DVR shares have been around in India for over 10 years now with companies like Tata Motors, Jain Irrigation, NRE Coke and Future Group having issued such shares. Differential Voting Rights (DVR) shares offer a means to raise capital without diluting control. That is something that has come to the fore after the Mindtree case where founding promoters with just 10% stake in the company had to cede control to L&T despite their best efforts. DVR shares could have saved the day for them in such circumstances. On 16^th August, the government issued new norms for DVR shares, which can help this instrument become more meaningful.

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Over the last few days, there has been a lot of debate in the public domain about the US yield curve taking on an inverted shape. This is not a normal occurrence and is being interpreted in the market as a signal of an impending slowdown in the global economy. Is it a cause for concern and what does an inverted yield curve really mean?

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Over the weekend there has been a lot of optimism and enthusiasm built round the meeting between the PM and the finance minister. With ANZ Bank now reducing India’s full year GDP growth target to just 6.2%, the problem is almost real. Here is what is needed. Continue reading →

In the midst of a tumultuous week when most of the action was focused on Kashmir, the monetary policy and the global macro risks; SEBI tightened the screws on mutual funds a little further. In its last board meeting, SEBI had come out with a series of norms for MFs to become more transparent in their practices. This week, SEBI has gone a step further and rightly so.

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