Not a single issue hit the primary markets in November: SEBI

The lull in the primary market activity is because of private equities and foreign institutional investors (FIIs) not brining in fresh funds due to slowdown in the US as well as Eurozone nations facing debt crisis, experts said

Mumbai: Reflecting the damp market mood, India Inc kept off public offers and rights issues in November, as not even a single issue hit the market for the second consecutive month, reports PTI.

“November 2011, like last month (October), did not see any public or rights issue made in the primary market,” according to the Securities and Exchange Board of India’s (SEBI) latest ‘Capital Market Review’.

The lull in the primary market activity is because of private equities and foreign institutional investors (FIIs) not brining in fresh funds due to slowdown in the US as well as Eurozone nations facing debt crisis, experts said.

Various companies went in for IPOs and public issues in August and September, but their scrips were trading below the offer price. In October, companies turned cautious.

“The cumulative amount mobilised for the financial year 2011-12 so far stands at Rs16,437.6 crore through 47 issues, as against Rs48,923.3 crore through 60 issues during the corresponding period in 2010-11,” SEBI said.

It said that no company went for Qualified Institutional Placement (QIPs) in November. In October, only one QIP had taken place which raised Rs40 crore.

Preferential allotments, however, continued to be made.

There were 21 preferential allotments in November which raised Rs169 crore, SEBI said.

In comparison, 18 such allotments were made in October which raised a total of Rs417 crore.

The stock market witnessed a lot of volatility in November and the BSE benchmark Sensex fell 8% during the month. It has fallen nearly 24% this year, eroding around Rs20 lakh crore from investor wealth.

User

Govt plans to borrow additional Rs40,000 crore in FY11-12

If approved, it would be the second additional borrowing than that originally announced in the Budget 2011-12. As per the revised target, gross market borrowing for the current fiscal is pegged at Rs4.7 lakh crore

New Delhi: The government is looking at borrowing around Rs40,000 crore more to make up for the shortfall in revenue receipts and poor disinvestment realisation in the current fiscal, reports PTI.

“The government might borrow Rs30,000-Rs40,000 crore to plug a shortfall in receipts in current fiscal year,” a senior finance ministry official told PTI.

If approved, it would be the second additional borrowing than that originally announced in the Budget 2011-12. As per the revised target, gross market borrowing for the current fiscal is pegged at Rs4.7 lakh crore.

Earlier this week, a top finance ministry official had admitted that the government is finding it difficult to meet direct tax target due to industrial slowdown and may go in for larger market borrowings.

“There has to be extra (market) borrowing to bridge (the revenue) deficit. If the deficit increases then the government will have to borrow,” the official had said without revealing how much more the government may borrow.

The government is looking to mop up Rs5.32 lakh crore from direct taxes, from corporate and personal income taxes.

The net direct tax collection has been Rs2.35 lakh crore during the first eight months of this fiscal.

In September, the government had announced an additional market borrowing of Rs52,800 crore on top of Rs4.17 lakh crore planned in the Budget.

Besides, slowdown in the economic activities due to domestic and global factors, the government’s subsidy bill on petroleum and fertilisers is likely to increase further.

Finance minister Pranab Mukherjee said recently that the subsidy bill in 2011-12 is likely to go up by a whopping Rs1 lakh crore on account of higher outlays towards fertiliser, food and oil.

In the Budget, the government had earmarked Rs1.34 lakh crore towards major subsidies—fertiliser, food and oil.

User

2G case: CBI may get former diplomat in Mauritius as witness

Madhusudan Ganpathi, an IFS officer of 1975-batch, who is now secretary (west) in the external affairs ministry had informed the ministry in March that the officials of Loop Telecom had met him and sought details about the Letters Rogatory sent by the CBI in connection with the probe into certain transactions by a dozen companies from that country

New Delhi: The Central Bureau of Investigation (CBI) may present a former Indian High Commissioner to Mauritius as a prosecution witness in the trial of alleged irregularities in the second generation (2G) spectrum allocation awarded to Loop Telecom, reports PTI.

Madhusudan Ganpathi, an IFS officer of 1975-batch, who is now secretary (west) in the external affairs ministry had informed the ministry in March that the officials of Loop Telecom had met him and sought details about the Letters Rogatory sent by the CBI in connection with the probe into certain transactions by a dozen companies from that country.

The ministry in turn communicated to the CBI about the questions posed by Loop officials, agency sources said.

During the trial, CBI may raise the issue of the meeting of Loop officials with the Indian High Commissioner during the trial as it feels that it was aimed at influencing the probe, CBI sources said.

When contacted, Loop Telecom refused to give comments saying the matter is sub-judice.

In its second supplementary charge-sheet filed before a special court here, the CBI has listed Mr Ganpathi as witness number 29, among 100 witnesses which may be produced by the agency, whose statement is yet to be recorded.

The agency, through its judicial requests, had said that “allegations have also surfaced that some public servants of the Government of India have stakes in Etisalat DB Telecom Pvt Ltd (formerly Swan Telecom Pvt Ltd) and Loop Telecom through Mauritius based companies.” 

Through LR, it had sought collection of documents from the Registrar of Companies, documents and information to be collected from banks besides representatives of these companies in Mauritius.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)