Regulations
SEBI seeks clarification on rival bids for Mangalore Chemicals

Zuari Fertilisers, Deepak Fertiliser and Mangalore Chemicals & Fertilisers compete with each other in the fertilizer business, but a huge debt burden had triggered a takeover battle for the Vijay Mallya-led group unit

Market regulator Securities and Exchange Board of India (SEBI) has sought clarifications from two rival bidders who have made offers for acquisition of additional stakes in Vijay Mallya-led UB Group's Mangalore Chemicals and Fertilisers Ltd (MCFL).

 

The clarifications have been sought through merchant bankers of the two rival bidders -- Deepak Fertilisers and Zuari Fertilisers, among which the latter has been joined by the existing promoters of MCFL as 'persons acting in concert'.

 

According to latest data made public by SEBI, the clarifications were sought from JM Financial (merchant banker for Deepak Fertiliser group) on 20th June. Prior to that, SEBI sought additional details on June 17th, from ICICI Securities and Ambit Corporate Finance, who are acting as merchant bankers for Zuari in their proposed open offer for MCFL.

 

SEBI was still awaiting replies from the merchant bankers for both the open offers, says the latest update on 'processing status of draft offer documents' filed with the capital markets regulator as on 20th June.

 

It could not be ascertained whether there have been any developments since then and the next update would be provided by SEBI next week.

 

An open offer for acquisition of additional stake in a listed company can move forward only after issuance of 'observations' by SEBI.

 

The battle for MCFL started in April last year when Zuari Fertilisers bought about 10% in the company from SBI group entities in the open market.

 

Deepak Fertilisers followed with acquisition of a 24.46% stake in MCFL in July 2013. Zuari group then increased its stake to 16.43% in the same month.

 

Zuari, Deepak Fertiliser and MCFL compete with each other in the fertiliser business, but a huge debt burden on the Mallya-led group had triggered a takeover battle for MCFL.

 

Earlier in May this year, UB Group joined hands with the Zuari group to ward off a hostile takeover bid by Deepak Fertilisers for MCFL and offered to buy more shares in the firm at a 9% higher rate than their rival.

 

This counter offer came less than a month after Deepak Fertilisers raised its stake in the firm to 25.31% and made an open offer to buy an additional 26% at Rs63 per share, totalling Rs194 crore.

 

Saroj Poddar-led Zuari group has teamed up with the UB Group in its offer to buy a 26% stake for Rs68.55 per share for a total of Rs211.22 crore in MCFL.

 

UB Group currently holds nearly 22% stake in MCFL, but over half of their shareholding is pledged.

 

SEBI received the draft offer document from Deepak Fertilisers for an open offer worth Rs190.28 crore on 8th May. This was followed by receipt of the draft offer document by the Zuari group on 27th May for an open offer worth Rs211.23 crore.

User

SEBI revamps its secondary market advisory committee- SMAC

The 17 members panel also advises SEBI on measures for reducing transaction costs, changes if required in risk management and regulatory framework in secondary market, among other issues

Market regulator Securities and Exchange Board of India (SEBI) has reorganised its Secondary Market Advisory Committee (SMAC). The SMAC that advices it on matters related to the secondary market, including suggesting steps to improve market safety, efficiency and transparency, will be headed by Jayanth R Varma, former whole time member of SEBI and a professor at IIM Ahmedabad.

 

Besides Varma, the expert panel consists of 17 members including top executives from NSE, BSE and MCX-SX, as well as government representatives.

 

Members of the committee include BSE's Ashish Kumar Chauhan, NSE's Chitra Ramakrishna, MCX-SX' Saurabh Sarkar. All of them are managing directors (MDs) and chief executives (CEOs) of their respective stock exchanges.
 

Here is the list of members of the Secondary Market Advisory Committee (SMAC)

 

Sr No

Members

Designation & Organization

Capacity

  1.  

Prof Jayanth R Varma

Professor, IIM Ahmedabad

Chairman

  1.  

Susan Thomas

Indira Gandhi Institute of Dev Research

Member

  1.  

Anupam Mishra

Department of Economic Affairs, MoF

Member

  1.  

Chitra Ramakrishna

MD & CEO, NSEIL

Member

  1.  

Ashish Kumar Chauhan

MD & CEO, BSE

Member

  1.  

Saurabh Sarkar

MD & CEO, MCX-SX

Member

  1.  

GV Nageswara Rao

MD & CEO, NSDL

Member

  1.  

PS Reddy

MD & CEO, CDSL

Member

  1.  

Naresh Tejwani

President, ANMI

Member

  1.  

Dr Naresh Maheshwari

President, Depositary Participants Assn

Member

  1.  

Anup Bagchhi

MD, ICICI Securities Ltd

Member

  1.  

Dipak Gupta

Joint MD, Kotak Mahindra Bank

Member

  1.  

Himanshu Kaji

Exec Dir & Group COO, Edelweiss Group

Member

  1.  

Anand Rengarajan

Cust Head, Direct Sec Serv, Deutsche Bank

Member

  1.  

Surinder Verma

Chairman, Citizens Awareness Group

Member

  1.  

SV Muralidhar Rao

Executive Director – MRD, SEBI

Member

  1.  

PK Nagpal

Executive Director- MIRSD, SEBI

Member

  1.  

Maninder Cheema

Deputy General Manger- MRDDoP, SEBI

Member Secretary

 

Anup Bagchi, MD of ICICI Securities and Dipak Gupta, joint MD of Kotak Mahindra Bank are also members of the committee. Anupam Mishra from the Department of Economic Affairs, Ministry of Finance, and some SEBI officials are also part of the panel.

 

The SMAC is mandated to review the developments in secondary markets, to recommend measures for changes and improvements in market structure in view of the impending changes, look into investor protection measures in the stock exchanges and suggest improvements.

User

US House adopts amendment to bar NSA from meddling with encryption standards

The measure was inserted into a defense appropriations bill and approved on a voice vote

An amendment designed to bar the National Security Agency from undermining encryption standards was approved by the House last night.

The move follows reporting last year by ProPublica, the Guardian, and the New York Times on the NSA's efforts to weaken encryption, including by influencing the development of standards by the National Institute of Standards and Technology. The stories were based on documents provided by Edward Snowden.

The amendment, sponsored by Rep. Alan Grayson (D-Fla.) and similar to one he advanced last month, bars the NSA from using appropriation funds to consult with NIST in a way that undermines security standards.

It still has a way to go before becoming law: While the House is expected today to approve the full appropriations bill that the amendment is a part of, the Senate would have to pass the same text, and ultimately President Obama would have to approve.

The amendment is separate from another one the House adopted last night that is designed to block the NSA from conducting "backdoor" spying on Americans by querying databases of foreign intelligence.

The voice vote on Grayson's amendment, co-sponsored by Reps. Rush Holt (D-N.J.) and Zoe Lofgren (D-Calif.), was preceded by a few minutes of interesting debate among Grayson, Holt, and Rodney Frelinghuysen (R-N.J.), chairman of the defense appropriations subcommittee.

Noting that he did not oppose the amendment, Frelinghuysen nevertheless rejected what he called the "allegations" that NSA had meddled with encryption standards.

"The idea that NSA has deliberately sabotaged security is ridiculous," Frelinghuysen said. "These folks know the threat we face and are helping to secure the Internet we all rely on so heavily."

Grayson and Holt cited our reporting on the NSA's efforts to undermine encryption standards.

A Grayson spokesperson cautioned it's always possible that the NSA has a classified funding stream that could allow it to continue to meddle with encryption standards.
Here is video of the debate on the amendment:


And here's the full amendment itself:

SEC. None of the funds made available by this Act may be used to “consult”, as the term is used in reference to the Department of Defense and the National Security Agency, in contravention of the “assur[ance]” provided in section 20(c)(1)(A) of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3(c)(1)(A)).

Courtesy: ProPublica.org

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)