SEBI mulling whether to allow loss-making cos list on SEs

Presently, there are a large number companies listed on the BSE not attracting enough trading interest.

Market regulator SEBI said that it was considering whether or not to allow loss-making companies to list on stock exchanges.

“SEBI is considering whether to allow non-profitable firms to list on exchanges,” SEBI executive director Usha Narayanan told an Oxford-India business forum.

Under the existing norms, only those companies which have been making profit for the previous three years can go for a listing, though exemption is given to loss-making entities to go public with a caveat that they can do so only with pre-determined issue price. But this clause prevents a company from fully realising its true value.

Meanwhile, she also informed that the regulator was contemplating to shift illiquid shares from the main exchanges to the recently set up SME exchanges.

Presently, there are a large number companies listed on the BSE not attracting enough trading interest. Given that many of these companies fall under the SME category, the regulator is mulling to shift them to the SME exchange where they could attract investors' interest.

Currently, the SME exchange started by BSE has only one company listed whereas there is none on the NSE platform.

The exchanges were working on SME platforms for long. Sebi had in September 2011 granted permission to the BSE to launch its SME exchange while the NSE received approval in October.

So far, MSMEs, which number over 26 million and contributing to 15% to GDP have been allowed only debt-financing options, without any access to alternative equity options.

User

SEBI lifts ban on Welspun Group

Welspun has welcomed SEBI order lifting ban on it.

Market watchdog SEBI has vacated its earlier order restraining some of the promoter entities of Welspun Corp from buying, selling, or dealing in the securities of the company and other listed group firms.

SEBI, in a 16 March 2012 order, said based on the findings of its investigation no action or proceedings are recommended against Welspun Corp.
 
Following this, the interim directions issued vide order dated 2 December 2010 are revoked, considering the proposed adjudication proceedings and also the fact that the entities have already undergone debarment for a period of 15 months, the capital market regulator said.

The SEBI had barred Welspun Corp from trading on the stock exchanges for allegedly indulging in fraudulent and unfair trade practices. Welspun has welcomed SEBI order lifting ban on it.

"This is a landmark judgement which has exonerated Welspun Group promoters, and reaffirms the highest standard of corporate governance and ethical practices within the Welspun Group," Welspun Group chairman and managing director BK Goenka said in a statement.

User

Kingfisher’s flying permit may be cancelled: sources

The sources said Kingfisher may be planning a quiet shut down and promoter Vijay Mallya being an ‘accountable’ person has been asked to meet the DGCA to present a clear picture. The whole picture is likely to become clear in few days, the officials added

New Delhi: Ailing Kingfisher Airlines Monday faced the prospects of its flying license being cancelled and its boss Vijay Mallya has been asked by the Directorate General of Civil Aviation (DGCA) to present a clear picture of the cash-strapped private carrier, reports PTI.

The DGCA mulled cancellation of Kingfisher's flying permit after the airline today submitted to it the summer flight schedule with 15 to 16 aircraft as against 28 planes submitted last month.

“The airline not only lacks aircraft, they also lack funds for day-to-day operations. They are failing to meet their flight schedule, causing inconvenience to the passengers and also they failed to give salaries to their employees for past four-five months,” official sources said.

The sources said Kingfisher may be planning a quiet shut down and Mr Mallya being an ‘accountable’ person has been asked to meet the DGCA to present a clear picture.

The whole picture is likely to become clear in few days, the officials said.

The beleaguered airline was served a show-cause notice by the civil aviation regulator DGCA towards the end of February asking why its licence should not be suspended as it had made unannounced cancellations.

The 15-day mandatory notice period has already lapsed and they have failed to give a valid reason for curtailment of their flight schedule, most of their explanations are unsatisfactory and they have not given a definite recovery plan, officials said requesting anonymity said, adding the airline is presently operating only 15 or 16 aircraft.

Facing severe fund crunch, the Vijay Mallya-promoted airline has decided to curtail its overseas flights operations to avoid further losses and also return of a leased aircraft.

According to sources, the airline has planned to suspend its overseas operations from 25th March, except Delhi-London which it is withdrawing from 9th April. Also, the airline would return its wide-bodied airbus A 330-200 aircraft to a lessor in the United Kingdom.

Struggling to stay afloat, around 60 accounts of Kingfisher Airlines have been frozen by the tax authorities for its failure to pay taxes after levying it from the passengers.

Angry over not being paid for four months, airline pilots reported sick, forcing the airline to curtail its scheduled flights.

Mr Mallya at a meeting with the pilots last Friday said their grievances would be looked into but did not set a time frame. He had also said the airline would come out with a crystal clear roadmap for its future in a few days.

Kingfisher has a total debt of about Rs7,057 crore and accumulated losses of about Rs6,000 crore.

Earlier this month, global airlines body IATA suspended Kingfisher for not clearing its dues. This was the second time in just over a month that the airline was suspended on the same count from the IATA Clearing House (ICH) through which airlines and related firms settle accounts for services provided by them to other such companies.

Shares of Kingfisher Airlines today plunged by about 13% to a 52-week low of Rs17.50 on the National Stock Exchange (NSE) as the company faced prospects of its flying licence being cancelled. It was seen trading at Rs18.55, down 7.71% in noon trade. On the BSE, the stock declined 7.96% to Rs18.50.

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)