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Updated on: Thursday, September 02, 2021, 06:35 PM IST

RBI encourages retail market participation; SEBI’s prohibition on digital gold: Three things Teji Mandi investors should know on September 2, 2021

Teji Mandi | File Image

Teji Mandi | File Image

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RBI on Retail Investors

The Reserve Bank of India Governor Shaktikanta Das has hinted at deepening the retail market. The objective is to pump liquidity amidst the devastating pandemic.

Speaking at the 21st annual conference organised by Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Primary Dealers’ Association of India (PDAI), Das hinted at conducting fine-tuning operations. The RBI is now focused on balancing liquid conditions in the market. The RBI will also work with primary dealers to promote STRIPS (Separate Trading of Registered Interest and Principal of Securities), according to Das. This system will convert government securities into zero-coupon bonds.

The RBI’s motive is to draw retail investors’ attention towards niche products. Sovereign gold bonds and zero-coupon bonds will engage the investors with long-term plans.

SEBI Prohibits Digital Gold for Exchanges

The Securities and Exchange Board of India (SEBI) has prohibited distributing digital gold for the members of exchanges (BSE and NSE).

Digital gold has gained immense popularity among investors. However, as per the Securities Contract (Regulations) Act, 1956, it does not fall under the purview of ‘securities’. Therefore, any business i.e. broker or agent involved in financial securities transactions, will not deal with digital gold. Broking entities will have to immediately stop it.

SEBI’s regulations have hit investors’ interest. However, online payments services like GooglePay and PhonePe can offer digital gold on their platforms. The rule stands strictly for brokerages, financial entities and agents that deal with securities.

Tata Motors Faces Semiconductor Shortage

Due to the lack of semiconductors, Tata Motors would reduce output in the next few months.

The recent lockdown in East Asia has affected the supply of semiconductors. This will moderate production, said the company’s official statement. Recently Maruti Suzuki also said that September volumes could be down. The non-availability of semiconductors has affected the entire automotive sector. Most companies will have to shut production.

This will impact the inventory of Tata Motors and other auto companies. The festive season this year doesn’t seem to be as cheery for automakers.

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Published on: Thursday, September 02, 2021, 06:35 PM IST
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