Top 10 things to know before the market opens

Stock exchanges and other market infrastructure institutions as well as their top officials are liable to face penalties for lapses in handling and recitfying technical glitches, with Sebi putting in a place a stricter compliance system driven by "financial disincentives".

The markets watchdog has come out with a detailed Standard Operating Procedure (SOP) for Market Infrastructure Institutions (MIIs) less than five months after a technical glitch halted trading at the country's largest bourse NSE for nearly four hours.

There will be a "financial disincentives" structure for MIIs -- stock exchanges, clearing corporation and depositories -- for any business disruption beyond pre-defined time, according to a circular issued on Monday.

Under the structure, MIIs will have to pay in the range of Rs 1 lakh each working day to Rs 2 crore for flouting SOP while Managing Director (MD) and Chief Technology Officer (CTO) of the MIIs concerned will have to cough up 10 per cent of their respective annual pay. The penalties will be subject to various timelines specified by Sebi with respect to declaration as well as rectification of technical glitches at the MIIs.

Remitting money abroad? Banks and dealers will accept physical forms 15CA/CB till July 15

Glitches experienced by users on the new income tax e-filing portal have prompted the Central Board of Direct Taxes (CBDT) to allow authorised foreign exchange dealers to accept manual forms 15CA/CB until July 15. Earlier, it was allowed till June 30, 2021.

Since uploading is difficult at present due to I-T portal glitches, particularly digital signature uploads for authentication, manual submission has been permitted till July 15, 2021. “A facility will be provided on the new e-filing portal to upload these forms at a later date for the purpose of generation of the document identification number,” the CBDT release said.

G-SAP 2.0: RBI announces Rs 20,000 crore bond purchase on July 8

The Reserve Bank of India (RBI) on July 5 announced the open market purchase of government bonds worth Rs 20,000 crore under the G-sec Acquisition Programme (G-SAP 2.0) on July 8. This is the first round of purchases under G-SAP 2.0.

The RBI said it reserves the right to decide on the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher/lower than the aggregate amount due to rounding off and accept or reject any or all the bids either wholly or partially without assigning any reasons.

The next purchase under G-SAP 2.0 will be conducted on July 22, 2021 for Rs20,000 crore. The Government securities to be purchased in the auction would be communicated in due course, the RBI said.

SEBI formally approves Zomato's IPO application

The Securities and Exchange Board of India (SEBI) has formally approved food delivery giant Zomato's application for an initial public offering (IPO), paving the way for one of the most keenly awaited share sales in recent history. Moneycontrol was the first to report about SEBI clearing the application on July 2, and that the official approval may come by July 5.

Sources had earlier told Moneycontrol that Zomato is eyeing a listing valuation of $8.7 billion based on the huge demand from global tech specialist funds and emerging funds. The restaurant aggregator, backed by China’s Ant Group, has also increased its primary fund raise through the IPO by 20 percent to $1.2 billion and reduced the secondary portion, or OFS, by 50 percent to $50 million.

According to the Draft Red Herring Prospectus (DRHP) filed by Zomato, the company will offer equity shares aggregating up to Rs 7,875 crore (nearly $1.1 billion). Of this, Rs 7,500 crore will be fresh issue, while Rs 375 crore will be an offer for sale for its existing investor InfoEdge.

OPEC+ abandons oil policy meeting after Saudi-UAE clash

OPEC+ ministers called off oil output talks on Monday after clashing last week when the United Arab Emirates rejected a proposed eight-month extension to output curbs, meaning no deal to boost production has been agreed.

Saudi energy minister Prince Abdulaziz bin Salman had called for “compromise and rationality” to secure a deal after two days of failed discussions last week.

But four OPEC+ sources said there had been no progress. OPEC’s Secretary General Mohammad Barkindo said in a statement on Monday the meeting had been cancelled, without a date for the next one being agreed.

Centre allows domestic airlines to operate at 65% passenger capacity

The Civil Aviation Ministry has allowed domestic airlines to operate at 65 percent of their original pre-COVID-19-level capacity. The Centre on July 5 increased the seating capacity from the current 50 percent to 65 percent stating that the cap on domestic aviation capacity at 65 percent will be operational until July 31 or till further orders.

Sebi cuts time period for filing application to obtain NOC for release of 1% of issue amount

Sebi on Monday reduced the time period to two months, from four months at present, for companies to submit an application with the markets regulator for obtaining a 'No Objection Certificate' for release of 1 percent of issue amount.

Under rules, the issuer company deposits 1 per cent of the issue amount of the securities offered to the public and/or to the holders of the existing securities of the company, as the case may be, with the designated stock exchange. This amount is released to issuer companies after obtaining a No Objection Certificate (NOC) from Sebi.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 338.43 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 645.59 crore in the Indian equity market on July 5, as per provisional data available on the NSE.

With inputs from Reuters & other agencies