Mumbai: Despite global commodity prices coming down, consumer goods maker Hindustan Unilever (HUL) is unlikely to pass on the benefits to the consumers soon.
This remained the major concern for the shareholders at the company’s 79th Annual General Meeting held today at its new campus in Andheri.
Replying to shareholders woes, HUL Chairman, Mr Harish Manwani, said despite inflationary pressures and currency depreciation, the company had managed the cost pressures through judicious pricing, coupled with relentless focus on buying efficiencies and cost savings. “Had we not done that, the prices of the products across categories would have gone up by 15-20 per cent,” Mr Manwani added.
He further said the company has spent Rs 320 crore in the last fiscal on expanding categories, new product launches and innovation both in rural and urban India.
The focus on innovations and execution were taken in personal care and household products, he said, adding that the company will keep on investing in “categories of tomorrow.”
Products for men
Replying to a query from a shareholder on products for men, Mr Manwani said the company has invested enough on expanding several categories such as Axe, Denim and Fair and Lovely for men. Apart from this, the company is working towards reviving Brylcreem to get back the brand’s old glory and charm.
The company, earlier this year, bagged the global licence for Brylcreem from Godrej Consumers, after the latter ended its partnership with Sara Lee, the owner of Brylcreem.
He further said both Bharat and India must converge to make real progress and take the country on the global stage and that prosperity would have to come from villages, towns and cities. He added that rural India is now becoming the epicenter of India’s growth story.
“The explosion in rural consumption and growing competition for scarce resources demands that we work on public-private partnerships to address these challenges by finding innovative solutions and build on the opportunities,” Mr Manwani added.
On challenges faced by rural India, he said agricultural growth could pick up to 4 per cent as envisioned by the Planning Commission.
He went on to add that the cascading impact rural prosperity would have on the national economy, could add up to an additional 2 per cent to the national GDP growth and enable double digit growth.
The company also announced Rs 4 dividend to the shareholders.
Success in my Habit
Tuesday, July 24, 2012
RBI eases derivative contract norm
Mumbai: Banks need not classify hedging of derivative contracts that are terminated partially or fully as restructured accounts. The move, announced by the Reserve Bank of India (RBI) on Monday, would ease banks’ provisioning burden.
Banks have also been permitted to allow payments in instalments if the mark-to-market (MTM) value of the terminated derivative contract, including the foreign exchange forward contract, is not settled in cash.
However, banks have been asked to formulate an appropriate policy, approved by the board, for such instalment payments. The repayment period will not extend beyond the maturity date of the contract.
“Banks should permit repayment in instalments only if there is a reasonable certainty of repayment by the client,” RBI said in a notification on Monday.
In addition, the repayment instalments for the MTM items should be uniformly received over the remaining maturity of the contract and its periodicity should be at least once in a quarter, the central bank said.
Earlier, banks had to make provisions for any change in the parameters of a derivative contract, as it was treated as restructuring.
Also, the MTM value of the contract on the date of restructuring needed to be settled in cash.
When the client is permitted to pay the MTM in instalments, RBI said, it should be done within 90 days of the date of partial or full termination of the derivative contract. If the amount is overdue for 90 days from the date of partial or full termination of the derivative contract, the receivables are to be classified as a non-performing asset (NPA).
Even after the derivative contract was terminated, partially or fully, and MTM was permitted to be repaid in instalments, if the client subsequently decides to hedge the same underlying exposure again by entering into a new contract with a bank, then banks can offer derivative contracts. But the client must have fully re-paid the instalments corresponding to the derivative contract previously used to hedge the underlying exposure.
Banks have also been permitted to allow payments in instalments if the mark-to-market (MTM) value of the terminated derivative contract, including the foreign exchange forward contract, is not settled in cash.
However, banks have been asked to formulate an appropriate policy, approved by the board, for such instalment payments. The repayment period will not extend beyond the maturity date of the contract.
“Banks should permit repayment in instalments only if there is a reasonable certainty of repayment by the client,” RBI said in a notification on Monday.
In addition, the repayment instalments for the MTM items should be uniformly received over the remaining maturity of the contract and its periodicity should be at least once in a quarter, the central bank said.
Earlier, banks had to make provisions for any change in the parameters of a derivative contract, as it was treated as restructuring.
Also, the MTM value of the contract on the date of restructuring needed to be settled in cash.
When the client is permitted to pay the MTM in instalments, RBI said, it should be done within 90 days of the date of partial or full termination of the derivative contract. If the amount is overdue for 90 days from the date of partial or full termination of the derivative contract, the receivables are to be classified as a non-performing asset (NPA).
Even after the derivative contract was terminated, partially or fully, and MTM was permitted to be repaid in instalments, if the client subsequently decides to hedge the same underlying exposure again by entering into a new contract with a bank, then banks can offer derivative contracts. But the client must have fully re-paid the instalments corresponding to the derivative contract previously used to hedge the underlying exposure.
Pearson and Government of Assam announces initiative for vocational training
New Delhi: The Government of Assam (GoA) and education services provider Pearson have announced a joint initiative to provide vocational skills training to school students in Assam, the company said in a press release.
This public-private partnership will serve as a platform for the introduction of the national vocational education qualification framework, a national program to integrate skills, training and qualifications in schools.
Under this initiative, Pearson will set up vocational skills centers in 10 selected government schools, initially offering training in streams like retail and computer hardware and IT. The courses will be introduced for students in standard IX in August 2012, before moving into higher classes with a wider portfolio.
"We are grateful for the opportunity to work collaboratively with GoA. We believe that young people in Assam deserve to be fully prepared for the challenges of an incredibly different and dynamic world of work and our common endeavor will be to achieve that objective," said Khozem Merchant, Pearson India in a statement.
The program curriculum will be designed and administered by two Pearson companies: IndiaCan, and Edexcel, the UK based qualification awarding body.
The skills courses will be held in classrooms and learning labs presided over by trainers especially prepared for the programme. The curriculum will incorporate audio-visual aids, and includes lectures by industry experts and visits to factories to familiarize students with real working situations. The skills training sessions will be held after school hours.
This public-private partnership will serve as a platform for the introduction of the national vocational education qualification framework, a national program to integrate skills, training and qualifications in schools.
Under this initiative, Pearson will set up vocational skills centers in 10 selected government schools, initially offering training in streams like retail and computer hardware and IT. The courses will be introduced for students in standard IX in August 2012, before moving into higher classes with a wider portfolio.
"We are grateful for the opportunity to work collaboratively with GoA. We believe that young people in Assam deserve to be fully prepared for the challenges of an incredibly different and dynamic world of work and our common endeavor will be to achieve that objective," said Khozem Merchant, Pearson India in a statement.
The program curriculum will be designed and administered by two Pearson companies: IndiaCan, and Edexcel, the UK based qualification awarding body.
The skills courses will be held in classrooms and learning labs presided over by trainers especially prepared for the programme. The curriculum will incorporate audio-visual aids, and includes lectures by industry experts and visits to factories to familiarize students with real working situations. The skills training sessions will be held after school hours.
With 54% green cover, Gandhinagar India's tree capital
Ahmedabad: Gujarat's capital - Gandhinagar - could well be India's tree capital. The latest figures of a census conducted by the state government show that 53.9% of its 5,700-hectare area is covered with trees.
Effectively, there are 416 trees for every 100 people in the city. This is more than any other city in the country. The census was conducted by the social forestry department along with various municipal corporations and urban development authorities.
Drive 35 km out of Gandhinagar and the scenario changes drastically in Ahmedabad where there are just 11 trees for every 100 people. While there are as many as 8.66 lakh trees in the state capital, the population is just 2.08 lakh people. At this rate, there is 15 sq m land of trees for every person. The smaller municipal corporations in the state like Vadodara, Junagadh and Bhavnagar have better average than Ahmedabad.
According to Forest Survey of India, Bangalore, Chandigarh and Delhi have a green cover of 18.9%, 14.9% and 11.9%, respectively.
H S Singh, additional principal chief conservator of forests, social forestry, said, "Gandhinagar's tree cover is comparable with the best in the world. Atlanta in the US, for instance, is considered among the greenest cities globally and has exactly the same percentage of land under tree cover as Gandhinagar's."
"Gandhinagar was just a barren piece of land when work first started to turn it into a state capital in 1965," Singh added. "The social forestry division was given the task of greening the area. Ever since, more than 35 lakh trees have been planted and their survival rate has been very high. Also, in 1991 land reserved for development was used for plantation, making the city one of the greenest."
The eight municipal corporations in Gujarat have 33.01 lakh trees over an area of 1.33 lakh hectares. The overall tree density in the municipal corporations was just 22 trees for every 100 persons on an average.
Effectively, there are 416 trees for every 100 people in the city. This is more than any other city in the country. The census was conducted by the social forestry department along with various municipal corporations and urban development authorities.
Drive 35 km out of Gandhinagar and the scenario changes drastically in Ahmedabad where there are just 11 trees for every 100 people. While there are as many as 8.66 lakh trees in the state capital, the population is just 2.08 lakh people. At this rate, there is 15 sq m land of trees for every person. The smaller municipal corporations in the state like Vadodara, Junagadh and Bhavnagar have better average than Ahmedabad.
According to Forest Survey of India, Bangalore, Chandigarh and Delhi have a green cover of 18.9%, 14.9% and 11.9%, respectively.
H S Singh, additional principal chief conservator of forests, social forestry, said, "Gandhinagar's tree cover is comparable with the best in the world. Atlanta in the US, for instance, is considered among the greenest cities globally and has exactly the same percentage of land under tree cover as Gandhinagar's."
"Gandhinagar was just a barren piece of land when work first started to turn it into a state capital in 1965," Singh added. "The social forestry division was given the task of greening the area. Ever since, more than 35 lakh trees have been planted and their survival rate has been very high. Also, in 1991 land reserved for development was used for plantation, making the city one of the greenest."
The eight municipal corporations in Gujarat have 33.01 lakh trees over an area of 1.33 lakh hectares. The overall tree density in the municipal corporations was just 22 trees for every 100 persons on an average.
Govt approves ninth manufacturing zone at Nagpur
New Delhi: The Minister of Commerce, Industry and Textiles Mr Anand Sharma announced the plan to set up of India’s ninth National Investment and Manufacturing Zone (NIMZ) at Nagpur on Saturday.
The proposed NIMZ, the third in Maharashtra, would be situated in Kuhi and Umred Taluka of Nagpur district on 6,280 hectares, an official release said.
Further, it is likely to attract investment of Rs 25,000 crore and provide direct and indirect employment to about 2,60,000 people, the statement added.
“I am happy to inform that ‘in-principle’ approval has been accorded to the proposal given its significance,” Mr Sharma said, after inaugurating the National Institute of Intellectual Property Management (NIIPM) in Nagpur.
Later in the day, the Minister also announced that the Technology Upgradation Fund Scheme for the textile industry has been extended for the 12th Five Year Plan.
“There will be more allocation under the 12th Plan than under the 11th Plan, so those in textiles sector must feel assured that the Government is conscious what their needs are,” he said.
The proposed NIMZ, the third in Maharashtra, would be situated in Kuhi and Umred Taluka of Nagpur district on 6,280 hectares, an official release said.
Further, it is likely to attract investment of Rs 25,000 crore and provide direct and indirect employment to about 2,60,000 people, the statement added.
“I am happy to inform that ‘in-principle’ approval has been accorded to the proposal given its significance,” Mr Sharma said, after inaugurating the National Institute of Intellectual Property Management (NIIPM) in Nagpur.
Later in the day, the Minister also announced that the Technology Upgradation Fund Scheme for the textile industry has been extended for the 12th Five Year Plan.
“There will be more allocation under the 12th Plan than under the 11th Plan, so those in textiles sector must feel assured that the Government is conscious what their needs are,” he said.
Pranab Mukherjee elected 13th President of India
New Delhi: Pranab Mukherjee was on Sunday elected the 13th President of India, capping the long innings of the veteran Congress leader and the party's chief troubleshooter over the past eight years. The former finance minister and the candidate of the ruling UPA, who garnered 69.3% votes, defeated his rival PA Sangma, the candidate backed by AIADMK, BJD and NDA (minus Shiv Sena and JD-U), by a bigger than expected margin.
Mukherjee's victory, though expected, turned out to be sweeter for Congress because not only did it end up with a show of a united alliance but also managed to drill a few more holes into the rival camp. While Congress expected its candidate to win 102 votes in BJP-ruled Karnataka, Mukherjee ended up with 117 votes in the 224-member assembly as a few BJP members appeared to have voted against the party line. Sangma got 103 votes, while three votes were declared invalid and one MLA did not vote.
"I would like to thank people of this great country for conferring this distinction by electing me to the high office," Mukherjee said after results. "Now, they have entrusted me with the responsibility to protect, to defend and to preserve the Constitution as President of the Republic. I will try to justify, in a modest way as I can, to be trustworthy to the people."
Mukherjee, who was leader of the Lok Sabha for the past eight years and held the portfolios of external affairs and defence, besides finance, in his career spanning more than four decades, will be sworn in as President on Wednesday. The Chief Justice of India will administer the oath of office to the President-elect, who will take over from Pratibha Patil, at a ceremonial function at 11.30 am in the Central Hall of Parliament.
Sangma while congratulating his rival alleged that the government had induced opposition-ruled states through financial packages to garner support for Mukherjee. "We need election code of conduct for presidential poll," he said. Sangma said the country had lost the opportunity to support the tribals of India.
Mukherjee won 69.3% votes in all. Of the 748 members of Parliament who voted, Mukherjee won 527 votes with a value of 3,73,116 while Sangma got 206 votes with a value of 1,45,848. Fifteen votes, including that of SP chief Mulayam Singh Yadav, were declared invalid. Of these, nine would have gone in favour of Mukherjee.
Besides Congress and its partners in the ruling coalition, Mukherjee won the support of UPA's outside supporters, including SP and BSP, and even a few opposition parties, such as CPM, JD(U), Shiv Sena, AIFB and JMM.
Sangma scored in BJP-ruled states, including Gujarat, Madhya Pradesh, Chhattisgarh, Himachal Pradesh and Goa. However, in Jharkhand, where BJP shares power with JMM, Sangma got fewer than expected votes of only 20 MLAs. Despite campaigning as a tribal candidate, Sangma also lost out to Mukherjee in the northeastern states, including his home state of Meghalaya. He drew a blank in Nagaland, where 58 MLAs voted for Mukherjee. In Mizoram, Mukherjee got 32 votes while Sangma polled 7; in Manipur, Mukherjee won 58 votes compared with just one for Sangma; Meghalaya yielded 34 votes for Mukherjee while Sangma got 23 votes.
Mukherjee swept Kerala and his home state of West Bengal. "In the last one month I have been privileged to visit a large number of states...The warmth of the ordinary people was really remarkable. I have received much more from the people of this great country than I have given," he said.
Mukherjee's victory, though expected, turned out to be sweeter for Congress because not only did it end up with a show of a united alliance but also managed to drill a few more holes into the rival camp. While Congress expected its candidate to win 102 votes in BJP-ruled Karnataka, Mukherjee ended up with 117 votes in the 224-member assembly as a few BJP members appeared to have voted against the party line. Sangma got 103 votes, while three votes were declared invalid and one MLA did not vote.
"I would like to thank people of this great country for conferring this distinction by electing me to the high office," Mukherjee said after results. "Now, they have entrusted me with the responsibility to protect, to defend and to preserve the Constitution as President of the Republic. I will try to justify, in a modest way as I can, to be trustworthy to the people."
Mukherjee, who was leader of the Lok Sabha for the past eight years and held the portfolios of external affairs and defence, besides finance, in his career spanning more than four decades, will be sworn in as President on Wednesday. The Chief Justice of India will administer the oath of office to the President-elect, who will take over from Pratibha Patil, at a ceremonial function at 11.30 am in the Central Hall of Parliament.
Sangma while congratulating his rival alleged that the government had induced opposition-ruled states through financial packages to garner support for Mukherjee. "We need election code of conduct for presidential poll," he said. Sangma said the country had lost the opportunity to support the tribals of India.
Mukherjee won 69.3% votes in all. Of the 748 members of Parliament who voted, Mukherjee won 527 votes with a value of 3,73,116 while Sangma got 206 votes with a value of 1,45,848. Fifteen votes, including that of SP chief Mulayam Singh Yadav, were declared invalid. Of these, nine would have gone in favour of Mukherjee.
Besides Congress and its partners in the ruling coalition, Mukherjee won the support of UPA's outside supporters, including SP and BSP, and even a few opposition parties, such as CPM, JD(U), Shiv Sena, AIFB and JMM.
Sangma scored in BJP-ruled states, including Gujarat, Madhya Pradesh, Chhattisgarh, Himachal Pradesh and Goa. However, in Jharkhand, where BJP shares power with JMM, Sangma got fewer than expected votes of only 20 MLAs. Despite campaigning as a tribal candidate, Sangma also lost out to Mukherjee in the northeastern states, including his home state of Meghalaya. He drew a blank in Nagaland, where 58 MLAs voted for Mukherjee. In Mizoram, Mukherjee got 32 votes while Sangma polled 7; in Manipur, Mukherjee won 58 votes compared with just one for Sangma; Meghalaya yielded 34 votes for Mukherjee while Sangma got 23 votes.
Mukherjee swept Kerala and his home state of West Bengal. "In the last one month I have been privileged to visit a large number of states...The warmth of the ordinary people was really remarkable. I have received much more from the people of this great country than I have given," he said.
Friday, July 20, 2012
Strides Arcolab unit gets USFDA nod for anti-cancer injection
angalore: Onco Therapies, a wholly owned subsidiary of pharma company Strides Arcolab, has received two US FDA (Food and Drug Administration) approvals for ‘Fluorouracil Injection USP’.
Fluorouracil is part of the oncology portfolio licensed to Pfizer for the US market and expected to be launched shortly, a press statement said.
Fluorouracil is a chemotherapy drug which interferes with cells making DNA and RNA, and stops the growth of cancer cells. It is used to treat several types of cancer including colon, rectum, and head and neck cancers.
According to the statement, Fluorouracil is among the products in the drug shortage list of USFDA. According to IMS data, the US market for generic Fluorouracil is approximately $14 million.
Fluorouracil is part of the oncology portfolio licensed to Pfizer for the US market and expected to be launched shortly, a press statement said.
Fluorouracil is a chemotherapy drug which interferes with cells making DNA and RNA, and stops the growth of cancer cells. It is used to treat several types of cancer including colon, rectum, and head and neck cancers.
According to the statement, Fluorouracil is among the products in the drug shortage list of USFDA. According to IMS data, the US market for generic Fluorouracil is approximately $14 million.
Pratt Whitney Opens full-time research office at Indian Institute of Science (IISc), Bangalore
New Delhi: Pratt & Whitney, a United Technologies company, opened an office at the Indian Institute of Science to increase its long-term commitment to conduct advanced research in gas turbine jet engine technology in India. The office will support a full-time endowed professorship in gas turbine engineering at the institute and visiting Pratt & Whitney employees and executives who conduct research at the institute. The company recently increased its funding commitment to the professorship to make the chair self-sustaining and will announce a full-time professor in the near future. The company works with the IISc on advanced research initiatives that support the design and development of more efficient and environmentally friendly gas turbine engines. The work is focused on advanced research in propulsion system technology.
"IISc has outstanding technical capabilities that complement our research needs. This is an excellent opportunity for Pratt & Whitney to partner with the institute to develop advanced technologies for future generations of our environmentally friendly propulsion systems," said Al Brockett, VP, Pratt & Whitney Engineering-Module Centers. "Our research at the institute further strengthens the relationships between Pratt & Whitney, United Technologies, the Indian educational system and the Indian government." He added.
The research will help Pratt & Whitney develop advanced technologies for future generations of its new PurePower geared Turbofan engine, which sets a new standard of performance for aircraft engines with double-digit reductions in fuel consumption, emissions, engine noise, and operating costs for airline customers. Pratt & Whitney recently signed agreements with two airlines in India - IndiGoand GoAir - to provide PurePower engines for their Airbus A320neo family aircraft. It is is supplying F117 engines to the IAF to power Boeing C-17 Globemaster III airlifters purchased by India.
"By opening a full-time office at the institute and increasing its long-term commitment to the Indian Institute of Science, Pratt & Whitney will have a visible presence here to attract talent to the gas turbine engine field. We expect to be in a position to train and recommend future engineers to key Indian R&D organizations, national laboratories and business partners, including Infotech," said Prof BN Raghunandan, former Chairman of the department of aerospace engineering, IISc.
"IISc has outstanding technical capabilities that complement our research needs. This is an excellent opportunity for Pratt & Whitney to partner with the institute to develop advanced technologies for future generations of our environmentally friendly propulsion systems," said Al Brockett, VP, Pratt & Whitney Engineering-Module Centers. "Our research at the institute further strengthens the relationships between Pratt & Whitney, United Technologies, the Indian educational system and the Indian government." He added.
The research will help Pratt & Whitney develop advanced technologies for future generations of its new PurePower geared Turbofan engine, which sets a new standard of performance for aircraft engines with double-digit reductions in fuel consumption, emissions, engine noise, and operating costs for airline customers. Pratt & Whitney recently signed agreements with two airlines in India - IndiGoand GoAir - to provide PurePower engines for their Airbus A320neo family aircraft. It is is supplying F117 engines to the IAF to power Boeing C-17 Globemaster III airlifters purchased by India.
"By opening a full-time office at the institute and increasing its long-term commitment to the Indian Institute of Science, Pratt & Whitney will have a visible presence here to attract talent to the gas turbine engine field. We expect to be in a position to train and recommend future engineers to key Indian R&D organizations, national laboratories and business partners, including Infotech," said Prof BN Raghunandan, former Chairman of the department of aerospace engineering, IISc.
New body for faster clearance of infra projects
New Delhi: To expedite project implementation, the government on Thursday announced a single-window mechanism under the Cabinet secretary for review and issue of clearances associated with major projects.
After putting in place a problem-resolution mechanism for infrastructure projects and an investment tracking system for projects over Rs 1,000 crore directly under the Prime Minister’s Office (PMO), the government has decided to set up a project clearance board, on the lines of the Foreign Investment Promotion Board (FIPB), chaired by the Cabinet secretary, for review and issue of one-time clearances, including security clearance.
The Board will include representatives from the ministries of home, defence, environment and forests, commerce, coal, departmenmt of space and other infrastructure and energy-related ministries and departments. The decision was taken at a meeting held at the PMO to review the status of clearances of oil and gas blocks awarded under the New Exploration Licensing Policy.
The Board will meet monthly. Ministries would report to the Board on the status of clearances after following their internal processes.
For the petroleum and natural gas sector, the special cell for clearances being set up in the Directorate General of Hydrocarbons will act as the secretariat. A common mechanism for all sectors will be evolved soon and the Board set up in the coming weeks, said a government.
Explaining the need for such an entity, the PMO said one of the biggest hurdles to speedy implementation of projects was the delays faced by project implementing agencies and private companies with concessions, in obtaining security-related clearances from diverse agencies.
“For example, progress in exploration work in over 70 oil blocks awarded under Nelp has slowed due to lack of clearances. There are similar problems in other areas such as ports and infrastructure sectors,” it stressed.
There was a need to have an institutionalised mechanism for issuing time-bound clearances on the lines of the model for clearing foreign investments in the form of the FIPB, where foreign investment clearances were given through regular meetings, outlined the PMO. “A need for a similar mechanism was felt for other clearances, so that the issue of delayed clearances is resolved.”
After putting in place a problem-resolution mechanism for infrastructure projects and an investment tracking system for projects over Rs 1,000 crore directly under the Prime Minister’s Office (PMO), the government has decided to set up a project clearance board, on the lines of the Foreign Investment Promotion Board (FIPB), chaired by the Cabinet secretary, for review and issue of one-time clearances, including security clearance.
The Board will include representatives from the ministries of home, defence, environment and forests, commerce, coal, departmenmt of space and other infrastructure and energy-related ministries and departments. The decision was taken at a meeting held at the PMO to review the status of clearances of oil and gas blocks awarded under the New Exploration Licensing Policy.
The Board will meet monthly. Ministries would report to the Board on the status of clearances after following their internal processes.
For the petroleum and natural gas sector, the special cell for clearances being set up in the Directorate General of Hydrocarbons will act as the secretariat. A common mechanism for all sectors will be evolved soon and the Board set up in the coming weeks, said a government.
Explaining the need for such an entity, the PMO said one of the biggest hurdles to speedy implementation of projects was the delays faced by project implementing agencies and private companies with concessions, in obtaining security-related clearances from diverse agencies.
“For example, progress in exploration work in over 70 oil blocks awarded under Nelp has slowed due to lack of clearances. There are similar problems in other areas such as ports and infrastructure sectors,” it stressed.
There was a need to have an institutionalised mechanism for issuing time-bound clearances on the lines of the model for clearing foreign investments in the form of the FIPB, where foreign investment clearances were given through regular meetings, outlined the PMO. “A need for a similar mechanism was felt for other clearances, so that the issue of delayed clearances is resolved.”
SEBI sets guidelines for offer-for-sale by promoters
Mumbai: The Securities and Exchange Board of India has laid down comprehensive guidelines for promoters seeking to offload stake via offer-for-sale (OFS).
The guidelines incorporate all representations and suggestions received from marketmen.
Thursday’s OFS guidelines replace all the three SEBI circulars dated February 1, February 23 and February 27.
Norms
SEBI has mandated that the OFS facility would be available only on the NSE and the BSE.
OFS can be used by promoters of companies who wish to attain minimum public shareholding of 25 per cent by June 2013.
Eligible promoters should not have bought or sold the company shares 12 weeks before and should not buy or sell shares 12 weeks after the OFS.
Within this cooling off period of plus-12 weeks, promoters can sell through OFS or institutional placement programme (IPP) with a gap of two weeks between successive offers, said SEBI.
This is also applicable to promoters who had already offered shares through OFS/IPP.
All non-promoter entities are eligible to buy under the OFS. The offer size will be a minimum of Rs 25 crore or that amount which enables the promoter to achieve a minimum public shareholding of 25 per cent in a single tranche.
The advertisement and offer expenses related to the OFS shall be borne by the seller (promoter).
No part cancellation
OFS can be withdrawn before opening and another offer can be made by the promoter only after a cooling off period of 10 trading days.
The seller cannot cancel the offer when bidding is on. In case of insufficient demand at or above the floor price, the seller has the choice to either conclude the offer or cancel it in full.
The seller may also choose to conclude or fully cancel the offer in case of default in settlement.
Floor price is the minimum price at which the seller wishes to sell a share.
SEBI has directed exchanges to amend by-laws rules and regulations; notify member brokers and disseminate the circular on their Web sites.
The guidelines incorporate all representations and suggestions received from marketmen.
Thursday’s OFS guidelines replace all the three SEBI circulars dated February 1, February 23 and February 27.
Norms
SEBI has mandated that the OFS facility would be available only on the NSE and the BSE.
OFS can be used by promoters of companies who wish to attain minimum public shareholding of 25 per cent by June 2013.
Eligible promoters should not have bought or sold the company shares 12 weeks before and should not buy or sell shares 12 weeks after the OFS.
Within this cooling off period of plus-12 weeks, promoters can sell through OFS or institutional placement programme (IPP) with a gap of two weeks between successive offers, said SEBI.
This is also applicable to promoters who had already offered shares through OFS/IPP.
All non-promoter entities are eligible to buy under the OFS. The offer size will be a minimum of Rs 25 crore or that amount which enables the promoter to achieve a minimum public shareholding of 25 per cent in a single tranche.
The advertisement and offer expenses related to the OFS shall be borne by the seller (promoter).
No part cancellation
OFS can be withdrawn before opening and another offer can be made by the promoter only after a cooling off period of 10 trading days.
The seller cannot cancel the offer when bidding is on. In case of insufficient demand at or above the floor price, the seller has the choice to either conclude the offer or cancel it in full.
The seller may also choose to conclude or fully cancel the offer in case of default in settlement.
Floor price is the minimum price at which the seller wishes to sell a share.
SEBI has directed exchanges to amend by-laws rules and regulations; notify member brokers and disseminate the circular on their Web sites.
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