basis, inflation went up to 0.8 per cent, from 0.7
per cent in the previous month. The Bank of Russia has set a target of reducing the inflation to 4 per cent
in 2017. The Central Bank of Russia has kept its key one-week repo rate on hold at 11 per cent in
December 2015, recognizing growing inflation risks while the risks of economic cooling remained.
However, policymakers signalled rate cuts in the next meetings, if inflation slows down in line with
forecasts and on condition inflation risks recede. In December 2014, the Russian central bank had
increased the interest rate to record 17 per cent to stem the falling currency. The unemployment rate in
Russia unexpectedly increased to 5.5 per cent in October 2015 from 5.2 per cent in September 2015.
4. Review of Global Financial Markets:
4.1. During November 2015, Global equities showed mixed returns as the focus remained on the
prospect of a US rate rise. Emerging markets lagged their developed counterparts as the stronger US
dollar weighed on emerging market currencies. Eurozone equities outperformed other regions because of
the expectations that the European Central Bank would announce further monetary policy easing in
coming months.
Stock Market:
4.2. US stocks recorded modest gains during November 2015. Stocks of Germany posted gains as the
unemployment figures fell to its lowest level. Japanese stocks advanced as the two important indicators
industrial output and retail sales grew in the month of November. Russian stocks rallied as oil prices
stabilized and the economy showed signs of recovery. Indian stocks shed during the concerned period.
Mexican stocks also declined slightly. Brazilian and Mexican stocks fell for the period under review.
4.3. MSCI World Index, which is a leading indicator for tracking the overall performance of stock
markets in developed markets witnessed a decrease of -0.67 per cent. Further, the MSCI Emerging
Market Index also registered a fall of -3.96 per cent during November 2015. (Chart 3).
32
Chart 3: Movement in MSCI World and Emerging Market Index
Source: Bloomberg
Bond Market:
4.4. The Merrill Lynch Eurozone Government bond index >5 years posted a gain of 0.53 per cent in
November 2015, bringing the return for the year to date to +3.65 per cent. Bond markets rallied through
the month as market expectations grew about further monetary easing by the ECB. 10 year government
bond yield of Germany, Spain and UK declined by 8.5 per cent, 9 per cent and 5 per cent respectively in
November 2015.
4.5. 10 year government bond yields of US rose by 3 per cent to 2.2 per cent at the end of November
2015.
4.6. Among emerging market economies, bond yield of 10 year government bond of Brazil, Russia,
China and India fell modest by 2 per cent, 1.1 per cent, 1.9 per cent and 1.4 per cent, respectively to close
at 16.1 per cent, 10.3 per cent, 7.8 per cent and 3.1 per cent, respectively.
33
Chart 4: Movement in 10 year bond yield of major countries
Source: Bloomberg
Currency Market:
4.7. In November 2015, US Dollar strengthened further against the major currencies as the U.S.
economy showed signs of sustaining recovery and partly also because of expectation of impending interest
rate hike by US federal reserve.
4.8. Major emerging markets and developed markets currency depreciated during November 2015.
Russian Ruble, Brazilian Real, Chinese Yuan and Indian Rupee depreciated by 3.9 per cent, 0.3 per cent,
1.3 per cent and 2.1 per cent, respectively against USD. GBP, Euro and Yen depreciated by 2.5 per cent,
4.2 per cent and 2.1 per cent, respectively against USD in November 2015 as compared to the previous
month.
4.9. Since the beginning of January 2013 till November 2015, Brazilian Real and Russian Ruble have
depreciated significantly by 89 per cent and 117 per cent, respectively against USD. During the same
period, Indian Rupees & Japanese Yen depreciated by 22 per cent and 42 per cent, respectively against
USD. Euro depreciated by 25 per cent against USD while British Pound depreciated marginally by 7 per
cent against USD. In spite of recent devaluation, Chinese Yuan depreciated just by 2.5 per cent against
USD compared to beginning of the January 2013. (Exchange rate represents the closing price of the
interbank foreign currency trade).
34
Chart 5: Movement of major currencies against US Dollar ($)
Source: Bloomberg
Trend in Market Indices:
4.10. Major stock indices all over the world exhibited mixed trends during November 2015. Amongst
the developed markets Dax of Germany, Nikkei 225 of Japan and CAC 40 of France continued to grow
for the second consecutive month by (4.90 per cent), (3.48 per cent) and (1.22 per cent) respectively. On
the contrary, a fall was registered by Straits Times of Singapore (-4.75 per cent)followed by Hang Seng of
Hong Kong (-2.84 per cent) and All Ordinaries of Australia (-1.33 per cent) during the period under
review.
4.11. As regards the emerging market indices, Budapest Stock Exchange of Hungary witnessed an
increase of 10.26 per cent followed by Shanghai SE Composite IX of China (1.86 per cent ) and Russian
Traded of Russia (0.55 per cent ) during the period under consideration. On the contrary, the fall in
indices was witnessed by Hermes of Egypt by -17.89 per cent followed by IGBC General of Colombia (8.19 per cent) and Karachi 30 of Pakistan (-7.15 per cent) during November 2015.
35
Chart 6: Trend in Major Developed Market Indices
Source: Bloomberg
Chart 7: Trend in Market Indices of BRIC Nations
36
Source: Bloomberg
Market Capitalisation:
4.12. Market capitalisation of major countries in the world, at the end of November 2015, is given in
table A6 and is illustrated in Chart 8. There was a mix trend in market capitalisation of the developed and
developing markets. Market capitalisation of Japan, USA, Germany and China amongst others recovered
smartly to register a gain after registering the fall in the initial couple of weeks.
4.13. Among major developed markets, the market capitalisation of Japan rose highest by 2.7 per cent,
followed by Germany (0.4 per cent) and USA (0.1 per cent) during November 2015. On the contrary, the
market capitalisation of Singapore, UK, France and Hong Kong declined by 5.3 per cent, 2.9 per cent, 2.4
per cent and 2.3 per cent respectively. NYSE Euronext (US) and London Stock Exchange (UK) market
cap stood at USD 24.06 Trillion & USD 3.48 Trillion respectively at the end of November 2015.
4.14. As regards the major emerging markets, market capitalisation of China rose highest by 8.6 per cent
followed by Argentina (6 per cent), Hungary (4.6 per cent) and Malaysia (1.6 per cent) respectively while
that of Colombia, South Africa, Egypt and Chile declined by 13 per cent, 11.8 per cent, 6.5 per cent and
6.3 per cent respectively. Market Capitalisation of China's Shanghai Stock Exchange increased by 8.6 per
cent to USD 6.6 Trillion, while that of India's NSE declined by 1.2 per cent to USD 1.49 Trillion, at the
end of November 2015.
Chart 8: Trend in Market Capitalisation of Major Exchanges (US$ Trillion)
Source: Bloomberg
37
Derivative Market:
4.15. Among the major stock exchanges covered in the review (Table A4 & A5), during November
2015, the monthly notional turnover of index futures in CME Group was at USD 3,757 billion followed
by EUREX (USD 1,483 billion) and Osaka Stock Exchange (USD 671 billion). Korea Exchange of South
Korea recorded the monthly turnover of USD 3,206 billion in stock futures followed by CME Group
(USD 1,386 billion) and Eurex (USD 1,040 billion).
4.16. In the case of Stock Index Options, Korea Exchange of South Korea recorded highest volume (30
billion contracts) in terms of monthly contracts traded on the major world exchanges followed by
Chicago Board Options Exchange (CBOE) (29 billion contracts), Eurex ( 24.9 billion contracts) and
TAIFEX (18.9 billion contracts) in November 2015. In case of Stock Options, NYSE Liffe (US)
witnessed the highest volume of 41.7 billion contracts traded followed by BM&FBOVESPA (40.7 billion
contracts), Chicago Board Options Exchange (31 billion contracts) and International Securities Exchange
(25.4 billion contracts) in November 2015.
5. Review of Indian Economy
4.17. The Ministry of Statistics and Programme Implementation released quarterly estimates of GDP
for Q2 of 2015-16. As per the estimates, growth in GDP at constant prices (2011-12) during Q2 of 201516 increased to 7.4 per cent as compared to 7.0 per cent in Q1 of 2015-16, owing to strong growth in
manufacturing, trade, hotels, transport and communication services. Agriculture sector's growth has been
estimated at 2.2 per cent in Q2 of 2015-16 as against 1.9 per cent in Q1 of 2015-16. Manufacturing and
Services sector are estimated to grow at 9.3 per cent and 10.6 per cent, respectively during Q2 of 2015-16.
4.18. GVA (Gross Value Added) growth was registered at 7.4 per cent as compared to 7.1 per cent in
the previous quarter. IMF, in its World Economic Outlook, has estimated India’s GDP growth to be 7.3
per cent and 7.5 per cent in the years 2015 and 2016, respectively.
Exhibit 3: Quarterly Estimates of GVA (Y-o-Y) (at 2011-12 prices)
Items
2013-14
(NS)
201415
2014-15
2015-16
Q1
Q2
Q3
Q4
Q1
Q2
2.6
2.1
-1.1
-1.4
1.9
2.2
(PE)
1. Agriculture & allied
activities
3.7
0.2
Mining & Quarrying
5.4
2.4
4.3
1.4
1.5
2.3
4.0
3.2
Manufacturing
5.3
7.1
8.4
7.9
3.6
8.4
7.2
9.3
Electricity, Gas, Water
4.8
7.9
10.1
8.7
8.7
4.2
3.2
6.7
2. Industry
38
Supply& Other Utility Services
3. Services
Construction
2.5
4.8
6.5
8.7
3.1
1.4
6.9
2.6
Trade, Hotel, Transport,
Communication and services
related to broadcasting
11.1
10.7
12.1
8.9
7.4
14.1
12.8
10.6
Financial, Real Estate &
Professional Services
7.9
11.5
9.3
13.5
13.3
10.2
8.9
9.7
Public Administration, Defence
and Other services
7.9
7.2
2.8
7.1
19.7
0.1
2.7
4.7
Gross Value Added at Basic
Price
6.6
7.2
7.4
8.4
6.8
6.1
7.1
7.4
GDP
6.9
7.3
6.7
8.4
6.6
7.5
7.0
7.4
Source: CSO
NS- New Series Estimates; PE- Provisional Estimates
4.19. The Nikkei Purchasing Managers’ Index (PMI) decreased to a twenty five month low of 50.4 in
November 2015 from 50.7 in October 2015. It pointed towards continued, although weaker, marginal
improvement in the health of manufacturing sector during the month. Similarly, Nikkei India Composite
Output Index decreased from 52.6 in October 2015 to 50.2 in November 2015, highlighting little-change
in the level of private sector activity in India.
4.20. India's fiscal deficit during April-October 2015 reached Rs. 4.11 trillion (USD 61.67 billion) during
April-October or 74 per cent of the full-year budget target. The deficit was 89.6 per cent of the full-year
target during the same period a year ago.In the Union Budget 2014-15, the government kept a fiscal deficit
target of 4.1 per cent of GDP. The Union budget 2015-16 has set India's fiscal deficit target for the 201516 at 3.9 per cent of GDP (Rs. 5,55,649 lakh crore)which would gradually come down to 3 per cent by
2017-18, one year later than previously expected.
Index of Industrial Production
4.21. India’s General Index of Industrial Production (IIP) growth rocketed to a five year high of9.8 per
cent in October 2015 compared with 3.8 per cent in September 2015. The jump has been attributed to
robust growth in consumer products and capital goods during the festive season. The manufacturing
sector, a key indicator of economic activity, grew 10.6 per cent year-on-year in October.The growth in the
consumer durables segment was a whopping 42.2 per cent in October over the same month last year.
While, the consumer goods category saw a growth of 18.4 per cent and consumer non-durables rose by
4.7 per cent.The cumulative growth for the period April-October2015 is recorded at 4.8 per cent.
Inflation
39
4.22. India's Consumer Price Index (CPI) Inflation increased to a fourteen month high of 5.41 per cent
in the month of November 2015 from 5.0 per cent in the month of October 2015. The food inflation rose
to 6.07 per cent from 5.25 per cent.Inflation measured by the wholesale price index fell 1.9 per cent in
November compared to a decline of 3.8 per cent in October. Food inflation rose 5.2 per cent in
November, picking up from 2.4 per cent increase in October.Of this, prices of pulses, onions and
vegetables showed the biggest spike with pulse prices shooting up by 58.17 per cent in November on year,
while onion prices rose by 53 per cent and that of vegetables 14 per cent. Reserve Bank of India did not
alter the Repo rate in its Monetary Policy statement announced on December 1, 2015.
Chart 9: Inflation as measured by WPI and CPI
(in per cent)
Source: CSO, RBI, Office of Economic Advisor
Trade – Exports and Imports
4.23. India’s exports remained in the negative territory and contracted for the twelfth consecutive
month in November 2015 and dipped by around 24.43 per cent to USD 20.01 billion. Imports declined
30.26 per cent to USD 29.79 billion, yielding a trade deficit of USD 9.78 billion marginally up from USD
9.76 billion in the previous month. Oil imports during November stood at USD 6.44 billion, down 45 per
cent from USD 11.70 billion in the corresponding period last year. Non-oil imports declined 25 per cent
to USD 23.3 billion. The overall trade deficit has narrowed to USD 87.54 billion, cumulatively for months
leading upto November in the current financial year. The corresponding figure for the previous year was
USD 102 billion.
Foreign Exchange Reserves
4.24. Since April 2015, Forex reserves have increased considerably by about USD 10 billion. The
reserves were recorded at USD 351.6 billion as on November 27, 2015. (Exhibit 4)
Exhibit 4: Foreign Exchange Reserves
(USD billion)
40
Oct
30,
2015
353.6
Oct
2,
2015
350.8
Aug
28,
2015
351.9
July
31,
2015
353.5
June
26,
2015
355.2
May
29,
2015
352.4
May
1,
2015
351.9
April
3,
2015
343.1
Feb
27,
2015
338.1
Jan
30,
2015
327.9
Foreign
Currency
Assets
327.7 330.1
327.3
328.3
329.8
330.5
327.8
327.2
318.6
312.2
303.3
Gold
18.7
18.2
18.2
18.3
18.3
19.3
19.3
19.3
19.0
20.2
19.4
SDRs
3.9
4.0
4.0
4.1
4.0
4.1
4.0
4.1
4.0
4.1
4.1
Reserve
Position
in the
IMF
1.3
1.3
1.3
1.3
1.3
1.3
1.3
1.3
1.3
1.6
1.1
Total
Reserves
Nov
27,
2015
351.6
Source: RBI
41
5.
Annex Tables:
Table A1: Trend in major International Indices
Country
1
Australia
France
Germany
Hong Kong
HSI
Japan NIKKEI
Singapore STI
UK
USA DOW
JONES
USA NASDAQ
Composite
India (BSE)
India (NSE)
Brazil
Chile
China
Colombia
Egypt
Hungary
Indonesia
Malaysia
Mexico
Pakistan
Russia
South Africa
Taiwan
Thailand
Turkey
Index
2
All Ordinaries
CAC 40
Dax
Hang Seng
As on
March*,
2014
3
5402.99
4391.50
9555.91
22151.06
As on
As on
As on
March *, October*, November*,
2015
2015
2015
4
5861.92
5288.56
5218.19
5033.64
4897.66
4957.60
11966.17
10850.14
11382.23
24900.89
22640.04
21996.42
Nikkei 225
Straits Times
FTSE 100
Dow Jones Industrial
Average
Nasdaq Composite
14827.83
3188.62
6598.37
16457.66
19206.99
3447.01
6773.04
17776.12
19083.10
2998.35
6361.09
17663.54
19747.47
2855.94
6356.09
17719.92
4198.99
4900.89
5053.75
5108.67
S&P BSE Sensex
CNX Nifty
Bovespa
Stock Market Select
Shanghai SE Composite
IX
IGBC General
Hermes
Budapest Stock Exchange
Jakatra Composite
FTSE Bursa Malaysia
KLCI
Bolsa
Karachi 30
Russian Traded
FTSE/JSE Africa All
Share
Taiwan Taiex
Stock Exchange of Thai
ISE National 100
22386.27
6704.20
50414.92
3772.76
2033.31
27957.49
8491.00
51150.16
3916.92
3747.90
26656.83
8065.80
45868.82
3827.99
3382.56
26145.67
7935.25
45120.36
3655.30
3445.41
13827.01
785.68
17529.99
4768.28
1849.21
9998.85
828.83
19689.16
5518.68
1830.78
9154.37
673.70
21557.44
4455.18
1665.71
8404.57
553.19
23768.60
4446.46
1672.16
40461.60
19170.92
1723.97
47770.92
43724.78
19232.27
1222.80
52181.95
44542.76
20417.39
1152.84
53793.74
43418.55
18957.19
1159.23
51607.83
8849.28
1376.26
69736.34
9586.44
1505.94
80846.03
8554.31
1394.94
79409.00
8320.61
1359.70
75232.79
*Indices are as on last trading day of the month
Source: Bloomberg
42
Table A2: Volatility and P/E Ratio of Major International Indices
Country
1
Developed Markets
Australia
France
Germany
Hong Kong HSI
Japan NIKKEI
Singapore STI
UK
USA DOW JONES
USA NASDAQ
Composite
Emerging Markets
India (BSE)
India (NSE)
Argentina
Brazil
Chile
China
Colombia
Egypt
Hungary
Indonesia
Malaysia
Mexico
Pakistan
Russia
South Korea
South Africa
Taiwan
Thailand
Turkey
Volatility (per cent)
Oct-15
Nov-15
3
4
Index
2
P/E Ratio
Oct-15
Nov-15
5
6
All Ordinaries
CAC 40
Dax
Hang Seng
Nikkei 225
Straits Times
FTSE 100
Dow Jones Industrial
Average
0.86
1.17
1.19
1.27
1.15
1.03
0.88
1.03
1.06
1.07
1.26
0.94
0.73
0.83
24.76
22.53
23.34
9.95
19.77
13.89
28.99
25.27
22.34
24.35
9.67
20.58
13.23
28.91
0.76
0.73
15.79
15.83
Nasdaq Composite
0.94
0.81
29.71
31.22
S&P Sensex
CNX Nifty
Indice Bolsa General
Bovespa
Stock Market Select
Shanghai SE Composite IX
IGBC General
Hermes
Budapest Stock Exchange
Jakatra Composite
FTSE Bursa Malaysia
KLCI
Bolsa
Karachi 30
Russian Traded
Kospi Index
FTSE/JSE Africa All Share
Taiwan Taiex
Stock Exchange of Thai
ISE National 100
0.75
0.71
2.41
1.61
0.6
1.61
0.86
0.96
0.9
1.56
0.75
0.76
2.02
1.80
0.71
1.84
1.23
1.68
0.85
1.02
21.37
22.06
21.93
26.07
16.15
17.7
NA
16.67
17.48
24.72
20.76
20.81
23.27
26.94
15.90
18.07
NA
11.95
22.10
26.01
0.67
0.57
0.75
2.19
0.55
0.8
0.71
0.78
1.12
0.45
0.93
0.76
2.14
0.87
0.92
1.07
0.62
1.78
17.25
31.35
9.71
8.96
17.39
27.89
13.35
16.44
11.83
17.71
30.55
9.13
10.55
13.39
42.67
13.26
17.69
11.44
Note: PE ratio for S&P BSE Sensex and CNX Nifty have been obtained from BSE, NSE respectively
NA.: Not Available
Source: Bloomberg, BSE, NSE
43
Table A3: Investment Flows- New Capital raised by Shares and Bonds in the Major Exchanges
(US$ million)
Stock Exchange
1
Amman Stock Exchange
Australian Securities Exchange
BM&FBOVESPA
BME Spanish Exchanges
Bolsa de Comercio de Buenos Aires
Borsa Istanbul
Bursa Malaysia
Euronext
Hochiminh Stock Exchange
Hong Kong Exchanges and
Clearing
Indonesia Stock Exchange
Japan Exchange Group
Johannesburg Stock Exchange
Kazakhstan Stock Exchange
Korea Exchange
Luxembourg Stock Exchange
Moscow Exchange
Nasdaq - US
NASDAQ OMX Nordic Exchange
NYSE
NZX Limited
Oslo Bors
Philippine Stock Exchange
Shanghai Stock Exchange
Shenzhen Stock Exchange
Singapore Exchange
SIX Swiss Exchange
Stock Exchange of Thailand
Taipei Exchange
Taiwan Stock Exchange Corp.
Tel-Aviv Stock Exchange
TMX Group
Wiener Borse
NA: Not Available
Source: World Federation of Exchanges
0
5,334
0
477
6
0
153
5,362
371
Oct-15
Bonds
3
13
5,089
360
3,256
0
142
1,669
6,988
493
Total
4
389
NA
0
NA
4,169
4,865
NA
NA
NA
9,291
5,817
252
208
2,217
NA
542
0
0
761
0
9,971
302
41
363
2,215
3,796
29
477
314
120
79
17
1,730
80
2,069
0
489
NA
782
0
0
1,007
0
6,404
3,089
160
301
9,286
11,496
156
0
148
144
30
52
2,941
54
Equities
2
44
Equities
5
1,347
NA
0
NA
7,042
4
NA
NA
NA
Nov-15
Bonds
6
389
5,334
0
477
4,174
4,865
153
5,362
371
Total
7
1,360
5,089
360
3,256
7,042
147
1,669
6,988
493
554
6,337
9,845
12,154
NA
3,106
3,616
691
36,028
85,124
5,872
NA
0
NA
0
4,547
NA
NA
1,245
9,460
4,978
0
5,106
1,997
2,159
76
2,874
NA
0
3,200
489
41,976
70,279
3,024
NA
5,015
NA
80
2,605
NA
NA
3,671
9,880
3,487
704
1,697
0
1,404
0
3,039
252
3,313
5,833
691
36,570
85,124
5,872
761
0
9,971
302
4,588
363
2,215
5,041
9,489
5,455
314
5,226
2,075
2,175
1,806
2,954
2,069
0
3,690
489
42,758
70,279
3,024
1,007
5,015
6,404
3,169
2,765
301
9,286
15,167
10,036
3,487
852
1,840
30
1,456
2,941
3,093
Table A4: Monthly Turnover in Derivatives (Stock options and Stock futures) in major Stock
Exchanges
Nov-15
Stock options
Exchange
Stock futures
Notional
Number of
turnover
contracts
(USD
traded
Million)
Number of
contracts traded
Notional
turnover
(USD Million)
40,693,888
3,665,154
31,049,016
NA
25,377,163
36,141
41,714,989
13,462
NA
NA
NA
NA
6
11,189
0
0
NA
24,081
NA
500
NA
0
0
NA
21
NA
0
NA
6 006 059
54 091
4 873 518
198 339
13 740
NA
10 690.8
NA
10 935.9
NA
27.4
NA
57 938
NA
24 521
12 461 569
864 164
1 061 086
64.6
NA
70.7
6 951.4
4 661.4
NA
1,512
1,193,645
0
13,637,845
4,522,028
425,759
1,102,780
2,203,450
376,437
72,926
1
1,262
0
65,167
12,533
14
191
3,332
217
287
92,149
179,175
15,784
4,076,302
214
799,783
28,240,078
453,171
101,891
NA
53
136
59
21,637
3
658
4,893
429
59
NA
Americas
BM&FBOVESPA
Buenos Aires SE
Chicago Board Options Exchange
Colombia SE
International Securities Exchange
MexDer
NYSE Liffe (US)
Asia - Pacific
ASX Derivatives Trading
Osaka Stock Exchange
Hong Kong Exchanges
Korea Exchange
TAIFEX
Thailand Futures Exchange
Europe - Africa - Middle East
Athens Derivatives Exchange
BME Spanish Exchanges
Budapest SE
EUREX
Euronext
Johannesburg SE
Moscow Exchange
OMX Nordic Exchange
Oslo Børs
Tel Aviv SE
NA: Not Available
Source: World Federation of Exchanges
45
Table A5: Monthly Turnover in Derivatives (Index options and Index futures) in major Stock
Exchanges
Nov-15
Stock index options
Exchange
Number of
contracts
traded
Notional
turnover
(USD Million)
Stock index futures
Notional
Number of
turnover
contracts traded
(USD
Million)
Americas
BM&FBOVESPA
CBOE Future Exchange
Chicago Board Options Exchange
CME Group
International Securities Exchange
MexDer
118,642
NA
29,000,970
10,022,875
293,100
3,879
22,979
NA
NA
1,386,040
NA
101
8,158,998
3,481,215
NA
37,269,939
NA
87,299
33,747
NA
NA
3,757,520
NA
1,622
Asia - Pacific
ASX Derivatives Trading
ASX SFE Derivatives Trading
Bursa Malaysia Derivatives
China Financial Futures Exchange
Osaka Stock Exchange
Hong Kong Exchanges
Korea Exchange
Singapore Exchange
TAIFEX
Thailand Futures Exchange
1 001 980
40 454
332
NA
2 630 662
1 920 429
30 020 158
428 871
18 952 824
22 923
36 522.1
3 750.8
NA
NA
NA
162 205.0
3 206 220.0
NA
247 796.0
NA
765
691 792
222 351
777 742
19 723 897
6 647 733
2 502 992
11 680 839
5 550 420
1 913 598
28.3
63 486.6
4 265.3
136 452.0
671 327.0
573 914.0
267 700.0
NA
201 551.0
NA
5 869
271 327
2 055
0
24 905 700
892 955
257 396
2 191 758
822 390
41 109
3 459 268
6.3
2 942.7
73.2
0.0
1 040 480.0
44 422.0
154.7
3 106.6
13 995.4
23.7
NA
74 494
781 181
604 453
19 188
27 669 263
3 323 389
906 704
19 704 038
2 992 933
222 634
1 141
79.0
63 299.8
12 602.6
14.8
1 483 430.0
210 446.0
22 481.1
31 154.4
51 580.9
128.4
NA
Europe - Africa - Middle East
Athens Derivatives Exchange
BME Spanish Exchanges
Borsa Istanbul
Budapest SE
EUREX
Euronext
Johannesburg SE
Moscow Exchange
OMX Nordic Exchange
Oslo Børs
Tel Aviv SE
NA: Not Available
Source: World Federation of Exchanges
46
Table A6: Market Capitalisation of major Stock Exchanges
Stock Exchange
1
Developed Market
Australia
France
Germany
Hong Kong
Japan
Singapore
UK
USA
Emerging Markets
India
Argentina
Brazil
Chile
China
Colombia
Egypt
Hungary
Indonesia
Malaysia
Mexico
Pakistan
Russia
South Korea
South Africa
Taiwan
Thailand
Turkey
(US$ Million)
Mar-15
Oct-15
Nov-15
2
3
4
M-o-M
change(per
cent)
5
1,231,172
2,014,318
1,964,510
4,526,483
4,852,326
566,432
3,626,328
24,614,866
1,053,583
2,015,277
1,839,925
4,147,715
4,884,613
486,662
3,593,715
24,027,524
1,044,705
1,966,497
1,852,147
4,053,957
5,015,777
460,955
3,488,202
24,061,765
(0.8)
(2.4)
0.7
(2.3)
2.7
(5.3)
(2.9)
0.1
1,628,771
70,546
670,273
232,904
6,486,554
122,976
71,709
15,458
425,078
450,790
438,251
68,009
432,731
1,267,330
514,851
1,011,646
428,678
221,896
1,508,520
71,288
503,921
201,518
6,133,775
98,549
59,695
16,270
342,258
368,606
389,708
70,621
457,670
1,254,052
445,973
877,829
363,761
195,136
1,490,395
75,556
494,383
188,871
6,661,877
85,712
55,792
17,022
339,275
375,213
379,182
66,758
455,302
1,220,035
393,517
856,771
352,399
189,055
(1.2)
6.0
(1.9)
(6.3)
8.6
(13.0)
(6.5)
4.6
(0.9)
1.8
(2.7)
(5.5)
(0.5)
(2.7)
(11.8)
(2.4)
(3.1)
(3.1)
M-o-M: Month on Month.
Source: Bloomberg
47
Sources:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
OECD database
Bureau of Economic Analysis (US)
Bureau of Labor Statistics (US)
The Conference Board (US)
The Federal Reserve System (US)
Institute for Supply Management (US)
Office for National Statistics (UK)
Bank of England (UK)
The Cabinet Office (Japan)
Statistics Bureau, Director-General for Policy Planning (Statistical Standards) (Japan)
Bank of Japan
Eurostat (EA18 and EU27)
European Central Bank (EA18)
Instituto Brasileiro de Geografia e Estatística (Brazilian Institute of Geography and Statistics)
Banco Central do Brasil (Central Bank of Brazil)
Federal State Statistics Service (Russian Federation)
The Central Bank of the Russian Federation
The Central Statistical Office (India)
Office of the Economic Adviser to the Government of India
The Reserve Bank of India
National Bureau of Statistics of China
Peoples Bank of China
Markit Financial Information Services
World Federation of Exchanges
Bloomberg
The Bombay Stock Exchange
The National Stock Exchange
The Bank of Korea
Bank Indonesia
Central Bank of The Republic of Turkey
IMF
48
HIGHLIGHTS OF DEVELOPMENTS IN INTERNATIONAL SECURITIES MARKET
1. ESAs consult on PRIIPs key information for EU retail investors
The Joint Committee of the European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA –
launched its Joint Consultation Paper on PRIIPs Key Information Documents to gather stakeholder
views on proposed rules on the content and presentation of the Key Information Documents (KID).
The KID, once finalised and implemented, aims to provide EU retail investors with consumer friendly
information to enable retail investors to understand and compare packaged retail and insurance-based
investment products (PRIIPs) across the EU, whether offered by banking, insurance or securities
firms.
Source: https://www.esma.europa.eu/sites/default/files/library/2015/11/jc-2015078_20151109_esas_consult_on_priips_key_information_for_retail_investors.pdf
2. SEC Proposes Rules to Enhance Transparency and Oversight of Alternative Trading
Systems
The Securities and Exchange Commission has announced that it has voted to propose rules to
enhance operational transparency and regulatory oversight of alternative trading systems (ATSs) that
trade stocks listed on a national securities exchange (NMS stocks), including “dark pools.” According
to SEC, "Investors and other market participants need more and better information about how
alternative trading systems work,”. “The proposed changes would represent a critical step forward in
delivering greater transparency to investors and enhancing equity market structure.”
The proposal would require an NMS stock ATS to file detailed disclosures on newly proposed Form
ATS-N about its operations and the activities of its broker-dealer operator and its affiliates. These
disclosures would include information regarding trading by the broker-dealer operator and its affiliates
on the ATS, the types of orders and market data used on the ATS, and the ATS’ execution and
priority procedures.
Source: http://www.sec.gov/news/pressrelease/2015-261.html
3. CPMI-IOSCO consultative paper Guidance on cyber resilience for financial market
infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the Board of the International
Organization of Securities Commissions (IOSCO) released the consultative paper Guidance on cyber
resilience for financial market infrastructures (“the Cyber Guidance”).
Financial market infrastructures (FMIs) play a critical role in promoting the stability of the financial
system. Thus, the cyber risks faced by FMIs and their level of readiness to effectively deal with worst
case scenarios have been considered top priorities by industry leaders and authorities alike. The Cyber
Guidance aims to add momentum to and instil international consistency in the industry’s ongoing
efforts to enhance FMIs’ ability to pre-empt cyber attacks, respond rapidly and effectively to them,
and achieve faster and safer target recovery objectives if they succeed.
Source: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD513.pdf
49
4. IOSCO Publishes final report on Standards for the Custody of CIS Assets
The Board of the International Organization of Securities Commissions (IOSCO) published its final
report on Standards for the Custody of Collective Investment Schemes’ Assets (CIS Assets). The
report seeks to clarify, modernize and further develop international guidance for the custody of CIS
assets consistent with IOSCO’s core Objectives and Principles of Securities Regulation, June 2010
(IOSCO Principles).
It sets out eight standards divided into two sections aimed at identifying the core issues that should be
kept under review by the regulatory framework to ensure investors’ assets are effectively protected.
Source: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD512.pdf
5. IOSCO reports on Transparency of Firms that Audit Public Companies
The Board of the International Organization of Securities Commissions (IOSCO) published the final
report Transparency of Firms that Audit Public Companies. The report addresses “audit firm
transparency reporting”, which considers the practices employed by audit firms to be transparent in
their own reporting to investors and other stakeholders about the firm itself, notably, with respect to
firm governance and elements of their system of quality control for their financial statement audits.
Transparency reporting can foster internal introspection and discipline within audit firms and may
encourage audit firms to sharpen their focus on audit quality, which would be of benefit to investors
and other stakeholders. In comparing audit firms competing for an audit engagement, audit firm
transparency reporting can aid those responsible for selecting a public company’s auditor in their
decision making process by providing information on a firm’s audit quality.
Source: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD511.pdf
50
PRESS RELEASES
I.
SEBI to participate in 35th India International Trade Fair 2015, at New Delhi.
As part of its endeavor to showcase the well regulated securities market of India, as well as spreading the
message of financial literacy and investor awareness, SEBI had set up a Pavilion 'BHARAT KAA SHARE
BAZAAR' in the 35th India International Trade Fair 2015 (14-27 November 2015), New Delhi in
association with market institutions/associations viz., NSE, BSE, NSDL, CDSL, AMFI, NCDEX, MCX
and NISM. Shri U K Sinha, Chairman SEBI inaugurated the Pavilion on 14th November, 2015 in Hall
No.18, Pragati Maidan, New Delhi.
In its efforts in spreading financial literacy and investor education, SEBI in recent years has conducted
over 30,000 such workshops all over the country. Important investor friendly reforms undertaken in
recent years towards strengthening investor protection and enhancing fairness, transparency and integrity
of the securities market in India include opening of Local Offices in major States, starting an investor
helpline in 14 languages, computerized online grievance redressal system – SCORES, sending end of day
alerts by SMS / email regarding transactions entered on their behalf, expanding the number of investor
grievance and redressal arbitration centers in multiple towns, etc. Recently, Forward Markets
Commission, the erstwhile regulator of commodity derivatives market in India, got merged into SEBI
following the decision of Government of India in this regard.
The main focus of the exhibition was to showcase the well regulated Indian Securities market and its
various products and to spread investor education and awareness including cautioning the public at large
against illegal money mobilization schemes through variety of activities such as talk shows by market
experts, quizzes, skits, display of major investor friendly policies & facilities and live demo of SEBI
Complaints Redress System (SCORES).
Ref: PR No. 261/2015 dated November, 06, 2015
II.
SEBI signs Memorandum of Understanding on bilateral cooperation with the Bangladesh
Securities and Exchange Commission.
Securities and Exchange Board of India (SEBI) and the Bangladesh Securities and Exchange Commission
(BSEC) signed a Memorandum of Understanding (MoU) on bilateral cooperation and technical assistance
at Dhaka, Bangladesh on November 22, 2015.
The MoU was signed by Shri U.K. Sinha, Chairman, SEBI and Dr. M. Khairul Hossain, Chairman, BSEC
in the presence of the Hon'ble Prime Minister of Bangladesh, Ms. Sheikh Hasina and the Hon'ble Finance
Minister of Bangladesh, Mr. AbulMaal A. Muhith.
On this occasion, the Hon’ble Prime Minister, Ms. Sheikh Hasina said that with the signing of the MoU,
door has opened up between the two countries in the capital market, one of the main streams of the
economy. She further emphasized that the MoU will create an opportunity for strengthening the
Bangladesh capital market utilizing the experience of SEBI.
51
Shri Sinha stated that SEBI has been actively engaging with the securities market regulators in the SAARC
region. He also mentioned about the continuing co-operation between SEBI and BSEC and noted that
the MoU will further facilitate training and technical assistance program between the two jurisdictions
besides strengthening relations.
Dr. Hossain said that the presence of Hon’ble Prime Minister in the ceremony indicated the government’s
attention towards the development of capital market. He particularly appreciated the contribution of SEBI
for the cooperation and support to Bangladesh Securities and Exchange Commission with respect to its
becoming signatory to the multilateral Memorandum of understanding of International Organization of
Securities Commissions (IOSCO). He also recalled the assistance received by BSEC from SEBI for its
various reform initiatives in recent years.
The MoU, inter alia, seeks to promote further development of economic links and cooperation between
the two signatories and aims at enhancing investor protection and creating conditions for an effective
development of securities markets in the two countries
In the past, SEBI has signed 20 bilateral MoUs with a number of countries. India and Bangladesh both are
signatories to the multilateral MoU of International Organization of Securities Commissions (IOSCO).
Ref: PR No. 270/2015 dated November, 23, 2015
III.
SEBI Board Meeting
The SEBI Board met in Mumbai on November 30, 2015 and took the following decisions:
1) Listing of Stock Exchanges
The Board took note of representations received for listing of stock exchanges and considered the
proposal to facilitate the same by placing certain safeguards and procedures with respect to shareholding
norms, fit and proper criteria, and other issues of conflict of interest; thereby ensuring compliance with
the ownership and governance norms as provided in Securities Contracts (Regulation) (Stock Exchanges
and Clearing Corporations) Regulations, 2012.
The Board approved the listing of stock exchanges subject to the following measures proposed towards
ensuring compliance with the SECC Regulations, 2012, by a listed stock exchange:
i.
ii.
iii.
Towards maintaining of 51 percentage of shareholding of Public Category and ensuring that
holding of trading members/ associates/ agents does not exceed 49 percent, a mechanism be put
in place providing for approval of the listed stock exchange as and when holding of trading
members/associates/agents reaches a limit of 45 percent.
Towards ensuring compliance that every shareholder be Fit & Proper, each applicant shall be
required to make declaration to this effect at the time of making application during IPO/OFS.
SEBI will also issue necessary procedures to ensure compliance of the provisions post listing.
The shareholding threshold of 2 percent, 5 percent or 15 percent as the case may be, shall be
monitored through Depository mechanism.
52
iv.
v.
In order to effectively implement the provisions of listing of its associates on listed stock
exchanges, the definition of associates is being appropriately amended.
Stock Exchanges shall be classified as infrastructure Company under SEBI (ICDR) Regulations,
2009.
The aforesaid measures shall, mutatis mutandis, apply on the listing of Depository.
2) Committee on Clearing Corporations
Based on the decision of the Board taken at its meeting held on August 24, 2015, public comments were
sought on the Report of the Committee on Clearing Corporations headed by Shri. K.V. Kamath.
The Board considered the recommendations of the Committee and public comments received thereon.
After deliberation, the Board broadly accepted the recommendations of the Committee relating to:
(a)
CCs
Viability of introducing a single Clearing Corporation (CC) or interoperability between different
The Committee had, inter alia, recommended against the idea of a single Clearing Corporation (CC) and
felt that the question of interoperability of CCs can be looked into at a future date
(b)
Transfer of profits every year by the recognized Stock exchanges to the fund of recognized CC
As per recommendation, the stock exchange need not transfer 25% of its profit to core SGF of CC
considering the sufficient availability of SGF.
(c)
Transfer of profits by depositories to their Investor Protection Fund.
The Committee recommended that 5% of profit from depository operations be transferred.
In addition, the Board, while considering the suggestion regarding the nature of eligible investment
instruments, approved that apart from government securities and fixed deposits, liquid schemes of debt
mutual funds may also be made eligible for investment by recognized CCs and be included in their liquid
assets, subject to appropriate investment limits for such investments and any other conditions as may be
specified by SEBI.
3) Consultation paper for disclosure requirements for issuance and listing Green Bonds
The Board considered and approved the proposal for initiation of public consultation process for
disclosure requirements for issuance and listing of Green Bonds, which are in line with the requirements
as provided in Green Bond Principles as recommended by International Capital Market Association
(ICMA).
The issuance and listing of Green Bonds in India does not require any amendment to the SEBI (Issue and
Listing of Debt Securities) Regulations, 2008 (ILDS Regulations). The issue, listing and disclosure
53
requirements as prescribed under the ILDS Regulations will continue to be applicable, like any regular
corporate bond issuance.
4) Proposal for seeking approval for initiation of public consultation process on introduction of
"Primary Market Debt offering through private placement on electronic Book"
The Board considered and approved the proposal for initiation of public consultation process on
introduction of "Primary Market Debt Offering through private placement on electronic Book". The key
benefits of such an electronic platform, inter-alia, are improvement in efficiency and transparency of the
price discovery mechanism vis-à-vis the extant over-the-telephone market coupled with possible
reduction of cost and time taken for such issuances.
It is proposed that such an electronic book may be created by entities to be named as Electronic Book
Providers (EBPs).Entities such as stock exchanges, depositories and Merchant Bankers with net worth
above Rs.100 crore may apply to SEBI for setting up EBPs.
5) Forfeiture of partly paid-up shares - Exemption from Takeover Regulations
The Board approved the proposal to amend SEBI (SAST) Regulations, 2011 for providing general
exemption from open offer obligations arising due to passive increase in voting rights as a result of expiry
of call notice period and forfeiture of shares
6) Deemed Public Issues
Post April 01, 2014, any offer or allotment of securities shall be considered as public issue if the number
of offerees/allottees exceeds 200 persons in a financial year under the Companies Act, 2013 as against the
cap of 49 persons provided in the Companies Act, 1956.
The Board has approved that in respect of the cases involving issuance of securities to more than 49
persons but up to 200 persons in a financial year, the companies may avoid penal action if they had
provided the investors with an option to surrender the securities and get the refund amount at a price not
less than the amount of subscription money paid along with 15% interest p.a. thereon. The exit may be
provided by the company itself or by the promoters or by such persons as arranged by the company /
promoters. The companies may adjust the amounts already paid to the allottees either as interest /
dividend or otherwise from the amount of refund to be paid to the investors. In case of transfer of
securities by the original allottees, option for refund may be provided to the current holders of the
securities.
The refunds made by the company following the option for refund exercised by investors would be
certified by independent practicing Chartered Accountants / practicing Company Secretaries / practicing
Cost Accountants.
The proposal has taken into account the interest of investors while recognizing their right to stay invested
in case they feel it is beneficial to them.
54
7) Business Responsibility Reporting by Listed Entities
SEBI has, vide circular dated August 13, 2012, mandated Business Responsibility Reporting (BRR)
requirement for top 100 listed entities based on market capitalization in their annual reports. The key
principles which are required to be reported by the entities include the areas such as environment, social,
governance, stakeholder’s relationships, etc.
SEBI Board has now approved that present applicability of BRR be extended to top five hundred listed
entities based on market capitalization as on March 31st of every year.
As a green initiative, the business responsibility reports can be given on the websites of the companies
providing website link for the same in their annual reports.
8) Exit opportunity to dissenting shareholders
The Board approved the proposal to initiate public consultation process regarding exit opportunity to
dissenting shareholders under Companies Act, 2013 in case of change in objects or varying the term of
contracts referred to in the prospectus.
9) Public issuance of convertible securities
The Board approved the proposal to initiate public consultation process for revival of public issuance of
convertible securities by listed entities.
10) Delisting of Small Companies
Delisting Regulations provide for simplified procedure of delisting for small companies and exempt them
from the requirements of Chapter IV of the Delisting Regulations subject to certain conditions. Currently,
one of such conditions is that the shares of the company have not been traded for the preceding one year.
Based on suggestion receive from Investor Association, Board has approved the proposal that the
condition of no trading for preceding one year may be relaxed and the small companies, whose trading of
equity shares during the twelve calendar months is less than 10% of the total number of shares of such
company, would also be eligible for simplified procedure of delisting.
However, to protect the interest of investors, the exit price shall not be less than the floor price
determined for the purpose of Reverse Book Building for not frequently traded securities in terms of
Delisting Regulations read with SEBI Takeover Regulations.
Ref: PR No. 283/2015 dated November, 30, 2015
55
POLICY DEVELOPMENTS
A. Circulars
I.
Format for Voting Results
1. Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 (hereinafter referred to as "Listing Regulations"), has prescribed that the listed entity shall
submit to the stock exchange, within forty eight hours of conclusion of its General Meeting,
details regarding the voting results in the format specified by the Board.
2. Accordingly, a format for voting results to be furnished by the listed entities has been specified
alongwith the circular (format is available on the SEBI website).
3. The Stock Exchanges are advised to bring the provisions of this circular to the notice of listed
entities and also to disseminate the same on its website. This circular shall come into force
with effect from December 01, 2015.
Source: CIR/CFD/CMD/8/2015 November 4, 2015.
II.
Format for quarterly holding pattern, disclosure norms for corporate governance report
and manner for compliance with two-way fungibility of Indian Depository Receipts
(IDRs)
1. In terms of sub regulation (1) of regulation 69 of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”),
listed entity shall file with the stock exchange the Indian Depository Receipt (IDR) holding
pattern on a quarterly basis within fifteen days of end of the quarter in the format specified by
SEBI. Accordingly, the listed entity that has issued IDRs shall file the holding pattern with the
stock exchanges as specified (format is available on the SEBI website).
2. Further, sub regulation (1) of regulation 72 of Listing Regulations requires the listed entity to
comply with the corporate governance provisions as applicable in its home country and other
jurisdictions in which its equity shares are listed and sub regulation (2) of regulation 72
requires such a listed entity to submit to the stock exchange, a comparative analysis of the
corporate governance provisions that are applicable in its home country and in the other
jurisdictions in which its equity shares are listed alongwith the compliance of the same vis-a-vis
the corporate governance requirements applicable under regulation 17 to regulation 27, to
other listed entities.
3. To give effect to sub regulation (2) of regulation 72, listed entities shall be guided by the
formats prescribed under SEBI Circular CIR/ CFD/ CMD/ 5 /2015 dated September 24,
2015. The listed entity shall include an additional column confirming whether the requirement
in the row item, originating from the Listing Regulations, is applicable in its home country and
56
other jurisdictions in which its equity shares are listed. Such reports shall follow the periodicity
applicable in its home country and other jurisdictions in which its equity shares are listed.
4. Such information furnished by the listed entity to the stock exchanges in terms of sub
regulation (1) of regulation 69 and sub regulation (2) of regulation 72 shall also be disclosed on
the website of the such listed entity.
5. Further, sub regulation (3) of regulation 76 of Listing Regulations specifies that IDRs shall
have two-way fungibility in the manner specified by the Board from time to time. Accordingly,
the listed entity shall be guided by the procedure for partial two-way fungibility within the
available headroom as specified in the Annexure I issued alongwith the circular (available on
the SEBI website).
Source: CIR/CFD/CMD/9/2015 November 04, 2015.
III.
Format for Business Responsibility Report (BRR)
1. At a time and age when enterprises are increasingly seen as critical components of the social
system, they are accountable not merely to their shareholders from a revenue and profitability
perspective but also to the larger society which is also its stakeholder. Hence, adoption of
responsible business practices in the interest of the social set –up and the environment are as
vital as their financial and operational performance. This is all the more relevant for listed
entities which, considering the fact that they have accessed funds from the public, have an
element of public interest involved, and are obligated to make exhaustive continuous
disclosures on a regular basis. Ministry of Corporate Affairs, Government of India, in July
2011, came out with the 'National Voluntary Guidelines on Social, Environmental and
Economic Responsibilities of Business'. These guidelines contain comprehensive principles to
be adopted by companies as part of their business practices and a structured business
responsibility reporting format requiring certain specified disclosures, demonstrating the steps
taken by companies to implement the said principles. SEBI had introduced requirements with
respect to BRR vide circular No. CIR/CFD/DIL/8/2012 dated August 13, 2012.
2. Pursuant to notification of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), the aforesaid circular
dated August 13, 2012 was rescinded. As per clause (f) of sub regulation (2) of regulation 34 of
Listing Regulations, the annual report shall contain a business responsibility report describing
the initiatives taken by the listed entity from an environmental, social and governance
perspective, in the format as specified by the Board. Accordingly, listed entities shall be guided
by the format as specified in the Annexure I issued alongwith the circular (available on the
SEBI website).
3. Certain key principles to assess the fulfilment of listed entities and a description of the core
elements under these principles are detailed in the Annexure II issued alongwith the circular
(available on the SEBI website).
57
4. Those listed entities which have been submitting sustainability reports to overseas regulatory
agencies/stakeholders based on internationally accepted reporting frameworks need not
prepare a separate report for the purpose of these guidelines but only furnish the same to their
stakeholders alongwith the details of the framework under which their BR Report has been
prepared and a mapping of the principles contained in these guidelines to the disclosures made
in their sustainability reports.
Source: CIR/CFD/CMD/10/2015 November 04, 2015.
IV.
Streamlining the Process of Public Issue of Equity Shares and Convertibles
1. As a part of the continuing endeavor to streamline the process of public issue of equity shares
and convertibles, it has been decided, in consultation with the market participants –
i.
ii.
iii.
2.
to reduce the time taken for listing after the closure of issue to six working days as against
the present requirement of twelve working days, and
to broad-base the reach of investors by substantially enhancing the points for submission
of applications.
In this regard, necessary amendments to the SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2009 have already been notified.
The operational details to implement the above are outlined below:
2.1. All the investors applying in a public issue shall use only Application Supported by Blocked
Amount (ASBA) facility for making payment i.e. just writing their bank account numbers and
authorising the banks to make payment in case of allotment by signing the application forms,
thus obviating the need of writing the cheques.
2.2. In addition to the Self Certified Syndicate Banks (SCSBs), Syndicate Members and Registered
Brokers of Stock Exchanges, the Registrars to an Issue and Share Transfer Agents (RTAs) and
Depository Participants (DPs) registered with SEBI are now permitted to accept application
forms (both physical as well as online) in public issues.
2.3. The RTAs and DPs shall provide their contact details, where the application forms shall be
collected by them, to the recognized stock exchanges by November 30, 2015 as per the format
specified in the Annexure-A issued alongwith the circular(available on website) and the same
shall be disclosed by the stock exchanges on their websites. RTAs and DPs shall regularly update
the said details by furnishing current information to the stock exchanges which shall be
disclosed by the stock exchanges.
Processing of Applications by Intermediaries
2.4. Intermediaries accepting the application forms shall be responsible for uploading the bid
alongwith other relevant details in application forms on the electronic bidding system of stock
exchange(s) and submitting the form to SCSBs for blocking of funds (except in case of SCSBs,
where blocking of funds will be done by respective SCSBs only). They shall undertake the
various activities in accordance with indicative timelines as specified in this circular.
58
2.5. All applications shall be stamped and thereby acknowledged by the intermediary at the time of
receipt.
Alerts by Stock Exchanges
2.6. Similar to the systems prevalent in case of secondary market transactions, the stock exchanges
shall develop the systems to facilitate the investors to view the status of their public issue
applications on their websites and sending the details of applications and allotments through
SMS and E-mail alerts to the investors.
Timelines
2.7. The revised indicative timelines for various activities are specified in the Annexure- B issued
alongwith the circular (available on website).
2.8. All intermediaries shall co-ordinate with one another to ensure completion of listing of shares
and commencement of trading by T+6.
Other Requirements
2.9. Amount of commission payable to RTA / DP shall be determined on the basis of
applications which have been considered eligible for the purpose of allotment. In order to
determine to which RTA / DP the commission is payable to, the terminal from which the bid
has been uploaded will be taken into account.
2.10. The details of commission and processing fees payable to each intermediary and the timelines
for payment shall be disclosed in the offer document and this shall be implemented strictly.
3. The intermediaries shall provide guidance to their investors on making applications in public
issues.
4. The merchant bankers shall ensure that appropriate disclosures are made in offer documents
in accordance with this circular.
5. All intermediaries are advised to take necessary steps to ensure compliance with this circular.
6. The responsibilities of various intermediaries and indicative timelines, prescribed vide the
previous circulars, shall stand modified to the extent stated under this circular:
7. This circular is being issued in exercise of the powers under section 11 read with section 11A
of the Securities and Exchange Board of India Act, 1992.
Source: CIR/CFD/POLICYCELL/11/2015 November 10, 2015
V.
Annual System Audit, Business Continuity Plan (BCP) and Disaster Recovery (DR)
1.
Pursuant to Section 131 of the Finance Act, 2015 and Central Government notification F.No.
1/9/SM/2015 dated August 28, 2015, all recognized associations under the Forward Contracts
(Regulation) Act, 1952 are deemed to be recognized stock exchanges under the Securities
Contracts (Regulation) Act, 1956 with effect from September 28, 2015. This circular applies to
National Commodity Derivatives Exchanges (Exchanges) as defined in the Securities Contracts
(Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2015.
59
2.
While technological developments and innovations bring efficiency to the markets, they may also
pose certain risks to the stability and integrity of the markets, if not identified and managed
effectively. Further, any events of disaster will disrupt trading systems adversely, thereby impacting
the market integrity and the confidence of investors. Exchanges should therefore have robust
Business Continuity Plan (BCP) and Disaster Recovery (DR) to ensure continuity of operations.
3.
In view of above, the guidelines relating to Annual System Audit, BCP and DR are as follows:
A. Annual System Audit.
I.
II.
B.
The exchanges shall conduct annual system audit as per the prescribed audit framework
which includes, audit process, auditor selection norms, Terms of Reference (TOR) and
audit
report
guidelines
in
accordance
with
SEBI
circular
no.
CIR/MRD/DMS/13/2011dated November 29, 2011.
First Annual System Audit of Exchanges shall be conducted on or before June 30, 2016
for the year 2015-16 as per the provisions of the above mentioned circular. The Systems
Audit Report and compliance status should be placed before the governing board of the
exchange and communicated to SEBI alongwith their comments.
Business Continuity Plan (BCP) and Disaster Recovery (DR).
I.
The exchanges shall have BCP& DR policy in place and implement the broad guidelines
regarding the setting up of Disaster Recovery Site (DRS) and Near Site (NS),
Configuration of DRS/NS with Primary Data Centre (PDC), DR drills / Testing, BCP DR
policy document as per the provisions of SEBI circular no. CIR/MRD/DMS/12/2012
dated April 13, 2012 read with circular no. CIR/MRD/DMS/17/2012 dated June 22,
2012.
II. The exchanges having DRS / NS shall align their entire set up in accordance with the
provisions as mentioned in the circulars at Point B(I) on or before April 01, 2016.
III. The exchanges which do not have DRS / NS presently shall set up DRS/NS on or before
September 30, 2016 in accordance with the provisions as mentioned in the circulars at
Point B (I).
IV. The exchanges shall submit their BCP – DR policy alongwith detailed plan of action for
implementation to SEBI on or before April 01, 2016.
5.
All the provisions of this circular shall be implemented by national commodity derivatives
exchanges, unless otherwise approved by SEBI.
Source: CIR/CDMRD/DEICE/01/2015 November 16, 2015.
VI.
Investor Grievance Redressal System and Arbitration Mechanism.
1. Pursuant to Section 131 of the Finance Act, 2015 and Central Government notification F. No.
1/9/SM/2015 dated August 28, 2015, all recognized associations under the Forward Contracts
(Regulation) Act, 1952 are deemed to be recognized stock exchanges under the Securities
Contracts (Regulation) Act, 1956 with effect from September 28, 2015. This circular applies to
National Commodity Derivatives Exchanges as defined in the Securities Contracts
(Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2015.
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2. This circular is issued with an objective to streamline and strengthen the framework of investor
redressal and arbitration mechanism at commodity derivatives exchanges in line with the
securities market. The provisions of this circulars are as under :
A. Investor Service Centre(ISC)/ Investor Grievances Redressal Committee (IGRC) :
i.
The national commodity derivative exchanges shall set up investor service centers
(ISC) for the benefit of the public/ investors in accordance with the circular
CIR/MRD/DSA/03/2012 dated January 20, 2012.
ii.
The national commodity derivatives exchanges shall constitute IGRC in
accordance with the SEBI circular no CIR/MRD/DSA/03/2012 dated January
20, 2012 and shall perform all such functions and responsibilities as stated in the
SEBI circular no CIR/MRD/ICC/30/2013 dated September 26, 2013.
B. Arbitration Committee / Panel and Appellate Arbitration:
i.
The national commodity derivatives exchanges shall maintain panel of arbitrators,
code of conduct for arbitrators, arbitration process, appellate arbitration, place of
arbitration (nearest address provided by the client in the KYC form),
implementation of arbitration award in favour of clients, records and disclosures as
per the provisions of SEBI Circulars No CIR/MRD/DSA/24/2010 dated August
11,2010,
CIR/MRD/DSA/04/2012date
January
20,
2012
and
CIR/MRD/ICC/20/2013 dated July 05, 2013.
ii.
The national commodity derivatives exchanges shall make applicable the
arbitration fees to each parties to the arbitration in accordance with the SEBI
Circular No CIR/MRD/DSA/29/2010 dated August 31, 2010 read with
CIR/MRD/ICC/29/2012dated
November
07,
2012
and
CIR/MRD/ICC/29/2013 dated September 26, 2013.
C. Automatic Process and Common Pool of arbitrators :
i.
The national commodity derivatives exchanges shall pool all arbitrators of their
exchange in the common pool across all national commodity derivatives
exchanges, facilitate automatic selection of arbitrators from the common pool and
shall also follow all other provisions mentioned in the SEBI Circular
CIR/MRD/ICC/8/2013 dated March 18, 2013.
3.
All the provisions of this circular shall be implemented by national commodity derivatives
exchanges latest by April 1, 2016, unless otherwise approved by SEBI.
4.
The norms specified by Forward Markets Commission shall continue to be in force to the extent
not modified or repealed by this circular.
5.
The implementation of this circular should be reported by the national commodity derivatives
exchange to SEBI on monthly basis.
Source: CIR/CDMRD/DIECE/02/2015 November 16, 2015.
61
VII.
Timelines for Compliance with various provisions of Securities Laws by Commodity
Derivatives Exchanges.
1.
Pursuant to Section 131 of the Finance Act, 2015 and Central Government Notification S.O. 2362
(E) dated August 28, 2015, all recognized associations (commodity derivatives exchanges) under
the Forward Contracts (Regulation) Act, 1952 (‘FCRA’) are deemed to be recognized stock
exchanges under the Securities Contracts (Regulation) Act, 1956 (‘SCRA’) with effect from
September 28, 2015.
2.
Section 131 of the Finance Act, 2015 also stipulates that SEBI may provide such deemed
exchanges, adequate time to comply with the provisions of SCRA and any regulations, rules,
guidelines or like instruments made under SCRA. Accordingly, commodity derivatives exchanges
shall comply with the provisions of SCRA, applicable provisions of Securities Contracts
(Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, (‘SECC
Regulations’) and SEBI circular CIR/MRD/DSA/33/2012 dated December 13, 2012, on
procedural norms on recognition, ownership and Governance for Stock Exchanges and Clearing
Corporation (‘SECC Circular’).
3.
The timelines provided in this circular shall be reckoned from the date of recognized associations
under FCRA having been deemed to be recognized stock exchanges under SCRA, i.e. September
28, 2015.
4.
5.
6.
7.
8.
Corporatization and Demutualization:
Regional commodity derivatives exchanges shall corporatize and demutualize within a period of
three years in accordance with the provisions contained in section 4B of SCRA. In this regard,
regional commodity derivatives exchanges shall submit a scheme for corporatization and
demutualization for SEBI approval within a period of two years, as per the procedure laid down in
section 4B of SCRA.
Clearing and Settlement:
Commodity derivatives exchanges shall transfer the functions of clearing and settlement of trade
to a separate clearing corporation within three years. Till then, the exchanges may continue with
the existing arrangement for clearing and settlement of trades.
Validity of recognition of Commodity Derivative Exchanges:
Validity of recognition of commodity derivatives exchanges under SCRA shall be taken to be the
same as the validity of their recognition under FCRA. Further, the renewal of recognition, if any,
will be as per SCRA and SECC Regulations.
The conditions required to be continuously complied with by recognized stock exchanges as given
in Regulation 7(3) of SECC Regulations shall be complied with by national commodity derivative
exchanges within one year and by regional commodity derivatives exchanges within three years.
However, commodity derivatives exchanges shall immediately put in place adequate surveillance
system to monitor positions, prices and volumes etc. so as to ensure market integrity till online
real-time surveillance systems are set up and operationalised.
Conditions required to be continuously complied with by recognized clearing corporations given
in Regulation 7(4) of SECC Regulations, to the extent applicable, shall be complied with by
national commodity derivatives exchanges within one year and by regional commodity derivatives
exchanges within three years.
62
9.
10.
11.
12.
13.
14.
15.
16.
17.
Regulatory Fee:
Commodity derivatives exchanges shall pay the regulatory fee in terms of Securities and Exchange
Board of India (Regulatory Fee on Stock Exchanges) Regulations, 2006.
Networth Requirements:
Commodity derivatives exchanges shall comply with Regulation 14(1) of SECC Regulations as
specified below:
a)
Any national commodity derivatives exchange having a networth of less than INR 100
crore, shall achieve a minimum networth of INR 100 crores by May 5, 2017. Further, it
shall submit a plan duly approved by its shareholders to SEBI for achieving the networth
in terms of Regulation 14 of SECC Regulations, within six months.
b)
Any regional commodity derivatives exchange having networth of less than INR 100
crore, shall achieve a minimum networth of INR 100 crores within three years. Further, it
shall submit a plan duly approved by its shareholders to SEBI for achieving the networth
in terms of regulation 14 of SECC Regulations, within six months.
It may be stated that commodity derivative exchanges shall not distribute profits in any manner to
its shareholders until the requisite networth of INR 100 crores is achieved in terms of Regulation
14(4) of SECC Regulations.
It may also be stated that commodity derivatives exchanges shall submit audited networth
certificate from the statutory auditor on an yearly basis by the thirtieth day of September every
year for the preceding financial year in terms of Regulation 14(5) of SECC Regulations. The
networth certificate for the financial year ended on 31st March, 2015 shall be submitted by 31st
December, 2015.
Ownership:
National commodity derivatives exchanges shall comply with the shareholdings limits specified
under SECC Regulations, 2012 by May 5, 2019. As per clause 5 of SECC Circular, they shall put in
place a monitoring mechanism to ensure compliance with the shareholding restrictions specified in
SECC Regulations.
Shareholdings of existing shareholders of national commodity derivatives exchanges, whose
shareholdings were approved by Forward Markets Commission (FMC), shall not require fresh
approval from SEBI. However, any fresh holdings will be governed by the provisions of
Regulation 19 of SECC Regulations and SECC Circular.
Regulations 20 to 22 of SECC Regulations shall be applicable to national commodity derivative
exchange with immediate effect. The format for submitting shareholding pattern to SEBI is being
specified in the annexure issued alongwith the circular (available on the SEBI website).
Regional Commodity Derivatives Exchanges shall comply with the provisions specified in Chapter
IV of SECC Regulations within three years.
Governance:
Provisions of Regulations 23 to 26 shall be applicable to national commodity derivatives
exchanges, subject to the following:
a)
Existing Independent Directors on the boards of national commodity derivatives
exchanges shall be deemed to be Public Interest Directors (PIDs) under SECC
Regulations,
b)
All existing directors on the governing boards of national commodity derivatives
exchanges who are not in compliance with SECC Regulations may be allowed to continue
for one year or till completion of their term, whichever is earlier.
c)
All new appointments on the governing boards of national commodity derivatives
exchanges shall be governed by the provisions of SECC Regulations and SECC Circular.
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18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
National Commodity Derivatives Exchanges shall comply with the provisions of Regulation 27 of
SECC Regulations within one year.
Regional Commodity Derivatives Exchanges shall comply with the provisions of Regulations 23
to 27 of SECC Regulations within three years.
Segregation of Regulatory Departments:
Commodity derivatives exchanges shall segregate their regulatory departments (as indicated in
SECC Circular) from other departments in the manner specified in Part C of Schedule II of SECC
Regulations within six months.
Oversight Committees:
Commodity derivative exchanges shall comply with the requirements of Regulation 29 read with
Regulation 44D (1) (b) of SECC Regulations within three months. National commodity
derivatives exchanges shall constitute an oversight committee for 'Product design', chaired by a
Public Interest Director, within three months.
Advisory Committee and other Statutory Committees:
National commodity derivatives exchanges shall constitute Advisory committees in line with
Regulation 30 of SECC Regulations, 2012 and statutory committees as specified in SECC Circular
within one year.
Regional commodity derivatives exchanges shall constitute Advisory committees in line with
Regulation 30 of SECC Regulations, 2012 and statutory committees as pre specified scribed in
SECC Circular within three years.
Risk Management Committee:
Till the functions of clearing and settlement are transferred to a separate clearing corporation,
commodity derivatives exchanges shall comply with provisions of Regulation 31 of SECC
Regulations relating to risk management committee. This committee shall be constituted.
Appointment of Compliance Officer:
All commodity derivative exchanges shall appoint a compliance officer in terms of Regulation 32
of SECC Regulations.
Transfer of Penalties:
National commodity derivative exchanges shall credit all settlement related penalties to their
settlement guarantee fund (SGF) and other penalties to Investor Protection Fund (IPF).
Regional Commodity Derivatives Exchanges shall credit all penalties to their SGF. On creation of
IPF, regional commodity derivatives exchanges shall credit penalties other than settlement related
to their IPF.
Disclosure and Corporate Governance Norms:
Regulation 35 of SECC Regulations shall be applicable to national commodity derivative
exchanges immediately. Regional commodity derivatives exchanges shall comply with this
Regulation within three years.
General Obligations:
Till the functions of clearing and settlement are transferred to a separate clearing corporation,
commodity derivative exchanges shall comply with the provisions of Regulation 39 of SECC
Regulations on Fund to guarantee settlement of trades.
64
30.
The provisions of Regulations 41, 42, 43, 44 and 44A of SECC Regulations to a recognized stock
exchange shall be applicable to commodity derivatives exchanges. Additionally, the provisions of
Regulations 41, 42, 43, 44 and 44A of SECC Regulations in so far as they pertain to a recognized
clearing corporation shall be applicable to commodity derivatives exchanges till the functions of
clearing and settlement are transferred to a separate clearing corporation.
Till the functions of clearing and settlement are transferred to a separate clearing corporation,
commodity derivative exchanges shall have right to recover dues from its trading/clearing
members arising from the discharge of their clearing and settlement functions from the collaterals,
deposits and the assets of the trading/clearing members in line with Regulation 44B of SECC
Regulations.
Regulation 44C and 44D of SECC Regulations shall be applicable to commodity derivatives
exchanges.
31.
32.
Listing:
Regulation 45 of SECC Regulations shall be applicable to commodity derivatives exchanges.
33.
Dematerialization of Securities:
National commodity derivative exchanges shall comply with Regulation 46 of SECC Regulations
with respect to holding securities in dematerialized form within six months, and regional
commodity derivatives exchanges shall comply with the same within three years.
34.
Source: CIR/CDMRD/DEA/03/2015 November 26, 2015.
VIII. Issue of No Objection Certificate for release of 1% of issue amount.
1.
As per the extant Listing Agreement with the Stock Exchanges, Issuer Company deposits 1%
of the issue amount of the securities offered to the public and/or to the holders of the existing
securities of the company, as the case may be, with the designated stock exchange. SEBI, vide
circular no. OIAE/Cir-1/2009 dated November 25, 2009, had laid down the procedure for
issuance of No Objection Certificate to the designated stock exchange for release of the
amount to the issuer company.
2.
On Listing Agreements being novated and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 taking effect from December 01, 2015,an issuer company
shall deposit the 1% security deposit in terms of the respective Regulations related to issuance
of capital. Therefore, Circular no. OIAE/Cir-1/2009 dated November 25, 2009, shall be
partially modified w.e.f. December 01, 2015 as:
(a) In para 1 of the Circular the phrase “as per the Listing Agreement with the Stock
Exchanges” shall be replaced by “as per provisions of SEBI (Issue of Capital and
Disclosure Requirements) Regulations, 2009, SEBI (Issue and Listing of Debt Securities)
Regulations, 2008, SEBI (Issue and Listing of Non-Convertible Redeemable Preference
Shares) Regulations, 2013 and SEBI (Public Offer and Listing of Securitised Debt
Instruments) Regulations, 2008”.
(b) In para 5(b) of the Circular the words “Listing Agreement‟ shall stand deleted.
65
3.
This Circular is issued in exercise of powers conferred under Section 11(1) of the Securities
and Exchange Board of India Act, 1992 to protect the interests of investors in securities and
to promote the development of, and to regulate the securities market.
Source: CIR/OIAE/001/2015 November 30,2015.
IX. Non-compliance with certain provisions of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and Standard Operating Procedure for suspension
and revocation of trading of specified securities.
1. In terms of sub regulation (1) of regulation 97 of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”),
recognized Stock Exchanges shall monitor compliance by listed entities with the provisions of
the regulations.
2. Sub regulations (1) and (2) of regulation 98 of Listing Regulations inter alia specify liability of a
listed entity or any other person for contravention and actions which can be taken by the
respective stock exchange and the revocation of such actions, in the manner specified by
SEBI.
3. Accordingly, recognized stock exchanges shall use imposition of fines as action of first resort in
case of such non compliances and invoke suspension of trading in case of subsequent and
consecutive defaults. Accordingly, in order to maintain consistency and uniformity of
approach the recognized stock exchanges shall follow the following procedure:
a) Uniform fine structure for non-compliance with Listing Regulations regarding nonsubmission of certain periodic reports as specified in Annexure -I issued along
with the circular (available on website).
b) Standard Operating Procedure (SOP) for suspension and revocation of suspension of
trading of specified securities as specified in Annexure – II issued along with the
circular (available on website).
4. In order to ensure effective enforcement of the Listing Regulations, the depositories, on receipt of
intimation from concerned recognized stock exchange, shall freeze or unfreeze, as the case
may be, the entire shareholding of the promoter and promoter group in such entity.
5. The recognized stock exchanges shall disclose on their website the action/s taken against the listed
entities for non-compliance(s); including the details of respective requirement, amount of fine,
period of suspension, freezing of shares, etc.
6. Recognized stock exchanges may, having regard to the interests of investors and securities market,
take appropriate action in line with the principles and procedures laid down in Annexure - I
and II issued along with the circular and any deviation therefore should not dilute the spirit of
the policy contained therein. Any deviation shall be on justifiable reasons to be recorded in
writing. The above actions are without prejudice to power of SEBI to take action under
securities laws for above violations.
66
7. The Stock Exchanges are advised to bring the provisions of this circular to the notice of listed
entities and also to disseminate the same on its website. This circular shall come into force
with effect from December 01, 2015.
8. This circular is issued under regulations 97, 98, 99 and 102 read with regulation 101(2) of
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
Source: CIR/CFD/CMD/12/2015 November 30, 2015.
X. Disclosure of holding of specified securities and Holding of specified securities in
dematerialized form.
1. Regulation 31 of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“Listing Regulations”), deals with the disclosure of
shareholding pattern and manner of maintaining shareholding in dematerialized format.
2. Manner of representation of holding of specified securities.
a.
b.
c.
d.
The holding of specified securities shall be divided into the following 3 categories
viz. Promoter and Promoter Group, Public and Non Promoter Non Public.
‘Promoter and Promoter Group’ shall have the same meaning as defined under
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009.
The details of the shareholding of the promoters and promoter group must be
accompanied with PAN Number (first holder in case of joint holding). Further, the
shareholding of the promoter and promoter group is to be consolidated on the
basis of the PAN and folio number to avoid multiple disclosures of shareholding
of the same person.
In the disclosure of Public Shareholding:
i.
ii.
iii.
iv.
e.
For disclosure under category “Institution”, the shareholder should fall
under the category “Qualified Institutional Buyer” as defined under
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009.
All other Public Shareholding shall be displayed under Categories “Central
Government/State Government(s)/President of India” or “NonInstitutions”.
Names of the shareholders holding 1% or more than 1% of shares of listed
entity is to be disclosed.
Names of the shareholders who are persons acting in concert, if available,
shall be disclosed separately.
Shares against which Depository Receipts have been issued:
i.
As per Securities Contracts (Regulation) Rules, 1957 and Depository
Receipts Scheme, 2014, the shares of a listed entity underlying the
depository receipts shall form part of the public shareholding of the
67
ii.
iii.
company only if the holder of such depository receipts has the right to
issue voting instruction and such depository receipts are listed on an
international exchange.
Accordingly, the underlying shares, against which depository receipts have
been issued, held by any person belonging to Promoter and Promoter
Group, shall be disclosed under category ‘Promoter and Promoter Group’.
The shares which are held by persons other than Promoter and Promoter
Group and satisfying the above conditions would be classified under the
category ‘Public Shareholding’.
The underlying shares, against which depository receipts have been issued,
of a listed entity not satisfying the conditions at para (i) above which are
held by Public Shareholders shall be classified under category ‘Non Public
Non Promoter shareholding’.
3. The listed entity shall ensure that shareholding of employee trusts and schemes are shown
separately in relevant categories in terms of SEBI (Share Based Employee Benefits)
Regulations, 2014.
4. Manner of calculation of shareholding
a.
b.
c.
d.
The categories as defined at para 2(a) above:
i.
Promoter and Promoter Group (A)
ii.
Public (including shares underlying DRs which fulfil the conditions laid
down in Rule 2(e) of Securities Contracts (Regulation) Rules, 1957) (B).
iii.
Non Promoter Non Public (C)
1. Shares held by DR Holders (which don’t fulfil the conditions laid down
in Rule 2(e) of Securities Contracts (Regulation) Rules, 1957) (C1)
2. Shares held by Employee Benefit Trust under Securities and Exchange
Board of India (Share Based Employee Benefits) Regulations, 2014
(C2)
Total Shareholding for the purpose of calculating the public shareholding shall be
calculated as (A+B+C2) in line with requirements of Depository Receipts Scheme,
2014, Securities Contracts (Regulation) Rules, 1957 as amended up to February 25,
2015 and Securities and Exchange Board of India (Share Based Employee
Benefits) Regulations, 2014.
Percentage of promoter Shareholding shall be calculated as A/(A+B+C2) * 100.
Percentage of public Shareholding shall be calculated as B/(A+B+C2) * 100.
5. Formats: The format for disclosure of holding of specified securities has been specified in the
Annexure I issued alongwith the circular (available on website).
a.
Summary statement showing holding of specified securities of the listed entity
should be as per the format given in Table-I attached with the circular (available on
website).
b.
Statement showing holding of specified securities of the Promoter and Promoter
Group should be as per the format given in Table-II attached with the circular
(available on website).
68
c.
Statement showing holding of specified securities of the public shareholders
should be as per the format given in the Table-III attached with the circular
(available on website).
d.
Statement showing holding of specified securities of the Non Promoter- Non
Public shareholder should be as per the format given in the Table-IV attached with
the circular (available on website).
6. Holding of specified securities in dematerialized form:
a. Regulation 31(2) of Listing Regulations mandates the Listed Entities to ensure that
100% of shareholding of promoter(s) and promoter group is in dematerialized form
and the same is maintained on a continuous basis in the manner specified by the Board.
The listed entity shall take into consideration the following exemptions while arriving at
compliance with 100% promoter(s) holding in dematerialized form:i.
promoter(s) shares which were sold in physical mode and have not been lodged for
transfer with the listed entity ;
ii. matters that are sub-judice before any Court/Tribunal, concerning shareholding of
promoters/promoter group either in part or in entirety; or
iii. shares that cannot be converted into dematerialized form due to death of any
promoter(s);
b. For availing such exemption under Para 6(a) - (i) to (iii) above, Listed Entity shall
approach Stock Exchange(s) along with necessary documentary evidence.
c. In case any such exemption has been granted to the Listed Entity the same must be
stated in summary statement and given separately and information should be given
separately in Annexure issued alongwith the circular (available on website).
d. Further, at least 50% of non-promoter holding shall be held in dematerialized form.
The listed entity shall take necessary steps for achieving the same.
e. While computing the requirement of minimum 50% shareholding of non-promoters in
dematerialized form in a company, the government holding in non-promoter category
may be excluded.
7. Display of holding of specified securities on website of Stock Exchange(s).
a. If the Listed Entity confirms that any particular instrument is not issued or there are no
encumbered/pledged shares and locked-in shares, respective columns will not be
displayed by the Stock Exchange(s) on their website. The declaration given by the
Listed Entity in this regard would be displayed by Stock Exchange(s).
b. The Stock Exchange(s) shall also ensure that PAN numbers so disclosed in different
tables are not displayed on the website of Stock Exchange(s).
69
8. The Depositories shall provide the shareholding data to listed entities in the requisite
categorization as prescribed in the Circular.
9. The Stock Exchanges are advised to bring the provisions of this circular to the notice of the listed
entities and also to disseminate the same on its website. This circular shall come into force
on December 01, 2015.
10. This Circular is issued in exercise of the powers conferred under Section 11 and Section 11A of
the Securities and Exchange Board of India Act, 1992 read with Regulation 31 and
Regulation 101(2) of the Listing Regulations, 2015.
Source: CIR/CFD/CMD/13/2015 November 30, 2015
XI.
Manner of achieving minimum public shareholding.
1. Regulation 38 of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 provides that the listed entity shall comply with minimum
public shareholding requirements in the manner as specified by the Board from time to time.
2. In order to achieve the minimum level of public shareholding specified in Rule 19(2)(b) and/or
Rule 19A of the Securities Contracts (Regulation) Rules, 1957, the Listed Entity shall adopt
any of the following methods :i.
ii.
iii.
iv.
v.
vi.
vii.
Issuance of shares to public through prospectus;
Offer for sale of shares held by promoters to public through prospectus;
Sale of shares held by promoters through the secondary market in terms of SEBI
circular CIR/MRD/DP/05/2012 dated February 1, 2012;
Institutional Placement Programme (IPP) in terms of Chapter VIIIA of SEBI
(Issue of Capital and Disclosure Requirements) Regulations, 2009;
Rights Issue to public shareholders, with promoter/promoter group shareholders
forgoing their entitlement to equity shares, that may arise from such issue;
Bonus Issues to public shareholders, with promoter/promoter group shareholders
forgoing their entitlement to equity shares, that may arise from such issue;
Any other method as may be approved by SEBI on a case to case basis. For this
purpose, the listed entities may approach SEBI with appropriate details. SEBI
would endeavor to communicate its decision within 30 days from the date of
receipt of the proposal or the date of receipt of additional information as sought
from the company.
3.
The Stock Exchanges are advised to bring the provisions of this circular to the notice of
the listed entities and also to disseminate the same on its website. This circular shall come
into force on December 01, 2015.
4.
This Circular is issued in exercise of the powers conferred under Section 11 and Section
11A of the Securities and Exchange Board of India Act, 1992 read with Regulation 38 and
Regulation 101(2) of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
Source: CIR/CFD/CMD/14/2015 November 30, 2015
70
XII.
Formats for publishing financial results.
1.
In order to enable investors to make well-informed investment decisions, timely, adequate and
accurate disclosure of financial results on a periodical basis is critical. At the same time, to
ensure comparability, uniformity and parity in disclosures made by listed entities across stock
exchanges is essential.
2.
Towards this end, Regulation 33 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (hereinafter referred to as “the listing Regulations, 2015”),
has prescribed various disclosures to be filed under various provisions contained therein in the
formats as may be specified by the Board.
3.
Formats:
a)
b)
c)
d)
e)
f)
g)
h)
The quarterly financial results shall be presented in the format prescribed in
Annexure I and for companies other than banks is prescribed in Annexure II for
banks and are issued along with the circular (available on website).
Manufacturing, trading and service companies, which propose to follow functional
(secondary) classification of expenditure in the annual profit and loss account, shall
furnish quarterly financial results in the alternative format prescribed at Annexure
III issued along with the circular and is available on website. The alternative format
shall be used only if such format is used consistently from the first quarter of the
financial year.
If the company has more than one reportable primary segment in terms of
Accounting Standard (‘AS’) 17/ Indian Accounting Standard (‘Ind AS’) 108
mandated under Section 133 of the Companies Act, 2013 read with rules framed
thereunder or issued by ICAI, it shall also submit quarterly and annual segment
information as part of financial results in the format as specified in Annexure IV
issued along with the circular (available on website).
Limited review reports shall be given by auditors in the format prescribed in
Annexure V for companies other than banks (including those using the alternative
format of financial results) and in the format given in Annexure VI for banks
issued along with the circular (available on website).
In case of audited financial reports, the audit report shall be given by the auditors
in the format given in Annexure VII for companies other than banks (including
those using the alternative format of financial results) and in the format given in
Annexure VIII for banks issued along with the circular and is available on website..
Half-Yearly Statement of Assets and Liabilities shall be in the format specified in
Annexure IX issued along with the circular (available on website) drawn from
Schedule III of the Companies Act, 2013 or its equivalent formats in other
statutes, as applicable.
The Form A (for audit report with unmodified opinion) and Form B (for audit
report with modified opinion) shall be filed in the format specified in Annexure X
issued along with the circular (available on website).
The financial results published in the newspapers in terms of Regulation 47(1)(b)
shall be in the format prescribed in Annexure XI issued along with the
circular(available on website).
71
4.
While preparation of the financial results, the following shall be noted:a.
Annual audited financial results shall be in the format as is applicable to quarterly
financial results. However, columns and figures relating to the last quarter, year to
date results and corresponding three months in previous year may not be
disclosed.
b.
The applicable Accounting Standards are those standards mandated under Section
133 of the Companies Act, 2013 read with the relevant rules issued
thereunder/issued by ICAI as applicable.
c.
The classification / disclosure of items in the financial results shall be in
accordance with the Schedule III of the Companies Act, 2013 or its equivalent
formats in other statutes, as applicable.
5.
Companies adopting the Ind AS in terms of Companies (Indian Accounting Standards) Rules,
2015 notified by the Ministry of Corporate Affairs on February 16, 2015 while publishing
quarterly/annual financial results under Regulation 33 of the Listing Regulations, 2015, shall
ensure that the comparatives filed along with such quarterly/annual financial results are also
Ind AS compliant.
6.
The Stock Exchanges are advised to bring the provisions of this circular to the notice of listed
entities and also to disseminate the same on its website. This circular shall come into force
with effect from December 01, 2015.
7.
This Circular is being issued in exercise of powers conferred under Section 11 and Section
11A of the Securities and Exchange Board of India Act, 1992 read with Regulation 33,
Regulation 47 and Regulation 101(2) of the Listing Regulations, 2015.
Source: CIR/CFD/CMD/15/2015 November 30, 2015.
XIII. Schemes of Arrangement by Listed Entities and (ii) Relaxation under Sub-rule (7) of rule
19 of the Securities Contracts (Regulation) Rules, 1957.
1. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to
as “listing regulations”) place obligations with respect to Scheme of Arrangement on Listed
Entities and Stock Exchange(s) in Regulation 11, 37 and 94.
Sub-rule (7) of rule 19 of the Securities Contracts (Regulation) Rules, 1957 (hereinafter
referred to as “the SCRR”) provides that Securities and Exchange Board of India (SEBI) may,
at its own discretion or on the recommendation of a recognised stock exchange, waive or relax
the strict enforcement of any or all of the requirements with respect to listing prescribed by
these rules.
2. Thus the additional requirements in order to achieve the intent of regulations 11, 37 and 94 and
for availing exemption under sub-rule (7) of rule 19 of SCRR, if applicable are specified in the
Annexure-I issued along with the circular(available on website).
72
3. Applicability: The Circular shall come into force w.e.f. December 01, 2015. The Schemes already
submitted to the stock exchange in terms of Part A of SEBI Circular CIR/CFD/DIL/5/2013
dated February 04, 2013 read with CIR/CFD/DIL/8/2013 dated May 21, 2013, shall be
governed by the requirements specified in these circulars.
Source: CIR/CFD/CMD/16/2015 November 30, 2015
73
REGULATORY ACTIONS TAKEN BY SEBI

SEBI vide its order dated 30th Nov, 2015 in exercise of the powers conferred under Section 15-I
of the SEBI Act, 1992 read with Rule 5 of the SEBI Rules, 1995 imposed the following monetary
penalties on Mr. Jayesh Shah, Mr. Tushar Shah and Mr. Parag Shah for violating the Regulations
3(a) (b) (c) , 4(1) , 4(2)(e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating
to Securities Market), Regulations, 2003 in the matter of M/s. Platinum Corporation Limited:
S. No
1
Name of the
Noticee
No. of
shares
offloaded
Approx. profit made
Jayesh Shah
40,00,000
24,00,000
(in `)
(40,00,000 x 0.6)
2
Tushar Shah
40,00,000
24,00,000
(40,00,000 x 0.6)
3
Parag Shah
40,00,000
24,00,000
(40,00,000 x 0.6)
4
TOTAL
Penalty imposed - 3 times of
the profit made (in ₹)
₹ 72,00,000 (Rupees Seventy
Two Lakhs Only)
₹ 72,00,000 (Rupees Seventy
Two Lakhs Only)
₹ 72,00,000 (Rupees Seventy
Two Lakhs Only)
₹ 2,16,00,000 (Rupees Two
Crores Sixteen Lakhs Only)

SEBI vide its order dated 30th Nov, 2015in exercise of the powers conferred under section 15HB
of the SEBI Act, 1992 imposed a monetary penalty of ₹35,00,000 (Rupees Thirty Five Lakh only)
on M/s. Kisan Ratilal Choksey Shares and Securities Pvt. Ltd. forviolating the provisions of SEBI
Circular no. MIRSD/SE/Cir/19/2009 dated December 03, 2009 and clauses A(2) and A(5) of
Code of Conduct for stock Brokers specified under Schedule II read with Regulation 7 of SEBI
(Stock Broker and Sub Broker) Regulations,1992.

SEBI vide its order dated 27th Nov. 2015 in exercise of the power conferred under section 15HA
of the SEBI Act, 1992 imposed a monetary penalty of₹ 16,00,000(Rupees Sixteen Lakh only) on
Shri Nagad Sarwar, and ₹ 5,00,000(Rupees Five Lakh only) on Shri Altaf Ahmed G Nagad, for
violation of Regulation 3 and Regulation 4(2) of SEBI (Prohibition of Fraudulent and Unfair
Trade Practices Relating to the Securities Market) Regulations, 2003 in the matter of M/s. Vamshi
Rubber Ltd.

SEBI vide its order dated 30th Nov, 2015 in exercise of the powers conferred under section 15H
(ii) of the SEBI Act, 1992 , imposed the following monetary penalties to be paid jointly and
severally on Dr. Sunil Gupta, Ms Rupal Gupta, Dr Sunil Gupta (HUF), M/s. Suncare Traders
Ltd., Mr. Sharad Gupta, Mr Mayur Parikh, Mr Ashok C Gandhi, M/s. Karan Holdings Pvt. Ltd.
74
and M/s. Anik Holdings Pvt. Ltd., for violating Regulation 11(1) read with Regulation 14(1) of the
SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997 in the matter of M/s.
Bloom Dekor Limited.
Acquisition / Period of Violation
Penalty (Rs.)
Acquisition of 3,25,000 shares (10.85%) on 24.04.1997
₹5,00,000/- (Rupees Five Lakh Only)
Acquisition of a total of 64,210 shares (2.14%) in 1997- ₹5,00,000/- (Rupees Five Lakh Only)
98
Acquisition of 2,29,800 shares (7.12%) in 1998
₹5,00,000/- (Rupees Five Lakh Only)
Acquisition of 4,07,700 (12.54%) shares in 12 months ₹5,00,000/- (Rupees Five Lakh Only)
from 21.12.1998
Total
Rs.20,00,000/-(Rupees Twenty
Lakh Only)

SEBI vide its order dated 27th Nov.2015 in exercise of the power conferred under section 15 A (b)
of the SEBI Act, 1992 imposed a monetary penalty of ₹15,00,000 (Rupees Fifteen Lakh only) on
the Noticee viz. M/s. United Breweries (Holding) Ltd. for violating regulation 31 (1), 31(2) read
with 31 (3) of the SAST (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 in
the matter of M/s. United Spirits Limited.

SEBI vide its order dated 30th November, 2015 in exercise of the powers conferred under Section
15I (2) of the SEBI Act, 1992 read with Rule 5 of the Adjudication Rules, imposed following
monetary penalties on Shri Sourabh H. Bora, Ms. Rakhi S Bora and Shri Sourabh H Bora in the
matter of M/s. Mahan Industries Limited:
Penalty Amount
Violation
₹ 2,50,000 (Rupees Two Lakh Fifty Under section 15A(b) of SEBI Act for violation
SEBI (Substantial
Thousand Only) to be paid jointly and of Regulation 7(1) of
Acquisition of Shares and Takeovers)
severally by the noticees
Regulations, 1997 read with Regulation 35 of
SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011.
₹2,00,000 (Rupees Two Lakh Only) to Under section 15A(a) of SEBI Act for violation
of section 11C(3) of SEBI Act, 1992.
be paid by each of the noticees
₹ 2,00,000 (Rupees Two Lakh Only) to Under section 15A(a) of SEBI Act for violation
of section 11C(5) of SEBI Act, 1992.
be paid by each of the noticees
75
Total

₹14,50,000 (Rs. Fourteen lakh Fifty Thousand
only)
SEBI vide its order dated 27th Nov. 2015 in exercise of the power conferred under Section 15A(b)
of the SEBI Act, 1992 imposed a monetary penalty of ₹4,00,000 (Rupees Four Lakh Only) on
Shri Arvind Kumar Sarafand 12 other noticeesfor violating the provisions of Regulation 13 (4)
read with 13 (5) of the Prohibition of Insider Trading (PIT) Regulations, 1992 in the matter of
M/s. Arcotech Limited.

SEBI vide its order dated 23rd Nov. 2015 in exercise of the power conferred under Section 15 I of
the SEBI Act read with Rule 5 of the Adjudication Rules 1995, imposed a monetary penalty of ₹
3,00,000( Rupees Three Lakh only ) on the Noticee M/s. Tricom Fruit Products Limited (formerly
known as M/s Rids Securities Ltd) for violation of the provisions of Section 15C of the SEBI Act,
1992 for failure to redress the three investor’s complaints pending against them in the SEBI
Complaints Redress System (SCORES)and submit the Action Taken Report (ATR) within the
stipulated time period prescribed by SEBI.

SEBI, vide its order dated 17th November, 2015 in exercise of the power conferred under Section
15 HB of the SEBI Act, 1992 imposed a penalty of ₹1,50,000 (Rupees One Lakh and Fifty
Thousand) only on M/s. Vinal Investments Limited for not obtaining SCORES authentication in
terms of the SEBI circular dated April 17, 2013 and not resolving investor grievances pending
against it.

SEBI, vide its order dated 4th November, 2015 in exercise of the powers conferred under section
19 of the SEBI Act, 1992 read with sections 11 and 11B issued the following directives in the
matter of M/s. En-Aromatic & Petro Chemicals Limited:
76
a. The Company M/s. En Aromatic & Petro Chemicals Limited and its five directors viz. Mr.
Kishan Pal Singh, Mr. Chhotelal Shukla, Mr.Vishwa Bandhu Vashistha, Mr. Deenanath
Maurya and Mr. Mukesh Kumar Khare jointly and severally, shall forthwith refund the money
collected by the Company through the issuance of Redeemable Cumulative Preference Shares
(which have been found to be issued in contravention of the public issue norms stipulated
under the Companies Act, 1956), to the investors including the money collected from
investors, till date, pending allotment of RCPS, if any, with an interest of 15% per annum
compounded at half yearly intervals, from the date when the repayments became due (in terms
of Section 73(2) of the Companies Act, 1956) to the investors till the date of actual payment.
b. The Company/ its present management is permitted to sell the assets of the Company only for
the sole purpose of making the refunds as directed above and deposit the proceeds in an
Escrow Account opened with a nationalised Bank.
c. The Company/ its present management are also directed to provide a full inventory of all their
assets and properties and details of all their bank accounts, demat accounts and holdings of
shares/ securities, if held in physical form.
d. The Company is directed not to, directly or indirectly, access the capital market by issuing
prospectus, offer document or advertisement soliciting money from the public and is further
restrained and prohibited from buying, selling or otherwise dealing in the securities market,
directly or indirectly in whatsoever manner, from the date of this Order till the expiry of four
years from the date of completion of refunds to investors, made to the satisfaction of SEBI, as
directed above.
e. The abovementioned five directors are restrained from accessing the securities market and are
further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly,
with immediate effect. They are also restrained from associating themselves with any listed
public company and any public company which intends to raise money from the public, with
immediate effect. This restraint shall continue to be in force for a further period of four years
on completion of the repayments, as directed above.

SEBI, vide its order dated 4th November, 2015 in exercise of the powers conferred under Section
19 of the SEBI Act, 1992 and Sections 11(1), 11B and 11(4) and Regulation 65 of the SEBI
(Collective Investment Schemes) Regulations, 1999, issued the following directives in the matter
of M/s. Servehit Housing and Infrastructure India Limited:
a. M/s. Servehit Housing and Infrastructure India Limited and its five directorsviz. Mr.
Sukhmander Singh, Mr.Rajender Kumar, Mr. Balbir Singh Saini, Mr. Satish Kumar and
Mr.Surjeet Kumar shall abstain from collecting any money from the investors or launch or
carry out any Collective Investment Schemes including the scheme which have been identified
as a Collective Investment Scheme in this Order.
b. M/s. Servehit Housing and Infrastructure India Limited and its three directors viz. Mr.
Sukhmander Singh, Mr. Balbir Singh Saini and Mr. Surjeet Kumar shall wind up the existing
Collective Investment Schemes and refund the money collected by the said company under
the schemes with returns which are due to its investors as per the terms of offer within a
period of three months from the date of this Order and thereafter within a period of fifteen
days, submit a winding up and repayment report to SEBI in accordance with the SEBI
(Collective Investment Schemes) Regulations, 1999, including the trail of funds claimed to be
refunded, bank account statements indicating refund to the investors and receipt from the
investors acknowledging such refunds.
77
c. M/s. Servehit Housing and Infrastructure India Limited and its abovementioned three
directors shall not alienate or dispose off or sell any of the assets of M/s. Servehit Housing
and Infrastructure India Limited except for the purpose of making refunds to its investors as
directed above.
d. M/s. Servehit Housing and Infrastructure India Limited and all its abovementioned five
directors are directed to provide a full inventory of all their assets and properties and details of
all their bank accounts, demat accounts and holdings of shares/ securities, if held in physical
form.
e. M/s. Servehit Housing and Infrastructure India Limited and its abovementioned five directors
are restrained from accessing the securities market and are prohibited from buying, selling or
otherwise dealing in securities market for a period of four years.

SEBI, vide its order dated 4th November, 2015 in exercise of the powers conferred under Section
19 of the SEBI Act, 1992 and Sections 11(1), 11B and 11(4) and Regulation 65 of the SEBI
(Collective Investment Schemes) Regulations, 1999, issued the following directives in the matter
of M/s. Dhanolty Developers Limited:
a. M/s. Dhanolty Developers Limited and its seven directors/ promoters viz. Mr. Sanjay Walia,
Mr. Siddharth Walia, Ms. Anita Malik, Ms. Raksha Kumari, Mr. Shiv Pratap Singh, Ms. Shefali
Walia and Mr. Pankaj Bakshi shall abstain from collecting any money from the investors or
launch or carry out any Collective Investment Schemes including the scheme which have been
identified as a Collective Investment Scheme in this Order.
b. M/s. Dhanolty Developers Limited and its abovementioned directors/promoters shall wind
up the existing Collective Investment Schemes and refund the money collected by the said
company under the schemes with returns which are due to its investors as per the terms of
offer within a period of three months from the date of this Order and thereafter within a
period of fifteen days, submit a winding up and repayment report to SEBI in accordance with
the SEBI (Collective Investment Schemes) Regulations, 1999, including the trail of funds
claimed to be refunded, bank account statements indicating refund to the investors and receipt
from the investors acknowledging such refunds.
c. M/s. Dhanolty Developers Limited and its abovementioned directors/promoters shall not
alienate or dispose off or sell any of the assets of M/s. Dhanolty Developers Limited except
for the purpose of making refunds to its investors as directed above.
d. M/s. Dhanolty Developers Limited and its abovementioned directors/ promoters are also
directed to provide a full inventory of all their assets and properties and details of all their
bank accounts, demat accounts and holdings of shares/ securities, if held in physical form.
e. M/s. Dhanolty Developers Limited and its abovementioned directors/ promoters are
restrained from accessing the securities market and are prohibited from buying, selling or
otherwise dealing in securities market for a period of four years.

SEBI, vide its order dated 6th November, 2015 in exercise of the powers conferred under Section
19 of the SEBI Act, 1992 read with Sections 11 and 11B and Regulation 65 of the SEBI
(Collective Investment Scheme) Regulation, 1999, issued the following directives in the matter of
M/s. Yatra Art Fund:
78
a. M/s. Yatra Art Fund shall abstain from collecting any money from the investors or launch or
carry out any Collective Investment Schemes including the scheme which have been identified
as a Collective Investment Scheme in this Order.
b. M/s. Yatra Art Fund is directed to refund the entire monies collected by it under its scheme to
all the investors alongwith the returns at the rate of 10% per annum, within a period of three
months from the date of this Order and thereafter, within a period of fifteen days, submit a
winding up and repayment report to SEBI in accordance with the SEBI (Collective
Investment Schemes) Regulations, 1999, including the trail of funds claimed to be refunded,
bank account statements indicating refund to the investors and receipt from the investors
acknowledging such refunds.
c. M/s. Yatra Art Fund is restrained from accessing the securities market and are prohibited
from buying, selling or otherwise dealing in securities market for a period of four years.
d. M/s. Yatra Art Fund is also directed to immediately submit the complete and detailed
inventory of the assets owned by it.

SEBI, vide its order dated 9th November, 2015 in exercise of the powers conferred under Section
19 of the SEBI Act, 1992 and Sections 11(1), 11(B) and 11(4) and Regulation 65 of the SEBI
(Collective Investment Schemes) Regulations, 1999 issued following directives in the matter of
M/s. Nicer Green Housing Developments Limited :
a. M/s. Nicer Green Housing Developments Limited and its four directors viz. Mr. Pipal Singh
Sidhu, Mr. Ranjit, Ms. Surinder Kaur and Mr. Karanjit Singh shall abstain from collecting any
money from the investors or launch or carry out any Collective Investment Schemes including
the scheme have been identified as a Collective Investment Scheme in this Order.
b. M/s. Nicer Green Housing Developments Limited and its abovementioned directors shall
wind up the existing Collective Investment Schemes and refund the money collected by the
said company under the schemes with returns which are due to its investors as per the terms
of offer within a period of three months from the date of this Order and thereafter within a
period of fifteen days, submit a winding up and repayment report to SEBI in accordance with
the SEBI (Collective Investment Schemes) Regulations, 1999, including the trail of funds
claimed to be refunded, bank account statements indicating refund to the investors and receipt
from the investors acknowledging such refunds.
c. M/s. Nicer Green Housing Developments Limited and its abovementioned directors shall not
alienate or dispose off or sell any of the assets of M/s. Nicer Green Housing Developments
Limited except for the purpose of making refunds to its investors as directed above.
d. M/s. Nicer Green Housing Developments Limited and its abovementioned directors are also
directed to provide a full inventory of all their assets and properties and details of all their
bank accounts, demat accounts and holdings of shares/ securities, if held in physical form.
e. M/s. Nicer Green Housing Developments Limited and its abovementioned directors are
restrained from accessing the securities market and are prohibited from buying, selling or
otherwise dealing in securities market, directly or indirectly, in any manner and launching any
scheme for mobilization of funds in any manner for a period of four years.

SEBI, vide its order dated 9th November, 2015 in exercise of the powers conferred under Section
19 of the SEBI Act, 1992 and Sections 11(1), 11(B) and 11(4) and Regulation 65 of the SEBI
79
(Collective Investment Schemes) Regulations, 1999 issued following directives in the matter of
M/s. Sunshine Global Agro Limited:
a. M/s. Sunshine Global Agro Limited and its eight directors viz. Mr.Lekh Narayan Chand, Mr.
Mokarram Mohammad, Mr. Mohammad Ahteshamul Haq, Mr. Anand Kumar Jha, Mr.Wasim
Kham, Mr.Ashif Kham, Mr. Mohammad Faisal and Mr. Bibeka Nand Mandal shall abstain
from collecting any money from the investors or launch or carry out any Collective
Investment Schemes including the scheme have been identified as a Collective Investment
Scheme in this Order.
b. M/s. Sunshine Global Agro Limited and its five directors viz. Mr. Lekh Narayan Chand, Mr.
Mokarram Mohammad, Mr. Mohammad Ahteshamul Haq, Mr. Mohammad Faisal and Mr.
Bibeka Nand Mandal shall wind up the existing Collective Investment Schemes and refund the
money collected by the said company under the schemes with returns which are due to its
investors as per the terms of offer within a period of three months from the date of this Order
and thereafter within a period of fifteen days, submit a winding up and repayment report to
SEBI in accordance with the SEBI (Collective Investment Schemes) Regulations, 1999,
including the trail of funds claimed to be refunded, bank account statements indicating refund
to the investors and receipt from the investors acknowledging such refunds.
c. M/s. Sunshine Global Agro Limited and its abovementioned five directors shall not alienate or
dispose off or sell any of the assets of M/s. Sunshine Global Agro Limited except for the
purpose of making refunds to its investors as directed above.
d. M/s. Sunshine Global Agro Limited and its abovementioned five directors and past directors
viz. Mr. Anand Kumar Jha, Mr. Wasim Khan and Mr. Ashif Khan are also directed to provide
a full inventory of all their assets and properties and details of all their bank accounts, demat
accounts and holdings of shares/ securities, if held in physical form.
e. M/s. Sunshine Global Agro Limited and its six directors viz. Mr. Lekh Narayan Chand, Mr.
Mokarram Mohammad, Mr. Mohammad Ahteshamul Haq, Mr. Anand Kumar Jha, Mr.Wasim
Kham and Mr. Ashif Kham are restrained from accessing the securities market and are
prohibited from buying, selling or otherwise dealing in securities market for a period of four
years.

SEBI, vide its order dated 9th November, 2015 in exercise of the powers conferred under Section
19 of the SEBI Act, 1992 and sections 11(1), 11(4), 11A and 11B read with regulations 107 of the
SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, issued following
directives in the matter of M/s. Aapna Pariwar Agro Farming Developers India Limited :
a. The Company M/s. Aapna Pariwar Agro Farming Developers India Limited and its three
directors viz. Mr. Rejaul Karim, Mr. Partha Gope Mazumder and Mr. Swaminath Singha are
restrained from mobilizing funds through the issue of equity shares or through the issuance of
equity shares or through any other form of securities, to the public and/ or invite subscription,
in any manner whatsoever, either directly or indirectly till further directions.
b. M/s. Aapna Pariwar Agro Farming Developers India Limited and its abovementioned
directors, are prohibited from issuing prospectus or any offer document or issue advertisement
for soliciting money from the public for the issue of securities, in any manner whatsoever,
either directly or indirectly, till further orders.
c. M/s. Aapna Pariwar Agro Farming Developers India Limited and its abovementioned
directors shall not dispose off any of the properties or alienate the assets of the Company or
dispose off any of their properties or alienate their assets.
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d. M/s. Aapna Pariwar Agro Farming Developers India Limited and its abovementioned
directors shall not divert any funds raised from public at large through the issuance of the
impugned equity shares, kept in its bank accounts and/or in the custody of the company
without prior permission of SEBI until further orders.
e. M/s. Aapna Pariwar Agro Farming Developers India Limited and its abovementioned
directors are restrained from accessing the securities market and are further prohibited from
buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or
indirectly, till further directions.
f. M/s. Aapna Pariwar Agro Farming Developers India Limited and its abovementioned
directors, shall co-operate with SEBI and shall furnish documents, as may be required.
g. M/s. Aapna Pariwar Agro Farming Developers India Limited and its abovementioned
directors, are also directed to provide a full inventory of all their assets and properties and
details of all their bank accounts, demat accounts and holdings of shares/securities, if held in
physical form.

SEBI, vide its order dated 9th November, 2015 in exercise of the powers conferred under Section
11(1), 11(4) and 11B read with section 19 of the SEBI Act, pending inquiry/investigation and
passing of final order in the matter of Radford Global Limited
restrained the following 15 persons from accessing the securities market and buying, selling or
dealing in securities, either directly or indirectly, in any manner, till further directions:
Sr. No.
Name
1
AnupManilal Shah (Huf)
2
Artiben S Kansara
3
BharatkumarJayantilal Shah
4
Dina Satishkumar Mehta
5
Hari Mohan Khandelwal
6
Hasumati Ghanshyam Mandlia
7
Kanaiyalal Manilal Gandhi
8
ManishaJayesh Shah
9
Mansukhbhai Jagabhai Tanti
10
Pragna Patel
11
Rajeev Garg
12
Ramila Gandhi
81
13
Rekhaben Lakhabhai Sagparia
14
Sunil Mohanlal Kansara
15
Veena Mohandas Valbhani

SEBI, vide its order dated 9th November, 2015 in exercise of the powers conferred under section
19 read with provisions of section 11(1), section 11(2) (j) of the SEBI Act, 1992 and sections 4, 5
and 12A of the Securities Contracts (Regulation) Act, 1956 direct the exit of Vadodara Stock
Exchange Limited as a stock exchange and also direct it to:a. comply with its tax obligations under the Income Tax Act, 1961;
b. comply with the undertakings given by it to SEBI;
c. comply with other consequential conditions of the Exit Circular;
d. change its name and in case, after exit as a stock exchange, it continues as a corporate entity
under the Companies Act, 2013, it shall not use the expression ‘stock exchange’ or any variant
in its name or in the name of its subsidiary so as to avoid any representation of present or past
affiliation with the stock exchange;
e. provide required information to the Ministry of Corporate Affairs on identifying any vanishing
company which was listed on Vadodara Stock Exchange Limited for inclusion in the list of
vanishing companies maintained by the Ministry of Corporate Affairs.

SEBI, vide its order dated 9th November, 2015 in exercise of the powers conferred under section
19 read with sections 11(1), 11(4), 11B and 11D of the SEBI Act, 1992, issued the following
directions in the matter of M/s. Blue Chip Corporation Pvt. Ltd:
a. The financial assets of M/s. Blue Chip Corporation Pvt. Ltd. and its seven directors viz.
Mr.Nitin Rajaram Narke, Mr.Pravin B. Darawade, Ms. Bhavana Chadha, M/s Milestone
Investment, M/s NitinNarke Investment, M/s Blue Cheap Investment and M/s Blue Chip
Investment are impounded till further directions. They are further directed not to dispose off
or alienate any of their assets, whether movable or immovable, or any interest or investment or
charge in any of such assets except for the purpose provided herein.
b. The banks and depositories are directed that no debits shall be made in their bank
accounts/demat accounts, held jointly or severally, except after confirmation from the
concerned stock exchange in this regard.
c. The concerned stock exchanges, depositories and the banks are directed to ensure that all the
above directions are strictly enforced.
d. The aforesaid entities are directed to provide the complete details of amounts collected from
investors and amount due to each of them.
e. The aforesaid entities are directed to provide a full inventory of all their assets whether
movable or immovable, or any interest or investment or charge in any of such assets, including
details of all their bank and demat accounts immediately but not later than seven working days
from the date of receipt of these directions.
f. The aforesaid entities are restrained from accessing the securities market and are further
prohibited from buying, selling or otherwise dealing in securities, either directly or indirectly,
or being associated with the securities market in any manner whatsoever, with immediate
effect, till further directions.
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g. The aforesaid entities shall cease and desist from undertaking any activity in the securities
market, directly or indirectly, in any manner whatsoever till further directions.
h. M/s. Blue Chip Corporation Pvt. Ltd and its abovementioned seven directors are prohibited
from mobilizing funds in any manner or pooling funds from public and from offering any
unregistered service, in whatever form.
i. The above mentioned seven directors are directed to immediately withdraw and remove all
advertisements, representations, literatures, brochures, materials, publications, documents,
websites, etc. and any unregistered activity in the securities market.
j. M/s. Blue Chip Corporation Pvt. Ltd. and its abovementioned seven directors are prohibited
from transferring the funds/deposits from their bank account, which were mobilised from the
clients or other investors or from disposing of or alienating any asset that has been created
from the funds/deposits received from their clients or other investors for purposes other than
refund as directed above.

SEBI, vide its order dated 10th November, 2015 in exercise of the powers conferred under
Sections 11, 11(4), 11A and 11B of the SEBI Act read with Section 19 of the SEBI Act read with
the SEBI Debt Securities Regulations and the SEBI Debenture Trustees Regulations, issued the
following directives in the matter of M/s. Vasundhara Realcon Limited:
a. M/s. Vasundhara Realcon Ltd. (VRL) shall cease to mobilize any fresh funds from investors
through the Offer of Non-convertible Secured Redeemable Debentures or through the
issuance of equity shares or any other securities, to the public and/or invite subscription, in
any manner whatsoever, either directly or indirectly till further directions;
b. M/s. VRL and its four directors, viz., Mr. Sandip Parui, Mr. Ashis Sarkar, Mr. Sahab Uddin
Khan and Mr. Gauranga Roy are prohibited from issuing prospectus or any offer document or
issue advertisement for soliciting money from the public for the issue of securities, in any
manner whatsoever, either directly or indirectly, till further orders.
c. M/s. VRL and its abovementioned directors, are restrained from accessing the securities
market and further prohibited from buying, selling or otherwise dealing in the securities
market, either directly or indirectly, till further directions.
d. M/s. VRL and its abovementioned directors shall provide a full inventory of all its assets and
properties.
e. M/s. VRL and its abovementioned directors shall not dispose off any of the properties or
alienate or encumber any of the assets owned/acquired by that company through the Offer of
NCDs, without prior permission from SEBI.
f. M/s.VRL and its abovementioned directors shall not divert any funds raised from public at
large through the Offer of NCDs, which are kept in bank account(s) and/or in the custody of
VRL.
g. M/s.VRL and its abovementioned directors shall furnish complete and relevant information in
respect of the Offer of NCDs (as sought by SEBI vide letter dated December 12, 2013),
within fourteen days from the date of receipt of this Order.
h. M/s. VRL shall provide to SEBI all information regarding repayments made to the holders of
Secured and Unsecured Redeemable Non-Convertible Debentures including name of the
83
debenture holder, address, amount mobilized, number of Secured Redeemable NonConvertible Debentures issued, promised maturity amount with date of maturity, amount
refunded and date thereof.
i.

The Debenture Trustee, viz. M/s. “Vasundhara Realcon Debenture Trust” represented by
trustees, Mr. Chinmoy Ghatak and Ms. Priyabrata Roy is prohibited from continuing with its
present assignment as a debenture trustee in respect of the Offer of NCDs of VRL and also
from taking up any new assignment or involvement in any new issue of debentures, etc. in a
similar capacity, from the date of this Order till further directions.
SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Bharat Krishi Samridhi Industries Ltd. (BKSIL):
i.
The past Director of M/s. BKSIL, viz. Shri Basir Uddin Khan is prohibited from issuing
prospectus or any offer document or issue advertisement for soliciting money from the
public for the issue of securities, in any manner whatsoever, either directly or indirectly, till
further orders;
ii. The abovementioned past Director of M/s. BKSIL is restrained from accessing the
securities market and further prohibited from buying, selling or otherwise dealing in the
securities market, either directly or indirectly, till further directions;
iii. The abovementioned past Director of M/s. BKSIL shall provide a full inventory of all his
assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Ravi Kiran Realty India Ltd. (RKRIL):
i.
The past Director of M/s. RKRIL, viz. Shri Animesh Chowdhury is prohibited from
issuing prospectus or any offer document or issue advertisement for soliciting money from
the public for the issue of securities, in any manner whatsoever, either directly or
indirectly, till further orders;
ii. The abovementioned past Director of M/s. RKRIL is restrained from accessing the
securities market and further prohibited from buying, selling or otherwise dealing in the
securities market, either directly or indirectly, till further directions;
iii. The abovementioned past Director of M/s. RKRIL shall provide a full inventory of all his
assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Rising Agrotech Ltd. (RAL):
84
i.
The past Director of M/s. RAL, viz. Ms. Lina Kayal is prohibited from issuing prospectus
or any offer document or issue advertisement for soliciting money from the public for the
issue of securities, in any manner whatsoever, either directly or indirectly, till further
orders;
ii. The abovementioned past Director of M/s. RAL is restrained from accessing the securities
market and further prohibited from buying, selling or otherwise dealing in the securities
market, either directly or indirectly, till further directions;
iii. The abovementioned past Director of M/s. RAL shall provide a full inventory of all his
assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Sunplant Forging Limited (SFL):
i.
The past Director of M/s. (SFL), viz. Shri Ameet Singh is prohibited from issuing
prospectus or any offer document or issue advertisement for soliciting money from the
public for the issue of securities, in any manner whatsoever, either directly or indirectly, till
further orders;
ii. The abovementioned past Director of M/s. SFL is restrained from accessing the securities
market and further prohibited from buying, selling or otherwise dealing in the securities
market, either directly or indirectly, till further directions;
iii. The abovementioned past Director of M/s. SFL shall provide a full inventory of all his
assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Falkon Industries India Limited (FIIL):
i.
The past Director of M/s. FIIL, viz. Shri Akmal Sekh is prohibited from issuing
prospectus or any offer document or issue advertisement for soliciting money from the
public for the issue of securities, in any manner whatsoever, either directly or indirectly, till
further orders;
ii. The abovementioned past Director of M/s. FIIL is restrained from accessing the securities
market and further prohibited from buying, selling or otherwise dealing in the securities
market, either directly or indirectly, till further directions;
iii. The abovementioned past Director of M/s. FIIL shall provide a full inventory of all his
assets and properties.
85

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Magnox Infra project Ltd.(MIL):
i.
The past six Directors of M/s. MIL, viz. Shri Manoj Kumar Pradhan, Shri Bhimsen Soren,
Shri Rasmiranjan Swain, Shri Jyotiranjan Panda, Shri Anil Kumar Senapati and Shri Amrit
Bhunia are prohibited from issuing prospectus or any offer document or issue
advertisement for soliciting money from the public for the issue of securities, in any
manner whatsoever, either directly or indirectly, till further orders;
ii. The abovementioned past Directors of M/s. MIL are restrained from accessing the
securities market and further prohibited from buying, selling or otherwise dealing in the
securities market, either directly or indirectly, till further directions;
iii. The abovementioned past Directors of M/s. MIL shall provide a full inventory of all their
assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Managlam Agro Product Limited (MAPL):
i.
The past three Directors of M/s. MAPL, viz. Smt. Runa Mazumder, Smt. Nabanita Sikder
and Smt. Runa Sikder are prohibited from issuing prospectus or any offer document or
issue advertisement for soliciting money from the public for the issue of securities, in any
manner whatsoever, either directly or indirectly, till further orders;
ii. The abovementioned past Directors of M/s. MAPL are restrained from accessing the
securities market and further prohibited from buying, selling or otherwise dealing in the
securities market, either directly or indirectly, till further directions;
iii. The abovementioned past Directors of M/s. MAPL shall provide a full inventory of all
their assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
MBK Business Development (India) Limited (MBK) :
i.
The past three Directors of M/s. MBK, viz. Shri Saikat Brahmachari, Shri Tanmoy Kundu
and Shri Sadhan Chandra Brahmachari are prohibited from issuing prospectus or any offer
document or issue advertisement for soliciting money from the public for the issue of
securities, in any manner whatsoever, either directly or indirectly, till further orders;
ii. The abovementioned past Directors of M/s. MBK are restrained from accessing the
securities market and further prohibited from buying, selling or otherwise dealing in the
securities market, either directly or indirectly, till further directions;
86
iii. The abovementioned past Directors of M/s. MBK shall provide a full inventory of all
their assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Sun Plant Business Limited (SBL) :
i.
The past two Directors of M/s. SBL, viz. Shri Girija Shankar Kumar and Shri Awdhesh
Kumar Singh are prohibited from issuing prospectus or any offer document or issue
advertisement for soliciting money from the public for the issue of securities, in any
manner whatsoever, either directly or indirectly, till further orders;
ii. The abovementioned past Directors of M/s. SBL are restrained from accessing the
securities market and further prohibited from buying, selling or otherwise dealing in the
securities market, either directly or indirectly, till further directions;
iii. The abovementioned past Directors of M/s. SBL shall provide a full inventory of all their
assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Sun Plant Construction Limited (SCL) :
i.
The past three Directors of M/s. SCL, viz. Shri Yoganand Prasad, Shri Ameet Singh and
Shri Girija Shankar Kumar are prohibited from issuing prospectus or any offer document
or issue advertisement for soliciting money from the public for the issue of securities, in
any manner whatsoever, either directly or indirectly, till further orders;
ii. The abovementioned past Directors of M/s. SCL are restrained from accessing the
securities market and further prohibited from buying, selling or otherwise dealing in the
securities market, either directly or indirectly, till further directions;
iii. The abovementioned past Directors of M/s. SCL shall provide a full inventory of all their
assets and properties.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act, 1992 issued the following directives in the matter of M/s.
Kerala Housing Finance Ltd. (KHFL):
i.
M/s. KHFL shall forthwith cease to mobilize fresh funds from investors through the
Offer of NCDs or through the issuance of equity shares or any other securities, to the
public and/or invite subscription, in any manner whatsoever, either directly or indirectly
till further directions;
87
ii. M/s. KHFL and its ten Directors/Promoters, viz. Shri G. Unnikrishnan Nair, Shri N.
Krishnan Nair, Smt. Komala Unnikrishnan, Shri G. Sureshkumar, Shri P. Parameshwaran,
Shri B. Ajithkumar, Shri Shajan P. G., Shri R. Sukumaran, Shri S. Sureshkumar and Adv. B
Manmadhan, are prohibited from issuing prospectus or any offer document or issue
advertisement for soliciting money from the public for the issue of securities, in any
manner whatsoever, either directly or indirectly, till further orders;
iii. M/s. KHFL and its abovementioned Directors/Promoters, are restrained from accessing
the securities market and further prohibited from buying, selling or otherwise dealing in
the securities market, either directly or indirectly, till further directions;
iv. M/s. KHFL shall provide a full inventory of all its assets and properties;
v. M/s. KHFL's abovementioned Directors/Promoters shall provide a full inventory of all
their assets and properties;
vi. M/s. KHFL and its abovementioned Directors/Promoters shall not dispose off any of the
properties or alienate or encumber any of the assets owned/acquired by that company
through the Offer of NCDs, without prior permission from SEBI;
vii. M/s. KHFL and its abovementioned Directors/Promoters shall not divert any funds
raised from public at large through the Offer of NCDs, which are kept in bank account(s)
and/or in the custody of KHFL;
viii. The Debenture Trustees, viz. Shri K Jayaprasad, Adv. Shri K Radhakrishnan, Shri Jose
Philip, Shri V Ayyappan Nair and M/s Bittu Abraham & Associates, are prohibited from
continuing with their assignment as debenture trustee in respect of the Offer of NCDs of
M/s. KHFL and also from taking up any new assignment or involvement in any new issue
of debentures, etc. in a similar capacity, from the date of this Order till further directions.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under section 19 of
the SEBI Act, 1992 and sections 11(1), 11(4) and 11Band regulation 65 of the SEBI (Collective
Investment Schemes) Regulations, 1999, issued the following directives in the matter of M/s. JSR
Diaries Limited:
i.
M/s. JSR Dairies Limited and its five Directors (past and present), viz. Mr. Rajesh Khera,
Mr. Rajesh Niranjan, Mr.Lalit Kumar Arora, Mr.Parveen Kumar andMr. Om Parkash
Khurana shall abstain from collecting any money from the investors or launch or carry out
any Collective Investment Schemes including the schemes which have been identified as a
Collective Investment Scheme in this order.
ii. M/s. JSR Dairies Limited and its three Directors viz.Mr. Rajesh Niranjan, Mr.Lalit Kumar
Arora and Mr. Om Parkash Khurana shall wind up the existing Collective Investment
Schemes and refund the money collected by the said company under the schemes with
returns which are due to its investors as per the terms of offer within a period of three
88
months from the date of this order and thereafter within a period of fifteen days, submit a
winding up and repayment report to SEBI in accordance with the SEBI (Collective
Investment Schemes) Regulations, 1999, including the trail of funds claimed to be
refunded, bank account statements indicating refund to the investors and receipt from the
investors acknowledging such refunds.
iii. M/s. JSR Dairies Limited and its abovementioned three Directors shall not alienate or
dispose off or sell any of the assets of the aforesaid company except for the purpose of
making refunds to its investors, as directed above.
iv. M/s. JSR Dairies Limited and its abovementioned five Directors (past and present) are
directed to immediately submit the complete and detailed inventory of all their assets and
properties and details of all their bank accounts, demat accounts and holdings of
shares/securities, if held in physical form.
v. M/s. JSR Dairies Limited and its four Directors (past and present) viz. Mr. Rajesh Khera,
Mr. Rajesh Niranjan, Mr. Lalit Kumar Arora and Mr. Parveen Kumar are restrained from
accessing the securities market and are prohibited from buying, selling or otherwise dealing
in securities market for a period of four years.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act read with Section 19 issued the following directives in the
matter of M/s. United Cosmetic Manufacturing (I) Ltd. (UCM(I)L and its directors:
i.
M/s. UCM(I)L shall not mobilize any fresh funds from investors through the Offer of
Redeemable Preference Shares or through the issuance of equity shares or any other
securities, to the public and/or invite subscription, in any manner whatsoever, either
directly or indirectly till further directions;
ii. M/s. UCM (I)L and its seven directors, viz. Mr. Samir Chattopadhyay Kumar, Mr.
NirapadaMaiti, Mr. AmalPatra, Mr. Kartik Jana, Mr. Balwant Kumar Singh, Ms. Debashree
Bhowmik and Mr. Rajib Bhattacharya are prohibited from issuing prospectus or any offer
document or issue advertisement for soliciting money from the public for the issue of
securities, in any manner whatsoever, either directly or indirectly, till further orders;
iii. M/s. UCM(I)L and its abovementioned Directors, are restrained from accessing the
securities market and further prohibited from buying, selling or otherwise dealing in the
securities market, either directly or indirectly, till further directions;
iv. M/s. UCM(I)L shall provide a full inventory of all its assets and properties;
v. M/s. UCM(I)L 's abovementioned Directors shall provide a full inventory of all their
assets and properties;
89
vi. M/s. UCM(I)L and its abovementioned Directors shall not dispose off any of the
properties or alienate or encumber any of the assets owned/acquired by that company
through the Offer of Redeemable Preference Shares, without prior permission from SEBI;
vii. M/s. UCM (I)L and its abovementioned Directors shall not divert any funds raised from
public at large through the Offer of Redeemable Preference Shares, which are kept in bank
account(s) and/or in the custody of M/s. UCM(I)L.
viii. M/s. UCM(I)L and its abovementioned Directors shall furnish complete and relevant
information in respect of the Offer of Redeemable Preference Shares (as sought by SEBI
letter dated December 17, 2014), within fourteen days from the date of receipt of this
order.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under section 19 of
the SEBI Act, 1992 read with sections 11 and 11B restrained and prohibited M/s. Stellar Drug
Limited from accessing the securities market and from buying, selling or dealing in securities,
directly or indirectly, in whatsoever manner, till it obtains SCORES authentication in terms of the
SEBI circular dated August 13, 2012 and resolves all the investor grievances pending against it.
The aforesaid direction is without prejudice to any other action that may be taken against the
company and its directors in accordance with law.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under section 19 of
the SEBI Act, 1992 read with sections 11 and 11B restrained and prohibited M/s. Pinky
Chemicals Limited from accessing the securities market and from buying, selling or dealing in
securities, directly or indirectly, in whatsoever manner, till it obtains SCORES authentication in
terms of the SEBI circular dated August 13, 2012 and resolves all the investor grievances pending
against it. The aforesaid direction is without prejudice to any other action that may be taken
against the company and its directors in accordance with law.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11(1),
11(4), 11A and 11B of the SEBI Act, 1992 read with Section 19 and Regulation 107 read with
Regulation 111 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009,
issued the following directives in the matter of M/s. Hellos Corporation Limited and M/s. Hellos
Chemical Limited:
i.
The Companies M/s. Helios Corporation Limited and M/s. Helios Chemical Limited are
restrained from mobilizing funds through the issue of optionally convertible debentures
(Sun Bonds) or through any other form of securities, to the public and/ or invite
subscription, in any manner whatsoever, either directly or indirectly till further directions.
ii. The Companies and their respective promoters/ directors/ past directors viz. Mr. Sanjay
Kumar Singh, Mr. Rajeev Kumar Sharma, Mr. Kaushal Kishor Singh, Mr. Basant Kumar
Singh, Mr. Sanjeet Kumar Sharma, Mr.Anjani Kumar, Mr. Virendra Prasad Sinha, Mr.
Govind Madhava Jha, Mr. Satyendra Singh, Ms.Prema Kumari, Mr. Devendra Prasad
Singh, Mr. Rakesh Kumar, Ms. Manju Pathak, Mr. Surendra Nath Singh and Ms. Krishna
90
Devi are prohibited from issuing prospectus or any offer document or issue advertisement
for soliciting money from the public for the issue of securities, in any manner whatsoever,
either directly or indirectly, till further orders.
iii. The Companies and their respective promoters and directors/ past directors are
prohibited from issuing prospectus or any offer document or issue advertisement for
soliciting money from the public for the issue of securities, in any manner whatsoever,
either directly or indirectly, till further orders.
iv. The Companies and their respective promoters and directors/ past directors shall not
dispose off any of the properties or alienate the assets of the Company or dispose off any
of their properties or alienate their assets.
v. The Companies and their respective promoters and directors/ past directors shall not
divert any funds raised from public at large through the issuance of the impugned equity
shares, kept in its bank accounts and/ or in the custody of the Company without prior
permission of SEBI until further orders.
vi. The Companies and their respective promoters and directors/ past directors are restrained
from accessing the securities market and are further prohibited from buying, selling or
otherwise dealing in securities in any manner whatsoever, either directly or indirectly, till
further directions.
vii. The Company and their respective promoters and directors/ past directors shall cooperate
with SEBI and shall furnish all the documents that they have been or shall be required to
furnish.
viii. The Companies and their respective promoters and directors/ past directors are also
directed to provide a full inventory of all their assets and properties and details of all their
bank accounts, demat accounts and holdings of shares/ securities, if held in physical form.

SEBI vide its order dated 20th Nov. 2015 in exercise of the powers conferred under Sections 11,
11(4), 11A and 11B of the SEBI Act read with Section 19 issued the following directives in the
matter of M/s. Suncity Infracon Corporation India Limited:
i.
M/s. SICIL shall not mobilize any fresh funds from investors through the Offer of
Redeemable Preference Shares or through the issuance of equity shares or any other
securities, to the public and/or invite subscription, in any manner whatsoever, either
directly or indirectly till further directions;
ii. M/s. SICIL and its present three Directors, viz. Shri Subrata Das, Shri Apu Saha and Shri
Prashanta Das are prohibited from issuing prospectus or any offer document or issue
advertisement for soliciting money from the public for the issue of securities, in any
manner whatsoever, either directly or indirectly, till further orders;
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iii. The past Directors of M/s. SICIL, viz. Shri Abhijit Dhar, Shri Sajal Bhowmick and Shri
Rajesh Kumar Das are prohibited from issuing prospectus or any offer document or issue
advertisement for soliciting money from the public for the issue of securities, in any
manner whatsoever, either directly or indirectly, till further orders;
iv. M/s. SICIL and its abovementioned past and present Directors, are restrained from
accessing the securities market and further prohibited from buying, selling or otherwise
dealing in the securities market, either directly or indirectly, till further directions;
v. M/s. SICIL shall provide a full inventory of all its assets and properties;
vi. M/s. SICIL's abovementioned past and present Directors shall provide a full inventory of
all their assets and properties;
vii. M/s. SICIL and its abovementioned present Directors shall not dispose off any of the
properties or alienate or encumber any of the assets owned/acquired by that company
through the Offer of Redeemable Preference Shares, without prior permission from SEBI;
viii. M/s. SICIL and its abovementioned present Directors shall not divert any funds raised
from public at large through the Offer of Redeemable Preference Shares, which are kept in
bank account(s) and/or in the custody of M/s. SICIL;
M/s. SICIL and its abovementioned Directors shall furnish complete and relevant
information in respect of the Offer of Redeemable Preference Shares (as sought by SEBI
letters dated June 13, 2014 and July 2, 2014), within fourteen days from the date of receipt
of this Order.
ix.

SEBI vide its order dated 20th Nov. 2015, in exercise of the powers conferred under section 19
read with sections 11(1), 11(4)(d) and 11B of the SEBI Act, 1992, ordered to impound the alleged
unlawful gains of a sum of ₹ 10,41,005 (alleged gain of ₹ 6,01,937 + interest of ₹ 4,39,068 from
10/09/2009 to 10/11/2015), jointly and severally from the noticees viz. Mr. Amit Jaiswal and Ms.
Mansi in the matter of M/s. Jagran Prakashan Limited:
i.
The Banks and Depositories are directed that no debits shall be made, without permission
of SEBI, in respect of the bank accounts and demat accounts, held jointly or severally, by
all the persons/entities indicated above. The Banks and the Depositories are directed to
ensure that all the above directions are strictly enforced. However, credits, if any, into the
accounts maybe allowed.
ii. The above persons/entities are also directed not to dispose off or alienate any of their
assets/properties/securities, till such time the amounts mentioned above are credited to an
escrow account {“Escrow Account in Compliance with SEBI Order dated November 20,
2015 – A/c (in the name of the respective persons/entities)”} created specifically for the
purpose in a Nationalized Bank. The escrow account/s shall create a lien in favour of
SEBI and the monies kept therein shall not be released without permission from SEBI.
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On production of proof by any of the persons, mentioned above, that the said money is
deposited in the escrow account, SEBI shall communicate to the Banks and Depositories
to defreeze the accounts.
iii. Further, the above persons/entities are directed to provide, within seven days of this
order, a full inventory of all their assets and properties and details of all their bank
accounts, demat accounts and holdings of shares/securities, if held in physical form and
details of companies in which they hold substantial or controlling interest.

SEBI vide its order dated 23rd Nov. 2015 in exercise of the powers conferred under section 19 of
the SEBI Act read with sections 11 and 11B restrained and prohibited M/s. Alexcon Foamcast
Limited from accessing the securities market and from buying, selling or dealing in securities,
directly or indirectly, in whatsoever manner, till it obtains SCORES authentication in terms of the
SEBI circular dated August 13, 2012 and resolves all the investor grievances pending against it.

SEBI vide its order dated 24th Nov.2015 in exercise of the powers conferred under Section 19 read
with Sections 11(1), 11(4)(d) and 11(B) of the SEBI Act, 1992, ordered to impound the alleged
unlawful gains of ₹1,84,68,558 [i.e. alleged gain of ₹98,11,689 + interest of ₹86,56,869 (from July
18, 2008 to November 24, 2015)] made by noticees Mr. Arun Jain and ₹19,69,471 [i.e. alleged gain
of ₹10,46,312 + interest of ₹9,23,159 (from July 18, 2008 to November 24, 2015)] made by Mr. R.
Srikanth in the matter of M/s. Polaris Software Lab Limited;

i.
The Banks and Depositories are directed that no debits shall be made, without permission
of SEBI, in respect of the bank accounts and demat accounts, held jointly or severally, by
the abovementioned persons/ entities. The Banks andthe Depositories are directed to
ensure that all the above directions are strictly enforced. However, credits, if any, into the
accounts may be allowed.
ii.
The abovementioned persons/ entities are also directed not to dispose off or alienate any
of their assets/ properties/ securities, till such time the amounts mentioned above are
credited to an escrow account [‘Escrow Account in Compliance with SEBI Order dated
November 24, 2015 – A/c (in the name of the respective persons/ entities)’] created
specifically for the purpose in a Nationalized Bank. The escrow account/s shall create a
lien in favour of SEBI and the monies kept therein shall not be released without
permission from SEBI. On production of proof by any of the persons, the said money is
deposited in the escrow account, SEBI shall communicate to the Banks and Depositories
to defreeze the accounts.
iii.
Further, the abovementioned persons/ entities are directed to provide, within seven days
of this order, a full inventory of all their assets and properties and details of all their bank
accounts, demat accounts and holdings of shares/securities, if held in physical form and
details of companies in which they hold substantial or controlling interest.
SEBI vide its order dated 30th Nov. 2015 in exercise of the powers conferred under Section 19 of
the SEBI Act, 1992 and Sections 11(1), 11B and 11(4) Regulation 65 of the SEBI (Collective
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Investment Schemes) Regulations, 1999, issued the following directives in the matter of M/s.
Karmbhoomi Real Estate Limited:
a. M/s. Karmbhoomi Real Estate Limited and its present and past directors viz. Mr.
Sardar Singh, Mr. Manoj Kumar Sengar, Mr. Mahipal Singh, Mr. Devendra Pal
Singh and Mr. Nirmal Kumar Singh shall abstain from collecting any money from
the investors or launch or carry out any Collective Investment Schemes including
the schemes which have been identified as a Collective Investment Schemes in this
Order.
b. M/s. Karmbhoomi Real Estate Limited and its present directors viz. Mr. Sardar
Singh, Mr. Manoj Kumar Sengar and Mr. Mahipal Singh shall wind up the existing
Collective Investment Schemes and refund the money collected by the said
company under the schemes with returns which are due to its investors as per the
terms of offer within a period of three months from the date of this order and
thereafter within a period of fifteen days, submit a winding up and repayment
report to SEBI in accordance with the SEBI (Collective Investment Schemes)
Regulations, 1999, including the trail of funds claimed to be refunded, bank
account statements indicating refund to the investors and receipt from the
investors acknowledging such refunds.
c. M/s. Karmbhoomi Real Estate Limited, its promoters and present directors, Mr.
Sardar Singh, Mr. Manoj Kumar Sengar and Mr. Mahipal Singh shall not alienate or
dispose off or sell any of the assets of the Company except for the purpose of
making refunds to its investors as directed above.
d. M/s. Karmbhoomi Real Estate Limited and its abovementioned present and past
directors are also directed to provide a full inventory of all their assets and
properties and details of all their bank accounts, demat accounts and holdings of
shares/securities, if held in physical form.
e. M/s. Karmbhoomi Real Estate Limited and its abovementioned present and past
directors are restrained from accessing the securities market and are prohibited
from buying, selling or otherwise dealing in securities market for a period of four
years.
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