Indian companies are entering a new era of rumour-checking this week, with the top 100 listed companies now required to confirm, deny or clarify information reported in the media.
 "Signs of the city: Market fate, IFSC's grand welcome, corporate truth serum")
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Khushboo TiwariSundar Sethuraman
Market Fate: A Short Squeeze is Coming
Markets will be jubilant as most opinion polls suggest the Bharatiya Janata Party-led National Democratic Alliance government will win over 350 seats. Analysts expect short selling coverage by foreign portfolio investors (FPIs) to further lift the index on the back of positive exit polls and US consumer spending data. “FPIs are at historically high index short interest levels of around $2.8 billion, which in a way acts as a hedge against their individual stock futures longs of $4.7 billion. With exit polls suggesting a favorable showing for the ruling party, we are likely to see some index short selling coverage by FPIs on Monday and Tuesday,” said a note from Nuvama Alternative and Quantitative Research.
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A grand welcome for the IFSC: financial strength goes beyond borders
With the government allowing direct listing in International Financial Services Centres (IFSCs), the regulator, International Financial Services Centres Authority (IFSCA), is looking to attract companies from neighbouring countries. Sources said IFSCA is in talks with Sri Lanka, Nepal, Bangladesh and Bhutan to facilitate listing of blue chip companies in Gujarat International Finance Tech City (GIFT City). Besides building a global investor base, IFSCA is also working on creating profitable investable companies. Sources said the proposed regulations for direct listing will be put up for public hearing within the quarter and the first listings may happen next year. Indian retail investors will not be able to invest in companies listed on IFSCs and the route will be open only to institutional investors and foreign funds.
Corporate Truth Medicine: Dispelling Myths and Setting Standards
Indian companies have entered a new era of rumour verification this week. The top 100 listed companies are now required to confirm, deny or clarify any information reported in the media. But there are many conditions for this mechanism to be triggered. The stage of discussions for a deal, triggers of price movement, news reporting platform etc are some of the key considerations. For instance, companies will be required to comment on a ‘rumour’ only if it leads to significant price movement (specified by the exchange) or if the report provides specific details of the deal. All these conditions have been brought in after consultation with the Industry Standards Forum, comprising representatives of three industry associations:
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