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1.  SEBI may relax norms for selling debt security on Exchanges!

As per the news published in ET, the SEBI may relax norms for unlisted companies to sell debt security on exchanges (BSE or NSE).

Let us understand this.

As of now, if any unlisted company wants to raise money by selling its debt security on the exchanges, have to comply with almost similar SEBI rules and regulation as required in case of equity shares listing on exchanges. This discourages unlisted companies to raise money by listing its debt security and this is a big opportunity lost for good unlisted companies to raise easy and cheap funds.

As per suggestions, SEBI may exempt Insider Trading rules, statutory auditor norms, and increase of filling financial results to one year from the current 6 months.”

Capital Small Finance Bank, the unlisted company, has already raised money by selling its debt security to the exchanges. This is the reason why Capital Small Finance Bank always gives 6month’s financial results to BSE and the same is uploaded on the website. Listing of a debt security by an unlisted company is good news for investors as they get regular updates/disclosures from a company as they have to comply with a lot of listing requirements. This increases transparency.

2. Steel prices are all set to rise!

The Steel price is set to increase by Rs.1000-1500 per ton. Oct-March is always been a strong quarter for demand in steel as Infrastructure activity picks up pace. This is positive news for Essar Steel, the unlisted company, which is acquired by Arcelor Mittal and Nippon steel in the joint venture.

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