Sensex loses steam due to Infosys, HLL and Zee
Mumbai: Just three scrips, which form part of the weightage of the sensex, accounted for over half the 1,000 point fall in the sensex. The sensex, which was looking solid at 4,763.63 on September 12, succumbed to the selling pressure in these three stocks, as a result of which the sensex lost a mind-boggling 1024-points.

Infosys, the top loser among the sensex stocks, contributed 217 points to the fall, despite an encouraging 134 per cent jump in net profit for the quarter ended September 2000. HLL, which accounts for 15 per cent of the weightage, faced some battering on expected flat topline growth during the third quarter ended September 2000. Zee Telefilms, the third-highest loser, contributed 103 points to the fall.
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JM Mutual to launch "ehtical fund"
Mumbai: Following global trends, India will have its first "ethical fund", where the fund will state upfront which business areas it will not invest in, given the social perceptions of those industires. Ethical investment first developed in the US during the anti-Vietnam War protests. In the UK, ethical funds have been around since the mid-1980s. They avoid investing in shares of companies associated with perceived "unethical" businesses such as armaments, tobacco, alcohol and gambling.

Christened "Heritage Fund", the fund is not likely to invest in the equity and debt of the meat, meat packing, pisciculture, sericulture or leather goods businesses; in the liquor, tobacco and hospitality industries and in the pesticides business.

The fund will, therefore, offer an opportunity to investors to invest their cash in line with their principles or religious beliefs, supporting companies that benefit the community and avoiding those products or services, they think are morally objectionable.

The fund is slated to appeal to the cash-rich Jain community and is also likely to appeal to all strict vegetarians among Hindus and Parsis.

Conceived by the chief investment officer of the fund, Mr. Krishnamurthy Vijayan, the idea behind the fund was to float a fund in this the 2,600th birth year of Lord Mahavira.
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Takeover artists to target more companies
Mumbai: Coming close on the heels of the Arun Bajoria-Bombay Dyeing incident, are strong indications from the markets that the next company being targeted by takeover artists is East India Hotels Limited, which runs the Oberoi group of hotels.

The share, which has seen a rise of a whopping 70 per cent since June-end, is said to be cornered by two south-based investment companies, through a host of Mumbai-based brokers. Both the companies have informed the necessary authorities since their holdings in EIH have crossed the 5 per cent trigger point.

The investment companies, which are said to have made the purchases are Chennai-based New Deal Investments and Hyderabad-based, Peninsula Investments. While it is not yet clear whether or not these two companies are acting in concert, sources in the Mumbai broking circles claim that the common thread binding these two investors is probably a relationship with a large rival hotel group, but whose main interest is in other businesses.
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Market regulator believes that hostile takeovers are here to stay
Mumbai: According to officials of the market regulator, Securities and Exchanges Board of India (Sebi), hostile takeovers in the country are here to stay. These officials believed that the days of protection are over and industrialists will have to strive for delivering shareholder value and good corporate governance.

Even the head of the regulatory agency, Mr. D R Mehta, has gone on record stating that nothing stops the promoter, under the current regulations, from increasing his stake either through the creeping acquisition route or through an open offer. Under the Sebi Takeover Code, the promoter group can make a public offer for 20 per cent of the capital provided the post-offer stake does not cross 75 per cent of the paid-up equity of the company.

Sebi officials are concerned about the negative impact for investors, if Mr. Arun Bajoria is forced to sell his entire stake.

The Sebi officials also stated that the transfer of securities in the demat regime is automatic and the Depositories Act supersedes the provision in the Companies Act which allows companies the right to refuse transfers if it is against the interests of shareholders at large. Companies, however, had the option of taking recourse to the CLB for redressal.

According to these officials, the ultimate defence mechanism is the creation and deliverance of shareholder value, since companies which care for shareholders become costly acquisition targets.
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