Govt to pay commission to brokers for selling PSU IPOs

The government will pay a broker commission of 0.35% for selling shares to retail investors and 0.15% for roping in high net-worth individuals

The government today said that it will pay a commission to brokers selling public offers of State-run firms, in an attempt to woo retail investors for its ambitious disinvestment programme, reports PTI.

The government, which till now paid little or no commission to brokers, has fixed a commission of 0.35% for selling shares to retail investors and 0.15% for roping in high net-worth individuals.

“After consulting with brokers we have done the changes and the commission for brokers have been fixed at 0.35% for retail investors and 0.15% for HNIs,” disinvestment secretary Sumit Bose told reporters.

The changes have been done to attract more retail demand for the public offers, he said.

Earlier, the commission paid was included in the fees of the book-running lead managers (BRLMs). “Now the government will reimburse this commission to the BRLMs for the brokers,” he added.

The new provisions will be applicable to all the forthcoming public issues starting with State-run power producer Satluj Jal Vidyut Nigam. SJVNL’s public issue opens tomorrow.

“The new norm will be applicable to all subsequent issues, starting with SJVNL,” Mr Bose said.

The government is selling 10% of its equity in SJVNL through an initial public offering (IPO). The price band has been fixed at Rs23-Rs26 per share.

The government has set a target of Rs40,000 crore through disinvestment in the current fiscal.
 

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COMMENTS

Roopsingh

7 years ago

If the govt is really honest-it should not have paid any commission to brokers-bcos this is against ETHICS of our so called Investors ultimate protection agenda-
but the elephant has 2 types of teeth-
'Khane ke alag,dikhane ke alag''

Roopsingh Solanki

7 years ago

MERA BHARAT MAHAN-because our great Govt has 2 standards for it self and common man-
1-it abolished commision on Mutual funds for the benifit of investors-but it can pay brokerage to brokers who sells IPO's of PSU's-this just shows the gredy man's double standards.
2-its PET SEBI put a ban on ULIPS of private co's but did not touch LIC-(apne paraye ka kuch to fark hona chahiye).

Around 75% of NHAI’s completed road projects were delayed

A total of 123 projects currently under implementation have also been delayed due to problems in land acquisition, shifting of utilities, non-availability of environmental, forest and railway clearances and legal disputes

Around 75% of the projects completed by the National Highways Authority of India (NHAI) so far were delayed due to various reasons, including land acquisition problems, Parliament was informed today.

In a written reply to a question in the Rajya Sabha, minister of state for road transport and highways RPN Singh said that out of 230 projects completed by the NHAI so far, a total of 172, or 74.8% of the projects were delayed.

“A total of 123 projects currently under implementation are also delayed,” the minister said, adding that projects were mainly delayed due to problems in land acquisition, shifting of utilities, non-availability of environmental, forest and railway clearances and legal disputes.

Regarding cost overruns due to the delay in implementation of these projects, he said that the contracts, awarded on an Engineering, Procurement and Construction basis, had provisions for variation and cost escalation in case of delays beyond the control of the contractors.
 

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COMMENTS

Shadi Katyal

7 years ago

What our Minister is telling us that public should not worry fro such delays and thus poor infrastructure as we are sell covered by contracts clauses to fill the tills of everyone involved but poor public.
When contractors, Ministers,PWD and all involved can more money why shouter they not delay such projects.
Canh we findout what kind of clauses are there for such delays?

R Balakrishnan

7 years ago

Corruption. Delay means escalation and it means higher payout.

Property sales down by 25%-30% in five cities

The fourth quarter of the last fiscal has reported a dramatic downfall in real-estate sales across six cities. But, driven by speculation, Mumbai property rates are still booming

The realty industry in six cities—Mumbai Metropolitan Region, Pune, Hyderabad, National Capital Region, Bengaluru and Chennai has reported around 25%-35% decline in sales in the fourth quarter of the last fiscal which ended in March 2010 compared to the previous quarter which ended in December 2009.

In Mumbai, the scenario was the worst, as real-estate sales were almost nil during the fourth quarter of the previous fiscal. “Sales are down by 35% compared to the last quarter in Mumbai. There is a downfall in sales in almost all the six cities in the fourth quarter (of the last fiscal). This shows that inventories are again rising in all these places,” said Pankaj Kapoor, founder, Liases Foras.

The prices of properties in the western suburbs of Mumbai have dramatically increased in the last quarter. There is no logic behind this increase in price—only speculation seems to be driving the rise. Rates have gone up by 25%-30%, keeping buyers away from the market.

Earlier, properties away from south Mumbai used to quote at a lesser price. But now, a property at Andheri and Kandivali, both Mumbai suburbs and separated by a distance of almost 13 km (Andheri is closer to south Mumbai) are quoting almost the same property prices. A two-bedroom hall kitchen (BHK) of 1,080 sq ft in Thakur Village, Kandivali (East) is priced at Rs135,00,000 while a two-BHK of 1,097 sq ft is tagged at Rs140,00,000 at Andheri (East).

In the third quarter (Q3 FY10) property prices in Kandivali ranged between Rs7,000 per sq ft-Rs9,000 per sq ft but now the current price in this area is Rs12,000 per sq ft. Same is the scenario at Andheri, property which was tagged at Rs10,000 per sq ft in the last quarter is now available for Rs12,000 per sq ft-Rs14,000 per sq ft.
 

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COMMENTS

VIVEK

7 years ago

ITs because of black money in real estate...now people will forget IPL scam and politician as always will enjoy.. no anti money laundering law in real estate.. farmers are doing suicide.. 100 million people going below poverty line but govt doing nothing. All real estate companies should be raided by IT

arun

7 years ago

Hey all this journalist talk is fine - last ten yts they have been saying that prices in Mumbai will crash -bt they never have - i dont consider 10% as carsh

REPLY

FK

In Reply to arun 6 years ago

my dear friend if it rise because of price rise justify you statement by the fact of price level of April 2009 level and now, would you justify this if "average price of residential property in the Mumbai works out to Rs 7,747 per sq ft" is avg income of mumabaikar allows to afford this... so one way or other way this is formation of bubble.. One or another it will burst. Unfortunatly only ppl will suffer who bought at last leg. so think ur risk appetite before buying a home. its black which no need to measure risk all cheated from ppl pockets... and thanks to congress govt. which just followed every steps of United States

Rambabu Shastri

7 years ago

In Delhi, buffaloes roam the middle of the streets... as they are abandoned by their owners. In Mumbai, it is people, as the footpaths are taken over by hawkers and encroachments.

Rambabu Shastri

7 years ago

Oh... by the way, why put so much construction into Mumbai. Govt. can easily tell these builders to do so in rural areas. Mumbai is going to suffer very badly. Every nook and corner is being over-exploited to create buildings. There is no sight of any infrastructural improvements. Bi(jli)Pa(ni)Sa(dak) could become an election mantra in South Mumbai too. As it is, no light, no water, no road. Whatever there is of a road is full of hawkers, cars and people walk on roads in place of footpath.

Rambabu Shastri

7 years ago

Builders greed hath no bounds. Every glimmer of milking people of their money for housing is taken as opportunity to increase prices. The way MCHI and the Maharashtra Govt. have signed a deal for 5 lac homes for the needy just stinks. Also, the builders may not last to complete those homes in 5 yrs. And, the Govt would do well not to back builders as any bailouts are misused.

Govind Gadiyar

7 years ago

Dear All,

I have been around Thane market to buy a 2BHK since last one year and gave up when realized that it is a bubble created by Mafia, Politicians, Bankers and Builders. It will go bust just like Tokyo in 1989. The tragedy is that Japanese economy was so badly hit and they are still struggling in 2010.

Roopsingh

7 years ago

prices in mumbai are going in multiples to prices in USA-
so better buy a farm house in usa then in mumbai

T K surana

7 years ago

just 3 words for mumbai realty market.
Boom boom BURST !!!!!

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