SEBI : To check Insider trading, R 8(1) of the Regulations states that the Board of Directors of every listed company shall lay down and ...
SEBI : 1. Introduction The new Regulations aim at strengthening disclosure at different stages to ensure transparency for an orderly secu...
SEBI : 1. Introduction Stock market is all about dealing in securities. It is a specialized market. Stock markets are formed under the ...
SEBI : Business needs capital which promoters arrange. Since promoters conceive the idea of the business, bring in fund, human capital th...
SEBI : S 12A (d) of the SEBI Act, 1992(`ACT’) prohibits insider trading securities in the securities market. S 15 G of the Act lays dow...
Rights Issues (RIs) were out of favour with corporate India in 2009. Reason for such situation was due to depressed sentiments in the capital market. In 2008 ,companies raised Rs 29,786 Cr through RIs which reduced in 2009 to Rs 2,525 Cr . Reduction was to the extent of Rs 27,261 Cr over the previous year. Promoters prefer RI route to raise fund as it is a cheaper mode of obtaining fund from the market without disturbing the shareholding pattern.
Placement document is to be as per the requirements of Chapter VIII of ICDR with a disclaimer in bold capital letters that “the placement is meant only for QIBs on a private placement basis and is not an offer to the public or to any other class of investors.”
On 5th March,2010, SEBI announced that it would be mandatory for `Qualified Institutional Buyers’ (QIBs) to put in 100 per cent of the application money towards subscription of shares in capital issues through offers. This would come into force from 1st May, 2010. Presently, QIBs are required to pay just 10 per cent of the share value on application and Anchor investors are required to pay 25 per cent on application and balance payment is required to be paid on allotment.
Pledge of shares is a common practice adopted in the securities market by investors and intermediaries to raise finance. Banks and financiers have their own method of advancing money in pledge transactions. They keep a margin against the quotations of the shares. S 172 of the Indian Contract Act, 1972 defines pledge as bailment of goods for payment of debt or performance of promise.
