Listing norms for NCDS in mergers issued by Sebi

Posted on

SEBI, NCD, Money Maker Research, Investment AdvisorySecurities and Exchange board of India (Sebi) has issued a new framework for listing of NCDs (non-convertible debentures) and NCRPs (Non-convertible redeemable preference shares) following mergers and acquisitions (M&As). A listed company may seek listing of NCDs/ NCRPs issued pursuant to a scheme of arrangement only in case where the listed company is a part of such scheme and such securities are issued to the holders of specified securities of such listed entity, as per Sebi circular.

Only the NCDs/NCRPs issued to listed specified security holders will be eligible for seeking listing. However, if the same series of securities are also allotted to other investors, such securities would not be eligible for listing. A scheme of arrangement is a court approved agreement between a company and its shareholders/creditors. The minimum term of such securities would be one year.

Sebi has earlier streamlined regulatory framework for scheme of arrangement like merger and acquisitions by listed companies to check any possible evading of norms and prevent firms from seeking direct approval of National Company Law Tribunal for such deals.

Aviation stocks jumps after sharp fall in crude oil prices

Posted on

Stock News TodayThe aviation sector stocks have embarked upon an upward rally in Friday’s trading session. The aviation stocks registered sudden increase in volumes in the mid noon hours.

Jet Airways went up 3.87% to Rs 486.30, SpiceJet jumped 4.58% to Rs 108.50) and InterGlobe Aviation gained 2.26% to Rs 1,097.95.

The aviation turbine fuel has been in falling trend for past one month, which is based on the oil prices and foreign exchange rates of the previous month.

However, lower crude oil prices favorably affect aviation companies as jet fuel price, which constitute about 50 percent of airlines’ operating costs is likely to get reduced since it is directly connected to international crude oil prices.

In the global commodities markets, the price of crude oil witnessed a sharp drop as the OPEC extended the production cut, but was silent on a long term plan.