HSBC downgraded Indian equities to ?neutral? from ?overweight?, citing a sharp rise in the cost of equity for companies and a slowing growth. The bank said India will continue to struggle with the trade-off between defending a currency and supporting growth. The main catalyst for recent volatility in Indian equities was when policymakers decided to tighten liquidity to stem capital outflows, HSBC added. J.P.Morgan also downgraded Indian shares on Tuesday to ?neutral? from ?overweight?, citing strain in balance of payments.
?AMCs to ensure compliance by overseas distributors?
Mutual Fund companies will have to ensure compliance to various norms by their foreign distributors, as market regulator Sebi has exempted overseas agents from registration with Indian industry body Amfi. AMCs would be responsible for the compliance of overseas distributors, in the absence of an Amfi registration, according to a circular issued by Association of Mutual Funds in India. ?AMCs are required to ensure compliance by the overseas distributors with the extant laws, rules and regulations of jurisdictions where they carry out their operations in the capacity of distributors while empanelling them,? the circular said. ?It is clarified that since Amfi registration is not required by Sebi. Amfi would not be carrying out due diligence on these distributors on behalf of the mutual fund industry. AMCs will be fully responsible for any Sebi-related requirements on these distributors,? it added.
Sebi revokes curbs on Bhagyashree Leasing
Sebi on Friday revoked restrictions on Bhagyashree Leasing and Finance, its directors and promoters after the company complied with the minimum 25% public shareholding norms. In an order on Friday, Sebi said it did not propose to initiate any further action against Bhagyashree Leasing, its promoters and directors, as the firm ?has complied with the MPS (minimum public shareholding norms, though belatedly…?. ?…hereby revoke the directions vide the interim order dated June 4, 2013 against the company,? Sebi said.
