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Companies face SEBI rap over low demat ------------ BSE has shifted 207 more Companies to the Trade-For-Trade (TFT) group for non compliance with SEBI’s norms to maintain at least 50% of public holding in the demat form. For completing delivery, one must have stocks in demat form. Probably this shifting of Companies to the TFT segment could force shareholders to speed up the process of converting the shares in electronic form. ( Source ET )


SEBI wants simple forms for IPOs ------------ To make it easier for the investors to enter the stock market through public issues, SEBI is considering making application forms for IPOs more simple and short. It is also considering a common IPO form for both ASBA and non-ASBA investors. There is also a proposal to make online option mandatory in all public offers. ( Source ET )


India Inc raised record funds in 2010---- India Inc’s fund raising, both through equity and debt, touched record highs last year. Equity raised by Indian Companies in 2010 in domestic market grew more than 62% over the previous year to a whooping Rs 1,16,300 crore. Yet, it remained overshadowed by debt which held on to its position as the most preferred capital raising source of Indian Companies (Source India Finance Brief)


PNB acquires a majority stake in a Kazakhstan Bank ------ Punjab National Bank (PNB) has picked up a majority stake in Kazak based JSC Dana Bank for about Rs 104 Crores for acquisition of 63.64% holding. (Source India Finance Brief)


Four-fold increase in market mop-up in October’10---- IPOs & Rights Issues by Indian Corporates raked in a whopping Rs 19,109.7 Crores in October’10. This is nearly a four–fold jump vis-a vis previous month. This amount was mobilized through five IPOs and two FPO/Rights.. (Source India Finance Brief)


Past record of share sales by Merchant Bankers --------- SEBI has mandated Merchant Bankers for publication of three year performance of share sales arranged by them in Initial Public Offer documents, to provide investors an insight into the level of due diligence that they do in choosing clients and pricing. So, track record of past share sales in an IPO document could help investors avoid share issues managed by those Merchant Bankers where stock prices performed poorly or had Corporate Governance issues. (Source ET)


SEBI mulls for reducing timelines for IPO applications ---------- SEBI is mulling reducing the timeline for investors to apply for an IPO through ASBA model. Applications Supported by Blocked Amount (ASBA) is a new system that allows investors to apply for an IPO, keeping the application money in their A/cs till the finalization of the allotment. ( Source : India Finance Brief)


Retail Investor limit raised --------- SEBI has doubled the limit for maximum application from individual investors from Rs 1.00 lac to Rs 2.00 lacs across all Public Issues. However there is no increase in percentage allocation. Till now, in Public Offers applications above Rs 1.00 lac were categorized under the High Networth Individual (HNI) segment, where an investor could not get the benefit of a five percent discount for retail investors. ( Source : India Finance Brief)


Exemption of PSUs from minimum public holding--------- The Finance Ministry has exempted state-owned firms from the recent rule that requires listed companies to achieve at least 25% public holding within three years after some of them said they would not participate in disinvestment if the rule was forced on them. Public sector firms will now have to maintain a minimum public float of only 10%, the Finance Minister said in a notification dated 09/08/10. The modified rules also gave a breather to the private sector companies. They will have to comply with the minimum 25% public float within three years but they will now have flexibility in how the limit is reached, without the annual 5% increase mandated in the current rules. (Source : India Finance brief)


Recommendation for increase of Capital Gains Tax Rate----------- Assochem suggests that the Government should increase the Capital Gains tax to 30% from the current 20% to retain foreign investments in the economy for a longer duration. “The time has come when India needs to increase Capital gains tax on securities traded into Indian Capital Markets on FIIS investments from a stipulated level of 20% to 30%” Assochem said in a statement. (Source : India Finance brief)


SEBI on Thursday (5/8/10) said Companies planning an Initial Public Offer (IPO) will have to file the shareholding pattern with the Exchanges a day prior to the listing. Currently, Companies disclose the shareholding pattern only on a quarterly basis. Further, while filing the quarterly shareholding pattern, the disclosure of shares held by custodians, against which Depository Receipts have been issued, Global Depository Receipts (GDR), American Depository Receipts (ADR), should be classified as Promoter, Promoter Group and Non- Promoter. (Source : ET)


Changes in ‘Takeover Code’-------------- SEBI panel recommends for the following changes in Takeover Codes:- a) Raising the Public Offer trigger to 25% from the present 15%. b) Obligation on the acquirer to buy out all minority shareholders instead of just 20% as at present. While some expert feels the recommendations, if accepted by SEBI, will align India’s Takeover norms closer to the global standards, others say they will make ‘buy outs’ more expensive.


‘no frills’ demat accounts ------------- SEBI has asked depositories viz. NSDL and CDSL to offer ‘no frills’ demat accounts , in an effort to widen the retail investor base. Currently DPs collect annual maintenance charge ranging from Rs 300/- to Rs 500/- per a/c irrespective of whether there are any transaction or not. SEBI’s proposal comes at a time when the growth of retail demat a/c is very low and the retail participation in the stock market is dwindling ( source : ET )


Government to launch Investor Awareness Campaign ------------- The Corporate Affair Ministry, GOI, Thursday said it would organize Awareness Camps across the Country to attract the investments into the Corporate Sector. The Ministry said in a statement that there are significant household savings available with Indian households which can be channelized into the Corporate economy which will result in not only higher returns for the investors but also more growth of the Corporate Sector. ( source : India Finance Brief )


Bank Merger ------------- State Bank of Indore is getting merged with State Bank of India. SBI Chairman said that the Government’s decision for the proposed merger is expected shortly, after which it would take a month to complete the merger process. ( source : India Finance Brief )


Insurance can not front load cost ------------------- a) W e f 1st September, 2010 Insurance Companies are not allowed to deduct front load cost from the pre-matured withdrawals. b) Insurer will direct major part of the investments to safe avenues like Govt Securities, reducing the scope for earning higher return from equity-oriented products.


Dishonouring of cheques with alterations ----------- For cheques cleared under Cheque Truncation System (CTS) any alteration of the writings will cause dishounour of cheque. CTS is currently operational in Delhi and will gradually be covered in Chennai, Kolkata & Mumbai.


Mutual Funds ---------------------- The subscription period of New Fund Offer (NFO) has been reduced from 30 days to 15 days, except for equity-linked saving scheme with effect from 1st July, 2010.


Banking takes steps towards further transparency ------------- At the insistence of RBI, the bankers have switched over from Prime Lending Rate (PLR) to Base Rate for deciding Lending Rates to their customers. No bank is allowed to lend to a customer at a rate below Base Rate. Mr O P Bhatt, Chairman SBI said “credit will henceforth revolve around Base Rate as it will be the reference rate over which all loans will be priced.” ‘Base rate’ is effective from 1st July, 10 and SBI with a fifth of market share fixed its Base Rate at 7.5% . It is expected that the rate will hover between 7% to 8.75%.


SEBI has taken up with Government to change rules to allow the holders of American Depository Receipts (ADRs)or Global Depository Receipts (GDRs) issued by Indian Corporates to exercise their voting rights, raising the shareholder’s activism in future. The above changes are proposed in line with offerings by other Countries where depository holders are entitled to exercise their right to vote and provide instructions to the custodian bank.


Minimum Public holding reduced to 10% for Big Companies ------ The Finance Ministry plans to exempt large unlisted Companies from the proposed 25% minimum Public holding norm to ensure that it does not discourage them from going public. Large Companies could be allowed to list with a 10% offer to the public, but will have to raise public holding to at least 25% over a prescribed period. ( source : India Finance brief )


SEBI standardizes Power of Attorney ( POA) --------------------- Brokers & DPs will have to ensure that clients execute POAs in favour of them are as standardized by SEBI. A POA is executed by client in favour of his Stock Brokers & DPs to authorize the broker to operate the client’s demat a/c and bank a/c to facilitate the delivery of shares and pay in and pay out of funds. For existing clients brokers will have to take necessary steps latest by September, 1, ’10. “Standardizing the norms for POA must not be construed as making the POA a condition precedent or mandatory for availing of broking or DP services”. The SEBI circular said “No stock broker or DP shall deny services to the client if the client refuses to execute a POA in their favour” the regulator said. (Source ET)


As per SEBI guidelines Companies making IPOs will have to list their shares within 12 days after the subscription closes instead of 22 days as prevalent now. A shorter time between issue closure and listing of shares will reduce market risk for investors and also free up their funds faster. It is also beneficial for the issuing Companies, as they will have access to the IPO funds faster. ( source ET )


Brokers deny ASBA facility ------- The implementation of ASBA, an ambitious project by SEBI could suffer due to a lack of initiatives from brokers. According to industry sources, brokers are denying ASBA facilities to investors in Public Issues. ( source ET )


SEBI in a recent circular mandated Mutual Funds to provide the ‘Application Supported by Blocked Amount (ASBA)’ facility to investors in all NFOs launched after 1st July, 2010. The ASBA system which is currently available to a section of investors in Share Issues is an alternative mode of payment where an applicant’s money leaves his bank account only after the shares or units are allotted. ( source ET )


Sebi vide its recent circular no SEBI/MRD/DoP/SE/RTA/Cir-03/2010 dated 7th January, 2010 has made it mandatory to furnish a copy of PAN Card by the transferee(s) in case of transfer of shares including deletion of name, transmission and transposition, mismatch or difference in name ( from maiden to married name in case of woman) of the investors.


BSE vide their communication dated 6th January, 2010 have decided to discontinue filling of quarterly “shareholding pattern for free-float indices”, that was being submitted in a separate format, which was in addition to the shareholding pattern filed in compliance with clause 35 of the listing agreement. This has become effective with immediate effect.


ASBA - Application Supported by Blocked Amount- -------------------SEBI has allowed to apply in an IPO through ASBA, instead of applying with cheques/drafts. This will avoid loss of interest on funds deployed and botheration of issuer to refund the money not required for allotment. The investor is required to submit the ASBA form to his banker who in turn will block the amount in the account.


E-Voting System ---------- Shareholders can now cast their votes on corporate proposals through the click of a mouse without filling up the ballot paper and without worrying for their response, to reach the Company. An arm of CDSL has launched the e-voting system for the listed companies. -- ( source : ET )


SEBI plans open auction route for public offerings. SEBI proposes to change the way public share offerings are done at present. A pure auction method of book building in which QIBs could bid at any price above the floor price. This gives the Company the price it deserves. It gives the institutional investor the number of shares at the price they want and the retail investors will now only get at fixed price option.


With effect from 1st September 2009, the Registered Office address of M/s AREVA T & D LIMITED has been changed to E-48/7, OKHLA INDUSTRIAL ESTATE, PHASE II, NEW DELHI 110 020.


In regard to transfer of shares in Physical Form SEBI vide its Circular No MRD/DoP/Cir-05/2009 dated May 20, 2009 has made it mandatory for the Transferee(s) to furnish copy of PAN Card to the Company/Registrars. This provision is applicable for listed Companies and comes with immediate effect. For further details please visit website of SEBI through our web link.

Name:

Name of the Holder:
(As per Record)

Address:
(As per Record)

Pincode:

Telephone No.:

Mode of Holding:
Physical Demat



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