Mumbai: The market regulator, Securities and Exchange Board of India (Sebi), on Friday cleared long-term options on Sensex and Nifty of up to three years. Currently the options contracts are valid for three months. The Sebi derivatives market review committee had recommended introduction of products in derivatives space with options contracts on indices and stocks with up to five-year tenure. The introduction of long-term options will allow investors to hedge funds for a longer period.
Supreme Court says RPL IPO to continue
New Delhi: A three-judge bench of the Supreme Court ordered that Reliance Power Ltd (RPL) can proceed with its IPO despite any order that maybe passed by any court or tribunal. The offering is the largest IPO in India and is expected to begin on 15 January. RPL approached the court on Friday and brought to its notice a case filed against it’s IPO in the city civil court of Mumbai. Senior counsel Harish Salve argued that the lead managers of the IPO would turn apprehensive due to court proceedings and “back out” and stated that a stay order would be necessary to allow the IPO to proceed. Malathi Nayak
Future Capital IPO oversubscribed
Mumbai: The public issue of Future Capital Holdings, the financial subsidiary of Future Group, the parent of India’s largest listed retailer Pantaloon Retail India Ltd, was subscribed 3.69 times on the day it opened. While a detailed break up was not available, the institutional investor portion was likely several times oversubscribed. The issue is priced between Rs700 and Rs765. Saumya Roy