Current Affairs India - 25 June 2013

1. To safeguard the interest of public shareholders, the Securities and Exchange Board of India-s (SEBI) has approved making it mandatory for the companies to buyback at least 50% of their repurchase offers.  Also, the companies would have to complete their buyback offers within six months, from current timeline of 12 months.

In another major decision, the SEBI board also approved measures for making transparent the share allotment to certain investors on preferential basis and said that the payments for such issuances would need to be made from the own bank accounts of such entities.

2. The SEBI board also approved merging different classes of investors such as FIIs, their Sub Accounts and Qualified Foreign Investors (QFIs) into a new category, Foreign Portfolio Investors (FPIs), to come up with a simplified and uniform set of entry norms for foreign investors. The decisions were taken based on the outcome of a report of the 'Committee on Rationalisation of Investment Routes and Monitoring of Foreign Portfolio Investments' under the Chairmanship of former Cabinet Secretary K M Chandrasekhar. SEBI has also approved doing away with the current practice of FIIs and their sub-accounts requiring a prior direct registration of the regulator to operate in Indian markets. Instead, SEBI would adopt a risk-based KYC (Know Your Client) approach in dealing with the overseas investors. All these measures have taken to attract more foreign cash flow in order to tackle rising current account deficit and depreciating Indian Rupee.

3. Satyam Computer Services is now history as its merger with Tech Mahindra has been completed. It has also submitted certified copies of the Andhra Pradesh High Court-s order allowing the amalgamation to the Registrar of Companies which officially completed the merger process. Post-merger, it has become India-s 6th largest IT services company after TCS, Cognizant, Infosys, Wipro and HCL with $2.7 billion revenue for 2012-13 and 84,000 employees working in 46 countries.

4. Sanjiv Goenka was honoured with the -2013 Indian Business Leader of the Year- award at the 2013 Global India Business Meeting currently being held at Belfast UK. The Global India Business Meeting is the foremost gathering of Indian business leaders and their global counterparts. The object is to create a powerful platform for cooperation between India and the rest of the world. This award is in recognition of the success of his business enterprise and to acknowledge his position as an outstanding entrepreneur in India.