FMC approval for two brokers to set up overseas subsidiaries
Mumbai: The Forward Markets Commission (FMC) has given permission to two commodities trading companies Mumbai-based Navratan Commodities and Hyderabad-based Karvy Comtrade to set up wholly-owned subsidiaries abroad.

The commodities market regulator had earlier granted similar permission to the Mumbai-based Man Financial Commodities India, Bonanza Commodity, Sunidhi Commodities and the Kolkata-based Dynamic Commodities to set up subsidiaries abroad.

Ashok Mittal, country head of Karvy Comtrade, said this would help Karvy Comtrade set up offices abroad to explore commodities markets abroad. The company wants to open wholly-owned subsidiaries in Hong Kong, Dubai, Singapore and the US to begin with.

Navratan Commodities, a subsidiary of the Anand Rathi group, had taken up membership of Dubai Gold & Commodity Exchange (DGCX) long before the FMC regulation for compulsory membership took effect.

Meanwhile, the FMC has put forth conditions for trading companies before setting up their wholly-owned subsidiaries abroad. This includes registering the overseas subsidiaries proposed to be floated with the appropriate regulatory authority of the foreign country and incorporating it as a separate legal entity. It has also said that the overseas subsidiaries should obtain necessary approval from the respective regulator for taking up commodities-related business activities.
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Claris Life raises $25mn thru ECB
Mumbai: Claris Lifesciences, in the business of manufacturing and marketing sterile parenteral preparations, life saving medicines and hospital products focusing on delivery systems has raised $25 million (Rs110 crore) through external commercial borrowings. Barclays Capital was the lead arranger for the issue. The ECB marks the second fund raising done by Claris this fiscal, after Carlyle's investment in the form of private equity.
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Pentamedia, others barred from accessing markets
Mumbai: SEBI has prohibited Pentamedia Graphics Ltd (PGL) and several other entities from accessing the capital market or dealing in securities, in any manner, directly or indirectly for a period of two years.

PGL issued fake share certificates in July 2004, while the original one issued earlier in February 2004 was still under pledge with the erstwhile Global Trust Bank (now merged with Oriental Bank of Commerce) and had also committed various other violations like false and misleading disclosures, SEBI observed.

Passing the final order, SEBI wholetime member G Anantharaman prohibited PGL, Vijay Advertising, Mayajaal Entertainment, Jay Financial Services and the directors of the respective companies from accessing capital markets for a period of two years.

Other entities prohibited from accessing capital market include Hari, advisor to Jay Financial Services, S Chandrasekaran (former CFO Pentamedia Graphics, and also Director of Mayajaal Entertainment) and Gaverchand Jain (Director, Malu Financial Securities).

The period of prohibition already undergone vide ex-parte and interim order dated May 27, 2005 and the post-decisional order dated October 3, 2005 shall be adjusted while determining the actual period of prohibition, SEBI said.
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NCL Ind to issue pref shares to First Carlyle
Hyderabad: South based cement company, NCL Industries has proposed to opt for a preferential issue of equity shares to First Carlyle Ventures Mauritius or, at its sole discretion, any one of its nominees and/or affiliates. Simultaneously, the company wants to extend the offer to the promoters group as well as the investors. The company has also decided to fix the ceiling for total holding of all FIIs up to 49 per cent of the paid-up share capital. The company told the BSE that the preferential issue to the Mauritian firm would also include without limitation First Carlyle Ventures III and/or any other growth fund/venture capital fund owned or managed by Carlyle Asia Growth Partners III, LP (Investors), one of the major private equity investors, for subscription of 79,41,177 equity shares of Rs10 each at a price of Rs68 per share or the price as calculated under the SEBI guidelines.

The preferential issue of 44,11,765 equity share warrants to promoters group and 19,85,294 equity share warrants to the investors, carrying an entitlement to subscribe to equivalent number of equity shares of Rs10 each, within a period of 18 months from the date of allotment, at Rs68 per share or the price as calculated under the SEBI guidelines.

The board of directors of the company, at its meeting held on December 24, has decided to convene an extraordinary general meeting of shareholders on January 25 to seek the approval of the shareholders for these proposals.
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HSBC MF to launch new global offering
HSBC Mutual Fund has filed a draft offer document with the SEBI for launching a fund that would invest in emerging markets. Called HSBC Emerging Markets Fund, the fund seeks to invest in Argentina, Brazil, Russia, China and Central and East European countries, apart from India, either directly or through "international opportunities funds."

The fund will have both the BSE 200 and MSCI Emerging Market Index as its benchmarks. Markets such as Vietnam and China have been outperformers in 2006, delivering returns of over 100 per cent.

According to the offer document, India is among the more expensive markets in the emerging markets pack, at a price-earnings multiple of 18 times its one-year forward earnings.

In contrast, China and Taiwan trade at 13 times, while Korea and Thailand are at 10 times their forward earnings.

Other mutual funds that invest in overseas markets include Templeton India Equity Income Fund and Principal Global Opportunities Fund.
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Cairn faces allotment problems
Mumbai: The allotment of Cairn India (CIL) shares is facing e a temporary setback after CIL's registrar Intime Spectrum Registry (ISRL) was restrained by a court in Kolkata from signing any new contract or acting in furtherance of any contract after August 18, 2006.

CIL is expected to file its basis of allotment with the Registrar of Companies (RoC) on December 29, 2006 and make its debut in BSE in January. Industry sources believe that ISRL is likely to file a petition in the Supreme Court seeking a stay on the courts order so that the process of share allotment of Cairn's IPO may not be affected. Merchant bankers are of the view that this is more of a regulatory issue than a company issue.
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Deccan Aviation raises Rs29-cr
Mumbai: Deccan Aviation, at a meeting of the board of directors on December 23, approved the allotment of 19,63,640 equity shares of Rs10 each to Investec Bank (UK), London at Rs150 per share.

According to a release issued by the company to the BSE today, Deccam Aviation's paid-up capital stands increased to Rs100.14 crore.
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Ray Ban asked by SC to make open offer
Mumbai: Luxottica Group S.p.A and Ray Ban Indian Holdings Inc have been directed by the Supreme Court, vide order dated December 12, 2006, to make an open offer to the shareholders of RayBan Sun Optics India under Regulations 10 and 12 of the Sebi takeover regulations within 45 days.

Ray Ban told the BSE today that the referral date for calculation of open offer price is April 28, 1999.

The Supreme Court has also directed Luxottica Group S.p.A. to pay the offer price with interest at the rate of 10 pc per annum with effect from August 27, 1999 till the date of payment to all those who were shareholders on August 27, 1999, and continue to be shareholders of RayBan Sun Optics India Ltd on the closure date of the public offer.
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