SEBI bans Karvy, 23 others from markets
Mumbai: SEBI has came down with a heavy hand on stock market intermediaries and banned several entities including the Karvy group of companies, Pratik DP and Indiabulls Securities, for their alleged involvement in the IPO scam.
Several entities like HDFC Bank, IDBI Bank, ING Vysya Bank and Motilal Oswal Securities have been barred from opening fresh demat accounts.

In an interim order issued today after the second round of investigations, the capital market regulator has banned 24 entities from buying and selling securities till further orders.

SEBI also named 15 Depository Participants at National Securities Depository Ltd (NSDL) including Kotak Securities, Citibank, ICICI Bank, Bank Paribas and IndusInd Bank had more than 500 demat account holders sharing the common address. SEBI has asked NSDL to conduct inspection on whether all the demat account holders are genuine and to check whether the Know Your Customer norms of SEBI have been duly complied with and take action against suspect accounts on verification.

The 252-page order issued late in the evening said, "In view of the detailed findings, Karvy DP and Pratik DP prima facie do not appear to be fit to deal in securities market as SEBI-registered intermediaries. Appropriate quasi-judicial proceedings are being initiated against the two DPs." It said Karvy appears to have acted in concert in the gamut of IPO manipulations. G Anantharaman, Whole-Time Member, SEBI, has directed Karvy Stock Broking, Karvy Computer Share, Karvy Investor Services and Karvy Consultants not to undertake fresh business as registrar to the issue and share transfer agent.

SEBI has also pulled up NSDL and CDSL for `grave management lapses'. The findings revealed "contributory negligence" on the part of the depositories and their managements. The order, which is to be treated as a `show-cause notice', has given 15 days time to the parties named for filing objections.
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No stock split now for ONGC
Kolkata: ONGC has not yet decided on a stock split. The company's scrip which appreciated roughly by 60 per cent in value in the last two years closed at Rs1,303 on the BSE. The 52-week low was recorded at Rs805 on April 29, 2005.

Ever since its IPO at a price band of Rs685-750 in March 2004, ONGC shares have been rising. Crossing the Rs800-mark in August of the same year, the scrip ended 2004-05 at a closing price of Rs885 on the NSE. Keeping in tune with the rise in crude prices, the ONGC stock went past the Rs1,300-mark in 2005-06.

ONGC today closed 5.97 per cent lower at Rs1,303.70 against Rs1,386.50 on Wednesday.
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Radico Khaitan to raise $100mn
New Delhi: Radico Khaitan plans to raise $100 million by issue of FCCBs/GDRs/ADRs. The company, whose board today approved the proposal, plans to raise the funds for its expansion programme. Market analysts point out that Radico may be raising money to fund further acquisition — both domestic and overseas.

Radico said that the detailed terms and conditions of the offer/private placement and rights and privileges of the holders of FCCBs/GDRs/ADRs will be determined in consultation with the lead managers, advisors and underwriters to be appointed by the company. The company today also considered and approved the introduction of an Employee Stock Option Scheme.
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India Infoline net rises 94 per cent
Mumbai: India Infoline has reported a 94-per cent jump in its net profit for the quarter ended March 31, 2006, at Rs16.5 crore, as against Rs8.54 crore in the corresponding period last year. The consolidated total income rose by 188 per cent in the quarter to Rs87.70 crore from the last year's Rs29.75 crore, a company press release said. The consolidated net profit for the full year ended March 31, 2006, stood at Rs48.90 crore, an increase of 126 per cent. . The consolidated income grew by 185 per cent to Rs218.5 crore (Rs77.25 crore). The basic earnings per share grew by 45 per cent to Rs11.57, the release said.
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RBI curbs FII entry in real estate IPOs
Mumbai: The Reserve Bank of India (RBI) has put in a stipulation FII subscription to public equity offerings by real estate companies. It said real estate companies can sell their initial or follow-on public stock offerings to FIIs, only if the real estate projects being developed fulfill the conditions for foreign direct investment.

One of the companies planning an issuance has already dropped the idea of marketing shares of its forthcoming equity issue to FIIs; while another firm has positioned itself as a construction company (one which doesn't own the land as distinct from a real estate company) to sidestep the restriction.

Real estate projects can attract FDI up to 100 per cent subject to certain conditions spelt out by the government in April '05. These conditions include minimum area to be developed, minimum capitalisation, no repatriation of original investment before 3 years and ban on sell of under-developed plots.

If a project meets these conditions, the concerned company can attract FII subscription up to 24 per cent equity, and later revise it to the sectoral FDI cap, which is 100 per cent in this case.

However, for a company not willing to meet the stringent project conditions, the FII route could be used to overcome the rules and bring in foreign investment. All the company needs to do is get FIIs that are registered with Sebi to invest in the IPO. This is what the RBI is possibly objecting to.
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UB goes in for 1:10 stock split
Bangalore: United Breweries (UB) has announced a 1:10 stock split plan, making it a Rs1 share from Rs10 nominal value per share all along. The move is aimed at increasing the liquidity of the stock for increased retail investor participation.

The UB stock closed at Rs1,442 on BSE, up 10 percent. Currently, the public shareholding in the company stands at 6.59 per cent. Institutional investors hold 17.12 per cent with FIIs alone holding 14.91 per cent stake in the company. The two equal promoters, Vijay Mallya and Scottish & Newcastle, hold 75 per cent stake. The company has issued 2.16 crore shares in total.
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