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Stocks to watch: HDFC, Cipla, IOC, Eros, Rolta, Tata Chemicals

HDFC | Max Financial Services | Cipla | IOC | Eros International | Rolta India and Tata Chemicals are stocks, which will be in the news on Monday.

June 19, 2016 / 22:47 IST
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Here are stocks that will be in news on Monday:

SEBI issues consultation paper on REITs-SEBI allows real estate investment trust (REITs) to invest up to 20 percent in under construction assets-To remove restrictions on SPV (special purpose vehicle) investing in other SPVs holding assets-To allow change in the number of sponsors in REITs-To align REITs minimum public holding requirement with SCRR (Securities Contract (Regulation) Rules)-Issues consultation paper on amendments to portfolio managers norms-Proposes to change obligations & responsibilities of fund managers-Proposes to change minimum investment norms for existing portfolio managers-Proposes to change method of audit of overseas fund-To rationalise compliance w.r.t related party transactions in REITs

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HDFC chairman Deepak Parekh says-Boards of 3 companies have agreed to merger of Max Life, Max Financial Services into HDFC Life-Macro environment in India is very conducive-Favourable demographics provide a big opportunity for insurers-Life insurance penetration significantly lower in India-Expect new business premium to grow at 15 percent over the next 5 years-Top 4 life insurance companies have 65 percent market share-If pact materialises, HDFC Standard will become largest player in sector-HDFC Life shareholders are keen to list the company-HDFC Life & Max Life have strong margins & synergies-Product mix of the combined entity will be well diversified-Merger will lead to eventual listing as Max Financial already listed-Eventual shareholding to be determined by swap ratio later-Both Standard Life & Sumitomo have agreed to this transaction-Expect due diligence & valuations to be done in next 60 days

Max Life, executive chairman Analjit Singh says-Company is a profitable life insurance player-Company has a solvency ratio of 345 percent-Possibility to merge HDFC Life & Max Life & then reverse merge into Max Financial-Max Life to be merged with Max Financial & than merged with HDFC Life-Valuation to come in 2 months, will take 10 months for entire process