Money returned to investors via buybacks, dividends 1.5x than raised: Sebi

By: |
New Delhi | Published: September 7, 2017 2:50:46 AM

Securities and Exchange Board of India chairman Ajay Tyagi on Wednesday said the amount returned to investors through buybacks and dividends was 1.5 times more than the amount raised through equity capital in FY17. Tyagi was speaking at a capital markets summit organised by FICCI in Mumbai.

Sebi, investment, FICCIFICCI senior vice president and Edelweiss Group chairman and CEO Rashesh Shah (left) and Sebi chairman Ajay Tyagi at the 14th Annual Capital Market Conference in Mumbai on Wednesday. (Ganesh Shirsekar)

Securities and Exchange Board of India chairman Ajay Tyagi on Wednesday said the amount returned to investors through buybacks and dividends was 1.5 times more than the amount raised through equity capital in FY17. Tyagi was speaking at a capital markets summit organised by FICCI in Mumbai.

“Of course, partly this is encouraged by tax benefits. We have found that capital returned to shareholders in the form of dividends and buybacks was 1.5 times the amount raised through equity capital in FY17. Though equity capital raised was pretty impressive, this shows that in FY17 more money was returned to investors than raised from investors,” he said.

Stating that Indian market is coming of age, Tyagi said the total capital raised by way of the public offer of equity shares in FY17 was `32,520 crore against `9,790 crore in FY14. Tyagi further said that IPOs of over rs 50,000 crore have been filed with Sebi.

The Sebi chairman observed that the size of OFS through IPOs has been increasing,and  this means that the market is providing viable exit opportunity for investors. Tyagi blamed the high indebtedness of large corporates as the reason for investors to shy away from investing afresh. He also called for increased coordination between regulators to ensure the twin-balance sheet issues are resolved at the earliest. “This is one issue which  needs to be addressed and I feel all regulators need to collectively work to resolve it,” he said.

Tyagi further said that the Uday Kotak committee on corporate governance is expected to submit its report by the month-end. Sebi had set up a 21-member panel on June 2 this year to advise it on issues relating to corporate governance. It includes representatives from companies, stock exchanges, professional bodies, investor groups, law firms, academicians, and Sebi officials.  “We feel much needs to be done on corporate governance. We are very serious that issues which enhance participation of minority shareholders and protect their rights, independence of independent directors and their active participation are in place,” Tyagi added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop