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Heard on the Street
HDFC board members buy shares via stock
This one could help in keeping the morale of its shareholders high, even amid falling share prices in the current market. Some of the board members of HDFC, the country’s premier housing finance company, have exercised their stock options to buy shares, thus displaying their confidence in the company. According to disclosures filed with stock exchanges, a few high-profile board members of HDFC, including JJ Irani and Bimal Jalan, acquired shares in small numbers through exercise of stock options even while the share price has been declining.
BS Mehta, another board member, also acquired a few thousand shares last month through the same route. According to analysts, their moves would send positive signals to the investors about high growth potential of the company which is the leading player in the housing finance sector. The stock has declined substantially from the recent high of Rs 2,681.6 on January 5 to Rs 2,383.3 on Monday. It, however, closed 1.5% higher at Rs 2,419 on Tuesday.
Going gets tough for JRG Securities on St
The going has not been too good for Kochi-based JRG Securities, whose board representatives have been removed from its Dubai-based subsidiary JRG International Brokerage DMCC. The reasons cited for this are “low shareholding and non-participation in business matters”. The Gulf-based subsidiary has also told Dubai Multi Commodities Centre Authority and Dubai Gold and Commodities Exchange to officially remove the name of JRG Securities from their records based on the decision taken by the board.
JRG International Brokerage is jointly owned by Hazza Bin Mohammed, an Arab national holding about 50%, Babu Lonappan, a NRI holding about 10% equity, and JRG Securities, which held about 40% in the subsidiary. JRG International Brokerage unveiled a rights issue last year which was subscribed to by only Hazza Mohammed and Babu Lonappan. This, in effect, decreased the shareholding of JRG Securities, while increasing the ownership of other partners. According to sources, after the rights issue, JRG Securities was not actively participating in the proceedings of the subsidiary.
“Its (JRG Securities) shareholding has come down to 20% and we are not really expecting any director board services from them,” said a senior official of JRG International Brokerage. On being queried as to whether JRG Securities would exit the subsidiary, the official said, “That is for JRG Securities to decide.” Senior officials of JRG Securities were not available for comment. Shares of JRG Securities ended 0.7% lower at Rs 40.60 on BSE on Tuesday.
Contributed by Vijay Gurav & Shailesh Menon
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