Markets regulator the Securities and Exchange Board of India (Sebi) on Wednesday increased minimum investment limit by clients in a portfolio management service (PMS) to Rs 50 lakh from Rs 25 lakh earlier. The regulator also tightened disclosure norms on loan defaults. Here are the reactions from the industry experts.
“Companies are already required to disclose default on their listed debt instruments within 2 days from default, hence reporting of continuing default on bank loans is positive from a transparency perspective.
As a rating agency, we have been seeking debt servicing status from all our rated entities on a monthly basis. In cases where the rated entity does not share the status, it naturally creates uncertainty. A regulatory stipulation to mandatorily disclose instance of delays on even bank loans etc., at least for listed entities, indeed would be useful, notwithstanding a 30-day lag.”, Jitin Makkar, Head- Credit Policy, ICRA.
"The PMS or AMC licenses are only 2 of many ways that SEBI allows investment professionals to showcase their research & create investable products. The other 2 common ones are Research Analysts (RAs) and Registered Investment Advisors (RIAs). These licenses have a lower net-worth requirement & other setup costs, and as such this directive will encourage even more investment professionals to apply for the RIA/RA license and create readymade portfolios with investor discretion for their clients.", said Vasanth Kamath, CEO & Co-Founder, smallcase Technologies.
“Companies are already required to disclose default on their listed debt instruments within 2 days from default, hence reporting of continuing default on bank loans is positive from a transparency perspective.
As a rating agency, we have been seeking debt servicing status from all our rated entities on a monthly basis. In cases where the rated entity does not share the status, it naturally creates uncertainty. A regulatory stipulation to mandatorily disclose instance of delays on even bank loans etc., at least for listed entities, indeed would be useful, notwithstanding a 30-day lag.”, Jitin Makkar, Head- Credit Policy, ICRA.
"The PMS or AMC licenses are only 2 of many ways that SEBI allows investment professionals to showcase their research & create investable products. The other 2 common ones are Research Analysts (RAs) and Registered Investment Advisors (RIAs). These licenses have a lower net-worth requirement & other setup costs, and as such this directive will encourage even more investment professionals to apply for the RIA/RA license and create readymade portfolios with investor discretion for their clients.", said Vasanth Kamath, CEO & Co-Founder, smallcase Technologies.
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