FIIs can't control firms via pref shares
New Delhi: The government is set to place restrictions on foreign investors seeking voting rights on preference share holdings in lieu of dividend in case of companies where sectoral caps for foreign equity participation apply.A provision to this effect has been included in the Companies Amendment Bill, 2003 being introduced this week.The provision has been introduced to ensure that the preference share route is not used by foreigners to gain control of a corporate entity.The existing provisions of the Companies Act, 1956, allows holders of cumulative preference shares to seek voting rights on all resolutions placed before the board of a company if they have not been paid dividend for two years.
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Funds of funds will provide diversification
Mumbai: The Indian mutual funds sector may soon see the advent of `funds of funds' (FoF), thanks to what looks like a positive view taken by the securities regulator on FoFs. Simply put, an FoF is an investment vehicle whose portfolio is made up of other funds. The concept, which apparently occupies a rather unique place in certain other markets, will be very new for the Indian investor, who is so far not accustomed to funds that take exposure to others of its kind. It is not possible to estimate at such an early stage as to the nature of response that FoFs may generate in this country. It is, however, clear that these will be liked by those who feel the need to invest in a basket of mutual funds over and above individual funds.
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Bharat Forge and HDFC attract market attention
Mumbai: Trading in these counters could attract market attention with both the companies slated to come up with their financial performance in this week. Bharat Forge is holding its board meeting on Monday while HDFC's meeting is slated on May 7. The share price of Bharat Forge has been on a steady uptrend in the recent days while the HDFC stock has recovered some ground after a sharp slide earlier.
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Indices likely to move up
Mumbai: Will the stock market take a decisive direction this week? Well, there is a possibility, according to some analysts. This week the key indices may move up, provided there is fresh infusion of money. The BSE Sensex last week closed with a gain of 1.46 per cent and the S&P CNX Nifty gained 1.51 per cent. After seeing a six-month low at 2904, the Sensex is attempting to scale upwards. According to technical analysts, a strong resistance is located around 3009 points on the benchmark index.
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Big jump in euro-trading volumes
Bangalore: Euro trading volumes in the domestic foreign exchange markets have shown a quantum jump over the last two months.
The daily two-way trading volumes in the domestic foreign exchange markets are currently equivalent to about $1-billion. This trade was entirely dominated by dollars till early this year. However, since the beginning of the April, sources said trading volumes in euros had been mounting. Sources said here that euros currently account for at least 30 per cent of the trading volumes in the domestic foreign exchange markets or about $300 million per day. Till about a month euro volumes comprised barely 10 per cent.
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