2. Big FIIs cash out after making listing
gains
– Most recent listings have plunged below their IPO
prices partly due to sale by these funds and also
because of unsustainable valuations at which they
are sold compared to their earnings and revenues
– Many investors have started to lock up their gains
as they believe that the current optimism may not
last or that the IPOs would not rise beyond a point
since they are steeply priced
3. DOT, Defence ministry may spar again
– The telecom ministry has sought that all airwaves
controlled by the defence ministry will fall under
the jurisdiction of the proposed spectrum
regulator.
– The department of telecom has prepared the draft
bill on the National Radio Regulatory Authority of
India which will handle all the issues related to
allocation, pricing, monitoring and withdrawal of
all airwaves. The frequencies on which all
communication signals travel.
4. Industrial growth back on track
– Industrial growth appears to have picked up again
after worrying signs of slowdown in the last
couple of months
– PMI is a survey based compilation of
manufacturing sentiment and is considered a
good leading indicators of factory output
– An index level above 50 indicates expansion and
higher the index above that threshold greater the
increase in growth
5. Close foreign loan windows for LLPs
– The finance ministry and Reserve Bank of India
have opposed changes in the external commercial
borrowings policy to allow overseas borrowings by
LLps
– The finance ministry is of the view that while FDI
can be allowed in this form of business entities
but not overseas debt
– The current policy allows companies to raise ECBs
but sole proprietorship firms and partnerships are
prohibited from accessing such debt
6. FINMIN to let SEBI act against insider
trading
– Insider trading regulations will get greater legal
sanctity and permanence with the finance
ministry looking at amendments to include
detailed regulations in the SEBI act
– Insider trading refers to purchase or sale of shares
by someone who possesses inside or prior
information about a company’s performance and
prospects which is not yet available to the
ordinary investors and which if available might
affect its share price.
7. FCCB holders move SEBI against Shree
Ashtavinayak
– Two global hedge funds owned by JP-Morgan, US-
based QVT and high bridge capital have
approached capital market regulator SEBI and the
ministry of corporate affairs against Shree
Ashtavinayak for preventing them from converting
their foreign currency convertible bonds or FCCBs,
into shares.
– These two funds had invested $19 million in FCCBs of
Shree Ashtavinayak in 2007
