Companies & Sectors
SEBI directs Khaitan promoters to make open offers in 45 days

SEBI has directed the four promoter entities, including two individuals, of Khaitan Electricals to make a public announcement regarding purchase of company's shares within 45 days

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has directed four promoter entities of Khaitan Electricals to pay "consideration amount" with interest to its shareholders for failing to disclose acquisition of shares in the company, reports PTI.

 

SEBI has also directed the four entities, including two individuals, to make a public announcement regarding purchase of company's shares within 45 days.

 

The order, issued on 31st December, was against -- Sunil Krishan Khaitan, Krishan Khaitan, Khaitan Lefin Ltd (KLL) and the Orientale Mercantile Company Ltd (OMCL).

 

"The noticees, Sunil Krishan Khaitan, Krishan Khaitan, Khaitan Lefin and The Orientale Mercantile Company shall make a combined public announcement to acquire shares of the target company, Khaitan Electricals Ltd... within a period of 45 days from the date of this order" SEBI said.

 

It was found that the entities had not made public announcement regarding purchase of shares in the company even as their shareholding increased beyond the threshold limit of 15%, in 2007.

 

Further, the regulator said the entities "shall, along with consideration amount, pay interest at the rate of 10% per annum, from 16 June 2007 to the date of payment of consideration...".

 

Shareholders who were holding shares in the target company on the date of violation and whose shares have been accepted in the open offer, after adjustment of dividend, if any, paid, would be eligible for the consideration amount.

 

As per norms, the obligation to make public announcement gets triggered when the acquisition of the acquirer, individually or collectively along with persons acting in concert with him crosses the threshold limit of 15%.

 

SEBI observed the entities had acquired 13 lakh shares (upon conversion of warrants) in the company in two tranches.

 

Out of these Sunil Khaitan and Krishna Khaitan acquired 50,000 shares each, KLL had bought 9 lakh shares, while OMCL acquired 3 lakh shares, on 12 March 2007.

 

The regulator said that the stake of the promoter group, collectively increased from 25.8% to 34.2% and the acquirers collectively failed to make a public announcement within four working days from date of purchase.

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US Congress passes fiscal cliff bill; President to sign into law

Had not passed, fiscal cliff would have resulted in increased tax rates for more than 98% of Americans

Washington: Overcoming Republican resistance, the US House of Representatives late Tuesday night passed the "fiscal cliff" bill by 257 to 167 votes, ending a dramatic New Year's Day showdown over income taxes and deep federal spending cuts, reports PTI.

 

The bill, which was passed by the Senate (89 to 8 votes) in the wee hours of the New Year, would now go to the White House for US President Barack Obama to sign into law, which would end months of anxious moments with regard to fiscal cliff.

 

Had not passed, fiscal cliff would have resulted in increased tax rates for more than 98% of Americans.

 

The passage of the legislation by the Republican-majority House was not before some anxious moments during the day, when some of the Republican leaders were mulling bringing amendment to the bill passed by the Senate, but gave up as they were unable to muster enough support.

 

The Senate bill in itself was a result of the days of negotiations between the Democrats, Republicans and the White House and required the services of US Vice President Joe Biden.

 

"The House passage of the Senate's bipartisan legislation is a victory for the middle class," said House Minority Leader Nancy Pelosi.

 

"Our action permanently extends the middle class tax cut and promotes economic growth, while asking the wealthiest Americans to pay their fair share. It extends unemployment insurance for those who lost their jobs through no fault of their own," she said.

 

"With the passage of this measure, we strengthen the principle that we must have equal parts revenue and spending cuts as we work to reduce our deficit.

 

"We strengthen our economy through investments in innovation, tax credits for education, and tax breaks to spur the technologies of the future, including renewable energy," Pelosi said. .

 

"Tonight's progress is not only a victory for the middle class but for the President and Vice President who campaigned on protecting the middle class and kept their promise to the American people," Pelosi said in a statement.

 

The Democratic Congressional Campaign Committee Chairman Steve Israel in a statement said the bill protects the middle class from a huge tax increase.

 

"For the first time in more than 20 years, Congress has acted to protect tax cuts for the middle class while asking millionaires to pay their fair share," he said.

 

"The middle class deserves solutions instead of ideology.

 

While President Obama, Vice-President Biden, Senate and House Democrats and even Senate Republicans were working to get to yes, the Tea Party Republicans seemed insistent on finding a way to no," he said.

 

The legislation as passed by the Congress besides permanently extending the Bush-era income tax rates on individual income up to $400,000 and family income up to $450,000, also sets permanently the estate tax rate at 40%, up from 35%, and exempts inheritances below $5 million.

 

In addition to an extension of unemployment benefits for one year, it extends 2009 stimulus provisions including the earned income tax credit, child tax credit and college tax credit for five years.

 

The bill postpones the automatic spending cuts known as the sequester for two months and offsets the $24 billion cost of the delay with a mix of spending cuts and new revenues.

 

Earlier the Congressional Budget Office (CBO), in a report, had warned that fiscal cliff could dampen economic growth by 0.5%. That could tip the US economy into a recession and driving unemployment from its current 7.7% back over nine%, the non-partisan CBO estimated.

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OBC cuts interest rate on home loans by 0.1%

Home loans from Oriental Bank of Commerce will now be available at 10.4% with an EMI of as low as Rs937 per lakh


New Delhi: State-owned Oriental Bank of Commerce (OBC) has reduced interest rate on home loans of up to Rs30 lakh by 0.1%, reports PTI.

 

As a New Year gift to customers, home loans will now be available 10.40% with an equated monthly instalment (EMI) of as low as Rs937 per lakh, OBC said in a statement.

 

The base rate or the minimum lending rate of the bank is also 10.4%.

 

Besides, the bank has also slashed margin for home loans above Rs20 lakh to 20%, it added. For loans below Rs20 lakh, margin will be 15%.

 

On the deposit side, the bank has waived off penalty on premature withdrawal on its fixed deposit schemes for all maturities.

 

Earlier this week, private sector HDFC Bank slashed its benchmark lending rates by 0.1%.

 

The base rate the bank was reduced to 9.7% from 9.8%. At the same time, the benchmark prime lending rate (BPLR) of the country’s second largest private bank was also slashed by similar margin to 18.2%.

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