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Uday Kotak steps down as MD and CEO of Kotak Mahindra Bank-Telangana Today

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Kotak, whose holding in the bank stands at 26 per cent, has become a non-executive director of the bank

Published Date – 08:43 PM, Sat – 2 September 23


Uday Kotak steps down as MD and CEO of Kotak Mahindra Bank

Uday Kotak resigned as the managing director and chief executive officer of Kotak Mahindra Bank, the bank said in a stock exchange filing on Saturday. (PTI Photo)

New Delhi: Uday Kotak, the founder and promoter of Kotak Mahindra Bank, has resigned as Managing Director and CEO of the private sector lender three months ahead of Reserve Bank’s deadline.

He has ceased to be the Managing Director & CEO of the bank, with effect from September 1, 2023, on account of his resignation considered at the bank’s board meeting held on Saturday.

Kotak, whose holding in the bank stands at 26 per cent, has become a non-executive director of the bank, Kotak Mahindra Bank said in a regulatory filing on Saturday.

As per the regulatory mandate restricting a managing director and chief executive’s term to 15 years, the board of the bank had earlier this year decided to appoint Uday Kotak as the non-executive director after his current term ends in December.

As an interim arrangement, Dipak Gupta, the Joint Managing Director, will carry out the duties of the Managing Director & CEO until December 31, 2023, subject to the approval of the Reserve Bank of India and the members of the bank, it said.

Taking to microblogging site X formerly Twitter, Kotak said, “Succession at Kotak Mahindra Bank has been foremost on my mind, since our Chairman, myself and Joint MD are all required to step down by year-end. I am keen to ensure smooth transition by sequencing these departures. I initiate this process now and step down voluntarily as CEO.” The bank awaits RBI approval of the proposed successor who would take charge from January 1, 2024, Kotak, who has been MD and CEO of the bank since its inception, said.

“As Founder, I am deeply attached to brand Kotak and will continue to serve the institution as Non-Executive Director and significant shareholder. We have an outstanding management team to carry the legacy forward. Founders go away, but the institution flourishes into perpetuity,” he said.

A long time ago, he said, “I saw names like JP Morgan and Goldman Sachs dominate the financial world and dreamed of creating such an institution in India. It is with this dream that I started Kotak Mahindra 38 years ago, with 3 employees in a 300 sqft office in Fort, Mumbai. I have deeply cherished every bit of this memorable journey, living my dream.”

Kotak Mahindra Bank is now a pre-eminent bank and financial institution, created on the basic tenets of trust and transparency, he said.

“We have created value for our stakeholders and provide over 1 lakh direct jobs. An investment of Rs 10,000 with us in 1985 would be worth around Rs 300 crore today. I am confident that this Indian-owned institution will continue to play an even more important role in India’s transformation into a social and economic powerhouse,” he said.

Kotak Mahindra Bank is among the few large private sector banks to have prominent promoter shareholders.

Kotak, in a handwritten message to the bank’s Chairman Prakash Apte attached on X, said it is now time to move on and the decision to resign three months ahead of the expiry of his term is with the view to sequencing this process from a transition and stability perspective.

Incidentally, the term of the bank’s Chairman is also coming to an end on December 31, 2023.

In the recent past, the bank has taken various measures fortifying the institution and making it future-ready, the handwritten letter said, adding, these include steps taken to ensure its financial stability and strengthening the risk matrix, he said in a three-page resignation letter.

“I stand in a lonely place of being a founder, promoter and significant shareholder of this great institution. It also bears our family name and carries that as its brand. The institution that we have together built stands for purpose, trust and integrity. I am committed as a stakeholder to see this institution sustain and grow,” he said.

In these changing times, he said, “I envision an India leading the world in the years ahead. I am confident that this majorly Indian-owned institution will play an important role in India’s destiny. As new leaders take over, I look forward to my new role as a non-executive director, a role entrusted to one by the Board and an overwhelming majority of the shareholders …the Bank.”

As per a July 21 media report, the banking industry regulator was peeved at certain utterances of Uday Kotak recently.

In his letter to shareholders, Kotak expressed concerns about the impact of over-regulation on entrepreneurial spirit.

“I feel the financial sector players risk becoming more robotic, curbing the entrepreneurial flair since the fear of making a mistake overrides the joy of creation and development. While we need ‘Arjuna’s eye’ on risk management, we must prevent bureaucratisation of financial services,” Uday Kotak had written.

KVS Manian, who is also in the running to succeed Uday, had said that his role in the bank will be decided on merit.

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Indian Railways achieve freight loading of 634.66 MT between April 1 and August 31-Telangana Today

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In the same period, Cement loading is 63.29 MT over 59.44 MT achieved in the corresponding period of last year, which shows growth of 6.48 per cent

Updated On – 12:15 AM, Sun – 3 September 23


Indian Railways achieve freight loading of 634.66 MT between April 1 and August 31

Photo: ANI.

New Delhi: In terms of Freight loading, Indian Railways has achieved 634.66 MT from April 1, 2023, to August 31, 2023, compared to 620.88 MT over the corresponding period of last year and the revenue achieved is approx. Rs 1 Lakh Crore which includes revenue from the Freight segment, passenger segment and other sundry revenue.

“The loading of Iron Ore in the same period is 70.84 MT which is 15.56 per cent more than 61.30 MT achieved in the corresponding period of last year. In the same period, Pig Iron and Finished Steel loading is 28.42 MT over 26.16 MT achieved in the corresponding period of last year, which recorded a growth of 8.63 per cent. The loading of fertilizer in the same period is 24.13 MT over 22.25 MT achieved in the corresponding period of last year, which shows growth of 8.45 per cent,” a statement from Northern Railways said.

In the same period, Cement loading is 63.29 MT over 59.44 MT achieved in the corresponding period of last year, which shows growth of 6.48 per cent, Northern Railways said. “The loading of Container services in the same period is 34.31 MT over 32.60 MT achieved in the corresponding period of last year, which shows growth of 5.22 per cent. The loading of POL in the same period is 20.59 MT over 19.91 MT achieved in the corresponding period of last year, which shows growth of 3.41 per cent,” the statement said.

The loading of Coal during the same period is 311.53 MT over 305.39 MT achieved in the corresponding period of last year. Automobile transportation by rail has shown a growth of 26 per cent whereas earnings from automobile has shown a jump of 24.5 per cent, the statement further said.

In the month of August 23, Indian Railways loaded 126.95 MT against 119.33 MT on August 22, which shows a growth of 6.38 per cent, the statement added.

Indian Railways has witnessed approx. 48 per cent Capital expenditure utilization (Highest ever) in the first five months of this Financial Year till August 2023.

Indian Railways has made an expenditure of Rs 1,15,000 Crores till August 2023. This investment is seen in various infrastructure projects like New Lines, Doubling, Gauge Conversion and enhancing passenger amenities. The safety of the passengers is paramount in Railways. A significant sum has been invested in enhancing safety-related works. The Capex Utilization is approx. 54 per cent in comparison to the last year’s corresponding period.

Business

Mcap of seven of top 10 firms declines Rs 62,279 cr; Reliance biggest laggard-Telangana Today

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The combined market valuation of seven of the top 10 valued firms eroded by Rs 62,279.74 crore last week, with Reliance Industries taking the biggest hit

Published Date – 09:40 AM, Sun – 3 September 23


Mcap of seven of top 10 firms declines Rs 62,279 cr; Reliance biggest laggard



New Delhi: The combined market valuation of seven of the top 10 valued firms eroded by Rs 62,279.74 crore last week, with Reliance Industries taking the biggest hit.

While Reliance Industries, Tata Consultancy Services (TCS), ICICI Bank, Hindustan Unilever, ITC, State Bank of India and Bharti Airtel were the laggards from the top 10 pack, HDFC Bank, Infosys and Bajaj Finance were the gainers.

The market valuation of Reliance Industries fell by Rs 38,495.79 crore to Rs 16,32,577.99 crore.

Hindustan Unilever’s valuation tumbled Rs 14,649.7 crore to Rs 5,88,572.61 crore and that of Bharti Airtel declined by Rs 4,194.49 crore to Rs 4,84,267.42 crore.

The market capitalisation (mcap) of ITC went lower by Rs 3,037.83 crore to Rs 5,50,214.07 crore and that of ICICI Bank dipped Rs 898.8 crore to Rs 6,78,368.37 crore.

The mcap of TCS diminished by Rs 512.27 crore to Rs 12,36,466.64 crore and that of State Bank of India dropped by Rs 490.86 crore to Rs 5,08,435.14 crore.

However, the valuation of HDFC Bank jumped Rs 10,917.11 crore to Rs 11,92,752.19 crore and that of Infosys rallied by Rs 9,338.31 crore to Rs 5,98,917.39 crore.

The mcap of Bajaj Finance climbed Rs 6,562.1 crore to Rs 4,43,350.96 crore. Last week, the BSE benchmark jumped 500.65 points or 0.77 per cent.

In the ranking of top 10 firms, Reliance Industries remained the most valued firm followed by TCS, HDFC Bank, ICICI Bank, Infosys, Hindustan Unilever, ITC, State Bank of India, Bharti Airtel and Bajaj Finance.

Business

Razorpay acquires digital invoicing startup BillMe-Telangana Today

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Fintech platform Razorpay on Tuesday said it has acquired Mumbai-based digital invoicing and customer engagement startup BillMe

Published Date – 11:55 AM, Tue – 12 September 23


Razorpay acquires digital invoicing startup BillMe



New Delhi: Fintech platform Razorpay on Tuesday said it has acquired Mumbai-based digital invoicing and customer engagement startup BillMe.

The partnership aims at empowering businesses with a hybrid model to engage better with end consumers, according to a release. The company did not disclose the deal value.

“…now with Razorpay’s merchant relations and strong understanding of the market, we will together enable a large base of offline retail brands to enjoy the best of both worlds, grow faster, and get seamless access to omnichannel payment solutions,” Razorpay Managing Director and Co-founder Shashank Kumar said.

Founded in 2018 by Kuber Pritmani, Jai Hemrajani and Rupam Jain, BillMe has served over 4,000 businesses and 15,000 retail Points Of Sale (POS).

“Given the synergies between our cultures, values, and our visions, we look forward to co-transforming the cycle of customer engagement alongside Razorpay, and thereby bring about a greater impact and experience for end-consumers,” BillMe Co-founder Kuber Pritmani said.

This is the Bengaluru-based fintech’s eighth acquisition, and first since its foray into omnichannel payments with the acquisition of end-to-end digital payments company Ezetap in August 2022.

Business

Ikea enters 2nd phase of growth in India, to expand retail operations, local sourcing-Telangana Today

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Swedish furniture maker Ikea is looking for omnichannel expansion with diverse retail formats besides kicking off online operations

Published Date – 11:40 AM, Sun – 3 September 23


Ikea enters 2nd phase of growth in India, to expand retail operations, local sourcing



New Delhi: Swedish furniture maker Ikea is looking for omnichannel expansion with diverse retail formats besides kicking off online operations in Delhi-NCR by the end of 2024 as it enters the second phase of growth in the Indian market.

According to company India CEO Susanne Pulverer, Ikea is now planning to expand its operations by adding more stores to its network and considering new locations such as Pune and Chennai and increasing local sourcing making products more affordable here.

Ikea, which has completed five years of retail operations after opening its first store in Hyderabad on August 9, 2018, plans to increase its employee count to 10,000 from 3,000 in the coming years.

Besides, the company which sources from India for its global retail operation, is expanding its scope and looking into a big category with wood-based products here.

“Our next growth phase in India looks very promising and full of opportunities. IKEA is committed to India and here for the long term. We are looking at an omnichannel expansion in India with diverse retail formats to come closer to the many people in India,” Pulverer told PTI.

She further said:” We have already booked an investment of Rs 10,500 crores in building five stores in India, apart from announcing investments in two large shopping centres in Gurugram and Noida with integrated IKEA stores.” In the second phase, Ikea is “looking at a faster expansion than the first five years”.

It expects an “accelerated expansion” based on the learnings from the first phase. Ikea has opened stores in cities such as Hyderabad, Mumbai, and Bengaluru cities and has an online presence in Ahmedabad, Vadodara, Surat, and Pune under the first phase.

“Delhi NCR is our next big market. We are planning to start online operations in Delhi by the end of 2024 followed by the Ingka Centres Gurugram project opening in 2025,” she added.

After Delhi, Ikea is “looking at what are the next markets as well. Pune and Chennai are interesting. Of course, we are exploring more opportunities, but it is important to penetrate each market in a good way, with a good omni-channel setup”.It is important to penetrate India with good omni-channel support, Pulverer added.

“What we have learned is that our full-size stores, flagship stores of IKEA work very well in India. So that’s the base and then to complement we will have a different format services fulfilment set up to support it,” she said.

Over investments, Pulverer hinted that it would not be limited to Rs 10,500 crore but would be expanded further in the long term.

“We are only in the beginning of reaching people in India. So we will have to invest much more this is as we say we are here for the long term. We have started with these investments and we are looking into the next phase based on what we have learned,” she said.

“We will go to many more cities, one by one and really reach more people,” she added.

The company also plans to grow local sourcing share in India in the coming years, which will help IKEA become more affordable.

“As we diversify into newer categories to manufacture IKEA products in India, we are also exploring the possibility of manufacturing wooden products in India,” she added.

On Ikea’s five years of operation here, IKEA India CEO Susanne Pulverer said the company has learned during the pandemic about managing the supply chains, which will help them “into the future”.

Ikea is also celebrating 40 years of sourcing from India for its global operations. “We started with textile and carpets, but that has also expanded into other categories plastic and metal and mixed materials, decorating items, fibre natural fibres, mattresses and we are now looking into a big category with a wood,” she said.

“There is some availability but not sufficient to really be a big sourcing market … There is a need for more sustainably managed forests that can give the right sustainable raw material,” Pulverer added.

IKEA is working with around 65 suppliers in India producing for IKEA stores worldwide.

“We can we are not here just to sell furniture we want to be part of the India growth story and be a good business partner in that,” she said.

For the financial year ended on March 31, 2022, Ikea India net sales/revenue was up by 77.07 per cent to Rs 1,076.1 crore.

Business

G20 Presidency helping India deepen trade ties with member nations: Experts-Telangana Today

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G20 Presidency with India is helping New Delhi to strengthen trade ties with member nations and provides an opportunity to attract investments

Updated On – 07:01 PM, Sun – 3 September 23


G20 Presidency helping India deepen trade ties with member nations: Experts



New Delhi: The G20 Presidency with India is helping New Delhi to strengthen trade ties with member nations and provides an opportunity to attract investments from those countries in sectors like infrastructure, experts say.

They said that the G20 (Group of 20) holds a strategic role in securing future global economic growth and prosperity, as its members represent about 85 per cent of the global GDP (Gross Domestic Product), 75 per cent of global trade and two-thirds of the world’s population.

Presiding over this multilateral forum is an opportunity for India as it can showcase its strength and achievements for attracting investment and deepen its trade relation with these large economies, the experts added.

Fast-tracking negotiations for free trade agreement, ease of doing business, development of modern infrastructure, skilled manpower, large population with growing income are some of the positives which help India to enhance trade realisations with these member countries.

The G20 has 43 members and not 20 countries. These include 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, UK and US) and the European Union (27-member group). Three EU countries — France, Germany, Italy — are counted among the 19 countries.

Trade experts suggested the government to fast-track ongoing negotiations for free trade agreement (FTA) with countries like the UK and EU as it would help India in better market access to these countries as well as facilitate investment.

However, they also asked not to use trade platforms to achieve climate aspirations as that could harm progress in both trade and climate discussions.

The largest trade block of G20, the EU, will set in motion the carbon border adjustment mechanism from October 1 this year, making exports expensive from countries like India.

“In the first eight months of 2023, the EU introduced five regulations on climate change and trade. The G20 nations should ignore this elephant in the room and discuss before individual countries rush to the WTO (World Trade Organisation (WTO). This may soon unravel world trade,” think tank Global Trade Research Initiative (GTRI) Co-Founder Ajay Srivastava said.

Shardul S Shroff, Executive Chairman, Shardul Amarchand Mangaldas & Co, said that India should find a common ground with G20 countries to emerge as a global norm setter for the digital economy and use that global stature to boost IT and IT-enabled services exports.

India should position itself as the global norm-setter for various aspects of the digital economy, such as data protection, international contracting, digital assets, and international taxation, as it would help expand India’s footprint in the global services exports market, Shroff said.

Gaurav Dani, Founding Partner, INDUSLAW, said that India has the largest growing middle-income population offering a last consumer base for both goods and services and due to this global firms will continue to invest in India.

Sharing similar views, Rumki Majumdar, Economist, Deloitte India, said that many multinational firms are looking for alternate destinations for investment and diversifying supply chains, and the G20 Presidency will help India attract many such companies.

Massive improvement in infrastructure, ease of doing business, skilled labour force and growing market with large middle class consumer base are some of the key indicators that make India one of the most attractive places to invest and import quality goods, Hi-Tech Group Chairman Deep Kapuria said.

Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said India’s trade with G20 countries will grow at an accelerated rate because of the comfort and confidence created in the members due to the multiple events organised by India in different cities.

“This helped in showcasing the country as a whole. The G20 Presidency has thrown up many opportunities in diverse sectors for India. It is now for India to grab this opportunity. India should consider converting G20 in an economic block, a shade lower than free trade, maybe, reduced custom duties among the group members,” Saraf said.

Among the G20 members, India holds ninth position in terms of total trade (USD 1,662 billion) in goods and services in 2022. The EU (17,151 billion), China (USD 7,183 billion) and USA (6,933 billion) hold top three spots.

Share of G20 nations in India’s merchandise export in 2022 stood at 64 per cent and import at 52.4 per cent.

India’s leading export destinations among G20 nations are USA (USD 91 billion), EU (USD 87 billion), China (USD 17.5 billion), UK (USD 14.4 billion), Turkey (USD 10.7 billion) and Saudi Arabia (USD 10 billion).

The country’s suppliers include China (USD 118.5 billion), EU (USD 59.1 billion), Saudi Arabia (USD 43.3 billion), USA (USD 38.4 billion), Russia (USD 34 billion), Australia (USD 19.2 billion), Korea (USD 18.9 billion), and Japan (USD 13.9 billion) during the last year.

Sector wise, India’s top exports to these member countries in 2022 included electronics and machinery (USD 41.3 billion), petroleum products (USD 30 billion), cut and polished diamonds and gold jewellery (USD 25.9 billion), organic chemicals (USD 20.5 billion), medicines (USD 16.4 billion), automobiles parts (USD 11.8 billion).

The main import items included electronics (USD 46.6 billion), machinery (USD 42.5 billion), petroleum products (USD 40.6 billion), organic chemicals, APIs (USD 18.9 billion), rough diamonds and gold (USD 17.6 billion), plastics raw materials (USD 13.0 billion), and iron and steel (USD 12.8 billion).

In terms of foreign direct investments (FDI), the US is the biggest investor with USD 61.3 billion or nine per cent share in India’s FDI during April 2000-June 2023, when it was aggregated at USD 645.4 billion.

It was followed by Japan with USD 40 billion or 6 per cent contribution; UK (USD 34.3 billion) or 5 per cent share; Germany (USD 14.25 billion) or 2 per cent share, and France (USD 10.62 billion) or 1.64 per cent.

Business

Rally in Indian stocks continues, Nifty scales new peak-Telangana Today

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Indian stock indices extended gains from the previous session, with Nifty touching its all-time high

Published Date – 11:00 AM, Tue – 12 September 23


Rally in Indian stocks continues, Nifty scales new peak



New Delhi: Indian stock indices extended gains from the previous session, with Nifty touching its all-time high. The Nifty 50 breached the 20,000 mark for the first time ever on Monday.

This morning, Nifty was at 20,050.70 points, up 0.27 per cent. Sensex was at 67,376.18, up 0.37 per cent with some 400 points lower from its record-high on July 20.

“As our PM said, this is India’s Amritkal, so medium- to long-term opportunities in the Indian stock market will be fabulous. Any correction due to global factors will be a good buying opportunity in sectors like auto, banking, PSUs, IT, etc.,” said Parth Nyati, Founder at Tradingo.

“Optimism regarding India’s growth prospects in a low-growth world and a fast decelerating China has triggered this rally enabling the Nifty to cross the psychological 20000 mark,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“In the near-term, the market is likely to consolidate around the present levels.” The benchmark indices added over 3 per cent each, respectively over the past week, after India’s economy grew firm in the April-June quarter.

Indian economy witnessing a firm GDP growth rate of 7.8 per cent in the first quarter (April-June) of 2023-24 is likely to have improved investors sentiment lately. With a GDP growth of 7.8 per cent, it continues to be the fastest-growing major economy.

For fresh cues, investors now await India’s retail inflation data for August, due at 5.30 pm today.

Retail inflation in India rose sharply in July to 7.44 per cent and in the process breached RBI’s 6 per cent upper tolerance target, largely due to a sharp spurt in vegetable, fruit, and pulses prices.

Business

FPIs adopt ‘wait and watch’ approach; inflow hits 4-month low at Rs 12,262 crore in August-Telangana Today

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Foreign investors have slowed down the pace of inflow to Rs 12,262 crore in August on higher crude oil prices and resurfacing of inflation risks

Published Date – 12:00 PM, Sun – 3 September 23


FPIs adopt ‘wait and watch’ approach; inflow hits 4-month low at Rs 12,262 crore in August



New Delhi: After pouring a whopping amount into Indian equities in the past three months, foreign investors have slowed down the pace of inflow to Rs 12,262 crore in August on higher crude oil prices and resurfacing of inflation risks.

“FPIs are adopting a ‘wait and watch’ approach rather than making a complete U-turn. There continues to be uncertainty in the global economy and the underlying scenario is fast changing. This will make the flows from FPIs volatile,” Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, said.

According to the data with depositories, Foreign Portfolio Investors (FPIs) invested a net amount of Rs 12,262 crore in Indian equities in August. This figure includes investment through the primary market and bulk deals, which have been gathering momentum recently.

This is the lowest investment in the last four months. Before this investment, FPIs invested over Rs 40,000 crore each in the past three months in Indian equities.

The net inflow by FPIs was at Rs 46,618 crore in July, Rs 47,148 crore in June, and Rs 43,838 crore in May. Before that, the inflow amount was Rs 11,631 crore in April and Rs 7,935 crore in March, data with the depositories showed.

Srivastava attributed the slowdown in FPI investment in August to concerns on the global macroeconomic front, with higher crude oil prices and resurfacing of inflation risks.

Additionally, firming up of bond yields in the US would have also led some foreign investors to drift away from riskier markets in favour of greater certainty and better risk-reward profile offered by US treasuries, he said.

Also, the intermittent rally in the Indian equity markets could have resulted in its valuation going beyond the comfort level of a few investors, he added.

“FPIs have been sellers in most emerging markets in August mainly due to this double whammy of rising dollar and rising bond yields. Profit booking in financials also contributed to FPI selling,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Mayank Mehraa, smallcase manager and principal partner at Craving Alpha, said the slowdown in inflow can be attributed in part to a specific group of investors, Private Equity (PE) funds.

“Many of these PE funds manage investments on behalf of clients, including conservative institutions like endowment funds. These endowments typically seek consistent and low-risk returns to support long-term financial goals, such as scholarships or charitable endeavours,” he added.

Apart from equities, FPIs invested Rs 7,732 crore in the country’s debt market last month.

With this, the total investment by FPIs in equity has reached Rs 1.35 lakh crore and close to Rs 28,200 crore in the debt market this year so far.

In terms of sectors, FPIs have been consistently buying capital goods. Recently, they have been buyers in healthcare too.

Business

Sebi to curb finfluencers to help investors get accurate, unbiased info-Telangana Today

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The proposed move by Sebi not only ensures that investors receive accurate and unbiased information but also helps in preserving authenticity and reducing fraud

Published Date – 12:15 PM, Sun – 3 September 23


Sebi to curb finfluencers to help investors get accurate, unbiased info



New Delhi: The rise of financial influencers or finfluencers, who charge as high as Rs 7.5 lakh for a post on social media, introduced a new way for people to access and interpret financial information, and now they will soon come under the regulatory purview as Sebi proposed measures to curb their mushrooming numbers.

The proposed move by Sebi not only ensures that investors receive accurate and unbiased information but also helps in preserving authenticity and reducing fraud, Anand Rathi Wealth Deputy CEO Feroz Azeez told PTI.

Under the proposal, finfluencers need to be registered with Sebi and adhere to specific guidelines. Also, it has been proposed to ban unregistered finfluencers from partnering with mutual funds and stockbrokers for promotional activities.

While many finfluencers provide valuable insights, there has been a growing concern over the potential risks associated with unregulated finfluencers who might offer biased or misleading advice. They usually work on a commission-based model.

“Finfluencers charge as little as Rs 10,000 to as much as Rs 7.5 lakh for an individual post, excluding tax. Influencer marketing agencies quote as much as Rs 20 lakh for a campaign, plus taxes, to entice their followers,” Azeez said.

In addition, many of them make money from referral fees or profit sharing for promoting the product, channel, platform, or services or get compensation directly from social media and other platforms.

To address the risk associated with finfluencers, Sebi floated a consultation paper late last month proposing to restrict the association of registered intermediaries or regulated entities with unregistered influencers.

In an era where financial advice is increasingly disseminated through social media, the line between credible advice and misleading information can become blurred.

By requiring finfluencers to register with Sebi and adhere to specific guidelines, the regulator is setting a standard for accountability and expertise in the sector, Sonam Srivastava, Founder and Fund Manager at Wright Research, PMS, said.

“The regulatory move to address the role of financial influencers, or finfluencers in the financial sector is undoubtedly significant in enhancing investor protection and promoting transparency in the industry,” Anand Rathi Wealth’s Azeez said.

Also, the capital markets regulator has proposed measures on disrupting the revenue model for unregistered finfluencers and ensuring that they adhere to proper disclosure and disclaimer practices. This will help create a more accountable and reliable environment for investors seeking financial guidance, he said.

Finfluencers have significantly impacted their followers’ financial decisions in the last few years and thus Sebi’s proposed regulatory framework can make them accountable and responsible for the advice they provide, Tejas Khoday, Co-founder and CEO of FYERS, said.

Further, finfluencers registered with Sebi or stock exchanges or AMFI are expected to display their appropriate registration number, contact details, and investor grievance redressal helpline, and make appropriate disclosure and disclaimer on any posts.

Khoday said that the new regulations could help prevent conflict of interest and recommendation bias, which usually overlooks their followers’ risk profiles. However, it is also essential to balance regulation and innovation.

“The proposed rules should harness the power of digital media to increase the overall financial awareness of the population fairly and transparently without compromising the far-reaching social media penetration so far,” he added.

Also, the regulator has proposed to create a closed ecosystem for fee collection by Sebi-registered Investment Advisers (IAs) and Research Analysts (RAs) from their clients.

This ecosystem will help investors ensure that their payments are reaching only registered IAs and RAs. This would also help investors identify, isolate, and avoid unregistered entities, who would be unable to access this closed ecosystem.

Business

Global trends, macroeco data, trading activity of foreign investors to drive market trends: Analysts-Telangana Today

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Macroeconomic data announcements, global trends and trading activity of foreign investors would guide momentum in the equity market this week

Published Date – 12:40 PM, Sun – 3 September 23


Global trends, macroeco data, trading activity of foreign investors to drive market trends: Analysts



New Delhi: Macroeconomic data announcements, global trends and trading activity of foreign investors would guide momentum in the equity market this week, analysts said.

Markets ended a five-week losing streak and gained nearly a per cent last week, helped by a sharp rebound on Friday.
Last week, the BSE benchmark jumped 500.65 points or 0.77 per cent and the Nifty gained 169.5 points or 0.87 per cent.

“On the global front, problems in China’s real estate, fluctuations in the dollar index, and the US bond yields will play a pivotal role in shaping market dynamics throughout the week. Apart from that, macroeconomic data like the S&P Global services PMI, US jobless data will provide insights into the FED’s monetary policy outlook,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

The domestic PMI (Purchasing Managers’ Index) data for the services sector will be announced on Tuesday.

“On the macro front, some of the key factors that will be in focus in the coming days are India’s S&P global services PMI, Euro zone S&P global composite PMI, UK services PMI, Euro Zone Q2 GDP, US factory orders, S&P Global US services PMI, crude oil prices, initial jobless claims, FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors) activities will drive the market,” Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

In the absence of any major triggers from the domestic market, sentiments will be driven by global cues, including the release of US payroll and PMI data, said Vinod Nair, Head of Research at Geojit Financial Services.

Besides, movement of crude oil and trend in rupee against the US dollar will also influence trading patterns in the market.

“After a sluggish to negative sentiment last month, foreign investors could be looking at Indian markets with fresh optimism once again, as the nation continues to overcome global economic challenges and perform well on most economic parameters.

“While foreign investors have already been net buyers of local shares in the past five sessions, the recent macroeconomic numbers like strong Q1 GDP growth, robust August GST collections, and upbeat PMI data for last month should bolster their confidence in local markets,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.

Manufacturing activities in India gained momentum in August as new orders and output increased at the quickest rates in nearly three years, according to a survey released on Friday.

GST collections grew by 11 per cent to over Rs 1.59 lakh crore in August on the back of improved compliance and reduced evasion, with experts forecasting higher mop-up to continue in the upcoming festive season.