TCS plans another share buyback; shares up 2.43%

Shares of Tata Consultancy Services TCS), India’s largest company by market capitalisation, jumped by almost 3 per cent on Wednesday after the company informed stock exchanges that its board will consider share buyback on June 15.

TCS shares finally settled the day at Rs 1,824.20 on BSE, 2.43 per cent higher than its previous close. Its market capitalisation soared by around Rs 17,000 crore to Rs 6.98 lakh crore from 6.81 lakh crore a day earlier.

Artificial intelligence can bridge rich-poor divide: Fadnavis

Dismissing the fear of unemployment due to artificial intelligence (AI), Maharashtra chief minister Devendra Fadnavis has said AI would create more jobs and help in bridging the gap between the rich and the poor. “On the contrary, it will create even more jobs and not just that, it will repair and solve ma-ny problems. Artificial intelligence has the power to bridge the gap between the rich and the poor,” he said at a panel discussion on Governance and Artificial Intelligence with Vice Premier of Quebec Dominique Anglade in Montreal.

Rites sets IPO price band at Rs 180-185

The initial public offering of Rites, a state-owned company under the ministry of railways, will open on June 20.

Rites, which provides transport infrastructure consultancy and quality assurance services in India and abroad, proposes to raise Rs 466 crore by divesting 12.6 per cent stake in a price band of Rs 180-185 per share of Rs 10 face value. Retail investors and employees will be offered a discount of Rs 6 per equity share.

Sebi orders probe into ASM list leak

SEBI has initiated a probe into the alleged leak on May 31 of a list of stocks ahead of their being placed under Additional Surveillance Measures (ASM). The regulator ordered the probe following reports that the list was leaked and players have sold stocks before the official communication was made public.

It is suspected that operators in Mumbai and Gujarat may have had access to the list ahead of its official release on May 31 and that they used the information to profit from it by short-selling the stocks on the list.

Trading curbs now on more stocks

To curb manipulation, exchanges have added to the list of stocks in which trading curbs were imposed as 447 scrips have new circuit filters on the higher side, while 38 scrips on the lower side.

According to exchange officials, the additional surveillance measure (ASM) has been put in place to check any price-volume manipulation or abnormal price rise that is not in sync with financial health or fundamentals of the company.

Officials & market operators’ Nexus suspected

Sources said, Sebi is trying to figure out whether the leak happened at its end or from the exchanges which put the notification on the website after the trading hours on May 31.

It is suspected that there is a nexus between officials and market operators who took advantage of having prior price sensitive information to make gains.

Measure to curtail speculative activities

The Securities and Exchange Board of India and stock exchanges have introduced additional surveillance measures (ASM) on stocks with surveillance concerns such as price variation, volatility etc. The measure which is expected to protect small investors, will curtail speculative activities in the stocks.

A step to strengthen market integrity

Bringing select stocks under additional surveillance measures (ASM) by market regulator Securities and Exchange Board of India (SEBI) and stock exchanges adding more stocks under ASM category to further strengthen market integrity amidst price bubbles in an over heated market condition is seen as a good measure by analysts and market participants.

ASM follows Graded Surveillance Measures (GSM) introduced last year by the stock exchanges on Sebi’s directive which had a list of 910 stocks with defined surveillance grade from I to VI.

Rs 500cr credit growth fund likely in July

The government is likely to launch a Rs 500 crore credit enhancement fund next month to facilitate infrastructure investments by insurance and pension funds, a senior finance ministry official said on Monday. The fund was first announced in the financial budget for financial year 2016-17.

New RBI norms for credit discipline among big borrowers

The Reserve Bank of India (RBI) has proposed stipulating a minimum level of ‘loan component’ in fund-based working capital loans for large borrowers. Under the existing cash credit system, bankers enhance the credit limits for companies annually without looking at the ability of borrowers to repay the loan amount. The fresh  move is likely to promote greater credit discipline among large borrowers enjoying working capital facilities.