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Fulford’s parent Dashtag rethinks delisting, stock falls by 20%

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Fulford (India)’s parent Dashtag, a subsidiary of Merck & Co.  has postponed its delisting plans, a decision it has attributed to a sharp rise in Fulford’s share. But a reference to Sebi’s decision to amend the delisting regulations indicates some influence from that side as well. Shareholders reacted with dismay, sending the stock down by 20%on Tuesday to Rs 1,417.3–locked at the lower end of the circuit filter. Dashtag informed Fulford in a letter that it has received all approvals needed for it to make an open offer. Continue Reading →

Filed under: Companies, Finance+Markets, Pharmaceuticals & Healthcare, Top News, Delisting, Fulford India, M&A, Sebi

Sebi hikes open offer threshold to 25% from 15%

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The Securities and Exchange Board of India, the capital market regulator, has made key changes to the existing takeover regulations. Sebi was acting upon the report of the Takeover Regulations Advisory Committee, which had submitted its recommendations in July 2010. In the interim, there was a change of guard at Sebi, which may have delayed the decision-making process.

Here are the main changes and impact:

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Filed under: Economy+Policy, Top News, Companies Mergers & Acquisitions, M&A, Open Offer, Sebi, Takeover

Will Pfizer India make an open offer to Wyeth’s shareholders or will the two merge?

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Pfizer is acquiring Wyeth for $68bn in a cash and stock transaction. Both companies have listed subsidiaries in India, Pfizer Limited and Wyeth Limited. The first point of interest for Indian shareholders will be whether this will result in an open offer for Wyeth. It will not, because the transaction has been styled as a merger agreement, in which Pfizer will pay the consideration in cash and stock. Under the Sebi Takeover regulations, an acquisition by way of merger will be exempt from the compulsory open offer clause.

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Filed under: Finance+Markets, Top News, Markets International, Regulatory, Sebi

Sebi issues note on new derivatives contracts

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Sebi has issued a draft report (they have called it a note) on new products to be launched in the derivatives’ segment. The idea is to make the segment more popular, something it has already become as seen by the vast difference in trading volumes in the cash and derivative markets.The note is based on the recommendations of the Committee on Derivatives Market Review led by Prof. M. Rammohan Rao.
 

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Filed under: Finance+Markets, Quick News, derivatives, instruments, Policy From the Regulators, Sebi, Stock markets

SEBI makes PAN mandatory for all IPO investors

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Sebi has amended its DIP guidelines that deal with public issues. Earlier, retail investors who invested up to Rs 50,000 did not need a permanent account number (PAN). That has changed now, with all investors irrespective of application size required to quote their PAN. The move will have no major impact, since most investors would have a PAN. The move does not come as a surprise, as all mutual fund investors too have to quote PAN, from July 2, 2007 in all transactions. This closes what small gaps are there in terms of information about investors. Continue Reading →

Filed under: Finance+Markets, Quick News, IPO, PAN, Policy From the Regulators, Sebi

Sebi clarifies, existing PNs on derivatives can be renewed or rolled over till 18 months

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Sebi issued this clarification today. "Clarifications have been sought on para 1 of the Proposed Measures in the draft discussion paper on Overseas Derivatives Instruments (ODIs), with Indian Exchange Traded Derivatives as underlying. With regard to the above, it is made clear that there is no proposed bar on ODI contracts, expiring this month or in the following months, being renewed, provided the renewal does not go beyond 18 months.
 

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Filed under: Finance+Markets, Top News, derivatives, PN, Policy From the Regulators, Sebi

Sebi draft proposal to rationalize Participatory-note issuance will rock stock markets

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Indian ADRs dipped as global investors tried to assess the implications of Sebi’s draft proposals to restrict the participatory note (PN) factor in the stock market. On the NYSE, the HDFC Bank ADR was down 10.2%, Infosys was down 5.7%, Dr Reddy’s Laboratories was down 3.1%, Wipro was down 3.4%, and ICICI Bank was down 6.5%.
 

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Filed under: Finance+Markets, News Analysis, PN, Policy From the Regulators, Sebi