Short selling to be allowed by July this year
Mumbai: After more than six years, the Securities and Exchange Board of India (Sebi) will launch a more sophisticated version of short-selling in equity markets for both domestic and foreign institutional investors (FIIs) in July this year.

Under the proposed scheme, short selling in individual scrips will be capped at 10 per cent of the free float of shares of any company. The free float of a listed security is the proportion of shares available for purchase in the market by investors.

In principle, it is the part of shares not held by strategic shareholders or promoters.

To start with, short selling will be allowed in only those scrips for which derivative products are available.

The market regulator will only allow covered short sale when a settlement is backed by physical delivery of shares and there is a heavy penalty for market participants indulging in naked short sales, or transactions in which a broker fails to deliver shares at the time of settlement of trade.

Exchanges will be given the discretion to decide on the margin requirement of brokers involved in short selling. Several broker-wise and client-wise caps are likely to be imposed.

A single clearing member of an exchange may have an open position in short selling capped at 10 per cent of the total market-wide position in a certain scrip or Rs50 crore, whichever is less.

This cap will also be valid for a single foreign institutional investor (FII) or a single mutual fund.

Similarly, an individual member cannot have an open position in short selling beyond 1 per cent of the total market-wide position of a certain scrip.

The maturity of the short-selling contracts will be valid for seven days.
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DLF to be at eighth position in m-cap
Mumbai: After-listing, real estate company DLF is likely to be placed at eighth spot in terms of market capitalization after Reliance Communications (Rs1,03,110 crore) and before ICICI Bank (Rs82,119 crore).

The company has announced a price band of Rs500-550 a share for its upcoming initial public offer (IPO) of Rs9,625 crore.

DLF's total enterprise value stands at Rs85,221 crore on the lower side of the price band of Rs500 a share on the total equity capital of Rs340.88 crore of Rs2 paid-up equity share.

On the higher side, DLF's current enterprise value stands at Rs93,743 crore.

The company's enterprise value of Rs85,221 crore constitutes 50 per cent of the total market capitalisation of real estate stocks listed on the Bombay Stock Exchange (BSE). It is almost 100 per cent of the total market value of real estate stocks.
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Lodha Developers plans IPO
Mumbai: Mumbai-based real estate firm Lodha Developers is planning a public issue by the year-end to raise between Rs2,000 and 2,500 crore, said sources.

The company is valued at $5 billion (nearly Rs21,500 crore) and even a 10 per cent dilution could raise Rs2,150 crore, the sources added. The company, which is currently developing 22 million sq ft of land, is planning to use the proceeds from the IPO for its upcoming projects as well as new ones.

The Lodha Group is developing residential premises, malls, IT parks and weekend retreats across locations such as Napean Sea Road, Worli Sea Face, Mahalaxmi, Prabhadevi, JVPD, Thane and Kanjurmarg.

The company's upcoming projects include developments at Walkeshwar, Bhandup, Mulund, Dombivili, Dahisar, Thane and Lonavala. Lodha is also expanding to other cities such as Pune, Hyderabad, Chennai and Ahmedabad.
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