Tuesday, 24 March 2015

23-mar


SEBI measures to deepen markets

1)      To deepen markets and help raise funds for business and infrastructure projects, the Securities and Exchange Board of India (SEBI) announced a slew of measures including listing of municipal bonds and setting up of a global financial hub within India on the lines of Singapore and Dubai..

2)      It  made it easier for banks to acquire control in distressed listed companies, by converting their debt into equity.

3)      It tightened the noose on entities indulging in market manipulation and insider trading by selective leak of information at the cost of investors.

4)      The market regulator announced a road map for the new fiscal with regard to new norms to help young entrepreneurs raise funds through listing of startups and crowd-sourcing.

5)      Adopting latest technologies, the SEBI  would tap social media in a big way to reach out to the investors and make it easier for them through measures like e-IPO and Aadhar-based e-KYC initiatives.

6)      The SEBI also pitched for allowing pension money into capital markets and creating an enabling environment for REITs (Real Estate Investment Trusts) to flourish.

7)      To safeguard interest of investors, listed companies would need to disclose their board decisions within 30 minutes, while all other ‘material information’ would need to be made public within 24 hours, failing which they would face strict penal action.

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India's re-worked growth numbers

1)      A new methodology, unveiled toward the end of January by the CSO, presented a rosier picture of the Indian economy than previously imagined.

2)      It indicated a growth in GDP of 6.9 per cent in 2013-14 from the 4.7 per cent estimated earlier.

3)      A lot has changed from the old framework :

                                I.            One change made relates to the base year, on which comparisons are made. Now the base year is 2011-12 where as previously, the GDP was computed on 2004-05 base year.

                              II.            There is now an attempt to capture value addition, rather than growth through volumes, in the calculation of the Gross Domestic Product (GDP).

                            III.            Data from newer, more sophisticated corporate databases have been used.

                            IV.            GDP will be measured at market prices, by adding taxes to and reducing subsidies from what used to be the main measure till now, GDP at factor cost.

4)      All these changes are important for Indian metrics to match international ones.

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