Lakshmi Vilas Bank was put on moratorium; RBI proposes merger with DBS Bank India
Lakshmi Vilas Bank has been put into moratorium as of 6 pm, November 17 to December 16. The moratorium was imposed on the basis of the request submitted by the RBI under Section 45 of the BR Act. Withdrawals from account holders and creditors have also been limited to Rs 25,000 during the moratorium period. Account holders can withdraw more than 25,000 rupees just for unforeseen expenses including medical treatment, education, etc., according to an official statement. The central bank has assured LVB depositors that their interests will be fully protected and has asked depositors not to panic. RBI will put in place a Merger Scheme well before the expiration of the moratorium and will ensure that depositors do not go through undue hardship or inconvenience for longer than absolutely necessary. More here
Interest Waiver Case for Hearing Today
The Supreme Court will hear the interest exemption case on Wednesday, the hearing of which will begin at 10:30 am. The petitioners have moved to South Carolina seeking help. The types of relief include an extension of the moratorium, perhaps including a nominal fee charged by banks or NBFCs. Until now, the Supreme Court has not been inclined to award any compensation beyond interest on the interest exemption. Now we have to see if the SC pays attention to the concerns raised by the other petitioners, the builders, the energy producers, the real estate agents or if the Supreme Court will put this matter aside taking into account the performance of the center with respect to the waiver of interest. about interest, that question awaits.
Opening bell: Sensex opens flat, Nifty has 12,850; DHFL up to 5%
Indian indices were flat on Wednesday after hitting an all-time high on Tuesday, as losses in heavyweights HDFC, HUL, TCS and RIL were limited by gains in ICICI Bank, L&T, Bajaj Finanace and Infosys. At 9:18 a.m., the Sensex was trading 17 points higher at 43,969 while the Nifty was down 15 points at 12,859. The broader markets were positive at the open with the Nifty Midcap and Nifty Smallcap indices rising 0.5 percent and 0.1 percent, respectively. Across sectors, Nifty Bank and Nifty Auto rose about 0.4 percent, while the FMCG, IT, Metal and Pharma indices were in the red.
October MF Trends: Private Banks Rebound, IT Scales Another New Record
Equity mutual funds witnessed an exit for the fourth month in a row in October and investors moved Rs 2,725 crore compared to an exit of Rs 734 crore in September, AMFI data showed. Investors continued to post profits at all upper tiers. The month saw notable changes in the sector and the fund’s share allocation, brokerage Motilal Oswal noted in a recent report. After hitting a 29-month low in September, private banks saw positive interest among MFs in October and their peso rose 160 bp m / m to 17.4 percent. It continued to be the industry leading position for MFs for the second consecutive month in October. Among other sectors, the weight of technology continues to climb new highs as the weight increased 20 bps m / m to 11.8 percent. It was the second best sector participation among MF. Meanwhile, the weight of the consumer sector moderated for the fifth consecutive month to 8.3 percent, 40 bp per month. More here
Gland Pharma IPO Gets Cold Response from Gray Market; the premium drops significantly to Rs 6-10
India’s largest pharmaceutical IPO, Gland Pharma, attracted a quiet response from retail investors during the bidding process, similar to the response it received from the gray market. Analysts believe that the higher-than-expected price band, higher valuations and Chinese affiliation could be the reasons behind the lower premium. The stock is now available at Rs 6-10 on the gray market, compared to the IPO price of Rs 1,500, Moneycontrol reported. The premium started to fall after the launch of the price band as it was trading at a premium of Rs 200 each prior to the announcement. After the closing of the bidding session, it fell to Rs 30 levels. The injectables-focused company set its price band at Rs 1,490-1,500 per share. The item will hit the exchanges on Friday (November 20). More here
Lakshmi Vilas Bank Shareholders May Not Be As Lucky As Yes Bank Shareholders: Here’s Why
Lakshmi Vilas Bank shareholders cannot get anything out of its proposed merger with DBS Bank India Ltd (DBIL), in accordance with the terms of the proposed merger scheme announced by the Reserve Bank of India. The draft of the scheme reads: “As of the date indicated, the total amount of paid-up capital stock and reserves and surplus, including balances in the transferor bank’s equity / securities premium account, will be canceled.” Furthermore, “On and from the date indicated, the transferring bank will cease to exist due to the operation of the scheme, and its shares or obligations that are listed on any stock exchange will be excluded from the list without any other action from the transferring bank, transferee bank or order of any authority “.
In the latest development in @DHFL_India resolution issue, bank sources say @_ritusingh that the main suitors, Piramal, Oaktree Cap and SC Lowy, have protested against Adani’s offer.
The CoC postpones any vote on resolution plans until December 3. There’s more here pic.twitter.com/WoI2B4IBnv
– CNBC-TV18 (@ CNBCTV18Live) November 18, 2020
First, here is a quick update on what happened in the markets on Tuesday
Indian stocks closed at record highs on Tuesday after a long weekend, following gains by their Asian peers, as news of another promising coronavirus vaccine raised hopes. Investor confidence rose when US drugmaker Moderna said its experimental COVID-19 vaccine was 94.5 percent effective at preventing infections. The Sensex rose 315 points to finish at a new closing high of 43,952.7 while the Nifty rose 94 points to a record close of 12,874. Also in intraday trading, benchmarks hit new highs. The Sensex rose to 523 points to its new all-time high of 44,161 while the Nifty rose 154 points to its new high of 12,934.
Welcome to our market blog!
Hi, I’m Mousumi Paul from the CNBC-TV18 desktop and I’ll be updating all the live action on the market today! For starters, the Indian stock market is expected to open lower on Wednesday, as investors remain concerned about the increase in coronavirus cases despite vaccine hopes. At 7:25 am, the SGX Nifty was trading 30.5 points lower at 12,903.50, indicating a lower start for the Sensex and Nifty50.
