Markets shoot up
Mumbai: The Bombay Stock Exchange index of 30 shares rose by 122 points to touch 4,832 on  6 September compared to the close on  4 September. The National Stock Exchange index of 50 shares closed at 1390, up 15 points. Infosys Technologies touched its all-time high of Rs.5,942 on the BSE. Infotech shares led the rally.

Some analysts feel that the Sensex could touch 5,000 by October 1999. One of the notable features of the  6 September spurt is that the volumes were thinner on both the exchanges. Does this mean that the bulls are losing steam? Can Infotech stock still go higher? Wait and watch.
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NSE starts 3-day trading cycle
Mumbai: The dry run of the 3-day settlement cycle on the National Stock Exchange started on 6 September  1999. Volumes traded have been at around Rs.4 crore. This experimental trading cycle will continue for one month before a final verdict taken.
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Public offer by VSNL
Mumbai: Videsh Sanchar Nigam Ltd. will issue 10 lakh shares to the public at Rs.750 each. The issue opens for subscription on 20 September 1999 and closes on September 24 1999.

Post-issue, the government’s equity holding in VSNL would come down to 52.9 per cent from 54 per cent.
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L&T garners Rs.150 crore
Mumbai: Larsen & Toubro  has collected Rs.150 crore through  private placement of non-convertible debentures with two options.

One of the ‘options’, a put option, for the investor, has a tenor of 30 months and carries a 10.75 per cent coupon rate. The other ‘option’ carries a seven-year bullet repayment, step-up coupon feature with a call option in favour of L&T. The coupon for the second ‘option’ varies from 11.1 per cent to 13.4 per cent per annum. The effective yield  works out  close to 10.9 per cent and 12.6 per cent respectively for the two options.
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JM Mutual’s gilt issue opens on 15 September
Mumbai: JM Mutual Fund’s open-ended gilt fund issue will open on 15 September1999 and will close on 29 September 1999. Ashutosh Bishnoi, president and chief executive of the fund has said that the issue is targeting large investors such as banks, provident funds and trusts.

The fund will invest its proceeds in central and state government securities. There are two plans in the issue -- the ‘provident fund’ and the ‘regular’.
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Bharti faces investor wrath
Mumbai: The Bombay Stock Exchange is planning action against Bharti Telecom on a representation by Mumbai-based Yatish Trading that the company had stopped transfer of 94,200 shares sent to it on the ground that Yatish Trading had not cancelled the transfer stamps affixed on the deeds, worth Rs.43,300. Bharti Telecom, quoting company law,  had kept the original transfer deeds with itself and sent photo copies of the deeds along with the share certificates to Yatish Trading.

The Economic Times, in a report said, the Bombay Stock Exchange considers this as acting against investor interests. It feels that  getting new transfer deeds from the stock broker, who is first listed on the transfer deeds, will now be difficult and hence the shares should be transferred without objection.

The exchange has written to the Delhi Stock Exchange, which is the regional stock exchange for Bharti Telecom.

Bharti, in the meantime, is sending back the transfer deeds. The company is also in the process of getting itself delisted from the Bombay Stock Exchange.
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ASE sends messenger to Reliance
Ahmedabad: With  Reliance Petroleum announcing its intention to delist from the Ahmedabad Stock Exchange, the latter has sent a senior broker to Reliance to persuade it  not to go ahead with its plans. Reliance group shares constitute 50 per cent of the average daily trading on the Ahmedabad Stock Exchange, with around 10 per cent contributed by Reliance Petroleum.

Rajiv Desai, executive director of the exchange has said that the exchange will reduce the listing fees of Rs.15 lakh to the levels prevailing on the National Stock Exchange.

Reliance Petroleum feels that  the listing fees charged by the Ahmedabad Stock Exchange are too high.
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Pledged shares profile changing
Mumbai: Physical shares are giving way to shares in dematerialised form, as more and more borrowers are pledging dematerialised shares..

According to a report in The Economic Times, loans against pledged shares, which are in the dematerialised form, have lower margins of 25 per cent  compared to the 50 per cent for physical shares. The interest rates charged on such borrowings are also lower. The Reserve Bank of India, in its recent monetary policy, has increased the cap on loans against dematerialised shares to Rs.20 lakh, compared to the cap of  Rs.10 lakh for physical shares.
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Equity restructuring by 400 companies
Mumbai: Equity restructuring has been undertaken by around 400 Indian companies in the years 1997 to 1999. Equity restructuring, according to the Securities and Exchange Board of India, is said to happen when  Sebi is informed about a sale under the takeover code of February 1997 or when a preferential allotment is made. From February 1997 till now, there have been 128 open offers.
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