Market regulator Sebi has exempted Government of India (GoI) from making an open offer for public shareholders pursuant to its proposal to hike stake in Central Bank of India to 85.31%. The government has proposed to acquire about 30.84 crore shares of the bank through preferential allotment. This would increase the governments holding in the bank from 79.15% to 85.31%.
This is a fit case to grant exemption...to the Government of India from the obligation to make an open offer, said SEBI.
The regulator said the government, which is expected to infuse R2,406 crore into the Central Bank of India, would enable the PSU lender to achieve the 8% Capital to Risk-
weighted Assets Ratio (CRAR) as per the BASEL II norms.
BSE to adopt Deutsche Boerses trading platform
Eurex Group and the Bombay Stock Exchange (BSE) have entered into a long-term technology alliance under which BSE will deploy Deutsche Brse Groups trading architecture in a first step. BSE aims to replace its derivatives market platform in 2013 and plans to subsequently replace its cash market platform. According to a release issued by BSE, the new partnership will allow the Indian exchange to quickly achieve the highest global standards for speed, reliability and order-handling capacity.
Sebi passes consent order on Dens application
A Sebi panel, comprising whole-time members Rajeev Agarwal and Prashant Saran, has passed a consent order on the application submitted by Den Networks and 24 other entities. The applicants have remitted a sum of R4.93 crore towards consent terms in the matter. According to the show cause notice issued by Sebi, Den Networks had directly or indirectly provided funds to certain entities who made application in its IPO. It has also been alleged that the company had not made such disclosures. The board of directors of Den Networks had also been issued show cause notices for the alleged violations committed by the company. According to the consent terms, Den Networks has paid R4.18 crore, which has been equally shared between the company and the promoter group. The other entities have paid penalties in the range of R2-6 lakh each.
Sebi settles case against Sital Leasing & Finance
Sebi has disposed of a case against Sital Leasing & Finance after the company made a payment of R5.92 lakh to settle charges for alleged delay in making necessary disclosures. Sebi said that the delayed compliance of the provisions of the regulations is settled as per consent terms and Sebi shall not initiate any enforcement action against the applicant (Sital) for the said default. In November last year, Sital Leasing had approached the market regulator to settle any proceedings against it for failing to make requisite disclosures (for the years 1998 to 2010) about its shares within a stipulated time period given under the norms. In this regard, the company offered to pay R5.92 lakh as settlement under Sebis consent order mechanism. Subsequently, Sebis High Powered Advisory Committee (HPAC) after considering the facts, recommended the case for settlement on payment of the amount.