Sebi gives consent to Tamil Nadu govt's proposal to buy stake in NLC - Indian Express

PTI : New Delhi, Sun Jul 07 2013, 16:43 hrs The government today said market regulator Sebi has given its consent to Tamil Nadu government's proposal to buy Centre's 5 per cent stake in Neyveli Lignite Corp (NLC) provided the acquisition is done by a qualified state entity. "SEBI is of the view that the proposal could get covered within the guidelines on IPP. However, the exact details needs to be worked-out that require discussions with the officials of the Government of Tamil Nadu, Ministry of Coal and Department of Disinvestment," an official statement said. The Department of Disinvestment (DoD) had sought Sebi's views on Tamil Nadu Government's proposal to buy 5 per cent of Centre's stake in NLC disinvestment. Sebi has written back to disinvestment department last week saying that the 5 per cent stake sale should be done to the state PSUs through the Institutional Placement Programme (IPP) route. Also, the acquirer has to be registered with SEBI as a Qualified Institutional Buyer (QIB). "In the offer document for IPP, the seller can propose the criteria on the basis of which allocation could be made. This can be used to give preference to any set of Qualified Institutional Buyers including state undertakings of Tamil Nadu," the statement added. Tamil Nadu Chief Minister J Jayalalithaa had written to Prime Minister Manmohan Singh last month saying that the state would buy the 5 per cent of Centre's equity that is being divested. The letter was sent to Sebi for their comments. "Ministry of Finance has requested the Government of Tamil Nadu to nominate senior official for further discussions with SEBI with regard to its proposal...," the statement added. Sebi, sources said, has now asked the Tamil Nadu government to send a concrete proposal and the list of state PSUs which could buy shares in NLC. The Centre currently holds 93.56 per cent stake in NLC. The stake sale is being proposed done to meet the minimum public holding norm. SEBI has set a deadline of August 8, 2013, for all listed central public sector units to have a minimum 10 per cent public shareholding. ... contd. ALSO READ Taxpayers to get unique number for complaints Job growth in US may spell bad news for Indian rupee Grounded Kingfisher's shareholder base zooms to record high Air India extends $500-mn bridge financing offer deadline Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFMwuX8axnmgSs4xA60dR7EX_jNZQ&url=http://www.indianexpress.com/news/sebi-gives-consent-to-tamil-nadu-govt-s-proposal-to-buy-stake-in-nlc/1138740/

Put the internet to work for you. via Personal Recipe 2910127