Trading in corporate bonds: RBI upsets SEBI plans
Mumbai: The Reserve bank of India has put a spanner in Sebi's works by proposing a separate platform for banks and financial institutions for trading in corporate bonds. As against this, Sebi was in favour of a uniform platform for trading in corporate bonds.

An RBI committee is understood to have pointed out that banks and financial institutions will face settlement problems if they trade on the platform of the BSE, chosen by SEBI for on-line trading in corporate bonds.

SEBI, based on a report of its internal group, had chosen BSE for putting up the trading platform for corporate bonds and the exchange is almost ready with the software system and awaiting the nod of the regulator.

Following the announcement by the finance minister in the Union Budget to create a single uniform exchange traded market for corporate bonds, SEBI decided to back BSE. However, the government has accepted the R.H. Patil Committee report, favouring multiple trading platforms for corporate bonds.
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E*Trade to make open offer to IL&FS Investsmart
Mumbai: E*Trade Financial plans to acquire up to 13,864,082 equity shares of Rs10 each representing emerging voting capital of IL&FS Investsmart at Rs210 per share. The offer will increase its fully paid-up voting capital in Investsmart to 27.87 per cent. The offer follows the proposed conversion of E*Trade Mauritius' Investsmart GDRs into fully paid equity shares. Post-offer, E*Trade will deploy its resources in India.
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Zenith Birla announces follow-on offer of 2.38 crore equity shares
Mumbai: Yash Birla Group Co, Zenith Birla (India), has announced a follow-on public offer of 2.38 crore equity shares of Rs 10 each at a price of Rs55 per share.

The proceeds of the issue aggregating to Rs131 crore will fund a new facility to manufacture mechanical (CDW) tubes primarily for automotive application and also meet its working capital needs. The company currently makes steel pipes and machine tools. The issue opens on October 16 and closes on October 20.

Net offer to the public is 96.36 lakh equity shares aggregating Rs 53 crore.

Promoters will buy 45.45-lakh equity shares costing Rs25 crore.
Employees and directors of the company, existing shareholders and shareholders of group companies will receive 19.27 lakh equity shares each.

NRIs and FIIs will be allotted 19.27 lakh shares and banks/mutual funds/Indian financial institutions will also get same number of shares. The total issue will form 59 per cent of the post-issue paid-up capital of the company.

The new plant at Khapoli in Maharashtra will have an installed capacity of 60,000 tonnes per annum and commercial production is scheduled for December 2007.
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Sensex, Asian markets down on N Korea nuke test
Markets across Asia fell Monday morning as North Korea conducted a nuclear test. The Kospi closed lower by 2.4 per cent as South Korean military went on a state of high alert.

The Sensex opened with a lower gap at 12,335.8. However select buying at lower levels prevented prices slipping further. It spent the day oscillating in a 168-point range between 12,261.5 and 12,429.7 before ending the day with a minor loss of 7 points. The Nifty ended the day with a loss of 3 points. The turnover on the BSE was slightly lower at Rs 3,363 crore.
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3i Infotech raises €15 million through FCCB
3i Infotech has raised € 15 million by way of an FCCB offering, convertible over a four-and-a-half-year period for its expansion plans. According to the company this could lead to a dilution of about 6-7 per cent to the existing shareholders as it is a sort of conversion to about 4.2 to 4.3 million shares.
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