Consequent upon the appointment of Mr. C. B. Bhave as the Chairman of Securities and Exchange Board of India, Mr. Gagan Rai, the Executive Director of NSDL has been appointed as the Managing Director and CEO of NSDL. The Board also appointed Dr. R. H. Patil as the non-executive Chairman of NSDL. Mr. Gagan Rai has been the Executive Director, NSDL since its inception in 1996.

Before joining NSDL, Mr. Rai who has three decades of experience in financial arena, has worked with Industrial Development Bank of India (IDBI) and Credit Analysis & Research Limited (CARE).

Investor Accounts (Active with PAN) : 75,07,906
DP Service Centres : 7,106
Demat Custody Value (Rs. crore): 47,14,890 (US$ 1,192 billion)

The equity shares of J.Kumar Infraprojects Limited (SymboL JKIL) shall be listed and admitted to dealings on the National Stock Exchange w.e.f. February 12, 2008. Trading shall be in the Normal Market segment – Compulsory Demat (Rolling Settlement) for all investors.

Bombay Stock Exchange has announced that effective from Tuesday, February 12, 2008 the equity shares of J.Kumar Infraprojects Limited (Scrip Code: 532940) shall be listed and admitted to dealings on the Exchange in the list of ‘B1’ Group of Securities.

The company issued shares of Rs 10 each for cash at a price of Rs 120/- (Face Value: Rs 10 per share, Premium: Rs 110 per share) in the recently concluded IPO.

The ISIN Code of the company is INE576I01014.

Karvy Computershare Private Limited is the Registrar to the issue.

The equity shares of Cords Cable Industries Limited (SymboL: CORDSCABLE) shall be listed and admitted to dealings on the National Stock Exchange w.e.f. February 13, 2008. Trading shall be in the Normal Market segment – Compulsory Demat (Rolling Settlement) for all investors.

Bombay Stock Exchange has announced that effective from Wednesday, February 13, 2008 the equity shares of Cords Cable Industries Limited (Scrip Code: 532941) shall be listed and admitted to dealings on the Exchange in the list of ‘B1’ Group of Securities.

The company issued shares of Rs 10 each for cash at a price of Rs 135/- (Face Value: Rs 10 per share, Premium: Rs 125 per share) in the recently concluded IPO.

The ISIN Code of the company is INE792I01017.

Intime Spectrum Registry Limited is the Registrar to the issue

Dematerialisation of tax deducted at source (TDS) certificates is likely to be deferred by a year from the proposed date of April 1, 2008. The scheme was originally scheduled to come into effect from April 2005, but was deferred twice. 
 
“Demat of TDS certificates is likely to be deferred by a year or at least six months,” a finance ministry official said. An announcement is expected in the Budget. 
 
The delay will be a result of many central and state government departments not yet obtaining the Permanent Account Number (PAN) and the Tax Deduction Account Number (TAN), both pre-requisites for moving to the proposed paper-less certificate system. 
 
For dematerialisation to become a reality, all tax deductors need to file TDS returns electronically and mention taxes paid against each PAN. A tax deductor like a company, a firm or contractor, also has to mention the TAN. 
 
Due to the delay, tax payers will have to continue holding on to their paper TDS or tax collected at source (TCS) certificates as proof to avail of credit for the tax paid. Under the dematerialisation system, a tax payer will not be required to possess a physical certificate to claim credits. 
 
Based on the TDS paid, an annual statement of taxes will be prepared in the e-format by every government department for each taxpayer. 
 
The tax payer’s annual return of income will then be compared with the TDS data available electronically. Refunds for excess tax paid will happen automatically and quickly, without manual intervention. 
 
Official sources pointed out that not only have many government departments not applied for the TAN number, they do not even file their TDS returns and deposit tax collections in time. Similarly, other tax deductors like transport operators and race course organisations are also not providing the PAN of tax payers. 
 
“Unless all tax deductors provide PAN and TAN correctly, it will not be possible to move towards dematerialisation and faster tax credit. As a result of providing incorrect numbers, taxes are getting deducted or paid to wrong accounts,” officials added. 
 
Until all taxes deducted, collected or paid are matched in the Online Tax Accounting System and complete information is entered in the deductees’ account, dematerialisation cannot fully substitute the existing paper-based system, sources added. 
 
E-filing of TDS returns, which has been made mandatory for companies and government departments, has been further extended for all TDS deductors from September 1, 2007. 

Investor Accounts (Active with PAN) : 74,24,476
DP Service Centres  : 7,100
Demat Custody Value : 48,50,518 (Rs. crore) (US$ 1,232 billion)

After raising about three billion dollars through the initial public offer (IPO) of its power arm, another Anil Ambani Group firm Reliance Infratel, has filed papers with SEBI to enter the capital market.

Reliance Communications’ subsidiary Reliance Infratel has proposed to offer 8.91 crore equity shares of Rs 5 each for cash at a premium, which would be decided through 100 per cent book building process, the company said in a statement.

The issue would constitute 10.05 per cent of the post issue paid-up equity capital of the company.

The company has filed its Draft Red Herring Prospectus with market regulator SEBI on Monday.

The issue proceeds would be utilised to fund development of passive infrastructure sites and for general corporate purposes.

Reliance Infratel builds, owns and operates telecommunication towers and related assets at designated sites. It also offers these passive telecom infrastructure assets on a shared basis to wireless service providers and other communications service providers under long-term contracts.

Atleast 60 per cent of the issue would be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs), of which 5 per cent would be available for allocation to Mutual Funds only.

The remaining QIB portion would be available for allocation to all the QIB bidders, including Mutual Funds, subject to valid bids being received at or above issue price.

Reliance Power, part of the Reliance Anil Dhirubhai Ambani group which recently completed its largest IPO in the history of Indian Capital market, will debut on the Stock Exchanges on the 11th of February 2008, subject to all regulatory and other approvals.

The Equity Shares, offered through this IPO, will be listed on both the Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).

Reliance Power has credited its shares to the demat accounts of the successful allottes in the IPO.

Reliance Power had carried out allotment and refund exercise post closure of the IPO in a record short time of 10 working days considering that this IPO was by far the largest in the history of Indian capital markets. Reliance Power IPO attracted over 5 million bids from all categories of domestic and international investors with aggregate commitment of over Rs 750,000 crore, as against the Issue size of Rs. 11,560 crore.

Reliance Power IPO was oversubscribed approximately 70 times. 60% of the Net Issue reserved for Qualified Institutional Buyers (“QIBs”), was oversubscribed  82.5 times, 10% of the Net Issue reserved for Non Institutional Investors was oversubscribed  159.6 times and 30% of the Net Issue reserved for Retail investors was oversubscribed  13.6 times.

With approximately 42 lakh shareholders Reliance Power will be the largest shareholder base company among the companies listed on the Stock Exchanges.

Even as the central bank is grappling with a deluge of foreign exchange inflows, back home huge amounts have flowed into the banking system parked in current accounts of various banks in the past two to three weeks, thereby increasing the money supply.

According to the latest figures released by the Reserve Bank of India (RBI) in its weekly statistical supplement (WSS), total foreign exchange reserves in the system rose $3.4 billion during the week ended January 25 to touch $288.3 billion. In the past two to three weeks, there was a forex inflow of nearly $12 billion into the system, mainly to be invested in a slew of IPOs lined up during the period and in the days to come.

In addition to foreign money, even a number of domestic investors applying for IPOs have added Rs 29,236 crore to demand deposits of commercial banks during the fortnight ended January 18. As a result, the total stock of money — of which demand deposits account for a sizeable share — in the system went up Rs 56,771 crore to touch Rs 38,07,105 crore. All components of money supply — currency, term deposits as well as demand deposits — recorded a strong growth during the fortnight.

At the current levels, the annual year-on-year (y-o-y) growth in money supply went up to 23.8% compared to 22.4% as of end of the previous fortnight. At the current levels, the money supply growth is way above the central bank’s comfort levels of 17-17.5%.

In the banking sector, aggregate deposits mobilised by commercial banks amounted to Rs 30,30,640 crore as on January 18, up Rs 42,433 crore over the previous fortnight’s levels. While demand deposits rose Rs 29,236 crore, term deposits with commercial banks rose Rs 13,198 crore.

Investments in government and other approved securities by banks touched Rs 9,58,496 crore as on January 18, up Rs 3,607 crore over the previous fortnight’s levels. Loans extended by them touched Rs 21,66,847 crore, up Rs 20,329 crore, against the previous fortnight’s levels. While food credit dipped Rs 2,100 crore, non-food credit moved up Rs 22,420 crore during the fortnight.

In other developments reported in the WSS, the Centre has refrained from resorting to ways and means advances (WMA) — a temporary overdraft to meet its revenue mismatches. States, on the other hand, dipped Rs 30 crore to Rs 26 crore during the week ended January 25.

Source : TOI

Anil Ambani-owned Reliance Power Limited (RPL), which recently came out with an initial public offering (IPO), on Friday announced that it had completed the allotment of shares to successful investors as per the basis of allotment approved by the stock exchange.According to an official release here, the company has commenced refunding the excess application money. The refunds to QIBs (qualified institutional buyers) and non-institutional investors have been effected through electronic credits.

Record time

The allotment and refund exercise post-closure of the IPO has been carried out in a record time of ten working days. The IPO had attracted over five million bids from all categories of domestic and international investors with aggregate commitment of over Rs. 750,000 crore against the issue size of Rs. 11,560 crore.

The 60 per cent of the net issue reserved for the QIBs was oversubscribed 82.5 times. Five per cent of this category has been allotted on a proportionate basis to mutual funds only. An aggregate of 446 domestic and international QIBs will receive only 1.2 per cent of their applied quantity of shares. Ten per cent of the net issue reserved for non-institutional investors was oversubscribed 159.6 times. About 12,000 non-institutional investors will receive only 0.6 per cent of their applied quantity of shares.

Thirty per cent of the net issue reserved for retail investors was oversubscribed 13.6 times. Retail investors have been issued shares at a discount of Rs. 20 at Rs. 430 per share.

Over 41.7 lakh successful bidders in the retail category will get about 15 shares each while about 4.5 lakh retail investors who bid for less than 225 shares will not get any shares according to the allocation as approved. The excess application money of about Rs. 100,000 crore received from the investors is being refunded to the investors.

Post-allotment, Reliance Power has about 42 lakh shareholders.