Author: Legal Parivar

The Reserve Bank of India (RBI) has extended the deadline for implementing rules regarding exchange-traded derivative contracts from April 5 to May 3, citing concerns raised about participation in the exchange-traded currency derivatives (ETCD) market in light of the RBI’s currency derivative norms. In response to these concerns, the RBI emphasized that the regulatory framework for ETCDs has remained consistent over the years, with no change in the RBI’s policy approach. The central bank’s circular dated January 5 stipulated that investors must ensure the existence of a valid underlying contracted exposure, which has not been hedged using any other derivative…

Avenue Supermarts, the company behind the DMart retail chain, witnessed a remarkable 5.8% surge in its shares, hitting a new one-year high of ₹4,715 during today’s trading session before closing at ₹4,645, up 4.13%. Investor optimism was fueled by the impressive business update for the fourth quarter of FY24 released by Avenue Supermarts, drawing positive attention from the market. This surge significantly elevated the notional value of stakes held by Radhakishan Damani and his family, who are the company’s promoters. According to Trendlyne shareholding data, Radhakishan Damani holds a 23.03% stake in the company, equivalent to 149,848,238 shares as of…

The Reserve Bank of India (RBI) announced on April 4 that it has imposed monetary penalties on five co-operative banks for breaching regulatory rules. These banks include Bassein Catholic Co-operative Bank, Tirumangalam Co-operative Urban Bank, The Tirupattur Urban Co-operative Bank, Nagpur Nagarik Sahakari Bank, and The Himachal Pradesh State Co-operative Bank, as stated in the release. According to the RBI, penalties of Rs 61.60 lakh were imposed on Bassein Catholic Co-operative Bank, Rs 28.30 lakh on Nagpur Nagarik Sahakari Bank, Rs 5 lakh on The Himachal Pradesh State Co-operative Bank, and Rs 25,000 each on Tirumangalam Co-operative Urban Bank and…

The Reserve Bank of India (RBI) announced on April 4 that it will hold a 14-day variable rate reverse repo (VRRR) auction worth Rs 1.25 lakh crore on April 5. “In light of the current liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on April 05,” stated the RBI in a release. The auction is scheduled between 1:30 PM and 2:00 PM, with the reversal of funds set for April 19. Typically, the central bank employs VRRR auctions to absorb excess liquidity from the banking system. As of April 3, the banking system…

Vodafone Idea is gearing up to raise ₹20,000 crore from the markets through a follow-on public offer (FPO), possibly launching as early as next week, as per sources familiar with the discussions. The company has enlisted Axis Bank, Jeffries Group, and State Bank of India as lead bankers for overseeing the share sale. A price range for the FPO is expected to be determined by early next week, likely at a discount to the current share price, which closed at ₹13.36 apiece on Thursday. Anchor investors, predominantly long-only investors, are anticipated to participate in the FPO, followed by a larger…

The National Stock Exchange (NSE) is preparing for its initial public offering (IPO) but awaits approval from the capital markets regulator, the Securities and Exchange Board of India (SEBI), according to CEO Ashishkumar Chauhan. Chauhan mentioned in a statement in 2023 that once SEBI is satisfied with NSE’s operations, the exchange will proceed with its IPO application. In December 2023, SEBI set conditions for NSE to address before granting approval, including maintaining glitch-free operations for a year, enhancing technological infrastructure, improving corporate governance, and resolving pending legal matters. The NSE had faced challenges in 2021 when trading was halted for…

Byju’s, facing challenges from investors including General Atlantic, Prosus, and Peak XV, filed a plea with the National Company Law Tribunal (NCLT) seeking arbitration in their ongoing dispute. Representing Byju’s, Dhyan Chinappa argued that an application under section 8 of the Arbitration and Conciliation Act should take precedence over the existing NCLT proceedings. The dispute arose from allegations that Byju’s violated a previous NCLT order by distributing shares without increasing its authorized share capital, as directed by the tribunal. Byju’s has refuted these allegations. The NCLT bench, composed of Justices K Biswal and Manoj Kumar Dubey, has given Byju’s 10…

On Thursday, the National Company Law Appellate Tribunal (NCLAT) held its decision on the petitions filed by IDBI Bank and Axis Bank, contesting the now-canceled Zee-Sony merger. Scheduled for April 15, the appellate tribunal will determine whether challenges to the legal approval of the Zee-Sony merger can proceed given the merger’s cancellation. IDBI Bank and Axis Bank had requested NCLAT to postpone the case until the National Company Law Tribunal (NCLT) decides on Zee’s plea regarding the merger’s enforcement. However, Zee argued that the pending plea in NCLT shouldn’t affect the ongoing case and urged NCLAT to continue its hearing.…

Trust Fintech made a robust debut on the stock market on Thursday, with its shares being listed at a premium of 41.83% on NSE SME. The opening price stood at ₹143.25 per share, significantly higher than its issue price of ₹101 per share. The IPO listing of Trust Fintech met market expectations. Prior to the listing, the Grey Market Premium (GMP) for Trust Fintech IPO was ₹45 per share, suggesting a potential listing price of around ₹146 per share, reflecting a premium of 44.55% over the IPO price, as observed by stock market analysts. Trust Fintech Ltd, a software development…

Shares of Avenue Supermarts Limited, the operator of the DMart chain of stores, surged by 6 percent to reach a new 52-week high of Rs 4,715 on the morning of April 4, following the company’s announcement of a 20 percent increase in standalone revenue for the March quarter. As of 9:40 am, the stock was trading at Rs 4,667, reflecting a 4.6 percent increase from the previous close. Over the past month, the share has seen a remarkable surge of over 20 percent. The company reported a revenue rise to Rs 12,393 crore in the final quarter of FY24. In…