BSE sensex loses 173 points to close at 5,129
Mumbai: Taking cue from the sentiments in the global stock markets, the Bombay Stock Exchange index, sensex, lost a whopping 173 points to close at 5,129. A pronounced weakness in technology stocks across south east Asian markets, resulted in infotech stocks on the BSE losing shine, clearly proving the point that the Indian bourses are increasingly becoming globally integrated.

Major factors that affected the BSE were the unwinding of positions by key operators in infotech stocks, advance tax payments that pulled the cash off the markets, steep margins imposed by stock exchanges pursuant to a notice issued in this regard by Sebi and profit booking by the FIIs on infotech and media counters. Almost all well known scrips like Wipro, Infosys, Zee Telefilms, Silverline Industries, Rolta, Reliance Industries and State Bank of India lost their shine.

The same downward sentiments ruled on the National Stock Exchange, with the NSE index dropping to 1,560 from its earlier closing of 1,601.

The only scrips to be spared were the pharma scrips which saw renewed activity at their counters as operators, including the FIIs, rushing in to pick up stocks.
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Malegam committee to review lock-in period, among other things
Mumbai: After a gap of four years since they have been introduced, Sebi has appointed the Malegam Committee to review the lock-in period norms for public issues. Initially set up in 1995 to study the disclosure norms for public issues after the MS Shoes scandal, the committee was recently reconvened to study the problem of lock-n periods. The committee will look into the existing norms to see whether they need to be changed in light of the current prevailing conditions.

A lock-in period specifies the period for which an allottee of shares cannot sell or other dispose off the shares acquired. Currently there are different lock-in periods for different types of allotments. The committee is seeking to rationalise this and have a standard lock-in period for allotments.

The committee in its earlier sittings had already pointed out the inadequacy of disclosures for the purposes of public issues. Sebi feels that if Indian companies can disclose everything while making offers on the American stock exchanges, they should be ready to do so even for offerings on the Indian stock exchanges.
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