Skip to main content

Sebi exempts govt from open offer in 3 PSBs

By
The Securities and Exchange Board of India ( Sebi) on Tuesday exempted the Centre from the takeover code obligations for its investment in Dena Bank, Bank of India and Corporation Bank.
The Central government plans to infuse Rs.407 crore in Dena Bank, Rs.2,455 crore in Bank of India and Rs.857 crore in Corporation Bank. The infusion of capital, part of the government’s ‘Indradhanush’ initiative, would have triggered an open offer as the government’s stake in these banks would have increased by more than five per cent.
In Dena Bank, the government’s stake is likely to increase 5.25 per cent - from 59.75 per cent to 65 per cent. In Bank of India, the government’s shareholding might raise from 64.43 per cent to 70.13 cent - an increase of 5.7 per cent. For Corporation Bank, the stake increase could be 5.78 per cent to 69.11 per cent.
According to Sebi norms, when entities that hold 25 per cent or more equity in a company acquire an additional five per cent or more, they have to make an open offer to the public shareholders of the company. In this case, Sebi has given the exemption on the ground this capital infusion is part of the government’s ‘Indradhanush’ plan and would help the banks meet the growing requirement of funds for expanding the business and to comply with Basel- III requirements on capital adequacy.
“Capital adequacy of the bank is a requirement to protect its small customers as well as the public,” said Sebi in the order.
Registration open for commodity brokers Sebi said commodity- specific businesses would also be allowed to become members of a commodity exchange.
After it had absorbed the erstwhile Forward Markets Commissions functions, the market was awaiting clarity on whether trading and business houses were eligible to apply for Sebi registration.
In a set of frequently asked questions it issued on Tuesday, Sebi said, “ A member of a commodity derivatives exchange can do business in goods related to the underlying ( product) and also do incidental to or consequential to trades in commodity derivatives.”
Business Standard, New Delhi, 30th Sept. 2015

Comments

Post a Comment

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

GST collection for November rises by 8.5% to Rs.1.82 trillion

By
  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...
Post a Comment
Read more