Sebi announces new guidelines for stock exchange governance
The Securities and Exchange Board of India has notified new norms for stock exchanges. A very recognised stock exchange shall have a minimum net worth of Rs 100 crore at all times and at least 51 per cent of stake has to be held by public. Besides, no Indian entity, either individually or together with persons acting in concert, would be allowed to acquire or hold more than 5 per cent stake directly or indirectly in a stock exchange.
Oil at 18-month low
Brent crude oil slid nearly 4 percent in heavy trading on Thursday, dropping below $90 a barrel for the first time in 18 months as weak economic data from China, the United States and Europe pointed to prospects for slower oil demand. In London, Brent futures for August delivery ended down $3.46 at $89.23 a barrel, the lowest settlement for front-month Brent since December 2010.
Cut in gas reserves to hurt power producers
Cut in Niko Estimates of KG-D6 gas output on the East coast of India, can impact Reliance Power Samalkot plant awaiting gas allocation. A fall could also lead to delays in implementation of the Rs 1000 crore project. Analysts say that the domestic power output could fall sharply by as high 20 per cent. Shares in Reliance Industries fell as much as 3.2 percent on Thursday on renewed concerns about gas output after Canada's Niko Resources slashed the reserve estimate at the KG D6 block, in which both hold stakes.
Cement companies under spotlight
Shares of cement companies could see a fall after India’s Competition Commission imposed a fine of Rs 6,000 crore over cement cartelization. Although companies are likely to challenge the verdict, they will have to keep the fine money as contingency liabilities on the balance sheet. This means, for the time that litigation goes on, companies will not be able to use those funds that run into 5-10 per cent of their annual net profit.