SEBI to simplify share inheritance rules

The Securities and Exchange Board of India (Sebi) will shortly modify some rules pertaining to inheritance of shares, based on the recommendations of the committee on ‘Transmission of Shares’, a person involved with the development told ET.

The move is likely to benefit the legal heirs awaiting inheritance of shares belonging to deceased relatives who neither made a will nor filed the mandatory nomination with depositories.

Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started

The new guidelines will pave the way for quick transmission of shares, especially physical shares. Brokers said investors residing away from urban centres have been facing maximum difficulties with respect to share inheritances.

Transmission means devolution of title to shares otherwise than by transfer, for example, devolution by death, succession, inheritance, bankruptcy, marriage, etc. Transmission is different from ‘transfer’; in transmission a person acquires an interest in the property by operation of law such as right of inheritance or succession, whereas transfer is effected by an act of the parties.

According to some people tracking the committee’s work, Sebi took about 16 months to move ahead on the report despite unanimity among committee members on addressing the difficulties in transmission of physical and dematerialised securities.

“In case of physical shares, companies would have to fix a threshold limit of 200 shares or Rs 1 lakh, whichever is higher, for transmission of shares after submitting the standardised documents,” said a person on the committee. “The limit will be the basic minimum limit to be adhered to by all listed companies.

Companies would require a deed of indemnity, an affidavit and a NoC in case there are other legal heirs. Those companies that have a higher threshold can continue with that,” he said. When the title to shares is passed by an operation of law, the beneficiary need not perform additional formalities.

Companies have different documentary compliances for the legal heirs of the deceased security holder. In many cases, this is tedious and discourages investors from following up on small amounts.

Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started

For instance, in case of a leading bank, a local manager submits a verification report on whether the legal heir possesses a succession certificate or the probated will. Market participants familiar with the development point to the need for updating the nomination of lakhs of investors.

posted under - SEBI, SEBI updates, indices, indian markets updates, indian share markets, indian stocks, bse updates, nse updates

Fund raising through IPO's hits the bottom - 2008

India Inc's capital mobilisation through initial public offering has hit rock bottom as the total amount raised via this route in BSE 2008 aggregated to $ 4,509 million, the lowest in the last three years, says a report.

Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started

Capital mobilisation through IPOs witnessed a fall both in terms of volume and value as only 44 transactions worth $ 4508.85 million were announced, global consultancy firm Grant Thornton said. Way back in 2005, however, there were as many as 64 such deals with an announced value of $ 5521.50, it added.

The total fund mopped up through IPO in 2008 was $ 4.51 billion, 18.34 per cent lower than the amount raised in 2005.Compared with 2007, fund raising has dipped by 54.55 per cent. Fund raising activity through IPO reached its peak in 2007, when a whopping $ 9920.65 million was garnered.

Though there was a fall in both value as well as volume terms but the year 2008 saw several large IPOs across the board including Reliance Power's $ 2.56 billion issue - the largest public issue of 2008, Grant Thornton added.

Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started

The other big IPOs in the year came from Rural Electrification Corp, IRB infrastructure developers and KSK energy ventures each raising $ 410 million, $ 236 million and $ 208 million respectively. The amount of money raised in 2008 was $ 4.51 billion, compared with $ 9.92 billion and $ 5.89 billion in 2007 and 2006 respectively.

posted under - IPO updates, BSE updates, indian markets, indian inc updates, bse stocks, nse stocks, IPO in India, IPO futures

BSE | NSE | DJIA | NASDAQ | Closing rates february 2009

This post includes closing rates of major stock markets of india and world such as Bombay Stock Exchange ( BSE) , National Stock Exchange ( NIFTY), Dow Jones Industrial Average(DJIA), Standard and Poor (S & P), Nasdaq Composite Index (NSDX) , closing rates of these most important indices are very important for regular investor's as they show the trends of stock exchanges and world economic trends.

The post provides closing rates details of Dow Jones Industrial Average(DJIA), NASDAQ, BSE (Bombay Stock Exchange), NSE (National Stock Exchange) on per day basis. You can check live DJIA ticker for latest Dow Jones Industrial Average Updates.

Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-Rs v/s US$ latest updates
-World's Strongest economies list
-Trouble in Indian Forex
-Indian Agricultural Updates
-US Economic recession-how it started

By the end of this year i predict that BSE would be between 13ooo to 15000 ( it may be different scenario depending on US economic developments)

Note - All the closing rates of BSE, NSE, NASDAQ, DOW JONES INDUSTRIAL AVERAGE(DJIA), Standard and Poor(S & P) are according to Indian Standard time . to see closing rates of DJIA, NASDAQ, Standard and Poor ( S & P) according to American Standard time click here.


6-2-2009 | FRIDAY | Closing Rates | Comparison with previous day close

BSE (SENSEX) | 9300.86 | Up^209.98
NSE ( NIFTY) | 2843.10 | Up^63.05
DJIA ( DOW JONES) | 8063.07 | Up^106.41
NASDAQ | 1546.24 | Up^31.19


4-2-2009 | WEDNESDAY | Closing Rates | Comparison with previous day close

BSE (SENSEX) | 9201.85 | Up^52.55
NSE ( NIFTY) | 2803.05 | Up^19.15
DJIA ( DOW JONES) | 8078.36 | Up^141.53
NASDAQ | 1516.30 | Up^21.87


2-2-2009 | MONDAY | Closing Rates | Comparison with previous day close

BSE (SENSEX) | 9066.70 | Down(-357.54)
NSE ( NIFTY) | 2766.65 | Down(-108.15)
DJIA ( DOW JONES) | 8000.86 | Down(-148.15)
NASDAQ | 1476.42 | Down(-31.42)

SEBI increases upfront margin on warrants to 25%

The Securities and Exchange Board of India has decided to increase the upfront margin to be paid by allottees of warrants to 25 per cent from 10 per cent earlier.

The markets regulator also decided to relax the pricing norms regarding Satyam Computer, after its board examined a request for exemption of certain provisions of takeover regulation. This was done within the general context.

Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started

SEBI has also shortened the timeframe for announcing the price band for an initial public offering to just two days against the present requirement of two weeks.

The timeline for announcement of bonus share issue has also been reduced to 15 days from 30 days earlier. Further, a company declaring the bonus issue would not require approval from the shareholders.

On dividend, SEBI said, listed companies will have to announce dividend on per share basis and not on percentage of face value of the share, as the face value may differ and mislead investors.

posted under - SEBI updates, BSE updates, BSE stocks, SEBI, SEBI news
source - www.economictimes.com