Infotech stocks lead in market tumble
Mumbai: Infotech stocks came under heavy pressure on the stock exchanges with selling in these shares reaching almost panic proportions. The Bombay Stock Exchange's 30-scrip Sensex tumbled 106 points to 4836.91 and the National Stock Exchange's S&P CNX Nifty lost 24.30 points to reach 1453.35. Almost all infotech stocks registered heavy losses, mainly on account of news that the US companies have curtailed software development on account of the impending Y2K problem. Major losers included Infosys Technologies (Rs 365), Satyam Computers (Rs 133) NIIT (Rs 130) and Wipro (Rs 40). Digital Equipment, Pentafour Software, CMC, Fujitsu ICIM and Citicorp Securities also showed a significant fall. VisualSoft and Cybertech Systems, however, ruled firm.

Besides the infotech stocks, pharma shares like Dr Reddy's Laboratories and SmithKline Pharmaceuticals and cyclical shares too turned weak in line with the general downward movement in prices.
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OTCEI plans trading segment for unlisted securities
Mumbai: The Over the Counter Exchange of India announced plans to introduce a separate segment for trading in unlisted securities as part of its restructuring programme. The exchange is also rationalising listing norms.

The exchange had set up a committee under the chairmanship of Pradeep Kar, chairman of Microland, to recommend steps for attracting information technology companies for listing. The recommendations made by the committee include insurance cover for investment in cases where the project is not completed, or abandoned, for any reason. The committee has also suggested that knowledge-based companies should be allowed to be listed on the OTCEI without insistence on a track record. Such companies would have to have a minimum market capitalisation of Rs 5 crore and a minimum public float of five lakh shares.

OTCEI managing director Joseph Bosco said these measures have been introduced for the first time and are aimed at improving liquidity.
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UTI to promote OTCEI
Mumbai: The Unit Trust of India will place relationship officers in Silicon Valley to "reverse the process of brain drain", UTI's chairman, P.S. Subramanyam said. These officers will interact with the promoters of start-up companies in the US and try to convince them to list on OTCEI, which is being revamped. The idea is to promote OTCEI, Mr Subramanyam said.

UTI is also planning investments in start-up ventures using the venture capital fund, which it plans to launch soon.
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Sebi guidelines on debt issues
Mumbai: The Securities and Exchange Board of India has made it mandatory for all public debt issues of over Rs 100 crore to be rated by at least two approved credit rating agencies. Sebi has also introduced provisions to enforce the minimum three-year service record for information technology companies for their initial public offerings.

Sebi's credit rating regulations had sought to put a minimum credit rating clause for all debt issues. Sebi, however, decided to enforce the move through the disclosure and investor protection guidelines, governed by the listing agreement with stock exchanges in view of possible legal implications.
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Hindalco plans NYSE listing
Mumbai: Hindalco is planning an entry into the American stock markets. The A V Birla group aluminium company says it is exploring the feasibility of listing on the New York Stock Exchange. The company's main intention is to convert its existing $172 billion global depository receipts in the European markets into American depository receipts. The company may also consider issuing fresh ADRs.
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India Cements plans private placement
Mumbai: India Cements is planning a private placement of equity shares amounting to Rs 40 to Rs 60 crore at a premium in order to raise funds to restructure its debt and to finance its expansion. The company will seek shareholders' approval for the private placement.

India Cements has an equity capital of Rs 128 crore. The private placement was expected in June 1999, but it was delayed due to poor market conditions. It was also planned to part-finance the takeover of Raasi Cements.
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