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SEBI
order on UBS set aside by SAT
Mumbai: The Securities Appellate Tribunal (SAT) has
set aside the order of Securities and Exchange Board of
India (SEBI) on UBS Securities with regard to May 17,
2004 stock market crash saying that SEBI's 'Know your
client' requirements were vague and further that UBS had
not done anything that caused danger to the market. Pursuant
to its order SAT has also lifted the trading ban on UBS
with immediate effect.
According
to SEBI, UBS made substantial profits of Rs42 crore by
selling in the cash market against short positions built
up in the futures market. It had also accused UBS of not
cooperating in the investigation into the events of May
17, 2004 and delaying providing the names of its clients'
on grounds of confidentiality agreements in various jurisdictions.
SAT
has also provided that SEBI can carry on its investigations
but should provide greater clarity on its "Know Your
Client" clause.
As
per the provisions of this clause, FII's operating in
India, are allowed to issue offshore derivative instruments,
such as participatory notes or equity-linked notes, to
regulated entities in different parts of the world, subject
to regulatory jurisdiction. The essential condition behind
this issue is that the FII must "Know the Client"
to whom these PNs are issued, so that the ultimate beneficiary
of these PNs can be established.
The
clause is intended to prevent unregulated and unregistered
entities from using these instruments in order to indulge
in money laundering or worse.
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to News Review index page Sasken
shares close at 78.67 per cent premium on debut
Mumbai: Software company Sasken Communication Technologies
Ltd debuted on the Bombay Stock Exchange on Friday, opening
trade at Rs400, a 53.8 per cent premium to its initial
public offer price of Rs260 a share. It closed at Rs464.55,
up Rs204.55, or 78.67%, with volumes of 87,89,145 shares
on the BSE. It touched an intraday high of Rs575 and an
intraday low of Rs400.
The company entered the capital market on August 11 with
a public issue of 50 lakh equity shares of Rs10 each,
comprising 5 lakh equity shares of Rs10 each reserved
for the eligible employees of the company and a net offer
to public of 45 lakh equity shares of Rs10 each.
The issue was subscribed 78.63 times. Its price band was
fixed at Rs230-260.
The objective of the issue was to raise capital for setting
up campus for software development in Bangalore and to
meet general corporate purposes, including strategic investments,
acquisitions and joint ventures.
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Crisil
assigns AAA (SO) ratings for Tata Motors asset-backed
securities
New Delhi: Crisil has assigned a provisional highest
safety rating 'AAA(SO)' to Tata Motors' asset-backed securities
worth Rs290 crore.
Tata Motors had issued two securities schemes worth Rs162.4
crore and Rs99.92 crore with floating interest rates,
and another security scheme worth Rs28.38 crore with a
fixed coupon rate, the company informed the BSE.
The provisional ratings would become valid once the legal
documentation of the transaction is duly executed to the
satisfaction of Crisil, which would then issue a compliance
letter.
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Sterling
Biotech FCCBs to raise US$140mn
Mumbai: Sterling Biotech Ltd has said that it would
raise US$140mn through the issue of FCCBs, which would
be listed on the Singapore Stock Exchange.
The FCCBs carry a 0.50 per cent coupon rate payable annually
with a yield to maturity of 6.45 per cent and are redeemable
after five years and one day from closing date, Sterling
Biotech informed the Bombay Stock Exchange.
The bonds are convertible into equity shares of the company
at any time after November 9, 2005 at a conversion price
of Rs184.86 per share, it said.
Barclays Capital is the lead manager and sole book-runner
for the issue of the bonds.
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