| BANKNIFTY INTRADAY LEVEL | BANKNIFTY PROBABLE HIGH | BANKNIFTY PROBABLE LOW | |||
| R4 | 17144 | BULL | 17467 | 16683 | |
| R3 | 17040 | UP BREAKOUT | 17271 | 16879 | |
| R2 | 17002 | UP CAUTION | LEVEL FOR LONG | LEVEL FOR SHORT | |
| R1 | 16977 | SELL | 17233 | 17042 | |
| PIVOT | 16963 | LAST DAY | STRONG BEAR LOW VOLATALITY | ||
| S1 | 16818 | BUY | OPEN | 17009 | |
| S2 | 16793 | DOWN CAUTION | HIGH | 17009.0 | |
| S3 | 16755 | DOWN BREAK OUT | LOW | 16880.0 | |
| S4 | 16651 | BEAR | CLOSE | 16897.3 | |
BANKNIFTYThe Banking Sector Index | BANKNIFTY DAILY VOLATALITY | 0.76% | |||
| BANKNIFTY WEEKLY VOLATALITY | 3.66% | ||||
| BANKNIFTY WEEKLY HIGH | 17498.0 | ||||
| BANKNIFTY WEEKLY LOW | 16880.0 | ||||
| BANKNIFTY DAY MEAN | 17189 | ||||
Sunday, December 06, 2015
BANK NIFTY INTRADAY VIEW ( 07 / 12 )
THE WEEK AHEAD
Macroeconomic data, global cues to dictate market trend
Macroeconomic data, trend in global markets, flows from foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses.
In macroeconomic data, the government will unveil index of industrial production (IIP) data for October 2015 after market hours on Friday, 11 December 2015. India's IIP growth moderated to 3.6% in September 2015 over a year ago compared with the revised growth of 6.3% in August 2015. The IIP growth had showed an improvement from 2.6% growth recorded in September 2014.
The primary market turns active as the initial public offers (IPOs) of two companies open for bidding next week. The initial public offer (IPO) of Dr. Lal PathLabs opens for bidding on 8 December 2015. The IPO is scheduled to close on 10 December 2015. The IPO comprises offer for sale of 1.16 crore equity shares of Rs 10 each. At the lower price band of Rs 540 per share, the issue size works out to Rs 626.40 crore and at the higher price band of Rs 550 per share, the issue size is Rs 638 crore. Retail individual bidders will get a discount of Rs 15 on the offer price.
Also the initial public offer (IPO) of Alkem Laboratories opens for bidding on 8 December 2015. The IPO is scheduled to close on 10 December 2015. The IPO comprises offer for sale (OFS) of 1.28 crore equity shares of Rs 2 each. At the lower price band of Rs 1,020 per share, the issue size is Rs 1305.60 crore. At the higher price band of Rs 1,050 per share, the issue size works out to Rs 1344 crore. The selling shareholders comprise promoters and promoter group, offering about 1.28 crore shares.
On the political front, developments in winter session of the parliament will be closely watched. The winter session of the parliament began on 26 November 2015 and concludes on 23 December 2015. Investors' focus is on whether the GST constitutional amendment bill will be passed in the Rajya Sabha. The constitutional amendment bill for the implementation of GST, which subsumes all indirect taxes to create a unified market across the country, has been cleared by the Lok Sabha and is awaiting legislative passage in the Rajya Sabha. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST.
At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Among global cues, the Japanense government will revise its July-September GDP figures based on the capex and inventory investment data in the MOF Corporate Statistics, and is due to publish its second preliminary GDP estimates on Tuesday, 8 December 2015. Initial figures showed that Japan had fallen back into recession in the third quarter, after its economy shrank at a worse than expected annualised rate of 0.8% as business investment fell.
On Thursday, 10 December 2015, the Bank of England (BoE) announces its policy decision. As per reports, the Monetary Policy Committee will probably leave its key benchmark interest rate at a record-low of 0.5%.
In macroeconomic data, the government will unveil index of industrial production (IIP) data for October 2015 after market hours on Friday, 11 December 2015. India's IIP growth moderated to 3.6% in September 2015 over a year ago compared with the revised growth of 6.3% in August 2015. The IIP growth had showed an improvement from 2.6% growth recorded in September 2014.
The primary market turns active as the initial public offers (IPOs) of two companies open for bidding next week. The initial public offer (IPO) of Dr. Lal PathLabs opens for bidding on 8 December 2015. The IPO is scheduled to close on 10 December 2015. The IPO comprises offer for sale of 1.16 crore equity shares of Rs 10 each. At the lower price band of Rs 540 per share, the issue size works out to Rs 626.40 crore and at the higher price band of Rs 550 per share, the issue size is Rs 638 crore. Retail individual bidders will get a discount of Rs 15 on the offer price.
Also the initial public offer (IPO) of Alkem Laboratories opens for bidding on 8 December 2015. The IPO is scheduled to close on 10 December 2015. The IPO comprises offer for sale (OFS) of 1.28 crore equity shares of Rs 2 each. At the lower price band of Rs 1,020 per share, the issue size is Rs 1305.60 crore. At the higher price band of Rs 1,050 per share, the issue size works out to Rs 1344 crore. The selling shareholders comprise promoters and promoter group, offering about 1.28 crore shares.
On the political front, developments in winter session of the parliament will be closely watched. The winter session of the parliament began on 26 November 2015 and concludes on 23 December 2015. Investors' focus is on whether the GST constitutional amendment bill will be passed in the Rajya Sabha. The constitutional amendment bill for the implementation of GST, which subsumes all indirect taxes to create a unified market across the country, has been cleared by the Lok Sabha and is awaiting legislative passage in the Rajya Sabha. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST.
At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Among global cues, the Japanense government will revise its July-September GDP figures based on the capex and inventory investment data in the MOF Corporate Statistics, and is due to publish its second preliminary GDP estimates on Tuesday, 8 December 2015. Initial figures showed that Japan had fallen back into recession in the third quarter, after its economy shrank at a worse than expected annualised rate of 0.8% as business investment fell.
On Thursday, 10 December 2015, the Bank of England (BoE) announces its policy decision. As per reports, the Monetary Policy Committee will probably leave its key benchmark interest rate at a record-low of 0.5%.
THE WEEK THAT WAS
Sensex drops below 26,000
Key benchmark indices edged lower in the week ended Friday, 4 December 2015 on prospects of increase in interest rates in the United States. The barometer index, the S&P BSE Sensex, fell below the psychological 26,000 mark during the week. The Sensex and the Nifty, both, settled at their lowest level in more than two weeks. Key indices edged lower in three out of five trading sessions during the week.
Hawkish comments from Federal Reserve Chairwoman Janet Yellen on Wednesday, 2 December 2015 reinforced the case for an interest rate hike during the middle of this month. The Fed is widely expected to announce an increase of 25 basis points in the federal funds rate after a regular monetary policy review scheduled during the middle of this month.
Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets.
In the week ended Friday, 4 December 2015, the 30-share S&P BSE Sensex lost 490.09 points or 1.88% to settle at 25,638.11, its lowest closing level since 18 November 2015. The 50-unit CNX Nifty lost 160.80 points or 2.02% to settle at 7,781.90, its lowest closing level since 18 November 2015.
The BSE Mid-Cap index fell 49.46 points or 0.45% to settle at 10,935.11. The fall in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index rose 11.68 points or 0.1% to settle at 11,557.52. The index outperformed the Sensex.
A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, settled with tiny gains while the 50-unit Nifty 50 index settled with small losses on Monday, 30 November 2015. The Sensex rose 17.47 points or 0.07% to settle at 26,145.67, its highest closing level since 6 November 2015.
Gains in metal, pharma and oil sector stocks enabled small gains for key benchmark indices on Tuesday, 1 December 2015 after the Reserve Bank of India (RBI) kept its benchmark interest rate unchanged after a monetary policy review. The Sensex rose 23.74 points or 0.09% to settle at 26,169.41, its highest closing level since 6 November 2015.
Losses for banking sector stocks and index heavyweights HDFC, Infosys and L&T outweighed gains for pharma stocks and index heavyweight Reliance Industries (RIL) resulting in small losses for key benchmark indices on Wednesday, 2 December 2015. The Sensex lost 51.56 points or 0.2% to settle at 26,117.85, its lowest closing level since 26 November 2015.
Prospects of increase in interest rates in the United States and data showing slowdown in India's services sector growth weighed on Indian stocks on Thursday, 3 December 2015, with barometer index, the S&P BSE Sensex, falling below the psychological 26,000 mark. The Sensex lost 231.23 points or 0.89% to settle at 25,886.62, its lowest closing level since 24 November 2015.
Key benchmark indices dropped on Friday, 4 December 2015, tracking slide in global stocks after the European Central Bank (ECB)'s stimulus package announced after policy meet on Thursday, 3 December 2015, fell well short of markets' high expectations. The Sensex lost 248.51 points or 0.96% to settle at 25,638.11, its lowest closing level since 18 November 2015.
Among the 30-share Sensex pack, 23 stocks declined and the rest of them rose in the week ended Friday, 4 December 2015.
Bharat Heavy Electricals (Bhel) (down 4.15%), ONGC (down 3.25%), GAIL (India) (down 3.13%), Infosys (down 1.73%) and L&T (down 1.68%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) fell 1.36% to Rs 965.75.
Index heavyweight and cigarette major ITC dropped 2.43% to Rs 335.60.
Index heavyweight and housing finance major HDFC lost 4.73% to Rs 1,171.95.
Bharti Airtel fell 5.97%. Bharti Airtel during market hours on Monday, 30 November 2015, announced the launch of a massive network transformation program called Project Leap. Aimed at perceptibly improving network quality and delivering the best customer experience, this strategic project will see an investment of Rs 60000 crore in the next 3 years, Bharti Airtel said. The investment of Rs 60000 crore is over and above the Rs 1.60 lakh crore Bharti Airtel has already invested in its active and passive network, spectrum, fiber, submarine cables and systems till date, the company said.
Auto stocks declined. Hero MotoCorp (down 3.22%) and Tata Motors (down 4.23%) declined.
Mahindra & Mahindra (M&M) fell 2.39%. The company said during market hours on Tuesday, 1 December 2015 that its total auto sales rose 21% to 41,590 units in November 2015 over November 2014. Domestic sales rose 23% to 39,383 units in November 2015 over November 2014. Exports rose 1% to 2,207 units in November 2015 over November 2014.
Separately, M&M said that its total tractor sales jumped 42% to 21,717 units in November 2015 over November 2014. Domestic sales jumped 47% to 20,819 units in November 2015 over November 2014. Exports fell 20% to 898 units in November 2015 over November 2014.
Maruti Suzuki India rose 0.54%. The company's total sales rose 9.7% to 1.2 lakh vehicles in November 2015 over November 2014. Domestic sales rose 10.6% to 1.1 lakh vehicles in November 2015 over November 2014. Exports rose 1% to 10,225 vehicles in November 2015 over November 2014.
Bajaj Auto rose 0.36%. Bajaj Auto's total sales rose 0.13% to 3.09 lakh units in November 2015 over November 2014. Motorcycles sales rose 3% to 2.7 lakh units in November 2015 over November 2014. Commercial vehicles sales fell 18% to 38,787 units in November 2015 over November 2014. Exports dropped 17% to 1.37 lakh units in November 2015 over November 2014. The company announced sales volume data for October during market hours on Wednesday, 2 December 2015.
Bank stocks fell. HDFC Bank (down 1.23%), ICICI Bank (down 3.02%), Axis Bank (down 2.23%), and State Bank of India (down 3.45%) declined.
Pharma stocks rose. Dr Reddy's Laboratories (up 3.09%) and Sun Pharmaceutical Industries (up 2.18%) rose. Lupin fell 0.49%.
Cipla rose 0.47%. The company announced during market hours on Thursday, 3 December 2015 that it has launched a novel "5 in 1" anti-ageing skin care product Cutisera developed by Stempeutics.
Metal stocks rose. Hindalco Industries advanced 2.06%. Vedanta shed 0.16%.
Tata Steel gained 3.89%. Tata Steel announced that its subsidiary incorporated in Singapore T S Global Holdings Pte (TSGH) has executed agreements worth $1.5 billion for refinancing exiting debt. The new loan facilities comprise of a 5 year loan of $750 million and a 6 year loan of $750 million. The company said that the new loan facilities are at lower cost with extension of the loan tenor.
On macro front, the seasonally adjusted Nikkei Services Business Activity Index fell to 50.1 in November from October's eight-month high reading of 53.2, pointing to slowdown in growth in India's services sector. The reading of 50 separates contraction from expansion. Services companies displayed a lack of optimism with regards to the 12-month outlook for activity, as sentiment dropped to the lowest in the ten-year survey history. Difficult economic conditions and weak demand reportedly hit confidence.
India's gross domestic product (GDP) rose 7.4% in Q2 September 2015 over Q2 September 2014, with growth mainly driven by pick-up in the manufacturing sector, which has grown by 9.3% in Q2. The GDP growth has shown a pick up from 7% growth recorded in Q1 June 2015. Meanwhile, the GDP growth remained below 8.4% rise recorded in the corresponding quarter of the last year. The Q2 GDP data was announced after market hours on Monday, 30 November 2015. The finance ministry is expecting the economy to grow in the vicinity of 7.5% in the year ending 31 March 2016 (FY 2016).
Meanwhile, the outcome of a monthly survey showed tepid growth in India's manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to a 25-month low of 50.3 in November 2015.
The Reserve Bank of India (RBI) kept its benchmark interest rate viz. the repo rate unchanged at 6.75% after a monetary policy review on Tuesday, 1 December 2015.
The central bank also kept the cash reserve ratio (CRR) for commercial banks unchanged at 4% of net demand and time liability (NDTL). Retaining the easing stance of monetary policy, the RBI said that it will use the space for further accommodation when available. The RBI said that switching to the marginal cost of funds methodology for determining the base rate and linking small savings interest rates to market interest rates will allow increased transmission of policy rates into lending rates.
On global front, the European Central Bank (ECB)'s stimulus package fell well short of markets' high expectations. The ECB cut its deposit rate deeper into negative territory and extended its asset buys by six months, as expected. But some market participants had hoped for greater stimulus. The ECB President Mario Draghi after a policy meet on Thursday, 3 December 2015, announced the central bank would extend its massive 60 billion euro ($63.5 billion) a month bond-buying scheme to at least March 2017. The ECB cut its deposit rate further into negative territory by 10 basis points to a fresh low of -0.3%, down from -0.2%.
China's official reading on factory activity fell to 49.60 in November 2015 from 49.80 in October 2015. The Caixin China manufacturing purchasing managers index, a private gauge, rose to 48.60 in November 2015 from 48.30 in October 2015. A reading below 50 indicates contraction.
Hawkish comments from Federal Reserve Chairwoman Janet Yellen on Wednesday, 2 December 2015 reinforced the case for an interest rate hike during the middle of this month. The Fed is widely expected to announce an increase of 25 basis points in the federal funds rate after a regular monetary policy review scheduled during the middle of this month.
Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets.
In the week ended Friday, 4 December 2015, the 30-share S&P BSE Sensex lost 490.09 points or 1.88% to settle at 25,638.11, its lowest closing level since 18 November 2015. The 50-unit CNX Nifty lost 160.80 points or 2.02% to settle at 7,781.90, its lowest closing level since 18 November 2015.
The BSE Mid-Cap index fell 49.46 points or 0.45% to settle at 10,935.11. The fall in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index rose 11.68 points or 0.1% to settle at 11,557.52. The index outperformed the Sensex.
A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, settled with tiny gains while the 50-unit Nifty 50 index settled with small losses on Monday, 30 November 2015. The Sensex rose 17.47 points or 0.07% to settle at 26,145.67, its highest closing level since 6 November 2015.
Gains in metal, pharma and oil sector stocks enabled small gains for key benchmark indices on Tuesday, 1 December 2015 after the Reserve Bank of India (RBI) kept its benchmark interest rate unchanged after a monetary policy review. The Sensex rose 23.74 points or 0.09% to settle at 26,169.41, its highest closing level since 6 November 2015.
Losses for banking sector stocks and index heavyweights HDFC, Infosys and L&T outweighed gains for pharma stocks and index heavyweight Reliance Industries (RIL) resulting in small losses for key benchmark indices on Wednesday, 2 December 2015. The Sensex lost 51.56 points or 0.2% to settle at 26,117.85, its lowest closing level since 26 November 2015.
Prospects of increase in interest rates in the United States and data showing slowdown in India's services sector growth weighed on Indian stocks on Thursday, 3 December 2015, with barometer index, the S&P BSE Sensex, falling below the psychological 26,000 mark. The Sensex lost 231.23 points or 0.89% to settle at 25,886.62, its lowest closing level since 24 November 2015.
Key benchmark indices dropped on Friday, 4 December 2015, tracking slide in global stocks after the European Central Bank (ECB)'s stimulus package announced after policy meet on Thursday, 3 December 2015, fell well short of markets' high expectations. The Sensex lost 248.51 points or 0.96% to settle at 25,638.11, its lowest closing level since 18 November 2015.
Among the 30-share Sensex pack, 23 stocks declined and the rest of them rose in the week ended Friday, 4 December 2015.
Bharat Heavy Electricals (Bhel) (down 4.15%), ONGC (down 3.25%), GAIL (India) (down 3.13%), Infosys (down 1.73%) and L&T (down 1.68%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) fell 1.36% to Rs 965.75.
Index heavyweight and cigarette major ITC dropped 2.43% to Rs 335.60.
Index heavyweight and housing finance major HDFC lost 4.73% to Rs 1,171.95.
Bharti Airtel fell 5.97%. Bharti Airtel during market hours on Monday, 30 November 2015, announced the launch of a massive network transformation program called Project Leap. Aimed at perceptibly improving network quality and delivering the best customer experience, this strategic project will see an investment of Rs 60000 crore in the next 3 years, Bharti Airtel said. The investment of Rs 60000 crore is over and above the Rs 1.60 lakh crore Bharti Airtel has already invested in its active and passive network, spectrum, fiber, submarine cables and systems till date, the company said.
Auto stocks declined. Hero MotoCorp (down 3.22%) and Tata Motors (down 4.23%) declined.
Mahindra & Mahindra (M&M) fell 2.39%. The company said during market hours on Tuesday, 1 December 2015 that its total auto sales rose 21% to 41,590 units in November 2015 over November 2014. Domestic sales rose 23% to 39,383 units in November 2015 over November 2014. Exports rose 1% to 2,207 units in November 2015 over November 2014.
Separately, M&M said that its total tractor sales jumped 42% to 21,717 units in November 2015 over November 2014. Domestic sales jumped 47% to 20,819 units in November 2015 over November 2014. Exports fell 20% to 898 units in November 2015 over November 2014.
Maruti Suzuki India rose 0.54%. The company's total sales rose 9.7% to 1.2 lakh vehicles in November 2015 over November 2014. Domestic sales rose 10.6% to 1.1 lakh vehicles in November 2015 over November 2014. Exports rose 1% to 10,225 vehicles in November 2015 over November 2014.
Bajaj Auto rose 0.36%. Bajaj Auto's total sales rose 0.13% to 3.09 lakh units in November 2015 over November 2014. Motorcycles sales rose 3% to 2.7 lakh units in November 2015 over November 2014. Commercial vehicles sales fell 18% to 38,787 units in November 2015 over November 2014. Exports dropped 17% to 1.37 lakh units in November 2015 over November 2014. The company announced sales volume data for October during market hours on Wednesday, 2 December 2015.
Bank stocks fell. HDFC Bank (down 1.23%), ICICI Bank (down 3.02%), Axis Bank (down 2.23%), and State Bank of India (down 3.45%) declined.
Pharma stocks rose. Dr Reddy's Laboratories (up 3.09%) and Sun Pharmaceutical Industries (up 2.18%) rose. Lupin fell 0.49%.
Cipla rose 0.47%. The company announced during market hours on Thursday, 3 December 2015 that it has launched a novel "5 in 1" anti-ageing skin care product Cutisera developed by Stempeutics.
Metal stocks rose. Hindalco Industries advanced 2.06%. Vedanta shed 0.16%.
Tata Steel gained 3.89%. Tata Steel announced that its subsidiary incorporated in Singapore T S Global Holdings Pte (TSGH) has executed agreements worth $1.5 billion for refinancing exiting debt. The new loan facilities comprise of a 5 year loan of $750 million and a 6 year loan of $750 million. The company said that the new loan facilities are at lower cost with extension of the loan tenor.
On macro front, the seasonally adjusted Nikkei Services Business Activity Index fell to 50.1 in November from October's eight-month high reading of 53.2, pointing to slowdown in growth in India's services sector. The reading of 50 separates contraction from expansion. Services companies displayed a lack of optimism with regards to the 12-month outlook for activity, as sentiment dropped to the lowest in the ten-year survey history. Difficult economic conditions and weak demand reportedly hit confidence.
India's gross domestic product (GDP) rose 7.4% in Q2 September 2015 over Q2 September 2014, with growth mainly driven by pick-up in the manufacturing sector, which has grown by 9.3% in Q2. The GDP growth has shown a pick up from 7% growth recorded in Q1 June 2015. Meanwhile, the GDP growth remained below 8.4% rise recorded in the corresponding quarter of the last year. The Q2 GDP data was announced after market hours on Monday, 30 November 2015. The finance ministry is expecting the economy to grow in the vicinity of 7.5% in the year ending 31 March 2016 (FY 2016).
Meanwhile, the outcome of a monthly survey showed tepid growth in India's manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to a 25-month low of 50.3 in November 2015.
The Reserve Bank of India (RBI) kept its benchmark interest rate viz. the repo rate unchanged at 6.75% after a monetary policy review on Tuesday, 1 December 2015.
The central bank also kept the cash reserve ratio (CRR) for commercial banks unchanged at 4% of net demand and time liability (NDTL). Retaining the easing stance of monetary policy, the RBI said that it will use the space for further accommodation when available. The RBI said that switching to the marginal cost of funds methodology for determining the base rate and linking small savings interest rates to market interest rates will allow increased transmission of policy rates into lending rates.
On global front, the European Central Bank (ECB)'s stimulus package fell well short of markets' high expectations. The ECB cut its deposit rate deeper into negative territory and extended its asset buys by six months, as expected. But some market participants had hoped for greater stimulus. The ECB President Mario Draghi after a policy meet on Thursday, 3 December 2015, announced the central bank would extend its massive 60 billion euro ($63.5 billion) a month bond-buying scheme to at least March 2017. The ECB cut its deposit rate further into negative territory by 10 basis points to a fresh low of -0.3%, down from -0.2%.
China's official reading on factory activity fell to 49.60 in November 2015 from 49.80 in October 2015. The Caixin China manufacturing purchasing managers index, a private gauge, rose to 48.60 in November 2015 from 48.30 in October 2015. A reading below 50 indicates contraction.
THE END SESSION ( 04 / 12 )
Sensex, Nifty hit more than two-week closing low
Key benchmark indices dropped on the last trading session of the week today, 4 December 2015, tracking slide in global stocks after the European Central Bank (ECB)'s stimulus package announced after policy meet yesterday, 3 December 2015, fell well short of markets' high expectations. The barometer index, the S&P BSE Sensex, lost 248.51 points or 0.96% to settle at 25,638.11. The fall in 50-unit CNX Nifty 50 index was higher in percentage terms than Sensex's fall. The Nifty 50 index shed 82.25 points or 1.05% to settle at 7,781.90. The Sensex and the Nifty, both, hit their lowest closing level in more than two weeks. After opening lower, key indices remained in the negative terrain throughout the session.
Key indices fell for the third day in a row today, 4 December 2015.
In overseas markets, European stocks slipped after Asian stocks settled lower as the European Central Bank (ECB)'s stimulus package fell well short of markets' high expectations. US stocks dropped yesterday, 3 December 2015 as the ECB disappointed market hopes for greater stimulus. The ECB cut its deposit rate deeper into negative territory and extended its asset buys by six months, as expected. But some market participants had hoped for greater stimulus.
The ECB President Mario Draghi after a policy meet yesterday, 3 December 2015, announced the central bank would extend its massive 60 billion euro ($63.5 billion) a month bond-buying scheme to at least March 2017. The ECB cut its deposit rate further into negative territory by 10 basis points to a fresh low of -0.3%, down from -0.2%.
The Sensex lost 248.51 points or 0.96% to settle at 25,638.11, its lowest closing level since 18 November 2015. The Sensex lost 262.91 points or 1.01% at the day's low of 25,623.71. The barometer index dropped 76.56 points 0.29% at the day's high of 25,810.06.
The Nifty shed 82.25 points or 1.05% to settle at 7,781.90, its lowest closing level since 18 November 2015. The Nifty lost 88.45 points or 1.12% at the day's low of 7,775.70. The Nifty fell 42.75 points or 0.54% at the day's high of 7,821.40.
The BSE Mid-Cap index dropped 1.05%. The decline in the index was higher in percentage terms than the Sensex's fall. The BSE Small-Cap index fell 0.64%. The decline in the index was lower in percentage terms than the Sensex's fall.
The market breadth indicating the overall health of the market was negative. On BSE, 1,567 shares fell and 1,177 shares rose. A total of 168 shares were unchanged.
The total turnover on BSE amounted to Rs 2980 crore, lower than turnover of Rs 3096.30 crore registered during the previous trading session.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 2.27%), GVK Power & Infrastructure (down 3.98%), NHPC (down 2.76%), Tata Power Company (down 1.83%), NTPC (down 2.13%), Power Grid Corporation of India (down 2.17%), Reliance Infrastructure (down 2.11%) and Reliance Power (down 1.79%) declined.
Auto stocks declined. Mahindra & Mahindra (M&M) (down 2.42%), Ashok Leyland (down 1.63%), Maruti Suzuki India (down 0.49%), Eicher Motors (down 1.3%), Bajaj Auto (down 0.95%), Hero MotoCorp (down 0.05%) and Tata Motors (down 1.36%) declined. TVS Motor Company rose 0.16%.
Bank stocks fell across the board. Among private bank stocks, HDFC Bank (down 0.96%), Kotak Mahindra Bank (down 1.29%), ICICI Bank (down 1.71%), Axis Bank (down 0.43%), and Yes Bank (down 1.69%) declined. IndusInd Bank rose 0.04%.
Among PSU bank stocks, Punjab National Bank (down 1.68%), Bank of Baroda (down 2.5%), Canara Bank (down 2.75%), IDBI Bank (down 1.93%), Bank of India (down 1.52%), State Bank of India (SBI) (down 0.08%) and Union Bank of India (down 1.87%) dropped.
Dena Bank rose 1.73% after its board of directors approved raising funds from the equity market by diluting the government's stake to 52% from the current 65%. The announcement was made after market hours yesterday, 3 December 2015. As on 30 September 2015, the Government of India held 65% stake in Dena Bank. Besides the stake dilution, the bank also plans to raise capital through additional tier-I (AT1) bonds of up to Rs 1500 crore in one or more tranches. It will also raise capital through tier-II bonds up to Rs 1000 crore, the lender said.
Reliance Communications (RCom) dropped 3.11%. The company announced during market hours that it has signed a non-binding term sheet with Tillman Global Holdings, LLC and TPG Asia, Inc. (TPG) in relation to the proposed acquisition of RCom's nationwide tower assets and related infrastructure by Tillman and TPG.
Under the term sheet, the specified assets are intended to be transferred from Reliance Infratel (RITL) on a going concern basis into a separate special purpose vehicle (SPV), to be owned 100% by Tillman and TPG. RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business. RCom intends to utilize the proceeds of the proposed transaction only to reduce its debt. Tillman and TPG will also evaluate purchase of RCom's extensive nationwide inter-city and intra-city optic fibre assets, in a separate and independent transaction. The parties have entered into an Exclusivity Agreement valid till 15 January 2016. The proposed Transaction is subject to final due diligence, definitive documentation, applicable regulatory and other approvals and certain other terms and conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage.
3i Infotech was locked at 20% upper circuit at Rs 5.20 after the company said that a meeting of the board of directors of the company will be held on 7 December 2015, inter alia, to discuss and approve a proposal for the realignment of its debt with the lenders/lessors in India and foreign currency convertible bondholders (FCCBs). Such realignment of debt may include, among others, conversion of a portion of debt into equity/redeemable preference shares and restructuring of a portion of debt to provide for elongated repayment schedule and revised interest rate, 3i Infotech said. Any debt realignment proposal shall remain subject to approval from, among others, the lenders/lessors in India and FCCB holders as well as relevant shareholder and regulatory authorities, 3i Infotech said. The announcement was made during market hours today, 4 December 2015.
Sandur Manganese & Iron Ores rose 7.17% after the company said that the Karnataka high court vide Order dated 3 December 2015 has quashed the levy of forest development tax (FDT) by the government of Karnataka on mining lease holders. The announcement was made during trading hours today, 4 December 2015. The State Government, pursuant to notification dated 16 August 2008, had amended the provisions of Section 98(A) of the Karnataka Forest Act, 1963 for levying FDT on the sale of ores by the mining lease holders with effect from 27 August 2008. The said matter was contested by Sandur Manganese & Iron Ores and other mining lease holders before the High Court of Karnataka, wherein the High Court of Karnataka at Bangalore has pronounced the judgment to the effect that the levy FDT shall be applicable only to State Government-owned entities and not others. The operative portion/summary of the judgement was pronounced in Open Court and a copy of the order is awaited, the company said in a statement.
New Delhi Television rose 5.46% after the company said it forayed into the online wedding market space with a new e-commerce venture. The announcement was made during trading hours today, 4 December 2015. The company said its forthcoming wedding and festival platform, Special Occasion, has raised funding at a valuation of $20 million from US-based venture capital firm, CerraCap Ventures. With this launch, NDTV establishes itself more firmly in the digital and ecommerce space, the company said in a statement.
Meanwhile, key benchmark indices fell for third day in a row today, 4 December 2015. The Sensex has declined 531.30 points or 2.03% in the preceding three trading sessions from its close of 26,169.41 on 1 December 2015. The Sensex has declined 507.56 points or 1.94% in the first four trading sessions of this month. The Sensex has fallen 1,861.31 points or 6.76% in this calendar year so far (till 4 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 804.57 points or 3.23%. The Sensex is off 4,386.63 points or 14.61% from a record high of 30,024.74 hit on 4 March 2015.
Key indices fell for the third day in a row today, 4 December 2015.
In overseas markets, European stocks slipped after Asian stocks settled lower as the European Central Bank (ECB)'s stimulus package fell well short of markets' high expectations. US stocks dropped yesterday, 3 December 2015 as the ECB disappointed market hopes for greater stimulus. The ECB cut its deposit rate deeper into negative territory and extended its asset buys by six months, as expected. But some market participants had hoped for greater stimulus.
The ECB President Mario Draghi after a policy meet yesterday, 3 December 2015, announced the central bank would extend its massive 60 billion euro ($63.5 billion) a month bond-buying scheme to at least March 2017. The ECB cut its deposit rate further into negative territory by 10 basis points to a fresh low of -0.3%, down from -0.2%.
The Sensex lost 248.51 points or 0.96% to settle at 25,638.11, its lowest closing level since 18 November 2015. The Sensex lost 262.91 points or 1.01% at the day's low of 25,623.71. The barometer index dropped 76.56 points 0.29% at the day's high of 25,810.06.
The Nifty shed 82.25 points or 1.05% to settle at 7,781.90, its lowest closing level since 18 November 2015. The Nifty lost 88.45 points or 1.12% at the day's low of 7,775.70. The Nifty fell 42.75 points or 0.54% at the day's high of 7,821.40.
The BSE Mid-Cap index dropped 1.05%. The decline in the index was higher in percentage terms than the Sensex's fall. The BSE Small-Cap index fell 0.64%. The decline in the index was lower in percentage terms than the Sensex's fall.
The market breadth indicating the overall health of the market was negative. On BSE, 1,567 shares fell and 1,177 shares rose. A total of 168 shares were unchanged.
The total turnover on BSE amounted to Rs 2980 crore, lower than turnover of Rs 3096.30 crore registered during the previous trading session.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 2.27%), GVK Power & Infrastructure (down 3.98%), NHPC (down 2.76%), Tata Power Company (down 1.83%), NTPC (down 2.13%), Power Grid Corporation of India (down 2.17%), Reliance Infrastructure (down 2.11%) and Reliance Power (down 1.79%) declined.
Auto stocks declined. Mahindra & Mahindra (M&M) (down 2.42%), Ashok Leyland (down 1.63%), Maruti Suzuki India (down 0.49%), Eicher Motors (down 1.3%), Bajaj Auto (down 0.95%), Hero MotoCorp (down 0.05%) and Tata Motors (down 1.36%) declined. TVS Motor Company rose 0.16%.
Bank stocks fell across the board. Among private bank stocks, HDFC Bank (down 0.96%), Kotak Mahindra Bank (down 1.29%), ICICI Bank (down 1.71%), Axis Bank (down 0.43%), and Yes Bank (down 1.69%) declined. IndusInd Bank rose 0.04%.
Among PSU bank stocks, Punjab National Bank (down 1.68%), Bank of Baroda (down 2.5%), Canara Bank (down 2.75%), IDBI Bank (down 1.93%), Bank of India (down 1.52%), State Bank of India (SBI) (down 0.08%) and Union Bank of India (down 1.87%) dropped.
Dena Bank rose 1.73% after its board of directors approved raising funds from the equity market by diluting the government's stake to 52% from the current 65%. The announcement was made after market hours yesterday, 3 December 2015. As on 30 September 2015, the Government of India held 65% stake in Dena Bank. Besides the stake dilution, the bank also plans to raise capital through additional tier-I (AT1) bonds of up to Rs 1500 crore in one or more tranches. It will also raise capital through tier-II bonds up to Rs 1000 crore, the lender said.
Reliance Communications (RCom) dropped 3.11%. The company announced during market hours that it has signed a non-binding term sheet with Tillman Global Holdings, LLC and TPG Asia, Inc. (TPG) in relation to the proposed acquisition of RCom's nationwide tower assets and related infrastructure by Tillman and TPG.
Under the term sheet, the specified assets are intended to be transferred from Reliance Infratel (RITL) on a going concern basis into a separate special purpose vehicle (SPV), to be owned 100% by Tillman and TPG. RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business. RCom intends to utilize the proceeds of the proposed transaction only to reduce its debt. Tillman and TPG will also evaluate purchase of RCom's extensive nationwide inter-city and intra-city optic fibre assets, in a separate and independent transaction. The parties have entered into an Exclusivity Agreement valid till 15 January 2016. The proposed Transaction is subject to final due diligence, definitive documentation, applicable regulatory and other approvals and certain other terms and conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage.
3i Infotech was locked at 20% upper circuit at Rs 5.20 after the company said that a meeting of the board of directors of the company will be held on 7 December 2015, inter alia, to discuss and approve a proposal for the realignment of its debt with the lenders/lessors in India and foreign currency convertible bondholders (FCCBs). Such realignment of debt may include, among others, conversion of a portion of debt into equity/redeemable preference shares and restructuring of a portion of debt to provide for elongated repayment schedule and revised interest rate, 3i Infotech said. Any debt realignment proposal shall remain subject to approval from, among others, the lenders/lessors in India and FCCB holders as well as relevant shareholder and regulatory authorities, 3i Infotech said. The announcement was made during market hours today, 4 December 2015.
Sandur Manganese & Iron Ores rose 7.17% after the company said that the Karnataka high court vide Order dated 3 December 2015 has quashed the levy of forest development tax (FDT) by the government of Karnataka on mining lease holders. The announcement was made during trading hours today, 4 December 2015. The State Government, pursuant to notification dated 16 August 2008, had amended the provisions of Section 98(A) of the Karnataka Forest Act, 1963 for levying FDT on the sale of ores by the mining lease holders with effect from 27 August 2008. The said matter was contested by Sandur Manganese & Iron Ores and other mining lease holders before the High Court of Karnataka, wherein the High Court of Karnataka at Bangalore has pronounced the judgment to the effect that the levy FDT shall be applicable only to State Government-owned entities and not others. The operative portion/summary of the judgement was pronounced in Open Court and a copy of the order is awaited, the company said in a statement.
New Delhi Television rose 5.46% after the company said it forayed into the online wedding market space with a new e-commerce venture. The announcement was made during trading hours today, 4 December 2015. The company said its forthcoming wedding and festival platform, Special Occasion, has raised funding at a valuation of $20 million from US-based venture capital firm, CerraCap Ventures. With this launch, NDTV establishes itself more firmly in the digital and ecommerce space, the company said in a statement.
Meanwhile, key benchmark indices fell for third day in a row today, 4 December 2015. The Sensex has declined 531.30 points or 2.03% in the preceding three trading sessions from its close of 26,169.41 on 1 December 2015. The Sensex has declined 507.56 points or 1.94% in the first four trading sessions of this month. The Sensex has fallen 1,861.31 points or 6.76% in this calendar year so far (till 4 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 804.57 points or 3.23%. The Sensex is off 4,386.63 points or 14.61% from a record high of 30,024.74 hit on 4 March 2015.
Tuesday, December 01, 2015
NIFTY INTRADAY VIEW ( 02 / 12 )
| NIFTY INTRADAY LEVEL | NIFTY PROBABLE HIGH | NIFTY PROBABLE LOW | ||
| R4 | 8001 | BULL | 8036 | 7852 |
| R3 | 7984 | UP BREAKOUT | 7990 | 7898 |
| R2 | 7977 | UP CAUTION | LEVEL FOR LONG | LEVEL FOR SHORT |
| R1 | 7973 | SELL | 7966 | 7912 |
| PIVOT | 7954 | LAST DAY | CONFUSION TREND | |
| S1 | 7937 | BUY | OPEN | 7958 |
| S2 | 7932 | DOWN CAUTION | HIGH | 7972.0 |
| S3 | 7926 | DOWN BREAK OUT | LOW | 7934.0 |
| S4 | 7909 | BEAR | CLOSE | 7954.9 |
| NIFTY MONTHLY LEVEL | NIFTY DAILY VOLATALITY | 0.48% | ||
| R2 | 6082 | LONG | NIFTY WEEKLY VOLATALITY | 2.04% |
| R1 | 5976 | SHORT EXIT | NIFTY WEEKLY HIGH | 7972.0 |
| S1 | 5765 | LONG EXIT | NIFTY WEEKLY LOW | 7813.0 |
| S2 | 5659 | SHORT | NIFTY DAY MEAN | 7892.5 |
Sunday, September 13, 2015
ONE MINUTE DATA OF NIFTY , BANK NIFTY AND INDIA VIX
ONE MINUTE DATA
OF
NIFTY SPOT
NIFTY FUTURE
BANK NIFTY SPOT
BANK NIFTY FUTURE
INDIA VIX
DAILY UPDATED
https://docs.google.com/folderview?id=0B8e3dtbFwQWUZ1I5dklCMmE5M2M
Wednesday, May 27, 2015
SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
1. How the research analysts are regulated in India?
The SEBI (Research Analysts) Regulations, 2014 (“RA Regulations”) were notified on September 01, 2014. The RA Regulations have come into effect from December 01, 2014. The regulations specify conditions for registration, certification, limitations on trading by research analysts, limitations on compensations of research analyst, various disclosures to be made during public appearance and during making recommendations through public media, code of conduct, records to be maintained, manner of conducting inspection, etc. The RA Regulations are available on the SEBI website www.sebi.gov.in.
2. What is the transition period provided for the existing persons acting as research analyst or research entity for obtaining registration under RA Regulations?
Transition period of six months from the date of commencement of RA Regulations has been provided to the existing persons acting as research analyst or research entity before commencement of the RA Regulations to comply with certification, qualification, segregation of research activity from other activities, etc. However, they are required to file an application for grant registration within the said period of six months from the commencement of the regulations i.e. December 01, 2014, to continue to do so thereafter. Such persons who have made applications for grant of registration can continue to do so till the disposal of the application. The person who fails to file an application for grant Page 2 of 12 of registration within the aforesaid time period of six months from the commencement of the regulations, shall stop acting as research analyst. If any person found to be acting as research analyst without making an application for grant of registration under RA regulations after expiry of such period i.e. May 31, 2015, appropriate action as deemed fit, under SEBI Act, 1992 may be initiated.[Ref. Regulation 3(1)].
3. Whether the individuals employed as research analyst with an entity are required to obtain registration certificate under RA Regulations?
No. Individuals employed as research analyst with an entity are not required obtain registration certificate from SEBI. The research entity which employs individuals as research analysts is required to obtain registration certificate under RA Regulations. The individuals employed as research analyst by research entity are required to comply with qualification and certification requirements as specified in the regulations. The trading limitations prescribed under the regulations are applicable to them.[Ref Regulation 7 and 16]
4. Whether the personnel involved in publication activities like marketing and editing are covered under the definition of Research Analyst under RA Regulations.
The RA Regulations do not cover personnel engaged in clerical activities/marketing activities, back office assistance, support services, etc, in relation to publication and/or distribution of research report. As per the regulations, “research analyst” means a person who is primarily responsible for,- i. preparation or publication of the content of the research report; or ii. providing research report; or iii. making 'buy/sell/hold' recommendation; or iv. giving price target; or v. offering an opinion concerning public offer, with respect to securities that are listed or to be listed in a stock exchange, whether or not any such person has the job title of 'research analyst' and includes any other entities engaged in issuance of research report or research analysis. Explanation.-The term also includes any associated person who reports. Page 3 of 12
5. What are all the communications excluded from the definition of research report?
"Research report” does not include the following communications:- i. comments on general trends in the securities market ii. discussions on the broad-based indices; iii. commentaries on economic, political or market conditions; iv. periodic reports or other communications prepared for unit holders of Mutual Fund or Alternative Investment Fund or clients of Portfolio Managers and Investment Advisers; v. internal communications that are not given to current or prospective clients; vi. communications that constitute offer documents or prospectus that are circulated as per regulations made by SEBI vii. statistical summaries of financial data of the companies viii. technical analyses relating to the demand and supply in a sector or index ix. any other communication which SEBI may specify from time to time [Ref. Regulation 2(1)(w)]
6. Whether technical analysis is exempted under the purview of the RA Regulations?
Making buy/sell/hold recommendation on individual stocks based on the technical analysis is not exempted under the purview of the RA Regulations. However, technical analyses relating to the demand and supply for a particular sector or index is exempted from the purview of the RA Regulations. [Ref. Regulation 2(1)(w)]
7. What are all communications excluded under periodic reports as per definition of research report?
Periodic reports such as sending financial account statements, annual reports and any other communication as required under the specific regulations prepared for unit holders of Mutual Fund or Alternative Investment Fund or clients of Portfolio Managers and Investment Advisers are excluded from the definition of research report under RA Regulations.
8. Does RA Regulations cover only equity and equity linked securities?
No. RA Regulations covers all the securities as defined under clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956. Page 4 of 12
9. Who are all covered under the definition of Research Entity?
Intermediaries registered with SEBI who is engaged in merchant banking or investment banking or brokerage services or underwriting services and issue research report or research analysis and other intermediaries to whom there is no specific exemption under RA Regulations are covered under the definition of research entity. Accordingly, SEBI registered Stock Brokers, Merchant Bankers and Underwriters and other intermediaries except those who are exempted from making application under RA Regulations are required to make application for grant of registration under RA Regulations, if they are engaged in issuance of research reports or research analyses. [refer to Regulation 2(v) for the definition of research entity]
10.Who is an independent research analyst?
"Independent research analyst" means a person whose only business activity is research analysis or preparation and/or publication of research report and includes individuals engaged in providing research services without being employed with any research entity(intermediary) and entities other than SEBI registered intermediaries who are engaged in research activities. [refer to Regulation 2(h)]
11.Who is a proxy adviser?
"Proxy adviser” means any person who provide advice, through any means, to institutional investor or shareholder of a company, in relation to exercise of their rights in the company including recommendations on public offer or voting recommendation on agenda items.[ Ref Regulation 2(1) (p)].
12.Whether proxy advisers are required to obtain registration under RA Regulations?
Yes. Proxy Advisers are required to obtain registration from SEBI under RA Regulations.
13.What are the additional requirements to be fulfilled by proxy adviser?
All the provisions of Chapter II, III, IV, V and VI of RA Regulations shall apply mutatis mutandis to the proxy adviser. The proxy adviser shall additionally disclose the following: Page 5 of 12 (i) the extent of research involved in a particular recommendation and the extent and/or effectiveness of its controls and procedures in ensuring the accuracy of issuer data; (ii) (ii) policies and procedures for interacting with issuers, informing issuers about the recommendation and review of recommendations. Proxy adviser is required to maintain the record of his voting recommendations and furnish the same to SEBI on request. [Ref. Regulation 23]
14.Who is required to make an application to get registration under RA Regulations?
In terms of the RA Regulations, no person shall act as a research analyst or research entity or hold itself out as a research analyst unless he has obtained a certificate of registration from SEBI on and from the commencement of RA Regulations unless an exemption specifically applies. [Ref. Regulation 3(1)]. Independent research analyst or research entity (intermediary) who is engaged in issuance of research report or research analysis is required to make an application for registration under RA Regulations.
15.What is the procedure of obtaining registration as a research analyst from SEBI?
Application shall be made in Form A as specified in RA Regulations with necessary supporting documents. A section by the name "Research Analyst" has been created on the SEBI website where in the details/circulars/press releases pertains to RA regulations will be uploaded on a periodic basis. A document by the name "How to get registered as research analyst" has also been uploaded under the relevant section.
16.Where to make an application to get registered as a research analyst?
The application for grant of registration as a research analyst under RA Regulations shall be filed with either the Head Office (HO) or the concerned Regional Office(RO) / Local Office(LO) of the SEBI under the jurisdiction of which the registered address of the applicant is located. The addresses of offices of SEBI are available on the website at www.sebi.gov.in and also on the link
http://www.sebi.gov.in/sebiweb/stpages/contact_us.jsp. Page 6 of 12
17.Who are exempted from making application for grant of registration under RA Regulations?
Investment Advisers, Credit Rating Agencies, Asset Management Companies and Fund Managers (i.e. fund managers of a mutual fund or alternative investment fund or venture capital fund or portfolio manager) shall not be required to be registered under these regulations. However, they are required to comply with Chapter III of these Regulations, if they issue research reports or their research report is circulated or distributed to public or general investors and/or if they or their directors or employees make public appearance. [Ref. Regulation 3(1)].
18.Who are all covered under public media?
Any persons who makes recommendation or offers an opinion concerning securities or public offers to the general public through any media source available such as radio, television, internet, web or print media are covered under the definition of "public media".
19.Whether journalists who are on the payrolls of media organizations such as newspaper or television are covered under definition of public media ?
Yes. SEBI (Research analyst) Regulations, 2014 covers any person including journalists who: i. make public appearance or ii. make comments through the public media for giving opinion or recommendations concerning securities or on public offers. Journalists employed by various news organizations and who comment on specific stock with proper research, which get published in news paper, etc have to comply with provisions specified under regulation 21(2) of SEBI (Research Analysts) Regulations, 2014. However, RA regulations do not cover the following communications while making recommendations through public media: (i) general trends in the securities market; (ii) discussions on the broad-based indices; (iii) commentaries on economic, political or market conditions; (iv) statistical summaries of financial data of the companies (v) technical analyses relating to the demand and supply in a sector or index based on trading volume and price Page 7 of 12
20.Whether journalists who are on the payrolls of media organizations such as newspaper or television are required to get registered with SEBI ?
No. The journalists who are on the payrolls of media agency such as newspaper or television are not required to get registered with SEBI. However, if they make public appearance or makes a recommendation or offers an opinion concerning securities or public offers through public media, all the provisions of regulations 16 on limitations on trading and 17 on limitations on compensation shall apply mutatis mutandis and they shall disclose their name, registration status and details of financial interest in the subject company.
21.Whether the persons making recommendations through public media are required to obtain registration under RA Regulations?
No. Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations. However, whenever they make public appearance or makes a recommendation or offers an opinion concerning securities or public offers through public media, all the provisions of regulations 16 on limitations on trading and 17 on limitations on compensation shall apply mutatis mutandis to him and he shall disclose his name, registration status and details of financial interest in the subject company. Further, if such person is also engaged in preparation and/or publication of research report or research analysis, he or the entity on whose behalf the he is acting as a research analyst, needs to get registered with SEBI.
22.What are the disclosures required for making recommendations in public media?
Any person including a director or employee of an investment adviser or credit rating agency or asset management company or fund manager, makes public appearance or makes a recommendation or offers an opinion concerning securities or public offers through public media, all the provisions of regulations 16 on limitations on trading and 17 on limitations on compensation shall apply mutatis mutandis to him and he shall disclose his name, registration status and details of financial interest in the subject company at the time of: (i) making such recommendation or offering such opinion in personal capacity; (ii) responding to queries from audiences or journalists in personal capacity; Page 8 of 12 (iii) communicating the research report or substance of the research report through the public media.
23.Whether any application fee is required to be paid at the time of making application for grant of registration under RA Regulations and What is the amount to be paid for grant of registration/renewal registration as research analyst?
Yes. Application fees must be paid along with the application Form for grant of registration. Applicants who are individuals and firms including proxy advisers are required to pay a sum of Rs. Five Thousand (Rs.5,000/-) as application fee at the time of filing of application for grant of registration. Applicants who are body corporates and Limited Liability Partnership Firms (LLPs) are required to pay a sum of Rs. Fifty Thousand (Rs. 50,000/-) as application fee at the time of filing of application for grant of registration. [Ref. Second schedule of RA Regulations]. Applicants who are individuals and firms are required to pay a sum of Rs. Ten Thousand (Rs.10,000/-) as registration fee at the time of grant of registration or renewal of certificate by SEBI. Applicants who are proxy advisers are required to pay a sum of Rs. Ten Thousand (Rs.10,000) as registration fee at the time of grant of registration or renewal of certificate by SEBI. Applicants who are body corporates and Limited Liability Partnership Firms (LLPs) are required to pay a sum of Rs. Five Lakh (Rs. 5,00,000) as registration fee at the time of grant or renewal of certificate by SEBI. [Ref. Second schedule of RA Regulations] S. No. Category Application Fee* Registration /Renewal Fee 1 Individual and Partnership Firms Rs. 5,000 Rs. 10,000 2 Proxy Advisers Rs. 5,000 Rs. 10,000 3 Body Corporate including Limited Liability Partnership Rs. 50,000 Rs.5,00,000 *Application fees must be paid along with the application Form for grant of registration. Page 9 of 12
24.What is the capital adequacy requirement for a Research Analyst?
A research analyst who is individual or partnership firm is required to have a minimum net worth of Rs. One Lakh. A research analyst who is body corporate or limited liability partnership firm (LLPs) required to have a minimum net worth of Rs. Twenty Five Lakh. [Ref. Regulation 8] Proxy Advisers shall have to comply with the capital adequacy requirements within three years from the date of commencement of the RA Regulations.
25.Can a sole proprietor make an application to get registered as a research analyst?
A sole proprietor can make an application to get registered as an independent research analyst. The proprietor of the sole proprietorship firm is required to fulfill eligibility conditions applicable to individual under RA Regulations.
26.Whether a person located outside India can issue research reports under RA Regulations?
Yes. Any person located outside India engaged in issuance of research report or research analysis in respect of securities listed or proposed to be listed on a stock exchange in India shall enter into an agreement with a research analyst or research entity registered under RA regulations.
27.What is the qualification and certification requirement under regulation 7(2) of RA Regulations?
An individual registered as a research analyst, individuals employed as research analyst and partners of a research analyst, as the case may be engaged in preparation and/or publication of research report or research analysis are required to obtain NISM certification for research analysts as specified by SEBI or other certification recognized by SEBI from time to time.
28.Is it mandatory for research analysts to include the words ‘research analyst’ in its name?
Research analyst registered under these regulations shall use the term "research analyst‟ in all correspondences. [Ref. Regulation 13(iii)] Page 10 of 12
29.What is the time period for obtaining certification as specified under regulation 7(2) of RA Regulations for an existing research analyst?
The existing persons acting as research analysts before commencement of the RA Regulations and seeking registration are required to comply with the regulation 7(2) of RA Regulations within two years from the date of commencement of RA Regulations i.e. December 01, 2014. [Ref. proviso to Regulation 7(2)]
30.In case of a partnership firm, who is required to fulfill qualification and certification requirement under regulation 7 of RA Regulations?
All the partners engaged in preparation and/or publication of research report or research analysis are required to fulfill qualification and certification requirement under regulation 7 of RA Regulations.
31.What is the criteria for Net worth certificate?
The Networth certificate should not be more than 6 months old at the time of filing of application.
32.How long does the certificate of registration remain valid under RA Regulations?
The certificate of registration under RA Regulations remains valid for five years or till suspended. [Ref. Regulation 10]
33.When can a research analyst/research entity can apply for grant of renewal of its registration?
A research analyst/research entity is required to apply for grant of renewal registration certificate to SEBI, three months before the expiry of the validity of the certificate. [Ref. Regulation 11]
34.Who are all required to monitor the personal trading activities of the individuals employed as research analysts ?
Research entities and independent research analysts who employ individuals as research analysts are required to monitor and record the personal trading activities of the individuals employed as research analyst with them {Ref Regulation 16(1)} Page 11 of 12
35.What are trading restrictions imposed under RA Regulations?
Research analyst or his associate shall not deal or trade any securities that the research analyst recommends or follows within 30 days before and 5 days after the publication of a research report on the subject company. Research analyst or his associate shall not deal or trade directly or indirectly any securities that he reviews in a manner contrary to his outstanding recommendation, etc. [ Ref Regulation 16]
36.Whether the limitations on trading prescribed under regulation 16 of RA Regulations are applicable to research entity?
The trading limitations prescribed in the RA regulations are applicable to the individuals employed as research analyst, individuals registered as research analyst, independent research analysts, research entities and their associates. [Ref Regulation 16(2)]
37.Whether the limitations on trading applicable to research entity or its associates, if it has segregated its research activities from other activities?
The limitations on trading prescribed under regulation 16(2) to 16(4) are not applicable to a research entity or its associates, if such research entity has segregated its research activities from all other activities and maintained arms-length relationship between such activities. A time period of six months from the commencement of RA Regulations i.e. December 01, 2014,has been provided to the existing research entities to segregate its research activities from all other activities.
38.Who are required to comply with chapter III of RA Regulations?
All the SEBI registered research analysts are required to comply with chapter III of RA Regulations. Further, the exempted persons from obtaining registration under RA Regulations such as investment adviser, credit rating agency, asset management company or fund manager, who issues research report or circulates/distributes research report to public or its director or employee who makes public appearance are required to comply with Chapter III of RA regulations. [Ref. proviso to Regulation 3(1)]
39.Who are required to appoint a compliance officer under RA Regulations?
Research analyst or research entity which is a body corporate or limited liability partnership firm is required to appoint a compliance officer who shall be responsible for monitoring the compliance in respect of the requirements of the Act, regulations, notifications, guidelines, instructions issued by SEBI. [Ref. Regulation 26] Page 12 of 12
40.Whether the existing compliance officer of a Brokerage Firm/Merchant Banking Firm, etc can act as a compliance officer of research entity under RA regulations.
Yes. The existing compliance officer of intermediary can be appointed as a compliance officer of a research entity under RA Regulations.
The SEBI (Research Analysts) Regulations, 2014 (“RA Regulations”) were notified on September 01, 2014. The RA Regulations have come into effect from December 01, 2014. The regulations specify conditions for registration, certification, limitations on trading by research analysts, limitations on compensations of research analyst, various disclosures to be made during public appearance and during making recommendations through public media, code of conduct, records to be maintained, manner of conducting inspection, etc. The RA Regulations are available on the SEBI website www.sebi.gov.in.
2. What is the transition period provided for the existing persons acting as research analyst or research entity for obtaining registration under RA Regulations?
Transition period of six months from the date of commencement of RA Regulations has been provided to the existing persons acting as research analyst or research entity before commencement of the RA Regulations to comply with certification, qualification, segregation of research activity from other activities, etc. However, they are required to file an application for grant registration within the said period of six months from the commencement of the regulations i.e. December 01, 2014, to continue to do so thereafter. Such persons who have made applications for grant of registration can continue to do so till the disposal of the application. The person who fails to file an application for grant Page 2 of 12 of registration within the aforesaid time period of six months from the commencement of the regulations, shall stop acting as research analyst. If any person found to be acting as research analyst without making an application for grant of registration under RA regulations after expiry of such period i.e. May 31, 2015, appropriate action as deemed fit, under SEBI Act, 1992 may be initiated.[Ref. Regulation 3(1)].
3. Whether the individuals employed as research analyst with an entity are required to obtain registration certificate under RA Regulations?
No. Individuals employed as research analyst with an entity are not required obtain registration certificate from SEBI. The research entity which employs individuals as research analysts is required to obtain registration certificate under RA Regulations. The individuals employed as research analyst by research entity are required to comply with qualification and certification requirements as specified in the regulations. The trading limitations prescribed under the regulations are applicable to them.[Ref Regulation 7 and 16]
4. Whether the personnel involved in publication activities like marketing and editing are covered under the definition of Research Analyst under RA Regulations.
The RA Regulations do not cover personnel engaged in clerical activities/marketing activities, back office assistance, support services, etc, in relation to publication and/or distribution of research report. As per the regulations, “research analyst” means a person who is primarily responsible for,- i. preparation or publication of the content of the research report; or ii. providing research report; or iii. making 'buy/sell/hold' recommendation; or iv. giving price target; or v. offering an opinion concerning public offer, with respect to securities that are listed or to be listed in a stock exchange, whether or not any such person has the job title of 'research analyst' and includes any other entities engaged in issuance of research report or research analysis. Explanation.-The term also includes any associated person who reports. Page 3 of 12
5. What are all the communications excluded from the definition of research report?
"Research report” does not include the following communications:- i. comments on general trends in the securities market ii. discussions on the broad-based indices; iii. commentaries on economic, political or market conditions; iv. periodic reports or other communications prepared for unit holders of Mutual Fund or Alternative Investment Fund or clients of Portfolio Managers and Investment Advisers; v. internal communications that are not given to current or prospective clients; vi. communications that constitute offer documents or prospectus that are circulated as per regulations made by SEBI vii. statistical summaries of financial data of the companies viii. technical analyses relating to the demand and supply in a sector or index ix. any other communication which SEBI may specify from time to time [Ref. Regulation 2(1)(w)]
6. Whether technical analysis is exempted under the purview of the RA Regulations?
Making buy/sell/hold recommendation on individual stocks based on the technical analysis is not exempted under the purview of the RA Regulations. However, technical analyses relating to the demand and supply for a particular sector or index is exempted from the purview of the RA Regulations. [Ref. Regulation 2(1)(w)]
7. What are all communications excluded under periodic reports as per definition of research report?
Periodic reports such as sending financial account statements, annual reports and any other communication as required under the specific regulations prepared for unit holders of Mutual Fund or Alternative Investment Fund or clients of Portfolio Managers and Investment Advisers are excluded from the definition of research report under RA Regulations.
8. Does RA Regulations cover only equity and equity linked securities?
No. RA Regulations covers all the securities as defined under clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956. Page 4 of 12
9. Who are all covered under the definition of Research Entity?
Intermediaries registered with SEBI who is engaged in merchant banking or investment banking or brokerage services or underwriting services and issue research report or research analysis and other intermediaries to whom there is no specific exemption under RA Regulations are covered under the definition of research entity. Accordingly, SEBI registered Stock Brokers, Merchant Bankers and Underwriters and other intermediaries except those who are exempted from making application under RA Regulations are required to make application for grant of registration under RA Regulations, if they are engaged in issuance of research reports or research analyses. [refer to Regulation 2(v) for the definition of research entity]
10.Who is an independent research analyst?
"Independent research analyst" means a person whose only business activity is research analysis or preparation and/or publication of research report and includes individuals engaged in providing research services without being employed with any research entity(intermediary) and entities other than SEBI registered intermediaries who are engaged in research activities. [refer to Regulation 2(h)]
11.Who is a proxy adviser?
"Proxy adviser” means any person who provide advice, through any means, to institutional investor or shareholder of a company, in relation to exercise of their rights in the company including recommendations on public offer or voting recommendation on agenda items.[ Ref Regulation 2(1) (p)].
12.Whether proxy advisers are required to obtain registration under RA Regulations?
Yes. Proxy Advisers are required to obtain registration from SEBI under RA Regulations.
13.What are the additional requirements to be fulfilled by proxy adviser?
All the provisions of Chapter II, III, IV, V and VI of RA Regulations shall apply mutatis mutandis to the proxy adviser. The proxy adviser shall additionally disclose the following: Page 5 of 12 (i) the extent of research involved in a particular recommendation and the extent and/or effectiveness of its controls and procedures in ensuring the accuracy of issuer data; (ii) (ii) policies and procedures for interacting with issuers, informing issuers about the recommendation and review of recommendations. Proxy adviser is required to maintain the record of his voting recommendations and furnish the same to SEBI on request. [Ref. Regulation 23]
14.Who is required to make an application to get registration under RA Regulations?
In terms of the RA Regulations, no person shall act as a research analyst or research entity or hold itself out as a research analyst unless he has obtained a certificate of registration from SEBI on and from the commencement of RA Regulations unless an exemption specifically applies. [Ref. Regulation 3(1)]. Independent research analyst or research entity (intermediary) who is engaged in issuance of research report or research analysis is required to make an application for registration under RA Regulations.
15.What is the procedure of obtaining registration as a research analyst from SEBI?
Application shall be made in Form A as specified in RA Regulations with necessary supporting documents. A section by the name "Research Analyst" has been created on the SEBI website where in the details/circulars/press releases pertains to RA regulations will be uploaded on a periodic basis. A document by the name "How to get registered as research analyst" has also been uploaded under the relevant section.
16.Where to make an application to get registered as a research analyst?
The application for grant of registration as a research analyst under RA Regulations shall be filed with either the Head Office (HO) or the concerned Regional Office(RO) / Local Office(LO) of the SEBI under the jurisdiction of which the registered address of the applicant is located. The addresses of offices of SEBI are available on the website at www.sebi.gov.in and also on the link
http://www.sebi.gov.in/sebiweb/stpages/contact_us.jsp. Page 6 of 12
17.Who are exempted from making application for grant of registration under RA Regulations?
Investment Advisers, Credit Rating Agencies, Asset Management Companies and Fund Managers (i.e. fund managers of a mutual fund or alternative investment fund or venture capital fund or portfolio manager) shall not be required to be registered under these regulations. However, they are required to comply with Chapter III of these Regulations, if they issue research reports or their research report is circulated or distributed to public or general investors and/or if they or their directors or employees make public appearance. [Ref. Regulation 3(1)].
18.Who are all covered under public media?
Any persons who makes recommendation or offers an opinion concerning securities or public offers to the general public through any media source available such as radio, television, internet, web or print media are covered under the definition of "public media".
19.Whether journalists who are on the payrolls of media organizations such as newspaper or television are covered under definition of public media ?
Yes. SEBI (Research analyst) Regulations, 2014 covers any person including journalists who: i. make public appearance or ii. make comments through the public media for giving opinion or recommendations concerning securities or on public offers. Journalists employed by various news organizations and who comment on specific stock with proper research, which get published in news paper, etc have to comply with provisions specified under regulation 21(2) of SEBI (Research Analysts) Regulations, 2014. However, RA regulations do not cover the following communications while making recommendations through public media: (i) general trends in the securities market; (ii) discussions on the broad-based indices; (iii) commentaries on economic, political or market conditions; (iv) statistical summaries of financial data of the companies (v) technical analyses relating to the demand and supply in a sector or index based on trading volume and price Page 7 of 12
20.Whether journalists who are on the payrolls of media organizations such as newspaper or television are required to get registered with SEBI ?
No. The journalists who are on the payrolls of media agency such as newspaper or television are not required to get registered with SEBI. However, if they make public appearance or makes a recommendation or offers an opinion concerning securities or public offers through public media, all the provisions of regulations 16 on limitations on trading and 17 on limitations on compensation shall apply mutatis mutandis and they shall disclose their name, registration status and details of financial interest in the subject company.
21.Whether the persons making recommendations through public media are required to obtain registration under RA Regulations?
No. Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations. However, whenever they make public appearance or makes a recommendation or offers an opinion concerning securities or public offers through public media, all the provisions of regulations 16 on limitations on trading and 17 on limitations on compensation shall apply mutatis mutandis to him and he shall disclose his name, registration status and details of financial interest in the subject company. Further, if such person is also engaged in preparation and/or publication of research report or research analysis, he or the entity on whose behalf the he is acting as a research analyst, needs to get registered with SEBI.
22.What are the disclosures required for making recommendations in public media?
Any person including a director or employee of an investment adviser or credit rating agency or asset management company or fund manager, makes public appearance or makes a recommendation or offers an opinion concerning securities or public offers through public media, all the provisions of regulations 16 on limitations on trading and 17 on limitations on compensation shall apply mutatis mutandis to him and he shall disclose his name, registration status and details of financial interest in the subject company at the time of: (i) making such recommendation or offering such opinion in personal capacity; (ii) responding to queries from audiences or journalists in personal capacity; Page 8 of 12 (iii) communicating the research report or substance of the research report through the public media.
23.Whether any application fee is required to be paid at the time of making application for grant of registration under RA Regulations and What is the amount to be paid for grant of registration/renewal registration as research analyst?
Yes. Application fees must be paid along with the application Form for grant of registration. Applicants who are individuals and firms including proxy advisers are required to pay a sum of Rs. Five Thousand (Rs.5,000/-) as application fee at the time of filing of application for grant of registration. Applicants who are body corporates and Limited Liability Partnership Firms (LLPs) are required to pay a sum of Rs. Fifty Thousand (Rs. 50,000/-) as application fee at the time of filing of application for grant of registration. [Ref. Second schedule of RA Regulations]. Applicants who are individuals and firms are required to pay a sum of Rs. Ten Thousand (Rs.10,000/-) as registration fee at the time of grant of registration or renewal of certificate by SEBI. Applicants who are proxy advisers are required to pay a sum of Rs. Ten Thousand (Rs.10,000) as registration fee at the time of grant of registration or renewal of certificate by SEBI. Applicants who are body corporates and Limited Liability Partnership Firms (LLPs) are required to pay a sum of Rs. Five Lakh (Rs. 5,00,000) as registration fee at the time of grant or renewal of certificate by SEBI. [Ref. Second schedule of RA Regulations] S. No. Category Application Fee* Registration /Renewal Fee 1 Individual and Partnership Firms Rs. 5,000 Rs. 10,000 2 Proxy Advisers Rs. 5,000 Rs. 10,000 3 Body Corporate including Limited Liability Partnership Rs. 50,000 Rs.5,00,000 *Application fees must be paid along with the application Form for grant of registration. Page 9 of 12
24.What is the capital adequacy requirement for a Research Analyst?
A research analyst who is individual or partnership firm is required to have a minimum net worth of Rs. One Lakh. A research analyst who is body corporate or limited liability partnership firm (LLPs) required to have a minimum net worth of Rs. Twenty Five Lakh. [Ref. Regulation 8] Proxy Advisers shall have to comply with the capital adequacy requirements within three years from the date of commencement of the RA Regulations.
25.Can a sole proprietor make an application to get registered as a research analyst?
A sole proprietor can make an application to get registered as an independent research analyst. The proprietor of the sole proprietorship firm is required to fulfill eligibility conditions applicable to individual under RA Regulations.
26.Whether a person located outside India can issue research reports under RA Regulations?
Yes. Any person located outside India engaged in issuance of research report or research analysis in respect of securities listed or proposed to be listed on a stock exchange in India shall enter into an agreement with a research analyst or research entity registered under RA regulations.
27.What is the qualification and certification requirement under regulation 7(2) of RA Regulations?
An individual registered as a research analyst, individuals employed as research analyst and partners of a research analyst, as the case may be engaged in preparation and/or publication of research report or research analysis are required to obtain NISM certification for research analysts as specified by SEBI or other certification recognized by SEBI from time to time.
28.Is it mandatory for research analysts to include the words ‘research analyst’ in its name?
Research analyst registered under these regulations shall use the term "research analyst‟ in all correspondences. [Ref. Regulation 13(iii)] Page 10 of 12
29.What is the time period for obtaining certification as specified under regulation 7(2) of RA Regulations for an existing research analyst?
The existing persons acting as research analysts before commencement of the RA Regulations and seeking registration are required to comply with the regulation 7(2) of RA Regulations within two years from the date of commencement of RA Regulations i.e. December 01, 2014. [Ref. proviso to Regulation 7(2)]
30.In case of a partnership firm, who is required to fulfill qualification and certification requirement under regulation 7 of RA Regulations?
All the partners engaged in preparation and/or publication of research report or research analysis are required to fulfill qualification and certification requirement under regulation 7 of RA Regulations.
31.What is the criteria for Net worth certificate?
The Networth certificate should not be more than 6 months old at the time of filing of application.
32.How long does the certificate of registration remain valid under RA Regulations?
The certificate of registration under RA Regulations remains valid for five years or till suspended. [Ref. Regulation 10]
33.When can a research analyst/research entity can apply for grant of renewal of its registration?
A research analyst/research entity is required to apply for grant of renewal registration certificate to SEBI, three months before the expiry of the validity of the certificate. [Ref. Regulation 11]
34.Who are all required to monitor the personal trading activities of the individuals employed as research analysts ?
Research entities and independent research analysts who employ individuals as research analysts are required to monitor and record the personal trading activities of the individuals employed as research analyst with them {Ref Regulation 16(1)} Page 11 of 12
35.What are trading restrictions imposed under RA Regulations?
Research analyst or his associate shall not deal or trade any securities that the research analyst recommends or follows within 30 days before and 5 days after the publication of a research report on the subject company. Research analyst or his associate shall not deal or trade directly or indirectly any securities that he reviews in a manner contrary to his outstanding recommendation, etc. [ Ref Regulation 16]
36.Whether the limitations on trading prescribed under regulation 16 of RA Regulations are applicable to research entity?
The trading limitations prescribed in the RA regulations are applicable to the individuals employed as research analyst, individuals registered as research analyst, independent research analysts, research entities and their associates. [Ref Regulation 16(2)]
37.Whether the limitations on trading applicable to research entity or its associates, if it has segregated its research activities from other activities?
The limitations on trading prescribed under regulation 16(2) to 16(4) are not applicable to a research entity or its associates, if such research entity has segregated its research activities from all other activities and maintained arms-length relationship between such activities. A time period of six months from the commencement of RA Regulations i.e. December 01, 2014,has been provided to the existing research entities to segregate its research activities from all other activities.
38.Who are required to comply with chapter III of RA Regulations?
All the SEBI registered research analysts are required to comply with chapter III of RA Regulations. Further, the exempted persons from obtaining registration under RA Regulations such as investment adviser, credit rating agency, asset management company or fund manager, who issues research report or circulates/distributes research report to public or its director or employee who makes public appearance are required to comply with Chapter III of RA regulations. [Ref. proviso to Regulation 3(1)]
39.Who are required to appoint a compliance officer under RA Regulations?
Research analyst or research entity which is a body corporate or limited liability partnership firm is required to appoint a compliance officer who shall be responsible for monitoring the compliance in respect of the requirements of the Act, regulations, notifications, guidelines, instructions issued by SEBI. [Ref. Regulation 26] Page 12 of 12
40.Whether the existing compliance officer of a Brokerage Firm/Merchant Banking Firm, etc can act as a compliance officer of research entity under RA regulations.
Yes. The existing compliance officer of intermediary can be appointed as a compliance officer of a research entity under RA Regulations.
Saturday, April 18, 2015
MAKING MONEY IS NOT SO SIMPLE lllllllll
- There is no clear cut way to make money from trading, which is why most private traders lose money. Trading is definitely not the easy-life, loads-a-money kind... I believe so many start trading in the belief that they will have fantastic riches with very little effort. Sadly they will definitely be in the 80% that lose and give up. Most accounts have been blown because of the 'account killer' mindset. For myself it took me quite a bit of time to stop losing like an idiot!
- Becoming an expert trader does not happen overnight. It takes years of practice - when you enter the stock market you need to realise that you're up against some of the best people in the world operating in very complex markets. It is easier to lose money than to make money on a consistent basis.
- Trading is very fickle. Just like a restaurant you are only as good as your last trade. Don't ever take success for granted...I should know...having gone straight from novice to making a lot, then having a bad few years, I'm now clawing way back up. You have to treat it like a business and invest substantial hours into it.
- Don't think that just because you have read books on technical analysis and have familiarised yourself with the patterns and signs, that it will automatically follow that you will make money from trading. Imagine how difficult it would have been trying to become a plumber from just reading books. I'm not saying you couldn't become a plumber (of sorts) from reading and trying things out and practicing various skills of the trade over and over again but imagine how many cock ups there would be before you got it right. How many times would you have lost your temper and threatened to give up? How much money would you have lost before being able to do plumbing jobs consistently profitably? That's the journey we are on. We are up against pros with experienced mentors and bottomless pits of cash. Brings things into perspective just how difficult it is.
- The main problem with books is that you cannot ask questions in order to test the strategies and check understanding of the subject matter. Add to that the fact that simple strategies make money and imo an intraday technical book would be 90% about money management and psychology - only 5-10% on strategies. So two and a half chapters and the book is finished. The real fact is that you can't gain experience from books and as such I believe experience and practice is a far more important ingredient for success (in anything not just trading) than the technical information and methods. The trading methods can be acquired in books but it is experience that allows us to see the things that really matter and I'm not convinced that the information from a book can ever act as that 'filter'.
- A very important principle to remember when trading is that that which is easy to do is almost certainly the wrong thing to do. It is easy to take your profits when you have a big winner and that is why it is wrong. 90% of traders take profits way too soon because it is the easy thing to do and because of this they never generate the handful of big winners that are required to pay for all the small losing trades. 90% of traders lose money at the end of the year because they do the easy thing. If we want to be part of the 10% that makes money then we have to do the hard thing. This is the true essence of being a contrarian trader.
- Patience is one of the key ingredients in my trading strategy, it stops me rushing in to things which in current market conditions helps me... Remember that knowledge is important, but patience and discipline are more important and tend to be harder to come by. Even if your system requires you to trade short-term you shouldn't be jumping in all the time believing that every move has to be traded because there's money to be made on every trade... (actually there is but that doesn't mean you can monetise it!).
- So patience guards against overtrading in the markets. Patience for a trader is an invaluable attribute to possess; the ability to wait for a trading setup or market opportunity and the patience to keep a running trade open without interference will surely help you create the gains you targeted. In fact, you can greatly improve your chances of success simply by having the discipline and patience to wait for the right opportunity. Take your time and only go for the best of opportunities making sure that the elements of your trading strategy are satisfied before entering the trade. Never worry about missing the boat and accept that waiting on the sidelines is a vital part of the game. Set strict targets for profits and losses and preferably the trade should offer a favourable risk/reward ratio.
- All the best traders make mistakes. The guys who make the most money, are those who maintain a position and stick with it if they get the direction right of course. The skill is limiting your losses and running your winning trades. Never fund a losing trade but also never keep too tight a stop. How many of us can say how much we would have made if only we had held on just that little bit more?
- And don't give up. Keep plugging away. An experienced broker once told me that there are quite a number of good analysts in the City, but very few of them can manage money. At the time I didn't understand that but in fact he was very much spot on. As you evolve you will find out the real problem that traders face : THEMSELVES. This is where the journey becomes interesting.
Subscribe to:
Posts (Atom)