1. Shruti Sharma
MBA 2 ( C )
ET Weekly News24th Oct.- 30th Oct.
2. Retail investors lost $15 bn opportunity: Reliance
Capital
Retail investors could have gained over $15 billion by investing
just 5 percent of their savings in Indian capital markets in the
past 30 months -- an opportunity that was tapped better by foreign
funds, says a top fund manager.
Savings rate in India at over 25 percent is one of the highest in
the world and amounted to nearly $700 million in the last 30
months. Over 90 percent household savings is lying in bank deposits
and only 3 percent is invested in the capital market.
3. Contd
Group chairman Anil Ambani said earlier this month that Reliance
Capital will offer specialised financial services for
infrastructure projects with a target of Rs.50,000 crore ($11.1
billion) as asset base and 18-20 percent return.
Foreign institutional investors have invested nearly $25 billion in
the Indian equities market this year, leading the 15-percent-plus
rally in the country's benchmark index Sensex. These funds have
cumulatively pumped over $350 billion in the Indian market.
4. 200 top American CEOs coming with Obama
With trade high on his agenda, some 200 odd top US business chiefs,
including soft drink giant Pepsico's India-born CEO IndraNooyi ,
are expected to join US President Barack Obama on his India visit
next month.
Also expected are Honeywell CEO David M Cote, who co-chairs the
India-US CEO Forum with Tata group chairman Ratan Tata .
Terry McGraw, CEO of leading publishing house McGraw Hill, who took
over from Nooyi as the chairman of the US Indian Business
Council
5. Contd
Two more of 12 US forum members, Louis Chnevert, CEO of aerospace
major United Technologies Corp, and Ellen Kullman, chief executive
of chemicals giant DuPont , may also be joining.
But there is no word yet whether Citigroup's Indian-American CEO
VikramPandit is going.
6. Retail investors to be allowed Rs 2 lakh in IPO
Retail investors will get to double their bets on initial public
offerings as the market regulator is set to raise the limit to Rs 2
lakh, the first revision in five years, as it attempts to keep pace
with the eroding value of the rupee.
The proposal, likely to be approved by the board of the Securities
& Exchange Board of India on Monday, will cut the numerous
applications investors sometimes make in the name of relatives to
get more shares.
7. Contd
Some say the hike will enrich the wealthy more than the middle
class if it is done without an increase in the overall allocation
for the retail segment, which is capped at 35%.
Unlike most developed markets where investment bankers have the
discretion to allot shares to their favoured clients in an IPO, the
Indian regulator has mandated specified portions that go to funds,
wealthy individuals and retail investors.
But with the upswing in sentiment, retail investors have demanded
more of the IPO slice. The rate of inflation has more than doubled
to 12% in the past five years.
8. Contd
In case of public issues done on a book-building basis, the rules
now in place mandate that 35% of the offering should be allotted to
retail investors, 15% to non-institutional investors and the
remaining 50% to institutions.
9. Thank You
