Shares of defence equipment makers will be in focus after the Department of Industrial Policy and Promotion (DIPP) yesterday, 26 August 2014, notified increase in foreign direct investment (FDI) limit to 49% from 26% in the defence sector. The FDI limit of 49% is a composite ceiling. It includes all kinds of foreign investments such as FDI, Foreign Institutional Investors (FIIs), Foreign Portfolio Investors (FPIs), Non-Resident Indians (NRIs), Foreign Venture Capital Investors (FVCI) and Qualified Foreign Investors (QFIs). Portfolio investment by FPIs, FIIs, NRIs, QFIs and investments by FVCIs has been capped at 24% of the total equity of the investee or joint venture company.
The applicant company seeking permission of the government for FDI up to 49% in defence sector should be an Indian company owned and controlled by resident Indian citizens. The management of the applicant company should be in Indian hands.
Foreign direct investment proposals in the defence sector above 49% will have to seek the approval of the Cabinet Committee on Security on case to case basis, wherever it is likely to result in access to modern and state of the art technology in the country, according to the press note of DIPP.
State Bank of India after market hours on Tuesday, 26 August 2014 said that it has been decided to designate Praveen Kumar Gupta as the Deputy Managing Director and Chief Financial Officer (CFO) of the bank.
The board of Canara Bank granted in-principle approval for the sub-division of one equity share of the bank having a face value of Rs 10 each into five equity shares of face value of Rs 2 each.
Tata Motors after market hours on Tuesday, 26 August 2014 in a clarification with regard to penalty imposed by the Competition Commission of India (CCI) said that the order pertains to proceedings initiated by CCI in 2011 for investigating the conduct of several leading passenger vehicle manufacturers alleging restricted covenants imposed by them for supply of spare parts and other diagnostic tools in the after-market. In its order the CCI has directed the 14 passenger vehicle companies to undertake in India compliances and filing of a report within 180 days, Tata Motors said. The company would be filing an appeal against this order before the appropriate authorities, Tata Motors added.
The CCI on Monday, 25 August 2014, levied a total penalty of Rs 2544.64 crore on 14 car makers at the rate of 2% of the average turnover after it found them to be in contravention of the provisions of the Competition Act, 2002. The penalty levied to Tata Motors is Rs 1346.46 crore.
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GMR Infrastructure said that the Management Committee of the Board approved the allotment of 18 crore warrants having an option to apply for and be allotted equivalent number of equity shares of face value of Re 1 each of an aggregate nominal amount of Rs 18 crore to GMR Infra Ventures (forming part of promoter group) at an issue price of Rs 31.50 per equity share (including premium of Rs. 30.50 per equity share). The company has received Rs 141.75 crore from GMR Infra Ventures LLP, being 25% of the consideration amount for allotment of the said warrants and the balance amount will be received upon exercising the right to subscribe equity shares against the said warrants within 18 months from the date of allotment i.e. on or before 25 February 2016.
IIFL Holdings after market hours on Tuesday, 26 August 2014 said it has received registration from Securities and Exchange Board of India (Sebi) to undertake investment advisory services. Commenting on the development, Mr. R Venkataraman, MD, said, "We are delighted to receive the registration from Sebi to act as investment adviser. With this, IIFL Holdings would be offering a wide range of investment and financial advisory services to corporate and institutional clients. IIFL Holdings believes that going forward, the advisory services platform poses promising opportunities for servicing our large client base in the new regulatory framework."
Jindal Saw after market hours on Tuesday, 26 August 2014 said that Memorandum of Understanding has been entered into between the company and SULA Shipping and Logistics in relation to restructuring of transhipment business of Jindal ITF, a wholly owned subsidiary. The definitive agreement(s) will be entered between the parties in due course, Jindal Saw said.
Shoppers Stop after market hours on Tuesday, 26 August 2014 said that two Crossword franchisee stores at Udaipur and Inorbit Mall, Bangalore, and one owned store at Kokilaben Dhirubhai Ambani Hospital and Medical Research Institute, Mumbai have been opened by the company's wholly owned subsidiary, Crossword Bookstores. With the opening of these stores, there are now 93 Crossword stores, Shoppers Stop said.
Maruti Suzuki (India) turns ex-dividend today, 27 August 2014, for final dividend of Rs 12 per share for the year ended 31 March 2014.
GAIL (India) turns ex-dividend today, 27 August 2014, for final dividend of Rs 5.90 per share for the year ended 31 March 2014.
Excel Crop Care turns ex-dividend today, 27 August 2014, for dividend of Rs 12.50 per share for the year ended 31 March 2014.
Container Corporation of India turns ex-dividend today, 27 August 2014, for final dividend of Rs 5.30 per share for the year ended 31 March 2014.
Aditya Birla Nuvo turns ex-dividend today, 27 August 2014, for dividend of Rs 7 per share for the year ended 31 March 2014.
Nilkamal turns ex-dividend today, 27 August 2014, for dividend of Rs 4 per share for the year ended 31 March 2014.
AIA Engineering turns ex-dividend today, 27 August 2014, for dividend of Rs 6 per share for the year ended 31 March 2014.
Andhra Sugars turns ex-dividend today, 27 August 2014, for dividend of Rs 5 per share for the year ended 31 March 2014.
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