Multi-Cap Funds

New SEBI rules were necessary, but would they be workable? On 11 September, SEBI announced key changes to the design and composition of multi-cap funds. These funds give the investors exposure across large caps, mid caps and small caps. What are the key changes made and what were the triggers for these changes? What SEBI…

Bond Yields

Will 8% be the new normal for the Indian bond markets? During the last one week, the 10-year bond yields decisively settled above the 8% mark. After touching a high of 8.06%, the bond yields settled around the 8.03% mark. What is material is that 8% is not the psychological barrier anymore and now appears…

Bonus Debentures

An innovative way to reward shareholders… The Board of Britannia recently approved the issue of bonus debentures to its shareholders in the ratio of 1:1. Like a true-blue bonus, the issue of bonus debentures will be free for shareholders. Instead of issuing bonus shares and reducing the market price, the bonus debenture is a better…

Kotak Bank

How it offers a new model of bringing down promoter stake… Under the RBI regulations, the promoter groups of private banks are required to reduce their holdings in a phased way. This is to ensure much wider public participation in bank equity. Under the RBI guidelines, Mr. Uday Kotak was required to reduce his stake…

Repo Rate Hike

Have rate hikes been front-ended for 2018? The August monetary policy was not on the same plane as the June policy. Ahead of the June policy there was a virtual unanimity that the RBI would hike rate by 25 basis points. Inflation had gone up sharply and neither crude nor food inflation was giving any…