SEBI to revamp delisting norms for cos

“We have already started the process of relooking at it (delisting regulations)... The work is going on delisting regulations,” said UK Sinha, SEBI chairman

Having revamped buyback, minimum public shareholding and takeover norms, market regulator Securities and Exchange Board of India (SEBI) is now set to overhaul delisting regulations for companies.


SEBI has already started the process of a relook at the existing delisting norms.


“We have already started the process of relooking at it (delisting regulations)... The work is going on delisting regulations,” said UK Sinha, SEBI chairman.


The capital market regulator has already overhauled norms pertaining to share buyback, minimum public shareholding, preferential allotment and takeovers.


Speaking at a conference in New Delhi on venture capital and private equity, Sinha said the market regulator has also received some suggestions about how the process of reverse book building is allegedly being misused by certain sections.


He also said the government would take a decision on “put and call options” shortly.


“The government procedure is taking a little time but I am quite assured that the government is going to take a call on that very shortly,” he added.


“Put and call options” given to any strategic investor in a company is a routine business globally. Such a provision in shareholder agreements gives the investor an option to either sell the shares (put option), or to buy more shares (call option) on a future date.


To a query on co-ordination between various regulators, the SEBI chief said the issue has been gaining attention worldwide especially since 2008 financial crisis.


“My own impression is that so far as the regulators of financial sector are concerned, now there is a very strong mechanism in place... The FSDC discusses issues related to financial stability and cooperation (among regulators),” he noted.


The Financial Stability and Development Council is a grouping of regulators which was set up by the government.


Peak power deficit narrows to 4.5% in June: CEA

According to the latest data by the CEA, peak power deficit—shortfall in generation during the time when consumption is maximum—for the month of June stood at 4.5% (5,729 MW) of the total demand

Power scenario in the country improved last month as the demand-supply gap narrowed to 4.5% in June this year from 6.3% in May.


According to the latest data by the Central Electricity Authority (CEA), peak power deficit—shortfall in generation during the time when consumption is maximum—for the month of June stood at 4.5% (5,729 MW) of the total demand.


This figure is better than the previous month’s deficit of 6.3% or 8,597 MW.


The demand for electricity in June stood at 1,28,612 MW, of which 1,22,883 MW was met.


Peak power shortage in the southern region nearly halved to 7% in June from 14.3% in May this year.


In terms of megawatts, deficit was to the tune of 5,339 MW in May and 2,353 MW in June.


In the three-month period (April-June), the southern region registered a peak power deficit of 16.7% or 6,508 MW.


Western region, comprising Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Daman & Diu, Dadra and Nagar Haveli and Goa, posted a deficit of 2.5% or 909 MW in June.


The region witnessed the least peak power deficit of 1.8%, or 693 MW, during the April-June period.


Electricity shortage in the eastern region (Bihar, Jharkhand, West Bengal, Odisha, etc) was 2.3% or 351 MW in June and overall shortage of 3.4% or 532 MW during the first three months starting April, this year.


North India logged a peak power deficit 1,915 MW or 4.6%. The northern region suffered an overall shortage of 4.4% or over 1,882 MW during the April-June period, the data showed.


North-eastern region comprising Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura reported a deficit of 9.6% or 201 MW in June. It witnessed a peak power deficit of 9.6% in three months from April to June, this year.


Uptrend threatened: Tuesday Closing Report

If the Nifty holds today’s low, the market may make another attempt to cross 6,000

The market snapped its three-day winning streak and settled lower as the RBI’s move to the reduce rupee volatility ignited worries about slowing economic growth. If the Nifty holds today’s low, the market may make another attempt to cross 6,000. The National Stock Exchange (NSE) reported a higher volume of 60.36 crore shares and a poor advance-decline ratio of 414:922.


The market opened lower following the Reserve Bank of India’s (RBI) measures to hike the Marginal Standing Facility (MSF) by 2% in a bid to tackle the rupee volatility. The MSF now stands at 10.25%. The lowering of the country’s growth forecast to 5.8% in 2013 by the Asian Development Bank also weighed on investors. The Asian markets were mostly higher in early trade on better-than-expected earnings from US corporates.


The Nifty opened 100 points down at 5,931 and the Sensex resume trade at 19,788, a cut of 246 points from its previous close. The market fell to its low in initial trade itself with the indices at 5,911 and 19,650, respectively. Rate-sensitive sectors like realty, banking and capital goods were the top losers following the RBI’s move.


The benchmarks were range-bound in the negative terrain for the entire morning session in the absence of any fresh triggers. Sporadic buying in heavyweights like ITC and Reliance Industries pushed the market marginally higher, albeit in the negative, in the second half of the trading session.


Support from fast moving consumer goods, oil & gas, technology and IT stocks led the benchmarks higher in late trade. The market hit its high around 3.00pm with the Nifty going up to 5,966 and the Sensex rising to 19,881.


While the market snapped its three-day winning streak and settled lower, it closed near the day’s high. The Nifty ended the session 76 points (1.25%) lower at 5,955 and the Sensex fell 183 points (0.91%) to 19,851.


Among the broader indices, the BSE Mid-cap index dropped 1.45% and the BSE Small-cap index declined 0.79%.


BSE Fast Moving Consumer Goods (up 1.81%); BSE Oil & Gas (up 0.74%) and BSE TECk (up 0.05%) were the sectoral gainers while all others settled lower. The top losers were BSE Realty (down 5.84%); BSE Bankex (down 4.83%); BSE Capital Goods (down 2.23%); BSE Metal (down 1.90%) and BSE Consumer Durables (down 1.13%).


Out of the 30 stocks on the Sensex, 13 stocks settled higher. The main gainers were ITC (up 2.30%); Bharti Airtel (up 2.08%); Hindustan Unilever (up 1.55%); ONGC (up 1.28%) and NTPC (up 1.09%). The main losers were ICICI Bank (down 5.61%); State Bank of India (down 4.57%); HDFC (down 3.88%); Larsen & Toubro (down 3.42%) and Jindal Steel & Power (down 3.22%).


The top two A Group gainers on the BSE were—Neyveli Lignite Corporation (up 4.34%) and Biocon (up 3.94%).

The top two A Group losers on the BSE were—Yes Bank (down 9.78%) and Indiabulls Real Estate (down 9.74%).


The top two B Group gainers on the BSE were—Tarapur Transformers (up 20%) and Kohinoor Foods (up 19.98%).

The top two B Group losers on the BSE were—Zenith Infotech (down 19.93%) and Infomedia Press (down 18.98%).


Of the 50 stocks on the Nifty, 21 ended in the in the green. The major gainers were ITC (up 2.61%); Ambuja Cement Company (up 2.03%); BPCL (up 1.92%); Bharti Airtel (up 1.91%) and HUL (up 1.82%). The key losers were DLF (down 7.80%); Jaiprakash Associates (down 7.52%); IndusInd Bank (down 7.51%); IDFC (down 7.11%) and Axis Bank (down 6.18%).


Markets in Asia closed mostly higher on hopes of positive earnings reports after US banking major Citigroup’s earnings beat estimates while a weaker yen boosted the Japanese market.


The Shanghai Composite gained 0.31%; the Hang Seng added 0.04%; the Jakarta Composite rose 0.18%; the Nikkei 225 advanced 0.64% and the Taiwan Weighted settled 0.07% higher. Among the losers, the KLSE Composite shed 0.02%; the Straits Times fell 0.37% and the Seoul Composite declined 0.47%.


At the time of writing, two of the key European markets were in the negative while the US stock futures were trading with minor gains.


Back home, foreign institutional investors were net sellers of stocks totalling Rs227.26 crore on Monday whereas domestic institutional investors were net buyers of shares amounting to Rs54.28 crore.


Turnkey engineering major Punj Lloyd is planning to refinance up to Rs1,400 crore of debt into dollar loans over the next six months to cut costs and soften the impact of a falling rupee. At present, the company's profile of debt, and its business locations are not in harmony. While about 65%-70% loans of Punj Lloyd’s Rs 5,500 crore debt pile is in rupees, 65%-70% of its businesses are outside India. The stock declined 3.92% to Rs1.90 on the NSE.


Infrastructure major IL&FS Engineering today said it has received a Rs284 crore contract for rural electrification works at Amedkarnagar district in Uttar Pradesh under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). The stock climbed 3.94% to settle at Rs33 on the NSE.


Drug major Cipla today said that it has completed the buyout process of South African pharma firm Cipla Medpro for an aggregate consideration of Rs2,707 crore. The listing of Medpro shares on the Johannesburg Stock Exchange (JSE) has been terminated from the commencement of business on 16 July2013, Cipla said. The stock declined 1.34% to Rs402.25on the NSE.


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