DSE plans to revive trading platform by April 14

The Delhi Stock Exchange today said it plans to revive its trading platform by April 14 with special focus on small and medium enterprises.
"In the first board meeting held after demutalisation, the exchange appointed Pradeep Jain of Parsvnath Developers Ltd as its Chairman. We hope to revive the trading by Baisakhi (on April 14)," Delhi Stock Exchange Executive Director H S Sidhu told PTI.
The exchange will soon finalise a software vendor for putting in place the trading technology, he said, adding, it would take about 15 days.
The meeting was attended by 16 directors, including one each from Omaxe, Parsvnath and Network 18, he said.
Besides, four foreign directors were also part of the board meeting.
The exchange which stopped trading in 2003 after the new market conditions like emergence of uniform settlement system.
The exchange also went for demutualised in September last year, following the Sebi guideline which required each stock exchange to mandatorily sell brokers' 51 per cent equity to separate their trading and ownership rights of bourses. The process is called demutualisation.
Some of the foreign stake holders of the DSE include Mauritius-based Wilmette Holdings, Kuwait's Noor Financial Investment, Ikarus Industrial Petroleum Company and Kuwait Privatisation Projects Holding Company. The exchange has reserves of Rs 98 crore, bank balance of Rs 75 crore and 379 members. Currently, about 2,884 companies are listed on DSE. Of these, 1,800 are exclusively listed on the bourse, providing it Rs 2.5 crore as listing fee

Acquition by CHD Developers Limited

CHD Developers Limited has Purchased 99.99% Equity Shares from the Promoters of the following Companies and by this these companies are now the subsidiary of the Company.

• Divine Townships Private limited.
• Golden Infracon Private Limited.
• Horizon Realtech Private Limted.

By Tejasvi Dixit

SBI board to approve esop to employee

Public sector Biggie, STATE BANK OF INDIA (SBI) is all set to give the esop to its 2 lacks employees working in its 9500 branches all across india. Board will meet n 14 jan to consider varrious issue like quaterly result, right issue and esop. Esop will be the .7% of the Capital.

By Tejasvi Dixit

GOING “ PUBLIC ”??? .......A TWIST TO THE TALE

According to capital market regulations, if promoters dilute more than 25% during an initial public offer (IPO), retail investors can be allotted 35% of the issue, while institutional category and HNI segment commands 50% and 15%, respectively.

However, promoters are nowadays diluting less than 25%, as this allows them to cap the retail portion at a maximum of 30%. The institutional portion in such cases go up by 10%. For small investors, this 5% difference can be substantial when the issue size is large.

Public issues, it seems, are not quite meant for the ‘public’. At a time when more and more retail investors are looking to hop on to the equity bandwagon, promoters have taken refuge in a decade-old regulation that allows them to dole out more shares to institutional bidders at the cost of retail ones. And the sad part is that this is perfectly legal and only an initiative from the market regulator can create a more level-playing field for small investors. Interestingly, this special clause — Rule 19(2)(b) — was introduced by the Securities and Exchange Board of India (Sebi) in 1999 for technology companies wherein promoters were allowed to dilute 10% if the issue size was more than Rs 100 crore. This also meant that QIBs could be allotted 60%, while HNI and retail portion was capped at 10% and 30% respectively. While initially the special clause was applicable only to technology companies, it was subsequently extended to all sectors. Meanwhile, two of the most high-profile issues in recent times — Reliance Power and Future Capital —are also using this age-old clause (by diluting only around 10-12%) to allocate more to the institutional investors. For instance, Reliance Power, where 22.8 crore shares are on offer, retail investors can bid for only 6.84 crore shares.

While this trend has been on an upswing for quite some time now, the recent past has seen a near complete disappearance of issues where retail investors were offered 35% of the total issue. Industry watchers say this trend is killing the very concept of ‘public holding’ in a publicly listed company. The effect of this clause can be gauged from the shareholding pattern of some of the companies that turned ‘public’ last year. The retail holding in Puravankara Projects is a lowly 0.8%. In the case of Motilal Oswal Securities and Omaxe, the retail stake is 3.43% and 3%, respectively. After the mega-sized public issue of DLF, retail investors have a 2.25% stake in the real estate major. In Vishal Retail, public stake is less than 5%.

By Ashima Gupta