Street signs: To friends at a discount, NSE rolls out shorter SLB contracts

A promoter’s pre-initial public offering (IPO) share transfers have caught the attention of market watchers, with several users wishing for a network of “close friends” to get shares at a discount. The red herring prospectus of a firm disclosed that one of the promoters made transfers to certain of his ‘close friends, family friends and close business associates’ nearly two years ago. While acknowledging the risks around such transfers, the company noted in its RHP: “These transfers were undertaken at prices which may be lower than the offer price. Although these transfers were completed in accordance with applicable law, there can be no assurance that these transactions will not attract adverse perception among investors post listing of the equity shares.” 

NSE rolls out shorter SLB contracts 

NSE Clearing is introducing shorter-tenure contracts under its securities lending and borrowing (SLB) scheme from Monday (August 17), giving traders an option to settle the reverse leg of a transaction within three days. The new “R3” series will be available daily, with trades executed on the transaction day settled on T+1 and the corresponding reverse leg on T+3, excluding settlement holidays. The facility will initially be available only for stocks eligible for trading in the equity derivatives segment. Unlike existing SLB contracts, the shorter-tenure contracts cannot be foreclosed for AGMs or EGMs, while repayment, recall and rollover facilities will not apply. 

All user-facing handles to have ‘@valid’ UPI ID 

Stockbrokers and other market intermediaries have been directed to ensure that every bank account through which investors can directly transfer money is linked to a validated “@valid” UPI ID. In a circular last week, exchanges asked them to complete the process by September 6. The requirement covers trading and margin collection accounts, among others, and even alternate accounts occasionally shared with investors. The direction follows market regulator’s efforts against fraudsters, through measures like Sebi check and verification of the UPI handles through which any payment is made to any regulated entity.