26th October - Business Standard

Shailender Saini
Sharad Aggarwal
Section - G

Sensex - 20303.12 up by 137.26
Nifty – 6105.80 up by 39.75
Dollar – 44.36 Rs.
Gold (10 gram) – 19460 Rs.

1.SEBI doubles retail limit, tightens IPO norms
Sebi has increased the application limit for the retail investors to 2 lakh, from 1 lakh at present. From now onwards all the listed companies have to pay their dividend on a fixed date and have to announce the date prior.
Insurance companies which wants to take the initial public route have to disclose the risk factors, specially to the life insurance entities.

2. New regulatory wants for airfare, disputes
The new regulatory should be formed in the aviation sector, which will act as an arbitrator in case of disputes on the fare between customer and airlines. However they will be free to decide on ticket pricing. At present the fares are not regulated by any agency and are decided according to market +demand. None of us know the number of seats being allotted to different buckets or how the system functions. So to remove this, there is a need of regulatory authority in this sector.

3. Shares of SKS microfinance decreased
Yesterday the share price of SKS microfinance slips below the issue price of Rs. 985. the SKS lost nearly a third of its value since it was the high profile listing company in August. It fall 15 % to touch a level of Rs. 894.70 during yesterday trade in BSE (Bombay stock exchange). The slide in SKS stock intensified after its board sacked their managing director Mr. Suresh Gurumani on October 4.
On this huge inflation in the market share of SKS microfinance the SEBI chairperson Mr. C.B.Bhave said “Sebi enquired about SKS. we have not reached on a conclusion whether Sebi rules were violated or not. The process of finding out the facts is on”
The company has come under intense scrutiny in recent weeks, amid reports that high interest rates and coercive loan collection method by MFI’s have resulted in more than 30 suicides in Andhra pardesh.

4. Domestic airlines’ date with T-3 on November 14
The erratic power supply and incomplete under pass forced the government to extend the date up to 14 November to stat the domestic operation at the IGI airport’s T3. The initial date to finish it was July 31. After that it was extended to august 27, again it was extended till 30 October. But now again it is extended to 14th November. We hope this time on pt. Jawaharlal Nehru birthday brings us a good news from this side.

5. Haryana will experience first to dial portability
Haryana is going to experience the mobile number portability (MNP). Through this the subscriber can change their service provider without changing their mobile numbers. It has been delayed thrice less than a year. But now it is done, it will come into existence from the November 25. The service will begin in the Haryana circle on November 8 and go live on November 25. For the rest of the cities it will be implemented in phases. The initial date to start this service in the whole country was 1 April 2010, but it was delayed due to operators testing their networks and a foreign investment promotion board clearance.

6. NTPC will invest Rs.20000 crore thermal plant in M.P
NTPC is going to invest Rs. 20000 crore to set up a plant of the coal based power project which will produce 3960 MW electricity. NTPC signed a memorandum of understanding with the state government and M.P power trading company and is filing in BSE. The project is likely to commissioned during the 12th five year plan 2012-17. The project is expected to increase its capacity to 75000 MW by 2017.
NTPC is also looking at acquiring coal blocks in QUEENSLAND and NEW SOUTH WALES and has identified two three such properties, for which it is in talks with merchant bankers.

7. On day 1, MFIs struggle to make recoveries
Almost two weeks after the Andhra pardesh government issued ordinance to rain in erring micro finance institutions operating in the state which stopped recovering after the ordinance of oct. 15, 2010. The ordinance is insisted on MFIs getting registered with district rule and development agencies, apart from imposing a three imprisonment or a fine of Rs. 100000 on MFIs that harass borrows. In return micro finance institution networks of 44 members challenged the ordinance in High Court.

8. Titan industries net up 65%
The titan industries the watches and jewellery retailer( Tata group)has posted a 64.7 % rise in net profit to Rs. 127.8 crore in second quarter which ended September 30. They reported a 34% rise in sales to RS. 1551.2 crore during the period compare to Rs.1156.4 crore in the same quarter last year.

9. Coal India IPO price fixed at Rs. 245
This issue will fetch 15,100 crore for the government the shares will be listed on November 4. Analysts expects the stock to trade at a premium to global coal producers by giving much lower volatility in a names and large headroom to rise prices in a supply deficit environment. Coal India’s IPO was the largest public issue in the countries corporate history and was subscribed more than 15 times before it closed on Oct. 21. It is aimed at raising over Rs. 40000 crore by the end of this financial year.

10. PepsiCo India Chief Elevated To Head Best Asia And Africa
Today announced that Sanjeev chadha chair person and CEO of PepsiCo of India region would take charge as chief for the middle east and Africa from Jan. 1. He will also be a member of – PepsiCo executive committee, which is PepsiCo’s global leadership team. Manu Anand will succeed Sanjeev chadha as chair person and CEO of India region.