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The Mint Report for 18 August 2011

The Mint Report for 18 August 2011
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First Published: Thu, Aug 18 2011. 10 41 PM IST
Updated: Thu, Aug 18 2011. 10 41 PM IST
A possible rule change could give Indian promoters more flexibility when they decide to sell shares. We’ve learnt markets regulator Sebi could provide two new options for companies to reduce their stakes to the minimum allowed 25%. Under the first route, they’ll be allowed to make Qualified Institutional Placements or QIPs. The other option is to issue investors preferential shares. The proposal has just been conceived and still needs to be examined by Sebi’s board. But if it does go through, it’ll make stake sales cheaper and faster for promoters.
India’s food inflation is finally showing some signs of easing. But government numbers show this is largely because of a fall in the prices of pulses, while most other food items remain just as expensive. The food price index for the week to 6 August stood at 9.03%. The previous week it was at 9.9%.
And finally, Indian shares returned to losses on Thursday, after making some gains in the previous session. The easing in food inflation actually worsened sentiment because investors are worried the Reserve Bank will now be pushed towards another rate hike next month. The Sensex ended the day 371 points lower at 16,470. And the Nifty closed with a decline of 112 to 4,944.
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First Published: Thu, Aug 18 2011. 10 41 PM IST
More Topics: The Mint Report | Sebi | QIP | India | Inflation |