SAT upholds SEBI's move on tariff rationalisation
Mumbai: The Securities Appellate Tribunal (SAT) has upheld the Securities and Exchange Board of India's (SEBI) move to rationalise the tariff structure and has ordered depositories and their participants not to levy transaction charges when the securities are transferred from one participant to another or even to another depository. Depositories and their participants levy charges on the opening of new demat accounts apart from custody and transaction charges towards the credit of the securities.
Back to News Review index page  

Essar group to delist Aegis from Nasdaq
Mumbai: The Essar group is planning to delist its US-based subsidiary Aegis Communications Group from OTC BB of Nasdaq through a 'short-merger' process. The company has floated ACG Acquisition Inc, a special purpose vehicle (SPV), and Aegis Communications would be merged with the SPV.

The process is expected to be completed by October 31 after which Aegis Communications will cease to be a listed company.

Essar had acquired US-based Aegis BPO Services three years ago under its plans to foray into IT and ITeS businesses in that country.

Aegis has centres in India and US has around 7,000 seats - 3,500 seats each in both the countries. The company was planning to double its capacity to 12,000 seats, with an addition of around 6,000 seats in India and around 2,000 in the US.
Back to News Review index page  

RBI not to clear realty venture funds
Mumbai: The Reserve Bank of India (RBI) says it cannot clear proposals received from foreign venture capital funds for investments in the real estate sector.

The central bank's refusal to clear the proposals comes after a request from the government that proposals worth over $1 billion be cleared.

The government had argued that the proposals had already been cleared by one of the regulators — the Securities and Exchange Board of India, and its non-clearance by RBI would send wrong signals on the credibility of the Indian foreign investment policy.

The RBI earlier also expressed its reservations over the eligibility of real estate as a sector to be promoted for foreign investment due to concerns investments in real estate would further fuel inflation. Housing sector has considerably added to the impact of rising prices on inflation.
Back to News Review index page