SEBI to probe firms who have not conducted AGMs

“If they (corporates) are not sending annual reports and not conducting AGMs, these are clear cut violations. I will ask my team to investigate all cases where AGMs have not been called and Annual Reports have not been sent,” SEBI chairman UK Sinha said

Chennai: Sending a strong signal to listed companies to conduct annual general meetings (AGMs) and send annual reports regularly to its shareholders, market regulator Securities and Exchange Board of India (SEBI) on Monday said it would investigate the details of those companies which have not done so, reports PTI.

“If they are not sending annual reports and not conducting AGMs, these are clear cut violations. Since this question has been raised, I will ask my team to investigate all cases where AGMs have not been called and Annual Reports have not been sent,” SEBI chairman UK Sinha said.

SEBI has allowed companies to send the annual reports via electronic mode if shareholders have consented to it, he said addressing a seminar, on “Securities Market and the Common man” organised by National Stock Exchange here.

To a query about companies being involved in manipulating share prices, Mr Sinha said the market regulator was already investigating such cases. “...If there are any violations, it will be very seriously dealt with and very quickly”.

Later talking to reporters, Mr Sinha said SEBI was advising mutual fund industry to launch less number of newer schemes.

“SEBI is encouraging mutual funds to float less number of newer schemes. If there are schemes which are similar investments schemes, SEBI is encouraging them to merge them.

We are working towards it...” he said.

Besides, SEBI was working towards reducing the number of days in initial public offer (IPO) process which currently takes 12 days for a company. “SEBI has set up a committee to review the entire IPO processes in shortening the time period between the issue closure and listing... It is too premature for me to talk about it, but the current period of 12 days and how to reduce it is part of the (committee’s) mandate”, he said.

SEBI would look into the question of uploading e-document of annual reports of those companies in the website of stock exchanges similar to company results.

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SEBI to launch toll-free helpline for investors

With the launch of helpline, an investor can ask any question regarding the securities market which will be answered. “The reason why we are launching is that we have identified that self-help mechanism could be more useful for investor,” SEBI chairman UK Sinha told reporters

Chennai: Market regulator Securities and Exchange Board of India (SEBI) would launch a toll-free helpline as part of educating investors on the securities market, reports PTI quoting chairman UK Sinha.

With the launch of helpline, an investor can ask any question regarding the securities market which will be answered. “The reason why we are launching is that we have identified that self-help mechanism could be more useful for investor,” Mr Sinha told reporters.

Besides, SEBI would launch in association with the Central Board of Secondary Education a course curriculum on financial markets at the secondary school level as part of educating the younger generation (about the financial market).

“We are trying to make all the students aware about the basics of financial market. (Before launching), the curriculum will be tested. It will be built in to the senior secondary curriculum to begin with...” he said on the sidelines of a conference.

Asked why it has been launched through the CBSE mode than targeting the state government run schools, he said once this experiment was successful, it would be expanded into other areas.

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Govt to infuse Rs775 crore into Bank of Baroda

In March this year, the government had pumped in Rs2,675 crore, thereby increasing its stake to 57.3% from 53% earlier, BoB CMD MD Mallya said, adding with the infusion of Rs775 crore, the government ownership in the bank will touch the mandated 58%

Mumbai: The government has agreed to infuse Rs775 crore into the third largest state-run lender Bank of Baroda (BoB), reports PTI.

“As part of increasing its stake to the mandated 58%, the government has agreed to pump in Rs775 crore into our bank. The fund infusion will happen before the end of the fiscal,” BoB chairman and managing director MD Mallya told PTI.

This could be done by a preferential allotment, he added.

In March this year, the government had pumped in Rs2,675 crore, thereby increasing its stake to 57.3% from 53% earlier, Mr Mallya said, adding with the infusion of Rs775 crore, the government ownership in the bank will touch the mandated 58%.

Some years ago, the government had decided to maintain at least 58% stake in all its banks.

The development comes even as there is no commitment to the over-a-year-old demand from the nation’s largest lender State Bank of India for capital infusion to meet the mandatory core capital requirement and also fund expansion.

The latest on this request, according SBI chairman Pratip Chaudhuri, is that government may infuse Rs3,000-Rs4,000 crore by the end of the year.

SBI has been seeking the government nod to go in for a Rs20,000 crore rights issue since the beginning of fourth quarter of the past fiscal, but a cash-strapped government has not given its permission as it would have to buy nearly two- thirds of the issue.

As per Monday’s market price of Rs678.75, the per share value for the government works out to Rs852, a 26% premium.

But the final issue price will be based on the last six months' average price, which is as per the SEBI (Securities and Exchange Board of India) formula. The move will also boost the CAR which currently stands at 8.8%.

Last month, the bank had informed BSE that it was looking to raise Rs775 crore through a preferential issue of equity shares or convertible warrants before March.

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