Stock markets show confusion
Mumbai: On 9 September the Bombay Stock Exchange index of 30 shares declined 17 points to 4,765  from 4,782 the previous day. The National Stock Exchange index of 50 shares closed at 1397, down 3 points. The long weekend ahead found dealers in a laid-back mood.

Reliance Industries  gained 4.8 per cent on the NSE to close at Rs.199, and HDFC moved up 8 per cent to close at Rs.106, in an otherwise lacklustre trading day.
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UTI’s flagship scheme faces capital erosion
Mumbai: US-64, The Unit Trust of India’s flagship scheme, has seen its capital shrink by 13 per cent to Rs.13,544 crore in its financial year ended 30 June 1999, from Rs.15,629 crore recorded in the previous year.

The 35 year-old scheme is facing capital erosion for the third time since its inception. The reserves of the scheme were, however, positive at Rs.130 crore, compared to the negative reserves of Rs.1,097 crore in the previous year.

The UTI’s India IT Fund has seen its capital base rise, but the capital of most of its other offshore funds has shrunk.
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MTNL’s October GDR issue
Mumbai: Mahanagar Telephone Nigam Ltd. is planning to come out with a global depository receipt issue in October 1999. It may retain its original merchant bankers – Merill Lynch, HSBC Investment Banking, and Goldman Sachs – for this issue too.

MTNL may offer cellular services with monthly rentals of Rs.600. Airtime rates are also likely to be lower than the current rate of Rs.6 per minute. The company is targeting around 20,000 subscribers by March 2000.

Mr. Rajagopalan also said that MTNL’s internet services subscription level would expand to 70,000 by December 1999, and to 2 lakh by end-2000. MTNL currently has 14,000 internet subscribers.
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BSE to enlist risks of short settlement
Mumbai: The Bombay Stock Exchange will write to the Securities and Exchange Board of India about its perceptions of the risks involved with a three-day settlement period. A three-day settlement has already been started on the National Stock Exchange on an experimental basis.

The stock exchange has also clarified that the gross exposure of brokers would not be calculated as at the end of the trading week, but at the end of the settlement. This directive will be effective from 27 September 1999. The Sebi had earlier indicated to BSE that the exchange’s gross exposure calulation norms were not in line with those laid down by Sebi.

The BSE will also seek permission from Sebi for registering members of other stock exchanges as its members.

In the mean time, the BSE has changed its trading timings on 10 September 1999, from 9.30 am to 2 pm. The badla session for settlement 25 will also be held on 10 September 1999 instead of on 11 September 1999. .
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ICICI preferential issue subscribed
Mumbai: ICICI Ltd.’s Rs.500 crore preferential issue, mainly to Life Insurance Corporation of India, Unit Trust of India and General Insurance Corporation of India, has been subscribed. The three have invested Rs.196 crore, Rs.115 crore and Rs.189 crore respectively in the issue. The stakes of LIC, UTI and GIC in ICICI will go up from 7.4 to 8.7, 12.7 to 14.7 and 12.2 to 14.2 per cent respectively.

ICICI’s Rs.275 crore, Rs.73-per-share public issue also opened on 9 September 1999. The financial institution is raising Rs.2,165 crore from global and local markets. As part of this, it is floating a $315 million American depository receipts issue that will be listed on the New York Stock Exchange.
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Sebi to promote ‘investor interests’
Mumbai: The Securities and Exchange Board of India will launch a Rs.1-crore advertisement campaign to educate and caution investors about collective investment schemes. At a later date, other issues concerning investor interests will also be taken up for promotion.

The initial campaign will highlight the risks involved in investing in plantation companies. Sebi has recently announced regulations on collective investment schemes.
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