New brokers’ body
Mumbai: Debt market intermediaries in Mumbai have formed a trade association to promote their interests and project their views. The body, called the Fixed Income Brokers Association, has been founded by nine brokers and expects to widen its membership base shortly.

FIBA will focus on promoting the business of debt market brokerage, inculcate fair business practices, and represent its members’ views to regulatory bodies.
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Technology based secondary market reforms
Mumbai: New set of technology based reforms are expected to be introduced in the Indian secondary market over the next few months, according to Pratip Kar, executive director in charge of secondary markets, with the Securities and Exchange Board of India.

Most of the reforms would be in the clearing and settlement area, where modern technology and new systems would bring in speed and reliability. Continuous net settlements, straight-through processing where the transaction goes straight away into the clearing house for settlement, and real-time gross settlement are some of the reforms that are planned to be introduced.

Additionally, internet trading, derivatives trading, rolling settlements, and narrowing down the trade-transfer cycle to T+3 will be some of the other measures likely to come into force.

These reforms will help speed up operations, bring down transaction and broker costs as well as lend greater flexibility to the investor.
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UTI to re-launch schemes
Mumbai: The Unit Trust of India is planning to re-launch several of its existing schemes, including the Master Index Fund, Master Growth, Grand Master, Master Plus, UGS 10,000, and Private Equity Fund. UTI also plans to convert the close-ended scheme, Master Growth, into a open-ended one, for which it has sought permission from the Securities and Exchange Board of India.

The schemes are being re-launched with a view to rejuvenating the investment culture among small investors.

Five sector-specific funds, including GSF Brand, GSF Pharma, GSF Petro, GSF Software and GSF Service, will also be re-launched. The sector-specific funds under the common umbrella of 'Growth Sector' had been introduced in May 1999 in order to provide high growth opportunities to investors, and giving them the ability to diversify risk by allowing switching between sectors.

UTI plans to raise Rs 17,000 crore this year, which would include funds raised from re-launching its existing schemes.
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MSE to introduce modified carry forward system
Chennai: The Madras Stock Exchange is starting a modified carry forward system on Thursday, 4 November 1999. Seven scrips in the demat mode will be brought under this system, including Reliance Industries, Reliance Petroleum, State Bank of India, Tisco, Telco, Larsen & Toubro and Pentafour Software.

The MSE obtained Securities and Exchange Board of India's final approval for the new carry forward system after it complied with all its requirements, such as introducing a settlement guarantee fund, online surveillance and depository participation. The software for the modified carry forward system has undergone trials at the MSE during the past several weeks..
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ITC Threadneedle AMC to merge with Zurich AMC (India)
Mumbai: Following the global takeover of BAT plc's financial services operation, Threadneedle, by Swiss Insurance company Zurich Insurance, the Indian operations under ITC Threadneedle AMC will merge with Zurich Asset Management Company (India) Ltd. sometime in November 1999. The process of buying out ITC's stake in the company is going on. Unit-holder consent letters have already been sent out.

After the integration, the AMC will manage a corpus of around Rs 500 crore under six schemes. Zurich AMC (India), which has been strong on equity services, will now draw strength from ITC Threadneedle's debt portfolio, part of the ITC Threadneedle High Interest Fund, to be renamed Zurich India High Interest Fund. The merged entity will also launch a liquid and a gilt fund and the Zurich India Quantum Tax Saver scheme will to be made open-ended.
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