Morning Alert..
*Sebi bans fresh inflows into AIF schemes making priority distribution*
The Securities and Exchanges Board of India (Sebi) has asked Alternate Investment Funds (AIFs) to not accept any fresh investments in schemes that have adopted a priority distribution model, which benefits one class of investors at the cost of others. The regulator has also prohibited such schemes from investing in a new company. According to Sebi, certain schemes of AIFs have adopted a distribution waterfall that allows disproportional sharing of losses. "It has been brought to Sebi’s attention that certain schemes of AIFs have adopted a distribution waterfall in such a way, that one class of investors (other than sponsor/manager) share loss more than pro rata to their holding in the AIF vis-à-vis other classes of investors/unitholders, since the latter has priority in distribution over the former (‘priority distribution model’)," the regulator said in a circular on Wednesday.
*Pre-owned segment likely to narrow value gap with new cars by FY27: Study*
India’s pre-owned car market is expected to narrow the gap in value terms with new cars over the next five years. This is on account of a changing mix increasingly skewed towards utility vehicles (UVs) that command better value, reveals a latest study by OLX Autos and CRISIL Research. The value of the pre-owned car market is likely to touch Rs 4.3-4.5 trillion by 2026-27 (FY27), while that of new cars is expected to be worth Rs 6.6-6.8 trillion in the same period. The gap was more pronounced at the end of 2021-22 (FY22). It was Rs 1.8 trillion for used cars and Rs 3.3 trillion for new ones, observes the study. Over the next five years, while the compound annual growth rate in used cars in terms of unit sales is likely to be 15 per cent, it is estimated to be 20 per cent in value terms, OLX Group Chief Executive Officer Amit Kumar told Business Standard.
*FDI equity inflows dip 14% during April-September to $26.9 billion: DPIIT*
Foreign Direct Investment (FDI) equity inflows into India contracted by 14 per cent to USD 26.9 billion during the April-September this fiscal, according to the data of the Department for Promotion of Industry and Internal Trade (DPIIT). The inflows had stood at USD 31.15 billion during the corresponding period of the previous year. The total FDI inflows (which includes equity inflows, re-invested earnings and other capital) too declined to USD 39 billion during the first six months of the current fiscal year as against USD 42.86 billion in the year-ago period. During the first half of this fiscal, Singapore emerged as the top investor with USD 10 billion FDI. It was followed by Mauritius (USD 3.32 billion), UAE (USD 2.95 billion), USA (USD 2.6 billion), the Netherlands (USD 1.76 billion), and Japan (USD 1.18 billion), the data showed.
*Commodity play*
Gold – Rs 52150/10gm, Silver – Rs 61247/kg, Brcrude – Rs 6465/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 672/kg.
*Corporate News*
Gautam Adani weighs $5 billion fundraise as banks urge deleveraging.
ACC promoter entity Ambuja Cements frees NDU on shares of company.
HDFC twins may merge by April next year, says Chairman Deepak Parekh.
SGX Nifty indicates positive start to Indian markets trading at 18340 levels up by 0.47% or 86 points. Dow Jones also ended in green up by 0.28% at end.
Sector in focus – Banks, IT, Infrastructure & Automobiles.
