Reliance Power seeks Sebi nod for early allotment to QIBs

But Move Unlikely To Be Approved As Retail Investors Are Not Covered

Jan 24, 2008
Ashish Rukhaiyar
MUMBAI

AT a time when liquidity is of primary importance Reliance Power has proposed to make available $10 billion to institutional investors for the secondary market. According to a source, the company has written a letter to the Securities and Exchange Board of India (Sebi) on Wednesday to allow them to make an early allotment of equity shares to qualified institutional buyers (QIBs). If allowed, the move will see refunds of over Rs 40,000 crore making its way to other investment avenues.

However, Sebi sources said it will not be approved since it is anti-retail investor. “Why should only QIBs be given the chance to take advantage of the recovery in the market. Reliance may be doing it just to ensure that the QIBs don’t back out,” said a source with the stock market regulator.

The QIB portion of the recently-concluded public issue was subscribed nearly 83 times with a little less than 500 entities submitting their bids. The total value of bids was pegged at Rs 5,08,486 crore. As institutional investors are required to pay 10% upfront, Rs 50,848 crore has already been collected as against the QIB portion of Rs 6,156 crore.

“The excess application money (to be refunded) is around Rs 40,000 crore or $10 billion,” said a source. “The recent fall in the secondary market has provided investors with an excellent buying opportunity and if the whole refund process is completed faster, the secondary market will also benefit. That’s the reason for the letter,” he added. Meanwhile, company officials declined to comment on the issue.

According to market buzz, the move will also enable foreign institutional investors entering through the participatory notes (PNs) route to take further exposure as the IPO had exhausted their existing limits.

Incidentally, Sebi had recently amended the guidelines related to the investment through PN route. Each FII can issue PNs amounting to only 40% of its total assets under custody (AUC). It is believed that around $30-40 billion worth of bids has come through PNs.

Importantly, the letter only aims at an early allotment to the institutional bidders. It is believed that retail investors and HNIs will get the allotment after the institutional ones. According to Sebi guidelines, allotment of equity shares has to be done within a maximum of 15 days after the issue closes for subscription.

R-Power faces stop payment crisis

Reliance lights up investors, analysts see tripping point

R-Power IPO Sop

R-Power faces stop payment crisis

Banks face stop-payment calls; IPOs Lose Sheen Due To Fall In Grey Market Premium, Value Picks In Market

Jan 23, 2008
Ashish Rukhaiyar, Himanshu Darji
& RR Goswami
MUMBAI/AHMEDABAD

The public issue of Reliance Power closed for subscription last week. However, the buzz around it is far from over. According to bankers who are associated with the deal, there have been quite a few withdrawals in the non-institutional segment, which is also popularly known as the HNI (for high net worth individual) category.

Market players said the withdrawals have been on account of two factors: the huge oversubscription and a steady decline in the grey market premium. The massive fall in the secondary market has also played a major role, they said.

“There are enough reasons to believe that many HNIs have issued stop-payment instructions,” said a banker on conditions of anonymity. “It happened in the case of Cairn and now it is happening in R-Power. The huge oversubscription (in the HNI category) will lead to small allotments, which will make life difficult for people who have leverage to invest in the issue,” he added.

The number of people issuing such instructions could not be ascertained. Nor could the value be obtained. An official who works with one of banks involved in collection of escrow amounts said there have been stop-payment instructions for bids worth around Rs 4 crore. An RPower official declined to comment on an email questionnaire on this issue.

HNIs typically borrow money at 17-20% to invest in public issues. So, the number of shares allotted and the listing gains play an important role. If both go down, it becomes a loss-making proposition, as the cost of borrowing money or leveraging becomes more than the listing gains.

R-Power’s public issue closed on Friday last week and the HNI category was subscribed more than 190 times. This means an investor bidding for 10 lakh shares would get a little over 5,200 shares. The low allotment is a big blow to HNIs who have borrowed money for one lakh shares.

Such investors could still manage high gains if the stock lists at a massive premium to the issue price, which in this case is Rs 450. If the grey market premium is anything to go by, then the stock is likely to list at a premium of around Rs 200. This is much below the earlier projections of more than Rs 500.

A section of market players are of the view that the recent massive fall could also have triggered a lot of withdrawals, as investors would have preferred to buy stocks at lower levels. In the last one week, the Sensex has lost more than 3,500 points, or 17.4%. Most large-cap stocks have lost anything between 10% and 20%, which provides an excellent buying opportunity with much less risks involved.

Investors looking for a share of RPower can now may look at Reliance Energy, say dealers. “The stock has fallen by nearly 30% in the last one week and provides excellent buying opportunity,” said a dealer.

Some banks in Ahmedabad are believed to have received calls asking for stop-payment on Reliance Power. Tentative estimates peg the amount of stoppayment cheques at over Rs 100 crore. The final figure would be available by January 23. A few co-operative and public sector banks in Gujarat said that that their branches received instructions for stop-payment for cheques issued in favour of Reliance Power.

Reliance lights up investors, analysts see tripping point

R-Power IPO Sop

Reliance lights up investors, analysts see tripping point

Broking houses advise caution

Jan 16, 2008

Ashish Rukhaiyar
MUMBAI

NEVER mix business with pleasure, goes the saying. And that is just what the broking fraternity did. Notwithstanding the bonhomie evident at the company’s brokers’ meet, brokerages appear to have dug their heels in, crying “caution” on the ongoing Reliance Power issue. A far cry from when ‘mere papa ka sapna,’ and every mention of the word ‘Reliance’ was met with applause.

The reports on Rel Power come with a caveat, with one even recommending an “avoid”. The bottomline being “subscribe for listing gains”. Most brokerages have identified absence of operating history, implementation delays, long gestation period, fuel availability and expensive valuation as the key concerns.

So, even as Emkay has advised its clients to “subscribe for listing gains”, Religare said “investors can subscribe to the IPO purely on the promoter group’s track record and execution capabilities”. It is reasonable to assume gains on listing, it goes on to add.

Indian Capital Markets has also advised its clients to subscribe to the issue only to cash in on listing gains. But that’s not all. Equitymaster has come out with an ‘avoid’ citing execution risks and expensive valuations as some of the many reasons.

According to Emkay, unavailability of fuel could be a simmering issue. “Most of the projects do not have coal linkages, while availability of gas is not yet certain,” it says. The brokerage is also of the view that implementation delays are one of the biggest risks for the company. “We recommend investors to subscribe with the objective of booking listing gains in this stock,” sums the report.

Incidentally, the market has already been abuzz with talk that most retail investors are leveraging to invest in the issue, only to exit on day one. If the grey market premium is anything to go by, then investors are certainly expecting the stock to list at around Rs 900 levels.

Indiabulls on its part believes the company may face difficulties in procuring the required coal supplies for a majority of the projects at commercially acceptable terms. “The group company, RNRL does not hold any rights to coal resources of its own, and is in fact, in litigation with respect to gas reserves of Reliance Industries. Such conditions, if they continue, can have an adverse impact on the operations and finances of the company,” it says. Indiabulls has recommended a ‘subscribe’ to the issue.

R-Power IPO Sop

IPOs are like that only Nothing ‘public’ about ’em

Promoters Seen Offering More Shares
To Institutions During IPOs

Jan 10, 2008
Ashish Rukhaiyar
MUMBAI

PUBLIC issues, it seems, are not quite meant for the ‘public’ anymore. At a time when more and more retail investors are looking to hop on to the equity bandwagon, promoters have taken refuge in a decade-old regulation that allows them to dole out more shares to institutional bidders at the cost of retail ones. And the sad part is that this is perfectly legal and only an initiative from the market regulator can create a more level-playing field for small investors.

According to capital market regulations, if promoters dilute more than 25% during an initial public offer (IPO), retail investors can be allotted 35% of the issue, while institutional category and HNI segment commands 50% and 15%, respectively. However, promoters are nowadays diluting less than 25%, as this allows them to cap the retail portion at a maximum of 30%. The institutional portion in such cases go up by 10%. For small investors, this 5% difference can be substantial when the issue size is large.

Interestingly, this special clause — Rule 19(2)(b) — was introduced by the Securities and Exchange Board of India (Sebi) in 1999 for technology companies wherein promoters were allowed to dilute 10% if the issue size was more than Rs 100 crore. This also meant that QIBs could be allotted 60%, while HNI and retail portion was capped at 10% and 30%, respectively. While initially the special clause was applicable only to technology companies, it was subsequently extended to all sectors.

Meanwhile, two of the most high-profile issues in recent times — Reliance Power and Future Capital — that are about to hit the market shortly are also using this age-old clause (by diluting only around 10-12%) to allocate more to the institutional investors. For instance, Reliance Power, where 22.8 crore shares are on offer, retail investors can bid for only 6.84 crore shares.

While this trend has been on an upswing for quite some time now, the recent past has seen a near complete disappearance of issues where retail investors were offered 35% of the total issue. Industry watchers say this trend is killing the very concept of ‘public holding’ in a publicly listed company.

“The clause was valid when it was introduced,” said Prithvi Haldea of Prime Database, adding that now times have changed and there is an urgent need to revisit it. “Maybe increasing the Rs 100 crore limit to Rs 300 crore or Rs 500 crore could be a practical option as there is enough depth in the market to absorb such an issue,” he said.

The effect of this clause can be gauged from the shareholding pattern of some of the companies that turned ‘public’ last year. The retail holding in Puravankara Projects is a lowly 0.8%. In the case of Motilal Oswal Securities and Omaxe, the retail stake is 3.43% and 3%, respectively. After the mega-sized public issue of DLF, retail investors have only a 2.25% stake in the real estate major. In Vishal Retail, public stake is less than 5%.

However, merchant bankers, quite expectedly, are happy as it allows them to allocate more shares to institutional investors. “Promoters want more institutional investors as their shareholders,” said an investment banker on condition of anonymity. “Ultimately, it is the name of the foreign or domestic institutional entities that will attract more investors,” he added.

Some bankers are also of the view that promoters like to leave some room for a follow-on offering or a qualified institutional placement and so decide against a dilution of around 25%. However, bankers remain tight-lipped when questioned about the importance of the law in the current scenario.

‘Sebi’s insider norms just not right for India’

Jan 03, 2008
Ashish Rukhaiyar
MUMBAI

THE Securities and Exchange Board of India’s latest move to rein company insiders making a ‘quick’ profit ahead of price sensitive developments has met with a mixed response from industry experts. Most feel the regulator should go much beyond taking a leaf out of the Securities Exchange Commission rule book.

Guidelines related to the 10% holding limit and surrendering of gains to the company need to be relooked at to make it more suitable for the Indian market, they add.

In a circular issued on Tuesday, Sebi proposed that company insiders will have to return any profits made from the purchase and sale of company shares, if both transactions occur within a six-month period. A company insider, as determined by Sebi, is any officer, director or holder of more than 10% of the company’s shares.

“The 10% limit in Indian context looks unrealistic,” says a compliance officer of a corporate house. “There are not many companies in India where, other than promoters, entities hold more than 10%. The limit either needs to be done away with or brought down substantially. And even if this law is aimed at promoters, the 10% limit is avoidable,” he added.

In a similar context, Akil Hirani, managing partner of Majmudar & Co, points out the fact that even in the Sebi takeover regulations, the definition of ‘control’ does not include any percentage limit. “It has been held by courts that even a shareholder who does not own shares in a company can said to be in control of the company. Therefore, there is no need to provide a percentage holding threshold in defining an insider,” says Mr Hirani.

Interestingly, Sebi seems to have been directly inspired from the Securities and Exchange Commission’s (SEC) Section 16(b) that requires 10% owners, directors and officers of a company to give up “any profit realized ... from any purchase and sale, or any sale and purchase, of any equity security” of the company within a six-month period.

Market players have also expressed surprise over the fact that the gains need to be surrendered to the company. In case, it is the promoters who are found violating the rule, they will not be at a loss if the money is returned to the very company they control. The gains should be tendered to the regulator or may be to the investor protection fund, say market watchers.

Meanwhile, an equity broker while explaining the modus operandi of company directors and top officials says that these entities rarely trade in their own name while acting on inside information. They usually operate through shell companies controlled by them, and at times, even use their stock broker as the front.

“The broker might buy shares at the behest of the company official and sell it when the news become public. He just has to find innovative ways to transfer the net gains,” said the broker on conditions of anonymity.

"The regulator may do good by including notional entities within the purview of the definition of ‘insider’. More often that not, insiders do not trade directly, and a third party broker might be acting on the instructions of an insider. This should be plugged", feels Mr Hirani.

R-POWER IPO SOP

Jan 01, 2008
Ashish Rukhaiyar
MUMBAI

A LITTLE over a month back, the Securities and Exchange Board of India (Sebi) allowed companies to offer discounts to retail investors during an initial offering of shares. The results are already showing.

According to sources, Reliance Power will be the first to offer such a discount to retail investors when the issue opens for subscription later this month. The IPO is estimated to raise about $3 billion, making it the biggest-ever in India.

Sources close to the development say that the company will be offering a discount of 5-6% to all retail investors applying for the IPO. The issue is expected to hit the market in mid-January and the shares will be listed in the first week of March.

Co likely to set Rs 400-450 IPO price band

IT IS believed that the price will be set in the Rs 400-450 range. The face value will be Rs 10 per share.

In a circular dated November 29, 2007, Sebi had allowed for a maximum discount of 10% to retail investors. While companies have offered discounts to retail investors during fresh issuance of shares, this will be the first time it happens in an IPO. Last year, ICICI Bank offered a discount to retail investors when it came out with a follow-on public offering (FPO).

The IPO of Reliance Power, in accordance with Rule 19(2)(b) of the Securities Contract (Regulation) Rules, 1957, will offer 60% of the issue to institutional investors. The non-institutional investors and retail segments will be pegged at 10% and 30% respectively.

The issue is managed by a clutch of investment banks including JP Morgan, JM Financial, Kotak, UBS, Deutsche, Enam, ICICI Securities and Macquarie, among others. Reliance Power is currently developing 12 medium and large-sized power projects with a combined planned installed capacity of 24,200 MW.

M&A wave likely to continue in ’08

Jan 01, 2008
Ashish Rukhaiyar
MUMBAI

THERE are some things that get bigger and better with time. While the ‘better’ part may be debatable, bigger is certainly the case when it comes to mergers and acquisitions. As the new year rings in, experts are betting on another great year for India Inc in 2008.

Investment banking circles predict that sectors like IT, telecom, financial services and infrastructure will be in the midst of M&A activity in the current year. Even as sectors like retail and insurance are coming into their own, bankers feel that one can wait for more clarity in guidelines before taking a call.

Indeed, the ingredients are all there. India recently became the 11th trilliondollar economy in the world. In terms of dollar millionaires, India ranks eighth. The year just gone by witnessed a stupendous rise in the quantum of M&A activity in the country with quite a few deals above the $1 billion-mark in size.

In 2007, India attracted deals worth $68.32 billion, significantly higher than $28.16 billion in 2006 and $18.35 billion in 2005. Between 2003 and 2007, the value of outbound deals more than doubled each year, resulting in a compound annual growth rate of 108%. Of the total deals, M&A accounted for $51.17 billion while the remaining $17.14 billion was in the form of PE investment.

“There is no reason to believe that the M&A scenario will be subdued this year,” says S Ramesh, executive director, Kotak Mahindra Capital.

Financial services, especially brokerages, have been in the limelight in 2007. And if indications are anything to go by, then 2008 will be no different. Brokerages including Emkay and Networth are but some names being touted about looking at strategic investment opportunities. The bullish stock market has led to an increase in the valuations of all brokerages that are said to be ready to offer stake given the right price.

Entities like India Infoline, Indiabulls, Anand Rathi Securities, Karvy Stock Broking, JRG Securities and Geojit Financial Services all attracted private equity investment in 2007.

In the telecom sector, tower infrastructure companies are slated to create headlines. Entities like Bharti Airtel and Reliance Communications have floated subsidiaries for cell towers and sold minority stakes at huge valuations. Even the Tatas and Ruias have floated such subsidiaries. There is no doubt the current year will see a lot of deals in this sector, feel experts.

In the IT sector, deals like that of Genpact and Citi’s BPO services may see the light of the day this year. On a different note, retail is not finding many supporters as many feel that the sector still does not command size.

State Bank of Mauritius eyes stake in Centrum Capital

GLOBAL INVESTMENT BANKS VIE FOR
A SLICE OF INDIA’S EQUITY MARKET PIE

Dec 25, 2007
Rajesh Unnikrishnan & Ashish Rukhaiyar
MUMBAI

STATE Bank of Mauritius, the second largest bank in Mauritius, has approached the Mumbai-based Centrum group to buy into the equity of its flagship firm Centrum Capital. The move is in keeping with the bank’s new focus on expanding its reach and network in the Indian retail and financial services segment.

Centrum Capital is active in the investment banking services and distribution of financial products sector. The firm had forayed into the local stock broking business almost four years ago. SBM had signalled its intention early this year when it acquired a minority stake in the Kolhapur-based private bank Ratnakar Bank.

Sources close to the deal said the foreign bank was in talks with Centrum Capital to pick up a stake of less than 15% in the company. State Bank of Mauritius is believed to have valued this at close to Rs 1,800 crore which has been communicated to Centrum Capital, the sources said. The valuation may not be acceptable to the company.

A senior Centrum official said: “State Bank of Mauritius approached us to acquire an equity stake in the company. However, we cannot agree with the valuation which they have given to us. We expect a much higher valuation because all our business are growing, Currently, we are in the process of restructuring our business operations and we will actively look for a stake sale after few months.”

Early this year, State Bank of Mauritius bought a 4.8% stake in Ratnakar Bank in which the Centrum group also has a stake of close to 7% stake. SBM’s Indian operations are marked by three branches — Mumbai where it kicked off in 1994, Hyderabad and Chennai.

In the backdrop of these developments, the stock of Centrum Capital was locked at its upper circuit of 5% on Monday at Rs 695. While the stock has gained more than 200% in the last one year, it recently touched a new high of Rs 892.

Interestingly, brokerage houses have been at the centre of action with quite a few deals being reported in the sector. The upswing in the Indian equities market has led to a surge in the valuations of most brokerage firms prompting many promoters to take the plunge and offload part of their holdings to a global financial major.

Recently, ICICI Ventures and Baring Asia picked up a 20% stake in Hyderabad-based Karvy Stock Broking-the second such deal for Barings on the brokerage front. It had earlier picked up a substantial stake in Kochi-based JRG Securities.

Citigroup also bought a stake of close to 20 % in Anand Rathi Securities in March. In the same month, BNP Paribas acquired a 33.35% stake in the Kerala-based retail broking firm Geojit Financial Services for Rs 207 crore.

Among other deals in the domestic industry, Al Anwar Holdings recently acquired 14.99% in Almondz Global Securities. Oman’s largest bank, BankMuscat picked up a 43% stake in the Mangal Keshav group. Further, Switzerland-based wealth manager EFG International has said it would acquire 75% stake in Stratcap Securities India.

Banks, Sebi talk on new bond

Nov 23, 2007
Ashish Rukhaiyar & Preeti R Iyer
MUMBAI

REPRESENTATIVES of major banks met officials of Sebi on Thursday, proposing that they be allowed to become direct members of bond market clearing house. The proposal, if approved, will expedite the settlement process in the corporate debt market. But it has to be approved by both Sebi and RBI. According to sources, the meeting was also attended by exchange officials and some top debt market brokers.

Currently, all the deals in the corporate debt market are ‘over the counter’ where transactions take place directly between two players, through the telephonic mode. An entity intending to sell bonds has to place a request on the NSE platform and the deal is completed only when the buyer accepts it though the same platform.

Due to this lag, deals in the corporate debt market are not real time in nature. However, the other issue in the system is that of duplication of deals reported across the three platforms — one each by NSE, BSE and FIMMDA.

The volumes are very thin as processes are not streamlined, said a bond house dealer. On a different note, repo trading is also believed to have been discussed. Market players feel repo trading must be allowed for volumes in debt segment to pick up.

Sources feel proposals will take time for implementation; there needs to be clarity on issues like permission for trading junk bonds on these platforms, or restricting it to triple A rated bonds.

Sharp run-up in select PSUs raises eyebrows

Sebi Seen Probing The Trading
Pattern Of These Low-Float Cos

Nov 16, 2007
Ashish Rukhaiyar
MUMBAI

IF A stock with negligible free-float gains more than 100% in a short span, it may not necessarily be a cause for cheer. In fact such an uncalled for activity may just bring the counter under Sebi scanner. Particularly because there is every probability that since the stock is not widely held, an investor or a group of investors may or could dictate terms and push up the stock price.

Interestingly, that seems to be just the case with a group of public sector counters . A sharp upswing in recent times has led to the belief that these counters are witnessing a planned and syndicated trading activity, thereby pushing up their prices to exorbitant levels.

Stocks like Hindustan Copper, State Trading Corporation (STC), Minerals & Metal Trading Corporation (MMTC), National Mineral Development Corporation (NMDC), Maharashtra Elektrosmelt and HMT have all witnessed sharp gains in the past one month, with some gaining as much as 200%. Informed sources maintain that this has led to the Securities and Exchange Board of India (Sebi) inquiring into the trading patterns in these counters.

In some of these companies, the government holding is as high as 99.51% and yet the stock remains frozen at the upper circuit all through the trading session. While most analysts seem perplexed over the massive rise, they add that a group of investors maybe behind the rise as there has been no significant change in fundamentals in the recent past.

“Stocks like STC, NMDC and MMTC have gained ground even on days when the benchmark indices lost heavily,” said a dealer with a reputed broking house. “In the case of Hindustan Copper, the stock has gained more than 200% in the past one month. What is interesting is that retail investors hold only 0.29% of the total equity. On its part, NMDC has a retail stake of 0.1%,” he added.

Sources further add that while MMTC has been under Sebi scanner for quite some time now, other PSUs fall into the ‘eligibles category’ for the regulator’s surveillance team. “Sebi is trying hard to find a trend in the trading pattern in some of these counters, but the low free-float does not make it easy. Also, there are a number of ‘fronts’ in the market today,” said a source.

In fact, there is very less likelihood that the promoter holding will drop to more realistic levels as PSUs have been granted exemption from Clause 40A of the listing agreement. This clause stipulates that promoters cannot hold more than 75%.

Meanwhile, on Thursday, when the benchmark Sensex lost 144 points, Hindustan Copper was locked at its upper circuit of 5% at Rs 584.85. The stock has gained 207% in the past one month. Even, NMDC was frozen at the upper circuit at Rs 14,147. NMDC has gained close to 70% since October 15.

State Trading Corporation (STC) has also gained more than 200% in the past one month. On Thursday, it gained the maximum permissible limit of 5% to close at Rs 1,574.65.

According to some dealers, apart from some prominent operators who are active in STC, a leading industrial house is also believed to be providing ‘outside support’ to some operators.

Sebi to pull up cos in Nissan Copper case

Nov 13, 2007
Ashish Rukhaiyar
MUMBAI

MARKET regulator the Securities and Exchange Board of India (Sebi) is said to be in final stages of issuing show cause notices to Venus Capital and couple of other domestic entities in the Nissan Copper case. It is believed that even the Economic Offences Wing (EOW) is playing an active role and is busy studying the investigation report prepared by Sebi.

The case pertains to the stupendous rise in the share price of Nissan Copper, which was listed on the bourses on December 29, 2006. While the issue price was fixed at Rs 39, the first day saw the share price gaining a whopping 248% to touch an intra-day high of Rs 135.70 on the Bombay Stock Exchange (BSE). Further scrutiny made it clear that the rise was a result of a structured deal.

Venus Capital and its two sub-accounts offloaded nine lakh shares and within seconds two brokerages — Deep Infrastructure and Park Light Securities — lapped up almost entire share. “It all happened in a matter of 18 seconds,” says a source, adding, “As a result of which there was no price fall. This cannot happen without prior planning.”

Meanwhile, according to CBI sources, the EOW has already collected the investigation report prepared by Sebi and is busy analysing it. “The CBI works with Sebi in such matters as the former has greater powers in terms of issuing chargesheets. Since EOW has already started studying the investigation report, action can be expected soon,” said a source on condition of anonymity.

Interestingly, there are two EOWs — the one operated by the Bombay Police and the other by CBI. The one under CBI looks into larger issues of money laundering and other related to fraudulent issues. Among the domestic entities, Vora group and Reniwal group are alleged to have played a key role in the price rigging. Incidentally, the Vora group is also one of the accused in the IPO demat scam. However, CBI did not file any chargesheet against Vora group in the demat scam as it believed that they were not among the frontline entities behind the scam.

Sebi had come out with the ad interim order in the Nissan Copper case in January in which it asked the stock exchanges to withhold profits of many entities in a separate escrow account.

The entities included Deep Infrastructure, Dhiren Vora, Sonali Vora, Park Light Securities, Rajeev Reniwal, Venus Capital Management, ITF Mauritius and VACUF, among others. Further, it also restrained Matrix Equitrade, RSS Investments, Park Light Securities, Religare Securities and H Nyalchand Financial Services from dealing directly or indirectly in the shares of Nissan Copper.

Sebi, in its second order in the same case in October 2007, confirmed the ad interim order against three entities namely Mukesh Agarwal, Tanmay Agarwal and Sharvari M Agarwal.