Share rule changes - approved by SEBI

The Securities and Exchange Board of India (SEBI) approved the "anchor investor" concept under which an investor can subscribe to up to 30 percent of the quota for institutional investors in an initial public offering, said Chairman C.B.Bhave.

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"This is in response to (the) requests of issuers that there was a need for investors with prior commitment who will enhance their ability to sell the issue and bring more confidence," Bhave told reporters after a board meeting.

Under the new rules, an anchor investor would pay 25 percent of the total investment at the time of applying for the initial public offering, and the balance within two days of the closure of the issue.

Such anchor investors would have to adhere to a lock-in period of one month from the date of the share allotment.

Earlier this year, the regulator amended rules for declaring the price band of initial public issues and changed its rules on mandatory open offers in a drive to make the capital markets more investor friendly.

Bhave said SEBI had also decided to rationalise disclosure in the rights issues offer documents as information relating to the listed company offering such an issue was already available in public domain for investors.

In a rights issue, a company issues new shares to existing shareholders. Analysts say the upturn in the stock market is expected to see many firms rushing to tap this route to raise finances for either cutting debt or to fund expansion plans.

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"The revised disclosure would make the process of rights issue faster for companies and also reduce overall costs for such issues," said a SEBI statement.

The market regulator also said entry load for investments in mutual funds would be removed, which is expected to result in increased participation. It would also cut registration fees for market intermediaries by about 50 percent.

courtesy - economictimes

Indian Stock Markets eroded nearly rs 20 trillion in fiscal year 2008-09

Investors witnessed an erosion of close to Rs 20 trillion from their wealth in the financial year 2008-09, with the Dalal Street crumbling
under the pressure of the global economic downturn, while Reliance Industries emerged as the biggest loser in the period.

The combined market valuation of all the listed companies in the country dropped to Rs 30,86,075 crore on the last day of this fiscal as against Rs 49,72,953.37 crore on March 31, 2008, leading to a loss of over Rs 18,86,000 crore during the period.

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The country's most valued firm corporate behemoth ,Reliance Industries, saw an erosion of close to Rs 89,460 crore from its market valuation during the fiscal ended March 31, 2009.

Interestingly, the Bombay Stock Exchange's benchmark index Sensex, which accounts for around 48 per cent of the market capitalisation of all the listed companies, has suffered a loss of nearly Rs 10,00,000 crore for the fiscal ending March 31, 2009.

Besides, in dollar terms the total loss of market valuation comes out be significantly more as the Rupee has depreciated from Rs 40.02 per dollar on March 31, 2008 to about Rs 50.86 at present. The loss calculated in terms of the respective conversion rates at the two particular dates comes out to be as much as USD 636 billion.

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Further, Foreign Institutional Investors have also played spoilsport for Indian equity markets as they have pulled out a whopping Rs 50,000 crore in FY' 2008-09 due to the liquidity crunch back home.

However, analysts predict elections are going to be the deciding factor for the way the domestic stock market would move forward in the next financial year as a stable government could prove positive for the Dalal Street.

we'll i m keeping my fingures crossed for atleast next 6 months or so.....

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