SEBI puts in place new form for ASBA

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With a checklist regime kicking in for initial public offerings (IPOs), capital markets regulator the Securities and Exchange Board of India (SEBI), has put in place a new form for ASBA (Application Supported by Blocked Amount) facility.

ASBA facility has become mandatory for all categories of investors applying for a public issue for making payment from Friday. The facility allows the bid amount to remain in the applicants account till the time the shares are finally allotted.

In a circular, SEBI said that the application form for ASBA would be printed in a booklet form of A4 size paper.

Besides, SEBI has prescribed white colour form for Resident Indian, NRIs applying on a non repatriation basis and blue colour form for NRIs, Foreign Venture Capital Investor, Foreign Institutional Investors, their Sub-Accounts (other than sub-accounts which are foreign corporates or foreign individuals bidding under the QIB Portion), on a repatriation basis.

It further said that top of the application form will have a coloured identifier strap incorporating the name of the issuer, ISIN (An International Securities Identification Number) and type of form (Repatriation, Non- Repatriation). Besides, the main application should have information about eight digit application number, PAN number, bidders depository account details, investor category, among others.

A confirmation by the applicant (on behalf of joint bidders) that he/she has read, understood and agrees to such confirmations is also required.

The regulator said that application should also highlight about different category of investors (retail, non-institutional and QIBs), number of equity shares (reservation if applicable), percentage of issue available for allotment, basis of allocation in case of over-subscription, mode of allotment and terms of payment.

The new circular will be applicable for all public issues opening on or after January 1, 2016, SEBI said.

The regulator, in August, had made ASBA facility mandatory for all categories of investors applying for a public issue.

In order to enhance the points for submission of applications, SEBI had also allowed Registrar and Share Transfer Agents (RTAs) and Depository Participants (DPs) to accept application forms (both physical as well as online) and make bids on the stock exchange platform.

This will be over and above the stock brokers and banks where such facilities are presently available. The number of bank branches with ASBA facility has now increased to about 95,500, from 9,800 when this facility was introduced.

Source: http://www.thehindu.com/business/Industry/new-form-for-asba-in-place/article8055065.ece

Czech Republic to help India modernise heavy industry

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India has signed a protocol with Czech Republic to promote bilateral cooperation in the field of heavy industry, especially in industrial cooperation and facilities construction, the Union Cabinet was apprised today.

The protocol includes modernisation of the existing facilities in India by the Czech companies, including modernisation of three plants of Heavy Engineering Corporation and a central public sector enterprise (CPSE) under the Department of Heavy Industries at Ranchi, set up with Czech support in early 1960’s.

“The aim of the protocol is to promote bilateral cooperation…in the field of heavy industry on the principle of mutual convenience and benefit, in accordance with the laws valid on the territories of the states of the Parties and their obligations resulting from other international agreements,” an official statement said.

Source:  http://economictimes.indiatimes.com/articleshow/50467014.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

US, India to boost defence ties, fast-track co-production

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India and the US have ramped up their defence and strategic ties by agreeing to fast-track co-production ventures as their defence ministers held wide-ranging talks on regional and global security issues besides discussing the growing menace of terrorism.

Defence Minister Manohar Parrikar and his American counterpart Ashton Carter held one-and-a-half hour long closed door discussions yesterday during which the two leaders “reviewed the cooperation between our armed forces which have grown stronger”.

Parrikar said India and US share a strategic partnership that reflects their shared values and interests. Defence and security cooperation is a vital component of this partnership, he said.

Describing the Indo-US defence partnership as an anchor of global security, Carter said the Obama Administration is ready to further strengthen this relationship.

“The Indo-Asia-Pacific is one of the most consequential parts of the world for America’s future. And we welcome India’s rise as a security partner in a region where half of humanity lives, and half of the world’s economic activity takes place,” Carter told reporters at a joint news conference with the visiting Indian Defence Minister.

Carter informed Parrikar that the US has updated its policy on gas-turbine engine technology transfer to India to expand cooperation in production and design of sensitive jet engine components.

As a result of this policy update, Carter said that the US will be able to expand cooperation in production and design of sensitive jet engine components.

Carter and Parrikar look forward to US companies working with their Indian counterparts to submit transfer requests that will benefit from this updated policy, said a joint statement.

During the meeting, the two leaders discussed ways and means to move the ambitious Defence Technology and Trade Initiative (DTTI) forward.

Expressing satisfaction with DTTI progress to date, the two committed themselves to identifying additional projects for possible co-development and co-production of high technology items that meet the transformational intent of DTTI, the joint statement said.

This was the third meeting between the two leaders in less than six months.

Yesterday the two leaders stayed together for nine hours, including four hours abroad USS Eisenhower, a nuclear-powered aircraft carrier.

“Through our meetings today and expanded cooperation in the days to come, the US-India defence partnership will become an anchor of global security, as together, we work towards a common future, a common future between the United States and India that is destined,” Carter said.
“This is a relationship that will be critical in strengthening the Indo-Asia-Pacific security architecture, so that everyone there can continue to rise and prosper,” said the US Defence Secretary.

Carter said he and Parrikar discussed the progress that has been made towards cooperation on jet engines and aircraft carrier design and construction as well as opportunities to collaborate on additional projects of interest, which will also further Prime Minister Narendra Modi’s ‘Make in India’ policy.

Parrikar said their desire is to further collaborate in the higher-end technologies within the framework of DTTI.

“The assurance I have, and I am confident of that India is placed at a level which would ensure that red tapism is cut. I think this is the biggest take home one can get. We have got a very clear promise and we have been experiencing it that our issues are fast-tracked,” he told reporters.

Parrikar said some US companies have shown interest in setting up manufacturing base in India for fighter jets for which India has asked the Pentagon if there is any advance clearance system from their side.

“They (US) are very positive on that,” the Minister said adding that the US side has indicated that pre-approval could be considered on all such proposals coming from companies like Boeing and Lockheed.

As many as 17 new ideas for cooperation under the DTTI are also being discussed.

“We have identified many new areas for cooperative research and development, and both sides are committed to continue to exchange ideas in the search for additional projects for possible co-development and co-production that meet the spirit of DTTI,” he said.

Both sides said that progress has been made on the Defence Technology and Trade Initiative (DTTI) pathfinder projects which include the Raven mini Unmanned Aerial Vehicles (UAVs), “roll-on, roll-off” mission modules for C-130J aircraft, Mobile Electric Hybrid Power Sources (MEHPS) and Next Generation Protective Ensemble (NGPE) for soldiers.

The two leaders discussed range of regional security issues, including the threat posed by the Islamic State and entities such as Al-Qaeda and its affiliates, Lashkar-e-Taiba, Jaish-e-Mohammad, D Company, the Haqqani Network and other regional terror groups, according the joint statement.

Parrikar said in all his meetings in the US, terrorism was one of the key issues of discussions with American leadership.

“The issue of terrorism was a key topic discussion in all engagements Terrorism has become a global phenomenon and requires a comprehensive response. Terrorists of all shades and affiliations must be countered without any differentiation,” he told reporters.

Carter said terrorism of all kinds in South Asia has been and remains a serious problem. India, he said, has been attacked and is continuously threatened with attack from terrorists. However, India has ruled out any enhancement of its role

in the Middle East in view of the emergence of deadly ISIS in Syria and Libya.

Parrikar said there has been no change in India’s policy on participating only in UN approved peacekeeping missions.

But India is and has been sharing intelligence with the US on issues related to terrorism, he said.

Source: http://www.business-standard.com/article/pti-stories/us-india-to-boost-defence-ties-fast-track-co-production-115121100316_1.html

Russia eyes trillion roubles from privatisation in 2016: Anton Siluanov, Finance Minister

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Anton Siluanov, Finance Minister, RussiaRussia aims to raise 1 trillion roubles ($13.53 billion) from privatisation next year, Finance Minister Anton Siluanov said in an interview aired on Thursday, signalling a major acceleration of plans to sell state assets.

These plans, ambitious on paper, have largely ground to a halt over the last three years against the background of poor stock market conditions, exacerbated by a plunge in oil prices and Western sanctions linked to the Ukraine conflict.

However, the same negative economic developments also mean that the government is increasingly strapped for cash, giving it an incentive to speed up privatisation as an alternative to raising taxes, cutting spending or exhausting fiscal reserves.

“Next year we will seriously change our approach to privatisation,” Siluanov said in the interview on Rossiya-24 television. “The Russian government is preparing proposals to sell stakes in large companies.”

He added that “in the first instance” the state oil firm Rosneft was being prepared for privatisation. Bashneft , a smaller oil company that was renationalised last year, is also under consideration.

Plans to sell a 19.5 per cent stake in Rosneft were first announced in 2013 and approved by the government a year ago, but progress has been minimal. Rosneft is presently 69.5 per cent state-owned.

While the finance ministry is eager to accelerate privatisation to boost state revenues, opponents – among them Rosneft’s CEO Igor Sechin – have repeatedly argued that privatisation should be delayed until stock prices are significantly higher.

Source:  http://economictimes.indiatimes.com/articleshow/50394780.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

FDI flow in to India grows by 35% in last 17 months

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Foreign direct investment into India has grown by 35 per cent in the last 17 months even as across the world it has fallen by 16 per cent, a top Union government official said today.

“FDI in India has grown by 35 per cent at a point of time when FDI across the world has fallen by 16 per cent,” Department of Industrial Policy and Promotion Secretary Amitabh Kant told reporters here.

He said ‘Make in India’ was launched in end-September last year and since then FDI has grown by 40 per cent as compared to the previous year, “but if you look at the last seventeen months of this government FDI has grown by 35 per cent as compared to the previous seventeen months.”

FDI has come into manufacturing, consumer goods, logistics and food processing sectors, he added.

Kant was today given additional charge of the post of CEO, NITI Aayog, consequent to the completion of tenure of Sindhushree Khullar.

Asked about the additional charge, he said “…I have not yet taken over.”

On startups, Kant said, “there is a huge energy, vitality and dynamism amongst startups in India and we need to carry this forward from digital startups to manufacturing startups, to startups in agriculture and social innovation areas, and from tier one to tier two and three cities.”

“The Prime Minister will be launching the Startup India movement on January 16 in New Delhi, we are inviting all the startups from Bengaluru to participate in this.”

“On that day we will link up all the IITs, IIMs, NITs and central universities for viewing of the startup India discussions from morning to evening,” he added.

He also said to provide a major impetus to the sector the Prime Minister will unveil the action plan for startups on that day.

On the economy, Kant said India is growing at 7.4 per cent and “it is an oasis of growth in the midst of a very balanced economic landscape across the world.”

“Challenge for India is to grow at 9-10 per cent over a long period of time over the next three decades or more,” he said.

“If India has to grow at 9-10 per cent India must become a very easy and simple place for people to do business….; It has to grow rapidly in manufacturing sector,” he added.

While speaking about the Make in India initiative of the government, Kant said Make in India week is being organised from February 13 to 18 in Mumbai, where about hundred countries are participating from across the world. Also, Asia business forum will be held during this event.

Stating that government is taking a series of measures to make India a very easy and a very simple place to do business, he said, “We have created an e-biz platform with Infosys where we have put twenty government services online with one single point of payment….”

“Our objective is that in the long run there should be only one identification number for the businessmen. The company identification, the labour identification and others should all get merged into one identification and there should be just one single form…..” he added.

Speaking about competition among states in ease of doing business, Kant said last year we had ranked the states on hundred points, this year we are doing it on 340 points.

“We expect Karnataka to do extremely well this year and take action on all 340 points and prove its position; Karnataka must come in top three,” he added.

 

Source: http://www.business-standard.com/article/pti-stories/fdi-flow-grows-by-35-in-last-17-months-official-115122900639_1.html

Global mergers and acquisitions hit all-time high in 2015 at $4.86 trillion: Dealogic report

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Global M&A volume at USD 4.86 trillion in 2015 was the highest on record for any year, surpassing the previous record of USD 4.61 trillion in 2007.

The 2015 was a record year for global merger and acquisitions (M&A) as corporates announced deals worth USD 4.86 trillion and a significant portion of this came from Asia Pacific targeted deals, says a report.
According to global deal tracking firm Dealogic, global M&A volume at USD 4.86 trillion in 2015 was the highest on record for any year, surpassing the previous record of USD 4.61 trillion in 2007.

Moreover, this year’s total is a good 33 per cent higher than the last year.

In another first, the Asia Pacific targeted M&A broke the USD 1 trillion mark, reaching USD 1.16 trillion in 2015, and accounted for a record 24 per cent share of global M&A.

Sectorwise, healthcare was the top ranked sector in 2015 with USD 708.7 billion, up 62 per cent from 2014 when deals worth USD 436.3 billion were announced.

Technology was a close second with record high volume and activity (USD 697.4 billion by way of 9,038 deals), almost double 2014 volume (USD 326.1 billion).
The four largest technology deals on record were all announced in 2015, led by Dell’s USD 66 billion bid for EMC, announced on October 1.
Meanwhile, Goldman Sachs (USD 1.76 trillion), Morgan Stanley (USD 1.49 trillion), JPMorgan (USD 1.48 trillion) and Bank of America Merrill Lynch (USD 1.12 trillion) all recorded their highest annual advisory volumes on record.

All these firms surpassed their previous M&A records set in 2007, the report added.

 

Source: http://economictimes.indiatimes.com/articleshow/50354461.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

SEBI allows foreign venture funds to register as FPIs, plans to finalize listing norms for startups soon

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Capital markets regulator SEBI has said that Foreign Venture Capital Investors (FVCIs) can be granted registration as a foreign portfolio investor if they meet certain guidelines.

The announcement came following a query from designated depository participant seeking clarification with regard to any restrictions on applicants, holding registration as a FVCI, from obtaining registration as a FPI (Foreign Portfolio Investor).

FVCI is an investor incorporated or established outside of India who can invest either in a domestic venture capital fund or a venture capital undertaking (domestic unlisted company), while FPI comprises of FIIs, sub-accounts and Qualified Foreign Investors.

In the circular, Securities and Exchange Board of India (SEBI) said depository participants may consider an applicant, holding FVCI registration, for grant of registration as a FPI.

The capital markets regulator “do not expressly prohibit FVCI from holding registration as a FPI.” However, the registration is subject to certain criteria like the applicant complies with the eligibility criteria as prescribed under the FPI regulations.

Other criteria include funds raised, allocated and invested must be clearly segregated for both registrations, reporting of transactions must be done separately and there should be clear segregation of securities held under FVCI and FPI registrations.

“Separate accounts must be maintained with the custodian for execution of trades. However, such an applicant shall have same custodian for its activities as FPI and FVCI,” SEBI noted.

Also, to attract technology startups to the domestic stock markets, SEBI is all set to make their listing and fund raising requirements easier. The final norms, which would be presented for approval from the SEBI’s board later this month, have been finalised after taking into account suggestions from all stakeholders to the draft guidelines released in March, sources said.

Asking technology startups founded by Indians to remain within the country, SEBI Chairman U K Sinha, last weekend, had promised an easier set of regulations for them to get listed and raise funds from the domestic stock market. “We are going to take a decision very soon in this regard. We are looking into how to make it easier for them to raise money,” Sinha had said.

The new norms are expected to help startup companies raise funds within India and stop their flight to overseas markets. “What is happening today is most of these startups, who have been reasonably successful, they are getting attracted to the New York Stock Exchange or Singapore Stock Exchange,” Sinha had said.

“They do not want to get listed here for varieties of reasons. They are getting attracted to foreign markets. Our effort is to provide a mechanism that they get listed in India itself, for the benefit of the country and for the benefit that the country’s startups remain within the country,” he had added.

Under the new norms, the entire pre-issue capital is expected to be locked-in for a period of six months for all shareholders. At present, promoters are required to offer a minimum of 20 per cent of post-issue capital as lock-in for a period of three years. Besides, SEBI is expected to make easier disclosure norms for startup listings. While filing the draft offer document with the capital market watchdog, such firms will only need to disclose broad objectives in line with the major international jurisdictions.

SEBI has already made it easier for the Small and Medium Enterprises (SMEs) to raise money from capital markets. “SMEs are primarily dependent on bank loans today and we know that banks have their own limitations. We have created separate platforms for SMEs at the two top exchanges BSE and NSE. We have balanced the requirement of safeguarding the investors and also facilitating the fund requirement of the SMEs.
Source: http://yourstory.com/2015/06/sebi-allows-foreign-venture-funds/