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RBI says FIIs can now purchase Grasim
Mumbai: Reserve Bank of India has said that foreign institutional investors can now purchase shares in Grasim Industries up to 22 per cent of its paid-up capital.

As the foreign share holdings by FIIs in Grasim had gone below the allowed limit, FIIs can now purchase shares in secondary markets under the portfolio investment scheme subject to the existing ceilings and guidelines.
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Sebi action against penny stocks has desired effect
Mumbai: The Securities and Exchange Board of India's (Sebi) continued efforts to restrict the unwarranted rise in penny stocks, beginning September 21, has worked. Penny stocks have come down and the BSE Small cap index-which represents these stocks--- lost 342 points (5.66 percent to close at 5,698 on September 30, 2005.

Sebi began by attacking the entire group of stocks and then narrowed down to specific stocks and finally to individuals who were involved in ramping up the stock prices. The stock exchanges (SEs) were asked to tighten the surveillance measures by lowering the circuit filters on these stocks to 5 percent and then brought the entire non-specified groups (B1, B2, S, T and TS groups) under the Value-at-Risk (VaR) margin. Under this, the investor was required to pay 100 percent margin on buy transactions. The intention behind this move was to reduce the impact of excessive liquidity in the system.

This step had its desired impact and now Sebi was required to concentrate on those stocks that have shown unusual rise in last six months without any real reason.

Though the move has been mostly welcomed, market players also say that the surveillance measures could have been implemented in a much better way as it has created panic in the markets and investors have been left in the lurch.

They say Sebi should target promoters and operators who are involved in malpractices in such a way that investors are not affected.
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