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SEBI panel suggests changes in brokerage fees
Mumbai: Following up on the recommendations of a SEBI committee headed by D.C. Anjaria, the Securities and Exchange Board of India is now seeking to modify the calculation of brokerage fee in order to modernise it and make it relevant to current market conditions.

A broker's fee roughly constitutes one per cent of prevalent average brokerage rates. The brokers in the cash equity, cash debt, and derivative segments would have to pay fees at the rate of Rs100, Rs5 and Rs50 respectively for Rs1 crore of market turnover.

"Since the recommended rate in the derivative segment is substantially higher than the current level of Rs10 per Rs1 crore of turnover, the SEBI may consider the upward revision of fees in a phased manner by increasing from Rs10 per Rs1 crore of broker turnover as currently defined to Rs20 per Rs1 crore of market turnover as now defined by the committee, in the first instance. Over a period of time, it may be increased to Rs50 per Rs1 crore of market turnover," the report said.

The committee has suggested a review of the fee structure every three years.

The exchanges would collect the fees directly from the brokers by debiting the brokers' account on a monthly basis, and remit this to the SEBI. It is for the broker to decide whether to pass on the fee liability to their clients, the committee said.

The committee has also suggested renaming the fee as `SEBI Broker Registration Fee'. Brokers will be liable for payment of fees for all transactions put through or reported to any of the recognised exchanges in the country.
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Fidelity and associates up stake in IVRCL to 12 per cent
Hyderabad: Fidelity International Ltd (FIL), along with others, has acquired 5,90,171 shares of IVRCL Infrastructures & Projects Ltd, constituting 2.81 per cent of the company. In a communiqué to stock exchanges, IVRCL said the acquisition was made through market purchases on July 26.

The shareholding of Fidelity and its associates now stands at 25,64,167 shares, aggregating to 12.22 per cent of the company's share capital.
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Indiabulls price GDR at US$5.42
New Delhi: Indiabulls Financial Services Ltd on Thursday said it has priced its global depository receipt issue at US$5.42 per GDR or Rs235 per share of Rs2 each, taking value offering to $130.8 million. Indiabulls has also granted an over-allotment option of up to $19.51 million to Merrill Lynch International.

The issue was priced after market trading hours on Wednesday.
Indiabulls' GDR is expected to be listed on the Luxembourg Stock Exchange.

Merrill Lynch International and Citigroup acted as the lead managers for this offering, the company said in a release.
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SBI Caps to set up retail broking subsidiary
Mumbai: SBI Capital Markets is planning to set up a separate subsidiary for retail equity broking within three months. To start with, the merchant bank will invest Rs50 crore in the subsidiary, bank officials said.

SBI Caps is already offering retail services in ten branches and plans to add fifty more offices by June 2007 for the retail network.
The services would also be offered in other SBI India branches, wherever necessary.

According to officials, SBI Caps is looking at a revenue target of over Rs100 crore from retail broking in the next three years. The business would include organising IPOs, selling them to investors, as well as selling debt instruments.

Bank officials said that the equity market in India required more depth and more spread, still being concentrated in the hands of a few, with a handful of retail investors.
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HT Media IPO subscribed by 5.79 times
Mumbai: HT Media's initial public offering has been subscribed by 5.79 times on the first day with maximum bids being made at the upper price band of Rs530 a share, according to NSE Web site.

The issue received bids for 4.04 crore shares compared to the issue size of 69.95 lakh shares. The price band for the IPO is Rs445-530.

The issue closes on August 10.
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Sasken IPO to open on Aug 11
Bangalore: Sasken Communication Technologies has said that its initial public offering would open on August 11 and close on August 17.

The company is offering 50 lakh equity shares of Rs10 each for cash at a premium to be decided through the book-building process. Sasken has fixed a price band of Rs230-260 per share, which would translate into an issue size of between Rs115 crore and Rs130 crore.

The net offer to public would constitute 16.36 per cent of the fully diluted post-issue paid-up equity capital, it said in a release.
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