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Our Banking Bureau
MUMBAI, July 28: The State Bank of India has not yet received the green signal from the Securities Exchange Council (SEC) to sell the Resurgent India Bond in the US. If it does not come through by the next seven days, the SBI will not be able to market the bond in the US.
According to sources, the CEO of SBI's New York operations is slated to meet the regulatory authority on July 30. The earlier meeting, scheduled on July 24, was deferred. "This is not the first time that a meeting between the bank and the US regulatory authority got postponed. The delay in clearing the issue may not be usual," sources said.
In the absence of the green signal from the SEC, the bank will not be able the hold the roadshow in the US. "The bond cannot be marketed in the US. The bank will not be able to advertise the issue... However, if the non-resident Indians and overseas corporate bodies in the US remit the fund to London or any other country they will be able to subscribe to the bond," sources said.
Meanwhile, the firstleg of roadshows headed by SBI chairman MS Verma - held in the Middle East - came to an end on Monday amid "overwhelming" response.
"Even if we keep the US out of the marketing road map, we will be able to mop up the targeted amount," a senior SBI executive said. The bank targets to raise $2 billion. The issue - slated to open on August 5 - is likely to be closed on August 17, the earliest closing date. MUMBAI, July 28: The State Bank of India has not yet received the green signal from the Securities Exchange Council (SEC) to sell the Resurgent India Bond in the US. If it does not come through by the next seven days, the SBI will not be able to market the bond in the US.
According to sources, the CEO of SBI's New York operations is slated to meet the regulatory authority on July 30. The earlier meeting, scheduled on July 24, was deferred. "This is not the first time that a meeting between the bank and the US regulatory authority got postponed. The delay in clearing the issue may not be usual," sources said.
In the absence of the green signal from the SEC, the bank will not be able the hold the roadshow in the US. "The bond cannot be marketed in the US. The bank will not be able to advertise the issue... However, if the non-resident Indians and overseas corporate bodies in the US remit the fund to London or any other country they will be able to subscribe to the bond," sources said.
Meanwhile, the firstleg of roadshows headed by SBI chairman MS Verma - held in the Middle East - came to an end on Monday amid "overwhelming" response.
"Even if we keep the US out of the marketing road map, we will be able to mop up the targeted amount," a senior SBI executive said. The bank targets to raise $2 billion. The issue - slated to open on August 5 - is likely to be closed on August 17, the earliest closing date.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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