Lock-in norms eased, quarterly results must
SEBI has improved disclosure standards, made delisting more difficult, relaxed lock-in norms for promoters and gave a push to the stock-lending scheme. SEBI has now made it mandatory for companies to publish their unaudited financial statements on a quarterly basis. It has also decided that not more than 20% of the promoters' contribution shall remain locked both in the case of preferential allotment as well as a public issue.
SEBI set to tighten noose on de-listing
The Securities & Exchange Board of India (SEBI) has decided to tighten delisting norms. It will insist that compulsory delisting by stock exchanges be done in accordance with the procedure and norms specified by it. SEBI has also decided that listing fees for three years should be taken from the companies and be kept in an escrow account with the stock exchange.
Centre move to park Rs 6,000 crore with RBI triggers recoil as gilt prices fall
Prices of the government of India securities fell across the board after the Centre placed Rs 6,000 crore with the Reserve Bank of India (RBI) on Thursday. Prices in the secondary market adjusted themselves to the new yield curve, dealers in the debt market said.
Tata Young Citizens Fund to seek SEBI nod to go open-ended
The Tata Asset Management Company is planning to convert its close-ended scheme, Tata Young Citizens Fund (TYCF), into an open-end one in May or June this year. The fund will approach SEBI for its green signal on the matter next month. The move to go open-ended would provide an exit option to the investors.
Bombed Gontermann FCDs fail to show up on bourses
The attractive 17% interest-bearing fully-convertible debentures (FCDs) of the devolved public issue of the Calcutta-based Gontermann Peipers (India) Ltd (GPIL) have failed to appear on the trading screens of both the Calcutta and Bombay stock exchanges, a fortnight after they were granted trading permission by these exchanges. GPIL had entered the capital market last December with a Rs 63-crore public issue of 17% FCDs.
Rating of debt instruments may raise cost of borrowing
The Securities & Exchange Board of India's decision to make it mandatory for all debt instruments, irrespective of their tenure, to be rated, is expected to increase the cost of debt of weaker companies. These companies will now have to compulsorily have their instruments rated. However, weak financials and bleak business prospects would ensure low ratings for their instruments which in turn would make it more expensive for them to raise debt.
