The government has fixed a floor price of R510 for diluting a 10% stake in Oil India (OIL) through the offer for sale (OFS) route. The sale is expected to fetch around R3,066 crore. The floor price, which was disclosed to the stock exchanges after market hours, is at a discount of 5.38% when compared to Thursdays closing price. On BSE, the shares gained 2.29% or R12.05 to close at R539.20. Since the beginning of December, the scrip has risen over 17%. The Sensex has gained nearly 4% in the same period. The stake sale has been scheduled on February 1 when the government will auction 6.01 crore shares (10%) in the oil & gas exploration, development and production (EPD) company. With the scheduled sale, the governments stake would come down to 68.43% from the current 78.43%. The sale will help the government move closer to its divestment target of R30,000 crore for the current financial year (FY13).
Sensex falls 110 points on profit-booking
Hit by profit-booking in ICICI, HDFC Bank and RIL shares, the Sensex on Thursday fell by 110 points to close at two-week low of 19,894.98 amid cautious trading on monthly expiry of derivative products. Mixed global cues with a downward bias after the US commerce department on Wednesday surprised market by declaring contraction in the US economy for the fourth quarter also weighed on the domestic market sentiment. The index initially touched a high of 20,008.83 but later fell back and remained in negative zone for the rest of the day. It concluded at 19,894.98, a fall of 110.02 points or 0.55%. Similarly, the NSE 50-issue Nifty also declined by 21.00 points or 0.35% to close at 6,034.75.
Code of conduct for MF distributors revised
Amfi has revised the code of conduct for mutual fund distributors to reflect new regulatory changes brought in by Sebi. Fund distributors were earlier governed by Amfi Guidelines and Norms for Intermediaries (AGNI), which was drafted in 2002. Some of the new norms include maintaining requisite documentation in respect of advisory or execution only services provided to investors and refunding to AMCs commissions received that are subject to claw-back as per Sebi norms.