SEBI unveils norms for real estate MFs
Mumbai: The Securities and Exchange Board of India on Monday approved guidelines for real estate mutual funds, allowing them to invest directly in real estate properties in India.

These funds would initially be close-ended schemes. Their units would be compulsorily listed on the stock exchanges and NAVs of the schemes would be declared daily.

Apart from real estate properties in India, the schemes can invest in mortgage (housing lease) backed securities, and equity shares/bonds/debentures of listed and unlisted companies dealing in properties and undertake property development, the SEBI said after its board meeting today.

The board also decided to exempt venture capital funds and foreign venture capital investors from the lock-in period during an IPO only if they hold shares in that company for a period of at least one year at the time of filing draft prospectus with the SEBI.
This would help to ensure that only those who invest in the company with a long-term perspective would be allowed to get the benefit of exemption from requirement of lock-in period.
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FII-to-FII trades: Pantaloon trades at 22% premium
Mumbai: The FIIs counter generated a turnover of Rs144 crore on Monday with a total of 83.98 lakh shares changing hands.

Pantaloon Retail attracted the highest premium of 21.95% on the BSE with 2.03 lakh shares changing hands at Rs1750 as compared to the spot price of Rs1435. The Bank of Baroda attracted the second highest premium of 10% on BSE with 31,900 shares changing hands at an average price of Rs215 as against the spot price of Rs195.45.

With a trading volume of 35.57 lakh shares, the Indian Overseas Bank attracted an average price of Rs84.25 as against the spot price of Rs80.90.
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US CFTC allows trading in BSE futures
Mumbai: The US Commodity Futures Trading Commission's (CFTC) has allowed the Bombay Stock Exchange's Futures contract, based on the Bombay Stock Exchange Sensitive Index, to be offered and sold in the United States.

The CFTC's Office of General Counsel has issued a no-action letter on June 14, 2006, permitting the offer and sale in the United States of the Bombay Stock Exchange's (BSE's) futures contract based on the Bombay Stock Exchange Sensitive Index (Sensex).
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FIIs net sellers of Rs429-cr in F&O
Mumbai: According to data released on the NSE website, the foreign institutional investors (FIIs) were net sellers to the tune of Rs429.39 crore in the futures option segment on Monday.

Even as FIIs were net sellers in sold index futures to the tune of Rs410.44 crore, they sold index options worth Rs146.20 crore. They were net buyers of stock futures to the tune of Rs107.65 crore while they bought stock options worth Rs19.60 crore.

As per data available on the Sebi website - FIIs were net buyers of stocks worth Rs7 crore in the spot market on Sunday. Domestic mutual funds (MFs) were net sellers of shares worth Rs10.85 crore on the same day.
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Bihar based Riga Sugar to raise Rs35-cr through GDRs
Kolkata: The Bihar-based Riga Sugar Co Ltd is firming up its plans to raise Rs35 crore through the GDR (global depository receipts) route towards funding its expansion programme.

According to sources, Riga Sugar has tied up with the London-based merchant banker, Elara Capital Services Ltd, for this purpose and will make a private placement.

The company would seek approval from shareholders at its extra-ordinary general meeting (EGM) scheduled on July 14. The issue is likely to be completed within a month or two after the EGM.

Riga Sugar's plant, located at Sitamarhi district of Bihar, has a capacity of 2,500 tonnes crushed per day (tcd). In the first phase, the capacity will be increased to 4,200 tcd which is likely to go on-stream by November. In the second phase, the capacity will be further increased to 5,000 tcd. Capacity of the bagasse-based co-generation power plant will be increased from 7 MW to 19 MW in 2007-08. Of it, the plant will use around 12 MW and the rest will be sold to the grid.

Riga Sugar is also setting up an ethanol plant of 45 kilo litres per day (klpd) capacity and an extra neutral alcohol plant of 25 klpd capacity. The distillery would be situated in the same location and would be ready by the end of 2006.

For the half-year ended March 31, 2006, Riga Sugar registered a total income of Rs60.22 crore as against Rs47.86 crore in the previous year. Net profit jumped to Rs9.02 crore from Rs3.50 crore.

Currently, O.P. Dhanuka, chairman and managing director of the company, holds approximately 55 per cent in the company.
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Citibank investment cos effect block deal in HDFC shares
Mumbai: A block deal in shares of Housing and Development Finance Corporation on the BSE saw over 74.77 lakh shares change hands between two Citibank group investment companies today.

Citigroup Holdings Mauritius Ltd bought 74.77 lakh shares from Citigroup Global Markets Mauritius Pvt Ltd at Rs1,085 a share, with over Rs800 crore changing hands.

Foreign financial institutions owned a stake of 67.92 per cent in HDFC as on March 31, 2006.

The total foreign shareholding, including that of FIIs, overseas corporate bodies, non-resident individuals, and foreign direct investors, is 79.3 per cent.
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