NSE WEEKLY NEWS UPDATE

✍ Mega bank acquisition: Kotak buys ING in all-share deal
In the biggest M&A in the banking sector after the global financial crisis, Kotak Mahindra Bank has agreed to acquire ING Vysya Bank in an all-share deal. The move consolidates Kotak's position as India's fourth largest private bank. At current market prices, the value of the merged entity will be Rs 1,04,734 crore giving Kotak Bank a trillion-rupee valuation within 12 years of incorporation. The merger is subject to regulatory approvals from RBI and other regulators. This will also be the first bank merger to be referred to the Competition Commission of India as per new norms. Among other things, RBI will also have to consider allowing ING Vysya to hold 6.5% in the merged entity as against the less than 5% allowed by RBI for non-promoters.
✍ RBI revises minimum balance norms
The Reserve Bank of India (RBI) has placed curbs on the charges imposed by banks for not maintaining minimum balance requirements. The new norms require banks to notify the customer by SMS, email or letter about the intention to apply penal charges if minimum balance is not restored within a month. Banks have also been barred from the practice of having negative balances in accounts due to imposition of penal charges.
Under the new norms, the board of directors of a bank has to approve the penal charges proposed to be levied for non-maintenance of minimum balance. "The penal charges should be directly proportionate to the extent of shortfall observed. In other words, the charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account. A suitable slab structure for recovery of charges may be finalized," RBI said in a circular to all banks.Although the board of directors has been given the freedom to fix charges, RBI has said that penal charges must be reasonable and not out of line with the average cost of providing the services. The new charges come into effect from April 2015.

✍ Vikram Pandit-led fund invests Rs 540cr in JM Financial’s realty company
Well-known banker Vikram Pandit-led global fund has invested Rs 540 crore in JM Financial's real estate lending subsidiary FICS. Indian-origin Pandit, who was earlier chief of global banking major Citigroup, has also joined the board of FICS as non-executive chairman.
FICS Consultancy Services is the real estate lending arm of JM Financial, which has also provided additional capital of Rs 360 crore, taking the total capital commitment for FICS to Rs 900 crore. While Pandit has joined the FICS board as its non-executive chairman, Vishal Kampani and Hari Aiyar have become non-executive vice-chairmen in the company. V P Shetty would continue to be a director on the board. agencies

✍ Jignesh Shah resigns as FTIL’s MD
Jignesh Shah, the founder and promoter of Financial Technologies (FTIL), on Thursday quit as the managing director & chief executive officer (MD & CEO) of the company.
Shah will be replaced by Prashant Desai, who was the president (investor relations and M&A) of the company. Shah's resignation came in the wake of the Rs 5,600-crore NSEL scam. The government is now considering a proposal to merge NSEL, the crisis hit spot exchange, with FTIL against which the company has moved the Bombay high court.

✍ IndiaBulls buys India Land IT Park for Rs 600 cr
Reflecting the appetite for quality IT space in the city, Indiabulls has acquired India Land Tech Park in Ambattur for Rs 600 crore. The park will be renamed as One Indiabulls Park. The 2.4 million sq ft IT park with a leasable area of 2 million sq ft and 10 acres of land has gone at a conservative Rs 3,000 per sq ft. Taking into account the present construction cost of IT parks in the city, the buyer has got the land virtually free, said a realty consultan


✍ IFC issues a 10-year 10 billion rupee bond to increase foreign investment in India
In what is the largest ever rupee bond to be issued on the London Stock Exchange (LSE) and also the longest issue ever for an offshore rupee bond with a maturity of 10 years, the International Finance Corporation (IFC) has issued a 10-year, 10 billion Indian rupee bond (equivalent to $163 million) to increase foreign investment in India, mobilizing international capital markets to support infrastructure development in the country.The "Masala bonds" mark the first rupee bonds listed on the London Stock Exchange.They are the longest-dated bonds in the offshore rupee markets, building on earlier offshore rupee issuances by IFC at three-, five-, and seven-year maturities.

✍ JSW Energy to buy 2 hydro projects of JP Power for Rs 9,700 crore
JSW Energy will acquire two hydro-electric projects of Jaiprakash Power Ventures in Himachal Pradesh for about Rs 9,700 crore. "JSW Energy has agreed to acquire from Jaiprakash Power Ventures and other shareholders, 100 per cent stake in Himachal Baspa Power company for a base enterprise value of Rs 9,700 crore," JSW Energy said in a statement. The board of directors of Jaiprakash Power has approved the transfer of 300 MW of Baspa II hydro-electric project and 1,091 MW Karcham Wangtoo hydro project into a separate company

✍ SBI board approves 1:10 stock split
With its shares turning pricey over the last one year, the State Bank of India’s board on Wednesday approved splitting the bank’s equity shares of face value 10 each into 10 equity shares of face value ₹1 each.The main reason a company announces stock split is to attract more investors, especially retail ones. Institutional investors generally see through the game plan and is more concerned about the value at which the stock is available rather than the price.

✍ RCom net drops 77% in Q2
Anil Ambani-led Reliance Communications (RCom) on Friday reported a 77 per cent drop in net profit in the quarter ended September to Rs 153 crore, compared with Rs 675 crore reported in the year-ago quarter.RCom’s performance suffered as it got fewer new customers during the quarter under review than its competitors. While Idea Cellular added 1.7 million fresh subscribers, RCom got just half a million. All the competitors – Bharti Airtel, Vodafone India and Idea Cellular - reported better than expected profits during the July-September quarter.

✍ Tata Motors Q2 net down 7% at Rs 3,291 cr
Slower-than-expected growth in sales and tax adjustments hit the consolidated net profit of Tata Motors, India’s biggest automobile manufacturer in the quarter ended September 30 as domestic operations remained a drag. The Mumbai-based company reported a drop of seven per cent in net profit at Rs 3,291 crore for the quarter from Rs 3,542 crore posted in the same period of 2013-14.The company made a substantially higher tax provision of Rs 2,364 crore, more than double the expense it accounted for in the corresponding period last year. The Bloomberg profit consensus for the quarter stood at Rs 4,626 crore.

✍ ICICI Bank fixes record date for stock split; stock hits new high
Shares of ICICI Bank has higher by 3% to Rs 1,732 on National Stock Exchange (NSE) after the bank has fixed December 5 as the record date for its proposed stock split.
“The bank has fixed record date as December 05, 2014 for the purpose of ascertaining the eligible shareholders who would be entitled to receive 5 equity shares of nominal value of Rs 2 each in lieu of 1 equity share of nominal value of Rs 10 each of the bank
✍ Motilal Oswal realty arm raises Rs 440 crore
Motilal Oswal Real Estate, an arm of Motilal Oswal Private Equity, has raised Rs 440 crore through its second property fund after exercising greenshoe option, a top company executive said. India Realty Excellence Fund (IREF) II will primarily invest in mid-income residential projects in Mumbai Metropolitan Region, National Capital Region, Bengaluru and Pune.

✍ Essar Oil extends fall as Sebi revamps delisting norms
Essar Oil has dipped 6% to Rs 102, extending its previous day’s 4% fall on the National Stock Exchange (NSE), on back of heavy volumes. The stock slipped below its floor price of Rs 108.18 fixed for the proposed delisting offer.The stock opened at Rs 108 and hit a low of Rs 98 so far on NSE. The trading volumes of the counter jumped over four-fold with a combined 1.75 million shares changed hands till 1453 hours on NSE and BSE.
The Securities and Exchange Board of India (Sebi) on Wednesday announced changes to delisting regulations.According to a press statement from the market regulator, a delisting shall be considered successful only when the shareholding of the promoter, together with shares tendered by public shareholders, reaches 90% of the total share capital. At least 25% of the public shareholders need to be part of a reverse book-building process.
Essar Oil plans to buy back 137 million shares, or 27.5% stake, held by the public.

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