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SEBI bars Magadh Stock Exchange
Mumbai: The Securities and Exchange Board of India (SEBI) has asked the Magadh Stock Exchange Association (MSEA) in Bihar, which so far has been acting as an unrecognised bourse, not to assist, regulate or control the dealings in securities until further directions in the interest of investors.

This action was being taken to secure proper management of the stock exchange and suspend trading in the scrip of Bhoruka Financial Services Ltd (BFSL) on any stock exchange, SEBI board member G Anatharaman said in his order dated August 19, 2005.

The stock exchange this month allowed trading in the BFSL scrip, in the permitted trade category, though it was not listed on the MESA. The Bhoruka scrip was listed only on Bangalore Stock Exchange (BgSE). The last trading in the scrip on BgSE was in year 1988 and the last traded price was Rs5.

Rajat Share & Stock Broker Pvt Ltd of Patna facilitated the above transactions illegally without following the Know Your Client criteria. SEBI has directed the Central Depository Services (India) Ltd (CDSL) that the shares of BFSL, lying with DSL in demat form should be impounded till further orders and should not permit transfer of shares till further orders.

DLF Commercial Developers Ltd, who hold a controlling stake in BFSL, are prohibited from dealing in the scrip of BFSL, so long as the above directions are in force, the order said.

SEBI said DLF had sought exemption from making public announcement and public offer while acquiring 98.73 per cent of voting rights from the promoters of BFSL at Rs2,400 per equity share. 26 public shareholders held the remaining equity shares, amounting to 1.27 per cent of the company.

SEBI said that, prima facie, the scrip of BFSL has been manipulated on the floor of MSEA by the deceptive attitude of the parties involved, as the acquirer preferred to pay Rs4,490 despite the fact that order dated June 29, 2005 mentions a negotiated price of Rs2,400.

It is observed that one DLF Commercial Developers Ltd of Delhi was the sole buyer of all the shares and the sellers were BFSL promoters, including Satyanarayan Agarwal, Vivek Agrawal, Umah Agrawal, Satyanarayanan Vivek Kumar HUF, Prabhu Securities Limited, Bhoruka Engineering Ind Ltd.

The capital market watchdog also suspended MESA's officiating executive director C M Pandey from acting in any capacity in any other institution related to securities market for his reckless and unseemly conduct.
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LIC Mutual to double assets under management this year
Chennai: The LIC Mutual Fund, which manages funds of Rs2,988 crore (July figures), plans to double the amount this year, according to its chief executive, N. Mohan Raj.

Speaking to journalists, Raj said the new schemes would be both in equity and debt. He said that currently the fund's equity assets accounted for about 15 per cent of the total assets under management. This, he said, would go up to at least 25 per cent by the end of the year.

He said LIC Mutual was looking for tie-ups with banks for distributing its products. He also said the company was interested in starting a pension fund and was working towards obtaining approvals.

LIC Mutual has a client base of about 2.2 lakh and around 5,700 agents, Raj said.
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SBI Mutual Fund launches multi-cap fund
Mumbai: SBI Mutual fund has launched a multi-cap fund that would invest a minimum of 50 per cent in equity of large-cap stocks and the rest in small and mid-cap stocks. At least 10 per cent of the fund would be invested in mid-cap stocks.

The company also expects to launch its portfolio management service early next month. According to fund officials, regulatory clearances are in place and the company would be launching non-discretionary advisory services.

According to fund officials large-cap stocks are roughly classified as those with market capitalisation of around Rs3,300 crore, while mid-caps would range between Rs330 crore and Rs3,300 crore. Small caps are defined as those with market capitalisation less than Rs330 crore.

The minimum application amount for the scheme is Rs5,000. There is no entry load. The offer remains open till September 16.
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