The fall on the BSE’s mid-cap indices were harder than that of the large-cap. 3 September being the last day of the settlement on the BSE, the market is expected to fall further, but in a narrower range.

Zee Telefilms, which attracted huge buying support on its way up, is one of the main shares that is facing selling pressure.
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CSE toughens up
Calcutta: Calcutta Stock Exchange will be tightening the scripwise limits and increase the carry forward margins so as to curb volatility in the exchange. The additional carry forward margin is expected to be around 15 per cent, when the gross and net outstanding positions are more than Rs.240 crore and Rs.140 crore respectively, for a scrip.
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MFs allowed to invest in GDRs, ADRs
Mumbai: According to a report in the Business Standard, mutual funds have been allowed to invest in global depository receipts and Amercian depository receipts issued by Indian companies. The Securities and Exchange Board of India will issue guidelines in the near future. It is expected that a ceiling of 10 per cent of net worth will be fixed for such investments.

Earlier, the proposal was to allow mutual funds to invest across all stocks in all the global stock markets. But the Reserve Bank of India has allowed only restricted access to mutual funds.
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IT, Pharma stocks to be included in rolling settlement
Mumbai: The Securities and Exchange Board of India will put some of the volatile pharmaceutical and information technology stocks in the rolling settlement which is planned for a select number of stocks from December 1999.

Initially only ten stocks are expected to be put under the rolling settlement mode, but this list is expected to be expanded.

Sebi is also in the process of clearing norms on corporate governance, wherein compulsory consolidation and segmentation of accounts is expected to be brought about. Quarterly accounts that are now being declared by companies, are also to be brought on  par with international norms.

The Sebi is planning to bring close to 95 per cent of trades on the Indian stock markets under the dematerialised mode, review and revise the takeover guidelines, and  issue guidelines on market making and internet trading.
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UTI’s outflow for 2 months at Rs 800 crore
Mumbai: For the two months of the financial year 1999-2000, the Unit Trust of India has faced a redemption of Rs 800 crore in its open ended schemes. The sales of UTI stood at around Rs 50 crore during the same period. This works out to a net outflow for UTI at Rs.750 crore.

UTI’s flagship US-64 is performing quite well in the current financial year after its portfolio was revised. Its top 50 holdings’ performance has been far better compared to the Bombay Stock Exchange Index’s performance during theJune-August 1999 period While the BSE index went up by 18 per cent in this period, the US-64 holdings increased in the range of 20 per cent to 137 per cent during the same period. The contributors, according to the UTI, are mainly cyclicals and growth stocks.
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NSE for additional settlement cycle
Mumbai: The National Stock Exchange is planning to introduce an additional three-day settlement cycle. The stock exchange is ultimately planning to change from an account period settlement to a rolling period settlement, which is considered to be tighter for the market players.

With the introduction of this additional shorter settlement cycle, the exchange feels that the players will get acquainted with the needs of a more stringent mechanism that will be introduced at a later date.
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MTNL to float bonds
New Delhi: Mahanagar Telephone Nigam Ltd. will issue 11.75 per cent, 5 year, Rs.900 crore bond issue. This is one of the lowest rates offered by the company in recent times.

MTNL already has commitments from banks and insurance companies and to a smaller extent from financial institutions, for the impending issue. The issue consists of a put and a call option at the end of three years. This amount is being raised by MTNL on behalf of DoT, for whom, the former has to raise Rs.977 crore of debt in the financial year 1999-2000.
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Mutual fund: changing faces at the top?
Mumbai: According to a study published in  The Economic Times, private sector mutual funds are giving their public sector counterparts a run for their money. The top mutual fund is of course Unit Trust of India with Rs 62,000 crore in assets, followed by SBI Mutual Fund with Rs 2,604 crore. Then comes Birla Mutual Fund, which  has assets worth  Rs.2,290 crore  under its management.   Closely following at fourth place is Prudential ICICI Mutual fund with a base of Rs.2100 crore. Canbank Mutual Fund, one of the oldest public sector mutual funds, has been pushed to the fifth spot.

Two of the mutual funds that are showing excellent growth are DSP Merill Lynch and Alliance Capital. These two funds  already have assets worth over  Rs.1000 crore under their management.
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Stock exchange brokers punished
Mumbai: The Securities and Exchange Board of India has issued a two month suspension on Apurva Ramanlal Shah of Shah Ramanlal Gulabchand & Sons of the Ahmedabad Stock Exchange for dealing in carry forward transactions illegally.

In the mean time, the National Stock Exchange has expelled HM Desai Securities Ltd. for failing to meet its obligations as well as failing to adhere to guidelines of the Executive/Clearing Corporation. The order has come into effect from 1 September 1999.
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Konkan Railway garners Rs 314 crore, GE Shipping  Rs 30 crore
Mumbai: At an effective yield of 9.86 per cent, Konkan Railway Corporation has managed to garner Rs.314 crore of five-year tax-free bonds sold through the book building method. The bonds had been accorded a credit rating of LAAA (so), which denotes the highest safety-structure obligation.

Great Eastern Shipping Company has raised Rs.300 crore, through the issue of bonds with coupon of 11.75 per cent, payable semi-annually. The bonds had maturity varying from one to seven years, all of which will carry the same type of interest payment. Credit Rating Information Services of India Ltd. has given these bonds a rating of AAA, indicating highest safety.
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