SEBI on T+1 Settlement Cycle
SEBI has introduced a T+1 (trading day plus 1 day) settlement cycle for stocks on an optional basis. This means that settlements must be completed within one day of the transaction's completion.
Various stakeholders had requested to reduce the settlement cycle. Therefore, SEBI decided to provide flexibility to the stock exchanges. They can either offer T+1 or T+2 settlement cycles. After giving one-month advance notice to SEBI, the stock exchange can choose to offer either settlement cycle. This change can be done on all scrips, including the public at large.
This new rule will come into force from January 1, 2022. It is expected to further liquidate the stock market in India.
Automobile Registrations Rise in August
Automobile registrations across the country rose 14% in August as compared to last year.
According to the Federation of Automobile Dealers Association (FADA), commercial vehicle registrations went up by 98%. Even though the registrations have gone up, FADA President Vinkesh Gulati said that the auto dealers are still facing huge business losses. He further said that the demand was a challenge last year, but this year it's the supply. The auto sector is currently reeling due to the shortage of semiconductors.
August saw a good demand trajectory. The condition of the auto sector continues to remain the same. Until the semiconductors are back in supply, the sector would continue to be under pressure despite high consumer demand.
CAIT Criticizes Gujarat
The Confederation of All India Traders (CAIT) criticized the Gujarat government for signing a pact with Amazon.
Amazon has signed an agreement with the Industries and Mines Department of Gujarat to help drive e-commerce exports from the state. As a part of the agreement, Amazon will train onboard MSMEs on how to sell unique Indian products to millions of global customers.
This pact came at a time when the centre’s statutory bodies are conducting investigations on Amazon. The e-commerce giant has been accused of anti-competitive prices and violation of e-commerce rules.
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