Rumours take Sensex into a roller-coaster
Mumbai: Rumours involving the Unit Trust of India and a leading broker, who specialises in information technology scrips, sent the stock market into a tizzy. The 30-share Sensex of the Bombay Stock Exchange touched at an all-time peak of 4810.30, then nosedived 216 points to reach a day's low of 4609.90, and recovered 110 points later to close at a respectable 4718.73 points.

Observers said some bear operators, who have been affected by the current bull run, had spread the rumours.  The rumours also concerned the Securities and Exchange Board of India ordering an inspection into the books of a stockbroker. At close the Sensex showed a net loss of 73.37 points from the previous day's level.

However, the impact of the rumours was not seen on the National Stock Exchange. The S&P CNX Nifty dropped from an all time high of 1,414 to 1,371.65.

Sebi cautioned small investors not to be influenced by the behaviour of the stock markets. It advised them to take investment decisions looking at fundamentals.

The volatile market led to an erosion of about Rs 25,000 crore in the market cap from the all-time high of Rs 7,25,000 crore.
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Bourses told to use surveillance system
Mumbai: The Securities and Exchange Board of India has advised stock exchanges to make full use of surveillance capabilities, especially the stock watch system, to ensure market safety and integrity.

The exchanges have also been advised to identify manipulative trends in stocks. The inter-exchange market surveillance group, which met in Mumbai, also advised exchanges to check rumours in market in time, and to pass on correct information to investors.
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VSNL's Indian offer in September
New Delhi: Videsh Sanchar Nigam Ltd will make retail offer of its stocks in the domestic market sometime between 20 and 24 September 1999. The company will offer one million shares in the retail market, VSNL's acting chairman and managing director Amitabh Kumar said.

VSNL will also list on one or more US exchanges by December, he added.
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ICICI float in early September
Mumbai: ICICI will simultaneously make its Rs 275-crore public issue and a Rs 500-crore preferential share issue in the first half of September 1999. ICICI has received an in-principle approval from the government to issue up to $315 million worth of equity through an ADR/GDR issue. This will be made after the domestic issues.

ICICI is now ready to raise Rs 2,165 crore worth of equity through a combination of domestic and global issues -- Rs 275 crore at Rs 73 a share from the public and a preferential issue of Rs 500 crore to its institutional holders and $315 million in ADRs/GDRs.
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ASC Enterprises for IPO
New Delhi: The Subhash Chandra group satellite telephone venture, ASC Enterprises, is planning an initial public offer of about Rs 535 crore.

This will be one of the biggest IPOs in the domestic capital market. The issue is planned for sometime in the year 2000. The proceeds will form part of the Rs 1,650-crore equity proposed for the company.

The details of the offer are being worked out.
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UTI plans permanent MEP
Calcutta: The Unit Trust of India is setting up an open-ended equity-linked saving scheme by end-October 1999 to substitute its tax-savings schemes launched every year.

Executive director of UTI Brij Gopal Daga said the open-ended equity scheme will be a permanent substitute for the Master Equity Plans the trust launches every year. UTI is approaching the Securities and Exchange Board of India for approval.
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Kotak Mahindra has two new schemes
Mumbai: Kotak Mahindra Mutual Fund will launch K Bond Unit Scheme 99 and K Balance Unit Scheme 99 in September.

The K Bond scheme has been divided into two plans -- a wholesale plan and a deposit plan for retail investors -- while the K Balance will be a balanced fund with 51 per cent investment in equity and the balance in debt and money market investments.

Both schemes will be open-ended.
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NSE for leased-line back-up
Mumbai: The National Stock Exchange is launching a project to provide a leased-line back-up for its V-SAT-based trading network.

This will eliminate trading loss due to satellite failure and provide brokers with eight additional trading terminals at a annual leased line rental of around Rs 30,000. At present a member has to pay Rs 1.50 lakh per annum for the V-SAT.
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