India’s Supreme Court on Friday provided relief to Reliance Industries Ltd in a securities market fraud case, overturning a lower court ruling and a 2020 order by the markets regulator that alleged the firm engaged in manipulative trading practices.

The court directed the Securities and Exchange Board of India (SEBI) to ‌refund 2.5 billion ⁠rupees ($26.32 ⁠million) it had collected from the Mukesh Ambani-led company pending appeal, according to the order.

RIL and SEBI did not immediately respond to Reuters requests for comment.

The case relates to RIL’s November 2007 decision to sell a stake of about 5% in its subsidiary, Reliance Petroleum Ltd (RPL). Ahead of the sale, RIL had entered into arrangements with 12 entities that took ⁠short positions ‌in RPL futures contracts, with profits and losses from those trades ultimately accruing to the company.

In its 2020 order, SEBI ⁠had ruled that the arrangement amounted to fraud and market manipulation as it circumvented position limits in derivatives, cornered the market and influenced settlement prices.

It had directed RIL to repay 4.47 billion rupees to investors.

RIL challenged the order before the Securities Appellate Tribunal, which upheld SEBI’s findings, following which the company approached the Supreme Court. The apex court, however, held that a breach of position ‌limits is a regulatory violation but does not by itself establish fraud. It said hedging is a legitimate risk-management tool and there is no legal ⁠requirement for a “perfect hedge”.

“There is no legal requirement to ensure a perfect hedge with a 1:1 ratio,” the court said, adding that SEBI had failed to meet the higher burden of proof required to establish manipulation.

“Concentration of positions, aggressive trading strategies, or even violations of trading norms may invite regulatory consequences, but they are not, by themselves, sufficient to establish market abuse,” said Sumit Agrawal, senior partner, Regstreet Law Advisors.

BofA Securities bought 1.16 lakh shares in Kaynes Technologies on Thursday via a block deal worth Rs 42 crore. The sellers in the deal were Kadensa Master Fund and Bluepearl Map I LP. The shares were bought at a price of Rs 3,614.4 apiece, a 3% discount over Wednesday’s closing price of Rs 3,724.50.

BofA Securities bought these shares through its affiliate BofA Securities Europe SA. Sellers Kadensa and Bluepearl offloaded 46,934 and 69,148 shares, respectively.

Kaynes Technologies shares today ended with cuts of 0.70% or Rs 26.25 to settle at Rs 3,698.25 on the BSE.

Kaynes Technology India is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India. It offers capabilities across the entire spectrum of ESDM services. The company provides conceptual design, process engineering, integrated manufacturing and life cycle support for major players in the automotive, industrial, aerospace & defence and railways.

Kaynes Technologies share price performance

Kaynes Technologies has been a market laggard, sliding 14% over a one-year period, underperforming the benchmarks Nifty and the BSE Sensex, whose returns in the same period are approximately 5% and 3%, respectively.

The stock has been at the receiving end of investors’ ire, declining 48% in the last six months. In 2026, so far, it has slipped nearly 6%.

The stock is currently trading below its 50-day and 200-day simple moving averages (SMAs) of Rs 3,751 and Rs 5,473, respectively, according to Trendlyne data.

The company reported a 15% year-on-year consolidated net profit growth at Rs 77 crore in the December-ended quarter which is a 15.3% YoY growth. In the year ago period, its profit after tax (PAT) stood at Rs 67 crore. Meanwhile, the total revenue in the quarter under review stood at Rs 849 crore, up 24% versus Rs 686 crore in Q3FY25.

Also read: SBI block deal: BNP Paribas buys 5.28 lakh shares in a Rs 64 crore transaction

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Nifty ended sharply lower on Tuesday dragged by a steep fall in IT, auto and bank stocks. The index has slipped sharply after falling below its 21EMA, leading to significant long unwinding.

Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities said Nifty declined toward its 200DMA, where it found initial support and it is likely to remain within the 25,300–25,750 band, going ahead. “It may oscillate within a 450-point range amid heightened volatility. The India VIX has remained elevated, which may keep investors on edge. However, as long as 25,300 is not broken decisively, a meaningful bounce could happen. Therefore, long trades may be considered with a stop loss placed below 25,300,” De added.

Here are 2 stock recommendations for Wednesday:

Buy PNB at Rs 131.35 | Upside: 7%

Stop Loss: Rs 125

Target: Rs 141

Buy Punjab National Bank with a timeframe of 2-3 weeks. The stock price has been in a consolidation phase recently following a sharp upward move. We observe a sharp upward move from near the bottom of Rs 118 levels since last week. The stock price is attempting to move above the hurdle of Rs 131-132 levels. Volume has started to expand during the upside breakout in the stock price and RSI shows a positive indication.(Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities)

Sell OFSS at Rs 6,465 | Downside: 5%

Stop Loss: Rs 6,635

Target: Rs 6,140

The stock price is in a strong downside momentum over the last few weeks. We observe a bearish pattern like lower tops and bottoms over the period of time. Currently, it is attempting a downside breakout of a few weeks’ range at Rs 6,450 levels. Volume and RSI patterns indicate a negative bias for the stock price ahead.

(Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

A body of stockbrokers on Thursday urged Finance Minister Nirmal Sitharaman to revoke the budget proposal to hike the securities transaction tax.

While presenting the budget on February 1, Sitharaman announced the STT (securities transaction tax) hikes, saying the move will “provide reasonable course correction” in the Futures and Options (F&O) segment and generate additional revenues for the government.

The FY27 budget has proposed raising the STT on Futures to 0.05 per cent from the present 0.02 per cent, and the STT on options premiums and exercise of options to be raised to 0.15 per cent from the present rate of 0.1 per cent and 0.125 per cent, respectively. The markets saw a sharp fall in the aftermath of the announcements.

In a letter to the finance minister, the Association of NSE Members of India (ANMI) said post-hike, the total cost of futures trading will nearly double due to the sharp increase in STT and added that the tax will account for 84 per cent of the total cost of futures trading.

“ANMI respectfully requests your good offices to consider a rollback of the recent hike and a rationalisation of STT, particularly in the cash market segment, with a view to reducing transaction costs and improving market liquidity,” the letter reviewed by PTI said.

It said that STT has been steadily increased over the last two years, and the measure may not yield the purpose of limiting speculative activity in the markets.

“The higher incidence of STT disproportionately affects futures trading, even though options are generally regarded as more speculative in nature,” the letter said, adding that a more balanced and calibrated approach to transaction taxation would help preserve market efficiency. Flagging that the trading costs are relatively higher in India as compared to global markets, ANMI warned that an increase in transaction costs may have unintended consequences for market liquidity and participation.

“Given that derivatives constitute a substantial portion of overall market volumes, the higher STT is likely to discourage active participation, adversely impact liquidity, and reduce risk-management efficiency,” it said in the letter.

This will have a “direct bearing” on brokerage revenues and the overall vibrancy of the markets, said ANMI, which represents trading members of the National Stock Exchange of India, BSE and Multi Commodity Exchange of India (MCX).

A rollback of the measure will boost market participation, enhance ease of doing business for intermediaries, and further strengthen India’s position as a globally competitive capital market, it added.

Capital markets regulator Sebi on Friday announced a special one-year window to help investors transfer and dematerialise physical securities that could not be processed earlier due to procedural or documentation issues.

In a circular issued on January 30, Sebi said the special window will be open from February 5, 2026 to February 4, 2027. The move is aimed at investors who were unable to transfer their physical securities before April 1, 2019, when the regulator made dematerialisation mandatory for transfer of securities.

According to Sebi, the window will allow such investors to regularise and complete the transfer-cum-dematerialisation of their securities. This will enable them to gain access to securities that could not be transferred earlier due to reasons such as incomplete paperwork, procedural hurdles or other similar issues.

The special window will also apply to transfer requests that were submitted earlier but were rejected, returned, or not processed because of deficiencies in documents or procedures. Investors will be able to resubmit these cases during the one-year period.

Sebi said the measure is intended to help investors get rightful access to their securities that remain in physical form. The provisions of the circular will come into effect from February 5, 2026.

The circular has been issued as part of the regulator’s efforts to ease the process of doing investments and address long-pending investor grievances related to physical securities.

The Indian equity market heads into 2026 facing an unusual paradox. On the one hand, optimism around growth, earnings recovery and policy support is building. On the other, a flood of new listings threatens to stretch liquidity and test investor appetite. According to HDFC Securities, the coming year could well be defined by how markets navigate this delicate balance.

The most immediate challenge is the sheer scale of the IPO pipeline. More than 190 companies are expected to tap the primary market in 2026, collectively seeking to raise over Rs 2.5 lakh crore. Such a heavy issuance calendar raises a fundamental question: will the IPO rush end up killing the goose that laid the golden eggs? HDFC Securities flags the risk of a “liquidity drain” in the secondary market as capital is diverted towards new listings. With investor funds being absorbed by fresh paper, trading activity and price discovery in listed stocks could come under pressure.

Compounding this concern is the uncertainty around foreign investor flows. Even after a meaningful consolidation in 2025, Indian equities continue to trade at a premium to other emerging markets such as China and Brazil. Foreign institutional investors pulled out nearly Rs 3 lakh crore from Indian equities in 2025. While there is hope that flows could stabilize or even reverse in 2026, HDFC Securities cautions that several factors may still keep foreign capital on the sidelines.

That said, the broader global and domestic backdrop offers reasons for guarded optimism. Global trade uncertainty is expected to gradually come down, aided by easing geopolitical tensions and the prospect of tariff reversals. Trump’s trade policies, which have been a major source of disruption, are expected to diminish further as a dominant influence on the global economy. “Emerging markets rotation is anticipated, with India as a key beneficiary,” it added.

Within this framework, emerging market rotation is anticipated, with India seen as a key beneficiary. China’s GDP growth is expected to remain stable, while crude oil prices are likely to stay subdued, easing pressure on inflation and external balances. Central bankers’ sustained demand for gold is expected to keep the metal buoyant through 2026, reflecting lingering caution even as growth stabilises.

India’s domestic macro story remains a key pillar of HDFC Securities’ outlook. Rate cuts, CRR reductions and liquidity infusion form part of this supportive policy mix. Structural domestic demand and a rising allocation of household savings towards equities continue to provide a strong internal cushion, possibly reducing dependence on foreign flows.

Digital infrastructure improvements and the rapid digitisation of payments are also highlighted as structural positives, creating new economic opportunities and enhancing efficiency across sectors. Against this backdrop, nominal GDP growth is expected to enter double digits in 2026, setting the stage for an earnings recovery after a challenging period.From a market perspective, valuations have corrected meaningfully, and foreign portfolio investor exposure is at historically low levels. Together, these factors create upside potential if sentiment turns. HDFC Securities expects India’s markets to deliver a “Goldilocks” outcome, characterised by a broad-based recovery. Industrial metals are expected to shine, reflecting improving global demand, while the rupee is projected to remain stable.

For FY27, Nifty earnings are expected to grow by 16%, translating into an anticipated annual return of about 11% for the index, pegging a yearly Nifty target of 28,720.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

The Securities and Exchange Board of India (Sebi) on Wednesday doubled the monetary threshold for the simplified documentation process for issuing duplicate securities to Rs 10 lakh from Rs 5 lakh.

The Sebi move follows a consultation paper the market watchdog issued in November to ease investor compliance and remove inconsistencies. The regulator said the Rs 5 lakh threshold was too small, no longer reflected current market realities, and imposed an avoidable procedural burden on investors.

The changes were made via a circular issued late Wednesday and the provisions of this circular came into force immediately.

Here’s what investors must know:

The overhaul will ensure that investors holding securities valued up to Rs 10 lakh will now be required to submit fewer documents.

1) Sebi has prescribed a standardised Affidavit-cum-Indemnity Bond format and rationalised documentation for securities valued above Rs 10 lakh.

2) To further reduce the compliance burden, notarisation of the Affidavit-cum-Indemnity Bond will no longer be required in cases where the value of securities is up to Rs 10,000.

3) These measures aim at ease of investments for investors and facilitate restitution of investor rights in securities. As duplicate securities issued would necessarily be in demat mode, this will result in increased dematerialisation.

4) Sebi circular directs all listed companies and RTAs (registrar and transfer agents) to process requests strictly in line with the revised procedure.

5) However, Sebi clarified that investors who have already submitted documents under the old framework will not be required to resubmit them in the new formats.

Old requirements

Sebi prescribed the documentary and procedural requirements for issuing duplicate share certificates through its June 23, 2025 master circular.

Under the previous rules, if the securities’ value was Rs 5 lakhs or more the security holder was required to submit a copy of FIR or e-FIR/police complaint or court injunction order along with details of the securities, folio number, distinctive number range and certificate numbers.

They were also required to advertise the loss of securities in a widely circulated newspaper. Moreover, the investors must also submit an affidavit and indemnity bond separately on non-judicial stamp paper.

The Sebi paper noted that the value of securities could be less than the value of stamp duty in many cases, and hence the payment of stamp duty on two different instruments may not be logical.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Markets regulator Sebi on Thursday deferred the implementation of the third phase of its nomination framework for the securities market, which was earlier scheduled to take effect on December 15.

The new implementation date will be announced later, the Securities and Exchange Board of India (Sebi) said in its circular.

The deferment comes in response to operational challenges faced by depositories and other stakeholders.

In January, Sebi issued guidelines to revamp the nomination process for mutual fund folios and demat accounts to enhance transparency and minimise unclaimed assets in the securities market.

Following representations from various industry bodies, the regulator decided to adopt a phased implementation approach through a subsequent circular in February 2025.

However, depositories, depository participants, and industry bodies have again expressed operational challenges and requested more time to update their systems and processes.

“In view of the foregoing, it has been decided to defer the timeline for implementing the aforesaid circular from December 15, 2025, to a further date to be notified separately,” Sebi said.Going by the circular, if one or more joint account holders pass away, the assets will be transferred to the surviving holder(s) without the need for additional KYC unless it was requested earlier and not provided.

The guidelines addressed to entities like AMCs, depositories, and other market participants by introducing significant changes to the rule of survivorship, mandatory nomination for single holdings, and enhanced safeguards for authenticity.

Under the rule of survivorship, assets in joint accounts will be transferred to surviving holders without affecting prior nominations or operational modes.

Further, the market watchdog also introduced robust measures to verify and validate nominations.

Sebi highlighted new rules to will allow investors to nominate up to 10 persons in the account/folio, with an option to specify percentage allocations for each.

In the absence of any such specification, the assets will be equally distributed among all the nominees. In case of the demise of the investor and any one of the nominees, the regulated entities will distribute the assets on a pro rata basis to the remaining nominees.

The markets watchdog clarified that nominees will receive the assets as trustees on behalf of the legal heirs of the account holder, with no direct inheritance rights for the heirs of a predeceased nominee.

One of the key features of the revamped system is the inclusion of digital and physical channels for submitting or updating nominations.