Sebi Revokes curbs on Sanco Industries

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Markets regulator Sebi has lifted the curbs imposed on Sanco Industries, which was among the suspected shell companies, after finding no prima facie evidence of misrepresentation of financials by the company. "...I do not find any prima facie evidence nor suspicion of misrepresentation of financials/ business by the company (Sanco Industries), misuse of books of accounts/ funds of the company or violation of LODR (Listing Obligations and Disclosure Requirements) Regulations," Sebi Whole Time Member Madhabi Puri Buch said in an order dated February 15.

Buch also said that she is of the considered view that the actions envisaged in Sebi's letter dated August 7, 2017 against Sanco Industries are "liable to be revoked". Sanco Industries was among the firms against whom the Securities and Exchange Board of India (Sebi) initiated action on August 7 by ordering trading restrictions, following receipt of a list of 331 'suspected shell companies' from the government. The ordered trade restrictions - allowing trade only once a month and that too for only buy transactions with a 200 per cent security deposit - were revoked in some cases a few days later following appeals filed by them with the Securities Appellate Tribunal, but Sebi was asked to continue with its probe and pass its orders expeditiously.

Greenply Industr Q3 net Profit Jumps 50.25% at Rs 36.06 cr

The company reported standalone net profit of Rs 36.06 crore for the quarter ended December 31, 2017 as compared to Rs 24.00 crore in the same period last year, registering a year-on-year growth of 50.25 per cent. Net revenue of the company rose moderately by 11.29 per cent at Rs 399.29 crore in October-December quarter of this fiscal as against Rs 358.78 crore in the corresponding period last year. During October-December quarter, operating expenses increased by 8.18 per cent to Rs 336.64 crore from Rs 311.18 crore in year ago period.

Other Income dipped by 63.54 per cent at Rs 1.01 crore versus (Dec'16 Rs 2.77 crore). Operating Profit surged by 29.28 per cent to Rs 62.65 crore as against Rs 48.46 crore in the year ago period, while Operating Profit Margin (OPM) expanded year-on-year to 16.14 per cent in December quarter. Interest declined by 22.42 per cent y-o-y to Rs 2.56 crore, while Taxation increased by 23.73 per cent at Rs 14.60 crore (Dec'16 Rs 11.80 crore).

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PNB will Need to own Responsibility for `bonafide Transactions` - Fnance Ministry

India's Punjab National Bank (PNB), which is at the centre of a probe into a $1.77 billion loan fraud scam, will need to honour the "bonafide" transactions that have occurred through the bank's platform, a finance ministry official said on Monday.

In the case, diamond billionaire Nirav Modi and others are accused of colluding with bank employees to fraudulently obtain advances for payments to overseas business suppliers, in the country's biggest ever bank scam.

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Some banks have said that PNB was liable to make good on the credit extended, although PNB maintains other lenders share some of the blame as they should have more closely examined the requests for credit. Analysts have warned, however, that PNB may be left on the hook.

Rajiv Kumar, India's financial services secretary, said the bank "will have to own responsibility of bonafide transactions."

Morgan Stanley estimated on Thursday if PNB had to assume all the liability from the fraud it would need 80 billion rupees ($1.25 billion) in additional capital, which at the stock's current valuation would mean a 14 percent dilution.

Kumar also said the ministry had written to all banks to take effective steps to avoid a repeat of a PNB-like fraud. The Reserve Bank of India will also take all the required steps in the fraud case, Kumar said.

"Our responsibility is to ensure that fire alarms are installed and are in working condition. We can't stop every fire," Kumar told Reuters.

Axis Bank raises MCLR by 10 basis Points

Private lender Axis Bank on Monday announced that it has hiked its benchmark marginal cost of funds based lending rate (MCLR) by 10 basis points for its three-month to one-year loans by 10 basis points, effective from February 17.

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With one basis point being equivalent to 0.01 percentage point, the revised one year MCLR now stands at 8.40 per cent, Axis Bank said in a stock exchange filing.

Consequently, while the bank's three-month MCLR now stands at 8.15 per cent, the six-month rate is at 8.30 per cent.

The bank had last hiked the MCLR by 5 basis points in January.

In addition to the Base Rate system followed by commercial banks, the Reserve Bank of India (RBI) introduced the MCLR from April 1, 2016, whereby rates are fixed for a one-year period and revised only at the end of each year.

The central bank introduced the MCLR as a system working in tandem with its policy rates, which commercial banks have been slow in accepting, preferring to continue with the Base Rate regime.

In yet another measure to speed up retail transmission by banks of the central bank's cuts in lending rate, the RBI said earlier this month that it will link the Base Rate with the MCLR from the next fiscal.

Since the MCLR is more sensitive to policy rate changes, the RBI has decided to harmonise the methodology of determining benchmark rates by linking the Base Rate to the MCLR with effect from April 1, 2018, the central bank said in a release here following announcement of the fiscal's final bi-monthly monetary policy review at which it kept its key lending rate unchanged at 6 per cent.

Stocks in the news: HDFC, Kaya, Fortis, Ambuja Cements, Amtek Auto, Religare

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Here are stocks that are in news today:

IndiGrid Trust

-Investment in power transmission asset of Techno Electric and Engineering Company Limited

-Completed acquisitions of 3 units from Sterlite Power Grid Ventures Limited

Tata Power

-Gets shareholders’ nod for scheme of agreement with Tata Power Renewable Energy

-Gets shareholders’ nod for scheme of agreement with Supa Windfarm, Nivade Windfarm

-Gets shareholders’ nod for scheme of agreement with Tata Power Green Energy

Fortis Healthcare clarifies

-On reports of SEBI & SFIO investigations against company & Religare Enterprises

-Got no communication, written or otherwise, from government on probe

-NSE Data: RK Damani’s Derive Investments buys 26.5 lakh shares of 

Fortis Health at Rs 144.5 per shareFortis Healthcare

-Promoters holding falls to 8.85 percent from 34.33 percent earlier

-25.58 percent promoter shares have been revoked

Other stocks and sectors that are in news today:

M&M to invest Rs 500 crore for electric vehicle and electric vehicle components in Chakan as a part of expansion efforts

Equity intelligence buys 13,350 shares (0.1 percent of share capital) of Kaya

Sun Pharma's wholly owned subsidiary buys additional shares in Ranbaxy Malaysia Sdn Bhd, post completion stake will increase to 90.74 percent

63 Moons, NSEL merger case another hearing on April 18

Religare Enterprises says raising of funds through issue of warrants for preferential issue by issuing 17.5 crore warrants at Rs 52.2 per share

Godawari Power and Ispat amalgamates with Jagdamba Power and Alloys; transferor company has 25MW captive power plant

Today's picks: From Adani Ports to IOC, hot stocks to watch on Tuesday

Nifty Current: 10,378 (fut: 10,375), Target: NA Stop-long positions at 10,455. Stop-short positions at 10,295. Big moves could go till 10,250, 10,500. 

A long 10,300p (37), short 10,200p(18) could gain 15-20 if the index tests10,300.Bank Nifty Current: 25058 (fut: 25072) Target: NAStop-long positions at 24,970. Stop-short positions at 25,200.

Big moves could go till 25,400, 24,725. Trend remains down and short-covering will hit resistance at 25,250.

Adani Ports Current price: Rs 394 Target price: Rs 387Keep a stop at Rs 400 and go short. Add to the position between Rs 389 and Rs 390. Book profits at Rs 387.Tata Steel Current price: Rs 649 Target price: Rs 660Keep a stop at Rs 643 and go long. 

Add to the position between Rs 655 and Rs 658. Book profits at Rs 660.Indian Oil Corp Current price: Rs 369 Target price: Rs 364 Keep a stop at Rs 373 and go short. Add to the position between Rs 365 and Rs 366. Book profits at Rs 364.

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PNB Fraud case: Union Bank has $300 mn Outstanding Exposure

State-run Union Bank of India on Thursday said that it has an outstanding exposure of about $300 million in the $1.8 billion fraud detected by Punjab National Bank (PNB) and the former was also confident of receiving the payment.

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PNB, the second largest public sector bank in India, had detected the $1.8 billion fraud in one of its branches in Mumbai and Union Bank of India was among other banks that were said to have offered credit-based on letters of undertakings (LoUs) issued by PNB.

"The outstanding exposure related to the incident is approximately $300 million and the bank is fully secured by LoU/LC/other documents and fully confident to receive the payment," it said in a regulatory filing late on Thursday.

An LoU is in effect a guarantee issued by one bank to branches of other banks, based on which foreign branches offer credit to buyers.

The lender said that through its foreign branches, it has been taking exposure with PNB as counter party under various LoU issued through authenticated SWIFT.

The bank has also purchased some Buyers' Credit Assets from Axis Bank through Risk Participation as a part of normal international business practice.

Nestle India Fourth-quarter profit up 60 Percent

Nestle India Ltd, maker of Maggi instant noodles and Kit-Kat chocolates, on Wednesday posted a 59.6 percent rise in fourth-quarter net profit, boosted by higher domestic sales.

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Profit rose to 3.12 billion rupees ($48.68 million) in the quarter ended Dec. 31, from 1.95 billion rupees a year earlier, the Indian arm of Swiss food group Nestle SA said.

Domestic sales rose 10.8 percent to 24.01 billion rupees in the quarter and grew about 11.8 percent on a comparable basis, the company said.

Yes Bank lists $600 mn bond on India INX

Lender Yes Bank on Wednesday announced the listing of its debut $600 million bond issue on the India International Exchange (India INX).

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According to the company, the issue comes under its maiden $1 billion medium term note (MTN) programme on the global securities market.

"The MTN bonds issuance received an overwhelming response from international investors and saw a final order book, at a spread of 130 basis points, being oversubscribed," the bank said in a regulatory filing to the Bombay Stock Exchange.

In terms of investor type, "the split was 46 per cent to asset managers, 38 per cent to banks, 11 per cent to insurance companies and 5 per cent to private banks".

The bank said that it will use the proceeds to fund the banks's IFSC (International Financial Services Centre) Baking Unit (IBU) in Gift City.

HDFC Life`s Annuity Plan for early retirement Planners

HDFC Standard Life Insurance Company (HDFC Life) has come up with a single-premium annuity products for those who want to plan their retirement in advance, reported PTI. Under 'HDFC Life Pension Guaranteed Plan' one has the choice to decide on the annuity rate at the date of purchase of the policy, which can go up to as high as 13 per cent, said Srinivasan Parthasarathy, Senior Executive Vice President, Chief Actuary and Appointed Actuary, HDFC Life.

"Customers need not wait for their retirement to decide on the annuity rate. The deferred annuity option gives the early planners the choice of a guaranteed annuity rate at the time of the purchase," he said. "Those planning in advance for their retirement are rewarded by way of higher annuity rates, which could beas high as 13 per cent depending upon the deferment period," Parthasarthy added. The annuity product comes in two variants of single life basis for self and a joint life basis for self and spouse.

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