SBI to raise Rs 89,600 cr over next 5 yrs

New Delhi, Aug 31:The Government admitted that the State Bank of India is considering to raise about Rs 89,600 crores as capital funds over the next five years as part of its Capital Augmentation programme based on a sensitivity analysis of its capital position.

The Minister of State for Finance Pawan Kumar bansal, in a written reply in the Lok Sabha today, said the Boards of Public Sector Banks are competent to take decisions regarding raising capital funds, except equity capital for which prior approval of the Government is required.

In response to another question, Mr Bansal said the listed companies have the freedom to issue shares in any denomination or change the denomination by splitting or consolidating the existing shares, subject to certain conditions.

He said stock splits promote liquidity and enable the small investors to invest in shares of small denominations.

He added that the stock split as such does not cause any loss to the small investors.

Responding to another question, Mr Bansal said the Securities and Exchange Board of India (SEBI) has informed that all the Collective Investment Scheme (CIS), including plantation companies, were launched prior to the notification of the CIS regulations in October, 1999. As on date, however, no CIS entity is registered with SEBI under the Regulation.

He said according to the information available with SEBI, 664 CIS entities have reportedly mobilised Rs 3518 crore from investors. Of these, 54 entities had would up their schemes and refunded the money to the investors. SEBI had directed the balance 610 entities to refund the money collected under the schemes with returns due to the investors.

Pursuant to this, 21 entities would up their schemes and repaid the investors taking the total to 75.

The Courts have imposed stay order appointed official liquidators administrators in respect of 19 entities.

SEBI has launched criminal prosecution against the remaining 570 entities.

It has also passed orders debaring these entities and their concerned officials from operating in the capital market for a period of 5 years, Mr Bansal added.

UNI