
Brokers can now set up arms, invest in new business
M
UMBAI: The govt on Monday amended the Securities Contracts (Regulation) Rule, which will now allow brokers to use their own funds to invest in businesses outside their own area.
However, they will not be allowed to use clients' funds to invest in those businesses. They will also not be allowed to borrow funds to invest in other businesses. Brokers said they will now wait for Sebi's rules on the same.
Till now, brokers were not allowed to float subsidiaries. The changed rules will allow that, top officials at broking houses said. "Given the growth in the scale and interconnectedness of the financial sector and the evolution of the nature of business of brokers with time, the DEA (Dept of Economic Affairs) felt it necessary to review the appropriateness of safeguards embedded in the rules so that the intent of the rules is served without constraining activities of the stakeholders," the govt said through a release on Monday.
Broking house officials feel this amendment to SCRR is an important shift in regulatory approach. Till now, stock brokers were not allowed to make investments in any business other than securities and commodity derivatives, said leading broker Motilal Oswal. "This amendment would now allow stock brokers to make investments in any type of business, provided it is not out of client funds or client securities and also it should not create financial liability on the broker.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
수천시간을 투자해서 만든 이미지영어 40분 특강
스티븐영어
지금 시작하기
Undo
"
This change also opens avenues for brokers to make strategic investments. "Stockbrokers have always been allowed to use their own funds for day-to-day operations within the securities and commodities business. This change potentially allows for strategic investments outside these core areas, offering greater capital flexibility," said Pranav Haridasan, MD and CEO, Axis Securities.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Economic Times
11 minutes ago
- Economic Times
Chennai-based Lalithaa Jewellery Mart files DRHP for Rs 1,700 crore IPO to fuel southern expansion
Lalithaa Jewellery Mart, a Chennai-headquartered jewellery retailer offering gold, silver, and diamond jewellery designed for southern Indian markets, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 1,700 crore through an initial public offering (IPO). ADVERTISEMENT The proposed Rs 1,700 crore IPO comprises a fresh issue of up to Rs 1,200 crore and an offer-for-sale (OFS) of Rs 500 crore by promoter M. Kiran Kumar Jain. The company also plans a reservation for eligible employees with a bidding discount and may undertake a pre-IPO placement of up to 20% of the fresh issue size, which would proportionally reduce the fresh issue. Proceeds from the fresh issue will be primarily deployed towards capital expenditure for setting up new stores in India, amounting to Rs 1,014.50 crore, with the balance allocated for general corporate purposes, the company said in its filing. The issue will follow the book-building process, allocating no more than 50% of the net offer to qualified institutional buyers (QIBs), and reserving at least 15% and 35% for non-institutional investors and retail individual investors, respectively. The company proposes to list its shares on the National Stock Exchange of India and BSE Ltd. Founded in 1985, Lalithaa Jewellery Mart opened its first store in Chennai's T. Nagar, a hub for silk and jewellery retail. The company operates 56 stores across southern India's Tier I, II, and III cities, including 22 in Andhra Pradesh, 20 in Tamil Nadu, seven in Karnataka, six in Telangana, and one in Puducherry, spanning a total operational area of 6,09,408 sq. ft. As of December 31, 2024, 47 of these stores each cover more than 5,000 sq. ft. According to a CRISIL report cited in the DRHP, Lalithaa Jewellery Mart recorded the highest operating revenue per store among key organised jewellery players in India between fiscal years 2022 and 2024. It is also ranked the second fastest growing regional jewellery player based on operating revenue growth during the same period, posting a compound annual growth rate (CAGR) of 43.62%. ADVERTISEMENT The company's jewellery schemes, 'Dhana Vandhanam' and 'Free-yo-Flexi,' have attracted repeat customers, with 420,261 active enrolments as of December 31, 2024. Lalithaa Jewellery Mart runs two manufacturing units in Tamil Nadu, one at Thirumudivakkam, Chennai, and another at Maraimalai, Kanchipuram, the latter through its wholly owned subsidiary Asita Manufacturing Private Limited. From December 2024, operations commenced at the Thirumudivakkam facility. The company employs a total of 563 Karigars across both manufacturing units. ADVERTISEMENT The company also operates one of India's largest jewellery stores in Vijayawada, with a carpet area of 1,00,000 sq. ft., alongside large-format stores in Somajiguda (98,210 sq. ft.) and Vishakhapatnam (65,000 sq. ft.), making them among the largest jewellery retail outlets in the country, according to Lalithaa Jewellery Mart reported a 26.07% increase in restated consolidated revenue from Rs 13,316.80 crore in fiscal 2023 to Rs 16,788.05 crore in fiscal 2024, driven by the rise in store count from 47 to 53, higher gold rates, and increased gold sales. For the nine months ended December 31, 2024, the company posted revenue of Rs 12,594.67 crore and profit after tax of Rs 262.33 crore. ADVERTISEMENT The Indian gems and jewellery retail industry was valued at Rs 6.49 trillion in fiscal 2024 and is expected to grow at a CAGR of 13–14% to reach Rs 12–12.2 trillion by fiscal 2029. South India remains the largest jewellery-consuming region, accounting for 38–43% of the country's overall jewellery Rathi Advisors and Equirus Capital are the book-running lead managers for the issue, while MUFG Intime India serves as registrar. ADVERTISEMENT Also read | IPO calendar: 4 new issues, 1 listing lined up in a busy mid-June week (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)


Time of India
17 minutes ago
- Time of India
NATO chief urges 400% increase in alliance's air defence
AP image Nato Secretary General Mark Rutte on Monday was due to urge a "400 percent increase" in the transatlantic alliance's air and missile defence capacities in response to the threat from Russia. "We see in Ukraine how Russia delivers terror from above, so we will strengthen the shield that protects our skies," Rutte was due to say in a speech to the Chatham House think-tank in London, according to comments quoted in a statement. To maintain credible deterrence and defence, he was to say that Nato needs "a 400 percent increase in air and missile defence". His comments come ahead of a Nato summit in the Netherlands this month where US President Donald Trump is pressuring alliance members to announce a major boost in their military budgets. Trump is pushing Nato members to increase their defence spending to five percent of their gross domestic product (GDP), up from the current target of two percent. US Secretary of Defense Pete Hegseth said last week in Brussels that the allies were close to an agreement on the five-percent target, which could be formalised at the summit in The Hague. Nato members have been scrambling to bolster their defence capabilities since Russia launched its war against Ukraine in February 2022. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Hand Chopper| Free Delivery | COD Available Undo Hand Juicer | Manual Jucier | Free Delivery | COD Available Undo PavBhaji Masher | Free Delivery | COD Available Undo Strech Lids | Free Delivery | COD Available Undo "Danger will not disappear even when the war in Ukraine ends," Rutte was to say. "We need a quantum leap in our collective defence... We must have more forces and capabilities to implement our defence plans in full." "Our militaries also need thousands more armoured vehicles and tanks, millions more artillery shells." Rutte will visit London next week, where he is expected to welcome Britain's new defence strategy. Britain announced plans last week to build up to 12 nuclear-powered attack submarines and six munitions factories to rearm the country in response to Russia's invasion of Ukraine.


Time of India
21 minutes ago
- Time of India
NFO Alert: Baroda BNP Paribas Mutual Fund launches healthcare and wellness fund
Baroda BNP Paribas Asset Management has launched its latest new fund offer – Baroda BNP Paribas Health and Wellness Fund , an open-ended equity scheme will focus on companies that are expected to benefit from the rising demand in healthcare and wellness—an emerging megatrend both in India and globally. The new fund offer or NFO of the scheme is open for subscription and will close on June 23. Also Read | 3 equity mutual fund categories lose up to 7% in 2025. Expert shares what went wrong Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo The fund aims to capitalise on the multi-decade structural growth story in healthcare and wellness space. While India's existing per capita healthcare expenditure is quite low compared to developed markets, it is expected to grow exponentially on the back of rising affordability, increasing awareness, longer life expectancy, and higher incidence of chronic diseases, according to a press release. "Over the last century or so, average life expectancy in India has more than tripled. Throughout the life stages from a toddler to a septuagenarian, there is a constant need and expenditure towards one's well being. Given the low starting base of per capita expenditure on healthcare, we see this sector as a multi decadal opportunity that seeks promising prospects for investors,' said Suresh Soni, CEO, Baroda BNP Paribas AMC. Live Events India is facing an alarming surge in chronic diseases. The incidence of cardiac ailments, diabetes, and cancer could grow by 34–41% this decade. This unfortunate trend reinforces the need for robust preventive and curative healthcare systems, creating fertile ground for investment. 'India offers a $200 billion market cap opportunity with over 100 investible companies across pharma, diagnostics, Medtech, hospitals, insurance, and healthcare research,' said Sanjay Chawla, CIO – Equity, Baroda BNP Paribas AMC. Also Read | Quant Small Cap Fund increases stake in Jio Financial Services, NCC and reduces in Aadhar Housing Finance The BSE Healthcare Index has consistently outperformed the BSE 500 TRI over the last 1, 3, 7, and 15 years, driven by stronger earnings growth. These gains span companies across all market caps—large, mid, and small, the release said. This thematic fund is suited for investors who have an investment horizon of three years or more. The fund offers investors the opportunity to participate in India's growing health consciousness and invest in an evolving ecosystem of wellness-focused businesses. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)