Initial Private Opinion

Urgent - please update your RSS/Blog readers

Posted by Sandeep Parekh at 
If you were reading my blog entries in a blog/RSS reader, you will likely have to update the reader to the new website of my blog as Mint has upgraded the blog platform. You will continue to be directed to the right page if you go to the previous location by typing in the old location, but your blog/RSS readers will not update automatically. Please...

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SEBI proposals on financial disclosures - viva short term

Posted by Sandeep Parekh at 
SEBI's advisory committee on disclosures and accounting standards has come out with several recommendations for improvement of disclosures standards of listed companies. One of the proposals is to increase the frequency of the disclosure of the balance sheet from the current annual basis to a semi annual basis. This is being recommended on the basis...

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SEC blames itself - the report

Posted by Sandeep Parekh at 
I wrote this week about the report of the Inspector General of the US regulator SEC severely criticising the workings of the SEC in not uncovering the Bernie Madoff scam. The report is now public and I was impressed that such a self critical report was put up on the main page of the SEC's website. Here is the 22 page executive summary of the report...

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High Court states the law, let the SC obey

Posted by Sandeep Parekh at 
In a wonderful and rare event, the high court has shown enormous spinal righteousness in holding the correct law on right to information - that Supreme Court and other judges are not above the law and must respond to right to information (or freedom of information) requests. This was contrary to the hopeless argument of the Supreme Court judges that...

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Insurance - some honest confessions

Posted by Sandeep Parekh at 
It was refreshing to see some honest talk by an insider about insurance policies in today's WSJ. I have often blogged about the extortionist commissions (upto 40% according to this piece - anything in excess of 2.5% is excessive in my opinion, particularly if it is a mutual fund being sold in the garb of an insurance policy) and widespread mis-selling...

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ICICI claims to be an Indian bank

Posted by Sandeep Parekh at 
My post of last week on ADR/GDRs is on the issue of whether they should be treated as voting shares - which they should be as they do in fact carry voting rights. Today ICICI is claiming to be an Indian bank despite 81% foreign ownership. According to ET : NEW DELHI: ICICI Bank has asked the government not to take into account overseas securities like...

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Are American Depository Receipts shares?

Posted by Sandeep Parekh at 
Today's Economic Times reports RBI is considering American Depository Receipts (ADRs) as 'quasi equity' not carrying voting rights and therefore not be considered as FDI. This view perpetuates the deeply flawed view taken by SEBI as well, that ADRs/GDRs do not carry voting rights 'till converted into shares'. In fact, ADRs and GDRs...

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Bombay Stock Exchange - outsourcing the exchange

Posted by Sandeep Parekh at 
I don't get it. The BSE is outsourcing its exchange and clearing system to another exchange for currency and interest rate futures. And that too in favour of a new exchange which has no experience or brand. BSE has also invested 15% in this new exchange. The only USP of this exchange is that it has institutional shareholders who could bring in business...

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Is the US SEC becoming a bit too fat?

Posted by Sandeep Parekh at 
The American securities regulator has sought $1.2 billion for its budget next year (a 20% increase in the budget). That is a staggering amount compared to the $15 million odd India's SEBI spends each year. Clearly, with the beating the SEC's reputation has taken over the past nearly decade long period, the extra 20% the SEC is seeking may be...

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Is RBI running an illegal exchange?

Posted by Sandeep Parekh at 
In a somewhat cryptic Board agenda note of SEBI, the securities regulator seems to be suggesting that the RBI is running an illegal exchange under the Securities Contracts (Regulation) Act 1956" 4.6 The stock exchange under the law is a body corporate under the Companies Act for the purpose of assisting, regulating or controlling business of buying...

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Disclosure of illness of company director

Posted by Sandeep Parekh at 
It is a hot question internationally. Should the director/top management and the company be obliged to disclose the ill health of such director/top management where the fate of the company is tied to the health of such senior director/executive? The topic has gained currency with the health of Steve Jobs - which investors tie to the fate of Apple Corp...

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ICICI - come here and sue me

Posted by Sandeep Parekh at 
It seems ICICI Bank has sued a senior officer of HDFC Bank for saying that it tries hard to avoid recruiting ICICI employees because of its aggressive culture. I have written several posts about the crooked and hopeless culture of ICICI bank in the past - come here ICICI and sue me for stating the following: a) for stealing my money (misappropriating...

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Indian Budget 09 - early thoughts - stock markets

Posted by Sandeep Parekh at 
The budget speaks of creating deeper public capital markets: " 39. The average public float in Indian listed companies is less than 15 per cent. Deep non-manipulable markets require larger and diversified public shareholdings. This requirement should be uniformly applied to the private sector as well as listed public sector companies. I propose...

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Indian Budget 09 - early thoughts - STT

Posted by Sandeep Parekh at 
The Indian Budget 2009 has abolished the Commodity Transaction Tax, a tax on every transaction in the commodities markets. What is interesting is that the Securities Transaction Tax, a similar tax on securities market transactions, has not been abolished. This blog has maintained support for the STT even while economists have called it a 'sand in...

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SEBI - industry representation in SEBI

Posted by Sandeep Parekh at 
In a welcome change, SEBI has appointed someone from the market as an executive director. See SEBI Press Release here: "Shri K.N. Vaidyanathan takes charge as Executive Director, SEBI Shri Kavasseri Narayanan Vaidyanathan took charge as Executive Director, Securities and Exchange Board of India in Mumbai today. Prior to this assignment, he was...

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