Mumbai: Capital market watchdog Securities and Exchange Board of India (SEBI) today said foreign institutional investors (FIIs) have to, by 1st October, end the practice of investing money collected from a single or few investors in stocks, as a guard against manipulation, reports PTI.
Rejecting the demand from FIIs for extension of the 1st October deadline for compliance with the new rules, SEBI chairman C B Bhave said FIIs will have to register afresh under a structure conforming to the new norms.
The new guidelines require that FIIs or each of their sub-accounts must have not less than 20 investors, except for a few entities like pension funds.
There have been concerns that a few high-networth individuals have been playing the stock market using the FII route.
The norms also require that no single investor accounts for 49% of the funds raised for investment.
"Foreign Institutional Investors (FIIs) have to comply with 1st October deadline," Mr Bhave told reporters on the sidelines of a merchant banking industry function here.
On the surge in stocks, driven by huge investment inflows from the FIIs, Mr Bhave said, "As of now we are not concerned with the trail of money into the domestic market."
He, however, said that the surge has not resulted in any trade settlement related problems and that the regulator was keeping a close watch.
Besides, on the issue of bringing down the initial public offer (IPO) listing period to seven days from current 20 days, he said that it is not a mandatory, but an observation. "Our panel is looking into the practicality of its implementation. Our panel is likely to come out with its report by November post which we will take a call."
The Emami chaps have been very, very smart after all. They get loads of free publicity. They also get the song and the babe. All, apparently, without spending a penny.
When that much-abused Dabaang track 'Munni badnaam' hit the screens (and everywhere else), most of us assumed that makers of Zandu Balm had struck an in-film promo deal with the producers of the film. And we envied them. This must be the first time in the history of Indian cinema that an in-film promo had worked like magic. Most such plugs are usually banal and very irritating. But this one was on everyone's lips. And hips. Kewl.
But before we could sit down to prepare the case-study papers, Emami (makers of the hot balm) issued a shocker. They couriered a legal notice to the film's producers, seeking damages for using their brand name without permission and accusing them of copyright infringement. Er, ummm, we went. So then the Emami chaps weren't that smart after all. Trash the bloody case-study idea, we said. They just got lucky, we said. But then, er, ummm, why were they carping? This was massive free publicity, and in some north Indian towns, sales of Zandu Balm had reportedly gone through the roofs and false ceilings. So then why not just sit back and enjoy the free publicity massage? This was like a bumper lottery winning, man!
Cut to Scene 3. Now Salman Khan & Brothers, still to recover from the heady success of the film, their heads dabaanged with adrenalin (and other interesting stuff), did not wish for their rocking party to be pooped. So they pleaded with Emami for an out-of-court settlement. We still don't know the real terms of the settlement, perhaps we'll never know (just as we'll never know how much the NDA paid off the Kandahar hijackers), but the news is that the settlement will involve the Khan khandaan bahu, the Munni babe Malaika Arora Khan, officially endorsing Zandu as the brand's raunchy new ambassador. Emami also gets rights to use the 'badnaam' song in their adverts.
So, er, umm, the Emami chaps were indeed very, very smart after all. They waited for weeks before shooting off the legal notice. They waited for weeks before the song became a rage. And then filed a notice, when the iron was steaming hot, fully aware that the success-intoxicated Khans would rather rub Zandu on their hung-over heads than lagao chakkars of the courts.
Net result: Emami gets loads of free publicity. Emami also gets the song. Emami also gets the babe. All, apparently, without spending a penny.
Yup. It's back to getting busy with case-study material.