Sebi asks exchanges to move to T+1 settlement cycle on an optional basis

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The Securities Exchange Board of India (Sebi) has introduced an optional T+1 settlement cycle for the markets. T+1 means that settlements will have to be cleared within one day of the actual transactions taking place. The regulator has put the onus on the stock exchanges to decide whether they want to opt for the shorter settlement cycle for any of the listed scrips. This can be done after giving a one-month prior notice to all stakeholders. A switch to the T+1 settlement cycle is expected to benefit domestic investors by increasing market liquidity trading turnover while reducing settlement risk broker defaults. Foreign portfolio investors (FPIs), however, are expected to face considerable operational challenges in adjusting to the new regime because of the difference in time zones, especially for the US European investors. “Sebi has been receiving requests from various stakeholders to further shorten the settlement cycle. Based on discussions with the stock exchanges, clearing corporations, depositories, it has been decided to provide flexibility to the stock exchanges to offer either T+1 or T+2 settlement cycle,” said a note from the regulator on Tuesday. The provisions of the circular come into effect from January 1, 2022. Currently, trades on the Indian stock exchanges are settled within two days, just like most major markets such as Singapore, Hong Kong, Australia, Japan, South Korea. Taiwan, which had switched to T+1 settlement, has moved back to the T+2 cycle. “Domestic investors will be in favour of moving to the T+1 system since all the money today is coming on a realised basis. The offshore investors, however, will face an issue,” said a person familiar with the matter.

Shortening the timelines

  • Exchanges can opt for the shorter settlement cycle for any of the listed scrips after one-month prior notice to market participants
  • T+1 settlement cycle to benefit domestic investors by increasing market liquidity trading turnover
  • It aims to reduce settlement risk broker defaults
  • US European investors to face considerable operational challenges in adopting T+1 because of difference in time zones
  • Global banks FPIs will find it difficult to fulfill the funding obligations
  • Two different settlement cycles on different exchanges for the same scrip could result in flow of domestic liquidity from one exchange to another

According to him, the exchanges may initially try to move 5, 10 or 15 scrips that are outside of the key benchmark indices such as the Nifty 50 the Sensex to the T+1 cycle. “FPIs are the biggest drivers of Indian equities moving the Sensex or Nifty stocks could prove too risky if liquidity dries up,” he said. After opting for the T+1 settlement cycle for a scrip, the stock exchange will have to mandatorily continue with the same for a minimum period of six months.

After that, in case the exchange intends to switch back to the T+2 settlement cycle, it will do so by giving one-month advance notice to the market. Any subsequent switch (from T+1 to T+2 or vice versa) will be subject to the minimum notice period. There will be no netting between T+1 T+2 settlements.

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Children 6 months up should get flu shot, delay during severe COVID-19 illness: pediatrics group

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Children aged 6 months older should receive a flu vaccine this fall, the American Academy of Pediatrics advised Tuesday, however kids with moderate-to-severe COVID-19 should delay flu shots until they have recovered.

Experts are concerned about an uptick in flu activity this winter amid the return to in-person learning, the group noted.

COVID-19, FLU ‘TWINDEMIC’ THREAT WORRIES DOCTORS: ‘GET FLU SHOT EARLY’

“During the COVID-19 pandemic, it’s important to remember that influenza is also a highly contagious respiratory virus that can cause severe illness even death in children,” Dr. Flor Munoz, lead author of the policy statement technical report, developed by the AAP Committee on Infectious Diseases, said in a statement issued Tuesday. “The flu vaccine is safe, effective, can be given alongside other routine immunizations the COVID-19 vaccine.”

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The pediatrics group doesn’t prefer one type of flu vaccine over the other; depending on age health kids can receive an injection or nasal spray. Other recommendations include flu vaccinations among kids in high-risk groups, those with an egg allergy for pregnant postpartum women.

Flu shots can lower the risk of severe illness or hospitalization with the flu, the AAP estimated that 80% of pediatric flu deaths in years past were among those not yet vaccinated, with about half of deaths in otherwise healthy children.

The AAP also recommended COVID-19 vaccine for all kids aged 12 older.

“This year it will be especially important to keep our children healthy, as we’ve seen hospital beds emergency services fill beyond capacity in communities where transmission of SARS-CoV-2 other respiratory viruses remains high,” Munoz added. “This means catching up on all immunizations, including the flu vaccine, making sure children wash hands frequently, wear masks in school during indoor group activities, maintain physical distance from others.”

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Sebi introduces T+1 settlement cycle on optional basis to enhance liquidity

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Capital markets regulator Sebi on Tuesday introduced T+1 settlement cycle for completion of share transactions on optional basis in a move to enhance market liquidity.


Currently, trades on the Indian stock exchanges are settled in two working days after the transaction is done (T+2).





The regulator has decided to provide flexibility to stock exchanges to offer either T+1 or T+2 settlement cycle for completion of share transactions, according to a circular.


The stock exchange may choose to offer T+1 settlement cycle on any of the scrips, after giving an advance notice of at least one month, regarding change in the settlement cycle, to all stakeholders, including the public at large, also disseminating the same on its website.


After opting for T+1 settlement cycle for a scrip, the stock exchange will have to mandatorily continue with the same for a minimum period of six months.


Thereafter, in case the stock exchange intends to switch back to T+2 settlement cycle, it will do so by giving one-month advance notice to the market.


Any subsequent switch (from T+1 to T+2 or vice versa) will be subject to minimum period notice period as mentioned by the regulator.


The decision has been taken based on discussions with market infrastructure institutions like stock exchanges, clearing corporations depositories.


“There shall be no netting between T+1 T+2 settlements,” the Securities Exchange Board of India (Sebi) said.


The settlement option for security will be applicable to all types of transactions in the security on that stock exchange. For example, if a security is placed under T+1 settlement on a stock exchange, the regular market deals as well as block deals will follow the T+1 settlement cycle on that bourse.


The new framework will come into force with effect from January 1, 2022, the regulator said.


Sebi has directed stock exchanges, clearing corporations depositories to take necessary steps to put in place proper systems procedures for smooth introduction of T+1 settlement cycle on optional basis.


Earlier in 2003, the regulator had shortened the settlement cycle from T+3 rolling settlement to T+2.


The Association of National Exchanges Members of India (Anmi), a group of over 900 stockbrokers across the country, in a letter to Sebi late last month had raised concerns on issues related to the implementation of the T+1 settlement system.


It had said the T+1 settlement system should not be implemented without addressing operational technical challenges.

(Only the headline picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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COVID-19 variant mu detected in 49 states

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The mu coronavirus variant has been detected in 49 states 42 countries, according to estimates, as health officials keep an eye on the strain to see if it becomes dominant. 

The strain, also known as B.1.621, was first identified in Colombia in January was added to the World Health Organization’s (WHO) “variants of interest” list, however 49 U.S. states the District of Columbia have since detected the mu variant, with the exception of Nebraska, according to estimates compiled by Outbreak.info. States with a higher estimated prevalence of the variant include Alaska Hawaii, though nationwide the variant has been detected in less than 1% of samples.

FLORIDA DOCTOR WILL REFUSE TO TREAT UNVACCINATED PATIENTS

Dr. Anthony Fauci, the government’s leading infectious disease expert, on Sunday said the delta variant is over 99% of the cases. The mu variant has mutations that “indicate that it might evade the protection from certain antibodies.”

He said the mu variant was “not an immediate threat.”

California logged the highest number of samples containing the mu variant, with at least 384 cases, Newsweek reported, but the total translates to 0.2% of the state’s sequenced samples. As of Sept. 3, Los Angeles County health officials announced 167 mu variant cases sequenced between June August, with the bulk of mu cases sequenced in July. 

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“The Mu variant is found to have key mutations linked to greater transmissibility the potential to evade antibodies,” a statement from LA County Public Health reads. “More studies are needed to determine whether Mu variant is more contagious, more deadly or more resistant to vaccine treatments than other COVID-19 strains.”

“The identification of variants like mu, the spreading of variants across the globe, highlights the need for L.A. County residents to continue to take measures to protect themselves others,” Dr. Barbara Ferrer, director of LA County Public Health, added in the statement. “This is what makes getting vaccinated layering protections so important. These are actions that break the chain of transmission limits COVID-19 proliferation that allows for the virus to mutate into something that could be more dangerous.”

Fox News’ Edmund DeMarche contributed to this report.

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C’garh CM’s father arrested for ‘derogatory’ remarks against community

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The Raipur Police have arrested Chhattisgarh Chief Minister Bhupesh Baghel’s father NKumar Baghel from Delhi in a case registered against him for allegedly making derogatory remarks against a community, an official said here on Tuesday.


The CM had strongly disapproved of the remarks allegedly made by his 86-year-old father said nobody is above law. “NKumar Baghel was arrested brought from Delhi to Raipur on Tuesday,” Raipur Additional Superintendent of Police Tarkeshwar Patel said.





He was produced in a local court, he said, without divulging more details. The case against NKumar Baghel was lodged on Saturday night at the DD Nagar police station in Raipur on a complaint filed by the ‘Sarv Brahmin Samaj’ against him. He was charged under Indian Penal Code Sections 153-A (promoting enmity between different groups on grounds of religion, race, place of birth, residence, language) 505(1)(b) (with intent to cause, or likely to cause, fear or alarm to public, or to any section of public whereby any person may be induced to commit offence against the state or against public tranquility), police had said. The outfit, in its complaint, alleged that the CM’s father recently made a controversial appeal to people to boycott Brahmins by terming them as “foreigners”, asked people to not let them enter in their villages. The organization also accused NKumar Baghel of asking people to “evict” Brahmins from the country.


The organisation had said a video of the purported comments of the CM’s father was available on social media platforms. According to the police, NKumar Baghel reportedly made the remarks while addressing an event in Uttar Pradesh recently.


After a controversy erupted over the alleged remarks of his father, the chief minister had said he was pained asserted nobody was above law in his government police will take appropriate action in the matter. The remarks made by my father NKumar Baghel against a specific class have come to my attention. The comments have hurt the sentiments of the class as well as (affected) social harmony I am also pained by it, Bhupesh Baghel had said in a statement. Nobody is above law under my government even if he is the chief minister’s 86-year-old father, the Congress CM had said, adding an appropriate legal action will follow.


He said the Chhattisgarh government respects every religion, caste community their sentiments, gives equal importance to everyone, the statement added.

(Only the headline picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Business Standard has always strived hard to provide up-to-date information commentary on developments that are of interest to you have wider political economic implications for the country the world. Your encouragement constant feedback on how to improve our offering have only made our resolve commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed updated with credible news, authoritative views incisive commentary on topical issues of relevance.

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As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better more relevant content. We believe in free, fair credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

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