document.writeln("

Sensex at 8,000: still in comfort zone, says Chidambaram
New Delhi/Kolkata: Finance minister P Chidambaram has set aside fears that the crossing of the 8000 mark by the Sensex was a cause for "worry or concern."
Chidambaram said the Government and the market regulator SEBI were making a careful study of price to earnings ratio of Nifty and Sensex.

The P/E ratio is presently between 14.5 and 15.5. "At this level, they look comfortable," Chidambaram said adding that the crossing of the 8000 mark by the Sensex also showed that business confidence was "very high." We are still in "comfort zone", he added.

Meanwhile Securities & Exchange Board of India chairman M Damodaran too stated that there was no cause for concern over the Sensex crossing the 8,000 mark, attributing the rise in Sensex to brisk buying by foreign and domestic funds. He stated that this showed the confidence of overseas investors in the Indian market. He said that Sebi however was continuously keeping tab on the movement in the stocks witnessing high volatility and maintaining certain checks and balances.

The Sensex crossed the 8,000 mark yesterday taking just 55 days to travel upwards from the 7,000 mark.
Back to News Review index page  

Tribunal asks Sebi to clarify stance on ADR/GDR holdings
Mumbai: In an order passed on Thursday, by the three-member Securities Appellate Tribunal (SAT), the capital market regulator Securities and Exchange Board of India (Sebi) has been asked to specify whether the American depository receipts (ADRs) and global depository receipts (GDRs) should be classified as promoter or non-promoter holdings.

The status of ADR and GDR holdings has been ambiguous so far. The regulator has also been asked by SAT to file an affidavit in this regard.

The SAT panel, headed by Justice Kumar Rajaratnam, presiding officer said, "We trust and hope that a statement by a senior Sebi official will be made on the issue. It is also brought out during submission that there are no guidelines issued by Sebi to include ADRs and GDRs in the category of promoter holding. No guidelines or circulars issued by the stock exchanges (SEs) excluding ADRs and GDRs from the category of non-promoter quota have been brought to our notice."

The order further said, "We direct a senior Sebi official to make its stand clear in the form of an affidavit with respect to other listed companies as to whether ADRs and GDRs have been treated in the promoters category. Whether ADRs and GDRs would amount to public issue of shares and if so, whether they are being considered in the category of non-promoter holding."

The court said, this order has been passed with the intention that it will have a bearing on other listed companies.

Next hearing in the case is slated for September 13, 2005.
Back to News Review index page  

Himatsingka board clears stock split and bonus issue
Bangalore: The board of directors of silk fabric manufacturer and exporter Himatsingka Seide has cleared a simultaneous issue of 1:1 bonus as well as a stock split on Thursday.

Himatsingka is splitting its equity share of Rs10 each into two equity shares of Rs5 each and plans to issue a bonus share for each share held. "The stock split is mainly to enhance liquidity in the market," said P. Chinnaraj, senior vice-president, finance and CFO.

Promoters own about 61 per cent of the stock, while institutional investors hold some 18 per cent and remaining 21 per cent is held by retail investors.

Himatsingka directors also approved plans to raise up to US$60mn, in one or more tranches, through the issue of fresh equity or through convertible share warrants or global depository route or foreign currency convertible bonds.

The company proposes to use part of the proceeds towards setting up new projects and the implementation of the company's business strategy that may include acquisitions and meeting the increasing working capital requirements, amongst others.
Back to News Review index page  

Nagarjuna Const to go in for GDR issue of US$120mn
Hyderabad: Nagarjuna Construction Company Ltd (NCCL) has decided to raise funds to the tune of US$120mn through the issue of `global depository receipts (GDRs) and or foreign currency convertible bonds (FCCBs)' or a combination thereof.

The company informed the BSE that the board of directors meeting held on Thursday has accorded in principle approval.

The funds would be used for investing in the BOT and BOOT projects that have been awarded/likely to be awarded to the company/the joint ventures with which the company is associated.

NCCL is also planning to use the money to meet the increased working capital requirements and the long-term fund requirement of the company.
Back to News Review index page