SEBI asked stock exchanges to make necessary amendments to the relevant bye-laws, rules and regulations for the implementing the decision to grant membership to LLPs
Mumbai: Capital market regulator Securities and Exchange Board of India (SEBI) today said Limited Liability Partnerships (LLPs), a hybrid between a partnership firm and company, can get membership of stock exchanges, reports PTI.
Following requests from various stock exchanges to permit LLPs to be admitted as members to enable them to get registration as stock brokers, SEBI said "stock exchanges may consider granting membership to LLPs".
The Securities Contract Regulation Rules, 1956 (SCRR) is only clear on Limited Liability Companies (LLCs) and partnership firms being eligible to be admitted as members of stock exchanges.
SEBI said that in this context it may be stated that LLPs are akin to LLC and partnership firms.
It asked stock exchanges to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the decision.
The Parliament has put in place a legal framework for LLPs.
LLP is a corporate business vehicle that provides benefits of limited liability while allowing its members the flexibility of organising their internal structure as a partnership firm. As per the latest data, there were 5,501 registered LLPs in the country.
“The core fee income grew 44% to Rs187.07 crore due to an increase in our third party products, trade and remittances, foreign exchange and investment banking income,” IndusInd Bank MD & CEO Romesh Sobti said
Private sector IndusInd Bank has posted a 52% jump in net profits for the first quarter ended 30th June at Rs180.18 crore, helped by a surge in fee income.
The Mumbai-based lender's net profit for the April-June period last fiscal had stood at Rs118.55 crore.
"The core fee income grew 44% to Rs187.07 crore due to an increase in our third party products, trade and remittances, foreign exchange and investment banking income," IndusInd Bank managing director and chief executive Romesh Sobti said.
The net interest income (NIM) was up 32% during the reporting period to Rs390.01 crore compared to Rs295.68 crore during the same period a year ago.
In spite of the high interest rate environment, the bank was able to widen its net interest margin by 9 bps to 3.41%, Sobti said.
The cost of deposits went up to 7.71 from the previous (January-March) quarter's 7.03%, but the bank made up for that by raising its base rate three times, or 125 bps, during the quarter to maintain margins, he said.
Its sequential (over Q4 FY11) credit growth stood at 8%, while the same on a year-on-year basis stood at 31.36%. The deposit growth was a tepid 3% on sequential basis and 28.78 on a Y-o-Y.
IndusInd's total capital adequacy increased to 14.99% as on 30 June 2011, compared to 13.71% during the year-ago period.
To further strengthen the capital base, the bank is planning to raise Rs400 crore in Tier-II bonds, Sobti said.
"We will come out with the issue by end of second quarter or early third quarter... We are yet to firm up plans," he added.
On Monday, IndusInd Bank ended 1.95% down at Rs281.05 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.72% to 18,721.39.
The rate hike is effective from 11th July
Public sector Union Bank of India has hiked its minimum rate of lending or the base rate by 25 basis points to 10.25%, in line with its peers.
The rate hike, effective 11th July, comes within days of other lenders like the country's largest bank State Bank of India and second largest lender ICICI Bank also announcing similar moves following the rate hike by the Reserve Bank of India.
The RBI has hiked its key rates 10 times since March 2010 to tame the inflation, which stood at 9.06% in May 2011. The last hike of 25 basis points was effected in the mid-quarter announcement of the monetary policy on 16th June.
On Monday, Union Bank ended 0.43% down at Rs298 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.72% to 18,721.39