Month: June 2021

Does Siva settlement signal banks’ disillusionment with IBC?, BFSI News, ET BFSI

Banking & Finance

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Lenders of Siva Industries and Holdings have approved a one-time settlement proposal from the promoter under which they will take a 93.% haircut and just Rs 5 crore upfront cash.

Of the company’s total dues of Rs 4,863 crore, the IDBI Bank-led lenders will get Rs 313, excluding upfront payment, within 180 day of receiving NCLT nod.

They will recover Rs 318 crore, with Rs 5 crore as upfront cash, out of the company’s total dues of Rs 4,863 crore. This amounts to a haircut of 93.5 per cent.

The holding company owes financial and other creditors about Rs 5,000 crore. Tata Sons had filed a claim of Rs 863 crore against the Sivasankaran group company but that was rejected by the latter’s interim resolution professional.

The creditors received an offer from Mauritius-based Royal Partner for the company but that was rejected on the grounds that the investor had been unable to demonstrate its seriousness in completing the deal.

Unusual settlement

Bankruptcy experts have termed the development unusual, citing the rejection of such offers by promoters in the past.

The acceptance of Sivasankaran’s offer differs from the usual pattern of rejection by creditors of such deals proposed by promoters seeking to withdraw their companies from bankruptcy proceedings.

Atul Punj of Punj Lloyd, Videocon’s Venugopal Dhoot, Sanjay Singal of Bhushan Power and Steel, and the Ruias of Essar Steel had all made offers to creditors to persuade them to drop bankruptcy proceedings. All were rejected.

In DHFL’s case, the promoter Kapil Wadhawan had offered to repay the debt in full, but the lenders ruled in favour of Piramal.

Experts say while banks may be getting the most out of such settlement in absence of any serious bid, but such a move weakens the IBC, especially Section 29A that bars promoters from bidding for their assets in a bankruptcy court. The Siva deal, if it goes through, could set a precedent of promoters striking settlement deals with banks when there are no bidders.

Other controversies

Sivasankaran, who was the founder of Aircel before he sold it to Malaysia’s Maxis Communications, is no stranger to controversy.

The South India-based businessman has been at the centre of a probe by the Central Bureau of Investigation (CBI) over alleged irregularities in loans obtained from IDBI Bank. Sivasankaran was accused of obtaining loans from IDBI Bank’s overseas branches and using the proceeds to repay loans obtained from the bank in India which had turned non-performing.

He was also accused by Cyrus Mistry of receiving favours from Ratan Tata such as the grant of a loan to buy a stake in Tata Teleservices. But these allegations were rejected by the Supreme Court in its verdict on the Tata-Mistry dispute delivered on March 26.

Siva Industries was admitted for bankruptcy proceedings on July 4, 2019, as per a public announcement uploaded on the website of the IBBI.



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Know All About New TDS Rules From July 1, 2021

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Taxes

oi-Vipul Das

|

The Finance Act of 2021 introduced some significant modifications to TDS standards such as purchases of goods, and higher TDS rates for non-filers of ITR. From July 1, 2021 new TDS norms for purchases of goods and higher TDS rates for non-filers of ITR will come into force. Section 194Q, which was recently added, is concerned with the tax deduction at source on the payment of a predefined amount for the acquisition of goods. The regulations of Section 194P shall not apply to a transaction on which tax is deductible under any provision of this Act and tax is collectable under the provisions of Section 206C, except in the case of a transaction defined under sub-section (1H) of Section 206C.

Know All About New TDS Rules From July 1, 2021

Sections 206AB and 206CCA make specific provisions for non-filers of income tax returns to subtract tax at source. With the insertion of new section 194Q for deduction of tax at source on payment of a certain sum for the purchase of goods, the Income Tax Department has stated on its website that “Any person, being a buyer who is responsible for paying any sum to any resident (hereafter in this section referred to as the seller) for purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, shall, at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier, deduct an amount equal to 0.1 per cent of such sum exceeding fifty lakh rupees as income-tax.”

For the considerations of this subsection, “buyer” implies an individual whose overall sales, net receipts or turnover from the business undertaken by him surpass ten crore rupees in the fiscal year immediately preceding the fiscal year in which the acquisition of goods is conducted. Where any amount referred to in sub-section (1) is credited to any account in the cashbook of the individual accountable to pay such income, either named as “suspense account” or by any other name, such credit of income shall be considered to be the credit of such income to the account of the payee, and the clauses of this section shall pertain accordingly, according to the Income Tax Department.

The other TDS provision applies to individuals who have not submitted ITRs in the two years before the year of TDS deduction. In such circumstances, the deductor of income should subtract tax at twice the appropriate rates for the applicable transactions or at 5%, whichever is higher. Taxpayers should also remember that the new deadline for linking Aadhaar to PAN is June 30. If it is not done on or before the deadline, the PAN will be considered inoperative, and the individual will be subject to penalties under the ITA for not quoting PAN, as well as higher TDS at a rate of 20%.

Story first published: Friday, June 18, 2021, 12:14 [IST]



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SBI New Personal Loan: Here’re The 10 Lesser Known Facts of The New Offering

Personal Finance

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Planning

oi-Vipul Das

|

In the midst of the Covid epidemic, the State Bank of India is promising its customers a customized SBI personal loan ‘Kavach Personal Loan’ with a low-interest rate, zero charges, and a low loan moratorium. Customers of SBI can apply for a loan from Rs 25,000 to Rs 5 lakh without any collateral with this SBI personal loan for Covid-19 treatments for themselves and their loved ones. But before settling with the latest offering of SBI, here are the 10 lesser-known facts of SBI Kavach Personal Loan, that you need to know about:

SBI New Personal Loan: Here’re The 10 Lesser Known Facts of The New Offering

  1. For coronavirus treatments, SBI is giving a collateral-free loan with the cheapest rates. The loan amount would range between Rs 25,000 and Rs 5 lakh, based on the eligibility of the borrower.
  2. The Kavach Personal Loan would have an annual interest rate of 8.5%. Loans will not be subject to any processing fees. Foreclosure charges and prepayment penalties have also been waived by SBI for its customers.
  3. SBI Kavach Personal Loan would have the lowest interest rates in this segment and a flexible term of 5 years. A three-month loan moratorium will also be provided to the eligible customers by SBI.
  4. Both salaried and non-salaried customers, as well as retirees and their family members, can apply for this new personal loan.
  5. Customers applying for this loan must submit a Covid-19 test report to the bank as a part of the documentation. To obtain this personal loan from the bank, the borrower does not need to provide any collateral.
  6. Those who test positive for Covid-19 on or after April 1, 2021 are eligible to apply for SBI Kavach Personal Loan.
  7. Customers can verify their eligibility and loan amount at their local SBI branch and can also acquire it using the YONO mobile banking app of SBI.
  8. Upon successful verification, the loan amount will be credited to the customer’s salary, pension, or savings account.
  9. SBI has also recently stated in a release that “Reimbursement of expenses already incurred for COVID-19 related medical expenses shall also be provided under the scheme.”The bank has also further said that “In these trying times, SBI is committed towards taking care of customers’ financial emergency for covid treatment and other personal expenses in order to effectively overcome the COVID battle.”
  10. By introducing this loan scheme, SBI Chairman Dinesh Khara has also said that “With this strategic loan scheme, our aim is to provide access to monetary assistance – especially in this difficult situation for all those who unfortunately got affected by COVID. It’s our constant endeavor at SBI to work towards creating financial solutions for customers suiting their requirements.”

Story first published: Friday, June 18, 2021, 11:05 [IST]



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This Father’s Day, organise your dad’s finances

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Our fathers have been our backbones since the time we hadn’t even entered the world. From meeting our smallest needs like our favourite toy still perched in our childhood room to help us get through our college tuition in most cases, our dads have always been there for us. With father’s day right around the corner, give your father the best gift that you can by helping him organise his finances and help him live a comfortable life further by helping him put the resources at his disposal to the best possible use.

Now, why should you organise your dad’s finances? He has been doing a great job at this himself. Well, the simple reason is that your father, having met all his financial obligations, may not have the time, resources or will to sit down and create a financial plan. However, it is now even more crucial for him to plan his finances for a smooth retirement and invest his time and money in streams that would generate steady income.

There are several steps that have to be taken when it comes to helping your dad organise his finances. Here’s all that you need to know:

Having the Talk

The first step is having the talk. Having an open conversation about your father’s existing liabilities and assets is a good way to start. This includes having full knowledge of the debts he has incurred, deposits and investments he has made and the estates that he owns.

This further includes taking into account his monthly expenses, health fund to be made, life insurance plan, the amount he would like to set aside for his retirement and how much more he needs to earn to be able to meet all this.

Clearing previous investment portfolio

Your father might have an existing investment portfolio consisting of mutual funds and stocks of various companies. As goals change, so do the investment avenues that are ideal for you. Going by this, for example, you might consider investing in large-cap companies which are more reliable when planning to generate steady revenue streams.

Thus, the existing portfolio should be cleared of irrelevant or underperforming investments as per the life stage your father is at and what are his goals behind financial planning. Also, reducing the number of investments in your portfolio to around 10-15 might be considered for easier handling.

Planning for contingency

The move towards the 40+ age bracket calls for keeping aside a contingency fund for any age-related health issues that may arise or even for the unlikely event of early retirement due to various reasons. Planning for a contingency fund may require him to keep aside a portion of his monthly income which needs to be determined based on his existing expenses and liabilities.

Ideally, an amount equal to the total 6 months of expenses that your dad incurs should be kept in the contingency fund however, it might differ depending upon the people he has to support.

Finding the best investments

After having a clear picture of the current financial situation of your dad and defining clear goals, the next step is finding the best investments for the money he has left after meeting his monthly expenses and keeping aside his monthly share for the contingency funds. Investment here doesn’t just mean investing in the market to generate profits but also investing in a life insurance policy or even investing in a diligent retirement plan.

All this forms a part of the retirement plan as well which basically has 2 aspects including keeping aside a lump sum amount of money and generating steady income streams for when you don’t have a fixed monthly salary to look up to.

Estate planning

One thing that your dad might forget easily while organising his finances may be estate planning. Estate planning includes planning for when your dad is not around and what he would want to do with his estate, investments, savings in the unfortunate event of his demise.

While this might not seem important especially if your father is in his early 40s, it is important to at least start estate planning so that there is no scope of confusion or conflict in case of unfortunate events. Having a rough will that can be refined later and a power of attorney should be considered.

Organising his paperwork

Having determined the investments that might best suit your father’s goals and financial needs and started planning his estate for retirement, one important step is to help him organise his paperwork which could really be huge and quite tedious. Keeping in mind this, your job is to make it easier for him to keep track of his investments and organise his paperwork throughout the year.

This involves assembling all his documents pertaining to health reports, financial reports, bank statements, investment certificates, insurance policy plan. Using digital file holders like DigiLocker or even simply maintaining separate folders in one computer may be convenient.

The most important thing that you need to keep in mind while organising your dad’s finances is that all your life you have been his priority but it is high time that he makes himself the priority when it comes to his financial plans.

Your dad has been working hard for years to provide for you in the best way possible, make sure as you organise his finances that his hard-earned money works harder for him than he has to.

The author is co-founder & CEO of STOCKEDGE and ELEARNMARKETS

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4 Stocks To Buy For Long Term Investors

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Hindustan Unilever

Broking firm Motilal Oswal has suggested investors to buy the stock of Hindustan Unilever with a price target of Rs 2,780, which is about a 15% upside from the current levels.

The brokerage believes that best-of-breed analytics and execution capabilities (demonstrated via the successful implementation of its WIMI strategy, cost-saving plans, herbals, etc.) are key factors driving the pace of earnings growth.

“The strong outlook on rural, Glaxo Smithkline synergies, and sustained growth and premiumization in Skin Cleansing offer further medium-term tailwinds. We maintain our Buy rating with a 2,780 per share,” the brokerage firm has said.

The shares of Hindustan Unilever were almost flat at Rs 2,420 on the NSE in trade today.

CEAT

CEAT

Motilal Oswal Sees the possibility of a 25% upside on the stock of tyre maker CEAT. The firm has set a price target of Rs 1700 on the stock as against the current market price of Rs 1,360.

The firm sees a demand recovery in the replacement segment in Jun’21. “After five years of weak demand, it expects growth to pick-up as a base adjustment has occurred. It plans to maintain leadership in the 2 wheeler segment (at 28-30%) and expand dominance in PCR (to 20% from 13-15% currently). In T&B, it aims to increase its market share in TBR to 13-15% (from 8% currently and take it to similar levels as in the TBB segment),” the brokerage has said.

“We expect revenue/EBITDA/PAT CAGR of 16%/15%/7% over FY21- 23E. Valuations at 10.5x FY23E consolidated Earnings Per Share doesn’t fully capture ramp-up of new capacities in an improving demand environment, resulting in a recovery in margin. We maintain our Buy rating with a price target of Rs 1,700 per share (13 times March ‘2023 estimated consolidated EPS),” Motilal Oswal Institutional equities has said.

The shares of CEAT were last trading at Rs 1,359

Power Grid

Power Grid

Power Grid is another stock to buy according to Motilal Oswal Institutional Equities. According to the brokerage the reported net profits grew 9% YoY to Rs 120 billion in FY21. Adjusted for one-time rebate, net profits rose 17% YoY to Rs 129 billion in FY21. The company declared a final dividend of Rs 3 per share, resulting in a total dividend payout of Rs 12 per share in FY21.

Shares of Power Grid Corporation lost 2.5 in trade today and were last seen trading at Rs 235.85 on the National Stock Exchange.

Shriram Transport Finance

Shriram Transport Finance

Shriram Transport Finance has done a good job in reducing the gross non performing loans ratio over the past year, according to the brokerage. ” With the sharp rise in input costs, prices of new commercial vehicles are likely to go up and should have a consequent impact on used comercial vehicle pricing as well. This should aid disbursement growth as well as lead to lower LGDs. We have incorporated the recent capital raise in our estimates. Reiterate Buy, with Target Price of Rs 1,750 (1.6 times FY23E book value,” the brokerage has said.

Disclaimer

Disclaimer

All of the above stocks are picked from the report of Motilal Oswal. Investing in stocks are risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.



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Skill Labourers Registration (For Contractors / Employers)

Bank Jobs

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This online application allows the contractor to apply the entry pass to Meghalaya for a group of workers for a particular work. The contractor will have to submit the online form along with his/her work licence for verification, after successfully applied the contractor can add the list of migrants (Skilled/Highly Skilled workers) for verification and approval by the district administration for the entry pass to Meghalaya.

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8 Best Edible Oil Company Stocks With Strong PE/EPS Fundamentals

Personal Finance

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Why are Oil prices rising?

Because India imports 56 percent of its domestic consumption, the rise in domestic costs is mostly a reflection of foreign pricing. Prices of edible oils have risen considerably in recent months on the international market due to a variety of causes.

Seasonality, when combined with a higher share of imported inputs, results in longer inventory holding periods, stretching the companies’ working capital. Furthermore, the unorganised market’s large presence, resulting from low entry barriers, maintains the industry’s profitability miserably low.

Their prices are influenced by a variety of factors, including international market conditions and domestic output. India now has to import a significant amount of edible oil due to the large imbalance between domestic consumption and supply. The federal government is working on a number of short-, medium-, and long-term solutions to permanently tackle the problem.

Top Best Edible Oils Growth Stocks With Highest EPS Fundamentals

Top Best Edible Oils Growth Stocks With Highest EPS Fundamentals

High EPS means greater payouts: Higher EPS means more dividends in the partners’ pockets (shareholders). Shareholders will receive bigger dividends as the EPS rises over time. High EPS suggests more reinvestment: A high EPS also means the corporation keeps more money. This money is then set aside for future business expansion. Shareholders will eventually see this future growth in the form of a rise in share price.

Company Stock Price Market Cap in Cr EPS (TTM)
Ruchi Soya 1,207.70 35,858.89 110.05
Vijay Solvex 1,665.75 533.25 141.27
Ajanta Soya 110.90 176.26 10.79
Kriti Nutrients 43.00 214.19 3.01

Latest Prices of Edible Oils in India

Latest Prices of Edible Oils in India

Palm Oil:

On May 7, 2021, the price of palm oil was Rs 142 per kg, but it has since dropped to Rs 115 per kg, a 19% decrease.

Sunflower Oil

On May 5, 2021, the price of sunflower oil was Rs 188 per kg, but it has since dropped to Rs 157 per kg, a 16 percent decrease.

Soya Oil

On May 20, 2021, the price of soya oil was Rs 162 per kg, but it has now dropped to Rs 138 per kg in Mumbai, a 15% decline.

Mustard Oil

On May 16, 2021, the price of mustard oil was Rs 175 per kg, but it has since dropped to Rs 157 per kg, a loss of about 10%.

Groundnut Oil

On May 14, 2021, the price of groundnut oil was Rs 190 per kg, and it has now dropped to Rs 174 per kg, a loss of 8%.

Vanaspati oil

Also, on May 2, 2021, the price of Vanaspati was Rs 154 per kg, but it has now dropped to Rs 141 per kg, a loss of 8%.

4 Edible Oils Value Stocks With Top PE Fundamentals

4 Edible Oils Value Stocks With Top PE Fundamentals

Are you looking for Edible Oils value stocks that are now trading at a discount to their profit potential? The stocks in the following list have the best price-earnings ratio available (trailing).

Company Stock Price Market Cap PE (Trailing)

Prima Industries

19.05 20.56 6.81 Kriti Nutrients 42.80 214.19 14.23 Ruchi Soya 1,203.15 35,619.26 109.53 Gokul Agro 40.70 548.68 12.28

10 Best Edible Oil Stocks With Highest Market Capitalization

10 Best Edible Oil Stocks With Highest Market Capitalization

10 Best Edible Oil Stocks With Highest Market Capitalization

Company Market Cap in Cr
Guj Amb Exports 1,439.08
Ruchi Soya Inds 35634.05
Agro Tech Foods 2357.00
AVT Nat Prod 997.46
Gokul Agro-Resources 537.47
Gokul Refoils 156.30
Kriti Nutrients 101.96
Ruchinfra 57.26
Vegetable Prod 40.29
Anik Industries 49.96



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Reserve Bank of India – Press Releases

Press Releases

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(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 3,42,672.58 3.26 0.01-5.30
     I. Call Money 8,280.66 3.15 1.90-3.45
     II. Triparty Repo 2,28,788.70 3.27 3.16-3.30
     III. Market Repo 1,03,650.22 3.23 0.01-3.50
     IV. Repo in Corporate Bond 1,953.00 3.59 3.42-5.30
B. Term Segment      
     I. Notice Money** 319.85 3.12 2.60-3.40
     II. Term Money@@ 119.50 – 3.10-3.40
     III. Triparty Repo 6,557.40 3.34 3.30-3.35
     IV. Market Repo 425.00 3.46 3.35-3.50
     V. Repo in Corporate Bond 22.00 5.35 5.35-5.35
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo Thu, 17/06/2021 1 Fri, 18/06/2021 3,17,491.00 3.35
     (iii) Special Reverse Repo~          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo – – – – –
3. MSF Thu, 17/06/2021 1 Fri, 18/06/2021 29.00 4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£          
5. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -3,17,462.00  
II. Outstanding Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo          
     (iii) Special Reverse Repo~ Fri, 04/06/2021 14 Fri, 18/06/2021 150.00 3.75
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Fri, 04/06/2021 14 Fri, 18/06/2021 2,00,029.00 3.46
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF          
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
7. On Tap Targeted Long Term Repo Operations€ Mon, 22/03/2021 1095 Thu, 21/03/2024 5,000.00 4.00
  Mon, 14/06/2021 1096 Fri, 14/06/2024 320.00 4.00
8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 17/05/2021 1095 Thu, 16/05/2024 400.00 4.00
  Tue, 15/06/2021 1095 Fri, 14/06/2024 490.00 4.00
D. Standing Liquidity Facility (SLF) Availed from RBI$       5,578.00  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -1,11,309.00  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -4,28,771.00  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 17/06/2021 6,10,260.38  
     (ii) Average daily cash reserve requirement for the fortnight ending 18/06/2021 6,11,914.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 17/06/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 21/05/2021 8,43,197.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020 and Press Release No. 2020-2021/1057 dated February 05, 2021.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
£ As per the Press Release No. 2021-2022/181 dated May 07, 2021.
~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.
Ajit Prasad
Director   
Press Release: 2021-2022/383

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Index publisher MSCI looking at launch of crypto indexes, BFSI News, ET BFSI

Personal Finance

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Global securities index publisher MSCI is looking at launching indexes for cryptocurrency assets, according to Chief Executive Henry Fernandez, in what would be another step towards mainstream acceptance for digital currencies and the companies trading in them.

Fernandez, speaking at a Clubhouse event organized by venture capital firm Andreessen Horowitz earlier this week, said MSCI has been talking to experts and is aiming to launch crypto indexes.

He gave no details on what assets any index would focus on nor any timeline for their introduction and MSCI later declined a Reuters request to elaborate on his comments.

Companies including Bank of New York Mellon Corp, Mastercard, Visa and Goldman Sachs have taken small steps towards supporting cryptocurrencies but they are still little used in day-to-day life.

In May, the S&P Dow Jones Indices unveiled new cryptocurrency indexes, bringing bitcoin and ethereum to the trading floors of Wall Street. The new indexes, S&P Bitcoin Index, S&P Ethereum Index and S&P Crypto Mega Cap Index, will measure the performance of digital assets tied to them.

Crypto exchange Coinbase Global, of which Andreessen Horowitz is the biggest shareholder, also successfully listed on the tech-heavy NASDAQ in April, as bitcoin hit a record peak.

MSCI has been looking to expand its offerings, with Fernandez saying on Clubhouse the areas of private credit and environmental, social and governance (ESG) held opportunities for the company.

In April, the company launched 20 thematic indexes to help investors bet on “megatrends” in China that are aligned with the Chinese government’s policy goals.

The company publishes popular indexes for global equities and other securities, used by asset managers and investors to guide the allocation of $14.5 trillion in assets globally as of the end of 2020.

Inclusion in its indexes tends to open the door to more funds investing in the asset in question.



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SEC delays ruling on Bitcoin ETF in blow to crypto traders, BFSI News, ET BFSI

Personal Finance

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US regulators have once again punted their decision on whether to approve a Bitcoin ETF.

The Securities and Exchange Commission said in a Wednesday regulatory filing that it will seek more public comment on a proposal to list a product on Cboe Global Markets Inc. It’s not the first time this year that the SEC has delayed giving an answer to the legions of crypto advocates pushing for a way to trade the largest cryptocurrency in an exchange-traded fund format.

Crypto enthusiasts have long been frustrated by the agency’s reluctance to sign-off on a Bitcoin ETF, a product that could catapult the world’s most valuable digital token into the mainstream among institutional investors.

There were predictions earlier this year that the regulator would be more receptive under SEC Chair Gary Gensler, who once taught classes on digital assets at the Massachusetts Institute of Technology. But since he took the reins in April, the agency has continued to express concerns that crypto exchanges lack oversight. And it has laid out fresh warnings about the risks of mutual funds investing in Bitcoin futures.

As part of Wednesday’s announcement, the SEC asked the public to weigh in on aspects of the Cboe proposal, which seeks approval of a VanEck Associates Corp. ETF. The SEC set deadlines into July and perhaps even August for people to respond. Here are some of the agency’s key questions:

  • Whether the trust and shares associated with the ETF would be susceptible to manipulation?
  • Whether Cboe’s plan is set up to prevent fraud and manipulation?
  • How transparent is Bitcoin?
  • Has regulation of the Bitcoin market changed substantially in the past five years?
  • What views do commentators have on the size and regulation of CME’s Bitcoin futures contracts?

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