Infotech stocks stagger in a weak market
Mumbai: Infotech stocks,  in the limelight for a week, took a beating on the markets. Prices of most of the stocks came down substantially on selling pressure. Institutional investors were again absent to a large extent during the day. The Sensex of the Bombay Stock Exchange shed 25.22 points to end at 4665.56. The National Stock Exchange’s S&P CNX Nifty gained a marginal 3.15 points to close at 1401.40. The BSE had a turnover of Rs 3,344 crore, a large volume in specified group. The NSE’s turnover was at Rs 5,520 crore.

In a weakened market, Pentafour Software touched a new high of Rs 1,500 on the BSE. Tata Elxsi and Wipro among infotech stocks and ICICI, ICICI Bank and Hero Honda among others saw brisk activity.
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BSE starts mock derivatives trading
Mumbai: The Bombay Stock Exchange has started mock trading in derivatives. The exchange has received membership from 86 broker-members in this segment and plans to start actual index-linked trading by February 2000. The trading will start with shares belonging to the BSE 30 Sensex.
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Net trading okayed
Mumbai: The Bombay Stock Exchange’s governing board has approved in principle a plan to introduce Internet-based trading. The facility is expected to be available in about three months, stock exchange sources said. The introduction of the facility is, however, subject to the Parliament passing the information technology bill and framing of cyber laws for such trading by the Securities and Exchange Board of India.
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ICICI brings out Zenith Info case
Mumbai: ICICI has formally informed the Securities and Exchange Board of India that Zenith Infotech, which has come out with an initial public offer, had failed to inform its prospective investors about a pending litigation involving a group company, Zenith Magnetics, for loan defaults amounting to Rs 8.05 crore. Sebi is understood to have taken cognizance of the complaint and written to the merchant bankers managing the issue to clarify the matter. The company’s issue for 34,75,000 equity shares of Rs 10 each at a premium of Rs 10 per share, opened for subscription on 15 December.

ICICI said it has filed a case against Zenith Magnetics before the Bombay High Court in respect of a foreign currency loan of $4,43,327, which involved a personal guarantee of the promoters, Raj K. Saraf and G.K. Saraf,  as well as a corporate guarantee given by Zenith Electro Systems.

Mr Raj Saraf clarified that Zenith Magnetics does not fall under the category of a group or associate company and that he has ceased to be a director on the company since 1990.
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Sebi tells firms to wind up unregistered schemes
Mumbai: The Securities and Exchange Board of India has directed that establishments sponsoring collective investment schemes, which have not yet applied for registration, must wind up these schemes and repay their investors. Sebi has sent letters to this effect to 23 organisations, which have failed to apply for registration. These organisations have mobilised nearly Rs 2,000 crore under various schemes. Sebi s also writing to the chief ministers of Andhra Pradesh, Tamil Nadu, Himachal Pradesh and Goa to consider taking action against defaulting organisations whose registered offices are situated in these states.
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Indian Oil GDR issue cleared
New Delhi: Indian Oil Corporation’s proposed 78 million share GDR issue has been approved by the task force on disinvestment. The issue is expected to be in the market in January 2000. It will reduce the government’s equity in the oil major from 82 per cent to 72 per cent. The company is finalising the various parameters and terms for the issue.
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Bank of Tokyo-Mitsubishi plans online brokerage
Tokyo: Bank of Tokyo-Mitsubishi and TD Waterhouse Group are coming together to form an online breakage firm in Japan in 2000. Bank of Tokyo-Mitsubishi, the largest bank in Japan, will have 55 per cent holding in the new firm, which will have a capital of 5.5 billion yen. TD Waterhouse, the world’s No 2 discount stock broker, will pick up the balance.
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