Commodity trading has always been influenced by global supply-demand dynamics, geopolitical events, and currency movements. In 2025, Artificial Intelligence (AI) is emerging as a game-changer in the Indian commodity markets—be it gold, silver, crude oil, or agri-commodities.
From forecasting prices to executing trades in milliseconds, AI-driven systems are helping both retail and institutional traders make smarter, faster, and more informed decisions.
✅ Faster & more accurate price forecasts
✅ Data-driven risk management strategies
✅ Removal of emotional trading biases
✅ Ability to process global data at scale
✅ Democratization of advanced tools for retail traders
⚠️ Overreliance on models can lead to risks in black swan events
⚠️ High infrastructure costs for HFT setups
⚠️ SEBI regulations require compliance in algo-trading
These insights help both professional traders and beginners position themselves strategically.
While global hedge funds use expensive AI tools, Swastika Investmart empowers Indian investors with:
✅ Start AI-Driven Commodity Trading with Swastika
📲 Download the Swastika App – Android | iOS
Q1. Can AI predict commodity prices with 100% accuracy?
No, AI improves probabilities but markets remain influenced by global shocks.
Q2. Is AI-based commodity trading allowed in India?
Yes, SEBI permits algo-trading under regulatory frameworks, ensuring transparency.
Q3. Can beginners use AI in commodity trading?
Yes, through AI-powered research platforms provided by brokers like Swastika.
Q4. Which commodities benefit most from AI analysis?
Gold, crude oil, silver, and agricultural products due to their volatility and global impact.
AI is reshaping commodity trading in India, offering traders predictive insights, automation, and improved efficiency. While risks remain, AI-driven trading is creating opportunities for both seasoned investors and retail traders.
With Swastika Investmart’s AI-powered research and SEBI-compliant platforms, Indian traders can embrace the future of commodity trading with confidence and precision.
Last week the Indian stock market was very interesting! The reason is the Zomato IPO. Needless to say, the much-awaited IPO knocked at your door last week!
Started as Foodiebay Online Service Private Limited, in 2008 by two IIT students Deepinder Goyal and Pankaj Chaddah, the company has grown much which is now extended to 24 countries.
As per the sources, Zomato brought a revolution to the Indian stock market. An Indian startup is a leading Online Food Service Company in terms of food sold as of December 31, 2020.
The company offers business customer services mainly food delivery and dine out where customers can search and find out the location of restaurants, restaurant menu, order food delivery, make payments for the online delivery etc.
Before we move ahead, we want you to go through the complete analysis of Zomato DRHP. It will give you an idea of the company's business and financials.
In this blog, we take a dig deep into Zomato’s IPO.
Zomato Ltd is a leading online food service company in India that connects restaurants, customers and delivery partners. Zomato mainly works on business to consumer segment or B2C that offers online food delivery and dining out services. It allows customers to easily search, find restaurants, reserve a table, order online food and make payments through Zomato’s mobile application.
Zomato’s other B2B or business-to-business services generate revenue from Hyper pure. It supplies high-quality ingredients and kitchen products and restaurants. Also, it enables restaurants to buy fruits, vegetables, groceries, poultry, meat, seafood and beverages.
Hyperpure has direct contact with farmers, producers, and processors to source these products.
On August 1, 2020, Zomato offered a facility called Zomato Pro, a customer loyalty program. The subscription-based program offers discounts on the best restaurants across dine out and delivery.
Due to the highly successful business model, Zomato is able to generate more revenue, which helps restaurants to drive more sales. Furthermore, the company also host Zomaland, India’s greatest food carnival that brings some of the top eateries, DJs, musicians, and stands up comedians under one roof.
Due to its vast services that spread across the world, the Zomato brand is widely recognized across India. They are widespread and recognized across India. In 2020, the company popped up in the headlines when it acquired UberEats.
Ona recent basis, the company received approval from the CCI or Competition Commission of India to acquire a 9.3% stake in Grofers, an online delivery platform.
Now, they also ventured into cloud kitchen space in which multiple brands/restaurants can prepare food for takeaway or delivery.
As of 2020, Zomato App has been the most downloaded application under the food and drink category in India. Keeping this in mind, restaurants pay a significant amount of fees to the company so that they can be easily available on Google Playstore and iOS App store.
Now, the company has 3.89 lakh active restaurant listings and more than 1.69 lakh delivery partners. It has 15 Lakh Zomato pro members and ~ 3.2 crore monthly active users.
The members are present in more than 500 cities in India. The company's operations are also spread across 24 countries including Canada, Australia, New Zealand, United Arab Emirates. Due to its vast spreading of operations, the company has decided to start the usage of Electric vehicles (EV) for delivery by 2030.
The issue was publicly opened on July 14 and closed on July 16. The price of Zomato IPO per lot was fixed at Rs 72-76 per share. The fresh issue of shares (of the face value of Re 1 each) aggregates to Rs 9000 Crore.
The IPO consists of an OFS or Offer For Sale by a promoter called Info Edge India Ltd, which aggregates up to Rs 375 Crore. Investors who want to invest in the Zomato IPO, are required to go through a bidding process with minimum equity shares of 195 (1 lot). You will need a minimum of Rs 14,820 to apply for the Zomato IPO. Retail investors apply for 2,535 equity shares (13 lots).
Zomato Utilizes the Income Generated from IPOs for the following purposes:
If we look at the overall structure of the IPO then, we will get to know that Zomato firmly prioritizes its duties towards the growth of the company. At the same time, the promoters of the company will continue to hold a fixed stake in the firm, which makes sense in the company’s future prospectus.
FY 2018FY 2019FY 2020Revenue487.01,397.72,742.7Expenses594.03,607.95,006.3Comprehensive Income-104.1-1013.1-2,362.8Margin %-21.4-72.5-86.1
One of the primary risk factors in Zomato DRHP is:
Zomato has seen exponential growth over the years. However, the company said that it may not be able to sustain its historical growth rate. At the same time, its historical performance may not depend on its future growth and financial results.
The company has experienced huge losses in the past few years. It expects a rise in costs and losses in the future.
The financial performance and operations of the company could be adversely affected if they are unable to increase revenue, growth and maintain cash flows.
The COVID 19 pandemic has impacted the company’s online food ordering business to a greater extent. It has been seen that many restaurants were temporarily closed due to heavy lockdown.
Zomato’s business would be negatively affected if they fail to retain the existing restaurant partners or food delivery partners.
Zomato’s IPO is heavily subscribed by the HNI and retail investors on the launching of its first day. This is because it is a brand that everyone loves, admires and depends on. As per the interview, Zomato delivery partners gave us a satisfactory note that they are happy with Zomato’s perks and remuneration.
Because of its oversubscription and GMP (Grey Market Premium), investors of the IPO received huge benefits through listing gains.
Applying for an IPO is quite subjective and if you are planning to buy Zomato’s shares, don't’ forget to check all the pros and cons.
Founded in 1946 by Tribhuvandas Patel Headquartered at Anand, Gujarat, India it is responsible for India's White Revolution India the country of milk and milk products 13 District Milk Unions, widening across 13,000 towns of Gujarat.
“MRF” stands for Madras Rubber Factory, incorporated on November 05, 1960, in India, while in Madras Chennai by KM Mammen Mappillai in 1946.
It is India's biggest Original Equipment Manufacturer (OEM) tire provider with a sweeping tire range from bikes to contender airplanes.
MRF is occupied with the manufacturing, distribution and sale of tires for different sorts of vehicles. The organization offers tire shopping, tyre drome and tire support administrations.
PVR Ltd is the market chief as far as screen counts are concerned in India. PVR is occupied with film shows and creation and works the biggest film circuit across India.
Established in 1995 by Ajay Bijli, the brand has changed the way in which individuals watch motion pictures in the country.
Along with re-defining the film business. The organization has, throughout added screens, both naturally and inorganically, through essential ventures and acquisitions. Its headquarters is located at Gurugram.
Recorded on both NSE and BSE (RBL BANK). The Bank is represented by the Banking Regulation Act, 1949 and the Companies Act, 2013. Founded in 1943 and headquartered in Mumbai Maharashtra. The Bank operates under a different administration to be specific: Corporate and Institutional Banking, Commercial Banking, Branch and Business Banking, Retail Assets and Treasury and Financial Markets Operations.
Founded in 1978 by T.V. Sundaram Iyengar and headquartered in Chennai. TVS Motor Company Ltd. is the biggest 2-wheeler organization in India. It is engaged with the manufacturing of cruisers, bikes, mopeds, three-wheelers, parts and extras.
Incorporated in 1963 by T.P.G Nambiar as a private limited it is currently a public limited company headquartered at Karnataka Bangalore under the name British Physical Laboratories India, the organization is prevalently known as BPL. The organization is engaged in the realm of clinical items turning into the country's premier in manufacturing electro-cardiographs.
HCL Technologies is an IT administrations organization. Founded on 11 August 1976 by Shiv Nadar headquartered at Noida Uttar Pradesh, HCL gives modernized programming items to worldwide customers for their innovative and industry-explicit necessities.
Delhi Land and Finance deals with the construction of private, office, and retail properties. It was incorporated in 1946 by Chaudhary Raghavendra Singh and headquartered in New Delhi, India.it is responsible for residential creation like Shivaji Park, South Extension, Hauz Khas in Delhi.
Founded by S.K. Burman in 1884 headquartered at Ghaziabad Dabur India Limited is a main Indian multinational Consumer goods Company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. fades and healthy skin items.
Cipla Limited is a worldwide drug organization zeroed in on dependable and practical development of manufacturing, exchanging in India and International business sectors
Founded in 1935 by Khawaja Abdul Hameid, headquartered in Mumbai the organization is engaged with manufacturing, creating, and marketing Active Pharmaceutical Ingredients (APIs).
ITC was incorporated on August 24, 1910, its original name being Imperial Tobacco Company of India Limited. afterwards to I.T.C. limited in 1974.itis headquartered at Virginia house, Kolkata, West Bengal
ITC has its presence in FMCG, Hotels, Paperboards Packaging, and Specialty Papers and Agri-Business.
Exide Industries Limited is a public organization Limited in India the organization is principally occupied with the manufacturing of Storage Batteries and partnered items in India. Founded by Rajan Raheja Group headquartered in Kolkata West Bengal India it is consolidated under the arrangements of the Companies Act, 2013. Its offers are recorded on three perceived stock trades in India.
Wipro is a main worldwide data innovation, consulting and business process services company. Founded by Azim Premji in 1945 and headquartered in Bengaluru the Company is engaged with IT Software, Services and related exercises
It is Globally recognized for its comprehensive portfolio of services, strong commitment to sustainability and Creating innovations to assist its customers with adjusting to the advanced world and make them fruitful.
Stocks of the paper industry set a new record high as most of the frontline paper stocks are currently trading up to 15 percent higher with the majority of them experiencing a 52 week high level in intraday trading on this Wednesday.
Star Papers Mills, Orient Paper & Industries, and Seshasayee Paper and Boards have rallied over 10 per cent on the Bombay stock exchange.
Whereas Astron Paper & Board Mill, Andhra Paper, JK Paper, Tamil Nadu Newsprint and Paper, Ruchira Papers and West Coast Papers were on the 8 per cent on the Bombay Stock Exchange.
Yesterday, the S&P BSE Sensex was up to 0.20 per cent at 52,965 points hitting upper circuits.
Let’s look at how the paper stocks performed individually on Wednesday.
Stock Name Highest Stock Price Recorded on Intraday Trade Percentage Change Stock Price at the Time of Writing JK Paper 237.258%226.55Seshasayee Paper & Boards222.812%211.90Emami Paper189.5020%204.70Star Paper Mills17814.5%168.35Pudumjee Paper Products46.5020%44.20Orient Paper & Industries33.3013%31.90Malu Paper Mills38.9019%39.75
For all the companies that are listed above, J&K Paper stocks stood out in gains, jumping more than 40% in the last month.
For all the companies that are listed above, J&K Paper stocks stood out in gains, jumping more than 40% in the last month.
According to a report, JK paper has booked a net profit of Rs 135.79 crore in the quarter ended in March 2021.
It is more than twice the number was recorded in the third quarter of FY 21. JK Paper’s consolidated net profit stood at Rs 65.94 Crores.
This company increased its net revenue by 20.5% to Rs. 898 Crores in the 4th from Rs 745 Crores in the preceding quarter.
According to the JK Paper, the elevated performance of its stocks results from increased production and sales volume than the previous quarter.
Although the company has yet to witness any impact of the second wave, its management team expects some sort of disturbance in the coming months.
Experts also said the demand is expected to pick up and grow by at least 11-15% in FY22 with school, colleges and office spaces likely to open and drive the demand.
Due to the outbreak of Covid 19, the paper and paper product industry is one of the worst affected industries. Closure of education institutions, work from home by offices,
Moreover, downcast demand also had a great impact on the prices of paper & paper products that further affected the revenues of the industry.
The long term demand of the paper industry always remains favourable as the demand increases by increasing literacy levels, growth in print media, higher government spending on the education sector, upgrading urban lifestyle and economic growth.
As the factors are likely to be continued for an extended period, the paper industry is likely to grow at 5-8% per annum in the coming years.
Going ahead, CRISIL expects a huge demand for printing and writing paper to grow at 1-3 per cent CAGR and reach 5.5 million tonnes by Fiscal 2025.
As the new education policy comes into effect, a slow rise in the education spend by the government (~20% higher spend) and increased expenditure on education is likely to support demand for the P & W segment, the company once said in a report.
As per the CRISIL Report, P&W paper demand will increase at a CAGR between 1-3%, hence, giving a 5.5 million tonnes mark within fiscal 2025.
Enrolment of students is set to increase faster, ranging between 0.5% to 1% in the coming years.
As per the experts’ estimation, the demand for paper stocks is all set by 11-15% on a y-o-y basis in FY 23. The primary factor behind the rise of paper stocks is the possibility of reopening of schools, colleges, offices etc.
Consumers will have to pay a tad more for buying anything from branded garments to fast-moving consumer goods (FMCG) bought through e-commerce.
The corrugated box industry expects to increase a sharp cost in a short period and raw materials supply disruptions.
Here, the rise in prices is the main issue. On the other hand, paper mills say they do not have the material.
A paper manufacturing company once said in a letter to its customer, the firm was forced to raise prices after the paper pulp prices increased 70-100% in the last 3 months.
Paper prices, particularly kraft paper, have increased by the two factors; one is supply-side problems and the other is the availability of containers and ships.
Kraft paper mills say the prices of domestic and imported waste paper is rising due to supply misery as a result of Covid led lockdowns and international logistics disruptions.
China had been importing waste paper from all over the world before the ban. For instance, it includes all waste paper generated in the US, Europe and other developed nations. The waste paper was recycled to manufacture paper.
Given the ban on wastes, Chinese paper mills were unable to get the main raw materials and they began to import the kraft paper from India. Kraft paper is recycled paper and Chinese mills use it as a fibre source to manufacture paper.
Companies are also facing issues regarding the availability and prices of waste paper. As the educational institutes closed due to the Covid 19 pandemic, the usage of notebooks and exercise books also declined. This has further increased the demand for paper used for writing and printing dropping.
All these things waste paper supplies. Also, China has set up new units in the US and south-east Asia to convert the waste paper into pulp and send them home.
This has resulted in the domestic industry facing problems in sourcing waste paper and recycling it.
As far as the long term is concerned, the demand for the Indian paper industry needs to be increased. Some of the important factors include economic growth, literacy rates, spending on education etc. In addition to this, print media’s growth to a new level is also something that investors need to consider. If these factors do not hamper the growth of the paper industry, the Indian paper industry is likely to expand rapidly over the next few years.
Since the year’s beginning; the stock market’s performance has done exceptionally well with Sensex breaching the 53,000 points mark again.
Here are 8 large-cap funds that have given outstanding stock market trading returns since January 2021.
All of these funds are not rated by some of the leading agencies that conduct research, hence they are not suggested to invest. Before taking a dig deep into large-cap funds; let’s understand the large-cap funds in detail:
Large-cap funds are a part of equity trading; are equity schemes that heavily invest in large-cap companies. These funds constitute at least 80% of their total assets in equity related instruments in large-cap companies.
As per the SEBI, the best 100 companies, having a full market capitalization are categorized as large-cap companies.
Large-cap companies have a competitive edge in their respective sectors. Also, they have a sustainable market share which makes them large-cap companies. The companies that come under large-cap companies have steady cash flows, strong balance sheets that makes them strong enough to handle difficult situations.
These companies are traded more frequently and as a result, they are more liquid than other companies.
The factors stated above make large-cap companies less volatile than other companies and more capable of withstanding stock market downturns.
Hence, by investing in large-cap funds, investors will save themselves from the jeopardy of selecting independent stocks while benefiting from a diversified portfolio that consists of top Indian companies.
Generally, large-cap funds constitute the base of at least 50% of equity’s portfolio.
As per the stock market research agency, the fund Franklin India Bluechip Fund has given an outstanding return of 23.40%, since the beginning of the year. This is only for mutual funds that come in the large-cap fund. Although the company Franklin India Bluechip fund invests in a variety of companies, they're majorly invested in large-cap companies.
The long term returns from this fund are 13.44% on an annualized return for 3 years and 11.2% on an annualized basis for 5 years. The SIP of Franklin India Bluechip Fund starts with a small amount of Rs 1000 every month.
As per the research report from top analysts, the fund comes under the second position among large-cap stocks as they give high returns since the beginning of the year. The fund gave a return of 20.87% from 1 January to 14 July 2021. This fund invests in large-cap blue-chip companies.
SIP of Tata Large Cap Fund starts with Rs 150 per month. The Tata large Cap Fund is not that big company under the management is less than Rs 1000 Crore.
The three-year return of Tata large Cap Fund is 12.6%, while the five-year returns are 11.91%. As per the sources, Tata large Cap Fund has invested in major stocks like ICICI, HDFC etc.
Since January 2021, the stock has been able to generate returns of 19.38%, and that’s the reason the fund has been ranked as No.3 in stock rating for the year to date returns in the large-cap category.
The fund is very small and newly launched, hence it is not possible to analyze the long term returns. The AUM of this fund is Rs 123 Crores. Since the company has holdings in stocks such as ICICI Bank, Reliance Industries and Infosys.
The minimum investment amount of the fund Mahindra Manulife is Rs 1000 every month.
Like the above companies, Nippon India Large Cap Fund invests in the major listed companies in the business. The fund is ranked fourth in terms of the returns it gave to the investors up to date. Surprisingly, the fund allows investors to start a SIP of Rs 100, and the minimum amount required to invest is Rs 100.
On an annualized return, the three-year return of the fund is almost 13.5%, which is in line with how the markets have performed the previous year.
We wish to emphasize the fact that the Sensex at Rs 53,000 points is at a new record and any large scale exposure to large-cap equity mutual funds can consume wealth. Therefore, it’s more important to invest, if you select the SIP mode of this fund.
The fund gave 18.21% with the year to date which makes this fund come in the large-cap fund. This large-cap fund gives exposure to stocks like ICICI, HDFC Bank, Infosys. Many investors don't suggest going for the fund as if the stock market goes up or down, it will highly affect the fund’s growth rate.
The fund heavily invests in large-cap companies as the fund has good quality management, strong fundamentals, growth potential and a proven track record. The strategy is maintained at the ICICI Prudential Bluechip Fund so as to ensure portfolio diversification and minimize concentration risks.
It adopts a buy and holds strategy for investing while selecting the bottom-up approach for the selection of stock.
The fund also takes huge exposure to high conviction scripts in order to generate outstanding returns in a short period of time.
The scheme mainly invests in large-cap stocks that have a good brand entity and market sectors in their respective segments. This is because the funds may also invest up to 20% of their portfolio in equities than other funds.
The fund follows a combination of investing and growth with a mix of top-down approach and bottom-up approach for the selection of stocks across different sectors.
IDFC funds invest in large-cap companies with an opportunistic allocation to small and mid-cap companies not exceeding 20% of the fund portfolio. The objective is to generate consistent returns with low volatility.
The fund is based on three pillars - buying the right sectors, buying the sector leaders, and allocation to small/mid-cap stocks.
Mutual funds are always known for better returns. Also, these investments are much less risky than other equity-related instruments.
Therefore, many investors always prefer mutual funds over other equity-related instruments. Amongst all mutual fund schemes, large-cap funds are often associated with fewer risks and also they offer a minimum amount as a SIP.
सोने के भाव एमसीएक्स और कॉमेक्स में लगातार चार सप्ताह से बढ़त बनाए हुए है। सोने के विपरीत चलने वाला डॉलर इंडेक्स पिछले चार सप्ताह से सीमित दायरे में बना हुआ है और ऊपरी स्तरों पर इसमें दबाव भी रहा है जिसके चलते सोने के भाव को अच्छा सपोर्ट मिला है।
अमेरिका की लम्बी अवधि की बांड उपज में लगातार तीसरे सप्ताह गिरावट दर्ज की गई है और 10 साल की बांड उपज 1.54 प्रतिशत से घटकर 1.33 प्रतिशत तक के स्तरों पर है। निवेश के लिहाज से सोने के विकल्प के रूप में देखे जाने वाले बिटकॉइन में बिकवाली का दबाव बना हुआ है और यह पिछले सप्ताह 6 प्रतिशत टूट गया है जिससे निवेशकों का रुझान सोने की तरफ बना हुआ है।
अमेरिकी फेड प्रमुख जेरोम पावेल ने अपने बयान में मुद्रास्फीति को अस्थाई बताया है और सेंट्रल बैंक द्वारा अमेरिकी अर्थव्यवस्था को सपोर्ट करते रहने को कहा। हालांकि, निवेशकों को व्यापक रूप से उम्मीद है कि फेड 2022 के अंत तक संपत्ति की कमी शुरू कर देगा और 2022 की शुरुआत में ब्याज दर में वृद्धि की भी संभावना है।
लेकिन यह भी स्वीकार करना होगा कि कोविड डेल्टा संस्करण का डर एक बड़ा आर्थिक जोखिम बना हुआ है जिससे सोने के भाव को सपोर्ट है। सोने के प्रमुख उपभोक्ता चीन से दूसरी तिमाही के सकल घरेलू उत्पाद (जीडीपी) के आंकड़े अनुमान से कम दर्ज किये गए है। कच्चे माल की उच्च लागत और नए कोविड -19 के बढ़ते मामले जीडीपी में धीमी वृद्धि के कारण रहे है।
घरेलु वायदा सोना 0.7 प्रतिशत सप्ताह में तेज़ रहा और कीमते 48250 रुपये प्रति दस ग्राम के करीब रही। चांदी के भाव में भी सुधार रहा लेकिन यह सप्ताह में सपाट रह कर 69300 रुपये प्रति किलो पर रहे।
इस सप्ताह सोने और चांदी में हल्के सुधार के बाद तेज़ी रहने के आसार नज़र आ रहे है। सोने में 48600 रुपये पर प्रतिरोध और 47500 रुपये पर सपोर्ट है। चांदी में 71000 रुपये पर प्रतिरोध और 68400 रुपये पर सपोर्ट है।
SEBI aka Securities and Boards of India (SEBI) has recently approved well-informed investors from the category of wealth who will be allowed to invest in riskier products, which are usually allowed to individuals. Termed accredited investors could be family trusts, individuals, proprietorships, etc. The regulator’s board also strict the norms for the independent directors. Also, it has been mentioned that independent directors can be appointed only through a special resolution passed by the shareholders. The resolution requires a total of 75% votes in favour to be passed. Furthermore, the regulator also has explained and strengthened the disclosure requirements for the skills required to be an independent director. Moreover, the regulator said that the nomination and remuneration committee finally decides on the appointments and compensations that should have two-thirds independent directors compared to a majority now. SEBI or the regulator also specify that all the related party transactions will be approved by only independent directors.The board further said that the entire resignation letter of an independent director should be disclosed along with present directorships and membership of the board committee. All the changes that have been mentioned above will take effect from January 2022. As per the SEBI officials, they will set eligibility criteria for the investors who can get the accreditation from the top stock exchanges, subsidiaries of depositories and more. The regulator had floated a consultation paper in February which had specified some of the criteria such as annual income that must be at least 2 Crore or minimum net worth of 7.5 Crore or minimum annual income of 1 Crore with a minimum net worth of Rs 1 Crore. Authorized investors have the flexibility to invest the minimum amount mandated in SEBI rules and subject to certain conditions from regulatory requirements.SEBI also came up with a new idea in order to minimize insider trading. For instance, it has extended the maximum reward amount for an informant who gives the information on insider trading from Rs 10 Crore to 1 Crore. It has also extended the payment of rewards to informants. The regulator has also approved several changes to its mutual fund regulations that require asset management companies to need more funds in riskier schemes so that they have more skin in the game. As of now, AMC is required to invest only one percent of the amount raised in an NFO that is Rs 50 lakhs. Furthermore, the SEBI also allows debt issuers who have a less than 3-year track record so that they can raise more funds than they issue only on a private placement basis on an exchange bond bidding platform.
The first proposal is directly proportional to the definition of an independent director. As of now, the restrictions are set only to those who have been known to be the termed accredited investors, such as family trusts and proprietorships. Also, the restrictions for those who have had a direct relationship with the directors. The cooling-off period for each was three and two years respectively. In order to maintain a balance, SEBI has proposed to introduce a single cooling-off period for three years. This means, if any person belongs to Key Managerial Persons or its relatives that have had a relationship with the company, its subsidiaries, or promoters, can be appointed as an independent director in a listed entity only three years from the date.
Under SEBI regulations, the directors are appointed and nominated by the company’s board and the approval needs to be taken by shareholders through an ordinary resolution.
SEBI has given more detailed disclosures by the Nomination and Remuneration Committee regarding the selection of candidates for the post of independent director. If there is a vacancy in the name of an independent director, the new candidate appointed by the board must need approval within 3 months.
In order to strengthen the disclosure around the resignation of independent directors, SEBI has proposed the following: The entire resignation letter needs to be disclosed to the shareholders along with a list of membership in the committees of the board. The independent director, who resigns from a board citing pre-occupation, and personal commitments is subjected to a cooling period of 1 year before he/she joins another board.
As of now, two-thirds of the board's committee needs to compromise independent directors. The decisions made by audit committees range from the finalization of accounts to related party transactions; SEBI has proposed the following:2/3rds of the total strength of an audit committee needs to be composed of independent directors, while the remaining must be non-executive directors who are not related to the promoter.
SEBI board toughen norms for independent directors. It is said that independent directors can be appointed through a special type of resolution passed by the shareholders.
SEBI has now sought the views of the Ministry of corporate affairs on this issue, as any change would first have to be applied to company law before SEBI could follow suit. The president and Chief Operating Officer of numerous advisory firms said the discussion paper provides the increasing expectations of investors from independent directors.
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