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Maruti
IPO success likely to revive the primary market
New Delhi: The overwhelming success of the Maruti
initial public offering (IPO) may revive the primary market.
What seems to have brought investors back to the market,
says Prithvi Haldea of Prime, is not only the fundamentals
and `emotional' issues attached to MUL but also the `safety'
perceived in public sector undertakings. The `feel good'
factor, owing to the recent surge in the secondary market,
as also the phenomenal post-listing returns from most
of the IPOs in the recent past have only helped in this
respect. And this includes the issues by i-flex and Divis
as also the four banks. The performance of Maruti post-listing,
which is due by the middle of this month, will be of great
interest and impact, says Haldea. While an allotment price
of Rs 115 — instead of the price of Rs 125 decided
upon by the authorities — and a greater allocation
for domestic institutions will have helped stability and
rise in prices of the scrip, sustained activity, post-listing,
is expected owing to the heavy subscription which is likely
to lead to a huge unmet demand.
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Deepak
Parekh to head SEBI committee on primary market
New Delhi: The Securities and Exchange Board of
India (SEBI) has reconstituted its Primary Market Advisory
Committee (PMAC), which advises the regulator on policy
matters pertaining to the development of the primary market.
With investor protection high on its agenda, SEBI has
asked its reconstituted PMAC to advise it on the matters
relating to regulation of intermediaries for ensuring
investor protection in the primary market. The terms of
reference of the reconstituted 18-member committee include
advising SEBI on issues related to regulation and development
of primary market. It will also advise SEBI on changes
in legal framework to introduce simplification and transparency
in systems and procedures in the primary market. The committee
will be chaired by Deepak S Parekh, chairman, HDFC. Some
of the other members of the committee are V K Bansal,
chairman, Association of Merchant Bankers of India; Pavan
Kumar Vijay, president, Institute of Company Secretaries
of India; Sucheta Dalal, trustee, Consumer Education and
Research Society; Kirit Somaiya of the Investor Grievances
Forum; Dr Manoj Vaish, ED and CEO, Bombay Stock Exchange;
Ravi Narain, MD, National Stock Exchange.
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Rupee
gains while gilts' situation is mixed
Mumbai: The rupee on Wednesday closed four paise
up at 46.4150/4250 against the dollar from Tuesday's close
of 46.4550/4650 in the local currency markets. There was
good amount of dollar supplies on Wednesday but there
were hardly any takers from the corporate sector. The
Reserve Bank of India was seen sucking away the dollar
liquidity as it has been doing on a consistent basis since
Monday, according to a forex dealer in a public sector
bank. The rupee opened the day at 46.4650/4750, touched
an intra-day high of 46.40 in the absence of central bank
backing and dipped to an intra-day low of 46.4825 once
the central bank was back in the market.
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