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Markets will remain closed on 20th September, 2018 on account of Muharram.

Indian 'TBTF' entities beware...
Wed, 9 Mar Pre-Open

The last time large entities showed signs of bankruptcy, we Indians relished the fact that we were far from the mess. A prudent regulator in the form of the RBI had helped save the financial institutions here from risking their existence.

But as risks envelope a larger scope of operations in developing economies, the need for better regulation cannot be sidelined. Acknowledging this the Indian policymakers have already proposed some steps to avert systemic risks. An entity to oversee stability of large entities is on the cards. Banks and financial institutions most certainly will be under the purview of this supervision. But at the same time, non financial companies having a large market share will also not be spared of the regulatory scan.

Not just the RBI or the SEBI but several other regulators will be involved in the role of risk management. Their oversight is expected to help large entities in conducting their businesses on a global scale. But without exposing themselves to undue risks that hurt the interests of their stakeholders.

Given the kind of weightage that large entities have on the overall financial system, this proposal seems justified. Reckon this. The 30 stocks comprising the BSE-Sensex account for nearly one fifth of the market capitalization of the BSE that has 4,700 odd listed entities. Some of them have in the past, however, eroded investor wealth by exposing themselves to undue risks like derivatives. Others have also been accused of indulging in practices that hurts the interest of minority shareholders.

Banks and financial institutions have already tasted the RBI's strict oversight in terms of providing for possible risk on their books. But it is time that every deemed 'Too Big To Fail' entity wakes up to this realization. Whether it is taking excessive debt or betting on derivatives, their actions will be taken to task.

If the plan is executed well, the old proverb "If you owe the bank a few thousands, then you have a problem. If you owe the bank several millions, then the bank has a problem" would probably not play out for entities here.

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Stock Market Updates

DCM SHRIRAM Surges by 10%; BSE 500 Index Down 0.5% (Today's Market)

Sep 19, 2018 03:09 PM

DCM SHRIRAM share price has surged by 10% and its current market price is Rs 470. The BSE 500 is down by 0.5%. The top gainers in the BSE 500 Index is DCM SHRIRAM (up 10.3%). The top losers are BAJAJ HOLDINGS & INVSTMENT and RAJESH EXPORTS .

JET AIRWAYS Plunges by 5%; BSE 500 Index Down 0.7% (Today's Market)

Sep 19, 2018 02:45 PM

JET AIRWAYS share price has plunged by 5% and its current market price is Rs 253. The BSE 500 is down by 0.7%. The top gainers in the BSE 500 Index are UNION BANK (up 4.5%) and MONSANTO INDIA (up 3.7%). The top losers are JET AIRWAYS (down 5.3%) and PFIZER (down 6.8%).

UCO BANK Plunges by 7%; BSE BANKEX Index Down 0.4% (Today's Market)

Sep 19, 2018 02:39 PM

UCO BANK share price has plunged by 7% and its current market price is Rs 21. The BSE BANKEX is down by 0.4%. The top gainers in the BSE BANKEX Index are BANK OF BARODA (up 2.6%) and KOTAK MAH. BANK (up 0.7%). The top losers is UCO BANK (down 6.8%).

EDELWEISS FINANCIAL Plunges by 5%; BSE 500 Index Down 0.7% (Today's Market)

Sep 19, 2018 02:39 PM

EDELWEISS FINANCIAL share price has plunged by 5% and its current market price is Rs 261. The BSE 500 is down by 0.7%. The top gainers in the BSE 500 Index are UNION BANK (up 4.5%) and G.E.SHIPPING (up 4.1%). The top losers are EDELWEISS FINANCIAL (down 5.0%) and PFIZER (down 7.4%).

RELIANCE POWER Plunges by 6%; BSE POWER Index Down 0.3% (Today's Market)

Sep 19, 2018 02:37 PM

RELIANCE POWER share price has plunged by 6% and its current market price is Rs 34. The BSE POWER is down by 0.3%. The top gainers in the BSE POWER Index are BHEL (up 1.0%) and POWER GRID (up 0.3%). The top losers are RELIANCE POWER (down 6.0%) and RELIANCE INFRA (down 9.4%).

Sensex Remains Rangebound; HDFC AMC & Reliance Nippon Tumble Over 8% (Today's Market)

Sep 19, 2018 12:30 pm

The Indian share markets trade flat. The BSE Sensex is trading up by 66 points, while the NSE Nifty is trading up by 26 points.

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