IT stocks again lead a recovery of sorts
Mumbai: Information technology stocks contributed to a market recovery with a number of foreign funds purchasing IT shares in bulk. As Tuesday was the last day of the settlement on the National Stock Exchange, there was sizable squaring up of positions, which led to a fall in share prices towards the end of the day.

Apart from IT stocks, the one stock that saw intense activity was Reliance Industries, which found speculative support on the expectation   of a 25 per cent increase in its Q3 earnings. The company's results are being announced on 20 January. The stock saw its price going up by Rs 11 to Rs 320.

Infotech stocks like Infosys Technologies, Wipro, Digital Equipment, and NIIT also firmed up with support from funds. Another stock that has been moving in the last two days is Goldstone Engineering, which again hit the upper band to close at Rs 237.40

The Sensex of the Bombay Stock Exchange gained 60.44 points to close at 5464.51. The S&P CNX Nifty of the NSE, however, lost 4.90 points, closing at 1606.70.
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BSE, OTCEI nominees in regional bourses' panel
Mumbai: Dina Mehta, vice-president of the Bombay Stock Exchange, and Joseph H. Bosco, managing director of the OTC Exchange of India, have been elected to a five-member executive committee of the South Asian Federation of  Exchanges, formed in Chittagong in Bangladesh recently. A two-day meeting of regional stock exchanges in South Asia was held in Chittagong to encourage cooperation among various stock exchanges in the region to promote the market development evolve common standards. A joint declaration was signed by the participating stock exchanges that have become promoters of the South Asian Federation of Exchanges.

Apart from the BSE and the OTCEI, the other stock exchanges represented at the meeting were the Chittagong Stock Exchange, the Colombo Stock Exchange, the Karachi Stock Exchange, the National Stock Exchange of India, the Pune Stock Exchange, the Royal Securities Exchange of Bhutan, and the Nepal Stock Exchange.

The other members of the executive committee are Amir Khosru, president of the Chittagong Stock Exchange (chairman), Hiran Mendis, director general of the Colombo Stock Exchange (vice-chairman), and Arif Habib, chairman of the Karachi Stock Exchange.

Gerrit De Marez-Oyens, secretary  general of the Federation of International Stock Exchanges, also attended the meeting.
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150 want derivatives membership
Mumbai: The National Stock Exchange has received 150 applications from outsiders for its equity-cum-derivatives membership. Nearly 500 existing members of the exchange are also interested in this scheme. The NSE expects to start its trading in derivatives with a total of 500 members.

New members are required to pay a deposit of Rs 1.50 crore, of which Rs 1.25 crore will be in cash and the rest in securities and bank guarantees. Existing members will be able to trade in the derivatives segment after an additional deposit of Rs 10 lakh. At present, the NSE does not allow any new member to take up an equity segment membership. Instead, he has to take a combined debt and equity segment membership which will require a deposit of Rs 2.50 crore.
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Government wants exemption from takeover code
Mumbai: The government plans to seek a blanket exemption from the takeover code for strategic divestments in public sector undertakings. It has asked the department of company affairs to write to the Securities and Exchange Board of India in this regard. The government feels that the sale of bulk holdings in PSUs may trigger the takeover code and make it mandatory for acquirers to make open offers for 20 per cent holdings in the target companies.

The government's immediate concern is the divestment of 25 per cent of its holding in Indian Petrochemicals Corporation Ltd. Sebi rules require that a company acquiring 25 per cent of another must make an open offer for another 20 per cent, which will take the level of the acquirer’s holding to 45 per cent. The government wants to retain a majority control in IPCL.
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Geometric Software to raise funds
Mumbai: Geometric Software Solution Company is planning to raise Rs 30 crore from the market by issuing 3.1 lakh shares of Rs 10 at a premium of Rs 290 per share. The company intends to use the funds for setting up an information technology centre in Pune, which will be partly funded by the Exim Bank of India.

Geometric Software Solutions is engaged in developing engineering software solutions for computer-aided design, manufacturing, engineering and product management.
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KCC Software plans IPO
New Delhi: KCC Software of New Delhi is entering the market with an initial public offer of 40 lakh shares of Rs 10 each for cash at par. The company intends to expand its activities abroad and the funds will be used in setting up offices abroad. The company, basically, an software education and training company, will also set up a software development and training centre at Gurgaon near Delhi.
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