Sebi may reconsider stand on self trade

 

Securities and Exchange Board of India is likely to review its decision of penalising brokers for 'self trades'. Sebi has called for a meeting of stock brokers and legal heads of stock exchanges on October 26 to discuss the matter.

Orders that match with each other with no resultant change in ownership are called self trades. Such trades have been reported in large numbers in the currency derivative segment.

Last year, Sebi issued notices to several brokers for execution of self trades and even launched proceedings to penalise them on the grounds that such transactions were manipulative.
 

Members of Parliament Hemant Tukaram Godse and Gajendra Singh Shekhawat had questioned Sebi's selective action against brokers for executing self trades. A letter written by Godse highlighted that 224 brokers on BSE and 319 brokers on NSE, including foreign players, escaped the scrutiny of the market regulator despite having executed many self trades in a single day. Sebi's action was even challenged in the Bombay HC by a Mumbai broker who was fined Rs 25 lakh for self trades.

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By: Unknown On 10:50 AM

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Axis Bank cuts lending rate by 0.05% across tenors

Private sector Axis Bank has cut the marginal cost of fund based lending rate by 0.05 percent across all tenors, effective tomorrow (Tuesday).

"The bank has decided to reduce the MCLRs (marginal cost lending rate) of the bank by 5 basis points across all tenors. This will be effective from October 18, 2016," the bank said in a regulatory filing.

For six-month period, the new MCLR will be 9.15 percent, one year at 9.2 percent, for two years it will be 9.3 percent and that for a tenor of three years it is fixed at 9.35 percent.

The overnight MCLR will be 8.8 percent.The new loans will be priced at these internal benchmark MCLRs, it added.

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By: Unknown On 10:44 AM

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SBI aims to Maintain Margin, Complete Merger process by FY17-end

State Bank of India (SBI), which saw a sharp decline in its slippages in the first quarter, is expecting strong growth in advances to counter pressure on margins. “Margin depression due to bad loan creation will hopefully reduce,” says SBI’s Chairman Arundhati Bhattacharya. Pressure will also reduce as deposit rates come down along with cost of funds.

The country’s largest public sector lender reported a 31.7 percent dip in net profit to Rs 2,520.96 crore while the net interest income rose 4.2 percent to Rs 14,312.31 crore in Q1. Inflation, which was higher in July on back of higher food inflation, is expected to ease a little in August.

However, liquidity continues to be good, she says, adding, the Reserve Bank should come close to achieving its 5-percent inflation target for January-March 2017. Pay hikes as well as festival season could lead to improvement in loan growth for the bank. Bhattacharya also reiterated the slippages guidance of Rs 40,000 crore for FY17.

“We are fully in control,” she says, adding, most of the big accounts have already been classified by SBI. Speaking on merger with its associate banks, Bhattacharya says the plan is to complete the exercise by end of current fiscal. The benefits of this, however, will be seen over next two years.

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By: Unknown On 11:05 AM

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