28 April 2002
ICICI transfers AMC, Infotech stakes to Ventures
Mumbai: ICICI has bought down its stake in Prudential ICICI Asset Management Company and ICICI Infotech to less than 30 per cent.
ICICI has transferred its stake of over 30 per cent in these two companies to an equity fund of ICICI Ventures Fund Management Company Ltd. ICICI's stake in the AMC business was pegged at 45 per cent with the remaining being held by Prudential. In the infotech company, ICICI's stake was at 92.3 per cent with the remaining stake being held by Emirates Bank Group.
The merged entity can now hold on to ICICI's stake in Federal Bank and South Indian Bank. ICICI's stake in Federal Bank is pegged at 21.38 per cent and in South Indian Bank at 11.38 per cent.
Bank of Punjab plans 40 forex bureaus
Chandigarh: Bank of Punjab plans to open a host of foreign exchange bureaus keeping the NRIs and expatriates in mind, especially from the Doaba belt in Punjab.
The bank has already made a beginning in this respect and opened a foreign exchange bureau at a Jalandhar branch.
Before the end of 2002, BoP would have in place around 30 on site and another 10 off site foreign exchange bureaus. Of the 30 on site bureaus, as many as 25 will be opened in Punjab alone.
UCO Bank plans IPO
Kolkata: UCO Bank is targetting Rs 100,000 crore business in the next five years and has plans to go in for initial public offer in the year 2003 to raise capital.
UCO bank, which is celebrating its Diamond Jubilee during the current fiscal, achieved Rs 40,000 crore business during 2001-02, a growth of 25 per cent over previous year.
The bank aims to reach a business of Rs 50,000 crore by the end of 2002-03.
7 new directors on ICICI board
Mumbai: The board of directors of ICICI Bank has approved the appointments of seven additional directors on the board of the bank with effect from 1 May, the effective date of merger of ICICI with ICICI Bank. ICICI will cease to exist from 1 May.
The list of new directors on the board of the bank include Ashok Leyland managing director R Seshasayee, General Insurance Corporation chairman D Sengupta, Marti G Subrahmanyam, professor of finance at Stern School of Business, US, Lakshmi Mittal, chairman and CEO of LNM Group, Anupam Puri, management consultant, and two executive directors of ICICI - Kalpana Morparia and S Mukherji.
The other members on the board are N Vaghul, P M Sinha, Uday M Chitale, Somresh R Sathe and Satish C Jha. Two members of the board had put in their papers sometime back B V Bhargava and R Rajamani.
The board also approved the appointment of K V Kamath and Lalita D Gupte who are currently non-wholetime directors as managing director and CEO and joint managing director, respectively.
Morparia and Mukherji will also become executive directors of the merged entity from the effective date.
H N Sinor, who is currently the managing director of ICICI Bank, has been re-designated as joint managing director.
27 April 2002
Can Fin Homes posts Rs 20-cr net profit
Bangalore: Can Fin Homes Ltd has posted a net profit of Rs 19.81 crore for the fiscal ended 31 March 2002. The Q4 net rose to Rs 5.54 crore. The board has recommended a dividend of 25 per cent.
Loan sanctions in 2001-02 touched Rs 401.22 crore while disbursements stood at Rs 354.19 crore. Cumulative sanctions by Can Fin Homes total Rs 2,337.02 crore while cumulative disbursements were at Rs 1,909.25 crore as on 31 March 2002, according to a press release issued here.
Kamath appointed ICICI Bank MD, CEO
Mumbai: ICICI Bank has reconstituted its board, appointing K V Kamath as managing director and chief executive officer and Lalita Gupte as joint managing director. Earlier, both Kamath and Gupte were non-whole time directors of the bank. The reconstitution follows approval of the merger of ICICI with ICICI Bank.
The board at its meeting on 26 April 2002 also approved the appointments of Kalpana Morparia and S Mukherji as executive directors and approved the re-designation of H N Sinor as joint managing director. The appointments are effective from the date of the merger and subject to RBI approval, a bank press release said.
The meeting also approved appointments of following additional directors: R Seshasayee (managing director, Ashok Leyland Ltd), D Sengupta (chairman, General Insurance Corporation of India), Marti G Subrahmanyam (professor of finance, Stern School of Business, New York University and L N Mittal (chairman and CEO, LNM group).
Bank Muscat sends clients to Goa, Kerala
Bangalore: Nineteen of Bank Muscats new customers have been awarded holiday packages to Goa and Kerala as part of its EasyLife holiday contest, which involved opening an Easy Life account with the bank apart from completing a slogan.
The promotional was launched as part of the banks plans to increase its presence in Bangalore and expand the retail business, according to a press release issued here. The Easy Life account was launched a year ago.
RBI approves ICICI-ICICI Bank merger
Mumbai: ICICI Bank Ltd, which was granted approval by the Reserve Bank of India (RBI) on 26 April 2002 for the merger of ICICI Ltd with it, will have to lend an additional 10 per cent to the priority sector, over and above the mandatory 40 per cent of the total advances applicable to other banks.
This additional 10 per cent on incremental advances will apply until such time the aggregate priority sector advances (including that of ICICI that were not subject to mandatory norms) reaches 40 per cent.
The merger will be effective from 30 March 2002 as approved by the high courts of Mumbai and Gujarat. According to the RBI, the bank will have to comply with both CRR and SLR requirements. Currently, the CRR is 5.5 per cent and the SLR is 25 per cent.
The RBI has also approved the merger of two of ICICIs subsidiaries ICICI Personal Financial Services Ltd and ICICI Capital Services Ltd with ICICI Bank, said an ICICI Bank press release.
RBI okays ICICI Bank, ICICI merger
Mumbai: The Reserve Bank of India has approved the merger between ICICI Ltd and ICICI Bank, paving the way for the creation of the country's largest private-sector bank, with Rs 1 trillion in assets.
The approval is subject to certain conditions.
The merged entity, to be called ICICI Bank, will have to comply with cash reserve requirements and statutory liquidity reserve requirements, including liabilities pertaining to ICICI from the date of merger, the RBI said.
ICICI officials said the merger would be made effective from 30 March 2002.
RBI also said the merged entity will have to comply with capital adequacy, asset classification income recognition and provisioning requirements.
Canfin Homes net rises 12%
Bangalore: Canfin Homes, the housing finance arm of the Bangalore-based Canara Bank, has reported a 12 per cent rise in its net profits for the fiscal 2001-02.
Net profits stood at Rs 19.81 crore compared to Rs 17.71 crore. The board of directors of CHL has recommended a dividend of 25 per cent against 23 per cent.
For the fourth quarter ended 31 March 2002 CHL had net profit of Rs 5.54 crore (Rs 4.77 crore) a rise of 16 per cent on a year-on-year basis
Mukherjee on Srei Cap board
Kolkata: J.L.Mukherjee has been inducted on the board of Srei Capital Markets Ltd, a subsidiary of Srei International Finance.
He has been designated as executive director. According to a release by the company, Mukherjee will oversee the entire merchant banking business.
7 directors inducted in ICICI Bank board
Mumbai: The ICICI Bank board has approved the appointment of seven directors of ICICI on the board.
The board has also approved the appointment of KV Kamath and Lalitha Gupte, as managing director and deputy managing director, respectively. Following the fresh inductions the strength of the ICICI Bank board has increased to 17.
The board has also approved the redesignation of HN Sinor, managing director of the bank as the joint managing director. Two executive directors of ICICI Kalapan Morparia and S Mukherjee have also been taken on board the bank as executive director.
ICICI Board has 16 members of which four Kamath, Gupte, Vaghul are already on the board of the bank. Four others could not be nominated for regulatory reasons.
NR Narayan Murthy and Ashok Ganguly are on board of the Reserve Bank of India and cannot participate on the boards of any commercial bank.
BK Jhavar of the Usha Group and Rakesh Khurana were also not nominated on account of the banks exposure to companies they are associated with.
The directors of ICICI who have moved on to ICICI Bank are: R Seshasayee, Nanaging Director, Ashok Leyland, D Sengputa, Chairman, General Insurance Corporation of India, Marty Subramaniam, LN Mittal, Chairman LN Mittal group, and Anupam Puri.
The other existing board members of ICICI Bank are HN Sinor, Chanda Kochar, Uday Chitale, Satish Jha, Somesh Sathe, PM Sinha, and Nachiket Mor.
26 April 2002
CII for 50 bpt reduction in bank rate
New Delhi: The Confederation of Indian Industry (CII) has suggested a 50-basis point (bpt) reduction in bank rate, which would signal a further reduction in bank lending rates. There is also a need to extend increased freedom to banks to set the savings deposits rates, subject to ceiling prescribed by the Reserve Bank of India, the chamber said in a statement here.
In its suggestions for the Slack Season Credit Policy 2002-03, CII said the policy should focus on two principle objectives - first should be to effect liquidity in the short term via the traditional tools of the monetary policy and the second should be to usher in deeper structural reforms in the financial system.
Besides seeking reduction in bank rate, CII further suggested a slew of measures to increase liquidity and reduce volatility in the markets, including formulation of a roadmap to reduce the requirement of maintenance of CRR from the current level of 5.5 per cent of net demand and time liabilities (NDTL) to 3 per cent of NDTL.
CII said the credit policy should bring about a reduction of SLR from the current level of 25 per cent of NDTL to 15 per cent of NDTL.
Canara Bank expects Rs 112,00-cr growth
Bangalore: Canara Bank has targeted over 15 per cent growth to take the total global business to Rs 112,000 crore in 2002-03 from Rs 97,000 crore last year. The total business is made up of Rs 73,500 crore of deposits and Rs 38,500 crore of advances against Rs 63,500 crore and Rs 33,500 crore, respectively, last year.
The business plan for 2002-03 was launched by Canara Bank CMD R V Shastri and executive director N Kantha Kumar at a conference of senior management executives of the bank held here recently. Shastri said continuing the thrust made during the last financial year, the bank is aiming to disburse Rs 5,500 crore under retail banking and housing against Rs 1,700 crore.
Priority sector advances is set to reach a level of Rs 13,200 crore - up by 25 per cent from Rs 10,500 crore last year. The bank is planning to computerise 200 more branches, taking the total number of computerised branches to 1,750, covering more than 85 per cent of the business.
Shastri indicated that the bank is well set to cross the Rs 1,550-crore mark in respect of operating profits during 2001-02 against Rs 1,131 crore in 2000-01. The bank plans to go public sometime during August-September 2002.
HDFC Stan gets Rs 36-cr premium income
Mumbai: HDFC Standard Life Insurance Company Ltd, which has completed 15 months of operations in March 2002, has said its premium income has more than doubled its target. The premium income amounted to Rs 36 crore against the target of Rs 15 crore.
The company has tied up business worth Rs 1,266 crore in the 15 months and has also declared its second reversionary bonus of 8 per cent per year for single premium policies and 4.25 per cent for regular premium policies.
"We have covered 44,311 lives during the period, of which about 32,000 are individual life policies," says HDFC Stan Life managing director and CEO Deepak Satwalekar.
The company has earned Rs 789 crore from its individual life insurance and pension business, of which 20 per cent has come from the HDFC Personal Pension plan, which was introduced in February 2002. Of the individual policies, endowments form 52 per cent, while single premium policies brought in business worth Rs 10 crore, says Satwalekar.
The company has declared a lower interim bonus of 7 per cent on single premium policies and 3.75 per cent on regular premium policies. HDFC Stan Life has also declared a non-recurring founders bonus for policyholders during the 15-month period.
Karnataka Bank donates computers to KSP
Mangalore: The city-based Karnataka Bank has donated a complete set of three computers to the Kannada Sahitya Parishad (KSP).
According to a press release issued by the bank, the computers were handed over to KSP president Harikrishna Punaroor by Karnataka Bank chairman Anantha Krishna at a function held at the banks head office here.
Punaroor appreciated the "meaningful contributions" made by the bank towards "furthering the cause of Kannada."
Krishna, on his part, reiterated the banks "commitment towards social and cultural activities." He also said to have stated that Karnataka Bank will continue to function as a "socially-responsible corporate entity."
IRDA starts operations from Hyderabad
Hyderabad: The Insurance Regulatory Development Authority (IRDA) has formally commenced its (partial) operations from Hyderabad.
The operations of its actuarial department took off under the aegis of IRDA chairman N Rangachari from the temporary premises at Parishram Bhavan. Captains of various banks, financial institutions and insurance companies were also present on the occasion.
IRDA, which is awaiting clearance of certain critical bills on the insurance sector, plans to shift its entire operations to the city by June 2002, Rangachari said.
With the Andhra Pradesh Industrial Infrastructure Corporation acting as the nodal agency, IRDA is scheduled to shift its operations to its permanent premises in the proposed financial district, coming up in Cyberabad here, during the first half of the next fiscal year.
Canara Bank logs 37% rise in profits
Bangalore: Canara Bank has reported a rise of 37 per cent in its operating profits for the fiscal 2001-02.
Operating profit stood at Rs 1,550 crore against Rs 1,131 crore, with the capital adequacy ratio (CAR) of 11.5 per cent against 9.84 per cent as on 31 March 2001.
The gross non-performing assets (NPAs) were placed at less than 7 per cent while the net NPAs were around 4 per cent. These figures were 7.80 per cent and 4.84 per cent for 2000-01 respectively.
The bank is also targeting a total global business of Rs 1,12,000 crore, representing a 15 per cent rise against the Rs 97,000 crore which was achieved during 2001-02, according to a bank Press release.
Allahabad Bank plans Rs 100-cr IPO
Kolkata: The Allahabad Bank is planning to raise Rs 100 crore through initial public offer (IPO).
The bank has already received in principle clearance from the ministry of finance to go ahead with the IPO.
Likely to be issued at par around September next, the Rs 100 crore IPO would bring down the government holding in Allahabad Bank from 100 per cent to about 70 per cent.
25 April 2002
Rs 66-cr net profit for CorpBank Securities
Mangalore: CorpBank Securities Ltd (CSL), a wholly-owned subsidiary of Corporation Bank, has registered an operating profit of Rs 103.08 crore and a net profit of Rs 66.01 crore for the year ended 31 March 2002.
The net profit went up four-and-a-half times from the Rs 14.79-crore registered during 2000-2001. CSL is a primary dealer active in primary and secondary market operations in dated government securities and treasury bills.
The board of directors of the company, which met on 20 April 2002, has proposed a dividend of 25 per cent for 2001-2002. The return on the capital employed stood at 66.01 per cent, the return on the net worth at 43.25 per cent and the return on average assets at 9.12 per cent.
The net worth increased to Rs 152.64 crore as on 31 March 2002 - up from Rs 86.19 crore. The capital adequacy ratio stood at 43.41 per cent against the stipulated minimum of 15 per cent.
LIC sanctions Rs 6,000-cr loan for NHAI
Mumbai: The Life Insurance Corporation of India (LIC) has sanctioned a Rs 6,000-crore loan to the National Highways Authority of India (NHAI).
It has signed a memorandum of understanding with NHAI, under which the road-builder will get a line of credit for the amount. The insurance major has also granted a Rs 1,500-crore loan to the National Thermal Power Corporation.
"The investments have been made under its infrastructure funding obligations," says LIC managing director and acting chairman A Ramamurthy. For the fiscal year 2002-03, the insurer has earmarked about Rs 10,000 crore (about 15 per cent of its total investment corpus) for infrastructure financing.
LICs return on investment has dropped by at least a percentage point over the past year-and-half to about 8.5-9 per cent, even as the average rate of return on its policies came down to about 6 per cent.
The sharp drop in interest rates has hit the countrys top life insurer, too, and it has either discontinued or restructured several of its high-return policies over the past fiscal year. Says Ramamurthy: "All the interest assumptions we had last year are no longer valid. We had to restructure policies because of falling yields. We would snip returns on policies according to the interest rate scenario."
In the current fiscal year, LIC will have about Rs 62,000 crore available for investments. Of this, about 60 per cent (50 per cent is mandatory) or close to Rs 38,000 crore will go into government securities and about 9 per cent (nearly Rs 6,000 crore) will flow into equities.
Investments in the corporate sector, including equities, will be about Rs 11,000 crore. The amount available after funding infrastructure will be channelled to social welfare schemes and other projects. In the past year, the corporations investments amounted to about Rs 50,000 crore. It had gross investments of about Rs 4,400 crore in equities and about Rs 30,000 crore in government securities.
Sun Life to invest more in Indian venture
Mumbai: Sun Life plans to raise its investment from Canadian $65 million to over Canadian $100 million, says Sun Life Financial president and chief operating officer C James Prieur.
Much of this additional investment will go towards the life insurance business in India, Birla Sun Life Insurance, currently a part of the joint venture with the Aditya Birla group.
Birla Sun Life Insurance, which completed one year of operation, has a total sum assured in excess of Rs 1,600 crore. It has 12 branches in nine cities and is planning to increase its coverage to 22 branches in 14 cities by August 2002.
"In one year in India, we have done more new sales in insurance as compared to Hong Kong, where we are present for the last 100 years," says Prieur. "We would like to treble our business during the current fiscal," says Birla Sun Life Insurance chairman and managing director Nani Javeri.
Javeri, however, did not divulge the figures for the previous fiscal. "Birla Sun Life will launch fresh unit-linked packages this year." Says Prieur: "We are committed to infuse more capital into the life insurance business, which has been growing quite well. Life insurance is a capital-intensive business, necessitating fund infusion until book profits start to show in six-to-seven years."
Sun Life, which is currently entering into a 50:50 joint venture arrangement with the China Everbright group to make its foray into life insurance in China, hopes to increase its stake in the Indian joint venture from 26 per cent to 50 per cent as and when the government lifts the cap on foreign investments.
IFCI debt issues on Care rating watch
Mumbai: The rating agency Care has placed the outstanding ratings on the Industrial Finance Corporation of Indias (IFCI) long- and medium-term debt issues on "credit watch with negative implications."
"With the information received and more information sought for we will be reviewing the ratings again very soon," says Care executive director Rajesh Mokashi. "The current status indicates that a downgrade is on the cards."
Cares action follows that of Icra and Fitch Ratings India. Icra had downgraded the short-, medium- and long-term rating of IFCI to A4, MB and LBB from A2+, MA and LA-, respectively, and kept it on "rating watch with negative implications."
IDBI, Exim move to recall Daewoo loan
Mumbai: Industrial Development Bank of India and Exim Bank are moving in to recall loans of Rs 400 crore to Daewoo India.
The financial institutions would be simultaneously filing for an invocation of guarantee given by Daewoo Corporation against the loans.
IDBI, ICICI and Exim Bank have a total exposure of around Rs 900 crore in Daewoo India.
Union Bank gets RBI nod for IPO
Mumbai: Union Bank of India has received an in-principle clearance from Reserve Bank of India and Central government for its proposed Rs 300-crore IPO slated for end-June.
The bank proposes to return Rs 58 crore equity to the government, bringing down its equity capital to Rs 280 crore before the issue.
Although the pricing of the shares would be decided closer to the issue date, the bank proposes to have a public shareholding of around 32 per cent. Indications are that the issue would be priced at Rs 23 per share.
SBI to sue IFCI over default
Mumbai: The state-owned Industrial Finance Corporation of India (IFCI) is facing legal action from State Bank of India (SBI) for defaulting on timely repayment of one of its bond issues.
IFCI has defaulted on principal and interest repayment on bonds worth around Rs 100 crore.
The bank is considering a proposal to start legal proceedings in the debt recovery tribunal.
IFCI had not redeemed the principal amount on an issue which matured on 10 March, carrying a coupon of 11 per cent.
24 April 2002
Citigroup stake values new Infy unit at $100 mn
Mumbai: Citigroup will get a 20 per cent stake for investing $20 million in Infosys Technologies Ltd's new back-office unit Progeon.
That values at $100 million the unit which Infosys announced last Wednesday it planned to set up with $5 million of its own cash and $20 million from Citigroup.
It did not say at the time what sized stake Citigroup would get for its money.
The other 80 per cent will be held by Infosys with a market value of $5.2 billion and sales of $532 million in the past year to March.
LIC's investment pegged at Rs 62,000 cr
Mumbai: Life Insurance Corporation of India (LIC) has planned an investment outlay of Rs 62,000 crore for 2002-03 with 50 per cent funds earmarked for exposure to the government securities.
The investible funds for the current fiscal would be 24 per cent more over Rs 50,000 crore in 2001-02 and according to regulatory norms LIC will have to invest atleast half of the corpus in government securities, managing director A Ramamurthy told reporters here.
The total funds available for investments in the corporate sector were close to Rs 11,340 crore and half of this would be dedicated to equity, he said adding last year LIC had invested Rs 4,400 crore in equities.
LIC business hit in Gujarat
Mumbai: There has been a distinct drop in Life Insurance Corporation of India's business in three out of seven divisions - Ahmedabad, Baroda and Nadiad - due to the long spell of violence.
Events in Gujarat had an impact on LIC's activities, specially in March, when 30 per cent of the business for the year is transacted.
The performance during the year 2001-02 suffered a setback. As against 3.17 lakh policies sold in March 2001, the number declined by 9.3 per cent to 2.88 lakh policies in March 2002.
The total sum assured for 2.88 lakh policies issued in Gujarat during March was also down 7.7 per cent at Rs 2,863 crore.
22 April 2002
CorpBank Homes posts impressive results
Mangalore: Corpbank Homes Ltd, a wholly owned subsidiary of Corporation Bank, has doubled its net profit for the financial year ended 31 March 2002. The net profit after tax increased to Rs 3.38 crore against Rs 1.66 crore for the previous year - registering a growth rate of 103.61 per cent.
According to a press release issued here, the board of directors of the company, at its meeting held on 11 April 2002, took on record the audited results of the company for the just-concluded financial year.
Cumulative sanctions stood at Rs 206.58 crore and cumulative disbursements at Rs 188.40 crore. The company also sanctioned a total of Rs 104.58 crore during the fiscal and disbursements during the period stood at Rs 97.1 crore. Sanctions and disbursements were higher by 93.88 per cent and 79.22 per cent, respectively.
Outstanding loans as on 31 March 2002 stood at Rs 161.13 crore compared to Rs 82.54 crore last year - thereby growing at a rate of 95.21 per cent. The gross revenue rose to Rs 17.22 crore (Rs 8.4 crore), registering a growth rate of 105 per cent on a year-to-year basis. It received an additional capital contribution of Rs 5 crore from its sponsor, Corporation Bank. The net worth of the company stood at Rs 19.94 crore.
GTBs new ATM branch in Hyderabad
Hyderabad: In a bid to further increase its reach to its customers, Global Trust Bank (GTB) has inaugurated another branch with onsite ATM in Hyderabad, taking its branch network to 18 and the ATM network to 52 in the city.
The new branch, located at Srinagar Colony, was inaugurated by Dr Reddys Laboratories chairman Dr K Anji Reddy.
In a press release, the bank said it offers a full range of products and services, like personal savings accounts, current accounts, term deposits, depository services, ATM and Internet banking. Any customer opening an account at any GTB branch can transact with any of the branches in 33 cities and access their accounts round the clock through 200 ATMs spread across the country.
Benares Bank moratorium period extended
Mumbai: The central government has extended Benaras State Bank Ltds moratorium period for a further period up to 21 July 2002.
This has been done on the recommendation of the Reserve Bank of India and in partial modification of the governments earlier notification dated 22 January 2002, said a press release issued here.
Corporation Banks contribution to CRY
Bangalore: Corporation Bank has made a contribution of Rs 19,712 to Child Relief and You (CRY) on the occasion of the 55th year of Indian Independence. Finance Minister Yashwant Sinha presented the cheque to CRY on behalf of the bank.
The bank made a grant of Rs 5 for every account opened between 1 August and 31 December 2001, both deposits and loans, according to a press release issued here.
Corpbank Homes net doubles
Mangalore: Corpbank Homes Ltd, a wholly owned subsidiary of Corporation Bank, has doubled its net profit for the financial year ended 31 March 2002. Net profit after tax increased to Rs 3.38 crore against Rs 1.66 crore for the previous year, registering a growth rate of 103.61 per cent.
Cumulative sanctions stood at Rs 206.58 crore and cumulative disbursements at Rs 188.40 crore. The company also sanctioned a total of Rs 104.58 crore during the fiscal and disbursements during the period stood at Rs 97.1 crore. Sanctions and disbursements were higher by 93.88 per cent and 79.22 per cent respectively.
ICICI, Rlys to offer online ticket
New Delhi: Indian Railway Catering and Tourism Corporation (IRCTC) has inked an agreement with ICICI to act as the payment gateway for its online ticket booking services to be launched soon.
The online ticketing service will be launched within two months.
The Rs four crore project, to take off in Delhi in the pilot phase, would enable foreign and domestic travellers to book railway tickets through Internet from anywhere. Customers would have to pay Rs 25 extra per ticket.
In a phased manner, the project would be replicated in other parts of the country.
Sebi orders 11 SE top brass to step down
New Delhi: The Securities and Exchange Board of India has directed presidents and vice-presidents of 11 regional bourses to step down from top management posts, as part of its efforts to impart transparency and prevent market manipulations.
Sebi has sent notices to 11 stock exchanges including Jaipur, Kanpur, Rajkot and Magadh.
The decision was taken after the broker members of BSE and CSE allegedly manipulated the market. These members had access to price sensitive information from the surveillance departments of the bourses.
There are at present 19 regional bourses existing side-by-side with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), Over the Counter Exchange of India (OTCEI) and the Inter-connected Stock Exchange (ISE).