R Sridharan named acting chairman of SBI

Formal decision yet to be taken on new chairman to succeed OP Bhatt; Mr Sridharam, who is managing director, will take charge today

Mumbai: R Sridharan will take over as acting chairman of the State Bank of India (SBI) from OP Bhatt, who superannuated yesterday.

Mr Sridharan, has been the managing director and group executive (associates and subsidiaries) at the bank, and will take charge today, PTI reported, quoting unnamed sources. He began his career with SBI in 1972, the same as Mr Bhatt, and has served with the country's largest bank through these years. Mr Sridharan, is a graduate from the University of Madras. He was appointed MD in December 2008.

The government is said to be considering appointing SBI's deputy managing director Pratip Chaudhuri to succeed Mr Bhatt, but with a formal decision yet to be taken, it has appointed an acting chairman.

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MCX files DRHP with Sebi for IPO

Under sectoral regulator FMC norms, the anchor investor, Financial Technologies is required to reduce its stake to 26% from the present 31.18%, which it has declared to achieve through the IPO. MCX also announced that it will be appointing a former High Court Judge as an Exchange Ombudsman and declared that it favours bringing exchanges under the purview of the Right to Information Act

Leading commodity exchange Multi Commodity Exchange (MCX) has announced its intention to go public through an initial public offering (IPO) which will see its existing shareholders diluting
12.60% of equity.

The offer for sale from the existing shareholders, including promoter Financial Technologies (FT) led by Jignesh Shah, is through a 100% book-building process.

MCX filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI (the Securities and Exchange Board of India) on Thursday (31st March).

Under sectoral regulator FMC (Forward Markets Commission) norms, the anchor investor-FT-is required to reduce its stake to 26% from the present 31.18%, which it has declared to achieve through the IPO.

On 14th May, Moneylife had reported on how FMC had given a nod to the MCX IPO. (http://www.moneylife.in/article/8/5395.html).

Lamon Rutten, managing director and CEO of the Exchange, said that he hopes to complete the process by the deadline (30th September), failing which FT will have to find "other ways" of diluting the equity to meet the deadline. He, however, did not reveal the quantum of money to be raised through the IPO.

Interestingly, the National Stock Exchange (NSE), one of the stakeholders in MCX, will not be diluting its stake.

"SEBI generally takes 45 days to clear DRHPs and then we have a year's window to list which we will choose as per market conditions," Mr Rutten said.
NSE is not among the institutions diluting stake through the IPO either, he said, adding the issue will see SBI, Corporation Bank, GLG Financials Fund, Bank of Baroda, Alexandra Mauritius and ICICI Lombard General Insurance bringing down their stakes to 1.04%, 3%, 0.38%, 0.82%, 0.19% and 0.07%, respectively.

When asked if the financial institutions holding stakes are looking at the IPO as a good platform to exit and make money on their long-held investments, Mr Rutten parried the question, reports PTI.

He said the IPO is for bringing in the highest levels of transparency by ensuring shareholder and public scrutiny and corporate governance practises.

Edelweiss Capital, Citigroup Global Markets and Morgan Stanley will be acting as book running lead managers to the IPO which has caps of 50% for qualified institutional buyers and minimum limits of 15% for non-institutional bidders and 35% for retail buyers.

MCX also announced that it will be appointing a former High Court Judge as an Exchange Ombudsman and declared that it favours bringing exchanges under the purview of the Right to Information Act.

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Fiscal deficit in 2010-11 shows improvement

In the 11 months from April 2010 to February 2011 the fiscal deficit was at 68.6% compared to 92% in the corresponding period of the previous year.

New Delhi: The Centre's fiscal deficit during April 2010-February 2011 worked out to 68.6% of the estimates, compared to 92% in the corresponding period last year, an indication of an improvement in the fiscal position.

In absolute terms, the fiscal deficit stood at Rs2.75 lakh crore in the 11-month period of 2010-11, against Rs3.80 lakh crore in the period in the previous financial year, PTI reports.

In the April 2010-February 2011 period, net tax receipts of the government stood at Rs4.60 lakh crore and total expenditure at Rs9.78 lakh crore, according to an official statement.

Non-tax revenue in the April-February period was at Rs2.09 lakh crore, primarily on account of higher realisation from the auction of spectrum, which raked in about Rs1.08 lakh crore.

Finance minister Pranab Mukherjee had in his 2011-12 Budget speech pegged the fiscal deficit for the current year at 5.1%, on the back of higher-than-expected realisation from auctioning of 3G and BWA spectrum, which is lower from the 5.5%, or Rs3.81 lakh crore, projected in the Budget last year.

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