Markets turn weak
Mumbai: Disappointment at the 2:1 stock split announced by market leader Infosys Technologies led to a reversal of trends on the stock markets. Lack of support from institutional investors added to this predicament, as a result of which the Sensex of the Bombay Stock Exchange fell by 65.56 points to 4639.43. The S&P CNX Nifty of the National Stock Exchange also lost 14.95 points to end the day at 1384.65. The overall sentiment at the bourses was also affected by the happenings at the opening day of the winter session of the Parliament, which stock market players feel will slow down the reform process.

While Infosys lost Rs 380, pivotals like Reliance, ITC, Larsen & Toubro, Telco and Tata Steel also turned weak. Infotech stocks like Mastek, Aftek Infosys, Polaris Software, Citicorp Securities, KLG System, Visual Soft, however, managed handsome gains in an otherwise lacklustre market.
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Infosys shares split 2:1
Bangalore: Infosys Technologies’ board has approved a 2-for-1 split of its equity shares, breaking up the face value of each of its Rs 10 shares into two shares of Rs 5 each. Market players were expecting a 3-for-1 split. The unhappiness was evident as the Infosys scrip lost Rs 380 in a day in the markets. Foreign funds were seen selling the scrip in large chunks. The board of the company will now put up the recommendation for approval by the shareholders at an extraordinary general meeting on 29 December 1999.

Infosys’ American depository shares listed on the Nasdaq will also be spilt in the same ratio, with ADS holders receiving two ADSs for every one held. The ratio of two ADSs to one underlying equity share of the company remains unchanged. The company has 3,30,69,400 equity shares of par value of Rs 10 each as outstanding.
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BSE terminal in Delhi this week
Mumbai: The Bombay Stock Exchange is expected to open its first trading terminal in New Delhi this week. BSE president Anand Rathi said the exchange is also planning to evolve a package for regional stock exchanges seeking membership of the bourse by floating subsidiaries. The exchange is convening a meeting of such other stock exchanges that are keen to trade on the BSE.

Mr Rathi said two BSE terminals at New Delhi will be up this week, which will help the exchange as a large percentage of the exchange’s turnover comes from outside Mumbai.
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Varma panel for daily badla
Mumbai: The J.R. Varma Committee on carry forward trading is understood to be recommending collection of gross margins across the market by enforcing a client code for each investor, imposition of position limits on brokers as a percentage of total market capitalisation and stringent disclosure by bourses to the market regulator before selecting stocks for carry forward trading.

The panel is also learnt to have approved introduction of a daily badla in a rolling settlement format. It plans to recommend a weekly badla product, which will migrate to the weekly future product in individual stocks.
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New UTI sale, repurchase scheme
Mumbai: The Unit Trust of India has announced that sale/repurchase of all its open-ended equity-linked schemes will be carried out on the same business day that the application is accepted, if it is submitted before 2 p.m. Some 20 schemes of the UTI will be covered under this scheme which has come into effect on 29 November.
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Quasi-debt instruments from Mirc
Mumbai: Mirc Electronics, maker of the Onida brand of electronic products, is coming out with quasi-debt instruments convertible up to 30 per cent of its existing paid-up equity capital of Rs 7.02 crore. Mirc Electronics chairman and managing director G.L. Mirchandani said the funds raised will be used for brand building and cost cutting.
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Visesh clarification
Mumbai: Visesh Infosystems has clarified that its application for listing on the Bombay Stock Exchange was not rejected by the exchange. The exchange has only sought certain information. Before the information could be provided, the company said its public offer was cleared by Sebi and it went ahead with the offer. The company said it will approach the Bombay Stock Exchange for listing at a later date.
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