Minimum issue size for non-profits at SSEs may be cut by a half

The Securities and Exchange Board India (Sebi) has proposed to reduce the minimum issue size for non-profit organisations (NPOs) on social stock exchanges (SSEs) by 50%, and application size by 95% to facilitate more fundraising.

A consultation paper issued on Tuesday stated that both the NSE and BSE have set up the SSE segment, and 31 NPOs were registered in this segment across both exchanges, as of August 23. An NPO is required to be registered with the SSE to raise funds.

This is because the SSE concept is at an initial stage and NPOs may find it difficult to raise Rs 1 crore from a limited set of investors, says the regulator. In addition, investors are not sufficiently aware of the SSE framework. Consequently, it may not be easy for such NPOs to find investors to raise the stipulated Rs 1 crore. Further, the minimum fund flow requirements for the past financial year of the NPO on the SSE has been fixed at Rs 50 lakh (for annual spending) and Rs 10 lakh (for funding), stated the paper.

As regards the minimum application size for public issue of a ZCZP, it has been proposed to reduce the present Rs 2 lakh threshold to Rs 10,000. Lowering the same could help a large number of investors who may like to subscribe to ZCZP of more NPOs, says the paper. Besides, Rs 2 lakh is deemed too large for those donating on a regular basis.

Among other proposals is to exempt educational institutes from registration under Section 80G of the Income Tax Act, 1961, given that these entities use their income solely for educational purposes and not for profit, similar to charitable institutions. Further, the term ‘social auditor’ will be replaced by ‘Social Impact Assessor’ as the term ‘audit’ has a negative connotation.

The format and detail of past social impact to be provided by NPOs can be based on past practice of the NPOs, as restating the past social impact assessment into a format prescribed by Sebi would be a costly and time-consuming exercise for NPOs, it said.

Sebi has sought comments on the proposals by September 19.

Heavy rainfall lashes Chennai! Schools declare holiday as city reports waterlogging in many areas – In Pics

1/8

Heavy overnight rainfall lashed Chennai and its suburbs. Authorities declared a holiday in schools on Monday. At the airport, International flight operations were also affected. Around 10 incoming flights (including from Doha and Dubai) were diverted to Bengaluru. Downpour also affected departure.However, the showers brought relief to people from the sweltering heat that the city and its nearby districts had been witnessing over the past few days.The weather office has forecasted more spells of rain for the city and its suburbs on Monday.Moderate thunderstorm with “moderate rain is very likely” in isolated places over Chennai, Tiruvallur, Chengalpattu, and Kanchipuram districts, said Regional Metrology Department, Chennai, reported news agency ANI. Here are some pictures. Have a look: 

2/8

Chennai: Aotorcyclist drives past the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

3/8

Chennai: Vehicles wade through the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

4/8

Chennai: Motorcyclists drive past the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

5/8

Chennai: Vehicles wade through the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

6/8

Chennai: Motorcyclists drive past the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

7/8

Chennai: A cyclist rides past the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

8/8

Chennai: Vehicles wade through the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

After four weeks, gold rebounds, saves $1,900/ounce; traders should short on every bounce

By Jigar Trivedi

Weekly, the metal gains 1.4% after four consecutive periods of declines. Initially, the yellow metal dropped below $1,885 an ounce on Friday, facing pressure from a strong dollar as investors continued to gauge the monetary policy outlook following Federal Reserve Chair Jerome Powell’s Jackson Hole remarks. The banker noted caution is required in next meetings to assess the health of the economy, but further hikes won’t be ruled out since the regulator aims to bring inflation back to the target. At the same time, traders bet on a possible pause in tightening from the ECB due to the weak European data. More insights on that could be provided in Lagarde’s comments later in the day. Previously, two Fed officials indicated that the jump in bond yields could complement the central bank’s effort to slow the economy and reign in price pressures without needing to raise rates.

Dollar Index firms at 11-week high

The dollar index rose above 104.2 on Friday, reaching its highest levels in eleven weeks and on track to advance for the sixth straight week as investors digested Federal Reserve Chair Jerome Powell’s Jackson Hole speech. Powell’s statement emphasized the US Federal Reserve’s commitment to bringing inflation back to 2% and stated that the central bank is ready to hike rates if needed. At the same time, Powell suggested the Fed could hold rates steady at its next meeting in September to assess the incoming data and the evolving outlook and risks.

US durable goods orders fall the most in over 3 years

New orders for manufactured durable goods in the US plummeted by 5.2% in July 2023, following a downwardly revised growth of 4.4% in June and exceeding market expectations for a 4.0% decline. It was the sharpest decrease in durable goods orders since the aftermath of the COVID-19 outbreak in April 2020, driven by a significant drop in demand for transport equipment.

US 10-year treasury yield retreats further

The yield on the 10-year US Treasury note retreated toward 4.2% after hitting a 15-year high of 4.342% on August 21st, triggering a sharp rebound for government bonds worldwide as credit markets continued to assess the policy outlook for the Federal Reserve and gauge the impact that higher bond supply may have on their bidding levels. Cooler-than-expected PMI figures engaged bond buyers in the market to take further advantage of the recent slump in Treasury securities, reflecting bets that fears of a slowing US economy will force the Fed to ease its hawkishness. Still, other data releases countered slowdown fears, as strong retail sales underscored the resilience of the US consumer while robust industrial growth and a relatively tight labor market suggested the US central bank may still have more room to tighten monetary policy. Additionally, risks remain for bond prices in the secondary market due to concerns about higher long-dated debt issuance from the Treasury this month.

Outlook

US will release consumer confidence on Tuesday but most importantly, ADP employment change for August and Q2 GDP on Wednesday and Non-farm payrolls on Friday will be releasing. From the technical angle, $1,885/ounce, the low point of last week is now a crucial support for now for gold price. In case the yellow metal with the support of the volumes, falls below it, may fall further to $1,860 an ounce. The dollar index too has appreciated last week, hence if the bull-run continues in the greenback, the yellow metal may decline further. Hence we recommend to short on every bounce.

(Jigar Trivedi, Senior Research Analyst – Currencies & Commodities at Reliance Securities Limited. Views expressed are the author’s own.)

The stability and benefit of investing in Digital Gold

By Mahendra Luniya

Gold has been a part of portfolios for long times. It has proven to be a hedge against inflation and has helped in difficult times. Now the world is witnessing a shift in the way investors invest in gold. The shift is towards digital gold, an easier and more transparent way of investing in gold. Digital gold products have mitigated many concerns related to gold such as purity, additional charges, storage burden and more. Let us discuss the two prominent types of digital products.

2) Gold ETF: These are mutual funds which invest in gold and are regulated by SEBI. This is one of the most pocket friendly way of owning gold as the ticket size to buy is one unit, the price of which is around Rs.50/-

Stability and benefits in digital options

1) SGBs: SGB is backed by the RBI making it one of the least risky investments and the 2.5% interest gives an additional earning which makes it more attractive as earning interest is not possible in any other form of gold investing. This product even makes accumulation easy as one can easily buy units from RBI (when they are issued) or from the secondary market where they are tradable like any other listed security. The product adds stability to investing in digital gold as it is backed by RBI so there is negligible risk of default or purity of the gold. The product makes buying gold cheap. GST is not applicable on the SGB purchase so the investors save 3% of their money while buying.

These bonds also have discounts: – Yes, a discount on gold price! The bonds being a new product have low liquidity in the stock markets. Hence these bonds trade at a discount to the spot market price of gold. So, an investor who wants to buy and hold gold for the long term can consider buying SGBs from the stock market where it is witnessed that the discount ranges from 3-7% against the on-going market price of gold.

2) Gold ETFs: These mutual funds invest in pure gold. Investors can buy and sell these from the stock exchanges where these are listed. Gold ETFs give investors the option to invest in very small amounts. The price of each unit is currently around Rs.50/- allowing investors to allocate money to gold in an easier and effective manner. These funds are regulated by SEBI and hence adding trust to the investment option.

These ETFs also do not attract the 3% GST on purchase. Although they attract an annual expense fee which can go up to maximum 1% per year. One should compare the expense ratios of different fund houses while buying Gold ETFs.

Benefit of digital gold compared to physical gold

1) Purity: There have been concerns related to purity of the gold being bought in the physical form for years, whereas in digital gold this concern is completely mitigated.

2) GST: Investors are required to pay 3% GST while buying gold in physical form thus reducing the potential returns. That isn’t the case with digital products.

3) Making charges: Making charges are charged by jewelers on buying gold bullion or jewelry. They can range from 2-18% depending on the type of gold purchased. This money is saved in digital gold.

4) Storage: Most of the investors in India buy gold bullion or jewelry and keep it in Bank lockers. These lockers attract annual rents. This yearly outflow of money is not required in digital options.

5) Interest: The physical option requires yearly outflow of money, to keep gold secure whereas in products like SGB investors get a yearly inflow of Interest.

6) Price difference: While dealing in physical gold one must have noticed two different prices, one for selling and one for buying. While selling gold investors jewelers pay less to the investors as compared to what is prevailing in the market. This difference can range from 2-3%. This is not the case in digital gold where the buying and selling prices are the same.

Thus, to conclude, any person who wants to buy gold only from the perspective of investment should always think of digital gold so that they have most of the returns and enjoy the benefits it carries.

(Mahendra Luniya, Chairman, Vighnaharta Gold. Views expressed are the author’s own. Please consult your financial advisor before investing.)

TUSD user data gets potentially released over TrueCoin’s third-party vendor infringement 

According to Cointelegraph, the creators of TrueUSD (TUSD), a stablecoin, announced a potential leak of certain Know Your Customer (KYC) and transaction history data. This initiative took place after one of TrueCoin’s third-party vendors was compromised.

Sources revealed that TrueCoin operated TUSD stablecoin till July 13, 2023. On October 16, 2023, a third-party vendor’s security team mentioned TrueCoin as “an anomalous account change within [TrueCoin’s] organisation made by a compromised support vendor.” It is believed that there has been a compromise of some of TUSD’s existing customer data.

Furthermore, the TUSD system is expected to be secure and not attacked. Both the TUSD system and TUSD’s reserves are unaffected, Cointelegraph concluded.

(With insights from Cointelegraph)

Follow us onTwitter,Facebook,LinkedIn

Jio Financial Services shares recover after hitting lower circuit limits for five days

Shares of Jio Financial Services Ltd, the demerged financial services unit of Reliance Industries, bounced back on Friday to settle in the positive territory on the NSE after unabated selling pressure since its market debut on Monday.

Recovering from a four-day slide, JFSL ended at Rs 214.50, up 0.49 per cent on the NSE. During the day, it had fallen 4.98 per cent to hit the lower circuit limit of Rs 202.80.

During early trade, shares of the firm hit the lower circuit limit of Rs 205.15. The company commands a market valuation of Rs 1,34,848.46 crore.

Shares of JFSL listed on the bourses on Monday, with the stock falling nearly 5 per cent to hit the lower circuit limit.

It fell 5 per cent to hit the lower circuit limits on Tuesday, Wednesday and Thursday.

JFSL demerged from Reliance last month.

On Thursday, BSE said that since the stock has hit lower circuit limit for two consecutive days — Thursday and Friday — the removal of the company from all the S&P BSE indices will be postponed by another three days.

“JFSL will now be removed from all the S&P BSE indices effective prior to the open of trading on Friday, September 1,” the bourse said.

Additionally, should JFSL not hit the lower circuit limit on either of the next two days but hits the lower circuit limit on the third day, the removal of JFSL from all the S&P BSE indices will be postponed, it said in a notice.

Asia Index Private Ltd had earlier announced that effective prior to the opening of trading on Tuesday, August 29, JFSL will be removed from all the S&P BSE indices following its listing on Monday, August 21, due to its spin-off from its parent, Reliance Industries.

Asia Index is a joint venture between BSE and S&P Dow Jones indices.

Reliance Industries demerged its financial services undertaking into Reliance Strategic Investments Ltd, which was renamed as JFSL.

Investments via P-notes rise to Rs 1.23 lakh crore in July-end, highest since December 2017

Investment in the Indian capital markets through participatory notes rose to close to a six-year high at Rs 1.23 lakh crore in July-end, making it the fifth consecutive monthly increase, on the back of stable macroeconomic fundamentals.

The amount has reached the highest level since December 2017 — when investment through the route stood at Rs 1.25 lakh crore, data with the Securities and Exchange Board of India (Sebi) showed.

Participatory notes (P-notes) are issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly.

They, however, need to go through a due-diligence process.

According to Sebi data, the value of P-note investments in Indian markets — equity, debt, and hybrid securities — stood at Rs 1,22,805 crore at the end of July as compared to 1,13,291 a month earlier.

In comparison, investment through the route was Rs 1,04,585 crore in May-end, Rs 95,911 crore in April-end, Rs 88,600 crore in March-end, Rs 88,398 crore in February-end and Rs 91,469 crore in January-end.

The growth in P-notes generally aligns with the trend in FPI flows. When there is a global risk to the environment, investment through this route increases, and vice-versa.

Market analysts said one of the prime factors for the growth in P-notes investments is the stable Indian economy amid an uncertain global macro backdrop.

Additionally, the slowdown in the Chinese economy has led investors to shift their focus towards India.

Of the total Rs 1.22 lakh crore invested through this route till July, Rs 1.13 lakh crore was invested in equities, Rs 9,531 crore in debt and Rs 299 crore in hybrid securities.

In addition, assets under custody of the FPIs grew to Rs 57.53 lakh crore in July-end from Rs 55.63 lakh crore in the preceding month.

Meanwhile, FPIs’ investment in Indian equities was at Rs 46,618 crore in July, while they also infused Rs 3,726 crore in the debt market.

Cyclone Biparjoy: High waves hit Mumbai! Gujarat braces itself as sea turns rough – See Pics

1/10

The extremely severe cyclonic storm ‘Cyclone Biparjoy’ weakened on Tuesday into a very severe cyclonic storm, the India Meteorological Department (IMD) informed. Currently, the cyclone is centered approximately 290 km southwest of Gujarat’s Porbandar and is moving northwards at a speed of five kilometers per hour. According to the weather department, Biparjoy is expected to make landfall in Gujarat’s coastal region as well as adjoining Pakistan coasts on Thursday. NDRF teams have been deployed in Mumbai and Gujarat as the states prepare for impact. Here we bring to you a glimpse of these sea-side areas where people are evacuating as part of safety measures. (PTI Photo)

2/10

A man stands at Bandra beach while the high tidal waves lash the shore as the Biporjoy cyclone intensifies into a severe cyclonic storm, in Mumbai. (PTI Photo/Kunal Patil)

3/10

Children play as high tides crash at the sea front at Colaba, ahead of cyclone Biparjoy’s landfall in Kutch, in Mumbai. (PTI Photo)

4/10

High tides crash at the sea front at Colaba, ahead of cyclone Biparjoy’s landfall in Kutch, in Mumbai. (PTI Photo)

5/10

Satellite image showing the location of Cyclone Biparjoy in the Arabian Sea on Monday. Meanwhile, IMD said that the cyclone may cause extensive damage and Gujarat’s Kutch, Devbhumi Dwarka, Jamnagar districts are likely to be most impacted. (PTI Photo)

6/10

A fisherman colony wears a deserted look ahead of the landfall of Biparjoy cyclone, at Jakhau port in Kutch district. Additionally, the IMD on Tuesday issued an Orange alert for Saurashtra and Kutch coasts in Gujarat as the cyclonic storm Biparjoy is set to cross the Jakhau Port in Gujarat by the evening of June 15 as Very Severe Cyclonic Storm. (PTI Photo)

7/10

Fishing activities along Gujarat’s south and north coasts have been suspended and authorities began evacuating people in districts by the sea in view of cyclone ‘Biparjoy’. (PTI Photo)

8/10

Villagers leave Jakhau village during evacuation ahead of cyclone Biparjoy’s landfall. The Gujarat government has picked up evacuation efforts with the aim to evacuate people within 10 km from the coast in view of the approaching very severe cyclonic storm. (PTI Photo)

9/10

National disaster response force (NDRF) personnel brief citizens ahead of cyclone Biparjoy’s landfall, at Mandvi, in Kutch. A total of 12 teams each of the NDRF and SDRF have been deployed in the districts that are likely to be affected by the cyclone and arrangements have been made for the accommodation, food and medicine of the evacuated people. (PTI Photo)

10/10

Police personnel on patrol while high tidal waves lash the shore as the Biporjoy cyclone intensifies into a severe cyclonic storm. Meanwhile, PM Modi and Amit Shah have attended separate review meetings in order to ensure cyclone preparedness. (PTI Photo)

NCCF procures 2,826 tonnes onion from farmers for buffer stock; to scale up buying in coming days

The National Cooperative Consumers’ Federation of India (NCCF) on Saturday said it has purchased 2,826 tonnes of onion at Rs 2,410 per quintal directly from farmers in the last four days mostly from Maharashtra as it resumed procurement of the bulb for a higher buffer stock.The government enhanced the onion buffer stock target from 3 lakh tonnes to 5 lakh tonnes this year.

Two cooperatives, NCCF and NAFED, have been mandated to procure 1 lakh tonnes each directly from farmers at Rs 2,410 per quintal to avoid panic selling amid the imposition of an export curb to control domestic prices.The two cooperatives are also disposing of the government’s buffer stock of onion in both wholesale and retail markets to control the rising retail prices of onion, which at present are ruling up to Rs 60 per kg depending on the quality in Delhi and other cities.

The 11 states and union territory include Delhi, Andhra Pradesh, Telangana, Odisha, Assam, Kerala, Tamil Nadu, Karnataka, Punjab, and West Bengal, she added.”We are retailing the onion buffer stock both through physical and e-auction mode to bring greater transparency. The first e-auction of onion was done on August 25 in Delhi-NCR and 36 tonnes were sold,” Joseph Chandra said.This will be replicated in two cities of Punjab in the coming days, she said and added that the cooperative is also trying to wholesale onion through NCDFI and Bhim portals.

On the retail front, NCCF said it has already started selling onions in Delhi-NCR and Hyderabad on a limited scale. This will be scaled up in the coming week.”Onions are being sold at a subsidised rate of Rs 25/kg without quantitative restrictions,” she added.On August 19, the government imposed a 40 per cent export duty on onions to restrict outward shipments and boost local availability amid apprehension about the Kharif output.