Corporate / Results Corner.
RBI increases FII limit in South Indian Bank (SIB). Positive in short term for SIB
The Reserve Bank of India (RBI) has allowed foreign investors to buy further shares in South Indian Bank as the holding by FI Is has gone below the limit. FIIs, held 41.69 % shares in South Indian Bank as of quarter ended March 31, 2014. As per the RBI statement the aggregate shareholding by Foreign Institutional Investors (FIIs)/Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs)/Foreign Direct Investment (FDI)/American Depository Receipt (ADR)/Global Depository Receipts (GDRs) under the Portfolio Investment Scheme (PIS) in The South Indian Bank Limited have gone below the prescribed threshold caution limit. Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect. The stock is likely to react positively in the short term.
Economic and Other News
MSS ceiling fixed at Rs 500bn for current fiscal
The Reserve Bank has fixed the quantum of intervention through Market Stabilization Scheme (MSS) at Rs 500bn to manage liquidity. Under the MSS, RBI, on the behalf of government, absorbs liquidity by issuing Treasury Bills and/ or dated securities. “This ceiling will be reviewed when the outstanding balance reaches the threshold limit of Rs 350bn,” RBI said.
India not to dilute IPR law; dialogue with pharma cos to continue
India will not dilute its intellectual property laws under pressure from pharmaceutical multinationals but will seek to continue dialogue with these companies to address their concerns, top officials said after a meeting with Cabinet secretary Ajit Seth. Seth had called secretaries of five departments to discuss ways to deal with the intellectual property rights (IPR) issues being raised by some US companies, particularly those in the pharma sector.
U.S. Leading Economic Index Rises 0.8% in March, slightly more than expected
Leading U.S. economic indicators showed continued improvement in the month of March, with the leading economic index rising by slightly more than expected. The leading economic index rose by 0.8% in March after climbing by 0.5% in February. The advance exceeded economist estimates for a 0.7% increase. The continued increase by the leading economic index reflects positive contributions from six of the ten indicators that make up the index.