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Indian
ADRs shine
New
York: Even as the US indices dropped for the second
consecutive day yesterday, with the Dow Jones Industrial
Average slipping by 27 points to 11,098 and the Nasdaq
dropping 14 points to 2,159, Indian ADRs ended with smart
gains.
VSNL
surged 5.4% to $17.90. MTNL and Tata Motors gained over
4% each to $7.08 and $17.51, respectively. ICICI Bank
and Dr.Reddy's were up over 1% each. HDFC Bank, however,
declined 2.7% to $54.29.
The
crude oil futures for July delivery rose $1.80 to settle
at $71.76 per barrel on the NYMEX.
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Supreme
Court upholds Sebi's powers
New Delhi: The Supreme Court on Tuesday upheld
the powers of the capital market regulator, the Securities
and Exchange Board of India (Sebi), to impose penalties
on mutual funds.
The
powers were upheld by the court when it validated the
levy of a Rs.500,000 penalty on Shriram Mutual Fund (SMF)
and a further penalty of Rs.200,000 on its asset management
company by Sebi, for violating the terms of the certificate
of registration and the Sebi (Mutual Funds) Regulations,
1996.
Quashing
an order passed by the Securities Appellate Tribunal against
the levy of penalty, a vacation bench of judges A.R. lakshmanan
and Lokesh Singh Panta said: "The Tribunal has miserably
failed to appreciate that by setting aside the order of
the adjudicating officer the Tribunal was setting a serious
wrong precedent whereby every offender would take shelter
of alleged hardships to violate the provisions of the
Act."
"In
our opinion, mens rea (criminal intention) is not an essential
ingredient for contravention of the provisions of a civil
act."
The
charge against SMF was that it conducted business through
brokers associated with its sponsors in excess of the
permissible limits prescribed under Regulation 25(7)(a)
of the Sebi Regulations on 12 occasions.
Allowing
Sebi's appeal against the Tribunal's order, the bench
said: "the board was set up to promote orderly and
healthy growth of the securities market and for investors'
protection Sebi has been monitoring and regulating the
activities of stock exchanges, mutual funds and merchant
bankers to achieve these goals.
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Deccan
Aviation IPO struggles
Mumbai:
Hit by the recent downturn in the markets, Deccan
Aviation's IPO is struggling to find takers. The offering,
which closes on Tuesday, comprises a fresh issue of 24.55
million shares, or a quarter of the post-issue capital,
and will raise as much as 4.3 billion rupees if priced
at the top of 150-175 rupees per share range.
The
issue was scaled back from a planned $250-$300 million
and delayed due to reported disagreements over the valuation.
Deccan,
which launched its first flight in August 2003 with an
ATR turboprop aircraft, has 30 planes flying to 55 destinations
and has a market share of just above 14 per cent of the
domestic market.
It
posted a net loss of 195 million rupees in the year to
March 2005 on a revenue of 3.2 billion rupees.
Analysts estimate the company will turn a profit in 2007/08.
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Special
margins imposed on commodity contracts
Mumbai: In a proactive measure aimed at curtailing
volatility, MCX has imposed special margins and additional
special margins on commodity contracts.
Additional
and special margins have been slapped on aluminium, brent
crude oil, crude oil, copper, gold, gold mini, gold HNI,
silver, silver HNI, silver mini and zinc contracts.
In
addition, MCX has imposed a special margin on cumin seed
and mentha oil.
An
additional margin of 5 per cent has been imposed on members
having net short positions in their account, as well as
in their clients account, in all contracts of aluminium,
copper, silver, silver mini, silver HNI and zinc. The
additional margin is over and above the initial margin
and special margin, if any, on aluminium, copper, silver
and zinc.
The
exchange has increased the margins to cut excessive speculation
and clamp down on panic selling, officials said.
The
above margin was calculated at the end of the trading
hours on Monday and would be blocked from the available
deposits of the member. Such reduced deposit is considered
for the purpose of trading with effect from today. These
additional special margin and special margin on commodity
futures contracts would be applicable until further notice.
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Allcargo
fixes price band at Rs.625-725
Mumbai: Allcargo Global Logistics Ltd, a logistics
service provider involved in multi modal transport operations,
container freight stations and handling of project cargo,
proposes to enter the capital market on June 1 with a
public issue of 2,079,000 equity share of Rs10 each.
The
price band has been fixed at Rs625-Rs 725. The issue closes
on June 6.
The
issue will constitute 10.26 per cent of the post issue
paid-up capital of the company.
While
51,000 equity shares have been reserved for employees,
60 per cent is earmarked for QIBs, of which 5 per cent
will be allocated to mutual funds and the rest to QIB
bidders including mutual funds. Further, 10 per cent will
be available to Non Institutional Bidders and the retail
portion will be about 30 per cent.
Enam
Financial Consultants Pvt Ltd, along with IL&FS Investmart
Ltd and Inga Advisors Pvt. Ltd. are the book running lead
managers for the issue.
Allcargo
had posted a net profit of Rs37 crore on a sale of Rs204
crore for the first nine months of 2005-06. The company
plans to use the proceeds from the issue for setting up
of container freight station as well as the prepayment
of loans and acquisitions. The company intends to set
up CFS/ICD at Chennai, Mundra and the National Capital
Region.
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Indian
Card Clothing Board recommends dividend
The Indian Card Clothing Company Ltd has informed the
BSE that the board of directors of the company at its
meeting held on May 23, 2006, inter alia, has recommended
final dividend of 25 percent (Rs2.50/- per share of Rs10/-
each) to be paid within 30 days from the date of Annual
General Meeting of the Company.
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