BSE to halt trading in derivatives of seven firms

The companies are Dr Reddy's Laboratories, Ambuja Cements, Ashok Leyland, Tata Chemicals, Indian Oil Corporation, Canara Bank and Petronet LNG Ltd, the BSE said in a circular.

"Derivatives contracts for the far month, ie., September 2009 and onwards would not be introduced upon expiry of June 2009 contracts ie on June 25, 2009," the circular said.

Existing contract months - July and August - would, however, continue to trade till they expire on the last Thursday of their respective expiry months, it added.

SEBI removes entry load on MF schemes

SEBI's new guidelines stipulates that investors directly make payments to distributors instead of MF companies deducting it from the investment made in any scheme.

"There shall be no entry load for the schemes, existing or new, of a Mutual Fund. The upfront commission to distributors shall be paid by the investor to the distributor directly," SEBI said in a statement after its board meeting.

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Further, the upfront commission to distributors shall be paid by the investor to the distributor directly, the statement said.

The equity schemes of MFs are likely to be hurt the most as they attract the most entry load among schemes.

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

India decides to launch interest rate futures

India decided to introduce exchange-traded interest rate derivatives to help corporates, banks and households guard against interest rates volatility, a move that came nine months after launching of exchange- traded currency futures.

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The derivatives would be based on the 10-year government bond yields, according to market regulator Securities and Exchange Board of India (SEBI) and banking watchdog Reserve Bank of India (RBI).

"Eligible exchanges desirous of offering interest rate futures may apply to SEBI after fulfilling the conditions," SEBI said in a release.

The conditions are given in a report by an RBI-SEBI joint panel and are approved by both the regulators.

The report said those having a networth of Rs one crore would become trading members and those with Rs 10 crore networth would be clearing members in interest rate futures.

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The contract would be settled by physical delivery, the panel said. The move will also help to develop the debt markets.

courtesy - economictimes

Indian shares on US bourses gain over $3 bn

Indian stocks trading on American bourses gained more than USD 3 billion in a week, with private sector lender HDFC Bank accounting half of it.

For the week ended June 12, Indian entities listed on the New York Stock Exchange and Nasdaq added USD 3.21 billion to their market capitalisation, with the valuation of HDFC Bank alone climbing USD 1.16 billion.

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Among the 16 companies trading as American Depository Receipts (ADRs), another major gainer was copper producer Sterlite Industries whose market value shot up by USD 850 million.

Apart from HDFC Bank and Sterlite Industries, IT bellwether Infosys Technologies and scam-hit Satyam Computer Services too witnessed a significant rise in their respective market capitalisations.

While the valuation of Infosys grew by USD 619 million , that of Satyam Computer rose by USD 361 million.

Shares of Satyam Computer climbed higher on the NYSE last week after the entity reported a standalone profit of Rs 181 crore for the October-December quarter.

courtesy - economictimes

SENSEX closes at 15,127 pts | NIFTY at 4550.95 both in green

(9/6/09 BSE | NSE closing) - Indian Market began trade lower in line with Asian markets but bullish sentiments prevailed and traders rushed in to buy stocks which were beaten down Monday. Comments from the Prime Minister Manmohan Singh that India can achieve growth rate of 8-9% on its own also boosted sentiments. Realty, IT and metals were the top performing sectors in today’s trade on high volumes. It can be said that speculators made huge bucks in two days of trading.

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Bombay Stock Exchange’s Sensex ended at 15,127, up 461.08 points or 3.14 per cent. The index touched an intra-day high of 15161.22 and low of 14526.69.

BSE Midcap Index was up 3.15 per cent and BSE Smallcap Index gained 1.67 per cent

National Stock Exchange’s Nifty closed at 4550.95, up 121.05 points or 2.73 per cent. The broader index hit a high of 4562.45 and low of 4365.10.

Biggest Sensex gainers were DLF (10.07%), Jaiprakash Associates (8.18%), Reliance Communications (7.37%), Larsen & Toubro (6.39%) and Ranbaxy Laboratories (6.37%).

BSE Sensex falls 437 pts | Nifty down 157 pts

(8/6/09 BSE | NSE Closing) - The 30 share SENSEX fell by a whopping 437 pts as investors sold their shares to make profits ending a 13 week bullish run. Metal, banking and realty stocks suffered hefty losses. The fall was the third-highest after those of January 7 and March 30.

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In a similar fashion, the 50-share National Stock Exchange index Nifty dropped by 157.00 points to 4,429.90, breaking a psychological 4,600 level.



Only information technology stocks were in positive territory following a firming dollar, raising hopes of better revenue. Over 50 per cent of the country's software export revenue comes from the US markets.

Marketmen said the steep rise of 88 per cent in the market was overdone and attracted profit-selling by funds and retail investors.

The major puller to the market were heavy-weight stocks like Sterlite Industries, Reliance Industries, Tata Steel, Reliance Communications, Reliance Infra, Jaiprakash Associates, ICICI Bank and State Bank of India.

Market attracts 1 lakh new investor's

The total investor wealth, measured in terms of cumulative market capitalisation of all the listed companies, has soared to about Rs 51,00,000 crore. This represents a gain of about Rs 23,00,000 crore from the level seen in later October last year, although it is still about Rs 20,00,000 crore below the peak seen in January 2008.

A total of about 1.2 lakh new stock market investors opened their demat accounts, which is necessary to trade in equities, during the month of May, according to data available with the two depositories, National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL).

This has increased the total number of demat accounts in the country to over 1.5 crore.



The market experts believe that the inflow of a large number of new investors into the market could be attributed the sharp surge in the recent months as well as expectations for revival of the IPO market with some fundamentally-sound public issues by the government-run companies.