SEBI makes changes in MF's NFO expenses
Kolkata: Making changes in initial issue expenses of mutual funds, the Securities and Exchange Board of India said open-ended schemes will be required to meet marketing and expenses connected with sales and distribution from the entry load and not through initial issue expenses.

It said that initial expenses have been permitted only for close-ended schemes and since close-ended schemes will be allowed to charge initial issue expenses, they will not charge entry load, a SEBI circular issued on Tuesday said.

In the case of close-ended schemes (here initial issue expenses are amortised), for an investor who exits before amortisation is completed, an AMC will have to redeem the units only after recovering the balance proportionate unamortised issue expenses.

Sebi said conversion of close-ended or interval schemes to open-ended products (or issuance of new units) should be done only after the balance unamortised amount has been fully recovered from the scheme.
Back to News Review index page  

Holcim's open offer for Gujarat Ambuja rescheduled
Mumbai: Holcim's open offer for Gujarat Ambuja has been rescheduled and will now begin on Wednesday and closes on April 24 according to DSP Merrill Lynch the manager to the offer.

The open offer was earlier scheduled between March 25 and April 13. Holcim is making an open offer to the public shareholders of Gujarat Ambuja to acquire up to 27.43 crore fully paid-up equity shares of Rs2 each. This represents an aggregate of 20.28 per cent of the fully paid-up equity voting capital of Gujarat Ambuja.
Back to News Review index page  

Plethico Pharma IPO price band fixed at Rs.280-300
Mumbai: Plethico Pharmaceuticals has fixed the price band for its initial public offer (IPO) at Rs280-Rs300. The company will raise about Rs110 crore through the IPO to fund, among other things, a brand-acquisition in the over-the-counter (OTC) segment.

Plethico is looking at acquiring a stake in OTC, domestic herbal or nutraceutical company or brand and has set aside an amount of Rs28 crore towards this according to its red herring prospectus. About Rs30 crore will go towards setting up a new plant in Jammu and Kashmir, Rs25 crore will be for scaling-up its manufacturing facility at Kalaria, Indore and Rs13 crore will go towards its research centre. The company will spend another Rs20 crore for the company's corporate office in Mumbai, while Rs28 crore has been earmarked for other working capital requirements. The capital requirements, beyond the funds being raised through the IPO, would be raised through internal accruals said company officials.
Back to News Review index page  

DGCX to launch gold, silver options
Mumbai: Dubai Gold and Commodities Exchange (DGCX) plans to launch gold and silver options this year. The Exchange has also been granted approval by the Emirates Securities and Commodities Authority to launch currency futures.

The exchange which recently commenced trading in silver futures plans to trade futures contracts in three currencies — euro-dollar, yen-dollar and sterling-dollar — with contracts maturing in March, June, September and December each year. The exchange had earlier launched gold futures.
Back to News Review index page