Regulatory eye on NBFC financing of HNIs’ IPO appetite
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Synopsis
Top 10 finance cos raised Rs 1.8 lakh cr via CPs in last 6 months; RBI proposes funding cap to remove arbitrage, reduce systemic risks.
NBFCs have been funding high net worth individuals through short-term lending, sometimes for just five-seven days.
MUMBAI: Regulators are keeping a close eye on the deluge of shadow bank lending to individuals looking to take advantage of the boom market in initial public offers (IPOs), mindful of potential systemic risks, said people with the knowledge of the matter. RBI’s draft paper on the proposed regulatory framework for nonbanking finance companies (NBFCs) released last Friday suggested a funding cap of Rs 1 crore per individual for a shadow bank. Banks can lend Rs 10 lakh per person for IPO financing.
ETMarkets Morning Podcast (ET Online) India likely to see $700-$900 mn inflows from FTSE rejig
06:10 Min | December 18, 2020, 9:17 AM IST
Here s a head up to some of the news we are tracking at this hour. Tune in!
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Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Nandini Sanyal, and here is what we have to start your day. US tells RBI to slow down dollar purchase Select stocks await bonanza from FTSE rejig Oaktree threatens to sue DHFL creditors
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And there is more. But first, a quick glance at the state of the markets.
Synopsis
Nifty50 climbed for the fifth session on Thursday and closed above the 13,700 mark, a day after breaking out of a crucial resistance level.
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India 10-year bond yield edged 0.13 per cent higher at 5.95 after trading in 5.93-5.95 range.
Domestic stocks look set to open on a firm note on Friday, tracking record closing for US stocks in overnight trade, in hopes of passing a US stimulus package amid rising jobless claims in the world s largest economy.
Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
Nifty futures on the Singapore Exchange traded 40.5 points, or 0.29 per cent, higher at 13,784.50, in signs that Dalal Street was headed for a positive start on Friday.
Indians can buy any stock post listing and there is no minimum investment size.
Synopsis
Domestic brokerages have tied up with platforms like Stockal, Vested Finance, Interactive Brokers or Winvesta to provide services to invest in global stocks.
Mumbai: Our craze for IPO subscription is not limited to Burger King or Mrs Bectors’ Food, but several thousand Robinhood investors were interested in subscribing to Airbnb’s initial share sale Stateside.
But all of them were disappointed as none of the domestic brokerages or standalone platforms are currently allowing them to subscribe to US IPOs due to procedural issues.
Unlike in India, IPOs in the US are allotted directly by the bankers
Bulls remained in the driver s seat at the bourses on Thursday as investors lapped up blue-chip stocks. Heavyweights like HDFC, Bajaj Finance, HDFC Bank, and Reliance ended between 0.5 per cent and 3 per cent higher and supported the indices to settle at record closing peaks for the fourth straight day. At the index level, the benchmark S&P BSE Sensex settled at 46,890 levels, adding 224 points or 0.48 per cent. In the intra-day deals, the index nearly kissed the 47,000-mark and hit a lifetime high of 46,992. The broader Nifty50 index, on the other hand, surged 58 points, or 0.42 per cent, to end at 13,741 levels. It hit a record high of 13,773 during the day.