6 Sep 2008, 0116 hrs IST,TNN
MUMBAI: Market regulator Securities and Exchange Board of India (Sebi) has proposed to raise individual holding limit in stock exchanges to 15% for certain types of entities from the existing 5%. Sebi on Friday said that stock exchanges, depositories, clearing corporations, banks and insurance companies may be permitted to own up to 15% in an Indian bourse. For all other types of shareholdes, however, the holding cap will remain at 5%, the market regulator said in a discussion paper released for public comment.
''Sebi has also been receiving requests from certain quarters that the present limit of 5% is acting as a deterrent for attracting long-term anchor/strategic investors in stock exchanges,'' the regulator said in the discussion paper. In the last two years, National Stock Exchange (NSE), the largest stocks exchange in India, had sold stakes to top foreign investors like NYSE Euronext and Goldman Sachs. On the other hand, The Bombay Stock Exchange (BSE), the oldest bourse in Asia, had Singapore Stock Exchange (SGX) and Deutsche Boerse (DB), each buying 5% stake in the exchange.
The Sebi proposals, if passed, will allow foreign bourses like NYSE, SGX and DB to hike their stakes in the two Indian bourses. At present SGX and DB are in the process of getting regulatory approvals for one board seat each on the BSE. In turn, BSE holds 5% in Calcutta Stock Exchange, bought last year.
At present other than NYSE and Goldman Sachs, NSE's shareholders include LIC, SBI, ICICI Bank and a host of other banks, insurance companies and financial institutions (FIs). Other than a large numbers of brokers, BSE too has a host of banks, insurance companies, FIs, corporates and high networth individuals among its shareholders.
Current rules allow a combined foreign ownership of 49% in Indian bourses of which 23% is allowed for foreign institutional investment while foreign direct investment (FDI) is capped at 26%. What this means is that in case a stock exchange is not listed, foreign shareholders could hold only upto 26% in it. At present, there are 18 recognised stock exchanges in India that have been corporatised, in which 51% is held by shareholders other than trading members, the Sebi paper said. The market regulator said feedback on its proposals had to be submitted by September 19.
Recently, SBI's merchant banking wing SBI Capital Markets reduced its holding in NSE from 5.6% to 4.3%. Sebi's proposals, if implemented, will also give a breather to certain entities holding more than 5% in commodities exchanges also since they have been following similar regulations as applicable to stock exchanges. Currently, Goldman Sachs holds 7% stake in NCDEX, Fidelity International has 9% in the MCX, while Inter Continental Exchange holds 8% in the NCDEX.
They were given time till next June to pare their holdings to 5%. Sudip Bandhyopadhyay, chief executive of Reliance Money, which has a stake in commodity exchange NMCE, said the proposal, if implemented, will help in formation of new exchanges. The Sebi's discussion paper says that stock exchanges are public institutions.
Hence, as a matter of public policy, no individual investor should be allowed to hold a predominant position in them.
Saturday, September 6, 2008
Rel Money eyes stake in HK Mercantile Exchange
NEW DELHI: Reliance Money, the retail brokerage and distribution arm of Reliance Capital, is close to signing a deal to acquire 15-26% in Hong Kong Mercantile Exchange (HKMEx). It is learnt that discussions are at an advanced stage and the deal could be signed as early as next week. The deal will value the exchange at $200 million.
HKMEx, which has been formed recently is looking to tap China’s oil market, the world’s second-largest consumer of oil. Currently, New York and London are the two key oil futures market and global prices move in tandem with trading on these two locations.
Sources informed ET that while talks are on to dilute as much as 26% in HKMEx to the Indian brokerage house, the final deal could involve Reliance Money picking around 10-15% through fresh issue of shares. Even with this holding, Reliance Money, will be the second-largest shareholder in the commodity exchange and will have a board membership.
When contacted, Reliance Money CEO Sudip Bandyopadhyay declined to comment on the developments.
Promoted by the Hong Kong government, HKMEx is also believed to have attracted investments from some large global financial majors such as Merrill Lynch, Lehman Brothers, Goldman Sachs and Morgan Stanley, but none of them hold more than 10%.
Even as Asia has emerged as a key market for global commodities due to the turbo charged manufacturing and construction activity in India and China, the region does not have a strong commodity exchange. While both India and China have local bourses, there are curbs on participation of foreign investors besides sensitivity towards certain commodities. Chinese exchanges, in particular, focus more on metals and agri commodities and Shanghai exchange which does offer oil trading is not linked to international pricing.
The other two financial centres in Asia, Singapore and Tokyo haven’t been able to emerge as a big base for commodity trading for the region. Sources say Reliance Money is eyeing a strategic stake in HKMEx to capitalise on the Chinese demand for commodities. However, the going won’t be easy for HKMEx as other established exchange houses are also eyeing a piece of China’s commodity demand. Recently, Chicago Mercantile Exchange opened its Asia Pacific headquarters in Hong Kong.
HKMEx is proposed to start trading in the first quarter of 2009 and will kick-start its operations by offering dollar-denominated oil contracts. It would also diversify into other commodities going forward.
The deal would mean an expansion of operations in Hong Kong for the Indian firm. Reliance Money had recently formed a partnership with local firm Goldride Securities headed by the former Hong Kong Stockbrokers Association chairman Anthony Espina for distributing financial products and services.
The plan to look for overseas ventures is part of Reliance Money’s strategy to generate 50% of its revenue overseas by 2013. It is in the process of starting a full-fledged financial services operations through a JV in Saudi Arabia and has plans to expand its business in over 15 countries across Europe, North Africa, the Middle East and South East Asia by March 2009. It already has operations in the UAE, Oman and Hong Kong.
HKMEx, which has been formed recently is looking to tap China’s oil market, the world’s second-largest consumer of oil. Currently, New York and London are the two key oil futures market and global prices move in tandem with trading on these two locations.
Sources informed ET that while talks are on to dilute as much as 26% in HKMEx to the Indian brokerage house, the final deal could involve Reliance Money picking around 10-15% through fresh issue of shares. Even with this holding, Reliance Money, will be the second-largest shareholder in the commodity exchange and will have a board membership.
When contacted, Reliance Money CEO Sudip Bandyopadhyay declined to comment on the developments.
Promoted by the Hong Kong government, HKMEx is also believed to have attracted investments from some large global financial majors such as Merrill Lynch, Lehman Brothers, Goldman Sachs and Morgan Stanley, but none of them hold more than 10%.
Even as Asia has emerged as a key market for global commodities due to the turbo charged manufacturing and construction activity in India and China, the region does not have a strong commodity exchange. While both India and China have local bourses, there are curbs on participation of foreign investors besides sensitivity towards certain commodities. Chinese exchanges, in particular, focus more on metals and agri commodities and Shanghai exchange which does offer oil trading is not linked to international pricing.
The other two financial centres in Asia, Singapore and Tokyo haven’t been able to emerge as a big base for commodity trading for the region. Sources say Reliance Money is eyeing a strategic stake in HKMEx to capitalise on the Chinese demand for commodities. However, the going won’t be easy for HKMEx as other established exchange houses are also eyeing a piece of China’s commodity demand. Recently, Chicago Mercantile Exchange opened its Asia Pacific headquarters in Hong Kong.
HKMEx is proposed to start trading in the first quarter of 2009 and will kick-start its operations by offering dollar-denominated oil contracts. It would also diversify into other commodities going forward.
The deal would mean an expansion of operations in Hong Kong for the Indian firm. Reliance Money had recently formed a partnership with local firm Goldride Securities headed by the former Hong Kong Stockbrokers Association chairman Anthony Espina for distributing financial products and services.
The plan to look for overseas ventures is part of Reliance Money’s strategy to generate 50% of its revenue overseas by 2013. It is in the process of starting a full-fledged financial services operations through a JV in Saudi Arabia and has plans to expand its business in over 15 countries across Europe, North Africa, the Middle East and South East Asia by March 2009. It already has operations in the UAE, Oman and Hong Kong.
Sebi seeks investment cap hike in bourses-India Business-Business ...
6 Sep 2008, 0116 hrs IST,TNN
MUMBAI: Market regulator Securities and Exchange Board of India (Sebi) has proposed to raise individual holding limit in stock exchanges to 15% for certain types of entities from the existing 5%. Sebi on Friday said that stock exchanges, depositories, clearing corporations, banks and insurance companies may be permitted to own up to 15% in an Indian bourse. For all other types of shareholdes, however, the holding cap will remain at 5%, the market regulator said in a discussion paper released for public comment.
''Sebi has also been receiving requests from certain quarters that the present limit of 5% is acting as a deterrent for attracting long-term anchor/strategic investors in stock exchanges,'' the regulator said in the discussion paper. In the last two years, National Stock Exchange (NSE), the largest stocks exchange in India, had sold stakes to top foreign investors like NYSE Euronext and Goldman Sachs. On the other hand, The Bombay Stock Exchange (BSE), the oldest bourse in Asia, had Singapore Stock Exchange (SGX) and Deutsche Boerse (DB), each buying 5% stake in the exchange.
The Sebi proposals, if passed, will allow foreign bourses like NYSE, SGX and DB to hike their stakes in the two Indian bourses. At present SGX and DB are in the process of getting regulatory approvals for one board seat each on the BSE. In turn, BSE holds 5% in Calcutta Stock Exchange, bought last year.
At present other than NYSE and Goldman Sachs, NSE's shareholders include LIC, SBI, ICICI Bank and a host of other banks, insurance companies and financial institutions (FIs). Other than a large numbers of brokers, BSE too has a host of banks, insurance companies, FIs, corporates and high networth individuals among its shareholders.
Current rules allow a combined foreign ownership of 49% in Indian bourses of which 23% is allowed for foreign institutional investment while foreign direct investment (FDI) is capped at 26%. What this means is that in case a stock exchange is not listed, foreign shareholders could hold only upto 26% in it. At present, there are 18 recognised stock exchanges in India that have been corporatised, in which 51% is held by shareholders other than trading members, the Sebi paper said. The market regulator said feedback on its proposals had to be submitted by September 19.
Recently, SBI's merchant banking wing SBI Capital Markets reduced its holding in NSE from 5.6% to 4.3%. Sebi's proposals, if implemented, will also give a breather to certain entities holding more than 5% in commodities exchanges also since they have been following similar regulations as applicable to stock exchanges. Currently, Goldman Sachs holds 7% stake in NCDEX, Fidelity International has 9% in the MCX, while Inter Continental Exchange holds 8% in the NCDEX.
They were given time till next June to pare their holdings to 5%. Sudip Bandhyopadhyay, chief executive of Reliance Money, which has a stake in commodity exchange NMCE, said the proposal, if implemented, will help in formation of new exchanges. The Sebi's discussion paper says that stock exchanges are public institutions.
Hence, as a matter of public policy, no individual investor should be allowed to hold a predominant position in them.
MUMBAI: Market regulator Securities and Exchange Board of India (Sebi) has proposed to raise individual holding limit in stock exchanges to 15% for certain types of entities from the existing 5%. Sebi on Friday said that stock exchanges, depositories, clearing corporations, banks and insurance companies may be permitted to own up to 15% in an Indian bourse. For all other types of shareholdes, however, the holding cap will remain at 5%, the market regulator said in a discussion paper released for public comment.
''Sebi has also been receiving requests from certain quarters that the present limit of 5% is acting as a deterrent for attracting long-term anchor/strategic investors in stock exchanges,'' the regulator said in the discussion paper. In the last two years, National Stock Exchange (NSE), the largest stocks exchange in India, had sold stakes to top foreign investors like NYSE Euronext and Goldman Sachs. On the other hand, The Bombay Stock Exchange (BSE), the oldest bourse in Asia, had Singapore Stock Exchange (SGX) and Deutsche Boerse (DB), each buying 5% stake in the exchange.
The Sebi proposals, if passed, will allow foreign bourses like NYSE, SGX and DB to hike their stakes in the two Indian bourses. At present SGX and DB are in the process of getting regulatory approvals for one board seat each on the BSE. In turn, BSE holds 5% in Calcutta Stock Exchange, bought last year.
At present other than NYSE and Goldman Sachs, NSE's shareholders include LIC, SBI, ICICI Bank and a host of other banks, insurance companies and financial institutions (FIs). Other than a large numbers of brokers, BSE too has a host of banks, insurance companies, FIs, corporates and high networth individuals among its shareholders.
Current rules allow a combined foreign ownership of 49% in Indian bourses of which 23% is allowed for foreign institutional investment while foreign direct investment (FDI) is capped at 26%. What this means is that in case a stock exchange is not listed, foreign shareholders could hold only upto 26% in it. At present, there are 18 recognised stock exchanges in India that have been corporatised, in which 51% is held by shareholders other than trading members, the Sebi paper said. The market regulator said feedback on its proposals had to be submitted by September 19.
Recently, SBI's merchant banking wing SBI Capital Markets reduced its holding in NSE from 5.6% to 4.3%. Sebi's proposals, if implemented, will also give a breather to certain entities holding more than 5% in commodities exchanges also since they have been following similar regulations as applicable to stock exchanges. Currently, Goldman Sachs holds 7% stake in NCDEX, Fidelity International has 9% in the MCX, while Inter Continental Exchange holds 8% in the NCDEX.
They were given time till next June to pare their holdings to 5%. Sudip Bandhyopadhyay, chief executive of Reliance Money, which has a stake in commodity exchange NMCE, said the proposal, if implemented, will help in formation of new exchanges. The Sebi's discussion paper says that stock exchanges are public institutions.
Hence, as a matter of public policy, no individual investor should be allowed to hold a predominant position in them.
Sunday, August 31, 2008
Market to move in a narrow range - Money & You (The Sunday ET)
Entire South East Asia is currently evaluating and emulating relevant lessons from “Thaksinomics” made famous by the ex-Prime Minister of Thailand, Thaksin Shinawatra. His bottom-up approach to economics has gathered widespread appeal across the developing world. Thaksin’s approach — that access to capital, employment opportunities and basic social services can transform disadvantaged regions into growth engines — is now an accepted wisdom.
Chinese President Hu Jintao called for “harmonious growth” when the Chinese National People’s Congress met last March. This week, the Chinese and the Hong Kong press have been speculating that Beijing would soon declare a massive fiscal stimulus package targeting disadvantaged sectors of the economy.
The income disparities and structural flaws are particularly apparent in the fast developing BRIC nations. India, China, Russia and Brazil all suffer from these flaws. A massive oil discovery and investment grade credit ratings fuelled expectations that prosperity for Brazil’s 185 million people was only a matter of time. But a historic neglect of education is a major roadblock in Brazil’s quest to join the big leagues of developed economies.
Many critical structural reforms are still awaited in India and need to be carried out without any further delay to ensure political, economic and social harmony. The proposed pension, commodity market, banking and other financial sector reforms, rural education and development initiatives need to be put on an accelerated growth trajectory. The real task of balanced nation building needs to start without any further delay.
The Indian capital markets last week witnessed sharp movements during the week and ended in positive territory in spite of negative headwinds again coming in from the crude oil basket. On the positive side, headline Inflation numbers during the week turned out to be moderately lower at 12.40 per cent from 12.64 per cent in the previous week. The decline in inflationary levels was primarily driven down by lower prices of non-administered fuel products but Inflation is yet to peak off convincingly which could take another three-six weeks.
Meanwhile, the GDP growth during Q1 2008-09 (Apr-Jun) stood at 7.90 per cent slightly below the consensus expectation of 8.02 per cent; (Q4 2007-08: 8.8 per cent; Q1 2007-08: 9.2 per cent). This is the first time that the GDP growth has slipped below 8 per cent after nine quarters. More importantly high oil prices, and a whopping fertiliser subsidy bill are likely to ensure that the government exceed the fiscal deficit target of 2.5 per cent of the GDP for 2008-09 by a significantly higher margin.
In case oil prices continue to remain high for a much longer period, it would be no surprise that the government would have to take some hard decisions. Also, with the monsoons being only moderately positive till date and not excellent as compared to last year, there is a growing belief that agriculture growth for the coming year may well disappoint and offer little support to the GDP growth this year. Incidentally Q1FY09 farm sector growth stood at 3 per cent versus 4.4 per cent (YoY).
On the global markets front, stronger exports and higher consumer spending supported by the government saw GDP growth in the US growing robustly by 3.3 per cent in Q2 after recording a 0.9% growth in Q1 of current year. Consumer spending, which fuels two-thirds of the US economy, grew at 1.7 per cent with exports growing at 13.2 per cent in this period. In the domestic capital market, expiry of Aug Series in F&O had usual jitters and the series closed indecisively.
However, the start to the Sept series was with a bang on the back of very positive global cues and moderating domestic inflation. Unlike last month, this series has started off on little heavier side with more rollovers on stock futures side.(83 per cent), indicating more action outside index. FIIs continued to remain net sellers through the month of August to the tune of Rs 3,088 crore, thereby indicating cautious approach on the Indian markets.
Volumes still continue to remain low and are clearly indicative of lesser participation from institutional players.
In view of a truncated week and no build-ups on positive or negative side either, the coming week may see a ‘ranged’ and indecisive movement in the index. Action may get shifted to stock-specific trading.
(The writer is CEO, Reliance Money)
Chinese President Hu Jintao called for “harmonious growth” when the Chinese National People’s Congress met last March. This week, the Chinese and the Hong Kong press have been speculating that Beijing would soon declare a massive fiscal stimulus package targeting disadvantaged sectors of the economy.
The income disparities and structural flaws are particularly apparent in the fast developing BRIC nations. India, China, Russia and Brazil all suffer from these flaws. A massive oil discovery and investment grade credit ratings fuelled expectations that prosperity for Brazil’s 185 million people was only a matter of time. But a historic neglect of education is a major roadblock in Brazil’s quest to join the big leagues of developed economies.
Many critical structural reforms are still awaited in India and need to be carried out without any further delay to ensure political, economic and social harmony. The proposed pension, commodity market, banking and other financial sector reforms, rural education and development initiatives need to be put on an accelerated growth trajectory. The real task of balanced nation building needs to start without any further delay.
The Indian capital markets last week witnessed sharp movements during the week and ended in positive territory in spite of negative headwinds again coming in from the crude oil basket. On the positive side, headline Inflation numbers during the week turned out to be moderately lower at 12.40 per cent from 12.64 per cent in the previous week. The decline in inflationary levels was primarily driven down by lower prices of non-administered fuel products but Inflation is yet to peak off convincingly which could take another three-six weeks.
Meanwhile, the GDP growth during Q1 2008-09 (Apr-Jun) stood at 7.90 per cent slightly below the consensus expectation of 8.02 per cent; (Q4 2007-08: 8.8 per cent; Q1 2007-08: 9.2 per cent). This is the first time that the GDP growth has slipped below 8 per cent after nine quarters. More importantly high oil prices, and a whopping fertiliser subsidy bill are likely to ensure that the government exceed the fiscal deficit target of 2.5 per cent of the GDP for 2008-09 by a significantly higher margin.
In case oil prices continue to remain high for a much longer period, it would be no surprise that the government would have to take some hard decisions. Also, with the monsoons being only moderately positive till date and not excellent as compared to last year, there is a growing belief that agriculture growth for the coming year may well disappoint and offer little support to the GDP growth this year. Incidentally Q1FY09 farm sector growth stood at 3 per cent versus 4.4 per cent (YoY).
On the global markets front, stronger exports and higher consumer spending supported by the government saw GDP growth in the US growing robustly by 3.3 per cent in Q2 after recording a 0.9% growth in Q1 of current year. Consumer spending, which fuels two-thirds of the US economy, grew at 1.7 per cent with exports growing at 13.2 per cent in this period. In the domestic capital market, expiry of Aug Series in F&O had usual jitters and the series closed indecisively.
However, the start to the Sept series was with a bang on the back of very positive global cues and moderating domestic inflation. Unlike last month, this series has started off on little heavier side with more rollovers on stock futures side.(83 per cent), indicating more action outside index. FIIs continued to remain net sellers through the month of August to the tune of Rs 3,088 crore, thereby indicating cautious approach on the Indian markets.
Volumes still continue to remain low and are clearly indicative of lesser participation from institutional players.
In view of a truncated week and no build-ups on positive or negative side either, the coming week may see a ‘ranged’ and indecisive movement in the index. Action may get shifted to stock-specific trading.
(The writer is CEO, Reliance Money)
Friday, August 29, 2008
Reliance Money enters Eurozone
29 Aug 2008, 0021 hrs IST, Partha Sinha,TNN
MUMBAI: While a host of brokerages in India are shrinking to tide over the current rough patch, Reliance Money, the largest broking house in the country in terms of customers, expanded its operations to the Eurozone, aiming to tap nearly 2 million non-resident Indians (NRIs) and people of Indian origin (PIOs) residing there.
The ADA Group firm has already set up a company in Ireland, Reliance Money Ireland, and is awaiting regulatory nod from UK's Financial Services Authority (FSA) to start operations in the London market, Sudip Bandyopadhyay, CEO, Reliance Money told TOI.
"Initially we will target NRIs and PIOs in the English-speaking areas within the Eurozone. Once we reach a critical scale, other areas within the Eurozone will follow," Bandyopadhyay said. As per estimates, nearly 1.5 million NRIs and PIOs live in the English-speaking Euro area.
With its office in Dublin (Ireland), Reliance Money now enjoys what is called 'passport facility,' allowing it to operate in the whole of Eurozone with minimal regulatory clearance. In the last one year, it had started its operations across Asia and also entered Africa, setting up operations in Dubai, Muscat, Nigeria, Hong Kong and Riyadh.
The company is also planning to set up offices in Kuwait, Qatar, Bahrain and Malaysia. Although some of the Indian broking houses are present in the UK, these firms mainly cater to the FII clients.
MUMBAI: While a host of brokerages in India are shrinking to tide over the current rough patch, Reliance Money, the largest broking house in the country in terms of customers, expanded its operations to the Eurozone, aiming to tap nearly 2 million non-resident Indians (NRIs) and people of Indian origin (PIOs) residing there.
The ADA Group firm has already set up a company in Ireland, Reliance Money Ireland, and is awaiting regulatory nod from UK's Financial Services Authority (FSA) to start operations in the London market, Sudip Bandyopadhyay, CEO, Reliance Money told TOI.
"Initially we will target NRIs and PIOs in the English-speaking areas within the Eurozone. Once we reach a critical scale, other areas within the Eurozone will follow," Bandyopadhyay said. As per estimates, nearly 1.5 million NRIs and PIOs live in the English-speaking Euro area.
With its office in Dublin (Ireland), Reliance Money now enjoys what is called 'passport facility,' allowing it to operate in the whole of Eurozone with minimal regulatory clearance. In the last one year, it had started its operations across Asia and also entered Africa, setting up operations in Dubai, Muscat, Nigeria, Hong Kong and Riyadh.
The company is also planning to set up offices in Kuwait, Qatar, Bahrain and Malaysia. Although some of the Indian broking houses are present in the UK, these firms mainly cater to the FII clients.
Monday, August 11, 2008
BSE calls off NMCE stake buy plan, Rel Money may move in
MUMBAI : The deepening internal crisis at the Bombay Stock Exchange (BSE) appears to have had an impact on exchange’s plans to foray into the commodities market.
Asia’s oldest stock exchange has reversed its decision to buy a 26% stake in Ahmedabad-based National Multi-Commodity Exchange (NMCE), according to officials familiar with the development.
The Rs 35-crore deal could not be operationalised even after five months of signing the agreement between the two exchanges.
An official with knowledge of the deal said that the transaction had been kept on hold for a long time, primarily due to serious differences among BSE board members over functioning and decision-making in the management.
These differences have led to the resignations of non-executive chairman Shekhar Dutta, managing director Rajnikant Patel and director Jamshyd Godrej.
“The deal has been in limbo because of some legal compliances which could not be followed. Its failure is nothing to do with the current crisis in the BSE management,” said a BSE board member.
After the completion of the process of corporatisation and demutualisation, the going has not been smooth for BSE, which has caused concern among broker-shareholders and strategic investors. The BSE management has not been able to address key areas of concern, particularly the dormant F&O segment.
This has dampened exchange’s growth and reduced competitiveness, according to stock brokers. While confirming that BSE has dropped its plans to acquire a stake of 26% in NMCE, its managing director Kailash Gupta declined to elaborate on the reasons for this development. However, he said, “They may have some internal problems.”
Reliance Money, a securities brokerage and distribution company of the Anil Dhirubhai Ambani Group, had showed an interest in acquiring a 26% stake in NMCE last month.
Mr Gupta said that with the BSE calling off the deal, there is a possibility that Reliance Money could acquire a 26% stake in NMCE subject to regulatory approvals.
He said that the issue was still being discussed with other shareholders regarding the shareholding pattern.
Asia’s oldest stock exchange has reversed its decision to buy a 26% stake in Ahmedabad-based National Multi-Commodity Exchange (NMCE), according to officials familiar with the development.
The Rs 35-crore deal could not be operationalised even after five months of signing the agreement between the two exchanges.
An official with knowledge of the deal said that the transaction had been kept on hold for a long time, primarily due to serious differences among BSE board members over functioning and decision-making in the management.
These differences have led to the resignations of non-executive chairman Shekhar Dutta, managing director Rajnikant Patel and director Jamshyd Godrej.
“The deal has been in limbo because of some legal compliances which could not be followed. Its failure is nothing to do with the current crisis in the BSE management,” said a BSE board member.
After the completion of the process of corporatisation and demutualisation, the going has not been smooth for BSE, which has caused concern among broker-shareholders and strategic investors. The BSE management has not been able to address key areas of concern, particularly the dormant F&O segment.
This has dampened exchange’s growth and reduced competitiveness, according to stock brokers. While confirming that BSE has dropped its plans to acquire a stake of 26% in NMCE, its managing director Kailash Gupta declined to elaborate on the reasons for this development. However, he said, “They may have some internal problems.”
Reliance Money, a securities brokerage and distribution company of the Anil Dhirubhai Ambani Group, had showed an interest in acquiring a 26% stake in NMCE last month.
Mr Gupta said that with the BSE calling off the deal, there is a possibility that Reliance Money could acquire a 26% stake in NMCE subject to regulatory approvals.
He said that the issue was still being discussed with other shareholders regarding the shareholding pattern.
Sunday, August 10, 2008
Now, Indians can trade on a dozen global stock exchanges-India ...
10 Aug 2008, 1801 hrs IST,PTI
NEW DELHI: Dalal Street is no more the single avenue for Indians looking to invest in stocks, with leading retail brokerage firm Anagram becoming third major domestic player to offer the investors here an opportunity to invest in overseas equity markets.
Indian investors will be able to directly trade on a real time basis in stocks listed on as many as 12 bourses in the US, Europe, Asia and Middle East from next month through a new e-trading initiative being launched by Anagram.
When contacted, Anagram's retail business CEO Mayank Shah confirmed the development saying the company has signed an agreement with a Dubai-based firm to offer real-time online trading for Indian investors in multiple markets and international exchanges.
"We have signed an agreement with Mubasher Financial Services, a Dubai-based leading market information and e-trading platform provider, to offer real time online trading for Indian investors," Shah said.
Anagram plans to target High Networth Individuals (HNIs) and Super HNIs for its new offering and these investors could become a key driver for this platform, he added.
The new offering would provide investors an opportunity to diversify their risk and assets in a bid to leverage on newer opportunities and help maximise their gains, the industry experts believe.
While Shah declined to divulge further details, industry experts believe this Internet-based online real time platform would enable Indian clients to buy or sell equity shares on premium International Exchanges like NYSE, NASDAQ, American Stock Exchange, London Stock Exchange among others.
It is understood Anagram also plans to offer equity trading on other stock exchanges including those in Hong Kong, Luxembourg, Korea, Brazil, Russia, Indonesia, China, Malaysia, Mexico, Argentina, Vietnam and Taiwan in the next 6-9 months.
"This unique offering is a part of Anagram's constant endeavour to offer value-added services to out increasing customer base, globally, including Dubai where we intend to open our office," Anagram Chairman Munesh Khanna said.
The offering would provide round-the-clock access to stock markets in different time zones, according to their trading timings, Shah added.
Anagram would be the first entity to offer real time, secure e-trading platform across multiple exchanges in more than one continent to its over 1.50 lakh strong retail investor base.
Asked whether investors would be interested in looking at other market amid concerns of global slowdown, Shah said, with the platform investors can invest in other emerging markets like China, which have performed relatively better than other developed markets.
"This is giving investors to choose from stocks from various markets across the world and seek the most attractive valuations," Shah said.
Last year, leading online domestic brokerage firm ICICI Direct launched delivery-based trading in shares listed on the US stock exchanges, while Anil Ambani group's brokerage and financial services distribution arm Reliance Money also offers overseas trading facility through a tie-up with CMC Markets.
Trading in overseas stocks has become possible after the Reserve Bank of India (RBI) allowed individuals to remit up to 2,00,000 dollars annually in current and capital account including equities.
NEW DELHI: Dalal Street is no more the single avenue for Indians looking to invest in stocks, with leading retail brokerage firm Anagram becoming third major domestic player to offer the investors here an opportunity to invest in overseas equity markets.
Indian investors will be able to directly trade on a real time basis in stocks listed on as many as 12 bourses in the US, Europe, Asia and Middle East from next month through a new e-trading initiative being launched by Anagram.
When contacted, Anagram's retail business CEO Mayank Shah confirmed the development saying the company has signed an agreement with a Dubai-based firm to offer real-time online trading for Indian investors in multiple markets and international exchanges.
"We have signed an agreement with Mubasher Financial Services, a Dubai-based leading market information and e-trading platform provider, to offer real time online trading for Indian investors," Shah said.
Anagram plans to target High Networth Individuals (HNIs) and Super HNIs for its new offering and these investors could become a key driver for this platform, he added.
The new offering would provide investors an opportunity to diversify their risk and assets in a bid to leverage on newer opportunities and help maximise their gains, the industry experts believe.
While Shah declined to divulge further details, industry experts believe this Internet-based online real time platform would enable Indian clients to buy or sell equity shares on premium International Exchanges like NYSE, NASDAQ, American Stock Exchange, London Stock Exchange among others.
It is understood Anagram also plans to offer equity trading on other stock exchanges including those in Hong Kong, Luxembourg, Korea, Brazil, Russia, Indonesia, China, Malaysia, Mexico, Argentina, Vietnam and Taiwan in the next 6-9 months.
"This unique offering is a part of Anagram's constant endeavour to offer value-added services to out increasing customer base, globally, including Dubai where we intend to open our office," Anagram Chairman Munesh Khanna said.
The offering would provide round-the-clock access to stock markets in different time zones, according to their trading timings, Shah added.
Anagram would be the first entity to offer real time, secure e-trading platform across multiple exchanges in more than one continent to its over 1.50 lakh strong retail investor base.
Asked whether investors would be interested in looking at other market amid concerns of global slowdown, Shah said, with the platform investors can invest in other emerging markets like China, which have performed relatively better than other developed markets.
"This is giving investors to choose from stocks from various markets across the world and seek the most attractive valuations," Shah said.
Last year, leading online domestic brokerage firm ICICI Direct launched delivery-based trading in shares listed on the US stock exchanges, while Anil Ambani group's brokerage and financial services distribution arm Reliance Money also offers overseas trading facility through a tie-up with CMC Markets.
Trading in overseas stocks has become possible after the Reserve Bank of India (RBI) allowed individuals to remit up to 2,00,000 dollars annually in current and capital account including equities.
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