Domestic public issue may be made compulsory for overseas issuers
Mumbai: The finance ministry has been given powers by the law ministry to make a domestic issue compulsory for companies going to the overseas markets, according to a report in The Economic Times. The Securities and Exchange Board of India had earlier proposed guidelines on this matter. The finance ministry can now make the necessary changes in the existing laws, along the lines of guidelines prescribed by Sebi.

The finance ministry may differ with Sebi on two fronts. One, the law would be enforced across the board and would not be restricted to a few sectors as suggested by Sebi. Second, it is expected that the ratio between domestic float and overseas float would be fixed at 1:9, as opposed to Sebi’s proposed ratio of 1:4.
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Sebi to summon erstwhile ABS Industries MD
Mumbai: The Securities and Exchange Board of India will issue a summons against Rakesh Agarwal, managing director of ABS Industries, now called ABS Bayer. According to a report in the Business Standard, Rakesh Agarwal has been accused of insider trading in his company’s shares, a couple of months prior to Bayer India taking it over in October 1996.

Sebi gave him 15 days to reply. Mr.Agarwal gave a 50-page clarification to Sebi, albeit late. He cited personal reasons for the delay.

ABS Industries share prices rose from Rs.48 to Rs.82 in August 1996, with a rise in volumes. The shares were allegedly bought by Mr.Agarwal’s brother-in-law and then sold to Bayer.
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Sebi permits RSE brokers to enter ISE
Mumbai: The Securities and Exchange Board of India has allowed regional stock exchange brokers to trade on the Inter-connected Stock Exchange of India or ISE, using the base minimum capital that they have in the regional stock exchanges.

ISE had earlier requested permission from Sebi in this regard, on behalf of brokers in the regional stock exchanges. Sebi has granted permission and time for regional stock exchange brokers to increase their base minimum capital on the ISE to Rs.3 lakh from Rs.2 lakh in one year’s time. Sebi feels this move will enable larger participation on the ISE.
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Nasdaq to ask for exchange status
New York: The National Association of Securities Dealers’ subsidiary, the Nasdaq stock market, will apply for exchange status, with the Securities and Exchange Commission. Full exchange status will mean that the main stocks that are listed on the New York stock exchange could be traded on the Nasdaq too. This will enable it to be give the New York Stock Exchange a tougher fight.

Nasdaq will also take steps towards trading to be conducted at least two and a half hours after the current close of trading. Nasdaq is the world’s largest screen-based trading stock market.
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