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Friday, June 19, 2009 11:24 AM

Superior voting rights - outlawed

In yesterday's Board meeting SEBI has come out with a prohibition on issuing superior voting rights. This is the correct thing to do and is an internationally accepted practice. The Board decision as reflected in the PR says: "(iv) Issue of shares...
Posted by Sandeep Parekh | with no comments
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Friday, March 13, 2009 4:43 PM

G20 - if wishes were horses

Financial Times has a terrific graphic on expectation of various countries from the G20 meet: G20 Wishlist Now don't get too optimistic with the outcomes from this meet. PS: A statement from the finance ministers and governors of the G20 countries...
Posted by Sandeep Parekh | with no comments
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Thursday, January 22, 2009 12:06 PM

Improved disclosure on pledged securities

Here is the contrarian view of the improved disclosure decided by the SEBI Board yesterday regarding disclosure of pledged securities by controlling shareholder (promoters). It is too little too late. I've been going hoarse talking about a complete...
Posted by Sandeep Parekh | with no comments
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Monday, January 19, 2009 1:49 PM

Insider trading - short swing profits

I wrote a piece in the Economic Times recently on the 'short swing profit' rule, which was proposed some time back. However, what has been passed by the regulator is a short swing prohibition. This kind of prohibition is unprecedented anywhere...
Posted by Sandeep Parekh | 2 comment(s)
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Tuesday, January 06, 2009 12:59 PM

Financial crisis

Today, I along with Prof. Arpita Ghosh, my colleague at the institute, spoke on the financial crisis at the ‘ IIM-A Doctoral Colloquium 2009 ’. A member from the institute in the audience had some views, many of which I don’t agree with. a) Markets are...
Posted by Sandeep Parekh | 3 comment(s)
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Monday, December 08, 2008 11:08 AM

Insider trading laws should not become a booby trap

I have written a piece in today's Economic Times on the new insider trading regulations. It hasn't appeared in all editions (at least in the Ahd edition), so here it is in full: Insider trading laws should not become a booby trap 8 Dec 2008 The...
Posted by Sandeep Parekh | 2 comment(s)
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Thursday, December 04, 2008 12:03 AM

Insider trading becomes outsider trading

The Securities and Exchange Board of India (SEBI) has recently amended the insider trading regulations. The two key amendments are: 1. Broadening of the definition of the term 'insider' to include anyone who has 'received' inside information...
Posted by Sandeep Parekh | 3 comment(s)
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Friday, November 28, 2008 10:08 PM

Long pain ahead in the world

The similarities of the present crisis with the 1929 era are looking eerie (more on that later). While any comparision with the past may be misleading, this surely is not a self correcting 1987 style crash . It's here to stay. Even if one were to...
Posted by Sandeep Parekh | with no comments
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Tuesday, November 04, 2008 11:08 PM

Creeping capitulation - takeover regulation amendments

If you had any doubts about my views of the perversity of the SEBI action on relaxing the creeping acquisition limits (blogged yesterday, linked here ), take a look at what the Hong Kong regulator has said about similar lobbying efforts by promoters,...
Posted by Sandeep Parekh | 2 comment(s)
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Tuesday, November 04, 2008 12:10 AM

The new amendments to the takeover regulations - misguided or sloppy? Yes.

SEBI has once again played around with the numbers in the takeover regulations. In light of the recent downward movement of prices, it seems that SEBI is attempting to make it easier for promoters to acquire shares from the market without making an open...
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Monday, November 03, 2008 11:07 AM

Buy back of securities by companies resulting in compulsory takeover offer - new SEBI amendment to hurt ordinary shareholders

My friend Jayant Thakur has recently blogged here and here about buy backs and its impact on the takeover regulations. I fully disagree with his views. Here is the issue in brief. When a company does a buy back of its equity shares, its promoters may...
Posted by Sandeep Parekh | 4 comment(s)
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Friday, October 17, 2008 3:30 PM

Economist positive on India

The Economist thinks that things will turn out well in the medium and long term for India, once the current global meltdown settles down. Here is an excerpt. "All of this might mean that once the dust settles, India is likely to re-emerge as an attractive...
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