New SEBI norm to hit RSE sub-brokers
Mumbai: Come the month of June and SEBI is all set to implement a new norm, which will bar RSE members from dealing directly with clients. RSEs contribute around 5-6 per cent of the daily turnover of BSE and NSE.

Earlier this year, in the month of March, SEBI had exempted RSE subsidiaries from the regulation, while asking members of BSE and NSE to abide with this norm.

Around 18-20 RSEs had floated their own subsidiary companies and taken membership of BSE and NSE to facilitate trading by its member brokers. The RSE members had become registered sub-brokers of these subsidiary and had been carrying out trading for their clients, issuing contracts and other compliances.

While SEBI officials have not commented on this reversal of stand in a period of only two months, RSE officials have indicated that SEBI has said that there cannot be dual systems.

According to RSE officials, the implementation of the norm would eliminate 3,000-odd sub-brokers, and driving these sub-brokers out of business wouldmake it difficult to revive the RSEs.

However, market sources say that the crackdown has come on account of stock price manipulation and lack of compliance by the clients and sub-brokers of RSEs.

In April, the Finance Minister, P Chidambaram, had said at a function organised by stockbrokers in Mumbai that there was some disturbing news about some unscrupulous persons using RSEs and sub-brokers. In fact, a few people who may have been debarred from broking perhaps are operating from behind the scenes using sub-brokers and RSEs.
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Elder Pharma makes preferential allotment to Citicorp
Mumbai: Mumbai-based pharma company, Elder Pharmaceuticals Ltd, has made a preferential allotment of shares and warrants to Citicorp International Finance Corporation (CIFC), part of the Citigroup Global Investments.

Elder had recently issued and allotted 12,80,000 equity shares and 4,50,000 warrants of the company to CIFC. Promoters now hold 30 per cent equity in the company, according to a spokesperson for Elder Pharma.

The drug company plans to use part of the proceeds of Rs 24.2 crore for the acquisition of brands, a company communiqué has said.

The shares have been allotted at Rs 182 per share and the warrants carry an option to convert into equity shares at Rs 200 per share any time within 18 months from their allotment, the company note said.
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Provogue IPO price band fixed at Rs.130-150
Mumbai: Provogue (India) Ltd, the clothing brand and retailer, is set to enter the capital market with its maiden initial public offer of 40,49,402 equity shares of Rs10 each for cash at a premium which will be fixed through the 100 per cent book building process.

According to a press release, the price band for the issue, which would constitute 25 per cent of the fully diluted post issue paid-up capital of the company, has been fixed between Rs130 and Rs150.

The issue will open on June 10 and close on June 16.
Provogue intends to use the funds raised from the IPO to expand its branded stores chain, extend the existing garment manufacturing facilities and build a new product design and development centre besides meeting enhanced working capital requirements.

The company plans to extend its branded store 'Provogue Studio' network with the addition of 40 new small studios and 21 large format stores (Provogue Megastores). It already has 41 stores in nine cities.

The book running lead managers to the issue are SBI Capital Markets Ltd, and Karvy Investor Services Ltd and Anand Rathi Securities Private Ltd.
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