Gold weakens amid lacklustre demand; FOMC outcome in focus

Gold prices continued to drift lower for the third straight session at the domestic bullion market here due to reduced offtake by jewellery traders and retailers in the face of bearish overseas sentiment.

Elsewhere, silver also retreated after a brief overnight rebound on renewed speculative selling coupled with poor industrial support.

Standard gold (99.5 purity) eased by Rs 25 to conclude at Rs 26,955 per 10 grams as against Tuesday's level of Rs 26,980.

Pure gold (99.9 purity) also moved down by a similar margin to settle at Rs 27,105 per 10 grams from Rs 27,130.

Silver (.999 fineness) dropped by Rs 190 to finish at Rs 38,925 per kg compared to Rs 39,115 yesterday.

Globally, the yellow-metal traded almost flat during the European session amid heightened nervousness ahead of FOMC meet outcome later in the day as US Federal Reserve is widely expected to wrap-up its asset buying program and also rate hike uncertainty.

Spot was little changed at USD 1230.00 an ounce in early trade.Source:http://www.business-standard.com/

Sebi Notifies New Norms For Employee Stock Options

Market regulator Sebi or Securities and Exchange Board of India has notified new ESOP or employee stock options regulations, including for purchase of shares by employee welfare trusts from the secondary market with adequate safeguards.

Sebi has allowed companies to have employee stock option programmes where they can buy their own company shares subject to certain conditions.

Employee stock options are a practice followed world over and the market regulator has outlined certain safeguards to improve the governance and transparency of the schemes and also address concerns regarding potential market abuse.

Generally, in India, some companies count it (shares held by ESOP Trusts) in the promoter category and some companies count it in the public category.

Some of the safeguards as outlined by the regulator include requirement of shareholders' approval through special resolution for undertaking secondary market acquisitions; restrictions on sale of shares by trusts; at least six month holding period for shares acquired from secondary market.

Other safeguards include stricter disclosure and other regulatory obligations; a limit of 10 per cent of the assets held by general employee benefit schemes other than ESOS type of schemes and certain limits on secondary market acquisitions.

To ensure a smooth transition for complying with the new regulatory framework, the existing employee benefit schemes have been provided with a time period of one year from the date of notification.

Further a longer transition period of five years has been provided for re-classifying shareholding of existing employee benefit schemes separately from 'promoter' and 'public' category.

Bringing down the level of shares acquired from secondary market within the permissible limits and reducing own share component to 10 per cent of the total assets of general employee benefit schemes.

In a notification, Sebi said, "the trust shall be required to hold the shares acquired through secondary acquisition for a minimum period of six months."

"Secondary acquisition in a financial year by the trust shall not exceed two per cent of the paid up equity capital as at the end of the previous financial year," it added.

The regulator said option, SAR (stock appreciation right) or any other benefit granted to an employee under the regulations should not be transferable to any person.

Sebi said a company would have to constitute a compensation committee for administration and superintendence of the schemes. .

In case new issue of shares is made under any scheme, shares so issued would be required to be listed immediately in any stock exchange where the existing shares are listed.

The shares arising after the initial public offering (IPO) of an unlisted company, out of options or SAR granted under any scheme prior to its IPO to the employees would have be listed immediately upon exercise in all the recognised stock exchanges.

Sebi said the employee should not have right to receive any dividend or to vote or in any manner enjoy the benefits of a shareholder in respect of option granted to him, till shares are issued upon exercise of option.

"The amount payable by the employee, if any, at the time of grant of option, -may be forfeited by the company if the option is not exercised by the employee within the exercise period; or may be refunded to the employee if the options are not vested due to non-fulfilment of conditions relating to vesting of option as per the ESOS," it added.Source:http://profit.ndtv.com/

FDI Into India Dips to $1.27 Billion in August, Lowest in 8 Months

Foreign direct investment into India declined about 10 per cent in August this year to $1.27 billion, the lowest figure in the last eight months.

In August 2013, the country had received FDI worth $1.40 billion. In December 2013, FDI into India was $1.10 billion.

However, for the April-August period of this fiscal year (2014-15), foreign inflows showed a growth of 42 per cent to $12.01 billion as compared to $8.46 billion in the first five months of 2013-14, data from the Department of Industrial Policy and Promotion showed.

Any misrepresentation in prospectus is treated as fraud

Even as the action moves to the Securities Appellate Tribunal in the case involving the capital market regulator putting a ban on DLF Ltd and several of its directors, it may be worth taking a look at what charges of misrepresentation in initial public offer prospectus means under the Companies Act 2013.

Several company law experts and law firms that Business Standard spoke to did not want to be quoted citing conflict in business interest. To start with, there is no specific definition of misrepresentation in prospectus under the Companies Act, 2013. The way it is described is any statement which is untrue or misleading in form or context in which it is included or where any inclusion or omission of any matter is likely to mislead, said a corporate lawyer, quoting the Act.

Misrepresentation is construed as any statement which is made, which is false in any material particulars, knowing it to be false, or which omits any material fact, knowing it to be material, he added.

Institute On Management Of Agricultural Extension