Citi’s Investment In HDFC Was FDI
Vidrum / 29 Feb 2012
According to the National Stock Exchange, the shares sold by the Citi were bought majorly by Deutsche Securities Mauritius and ICICI Prudential Life Insurance Company. It was also revealed that some of the buying was from Citigroup Global Markets Mauritius. However, it should be noted that Citigroup was the seller on a net basis.
According to HDFC, Citi’s investment in HDFC was classified as Foreign Direct Investment (FDI) and thus it did not reflected in the Net FII sales figure. Hence, as per the BSE and SEBI, FIIs were the net buyers on Feb 24, 2012.
Further, it was shocking to see was that the Net Investment by FIIs as per the BSE website and as per SEBI is different. SEBI usually declares the numbers that are delayed by one day. However, the turnover for FIIs as on Feb 24, 2012 is Rs 8955 crore as per the BSE, while it is Rs 7598 crore as per the SEBI, a difference of a whopping 18%.
We further went ahead and checked some of the past data. This is not the first time that a difference has been seen. The following table shows the FII investment in the past 10 days. It was indeed shocking to see that there was no instance where the difference between the two was marginal. So much so, that in one case (as on Feb 27, 2012), the BSE showed a positive inflow while as per the SEBI, they were negative.
| Net Investment (FII) (Rs / Cr) | |||
|---|---|---|---|
| Date | BSE | SEBI | % Change |
| 10/02/12 | 196.13 | 343.3 | -42.87 |
| 13/02/12 | 469.77 | 647.9 | -27.49 |
| 14/02/12 | 1030.12 | 1146.7 | -10.17 |
| 15/02/12 | 1838.85 | 2185.3 | -15.85 |
| 17/02/12 | 536.48 | 594.6 | -9.77 |
| 21/02/12 | 1400.17 | 1494.6 | -6.32 |
| 22/02/12 | 829.63 | 966.9 | -14.20 |
| 23/02/12 | 104.55 | 376.9 | -72.26 |
| 24/02/12 | 8955.29 | 7598.1 | 17.86 |
| 27/02/12 | 329.09 | -542.5 | 160.66 |
The BSE provides data on a provisional basis. However, if the difference between their data and that provided by the SEBI is as great as this, then what is the benefit of taking the provisional data from the BSE? There is also some probability of manipulation, as some investors would classify them as FIIs while buying from the market but ultimately they fall into the non-FII category as per the SEBI guidelines.
We contacted the BSE but were not able to get a timely answer, while in case of the SEBI, we could not reach the concerned official. We believe that the BSE should try and provide more accuracy in their (provisional) data, which would work in the investors’ favour.If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.