SEBI has revised exposure margin requirements for exchange traded equity derivatives. The regulator, based on market feed back, has decided that the exposure margin shall be in excess of five per cent or 1.5 times, which ever is higher. The earlier exposure margin requirement was 10 per cent or 1.5 times the standard deviation of daily logarithmic returns of the stock price. This circular shall come into force from July 15.
For a new listing, at least 25% of each class of equity shares or debentures convertible into equity shares issued by the entity will be offered and allotted to the public. However, for entities with post-issue capital, calculated at offer price, of more than INR 4,000 crores (INR40 billion), this limit has been currently fixed at 10%. Also, the increased threshold of 25% will not currently apply to an entity whose draft offer document is pending with the SEBI on or before the commencement of the Securities Contracts (Regulation) (Amendment) Rules 2010, if it satisfies the conditions prescribed in rule 19(2)(b) of SCRR for applicability of the 10% threshold.
Can there be any reasonable justification for more exemption to females. Is it just gender biased taxation. Suppose a woman is working as a clerk and earning salary of Rs 190000, similarly a man is working in the same office in the same designation as the woman is and earning same salary of Rs 190000, then in such case man will be paying tax of Rs 3000 and woman will be paying no tax. Is it equality before law? Isn’t it violation of article 14 of the constitution?
The only issue arising in the appeal was whether while computing the income from capital gains, the fair market value of the property on the date of sale could be adopted as against the sale consideration received by the assessee. In the facts of the instant case, the assessee had sold the property for a total consideration of Rs. 15.25 lakhs. The said value of consideration was accepted by the registering authorities and was not disturbed. The provisions of section 50C were neither applicable nor applied by the Assessing Officer.
The changes in the Securities Contracts (Regulation) Rules will not only create a huge supply of fresh papers in the current fiscal but will also impact the pricing of the large public issues such as Coal India and BSNL. The amendments will also bring the Indian promoters of insurance joint ventures legally at par with their foreign counterpart,
The Union finance ministry plans to define any equity placement prior to an Initial Public Offer as promoter shareholding for the purpose of calculating minimum public float. The new definition will be part of an amendment to the Securities Contracts (Regulation) Rules, 1957, that would prescribe a minimum public float of 25 per cent in all companies irrespective of their size or ownership status.
Sebi’s proposal to tighten the norms for investment in derivatives has run into opposition from mutual funds with the industry lobby arguing that fund managers need access to some of the products the regulator wants to ban.The Association of Mutual Funds in India (Amfi), the industry lobby, has sent its detailed response to the mutual funds advisory committee of the Sebi, which will take up the proposal at its next meeting on May 31.
The Securities and Exchange Board of India (SEBI) has relaxed share-listing norms for small and medium enterprises (SMEs) by allowing them to disclose their financial results every six months instead of three months, as is the norm for bigger companies.
The market regulator Sebi today penalised two companies–BTW Industries and GR Magnet–for delaying dematerialisation of securities for several years. While it imposed a penalty of Rs 40 lakh on BTW Industries, GR Magnet was fined Rs 12 lakh for failing to dematerialise its securities. Dematerialising securities means keeping them in electronic form.
Listing means formal admission of a security into a public trading system, usually a stock exchange, often evidenced by a listing agreement between the issuer of the security and the stock exchange. It provides liquidity to the issuer of security for capital and ensures effective monitoring of conduct of issuer and of the trading of the securities in the interest of investors. The issuer wishing to have trading privileges for the securities on a stock exchange satisfies listing requirements prescribed in the relevant statues and in the listing regulations of the concerned stock exchange.
