Sensex close to 5000 mark
Mumbai: The Bombay Stock Exchange index of 30 shares closed at 4,905 points on 30 August 1999, up 35 points from the close on 27 August 1999. Intra-day, it touched a high of 4,966 points, its all-time high. The National Stock Exchange index of 50 shares closed at 1,421 points, up 5 points. 35 shares from the specified category in the Bombay Stock Exchange hit their new 52-week highs.

During intra-day trading the markets were very volatile. They opened with a huge gap, went higher and dropped sharply lower. Sources say the market is over-heated and that a correction is imminent.
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Sebi may introduce uniform IPO norms
Mumbai: The Securities and Exchange Board of India is planning to introduce uniform public issue norms, according to a report in The Economic Times. This is expected to standardise the disclosure norms and entry norms for all issues, no matter what the price is.

Currently, issues at par and premium issues have different guidelines. The pre-requisite of a three-year dividend track record for premium issues is also likely to be dropped.
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ICICI allows GDR to ADR conversion
Mumbai: The holders of global depository receipts of ICICI Ltd. have been allowed to convert them into American depository receipts. This will make the GDRs more tradable.

ICICI is planning a $315 million ADR issue, and also a listing on the New York Stock Exchange, upon which the GDRs will become convertible into ADRs. ICICI has sought approval for its proposed issue from the cabinet committee on foreign investments.

ICICI will launch its domestic issue on 9 September 1999 and close it on 14 September 1999. The issue size will vary between Rs.275 crore and Rs.302 crore, owing to a green shoe option. The issue price would be Rs.73 per share.
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Birla MF to launch scheme
Mumbai: The Birla Mutual Fund will launch a gilt and balanced fund. It will soon send the draft prospectus to the Securities and Exchange Board of India.

The existing schemes of the mutual fund are Birla Advantage Fund, Birla Tax Plan, Birla Tax Plan 98, Birla Income Plus, Birla Cash Plus and India Advantage Fund.
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North Star price rigging takes its toll
Mumbai: For their alleged involvement in the price rigging of North Star Gems (India) shares, 15 persons have been barred by the Securities and Exchange Board of India. Between March 1996 and June 1996, the share price rose from Rs.176 to Rs.209 at the close of the settlement.

Sebi says that this price rise was accompanied by rise in volumes, which were considered abnormal. Its investigations revealed the nexus between Amit Shah and North Star promoter Piyush Mehta, who manipulated the share’s price along with others, it is alleged.

The accused will be barred from the markets for various periods ranging from two to five years.
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BSE ups number of special margin scrips,  Z group size
Mumbai: Volatility in the market has forced the Bombay Stock Exchange to increase the number of stocks with special margins, from 24 to 30. The rates will depend on the closing price on 28 August 1999.

Morepen Laboratories attracts the highest margin of Rs.155 per share, more than 25 per cent of the share price. Others on top of the list are Morepen Hotels, Sharp Industries, Boss Industries, Omega Interactive and Synergy Log-In. The new additions made this week are Auto Corporation Goa, Datapro Information, Mount Everest, Nexus Software, Torrent Gujarat Biotec and Ventron Polymer.

On 30 August 1999, the BSE announced the shifting of 13 more shares to the Z group. They are Vipul Securities, Virgo Polymers (India), Vizar Agro, Volvo Steels, Vrundavan Agro, Vrundavan Securities, Wall Street Construction, Western Fruits and Vegetables, Winfarm Agro Industries, Woolite Mercantile Co., Yama Polymers, Yamini Investments and Zodiac Investments.
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NSDL scheme to distribute BSES dividend
Mumbai: The National Securities Depository Ltd. has used its direct deposit scheme to distribute dividends to the holders of dematerialised BSES shares, whereby the amount due is directly credited into the account of the concerned shareholders. More than 15,000 BSES shareholders have received dividend in this manner, who were registered as of 6 July 1999, the record date for dividend payment.

In this pilot project, Deutsche Bank is co-ordinating the process with NSDL.
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UTI to comply with all Sebi guidelines
Mumbai: By September 1999, the Unit Trust of India will show its plans for complying with all mutual fund regulations specified by the Securities and Exchange Board of India. According to the UTI, there are 16 domestic schemes that will be looked into, which were all launched before the formation of Sebi. Among these, there are schemes that will mature and be phased out.

The tougher ones to sort out will be schemes such as US 64, which contains term loans, which are not allowed by mutual funds according to Sebi regulations. Close to Rs.4,500 crore out of the total of UTI’s portfolio size may be in the form of term loans.

In the meantime, UTI is planning to introduce a monthly investment plan for particular categories in its Bond Fund and Master Index Fund.

UTI is spending Rs.70 crore on upgrading its technology, for which it has appointed Tata Consultancy Services. McKinsey & Company has been appointed to help the UTI reengineer its business processes.
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