New carryforward system suggested
Mumbai: A committee set up by the Securities and Exchange Board of India has recommended a modified carryforward system for stocks in the rolling settlement. The J.R.Varma Committee has agreed to the proposal of the Bombay Stock Exchange for a revised system for stocks that are in the compulsory rolling settlement. At present, the mechanism allows investors to borrow securities or funds for a period of a minimum seven days at a time. The modified systems prescribes that an investor will be able to borrow for any period from a day to five days. The flexibility is expected to add liquidity to the rolling segment.

Sebi has approved 10 stocks in which a rolling settlement will become compulsory from 11 January on BSE and the National Stock Exchange. The stocks are BFL Software, Citicorp Securities, CyberTech Systems and Software, Hitech Drilling Services, Lupin Laboratories, Maars Software International, Morepen Laboratories, Sri Adhikari Brothers, Tata Infotech and VisualSoft. These stocks are in the compulsory dematerialised list and have a daily turnover of about Rs one crore or more and do not fall under the carryforward list of any exchange.
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Shree Rama Multi-Tech plans issue
Calcutta: Shree Rama Multi-Tech is planning a maiden equity offer, and is proposing to use the book-building route. The company will issue 80,55,750 equity shares of Rs 5 face value. The existing members will also sell 55,92,000 shares at the same face value. The offer will consist of a book-building portion of 99,37,500 equity shares and a fixed price portion of 37,10,250 shares, including 3,97,750 shares reserved for employees. The bidding under the book-building option will open on 15 January and close on 21 January.

A part of the funds to be raised will be used for the company’s expansion plans, including expansion of capacity at Ahmedabad, and setting up of a new unit at Pondicherry.
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Kotak Mahindra plans rights issue
Mumbai: Kotak Mahindra Finance is planning a rights issue and divestments in order to shore up its capital base so that it can make its proposed foray into insurance. The company has plans to create a joint venture with US Chubb Corporation for non-life insurance business and build its own venture for life insurance, each with a capital of Rs 100 crore. The company will be submitting its applications for licences to run the two insurance businesses. It may have to have a minimum net worth of Rs 500 crore as per the Reserve Bank of India norms, and the proposed rights issue and divestments are part of plans to increase the net worth.

The company plans a one-for-four-held Rs 90-crore rights issue by March 2000 at an offer price of Rs 90 per share. The rights issue is expected to increase its net worth to Rs 420 crore. The balance will be raised through disinvestment and profits.
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Andhra Bank Housing plans IPO
Mumbai: Andhra Bank Housing Finance will make an initial public offering in November 2000 to raise about Rs 50 crore. The company requires funds to network its branches. The company has a subscribed equity capital of Rs 20 crore. It had raised Rs 11 crore recently through a rights issue.
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