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.

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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

BSE - Direct Market Access (DMA)

Securities & Exchange Board of India (SEBI) vide its circular no.MRD/DoP/SE/Cir-7/2008 dated April 03, 2008 as per Annexure I, has approved and given necessary guidelines for providing Direct Market Access (DMA).

Direct Market Access (DMA) facility through various connectivity modes permits the trading members of BSE to provide direct trading terminals to their DMA clients.

As quoted in the SEBI circular 'Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange trading system through the broker’s infrastructure without manual intervention by the broker. Some of the advantages offered by DMA are direct control of clients over orders, faster execution of client orders, reduced risk of errors associated with manual order entry, greater transparency, increased liquidity, lower impact costs for large orders, better audit trails and better use of hedging and arbitrage opportunities through the use of decision support tools / algorithms for trading.'

For compliance of the said circular, the guidelines are as follows:

Eligibility:

As per the SEBI Circular, DMA facility initially is being restricted to institutional clients only.

Operational Instructions

* Application for permission:

Trading Members of BSE desirous of facilitating DMA to their clients are required to make an application to BSE in the format appended as Annexure II.

* Member-client agreement:


Members will have to execute an agreement with clients who are availing the DMA facility. Members shall ensure that the agreement entered into with their clients for DMA facility should not be less stringent/contrary to the conditions prescribed in the model agreement as prescribed by BSE. Click on Annexure III to Download Model Agreement.

* Prerequisites to granting of permission for Direct Market Access (DMA):

BSE shall grant permission to members for Direct Market Access (DMA) on a case-to-case basis.

BSE shall provide a test environment during a pre-specified time, which shall be intimated shortly. The trading Members are required to test their software using the said test environment.

On satisfactory completion of testing on the test environment, the Members are required to give a demonstration to BSE of their Direct Market Access (DMA) facility.

The software and systems proposed for DMA shall be duly certified by BSE-empanelled System Auditor before grant of permission.

Only on fulfillment of the minimum requirements mentioned in the SEBI / BSE Circulars, permission for commencing Direct Market Access (DMA) would be granted to the Trading Member.

Pursuant to the Trading Member's activation on the DMA facility:

Trading members shall provide BSE with details of user-ids activated for DMA on a periodic basis as per format which shall be intimated separately.

Members at their end are required to comply fully with the operational specifications and risk management mentioned in the SEBI circular. Also, Members must be compliant with guidelines issued by BSE for DMA, from time to time.

For further clarifications, contact :
Ojas Shah : Board No: 22721233 /34 ; Extn: 8504.
Bidur Bhattacharjee : Dir: 2272 2071 ; Extn: 8210
Email : bdmhelp@bseindia.com


Below are some of the documents issued by BSE pertaining to DMA and notified to members from time to time.

	Click below to Download
SEBI Circular	Annexure I.doc
DMA Application Format	Annexure II.doc
DMA Model Agreement	Annexure III.doc
Info in Order message	Annexure IV.doc

posted under - BSE stocks , BSE updates, BSE DMA, Direct market access, BSE live, BSE updates
source - www.bseindia.com

BSE to decide on rise in stakes of Deutsche, Singapore SEs

Bombay Stock Exchange will decide on letting Deutsche bourse and Singapore Stock Exchange increase their stake after the provision to the effect is made in the regulations, official sources said on Saturday.Currently, these two exchanges hold five per cent equity each in the BSE.

Sebi recently announced raising the equity holding limit in stock exchanges for certain entities like banks, insurance companies, depositories and stock exchanges from five per cent to 15 per cent.

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Jagdish Capoor, non-executive chairman of BSE said the exchange will decide on increased stake for the two exchanges after the required provision is made (in the regulations).

When asked about the issues discussed at the meeting, he said, "there is nothing in particular for public domain. We discussed usual business issues."

posted under - BSE updates, BSE stocks, bombay stock exchange, indian markets updates, BSE, BSE live, BSE rates
source - www.economictimes.com

Top Companies lose whopping Re 72000 cr in Mkt capitalization

The country's top 10 companies have witnessed an erosion of about Rs 72,000 crore from their market capitalisation in a week, with Reliance Industries' valuation again dipping below the Rs 2,00,000-crore mark.

However IT major's Infosys, Wipro, TCS increased their value of market capitalization because may be investor's have already started thinking that theses three IT elephants would eat up Satyam's client in near future and so they are optimistic on stocks of TCS, Infy, Wipro.My Advice is to bet on tech outsourcing companies for a minimum of 1year time and see the returns you get for sure after 1 year time stamp is over.

During the week, the market capitalisation of top 10 firms -- comprising five each from public and private sectors -- witnessed an erosion by Rs 71,793 crore in their valuation to Rs 10,20,313 crore.

The market capitalisation of the 10 companies as on January 2 was at Rs 10,92,106 crore. During the week, the Mukesh Ambani-led firm's valuation dipped to Rs 1,81,152 crore, an erosion of Rs 20,908 crore during the week's time. The corporate behemoth had a market capitalisation of Rs 2,02,060 crore in the week ago period.

The company also witnessed a 10 per cent plunge in its share price during the week to settle at Rs 1,151.05 on Friday. The shuffling in the premier category of these 10 coveted companies saw state-run NMDC falling out of it after losing Rs 16,711.21 crore in a week, while BHEL taking its place at the seventh spot. Also Infosys climbed up to the eighth spot from 10th last week. Hindusthan Unilever entered the coveted club at the 10th place.

posted under - India's top companies, BSE updates, mkt capitalization of RIL, indian markets updates, Satyam fraud updates, Indian IT sector updates, investing in india, indian markets trends.

Indian Markets updates | BSE Down | Nifty struggling to cross 2900 mark

National Stock Exchange’s Nifty met a stiff resistance near 2900 levels. It ended at 2868.40, down 52 points or 1.78 per cent. The broader index hit an intra-day low of 2810.25 and high of 2929.85. Bombay Stock Exchange’s Sensex closed at 9390.13, down 195.75 points or 2.05 per cent. It touched a low of 9,250.82 and high of 9630.40 in day’s trade.

BSE Midcap Index ended 2.31 per cent lower and BSE Smallcap Index declined 2.79 per cent.Satyam Computers (-42.68%), Reliance Communications (-9.44%), Tata Steel (-9.31%), Sterlite Industries (-8.86%) and Ranbaxy Laboratories (-8.32%) were the top Sensex losers.

TCS (6.81%), Hindustan Unilever (4.81%), NTPC (3.68%), Maruti Suzuki (3.20%) and Mahindra & Mahindra (2.78%) were amongst the Sensex gainers.Market breadth was negative on the BSE with 1873 losers and 584 gainers.on 8/january/ 2009 closing

B. Ramalinga Raju Letter - Unedited

To the Board of Directors

Satyam Computers Services Ltd.

From B. Ramalinga Raju
Chairman, Satyam Computer Servcies Ltd

Dear Board Members,

It is with deep regret, and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:

1. The balance sheet carries as of September 30, 2008

a) Inflated (non-existent) cash and bank balance of Rs 5,040 crore (as against Rs 5361 crore refglected in the books)

b) An accured interest of Rs 376 crore which is non-existent

c) An understated liability of Rs 1,230 crore on account of funds arranged by me

d) An over stated debtor position of Rs 490 crore (as against Rs 2651 reflected in the books)

Also Read :
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2. For the September quarter (Q2) we reported a revenue of Rs 2,700 crore and an operating margin of Rs 649 crore (24 per cent of revenues) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of revenue). This has resulted in artificial cash and bank balances going up by Rs 588 crore in Q2 alone.


The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance). What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of the company operations grew significantly (annualized revenue run rate of Rs 11,276 crore in the September quarter, 2008 and official reserves of Rs 8.392 crore). The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify higher level of operations – thereby significantly increasing the costs.

Every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.

The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. Maytas’ investors were convinced that this is a good divestment opportunity and a strategic fit. Once Satyam’s problem was solved, it was hoped that Maytas payments can be delayed. But that was not to be. What followed in the last several days is common knowledge.

I would like the board to know:


1. That neither myself, not the Managing Director(including our spouses) sold any shares in the last eight years-excepting for a small proportion declared and sold for philanthropic purposes.

2. That in the last two years a net amount of Rs 1,230 crore was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoter shares and raising funds from know sources by giving all kinds of assurances (Statement enclosed, only to the members of the board). Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged share by the lenders on account of margin triggers.

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-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


3. That neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefitted in financial terms on account of the inflated results.

4. None of the board members, past or present, had any knowledge of the situation in which the company is placed. Even business leaders and senior executives in the company, such as Ram Mynampati, Subu D T R Anand, Kesab Panda, Virender Agarwal, A S Murthy, Hari T, S V Krishnan, Vijay Prasad, Manish Mehta, Murali V, Sriram Papani, Kiran Kavale, Joe Lagioia. Ravindra Penu Metsa, Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts. None of my or managing directors immediate or extended family members has any ideas about these issues.

Having put the facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to
recommend the following steps:

1) A task force has been formed in the last few days to address the situation arising out of the failed Maytas acquisition attempt. This consists of some of the most accomplished leaders of Satyam: Subu D, T R Anand, Keshab Panda and Virender Aggarwal, representing business functions, and A.S.Murthy, Hari T and Murali V representing support functions. I suggest that Ram Mynampati be made the Chairman of this task force to immediately address some of the operational matters on hand. Ram can also act as an interim CEO reporting to the board.

2) Merrill Lynch can be entrusted with the task of quickly exploring some merger opportunities.

3) You may have a ‘restatement of accounts’ prepared by auditors in light of the facts that I have placed before you.

I have promoted and have been associated with Satyam for well over twenty years now. I have seen it grow from few people to 53,000 people, with 185 Fortune 500 companies as customers and operations in 66 countries. Satyam has an excellent leadership and competency base at all levels. I sincerely apologize to all Satyamites and stakeholders who have made Satyam a special organization, for the current situation. I am confident they will stand by the company in this hour of crisis.
in light of the above, I fervently appeal to the board to hold together to take some important steps. Mt T R Prasad is well placed to mobalize support from the government at this crucial time. With the hope that members of the Task Force and the financila advisor, Merrill Lynch (now Bank of America) will stand by the company at this crucial hour, I am marking copies of this statement to them as well.

Also Read :
-Market response after Satyam Fraud
-SEBI to probe Satyam market Operations
-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


Under the circumustances, I am tendering my resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My contribution is just to ensure enhancement of the board over the next several days or as early as possible.

I am now prepared to subject myself to the laws of the land and fact the consequences thereof.

(B. Ramalinga Raju)

Copied marked to:
1) SEBI Chairman
2) Stock Exchanges

posted under - B. Ramalinga Raju Letter, raju's letter, satyam updates, SEBI on Satyam, Satyam Computer services, Satyam fraud, satyam fraud updates, Satyam Computer services updates,