victorybull

Author: victorybull

  • Sebi penalises NSE, BSE for laxity in Karvy Stock Broking case

    India’s markets regulator on Tuesday fined BSE Rs 3 crore and the National Stock Exchange (NSE) Rs 2 crore for “laxity” in detecting misconduct by Karvy Stock Broking (KSBL).

    The Hyderabad-based brokerage misused securities worth Rs 2,300 crore belonging to more than 95,000 clients by pledging them without authorisation, said the Securities and Exchange Board of India (Sebi). The firm and its group entities used funds the to raise Rs 851 crore from eight banks.

    “Without doubt, it was KSBL which misused clients (sic) securities by unauthorisedly pledging them and was thus responsible for loss caused by pledging securities which it did not own, including loss to investors as well as loss to banks and NBFCs who loaned funds to KSBL against securities which did not belong to KSBL,” said Sebi.

    Noticee (BSE & NSE), which resulted in delayed detection of the misconduct by KSBL and the Noticee needs to be held accountable for the same,” Sebi said in two separate orders against the country’s leading stock exchanges.”

    Sebi had examined details of inspection and action taken by NSE and BSE against KSBL conducted between 2016 and 2019. It further asked the exchanges to furnish the procedure they followed to ensure reconcillation of clients’ securities.

    Sebi’s investigation found lapses on the part of both exchanges.

    In 2019, Sebi had passed an ex-parte ad-interim order against KSBL when the unauthorisedly pledging issue came to light. Efforts taken by Sebi, depositories and exchanges helped KSBL’s clients recover their dues.

    In December 2019, depository firm NSDL had said securities were returned to 82,559 clients from the KSBL Demat account. In November 2020, NSE had said funds and securities worth Rs 2,300 crore belonging to about 235,000 investors of KSBL were settled.

    After the KSBL investigation, Sebi changed norms around pledging of shares to prevent misuse by brokerage. The regulator did away with the concept of power of attorney which earlier allowed brokerages gain access to client securities.

  • Rupee gains 14 paise to 75.79 against US dollar in early trade

    Rupee gains 14 paise

    The rupee appreciated 14 paise to 75.79 against the US dollar in opening trade on Monday, amid a pullback in crude oil prices.

    At the interbank foreign exchange, the rupee opened at 75.94 against the American dollar, then gained further ground to quote 75.79, registering a rise of 14 paise from the last close.

    On Friday, the rupee appreciated 10 paise to settle at 75.93 against the US dollar.

    The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent higher at 99.92.

    Most Asian and emerging market peers are trading weaker against the US dollar this Monday morning and could weigh on sentiments, however subdued crude oil prices will cap depreciation bias, said Sriram Iyer, Senior Research Analyst at Reliance Securities.

    However, the big trigger for the markets will be Indian and US CPI inflation data on Tuesday, Iyer said.

    On the domestic equity market front, the 30-share Sensex was trading 322.35 points or 0.54 per cent lower at 59,124.83, while the broader NSE Nifty declined 73.70 points or 0.41 per cent to 17,710.65.

    Global oil benchmark Brent crude futures fell 2.33 per cent to USD 100.39 per barrel.

    Foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth Rs 575.04 crore, as per stock exchange data.

  • Veranda lists 15% higher over issue price on BSE; down 5% on NSE

    Shares of Veranda Learning Solutions opened 15 per cent higher at Rs 157 against its issue price of Rs 137 per share on the BSE on Monday. At 10:22 am; the stock locked in upper circuit of Rs 164.85, after hitting a low of Rs 149.15 in intra-day trade so far. According to the exchange data, around 775,000 equity shares changed hands with pending buy orders of 5,151 shares on the BSE.

    However, the stock locked in lower circuit of Rs 131.25 on the National Stock Exchange (NSE). It opened 9 per cent lower at Rs 125 against its issue price of Rs 137 per share. Around 3.03 million shares changed hands with pending sell orders 2.8 million shares so far.

    The company has raised Rs 200 crore through initial public offering (IPO). It has proposed to utilize the net proceeds of the fresh issue towards repayment of its borrowings amounting to Rs 60 crore, payment of acquisition consideration of Edureka or repayment of bridge loan availed to discharge acquisition at Rs 25.19 crore, growth initiatives towards Rs 50 crore and the balance for general corporate purposes.

    Veranda Learning Solutions offers diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, graduates, professionals and corporate employees through multitude of career-defining competitive exams, professional courses, exam-oriented courses, short term upskilling and reskilling courses.

    The company provides comprehensive long-term and short-term preparatory courses in simple and lucid manner for students preparing for Union Public Service Commission, State Public Service Commission, Staff Selection Commission, Banking, Insurance, Railways and Chartered Accountancy. The company also provides customised short term skilling courses, long term courses and other corporate courses to its learners.

  • SBI Cards dips 5% as over 3% of equity changes hands via block deals on NSE

    Shares of SBI Cards and Payment Services dipped 5 per cent to Rs 836 on the National Stock Exchange (NSE) in Tuesday’s intra-day trade after over 3 per cent equity of the company changed hands at the counter via block deals.

    Till 09:21 am; around 31.9 million equity shares representing 3.37 per cent equity of SBI Cards changed hands on the NSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately.

    As per reports, private equity firm Carlyle Group was to sell its entire stake in the company for as much as Rs 2,558 crore via block trade. CA Rover Holdings, a Carlyle entity, as of December 2021 quarter, held 29.20 million shares or 3.09 percent stake in SBI Cards. The shares were to be offered at Rs 851.50-876.75 a piece, representing around 3 percent discount to Monday’s closing price.

    Earlier on September 21, 2021, CA Rover Holdings sold 32 million equity shares or 3.4 per cent stake of SBI Cards at an average price of Rs 1,021 per share on the NSE, data shows.

    Meanwhile, SBI Cards has underperformed the market by falling 23 per cent in the past six months, as compared to a 1.5 per cent rise othe Nifty50 index. However, in the last one month, the stock has outperformed by gaining 14 per cent as against a 12 per cent surge in the benchmark index. The stock hit a 52-week low of Rs 712.25 on March 7, 2022.

    At 09:35 am; SBI Cards traded 3 per cent lower at Rs 847.85, as compared to a 0.2 per cent decline on the Nifty50 index.

  • Sensex down 200pts, Nifty tests 18,000; RIL, HDFC twins weigh

    After a tepid start, the key benchmark indices were seen holding marginal losses in late morning trade-off the low of the day as gains in select IT and FMCG shares helped offset losses in financials.
    The BSE Sensex from an opening high of 60,786, had slipped to an intra-day low of 60,227. The index, however, was down around 200 points at 60,400-odd levels. The NSENifty was seen testing the 18,000-mark, down 50-odd points.
    Among the Sensex 30 shares, the HDFC and Bajaj twins along with Reliance Industries were the major losers, down 1-2 percent each. On the positive front, Titan, NTPC, Dr.Reddy’s, Mahindra & Mahindra, Hindustan Unilever, TCS, Maruti, and Nestle India were the prominent gainers, up 1-2 percent each.
    The broader markets, however, outperformed the benchmark indices by a large margin. The BSE Midcap index was up 0.8 percent, while the Smallcap index rallied 1.3 percent. The overall breadth too was fairly positive with nearly 2,300 stocks advancing, versus 913 declining stocks on the BSE so far.
    Sectorally, the BSE Consumer Durables, Power, Telecom and Auto indices were the strong gainers; whereas Bankex was the notable loser.

    Among other individual stocks, SBI Cards shed 4 percent on the BSE. As per reports, private equity firm Carlyle Group will sell its entire stake in the company for as much as Rs 2,558 crore.

    Moreover, Zomato, too, dropped 5 percent after the Competition Commission on Monday ordered a detailed probe against Zomato and Swiggy, for alleged unfair business practices with respect to their dealings with restaurant partners.

  • Lankan papers run out of newsprint due to forex crisis; suspend publication

    Sri Lanka’s two major newspapers on Saturday suspended their publication over newsprint shortage and price escalation caused by the country’s all-time worst foreign exchange crisis.

    The Island, an English daily along with its sister Sinhala paper Divayina, ceased to print as the newsprint scarcities and price escalations hit the media organisation.

    We regret to inform our readers that we have been compelled to suspend the publication of The Island print edition on Saturday until further notice in view of the newsprint shortage, Upali Newspapers Limited said in a statement.

    Sri Lanka is facing its all-time worst foreign exchange crisis after the pandemic hit the nation’s earnings from tourism and remittances.

    The import costs of newsprint also rose remarkably since e government’s decision early this month to float the Sri Lankan rupee against the US dollar.

    The Island newspaper, which has been in print since October 1981, will now function as an e-paper.

    Sri Lanka is facing an acute economic and energy crisis triggered due to a shortage of foreign exchange. A sudden rise in prices of key commodities and fuel shortage forced tens of thousands of people to queue for hours outside petrol filling stations. People are also facing long hours of power cuts daily.

    All essentials are in short supply due o import restrictions forced by the forex crisis.

    As part of its measures to tackle the crisis, the Sri Lankan government has sought India’s assistance. After months of resistance, the government is preparing to approach the International Monetary Fund (IMF) for an economic bailout.

    In a related development, the Indian Oil Corporation’s local entity LIOC effected another price hike of petrol with effect from midnight Friday. This was the LIOC’s fourth price hike since February.

    India recently announced to extend a USD 1 billion line of credit to Sri Lanka as part of its financial assistance to help the country deal with the economic crisis. New Delhi had extended a USD 500 million line of credit to Colombo in February to help it purchase petroleum products.

  • Sri Lanka’s forex crisis leads to a tourism crisis

    With Sri Lanka going through an ongoing foreign exchange criss, governments of the United Kingdom, and Canada have warned their travellers about the economic situation. The UK government has warned its travellers that Sri Lanka is reeling under a crisis with shortages of medicines, food, and fuel, as there is now a shortage of hard currency for imports.
    The country declared that it’s in crisis back in August, 2021. With the 2019 Easter Bombings, and then the covid pandemic, tourism has already been hit in a bad way in the country. Now the foreign exchange crisis might further affect travel.

    The United Kingdom, along with Russia and India are the three biggest sources of inbound tourism for Sri Lanka. Tourism accounts for 5 per cent of the country’s GDP. There has been a decline in international tourist arrivals in Sri Lanka in March 2020, by about 70.8 percent when comared to the same time frame a year ago.

    The government in Canada has also asked its citizens to have food, water, and fuel supplies in hand in case of a disruption. The government has also asked its travellers to have enough supply of medicines at hand.

    The Sri Lankan public has in fact faced a shortage of essentials due to the forex crisis, as its import restrictions have led to a shortage in cooking gas, and fuel supplies. This has also led to power cuts in the country.

  • Rupee advances 23 paise to 75.67 against the US dollar in early trade

    The rupee advanced 23 paise to 75.67 against the US dollar in the opening trade on Thursday, supported by positive domestic equities and a fall in crude oil prices.

    At the interbank foreign exchange, the rupee opened at 75.67 against the US dollar, registering a rise of 23 paise from the previous close.

    On Wednesday, the rupee dropped by 17 paise to close at 75.90 against the US dollar.

    The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.14 per cent to 97.92.

    Global oil benchmark Brent crude futures fell 4.54 per cent to USD 108.30 per barrel after reports surfaced that US President Joe Biden is preparing to order the release of up to 1 million barrels of oil per day from the nation’s strategic petroleum reserve to control energy prices.

    Meanwhile, the International Monetary Fund on Wednesday said that India has received a record number of foreign direct investments during the last few years despite the COVID-19 crisis, and has quite a few safeguards in place to mitigate the risks from capital flows.

    On the domestic equity market front, the 30-share Sensex was trading 152.24 points or 0.26 per cent higher at 58,836.23, while the broader NSE Nifty surged 44.40 points, or 0.25 per cent, to 17,542.65.

    Foreign institutional investors remained net buyers in the capital market on Wednesday as they purchased shares worth Rs 1,357.47 crore, according to stock exchange data.

  • Gold up as dollar, yields weaken; progress in Russia-Ukraine talks weighs

    Gold prices rose on Wednesday, supported by a dip in the U.S. dollar and Treasury yields, though signs of progress in Russia-Ukraine peace talks dented the metal’s appeal as a safe haven and kept gains in check.

    Spot gold was up 0.3% to $1,923.95 per ounce by 0210 GMT. U.S. gold futures rose 0.5% at $1,927.70.

    The metal fell as much as 1.8% on Tuesday to its lowest since Feb. 28 at $1,889.45.

    “(Weaker) dollar has provided a level of support for gold…bond prices bounced from a key level of support yesterday which helped push yields lower despite the supposed risk-on rally seen across equities. And that’s provided another pillar of support for gold,” City Index senior market analyst Matt Simpson said.

    Underpinning gold, investors remain wary over Russia’s true intentions over their pledge to scale down ‘military operations’, he added.

    Ukraine reacted with scepticism to Russia’s promise in negotiations to scale down military operations around Kyiv and another city as some Western countries expected Moscow to intensify its offensive in other parts of the country.

    The dollar index slid to a more than one-week low in the previous session, making gold less expensive for other currency holders. [USD/]

    U.S. benchmark 10-year yields also slipped from near three-year highs, and lower yields decrease the opportunity cost of holding non-yielding bullion. [US/]

    Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, slipped 0.2% to 1,091.44 tonnes on Tuesday. [GOL/ETF]

    Spot silver was up 0.1% at $24.78 per ounce and platinum rose 0.9% to $991.49.

    Palladium gained 1.5% to $2,182.15, after dipping to a more than two-month low of $2,032.97 in the last session.

    The auto-catalyst metal has tumbled nearly 40% since scaling an all-time peak on March 7 as supply concerns from Russia eased.

  • Hacker steals $625 mn in crypto from Blockchain platform Ronin

    In one of the largest decentralized finance (Defi) breaches yet, a hacker has stolen cryptocurrencies worth $625 million from Ronin, a Blockchain platform behind the popular non-fungible token (NFT) game Axie Infinity.

    The Blockchain platform and Axie Infinity operator Sky Mavis admitted the security breach, saying that 173,600 Ethereum and 25.5M USDC (a cryptocurrency pegged to the US dollar) were drained from the Ronin bridge in two transactions.

    “The attacker used hacked private keys in order to forge fake withdrawals. We discovered the attack after a report from a user being unable to withdraw 5k ETH from the bridge,” Ronin Network said in a statement late on Tuesday.

    The company has temporarily paused the Ronin Bridge to ensure no further attack vectors remain open.

    The company was working with law enforcement officials, forensic cryptographers, and investors to make sure all funds are recovered or reimbursed.

    “As we’ve witnessed, Ronin is not immune to exploitation and this attack has reinforced the importance of prioritising security, remaining vigilant, and mitigating all threats,” said the Blockchain platform.

    “As of now, users are unable to withdraw or deposit funds to Ronin Network,” it added.

    In January this year, hackers stole crypto tokens worth $120 million from the Blockchain-based decentralized finance (Defi) platform BadgerDAO. Several crypto wallets were drained before the platform could stop the cyber attack.

    In December last year, cyber criminals stole cryptocurrency worth $80 million from Qubit Finance, a decentralised finance (DeFi) platform.