Specialist in Indian Banking and Economic Research

Hemindra Hazari

Is a Securities & Exchange Board of India (SEBI) registered research analyst with over 25 years experience in the Indian capital markets with a specialization in banking and economy research and has managerial experience of establishing profitable equities business, leading and mentoring analysts.  He has worked with prominent foreign and domestic capital market firms such as UBS, Societe Generale, HSBC, ASK Raymond James  and Karvy Stock  Broking and is a regular guest on business media channels and is respected for his non-consensus view on stocks and the market.

The Problem with Transparency Is That You Can See Things

Select Private Banks' Stellar Performance – in Diverging from the Facts

Resolution of 12 Large Corporate NPA Accounts May Take A Long Time

Thematic (Sector/Industry)

India Financials / Thematic (Sector/Industry)

<p>In a welcome development for transparency, the Securities and Exchange Board of India (SEBI), the capital markets regulator issued a <a href="http://www.sebi.gov.in/legal/circulars/aug-2017/disclosures-by-listed-entities-of-defaults-on-payment-of-interest-repayment-of-principal-amount-on-loans-from-banks-financial-institutions-debt-securities-etc_35538.html" target="_blank">notification</a> on August 4, 2017 directing listed companies to inform the stock exchanges within one working day of a default on their debt securities and borrowings from banks and financial institutions. Henceforth such information will not be asymmetric with only select and concerned institutions being aware, and the pressure from the market will impact the defaulter and the <a href="http://www.btvi.in/videos/watch/23562/sebi-tightens-default-disclosure-" target="_blank">concerned lender</a> and holders of such securities instantaneously. This should also inhibit the usual suspects of financial intermediaries from ‘evergreening’ loans to keep them classified as standard. While this may improve borrower discipline, there will be tremendous pressure on banks, financial institutions and credit rating agencies, and on their credibility.</p>

In a welcome development for transparency, the Securities and Exchange Board of India (SEBI), the capital markets regulator issued a notification on August 4, 2017 directing listed companies to inform the stock exchanges within one working day of a default on their debt securities and borrowings from banks and financial institutions. Henceforth such information will not be asymmetric with only select and concerned institutions being aware, and the pressure from the market will impact the defaulter and the concerned lender and holders of such securities instantaneously. This should also inhibit the usual suspects of financial intermediaries from ‘evergreening’ loans to keep them classified as standard. While this may improve borrower discipline, there will be tremendous pressure on banks, financial institutions and credit rating agencies, and on their credibility.

A Dose of Transparency, Better Late than Never