Citigroup Global fined Rs 2 crore
Mumbai: The Securities and Exchange Board of India has imposed a fine of Rs 2 crore on Citigroup Global Markets Mauritius for not disclosing on time, details of participatory notes issued by it. G N Bajpai, chairman, SEBI, said the fine was imposed on the foreign institutional investor in the second week of December after a process of adjudication.

Asked whether the regulator was moving towards a US-like system of settling offences through negotiated deals, Mr Bajpai said, "In the US, the regulator and offender sit across the table and negotiate the settlement amount. Ours is a judicial process with contentions of both sides duly argued by lawyers. It is not a deal."
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SEBI plans changes in takeover code
Mumbai: The Securities and Exchange Board of India is proposing to amend the Acquisition of Shares and Takeover Regulations to revise the definition of public shareholding and promoter and to reduce the upper limit of shareholding from 75 per cent to 51 per cent for availing creeping acquisition limit of 5 per cent.

Currently, SEBI regulations allow promoters to acquire additional 5 per cent of equity from the market through creeping acquisition up to 75 per cent. In the proposed amendment, SEBI has said that promoters holding more than 51 per cent of the paid-up equity capital of a company cannot use the creeping acquisition route to raise their stake.
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SEBI to introduce margin trading
Mumbai: In an effort to impart liquidity and further increase the depth of the equity market, SEBI has decided to introduce margin trading and stock lending and borrowing system. SEBI chairman G N Bajpai said the decision was taken when the board met in Kolkata on Tuesday. A detailed notification regarding the modalities of the scheme will be issued shortly.

Margin trading allows investors to buy stock by paying a part of the value with the rest being financed by the broker. Such financing helps investors leverage their funds several times. In securities borrowing and lending systems, a player in the market who has sold shares without holding securities (short-selling) borrows securities from others and delivers the shares to the buyer. Under the new margin trading, a broker can borrow funds from banks and RBI-registered NBFCs and on-lend these funds to clients. The new system is different from the prevailing margin trading norms where banks are allowed to lend only to brokers, but brokers in turn cannot on-lend the funds to clients.Under the proposed system, only corporate brokers with minimum net worth of Rs 3 crore can undertake such activities; they can lend up to five times their net worth.
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Rupee up 6 paise
Mumbai: The rupee on Wednesday closed 6 paise higher at 45.56/57 in its value against the dollar as compared to Tuesday's close of 45.6200. The domestic currency opened at 45.60/61, touched an intra-day low of 45.64/65 on RBI buying up dollars, but later strengthened to 45.56/57 as foreign banks and private banks embarked on a selling spree, unwinding their long positions at the end of the day, said a dealer in a private bank.
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