The CMD of Continental Controls ltd, restrained from buying, selling

Sub : Order Under Section 11(4) read with Section 11 and Section 11B of the SEBI Act, 1992 against Continental Controls Ltd. and its Chairman and Managing Director Shri Navin Thakkar in the matter of Irregularities in the Notice for Buyback of Shares of Continental Controls Ltd and trading in the shares thereof SEBI vide its Order dated 14th February, 2008 has restrained Continental Controls Ltd. (PAN AAACC2007J) from accessing the securities market for a period of two years. The CMD of Continental Controls Ltd., Shri Navin Thakkar (PAN AABPT8558R) is hereby restrained from buying, selling or otherwise dealing in securities for a period of two years. The said order is available on the SEBI website www.sebi.gov.in

Centurion Bank of Punjab (CBoP) v/s R Power IPO

THE lure to make a quick buck was not restricted to HNIs and retail investors alone while subscribing to the Reliance Power IPO. Banks were not far behind. According to market sources, Centurion Bank of Punjab (CBoP) was one of them. The bank is reported to have been allotted 26 lakh Reliance Power shares. The bank sold its entire quantity on Tuesday and is believed to have incurred a loss of approximately Rs 20-26 crore on that. The significance of the loss can be gauged from the fact that the bank had posted a net profit of Rs 48 crore for the quarter ended December 2007. The stock rose 4% to close at Rs 48 on Wednesday. When contacted, Centurion Bank of Punjab country treasurer Tarini Vaidya said, “We have invested in IPOs through this financial year. We have had a profitable year.”

खबर है कि............

* A leading investment broker is bullish on International Travel House and has recommended it to his HNI clients and also included it in his portfolio scheme. * Ratnamani Metals & Tubes may touch Rs.1400 plus says an analyst’s report from a leading broking house. * Whether realty shares move up or not Mahindra Life Space shall double from hereon going by the response its every project fetches. * Bank of India may issue shares from government through the QIP route at Rs.440 plus. Technical analysts believe it can cross Rs.580 mark in coming months. * Abhishek Industries, Paramount Communications, Bhagyanagar Industries, Nahar Industries., FSL, Finolex Industries and Arvind Mills are the best mid-cap bets favoured by the mid-cap mutual fund schemes too. * BHEL may be sulking for now but very soon it will renew its upmove with vengeance and cross the earlier top of Rs.2900 plus. How can anyone go wrong on its robust fundamentals and more than robust order book? * At a current Enterprise Value of Rs.60-65 cr., Rama Papers is available for a song. Promoters themselves have bought about 20 lakh equity shares at Rs.35 per share through preferential allotment. * Bombay Oxygen has sold only the development rights of its Mulund property to HDIL for a consideration of Rs.200 cr. Ironically, the company is available at an enterprise value of Rs.150 cr. although the land itself is worth Rs.300-350 cr. Just grab this scrip and forget it for a year. * As per reliable sources, Panoramic Universal is getting lot of strategic offers at Rs.150 per share but the management is looking to raise capital above Rs.200 per share. Hence retail investors shouldn’t miss this opportunity to buy at Rs.110 from the open market. * Prithvi Information Solutions has bagged an order of Rs.309 cr. from BSNL for supply of transmission equipment that will help us increase its network bandwidth. Accumulate it at declines. * Promoters of Ind Swift Labs are again making preferential allotment of 25 lakh warrants to themselves and others at Rs.70 per share. A risk free bet at current levels. * Small caps and mid caps have been battered and investor morale shattered. However, in these difficult times good dividend yield stocks are a defensive play. Zenith Fibres, South India Paper Mills are such stocks with such value. * California Software has maintained its strength despite the market volatility. With good earnings potential and acquisitions, the stock can be added in small quantities for medium-term appreciation.

Sudden breakdown of सर्विसेस

Due to serious heart attack, I was under ICU Since last week. Services were interrupted & may remain one month in future. We regret for this.

SUBPRIME EXISTS in INDIAN MARKET

RBI believes and has hard evidence that a problem similar to subprime exists in the Indian market and this time due to Indian companies exposing themselves to complex derivative products denominated in foreign exchange, sources said. NDTV has learnt that this might be the reason why RBI warned corporates on exposure to foreign exchange derivatives.

Sources have confirmed to NDTV that two Indian private banks and three foreign banks are sitting on massive open positions in foreign exchange derivative products and all these banks have been given a warning by RBI to unwind the positions.

NDTV is not revealing the names of these banks since it is yet to get their comments on the issue despite requesting them to clarify their position.

If the total amount which is stuck is calculated based on positions of other banks in the system, it could potentially pose a risk of over Rs 10,000 crores whereas some say it could be over $3 billion.

Call it India's own subprime problem but the systemic crisis which is now a huge talking point amongst the corporate and treasury circles is yet to unfold in the open.

NDTV has met and spoken to more than five treasury heads of leading banks who confirmed that the total amount could exceed over $3 billion and if this amount is not absorbed by the banks, it could mean a write off on their balance sheets.

Looking at the banks strength it may not wipe them out yet but the fear of write offs is now knocking on the door of these Indian banks. The question is why and how did this begin and is financial innovation and greed for profits once again the reason?

New private sector banks who have been aggressively pushing forex derivative products to corporate clients approach CFOs of companies to increase their exposure to book profits through trading.

But since the RBI only permits these banks to run books for certain forex derivative products they try and offer more complex products through other sources. To meet corporate demands, these banks have been buying complex structured products from foreign banks.

Now that the dollar has turned so sharply not just against the rupee but also against other currencies, these structured products are resulting in losses so foreign banks are looking to square off positions.

But with corporate not willing to square off at their end, these domestic banks face the possibility of having to take a hit to their balance sheets and if one were to quote the policy, it clearly said: " Banks are also urged to carefully monitor corporate activity in terms of treasury/trading activity and sources of other income to the extent that embedded credit/market risks pose potential impairment to the quality of banks' assets."

Experts say that the problem is arising from the corporate sector where many large corporates are keeping derivative positions open and are avoiding booking forex losses in their quarterly reports.

But in the past they were happy dealing in complex forex derivatives since it gave them handsome treasury profits. Now company boards are not willing to take a hit on the bottomline and are hence refusing to square off the positions which in turn is putting banks at risk. (source: Nextresearch)