SPACs are coming to D-Street soon. Sebi readies rules
Mutual fund SIP flows hit a record high in May
First India-related SPAC raises $170 million in US IPO
Sebi slaps fines on Templeton top brass over closure of 6 debt funds
Now lemme give you a quick glance on the state of the markets.
Dalal Street looked indecisive this morning, as Nifty futures on the Singapore Exchange traded flat ahead of the opening of Indian markets. Stocks in other Asian markets pushed higher after their US peers closed at a record and a bond rally stalled ahead of a key Fed meeting. Gains in technology shares pushed the S&P500 up 0.2% to an all-time high overnight. Still, three stocks fell for every one that rose.
Elsewhere, the 10-year US Treasury yield was steady under 1.5% after rising on Monday. The dollar was flat. Bitcoin continued to gyrate amid a barrage of comments, briefly climbing above $41,000 only to pull back. Crude oil edged back above $71 a barrel on optimism that economic reopenings will boost summer demand in the US and Europe.
That said, here’s what is making news.
SPACs are coming to Dalal Street soon. Capital market regulator Sebi plans to build a dedicated framework on Special Purpose Acquisition Companies to allow such ‘non-operational’ entities to also raise funds in initial share sales and list locally. At present, Sebi allows listing of only ‘operating’ companies. To allow SPACs in India, Sebi has to either introduce a separate law or amend current regulations to allow listing of ‘non-operating’ or ‘investment’ companies, industry officials said.
SIP flows into mutual funds have hit a record high. The assets under management of funds linked to the systematic investment plans reached a record Rs 4.7 lakh crore at the end of May 2021 following a consistent inflow and capital appreciation amid a sustained stock market rally. Equity fund SIPs have delivered 26-56% returns over the past year, resulting in an expansion of 1.7 times in their aggregate AUM during the period.
Private equity veteran Rohan Ajila and Manipal Technologies chairman Gautham Pai’s consumer sector focused SPAC has raised $170 million in an IPO in the US. This probably marks the first fund raise by an India-related SPAC. The SPAC, called Global Consumer Acquisition Corp, is listed on Nasdaq. SPACs, also known as blank-cheque companies, are shell companies that launch IPOs with a promise to invest in or acquire a company within a set timeline – normally 18 to 24 months.
Sebi on Monday imposed a total fine of Rs 15 crore on several Franklin Templeton Mutual Fund officials, including its head Sanjay Sapre and CIO Santosh Kamat, along with a trustee and five fund managers for violating regulatory nor ms. Sebi said although the six funds were sold as having different investment strategies, they were actually managed almost with a similar high-risk investment approach. The fines relate to FTMF’s six debt schemes, which are under a winding-up process since April 2020.
Lastly, retail inflation jumped to a six-month high in May on the back of pricey food and fuel, while wholesale inflation during the month hit a fresh high of 12.9%, signalling the strengthening of price pressures in an economy battling to get growth back against the backdrop of a second Covid-19 surge. Data released by the National Statistical Office on Monday showed inflation as measured by the consumer price index rose to 6.3% in May, higher than the 4.2% recorded in April.
Now before I go, here is a look at some of the stocks buzzing this morning.
Indian Overseas Bank has requested RBI to lift business curbs on its operations after the lender’s annual return on assets turned positive for the first time since 2014.
Arcil, the country’s oldest bad loan aggregator, has slid into a loss for the first time in its history, highlighting the challenges in recoveries even as a state-backed National ARC takes shape.
The Yes Bank management and other executives on Tuesday relocated to the bank’s new headquarters at Santa Cruz in suburban Mumbai, which earlier housed Anil Dhirubhai Ambani Group’s headquarters.
NHAI plans to increase the size of its proposed infrastructure investment trust (InvIT) and is expected to raise as much as Rs 15,000 crore in two rounds.
ONGC Videsh is in the process of raising $525 million in foreign currency loans from a mix of domestic and foreign lenders to repay bonds maturing next month.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay put with us for all the market news through the day. Happy investing!
