Sebi to issue final norms for REIT, infrastructure trusts soon, says U K Sinha

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CHENNAI: Capital markets regulator Sebi will issue final guidelines on newly proposed Real Estate Investment Trusts and Infrastructure Investment Trusts, as also revised norms for ESOPs by listed companies in coming weeks, Chairman U K Sinha said today.

Sebi has already announced draft regulations for REITs and InVITs, for which the government also proposed tax benefits during the union budget earlier this month. Besides, Sebi board recently approved certain changes in ESOP norms.

"You might have seen that in the current budget an announcement has been made about Real Estate Investment Trust. I am hopeful that sometime next month, SEBI will be coming out with (final) guidelines. My feeling is that these guidelines are going to help the growth of real estate industry", Sinha said in his address at the 178th AGM of Madras Chamber of Commerce here.

Sinha also said there is scope for aligning Sebi's corporate governance guidelines with that of the new companies law.

The Companies Act, 2013, many of whose provisions came into force in April this year, has strict norms to ensure good corporate governance practices in the country.

"There are some areas where there is scope of aligning the guidelines on corporate governance and the Companies Act (2013)," Sinha said, while citing the example of independent directors' tenure, among others.

Apart from the Real Estate Investment Trusts (REITs), Sinha said Sebi would also issue guidelines for the Infrastructure Investment Trusts (InVITs).

"We are also going to come out with guidelines for infrastructure investment trusts. My feeling is that sometime next month, SEBI is going to announce that", he said.

Sebi in 2012 had barred employee welfare schemes and trusts of listed entities from purchasing their own shares from the secondary market.

To a query on the guidelines for ESOP (Employee Stock Option), he said, "But, we are going to release that ban to an extent that they can buy if they want to give ESOPs to their employees".

"Our earlier impression was this (share buying by welfare schemes and trusts) being used to manipulate and stabilise the share price and not actually to give it back to the employees. Now, we are going to allow them to buy, not the sale part", he said.

"ESOP guidelines may be out in next 15 days. It is in fairly advanced stage", he later told reporters.

Commenting about the proposal to implement self-regulatory organisation (SRO), Sinha said, "The SRO matter has gone in to a legal battle and the matter is right now in the Securities Appellate Tribunal".

"Some people have challenged the process of selection. Only if there is final decision, can we discuss about it," he said.

HUL flows before the results of the fourth quarter; PAT seen up 7.5%; plu ad spend to hit growth

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HUL sinks ahead of Q4 results; PAT seen up 7.5%; higher ad spend to hit growth - Economic TimesYou are here: Home > Collections >Consumer DemandHUL sinks ahead of Q4 results; PAT seen up 7.5%; higher ad spend to hit growthET Now Apr 28, 2014, 12.23 PM ISTTags: results|paid up policy|net worth|Insurability|Inflation|HUL|Hindustan UniLever|fmcg|earnings|Consumers|categories(The stock came under selling...)

NEW DELHI: Hindustan Unilever Limited (HUL) is scheduled to report its results for the quarter ended March 31 on Monday.

India's largest Fast Moving Consumer Goods Company is expected to report 7.5 per cent YoY growth in its standalone net profit number to Rs 840 crores as compared to Rs 781 crores reported in the corresponding quarter last year, according to year and Now Poll.

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Ahead of the results, the stock cam under some bit of selling pressure and was trading nearly 1 per cent lower at Rs 574 at 12:00 p.m. It hit a low of Rs 565.10 and a high of Rs 588 in trade today.

Net sales for the FMCG major are likely to grow by 9.6 per cent to Rs 6980 crores for the quarter ended March 2014, from Rs 6367 crores reported in the year ago period.

EBITDA is seen at Rs 1080 crore, gold has 11 per cent rise in the fourth quarter of the financial year 2014, compared to SR 971 crore reported in the year ago period. EBITDA margins are seen flat at 15.47 per cent as compared to 15.25 per cent reported in the year ago period.

According to the and Now estimates, consumer demand are likely to get worsen QoQ across categories and higher Ad expenses are likely to curtail bottom line growth.

Analysts see Volume growth between 3-4 per cent. Volume growth in 4QFy13 was 6 per cent while in Q3Fy14 it was 4 per cent.

Soaps & Detergents

Co took price hikes in Soaps to pass on palm oil inflation Soaps & Detergents see muted growth Co unwound promotional offers and increased prices Soaps & detergents could grow at 9-10% and PP at 9%

Personal Products

Segment could register growth of 8-9% F & L relaunch is witnessing encouraging response

Beverages

Beverages could post a better quarter QoQ Price growth in Beverages to come down

Watch out for

-Comments on volume growth - Consumer demand environment

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Why top 5 Nifty losers of FY14 are good buys; high-beta stocks a bet

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AppId is over the quota

On the 50-share Nifty, there were more gainers than losers in the last fiscal year, but stocks which did slip in the red should be able to make up for losses now, say analysts.

Top five losers in Nifty for the year FY14 were DLF (down 25 per cent), JSPL (16 per cent), IDFC (15 per cent), NTPC (14.7 per cent) and Tata Power (9 per cent).

India is one of the top performers right now among the emerging markets as foreign institutional investors are hopeful of economic recovery in FY15 on improved macros, and they are betting big on beaten-down cyclicals, banks and high-beta stocks.

FII flows picked up sharply in March 14 -aggregating $3.6 billion - the highest monthly inflow in 10 months, Deutsche Bank said in a report. FII flows into debt also remained strong at US$1.1 billion, albeit lower than January-February 2014, and could ease further with RBI banning FII investment into sub-one year maturity government debt.

"The markets are looking up, the FII flows have been very strong. The broad expectation is that the economy will bottom out in FY15 and start picking up. The corporate earnings growth momentum should also pick up after being in a declining mode for the last four or five years," said Prabodh Agrawal, Head of Research, IIFL Institutional Equities.

"So, definitely fundamentals are expected to improve and the fact that the markets have been trading sideways for a number of years, valuations are looking attractive," he added.

Agrawal is of the view that many sectors and stocks have been beaten down significantly and valuations are very attractive and therefore there are enough reasons why the market should start looking up and go up further.

Indian market was among the top performing markets globally last month alone with Sensex rising by 6 per cent in INR and 9.4 per cent in dollar terms - second only to Turkey - as the declining likelihood of a fractured mandate, improving macro and a status-quo in RBI policy helped investor sentiments.

Deutsche Bank is of the view that and we could receive a further boost if the election mandate is decisive. Unsurprisingly, among key EMs, India has been the biggest recipient of YTD FII flows ($4 billion), followed by Taiwan ($3.6 billion) and Indonesia ($2.4 billion).

Deutsche Bank maintains its constructive outlook on Indian market and has reiterated December 2014 Sensex target of 24,000.

Last month, global investment bank, Nomura highlighted the fact that investors should remain neutral on the market closer to elections to hedge against potential post-election volatility. They have pegged their December-end 2014F Sensex target at 24,700.