Virtusa files for IPO in US
Hyderabad: Virtusa Corporation has filed with the US Securities and Exchange Commission for a proposed initial public offering.

JP Morgan Securities Inc will be the sole book-running manager for the offering, with Bear Stearns & Co as the lead manager and Cowen and Company, LLC and William Blair & Company as co-managers.

Virtusa, founded in 1996 and headquartered in Massachusetts, has offices in the US and the UK and global delivery centres in Hyderabad, Chennai and in Sri Lanka.

The IPO would potentially raise up to $90-100 million, and of this, funds would be utilised in expanding facilities in India and Sri Lanka and for working capital.

The company has grown its operations over the last three years in India and its investors include Sigma Partners, Charles River Ventures, Globespan Capital Partners and Focus Ventures.
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Banks & FIs may be allowed to sell stocks of overseas companies
Mumbai: Financial intermediaries may be allowed to offer a product that will enable local investors to invest in stocks of foreign companies up to an annual limit of $50,000.

Rules governing outbound foreign investment administered by the central bank provide for local residents to invest up to $50,000 annually in stocks or property abroad.

However, the catch is that both local and foreign financial intermediaries are forbidden from marketing investment products to investors here. Bankers say banks and institutions are yet to secure an approval from the banking regulator, although, technically, the rules provide for investment abroad for individuals.
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Companies to issue IDRs with Nasdaq help
Kolkata: Nasdaq, US' biggest electronic stock exchange, will help companies listed on it to enter the Indian bourses by issuing Indian Depository Receipts (IDRs).

Several foreign Nasdaq listed companies are active in India and IDRs could be a possible consideration for them to expand in India Nasdaq managing director (Asia Pacific) Ghanshyam Dass said.

The Securities and Exchange Board of India has already proposed some modifications in the IDR regulations to make it more attractive for foreign companies to issue the security in India. The proposal is awaiting Parliament's approval.

Dass said many brokerage houses were taking membership of the American exchange including ICICI Securities and HDFC.

According to an estimate, more than 100 Indian companies were planning to get listed either on Nasdaq or NYSE.
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SEBI may impose 20 per cent day-one price band for re-listing scrips
Mumbai: Companies floating IPOs in future may have limited movement on day one as the Sebi has sought to restrict sharp ups and downs in re-listing of scrips on day-one on the exchanges.

The market regulator has invited comments and suggestions on a proposed 20 per cent circuit filter for scrips where trading restarts after de-merger, amalgamation, revocation of suspension among others.

Currently, stock exchanges do not apply price bands or circuit filters on the day of IPO listing, re-commencement of trading in cases of demerger, amalgamation, capital reduction, scheme of arrangement, restructuring as well as in case if the scrip is already listed on some other stock exchange.

However, after the significant price rise on the first day of trading of scrip Ahluwalia Contracts, where recommencement in trading saw the scrip rise to Rs611.90 compared with a listing price of Rs 101.50 to a closing on debut day at Rs577.80 alarm bells began ringing within Sebi.

Sebi deliberated on the matter in the weekly surveillance meetings with stock exchanges and had proposed a price band of 20 per cent to be applied by exchanges for all cases of re-starting of trading other than IPOs.
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