Markets show divergent trends
Mumbai: The Bombay Stock Exchange index of 30 shares rose 32 points to close at 4816 on 25 October 1999. The National Stock Exchange index of 50 shares closed at 1426, declining 23 points.

The most actively traded stocks on the exchanges were Zee Telefilms, Satyam Computers, Ranbaxy Laboratories, Reliance Industries, State Bank of India and Global Telesystems.

The market swung wildly as there were rumours that the Securities and Exchange Board of India had instructed some bull operators to offload their long positions in software and pharmaceuticals stocks.
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Indian Bank MF in a tight spot
Mumbai: With the government refusing to bail out Indian Bank Mutual Fund, there is every possibility that the mutual fund will now default on its assurances. On behalf of Indian Bank Mutual Fund, Indian Bank had committed to the Securities and Exchange Board of India in June 1999, that it will pay Rs.70 crore as dividend for the Ind Prakash Scheme.

Indian Bank has now informed Sebi that it will be unable to fulfil its commitment. The scheme is set for redemption on 30 November 1999.
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Sebi move on issue pricing frowned upon
Mumbai: The Securities and Exchange Board of India move to stall issues where the public issue pricing is higher while the promoters have allotted themselves preferential shares at lower prices, has been opposed by merchant bankers.

Merchant bankers say that Sebi guidelines do not make it mandatory for companies to offer the same price that has been offered to promoters through preferential issues. They feel Sebi should not stop issues for this reason. Sebi feels that it is doing so as part of its role in protecting investors.
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NSE seeks members suggestions
Calcutta: The National Stock Exchange members' association has asked its members for suggestions on the Securities and Exchange Board of India move to allow smaller stock exchanges to become members of bigger ones through their subsidiaries.

Some NSE members feel that if the NSE allows this, then smaller stock exchange members whose cards are valued at about a hundredth of an NSE card will be able to share the same benefits as those of NSE card holders. Some other NSE members feel that the liquidity and turnover on the NSE will improve if smaller stock exchange members also become eligible to trade on the larger stock exchanges.

In the first week of November 1999, NSE will launch its computer-to-computer-link through its information technology subsidiary, NSE IT. The software will connect brokers and stock exchanges.
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ICICI MF schemes cross parity
Mumbai: The net asset values of Prudential ICICI Mutual fund’s ICICI Premier and ICICI Power schemes have crossed the Rs.10 level. The mutual fund is now contemplating the conversion of both these schemes into open-ended schemes. At present, ICICI Premier has a NAV of Rs.10.45, while ICICI Power has a NAV of Rs.14.57.
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Birla Mutual collects Rs.318 crore
Mumbai: Birla Balance, Birla Mutual fund’s open-ended balanced fund has been able to mobilise Rs.318 crore through its issue that opened on 4 September 1999 and closed on 11 October 1999. This is the single largest collection for an open-ended scheme through an initial public offering. According to the mutual fund, about 25,000 investors have invested in the scheme.
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Shree Rama plans issue
Ahmedabad: Packaging company, Shree Rama Multi Tech will raise Rs.150 crore through the book-building route to expand its existing operations in Ahmedabad and also to set up a new factory in Pondicherry.

The total project cost envisaged by the company is about Rs.306 crore. It intends to take its capacity to 640 million tubes from the current 353 million.

DSP Merrill Lynch, book runner for the issue, has stated that the issue will have a par value of Rs.5 and will be priced around Rs.100 to Rs.120 a share.
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Neuland Labs to issue rights
Hyderabad: Neuland Laboratories Ltd. will issue rights shares at Rs.60 each in the ratio of one share for every two shares held in the company. For the quarter ended September 1999, the company made a profit of Rs.1.09 crore on sales of Rs.18.52 crore.
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