Probe into SKS still on: Bhave

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) today said it is still investigating the issue of SKS Microfinance sacking its CEO Suresh Gurumani - which raised the hackles of investors - shortly after a successful Rs1,600 crore public offer, reports PTI.

"The investigation is still on..," SEBI chief CB Bhave told reporters here.

After raising Rs1,600 crore through an initial public offer (IPO) in August, the Hyderabad-based company on 4th October terminated the services of Mr Gurumani four years ahead of the expiry of contract and named M R Rao as his successor.

Mr Gurumani had a five-year contract starting from 1 April 2009.

A few days later on 14th October SEBI in a communiqué to the company had asked whether the termination of Mr Gurumani was planned when SKS had filed the draft prospectus in March for the IPO.

The company replied to the SEBI questionnaire the following day, but declined to make public the details.

Mr Gurumani was earlier director at consumer banking at Barclays. After his sacking SKS founder Vikram Akula has become the executive chairman.

The matter reached the Andhra Pradesh High Court later which allowed him to continue as a director on board till final orders.
 

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SEBI doubles retail investor cap to Rs2 lakh

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) today doubled the investment limit for retail investors in an initial share sale offer to Rs2 lakh, reports PTI.

The board approved categorising all investors putting in up to Rs2 lakh to buy shares through a public offer as retail investors, SEBI chief CB Bhave told reporters here.

SEBI, in its draft guidelines in August, had proposed to raise the ceiling for retail investors to Rs2 lakh in public issues. Way back in 2005, the limit for retail investors was raised from Rs50,000 to Rs1,00,000 in public issues.

The market watchdog allows price discount for retail investors and company discount participating in initial public offers (IPOs) and follow-on public offers (FPOs).

This discount is offered to attract retail investors into the market.

In another related development, the market regulator has deferred a decision to amend the takeover code as it said that it needs “additional time” to look into the finer aspects of the same.

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COMMENTS

Stephen

6 years ago

Kindly note that the limit for AIR (Annual Inforation Return) is still Rs 1 lac. Thus if you cross the Rs 1 lac limit expect a notice from the income tax office - they will ask you to do everything short of stripping in front of them i.e. copy of account books, copy of bank statements, copy of investment accounts and a million and one personal questions.

arun adalja

6 years ago

sebi has taken wrong decision by increasing the limit to 2 lacs for retail investors.how many retail investors has got 2lacs rs to invest in ipo?actually we must do some survey by analysing all ipo and find out the correct value what retail investors are investing for ipos if any body can find out such datas and give feedback to sebi that you are wrong and do not play with investors money and control the pricing of ipos in a strict manner.

Krupal K G

6 years ago

This is a welcome step, but will there be a small investors if there is no protection for their investments. Best thing is to bring the new listed shares also under Circuit breakers after determining the opening price in pre-open session. Excessive day tradings in new scrips is trapping small investors. This should be controlled.

A bottomless abyss

Economists at Goldman Sachs estimate the Federal Reserve may need to buy a staggering $4 trillion worth of assets such as Treasury securities to get the economy rolling again.

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