P-notes invst hits 5-yr low of Rs 1.35 lk cr in July-end
NEW DElHI: Investments in the domestic capital market through participatory notes (P-notes) slumped to a five year low of Rs 1.35 lakh crore in July-end amid stringent norms put in place by Sebi. The total value of P-notes investments in Indian markets -- equity, debt and derivatives -- declined to Rs 1,35,297 crore at July-end from Rs 1,65,241 crore at the end of June, according to Sebi data. This was the lowest level since July 2012 when the cumulative value of such investments stood at Rs 1,29,586 crore. P-notes are issued by registered foreign portfolio investors to overseas players who wish to be a part of the Indian stock markets without registering themselves directly. They however need to go through a proper due diligence process. Of the total investments in July, P-note holdings in equities were at Rs 1 lakh crore and the remaining were in debt and derivatives markets. Besides, the quantum of FPI investments via P-notes fell to 4.4 per cent in July from 5.7 per cent in the preceding month. In July, markets regulator Sebi had notified stricter P- notes norms stipulating a fee of $1,000 that would be levied on each instrument to check any misuse for channelising black money.
Trade deficit may improve to $10.3 bn in Aug: Report
NEW DElHI: India's trade deficit is expected to improve in August to about $10.3 billion from $11.5 billion in July, largely on moderation in export as well as import growth, says a Morgan Stanley report. According to the global financial services major, the moderation, on a year-on-year basis, is likely owing to higher oil prices and unfavourable base effects. "We estimate a moderation of export growth to 3.4 per cent year-on-year in August from 3.9 per cent in July and imports of 11.3 per cent in August from 15.4 per cent in July," Morgan Stanley said in a research note. The report noted that gold imports are also likely to have remained strong in August at around 61 tonnes (USD 2.5 billion), though lower than the pre-GST levels of about 130 tonnes ($5.4 billion).
‘Interest obligation delays due to cash flow mismatches’
NEW DElHI: JSPl Chairman Naveen Jindal has said that brief discrepancy in the flow of cash last fiscal led to temporary delays in meeting some interest obligations of the company. The debt-laden firm had defaulted in December on interest payment on non-convertible debentures. "JSPl faced short-term cash flow mismatches during FY 2016-17, which resulted in temporary delays in meeting a few interest obligations," Jindal said in the company's Annual Report 2016-17. For suitable solutions, he said, the company continuously engaging with its long-term banking partners. Jindal said that he acknowledges faith and trust reposed by the banking partners in the company during the challenging times. “Since inception, JSPl (Jindal Steel and Power ltd) has had an impeccable track record for meeting all its financial commitments; and remains committed to honour all its current and future obligations,” he said.