The Confederation of Indian Industry (CII) had organized an Interactive Session with Mr U K Sinha, Chairman, Securities Exchange Board of India (SEBI) on 29 December 2012, at the Backwater Ripples resort, Kumarakom. Mr Sinha while addressing the members stated that by June 2013 a total of 200 listed companies would comply with a new rule set by SEBI, which stipulates 25% public share holding. This in turn would infuse Rs 30,000 Crores worth of fresh shares into the Indian Stock Markets.
Mr Sinha also mentioned that the money coming to the capital market has declined by 30 – 50 % across the world over the past few years. In India alone, a total of Rs 60,000 crore which was expected to come through the capital market had been shelved. Mr Sinha added that the 2008 Global recession resulted in the slowdown of economic activities in IPO markets across the world and this impacted India and decreased the country’s growth rate. But on a positive note, he pointed that the economic activities had improved post August 2012 and the potential growth rate of the Indian economy remained at 8% despite adversities.
Mr Sinha also mentioned that SEBI is very keen to conduct handholding sessions for Potential companies in Kerala who are looking at IPO for raising capital. This would aid the companies in ensuring that they comply with all the stipulated rules and regulations. The handholding sessions would also include one – one interactions of the representatives of the company with Private Equity companies, Venture Capital companies, Angel funding companies etc.
Mr Sinha happily shared with the Industry community of Kerala that he saw a positive energy amongst the various companies from the state which are poised to become global brands in the coming years.
The SEBI Chairman was also positive about the overall economic climate of Kerala after listening to all the CEO’s who were present for the session.
Mr Sinha also took this opportunity to announce the opening of a new SEBI Branch in Cochin by April ’13. Investors and companies in Kerala could utilize the branch’s services for the speedy settlement of their respective queries or complaints.
Mr C J George, Vice Chairman, CII Kerala State Council and Managing Director, Geojit BNP Paribas Financial Services Ltd said, ‘Another major announcement of the Chairman was that SEBI would take initiatives in arranging meetings between startup companies in Kerala and Venture Capital companies, Private equity companies, Insurance companies and Mutual fund companies to ensure that startup ventures get guidance and assistance from them.’ Mr Sinha also added that strict action would be taken against Investment Bankers if due diligence was not done before issuing an IPO.
The Meeting was attended by many Industry Stalwarts such as Mr Mithun K Chittilappilly, Managing Director, V-Guard; Mr Sanjay Vijayakumar, Chief Executive Officer, Mobme Wireless, Mr M S A Kumar, Managing Director, AVT Natural Products; Mr Krishnakumar, Rubfila International, Mr Srikant Suryanarayan, Managing Director, Tradelinks; Mr Manomohanan, Chief Executive Officer, Muthoot Caps Ltd; Mr George Lamannil, Executive Director, Muthoot Pappachan Group amongst others. In addition to this, top executives from Federal Bank, Cochin Port Trust and Geojit BNP Paribas Financial Services also participated in this session.