Good morning. Regulators rewrote a lot of rules yesterday, and investors did not cheer all of them.
In today's newsletter: SEBI's big rulebook reset, an insurance stock rout, and what Trump and Xi agreed on.
Closing levels · Sensex and Nifty: 23 Sep; rupee and Brent: 24 Sep
Sensex 74,828.25 ▼ 0.04% |
Nifty 50 23,446.80 ▲ 0.14% |
USD/INR 95.74 ▲ 0.05% · rupee weaker |
Brent Crude $106.18 ▲ 3.01% |
Brent jumped 3% to above $106 as the Iran standoff dragged on, and Thursday's session, not yet in these index numbers, saw a broad slide led by financial and insurance stocks.
SEBI opens commodity futures to foreign investors and overhauls PMS rules
The SEBI board on Thursday widened foreign portfolio investor access to non-agricultural commodity derivatives, letting them trade physically settled contracts subject to safeguards. The aim is more liquidity in India's commodity market.
Portfolio management services, managed-investment accounts for wealthier investors, got a new PRIM route to invest client money in direct mutual fund plans, ETFs and index funds, with a ₹25 lakh minimum.
SEBI also redefined accredited investors with new asset tests and approved a common advertising code that allows celebrity endorsements for brands but restricts ads for specific products.
Enforcement got lighter too: a fast-track settlement route now skips the High Powered Committee when the settlement amount is below ₹10 lakh.
If you use a PMS, your manager can now hold low-cost direct mutual fund plans for you instead of only picking stocks. And when a celebrity fronts a broker or fund house ad, expect a brand message, not a pitch for a particular product.
Under the new test, individuals with ₹5 crore of securities-market assets can qualify as accredited investors, which could expand the pool to around 4 lakh people from an existing AIF investor base of about 1 lakh.
Policybazaar parent loses 36% as IRDAI proposes caps on insurance commissions
Shares of PB Fintech, which runs Policybazaar, plunged 36% on Thursday after the insurance regulator proposed caps on sales commissions. HDFC Mutual Fund still bought shares worth about ₹321 crore.
The proposal aims to curb mis-selling and lower costs for policyholders, but industry executives warned it could disrupt distribution networks, squeeze lower-ticket products and narrow consumer choice. Financial stocks led the wider market lower.
Zerodha CEO Nithin Kamath said regulatory risk is the biggest threat to financial businesses, since rules like these can reset the economics of fintech models overnight.
Trump and Xi meet at the White House with AI and trade on the table
At the White House, Xi Jinping laid out terms to avoid a military collision with the US, warning of the "Thucydides trap" amid rivalry over AI, trade and Taiwan.
China confirmed its first AI talks with the US and hinted at extending the trade truce.
Its commerce ministry said negotiators reached consensus on several trade issues. Xi also invited 1,00,000 young Americans to study in China.
Breaking.exe
Rogue AI agent. OpenAI said one of its agents broke into an Australian government website while gathering health data, without being told to do so. |
Meta's new gadgets. At Meta Connect, Mark Zuckerberg unveiled $1,299 VR Glasses and a Muse Charm pendant as part of Meta's push into AI agents. |
AI build-out snag. Oracle sent a force majeure notice on its New Mexico Stargate data centre, letting it delay payments if the site misses its 2028 target to come online. |
PhonePe goes rural. PhonePe plans to hire more than 20,000 frontline sales staff and deploy over 50 lakh payment devices over the next 12 months. |
Finance 101
UPI fee, not on you. The Centre will ask the banks' body to make sure consumers don't pay the new merchant fee on UPI payments above ₹2,000, which starts on October 15. |
Cheaper cooking oil. Ahead of the festive season, the Centre cut import duty on crude edible oils, expecting lower landed costs to pass down to shop shelves. |
Amazon bets on 10-minute delivery. Amazon plans to invest ₹25,000 crore in quick commerce by 2030, though its market share is just 6.2%. |
Adani in Bengal. The Adani Group promised ₹1 lakh crore of investment in West Bengal by 2035, including a move into Kolkata's power distribution. |
Pangaea Revisited
Iran widens threat. Iran threatened to expand the war to the Indian Ocean if the US attacks again, while demanding sanctions relief and the release of its frozen assets. |
Walkout at the UN. Dozens of delegates walked out before Netanyahu's UN speech, in which he defended Israel's military action and called those who left "moral cowards". |
Ethiopia at war again. Ethiopia's army said it killed 272 Tigrayan fighters in Amhara, and the TPLF says it is in a full-blown war with the government. |
Strikes next door. The Taliban said Pakistani air strikes killed four civilians in Afghanistan; Pakistan says it hit 10 military targets. |
Also, Also, Also
POCSO safeguards. The Supreme Court ordered police and courts to vet POCSO complaints in matrimonial disputes and seek a child psychiatrist's view before arrest when evidence is not clear. |
Track medals. India's 4x400m mixed relay team won silver and Seema took bronze in the 10,000m at her first Asian Games. |
Mahadev arrest. The CBI arrested key accused Abhishek Kumar in the Mahadev betting app case at Hyderabad airport after he flew in from Dubai. |
Pune gets the worlds. Pune was awarded the 2032 Road Cycling World Championships. |