Regulations
SEBI ask merchant bankers to be careful while filing offer documents

The market regulator advised all merchant bankers to take due care before filing the draft offer document as the framework for rejection of the offer documents has come into force

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has asked merchant bankers to take due care before filing the draft offer document with it as the framework for rejection of the same has come into force, reports PTI.
 
"All Merchant Bankers are advised to take note of the same and take due care before filing the draft offer document with the Board," SEBI said in a circular.
 
In a general order dated 9th October, SEBI had announced a 'framework for rejection of draft offer documents' that came into force with immediate effect.
 
The framework had mentioned various factors such as rejection of the draft offer document if the purpose of utilising the proceeds is vague.
 
Among others, the draft document would not be entertained in case a major portion of the issue proceeds are proposed to be utilised for the purpose which does not create any tangible asset, like expenses towards brand building, advertisement, payment to consultants.
 
SEBI had said the list of draft offer documents rejected on the basis of the framework, along with the details of issuers or merchant bankers and the reasons for rejection, would be made public on the market regulator's website.
 

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SEBI drops cases against two individuals in Bank of Rajasthan case

In two separate orders, SEBI said it is disposing of the case against Subhashchandra Maheshwari and Manishbhai Mistry as the charges of violations of various norms by the two entities "do not stand established"

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has dropped cases against two individuals in relation to a probe into the affairs of erstwhile Bank of Rajasthan (BoR) for alleged irregularities on part of the company's former promoters, reports PTI.
 
In two separate orders, SEBI said it is disposing of the case against Subhashchandra Maheshwari and Manishbhai Mistry as the charges of violations of various norms by the two entities "do not stand established".
 
The regulator said after taking into consideration all the facts and circumstances of the case, it did not find the case fit to impose a monetary penalty. "The case is accordingly disposed of," SEBI said in similarly-worded orders dated 12 October 2012.
 
Both Maheshwari and Mistry had served as directors of Megna Developers and Praneta Properties, companies alleged to be persons acting in concert (PAC) entity of BoR's former promoters.
 
SEBI had alleged that the two had violated various sections of the SEBI Act and the regulations for prohibition of fraudulent and unfair trade practices which made them liable for monetary penalty.
 
The matter relates to SEBI's investigation into the affairs of BoR for a period between June 2007 and December 2009. Later, BoR was acquired by ICICI Bank.
 
During the period, it was found that the shareholding of the promoters of BoR led by Pravin Kumar Tayal with their PACs had increased from 46.80% in June 2007 to 63.15% in December 2009.
 
The bank's promoters along with their PACs had increased their shareholdings by way of acquiring shares from the market.
 

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Axis Bank Q2 net profit up 22% to Rs1,123 crore on lower expenses

Axis Bank's total revenues, including interest income of the lender increased by 27% to Rs8,280.29 crore during the September quarter

 
New Delhi: Private sector lender Axis Bank recorded 22% increase in its net profit at Rs1,123.54 crore for the second quarter ended September 2012 on the back of lower expenses, reports PTI.
 
The bank had a net profit of Rs920.32 crore in the corresponding quarter last fiscal, Axis Bank said in a statement.
 
The total revenues, including interest income of the lender increased by 27% to Rs8,280.29 crore during the July-September quarter, from Rs6,510.89 crore over the same period last year.
 
The bank continues to show strong performance in terms of growth of net interest income (NII), fee income and operating revenue. With slower growth of operating expenses compared to revenue, the bank's operating profit and net profit have also shown healthy growth, Axis Bank said in a statement.
 
NII for the second quarter was Rs2,327 crore against Rs2,007 crore in the same period a year ago. At the same time operating expenses grew by 18.8% to Rs1,741.73 crore compared to Rs1,466.54 crore in the previous fiscal.
 
During the quarter, other income grew 29% to Rs1,593 crore, driven by growth in fee income which stood at Rs1,343 crore thereby registering a growth of 20%, it said.
 
The main business segments driving fee growth during the quarter were retail banking, which grew 43% and large and mid-corporate banking which grew 15%, it added.
 
The bank recorded a net interest margin (NIM) of the bank rose to 3.46% at the end of in September from 3.37% at the end of first quarter.
 
During the first half of 2012-13, the bank clocked 22% rise in net profit to Rs2,277.06 crore, compared to Rs1,862.67 crore in the same period a year ago.
 
The bank reported a total income of Rs16,098.66 crore in the first six months, compared to Rs12,560.16 crore in the previous financial year.
 
The bank's NII rose by 21% to Rs4,507 crore during the first half of 2012-13 from Rs3,731 crore in the same period of the previous fiscal.
 
The bank's balance sheet improved by 21% to Rs3,02,681 crore while the bank's advances grew 23% to Rs1,72,132 crore at the end of September 2012.
 
Capital Adequacy Ratio (CAR) for the bank was 12.99% at the end of second quarter.
 
As on September 2012, Gross NPAs and Net NPAs stood at 1.10% and 0.33%, respectively as against 1.08% and 0.34%, as on September 2011.
 
The bank held a provision coverage of 80% as on September 30, 2012 (as a proportion of Gross NPAs including prudential write-offs).
 
Meanwhile, the bank has appointed Somnath Sengupta and V Srinivasan as executive directors with effect from 15 October 2012.
 

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