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SEBI will not ban FIIs from issuing Promissory Notes
New Delhi: SEBI has ruled out banning foreign institutional investors from issuing Participatory Notes, as a fallout of the market crash last year on May 17. "We are not planning to ban PNs," SEBI Chairman M Damodaran said on the sidelines of the CII annual session.

He also dismissed speculations that there was a "spate of convictions in the pipeline" against FIIs for misusing the PN route to bring down the market on May 17 last year. However, he said SEBI was probing eleven more entities for possible involvement in the 'Black Monday' market crash, which occurred just days after the UPA came to power at the centre.

SEBI had issued showcause notices to twelve entities but it has so far pinned only one entity, UBS Securities Asia, for not complying with its rules of furnishing details of PNs issued to other investors. PNs are offshore derivatives with underlying Indian equity.
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Govt. nominees on ONGC board may cause delisting
New Delhi: India's largest firm in terms of market capitalization, ONGC, may face de-listing from the stock exchanges as a Petroleum Ministry directive, appointing additional government directors on the company board, has violated the listing agreement.

Last month, the Petroleum Ministry had appointed V K Sibal, Director General of Hydrocarbons, on the ONGC board. Two officials from the ministry and one from the Department of Economic Affairs were also appointed to the ONGC board taking the total number of government directors on the ONGC board up to four.

Together with seven functional directors, the number of executive directors has gone up to 11 in a board of 14, which is a clear violation of SEBI's guideline that prescribes at least 50 per cent of the board being made up of non-executive directors (independent directors).

According to SEBI sources the composition of the ONGC Board does not conform to the requirements of the Listing Agreement, as SEBI does not recognise Government directors as 'independent directors'.
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SEBI firm on India Inc.'s compliance with clause 49
New Delhi: The market regulator SEBI has issued an ultimatum to the Indian industry for complying with stipulations of appointing independent directors on their Board by December 31. "SEBI, as a market regulator, expects total compliance of corporate governance norms. We have given enough time for those who have to meet the requirement of clause 49," SEBI Chairman M Damodaran said at the CII annual session.

Clause 49 mandates that a company needs to appoint independent directors, whose number should be at least 50 per cent of the total board members.

Damodaran also assured that SEBI will ease rules for small companies to delist from the markets. "We are working on it. Expect some good news in six months," he said.
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Ambani row: SEBI will do "whatever is necessary"
New Delhi: Market regulator SEBI has said that it will take appropriate action on complaints filed by RIL Vice Chairman and Managing Director Anil Ambani, who is currently embroiled in a bitter battle with his elder brother Mukesh on ownership issues in the Reliance group.

"We have received certain letters from the company's Vice Chairman and Managing Director (Anil Ambani). We are acting on those letters... We will do whatever is necessary," SEBI Chairman M Damodaran said on the sidelines of a CII annual session.
Damodaran, however, declined to elaborate. "We know about those issues and we know how to address those issues. We have started looking at those issues."

Without mentioning the probe carried out simultaneously by Ministry of Company Affairs, Damodaran said, "some of the issues are not actionable by us. There are other authorities who need to look into it."
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Sundaram Mutual to launch the Star Fund
Kolkata: The Sundaram Mutual Fund has lined up an equity scheme, which will invest in companies that are global sourcing bases for products and services, or are expected to emerge as one.

The Sundaram Star Fund will pick up companies that are turning out to be global sourcing points for their overseas parents or for other global companies or even on the basis of their own strengths while foraying into international markets. Such companies will be perceived as `star' performers, the offer document lodged with SEBI has mentioned.

Players which are geared to reap the potential of export markets and expect to get at least 25 per cent of their revenues from overseas over a period of five years will be the target companies for this scheme. The examples that have been cited include Cummins, Alfa Laval, Bayer India, BASF, Maruti, Bajaj Auto, TVS Motor, Kirloskar Oil Engines, LMW, SKF Bearings and Bharat Forge.

Investors in Sundaram Star Fund will pay no entry load during the IPO. A 2.25 per cent exit load will be charged for amounts less than Rs5 crore if redeemed within six months from the date of allotment.
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Prudential ICICI to launch services, infrastructure funds
Mumbai: The Prudential ICICI Mutual Fund is seeking to launch two new equity products, the Prudential ICICI Service Industries Fund and the Prudential ICICI Infrastructure Fund.

The service sector fund is an open-ended fund that would invest primarily in companies that are expected to benefit, directly or indirectly, by the expected growth in services sector. The fund would invest 70-100 per cent in equity and equity-related instruments and retains an option to invest up to 30 per cent in debt and money market instruments. The sectors for investment would include auto components, garment accessories, construction, hospitality, and transportation.

Prudential ICICI has also filed an offer document for launching the Prudential ICICI Infrastructure Fund, another open-ended equity fund. The area of investment of this fund would be in companies involved in infrastructure development.

Both these funds stipulate a minimum application amount of Rs5,000. They are available in the growth and dividend options. The schemes charge an entry load of 2.25 per cent for all purchases less than Rs5 crore.

The offer documents of both these schemes are filed with the SEBI and are awaiting regulatory clearance.
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