MUMBAI: The capital market regulator has issued a stern warning to companies that are taking lightly the requirements of the minimum public shareholding norms.
The watchdog has made it clear that the deadline will not be extended and the non-compliant entities will be seriously dealt with. Speaking at a seminar, the Securities and Exchange Board of India (Sebi) chairman UK Sinha said enough time has been given to companies to comply with the regulations and there will be no extension.
“The companies and their advisors are perhaps thinking that this time limit will be extended. But let me tell you, that I am going to make it difficult,” he said. “This is a very important requirement. Three years’ time-frame has been given, more than one-and-half years are over, but there is absolutely no movement towards it,” he added.
According to the minimum public shareholding norms, promoters of all listed companies have to bring down their stake to 75% by 2013. The deadline for private companies is June 2013, while that for public sector undertakings (PSUs) is August 2013.
According to the Sebi chairman, there are 181 non-PSUs, which are yet not compliant with these regulations. If the PSUs are also taken under consideration, then shares worth nearly R40,000 crore will have to be sold by listed entities to comply with the norms, said Sinha.
The chairman also highlighted the fact that new avenues for stake sale have been opened up by the regulator, but still companies appear to be not interested in moving towards meeting the regulatory requirement.
“I don’t really know why companies are not coming forward. We received one request that the avenues for divestment are limited. Sebi has provided two more avenues — OFS and IPP. So, that requirement from the industry has been met by Sebi,” he said, adding that any request for making the process simpler will be looked into.The Sebi chairman also said that the regulator has already taken a view of amending the Manner of Increasing and Maintaining Public Shareholding in stock exchanges (MIMPS) norms and the new regulations would be place in the nest two months. The regulator is reviewing the initial public offer (IPO) norms and is expecting to complete the process in the next 3-4 months. The consent order guidelines will also be announced in another four weeks, he said.
“We are having a serious re-look at the entire IPO process. We are going to have more orderly disclosures, at the same time making the forms simpler. The ability of investors to participate we are going to augment it tremendously. In the next 3-4 months, the entire IPO process will be redone,” he said.
PFC MAY FUND GVK, VIDEOCON’S COAL MINE ACQUISITIONS OVERSEAS
NEW DELHI: State-run Power Finance Corporation (PFC) said it is in talks with GVK and Videocon to fund their coal mine acquisitions overseas on the condition that they bring a majority portion of the coal back to India. PFC Chairman and Managing Director Satnam Singh also said the company would carve out a separate unit – Facilitation Group – to finance such coal mine acquisitions. The state-run lender may form a subsidiary for such proposals in the future. “At present there is no plan to float any such subsidiary, but later we will see,” Singh said. The company which is engaged in funding power generation, transmission and distribution projects, plans to raise Rs 40,000 crore during the current financial year as part of its resource mobilisation plan. “Part of the resource mobilisation target of Rs 40,000 crore for the current fiscal would come from external commercial borrowings,” he said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/pfc-may-fund-gvk-videocons-coal-mine-acquisitions-overseas/articleshow/12651806.cms)
CHINA’S PCC INKS $2.4-BILLION DEAL FOR IL&FS POWER UNIT
NEW DELHI: Even as Indian security agencies have expressed concern over the growing influence of Chinese firms in India’s infrastructure projects including power, one of the country’s biggest infrastructure companies IL&FS has inked a $2.4-billion contract with Power Construction Corporation of China. The deal includes the construction of the second phase of a coal-fired power complex in Tamil Nadu. It is the first time a Chinese company has undertaken the responsibility for the entire project work and not restricted itself to the supply of equipment for an Indian power plant. Chinese companies have been supplying equipment to power projects in Indiabut are averse to taking responsibility for the entire project work (that is, engineering, procurement and construction or EPC), especially after Indiatightened visa norms for Chinese workers in 2008. So while close to half (45%) of the equipment orders of about 56,000 MW placed by companies for different projects in 11th and 12th Plan periods are overseas and about 48,000 MW of this is from China alone, not many of these projects have Chinese companies as EPC contractors. (For details log on to : http://www.financialexpress.com/news/chinas-pcc-inks-2.4bn-deal-for-il&fs-power-unit/936670/)
DEBT FREE MISL CHALKS OUT RS 10,000 CRORE EXPANSION
KOLKATA/BHUBANESWAR: Mideast Integrated Steel Ltd (MISL), a Mesco group company having a one million tonne pig iron plant at Kalinganagar in Jajpur district of Orissa, has paid off all its debts through a debt restructuring plan. “We have become the first steel company in the country to be a debt free,” claimed J K Singh, chairman, MISL. “The financial fundamentals of the company have become stronger after clearing all the debts, both secured and unsecured, from internal accruals,” he told newsmen after the company board meeting. The company has paid back Rs 17 crore loan taken from the state-owned Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) and approximately Rs 25 crore loan taken from the UK-based Stemcor group. It has also cleared all other debts from its book after a complex debt restructure plan which was devised seven years back. (For details log on to : http://www.business-standard.com/india/news/debt-free-misl-chalks-out-rs-10000-cr-expansion-/471285/)
WRIST WATCH MOBILE PHONES FIRM BURG EXPANDS INDIA BUSINESS
NEW DELHI: Netherland-based Burg that makes wrist watch mobile phones today announced expansion of its business in Indiaby opening two branded stores in Delhi. “We have plans to first establish our business in North India and after 9 months expand our presence in South India. The two stores we added today are part of business roadmap. We will open fifth store in Gurgaon,” Burg Global Sales Director Koen Pieters told reporters here. The company already has two store in India– in Guwahati and Kolkata. Burg manufactures wrist watches which integrate features of a mobile. These devices are priced between Rs 9,000 to Rs 23,000. While the lowest priced model can be used only for making and receiving calls, the high end models have most features of a multimedia mobile phone. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fashion-/-cosmetics-/-jewellery/wrist-watch-mobile-phones-firm-burg-expands-india-business/articleshow/12652190.cms)
PATANJALI BETS BIG ON RETAILING WITH AYURVEDIC PRODUCTS
KOLKATA: Swami Ramdev-promoted Patanjali Ayurved Ltd aims to reach every household by 2012 with open market distribution of its products and also by selling them through swadeshi seva kendras. The ayurvedic company launched open market operations today in the eastern and north-eastern regions of the country with Ramdev’s close aide Acharaya Balkrishnan asking people to use swadeshi products. Open market operations has already been launched in north India. Balkrishnan said at present the four manufacturing units in Haridwar have a capacity to process 1,000 tonnes of raw materials, rolling out 500 products in medicine, food and cosmetics and toiletries. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/patanjali-bets-big-on-retailing-with-ayurvedic-products/articleshow/12653269.cms)
PRIYA ENTERTAINMENT ALLOTS RS 25-30 CR FOR SETTING UP MULITIPLEXES
KOLKATA: Tollywood’s leading entertainment brand, Priya Entertainments Pvt Ltd (PEPL), is projecting an outlay of roughly Rs 25-30 crore in setting up its brand of multiplexes, Bioscope, over the next 2-3 years. Priya ventured into this field when it threw open its maiden multiplex in 2010 in Kolkata’s newly developing Rajarhat area. The first Bioscope, a 6-screen outfit, is located in Rajarhat’s Axis Mall. Now, Priya is unveiling its second Bioscope in West Bengal’s industrial city, Durgapur. The Durgapur Bioscope is a 3-screen facility built at an investment of Rs 8-9 crore. “Next on the anvil is another 3-screen Bioscope in Haldia. That should be up by next Bengali New Year at a cost of Rs 7-8 crore. Also in the pipeline is a multiplex in Thimpu in Bhutanwhere we’ll plough in Rs 5 crore,” Arijit Dutta, PEPL’s managing director, told ET. Going by the normal trend countrywide, Priya’s multiplexes are generally being built through the lease model. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/media/entertainment/priya-entertainment-allots-rs-25-30-cr-for-setting-up-mulitiplexes/articleshow/12649744.cms)
INDIA TO OPEN FDI GATE TO PAKISTAN
NEW DELHI: Indiahas decided in principle to allow foreign direct investment from Pakistan, as part of the road map to enhance economic engagement, a development that is expected to boost bilateral trade. “As part of the initiatives to promote liberal trade, Indiahas in principle agreed to FDI from Pakistan,” Commerce and Industry Minister Anand Sharma said on Friday, after meeting Pakistan Commerce Minister Makhdoom Amin Fahim here. Mr. Sharma said the procedures, and the requirements, for allowing FDI were being formulated, and would soon be notified. Both countries have also agreed in principle to allow opening of bank branches to guarantee smooth trade. This is the upshot of several rounds of talks between the Reserve Bank of India (RBI) and the State Bank of Pakistan. (For details log on to : http://www.thehindu.com/business/Economy/article3310677.ece?homepage=true)
HIGH TRADE DEFICIT DAMPENS CHEER OVER EXPORTS GROWTH
NEW DELHI: Difficult conditions in the USand the euro zone notwithstanding, Indiamanaged to cross the target of $300 billion for merchandise exports in the previous financial year. However, the trade deficit widened to a record $185 billion, which in turn would widen the current account deficit (CAD). Exports saw a robust performance, primarily owing to the engineering, gems and jewellery, textiles, chemicals and pharmaceuticals segments. But economists feel the outlook for exports this financial year is bleak due to the high base effect in the initial months of the previous financial year, as well as the slow global recovery. “I am happy to announce India’s exports have crossed $300 billion in the last financial year,” said commerce and industry minister Anand Sharma. (For details log on to : http://www.business-standard.com/india/news/high-trade-deficit-dampens-cheer-over-exports-growth/471306/)
AFTER AUTO, ELECTRONICS & PHARMA, NOW JAPANESE COS TAKING TO RETAIL & FINANCE
NEW DELHI: Mitsui Sumitomo’s purchase of a 26% stake in Max New York Life, Daiichi Sankyo’s acquisition of Ranbaxy Laboratories and Nippon Life’s buying into the Reliance Anil Dhirubhai Ambani Group are not isolated instances of Japanese firms’ growing business interest in India Inc. After automobiles, pharma and insurance, the concentrated strategy of Japanese firms is to expand in Indiain areas like insurance, retail, advertising, auto parts, banking, cables, chemicals and logistics, among others. Experts said that several more such moves are in the pipeline. “Around three dozen M&A deals are currently under consideration involving Indian and Japanese firms representing diverse sectors. With time, more announcements of Japanese investments in Indiawill come to the fore,” said a senior partner at a leading consultancy firm. These business areas may include films, animation, graphics, fertilisers and food processing, which are far removed from the traditional investment destination of Japanese firms like automotive (Suzuki and Honda) or electronics (Panasonic and Canon). (For details log on to : http://www.financialexpress.com/news/after-auto-electronics-&-pharma-now-japanese-cos-taking-to-retail-&-finance/936671/)
INDIA TO SEE MASSIVE COAL SHORTAGE AFFECTING POWER PLANTS SOON
NEW DELHI: With most parts of Indiareeling under a power crisis, the situation is all set to worsen after reports have emerged that 30 out of India’s 95 thermal power plants have registered alarmingly low levels of coal. As per the data available with the power ministry’s advisory wing, Central Electricity Authority (CEA), of the 30 power stations that produce 26,320 mega-watt (mw) of power, 25 of them have coal stocks that can potentially last for only 4 days. Of the 25 power stations, five are from National Thermal Power Corp (NTPC) – in Delhi(Badarpur), Uttar Pradesh (Dadri and Unchahar), Andhra Pradesh (Simadhari), Bihar(Kahalgaon). A senior power ministry official has been quoted as saying, “Any sudden disruption in coal supplies can affect power availability in a big way.” Against the typical requirement of 15-20 days of coal stocks, 30 power plants with a total capacity of 26,320 mw are at a critical level with less than 7 days of coal and out of these 25 plants with a capacity of over 21,000 mw have less than 4 days of stocks. (For details log on to : http://news.oneindia.in/2012/04/13/ind-to-see-massive-coal-shortage-affecting-power-plants.html)
IIP DATA REVISION BAFFLING, GOVT TO EXAMINE, SAYS FM
NEW DELHI: Baffled by sharp downward revision in industrial output numbers, finance minister Pranab Mukherjee has asked his officers to look into the statistical blunder and take corrective steps to prevent its recurrence. Industrial output, which grew at 4.1% in February was revised to 1.1% from 6.8% for January, due to discrepancy in data pertaining to consumer non-durable. The revision came just days ahead of the Reserve Bank of India’s scheduled review of the monetary policy next Tuesday. Apart from inflation, industrial expansion is a key statistics for the central bank to decide its monetary policy. With IIP expansion losing steam, RBI is now expected to cut its lending rate for banks by 25 basis points, for the first time in 3 years. (For details log on to : http://www.financialexpress.com/news/iip-data-revision-baffling-govt-to-examine-says-fm/936655/)
VENTURE CAPITAL FUNDING IN SOLAR SECTOR SLOWS IN FIRST QUARTER
NEW DELHI: Venture capital (VC) funding in the solar sector was off to a slow start globally in the first quarter of this year. VC funding for the quarter stood at $329 million, from 34 deals, the lowest since the fourth quarter of 2010, says a report on funding and merger and acquisition activity for the sector in the first quarter of this year. The report has been released by Mercom Capital Group LLC, a global clean energy communications and consulting firm. “While VC interest in the solar sector remains strong, the appetite for risk appears to be lower as the average VC funding amount in first quarter was $10 million, compared with $18 million in 2011,” said Mr Raj Prabhu, Managing Partner, Mercom Capital Group. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3312432.ece)
PANEL ON ILLEGAL MINING JUSTICE MB SHAH COMMITTEE DRAWS POOR RESPONSE IN HEARING
RANCHI: The Justice MB Shah Committee, appointed by the Central Government to probe illegal mining of iron ore and manganese across the country met with a poor response in Ranchi, on the first day of the two-day public hearing. Jharkhand, accounts for a fourth of the country’s iron ore. The few journalists covering the event outnumbered the public, and the former judge had to beseech the few attendees to come forward to hear the complaints. The state’s senior mines official pointed out that the procedures for public hearings of advertising in local dailies had been carried out. “It’s probably a reflection of public interest, ” said an senior official in attendance. “We have suggested that all conditions imposed on a lessee, the areas, and production limits must be uploaded on the net by states. It will then be for you, informed people to report any irregularities, or defiance of these conditions,” Justice Shah told journalists later. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/panel-on-illegal-mining-justice-mb-shah-committee-draws-poor-response-in-hearing/articleshow/12656484.cms)
OIL MINISTRY AGAINST RIL GAS PRICE HIKE
NEW DELHI: The ministry of petroleum and natural gas has opposed a proposal of Reliance Industries Ltd (RIL) for an increase in the price of gas, saying that would lead to an additional burden of $8 billion on the exchequer. The petroleum ministry recently communicated its view to the law ministry, from which it is seeking legal opinion on the revision proposal. RIL had in January asked for a price revision in line with the present international crude oil and gas prices, though the current price of $4.20 is valid till April 2014. In February, an Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee had directed the petroleum ministry to seek law ministry’s advice and suggest an appropriate regulatory authority to aid the group. In its communication to the law ministry, the petroleum ministry has strongly recommended there are neither legal nor financial justification for a revision in gas prices at this juncture. It has argued that huge financial implications of such an upward revision would hit the country’s fiscal balance. (For details log on to : http://www.business-standard.com/india/news/oil-ministry-against-ril-gas-price-hike/471326/)
INFOSYS GUIDANCE STUMPS STREET
BANGALORE/MUMBAI: Infosys Technologies’ net profit for the quarter ended March 31, 2012, rose a healthy 27.4 per cent over that in the corresponding period the previous year, but the sting was in the tail. India’s second-largest software services exporter disappointed investors with a weaker-than-expected revenue growth outlook for 2012-13, sending its shares plunging 12.6 per cent in its biggest single-day fall in nine years. The tumble wiped off Rs 15,000 crore from the company’s market value. The results were announced before the market opened, and the stock — once considered a sector trend-setter — slipped eight per cent in opening moves, to Rs 2,518. A combined 10.93 million shares changed hands on the Bombay Stock Exchange and National Stock Exchange. (For details log on to : http://www.business-standard.com/india/news/infosys-guidance-stumps-street/471327/)
AIR INDIA STAFF TO DECIDE THE FATE OF CABINET PLAN
NEW DELHI/MUMBAI: Air India’s plan to shift around 19,000 of its employees to its ground handling (GH) and engineering subsidiaries hinges on the decision of its employee unions, meeting on Monday to take a decision on moving to new subsidiaries. A large section of the staff is willing to go on deputation, but is against taking transfer to a subsidiary. “We want employee interests to be protected. We have our own wage agreements, salary conditions, travel passage and medical facilities and want all that to be protected,” a member of the AI Employees Union said. The engineers union has similar views. “We will not take a transfer,” a member of the AI Aircraft Engineers Association said. The seven unions meeting on Monday are the Indian Pilots Guild, All India Service Engineers Association, AI Aircraft Engineers Association, AI Engineers Association, AI Employees Union, Air Corporation Employees Unionand AI Officers Association. (For details log on to : http://www.business-standard.com/india/news/air-india-staff-to-decidefatecabinet-plan/471295/)
PHARMA EXPORTS GREW 20% IN APRIL-OCT 2011
HYDERABAD: Pharmaceutical exports in the first seven-month period between April and October, 2011, posted a 20 per cent growth to Rs 31,467 crore as compared with Rs 26,174 crore in the corresponding period previous year. This comes on the back of a 22.34 per cent increase in exports to the top 25 destinations in the world during the period from 15.05 registered in the corresponding period previous year, according to the Pharmaceutical Export Promotion Council (Pharmexcil). Exports to these 25 countries stood at Rs 20,667.92 crore as against Rs 16,893.97 crore in the previous year. The European Union (EU), which is the second largest importer of Indian pharma products after North America, posted a 30 per cent growth to $1,347 million while exports to North Americaand African regions stood at $1,732 million (18 per cent) and $1,1178 million respectively, it said. (For details log on to : http://www.business-standard.com/india/news/pharma-exports-grew-20-in-april-oct-2011/471236/)
VODAFONE MD GETS ED NOTICE OVER MONEY LAUNDERING
NEW DELHI: Vodafone Indiahas been asked to defend itself from a money laundering charge by the government, even as another court battle is on with the finance ministry over its $11.2-billion acquisition of Hutchison’s stake in Hutch-Essar in 2007. The Enforcement Directorate (ED) has served a notice on the company’s Indiamanaging director Marten Pieters under the provisions of the Prevention of Money Laundering Act, 2002, to either appear in person or through an authorised representative on Tuesday. The notice has been sent under Section 50 of the Act that gives the ED the powers to act as a court. It was sent to the company on March 27, signed by assistant director Satyendra Singh. (For details log on to : http://www.financialexpress.com/news/vodafone-md-gets-ed-notice-over-money-laundering/936669/)
IRON ORE EXPORTS MAY FALL TO 50 MT IN 2012-13: FIMI
NEW DELHI: India’s iron ore exports are likely to decline to 50 million tonne (mt) in 2012-13, miners’ body Fimi said on Friday. Exports are likely to be hit by high export duty, railway freight charges and mining ban in Karnataka, it added. For the just-concluded fiscal, exports are estimated at about 60 mt, a decline of about 40% over 2010-11. “While Karnataka ban has taken its toll, hike in duty and railway freight have further affected the exports adversely. The trend will continue and exports may not cross 50 mt- mark for 2012-13,” Federation of Indian Mineral Industries (Fimi) R K Sharma said. Expressing concerns over declining trend, he said the export figures were estimated at 60 mt for 2011-12 compared to 97.64 mt in 2010-11. (For details log on to : http://www.financialexpress.com/news/iron-ore-exports-may-fall-to-50-mt-in-201213-fimi/936503/)