Specialist in Indian Banking and Economic Research

Hemindra Hazari

Is a Securities & Exchange Board of India (SEBI) registered research analyst with over 25 years experience in the Indian capital markets with a specialization in banking and economy research and has managerial experience of establishing profitable equities business, leading and mentoring analysts.  He has worked with prominent foreign and domestic capital market firms such as UBS, Societe Generale, HSBC, ASK Raymond James  and Karvy Stock  Broking and is a regular guest on business media channels and is respected for his non-consensus view on stocks and the market.

Select Private Banks' Stellar Performance – in Diverging from the Facts

A Dose of Transparency, Better Late than Never

Thematic (Sector/Industry)

India Financials / Thematic (Sector/Industry)

On August 4, the Securities and Exchange Board of India (SEBI), the capital markets regulator, issued a path-breaking circular compelling listed companies to inform the stock exchanges within a day of defaulting on bank loans and debt securities.On September 29, on the eve of its implementation, SEBI withdrew the circular, without any explanation.The original circular would have brought greater transparency when companies defaulted and instilled discipline for companies to service their interest commitments on the due date. SEBI’s apparent capitulation to strong vested interests marks a sad day for the regulator’s credibility and transparency in the market. Alternatively, it is possible the government forced SEBI’s hand, as it feared huge additional corporate non-performing assets and consequent meltdown in banks and the stock market at a time when foreign investors are departing the stock market.

On August 4, the Securities and Exchange Board of India (SEBI), the capital markets regulator, issued a path-breaking circular compelling listed companies to inform the stock exchanges within a day of defaulting on bank loans and debt securities.On September 29, on the eve of its implementation, SEBI withdrew the circular, without any explanation.The original circular would have brought greater transparency when companies defaulted and instilled discipline for companies to service their interest commitments on the due date. SEBI’s apparent capitulation to strong vested interests marks a sad day for the regulator’s credibility and transparency in the market. Alternatively, it is possible the government forced SEBI’s hand, as it feared huge additional corporate non-performing assets and consequent meltdown in banks and the stock market at a time when foreign investors are departing the stock market.

The Problem with Transparency Is That You Can See Things