Sebi bans short sales to arrest downslide
Mumbai: The Securities and Exchange Board of India (Sebi) has imposed restrictions on short sales effective March 8 to curb excessive volatility in share prices. Mr. D R Mehta, Sebi chairman has stated that sale of shares would have to be now followed by deliveries. This would mean that sale position cannot be carried forward. The ban has been made applicable even to proprietary trading by any member of an exchange.

Sebi has however, said that restrictions would be reviewed after a period of two weekly settlements. The new measures have been taken as Sebi is investigating various funds and brokers who allegedly played a role in causing a market slump.
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Abbott makes open offer for Knoll Pharma
Mumbai: Abbott Laboratories has decided to make an open offer to shareholders of Knoll Pharmaceuticals at Rs 328 per share. The acquisition move is follows Abbott’s worldwide acquisition of Knoll Pharma from BASF. The open offer is at a discount to the prevailing market price of about Rs 334.

The open offer will be made by Abbott UK and Abbott US. Kotak Mahindra Capital Company is the lead manager to the offer for 32,400,000 shares, which will open on May 2, 2001 and close on May 31, 2001. The open offer will be for an additional 20 per cent of Knoll’s equity which if fully subscribed, will take Abbott’s holding in Knoll to 71 per cent. Knoll Pharma has a paid-up equity of Rs 16.2 crore comprising 1.62 crore shares of the face value of Rs 10 each.

Abbott US already has a subsidiary in India in the shape of Abbott Laboratories India in which it holds 51 per cent. The open offer could be the first step in an eventual integration of the two companies in the country.
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APFC launches Rs. 350 crore NCD bonds
Mumbai: Andhra Pradesh Power Finance Corporation has launched a private placement of non-convertible debentures to raise at least Rs 350 crore ($75.23 million). The issue offers three investment options.

The first option is seven-year bonds with a five-year put and call option and a coupon of 12.30 per cent. The second is a 10-year bond with a put and call option at the end of seven years. Both carry a coupon of 12.60 per cent. The third option is 12-year bonds with a 10-year put and call option, with a coupon of 12.80 per cent. Coupons on all options are payable semi-annually. The issue is rated A (SO) by the Credit Rating and Information Services of India (CRISIL) and carries a guarantee by the government of Andhra Pradesh.

Andhra Pradesh Power Finance Corporation provides financial assistance to power firms in Andhra Pradesh. The firm had earlier raised over Rs 420 crore through a bond issue which closed on February 20.
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