Sensex rallies gains 68 pts
Mumbai: For the first time in April, taking a cue from US markets, the stock markets reacted positively and the bourses finished in positive territory on Monday.

The BSE Sensex gained 68 points while the NSE Nifty closed the day with a gain of 20 points. The new economy stocks were in huge demand as they offered value-buying at lower levels and foreign institutional investors (FIIs) resorted to bottom fishing in these counters. All the frontline new economy stocks were locked in the upper circuit of 16 per cent. However, there were some counters like Mastek and Zee Tele, which lost heavily during the day and remained frozen in the lower circuit limit of 16 and 9 per cent respectively.
Leading pharma stocks like E.Merck, Aurbindo Pharma, Ranbaxy Laboratories and Cadila Healthcare however bore the brunt of heavy selling.

The BSE Sensex gradually moved upwards after mid-session and closed at 3251.62, showing a net rise of 67.85 points. Nifty also followed suit and closed with a gain of 19.80 ponints at 1044.60.

In a four-day streak, the Nasdaq Composite index finished the week on Friday last with a rise of about 15 per cent injecting some life into the domestic software stocks that witnessed investors’ wrath following lower revenue projections for 2001-02 by the IT bellwether, Infosys Technologies, in the previous week.
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Tata MF applies to Sebi for change of sponsor
Mumbai: Tata Mutual Fund wants a change of sponsor and has applied to the Securities & Exchange Board of India to change the sponsor from the Tata group entities to Toronto Dominion Bank-Canada.

At present the sponsor of the MF is Tata Sons, the holding company of the Tata Group, which holds 37 per cent stake in the Tata Asset Management Company,(AMC) which manages Tata MF.

Tata Investment Corporation holds another 37 per cent in the AMC while another Tata group company, Tata Finance holds the balance 26 per cent in the AMC.
Lately Toronto Dominion Bank has been inducted as the joint venture partner in the MF.

After sale of equity to TD Bank Canada, the shareholding of Tata Sons & Tata Investment Corporation will decline to 18 per cent each while that of Tata Finance will fall to 14 per cent.
TD Bank Canada is expected a to acquire a 50 per cent stake in the venture at a price of Rs 50 a share aggregating to Rs 31 crore.
The price represents the acquisition of a 50 per cent stake in TAMC and Tata Trustee Company. TD Asset Management, the MF arm of the group, is the sixth largest fund house in Canada. The name of the domestic venture too is likely to be changed to Tata TD Asset Management and Tata TD Trustee Company.

This will be Toronto Dominion Bank’s second joint venture with the Tatas.
The Canadian financial major has a minority stake in Tata Group’s broking venture, Tata Securities, through its one of its subsidiaries — T D Waterhouse.
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Murugappa Group to buy out foreign MF partner
Mumbai: There now seems to be a trend amongst Indian business houses with a significant presence in the asset management sector to buy out the shareholdings of foreign partners.

Thus the Chennai-based Murugappa Group has announced intentions to buy out the 49 per cent stake held by Cazenove Fund Management UK in their mutual fund joint venture.

It has thus become the third Indian corporate to buy out its foreign partner in the mutual fund business.

The AV Birla Group had earlier bought out Capital International's stake in their MF joint venture. The Tata Group had also recently bought out Dresdner RCM's 20 per cent stake in Tata Asset Management Company.

Cholamandalam Cazenove AMC CEO Ved Prakash Chaturvedi said, "Cholamandalam Investment & Finance Company will be buying out the 49 per cent stake held by Cazenove Fund Management Mauritius based on a valuation methodology prescribed and approved by the Reserve Bank of India."

The AMC has a paid-up equity capital of Rs 10 crore and manages a total of eight schemes with assets of over Rs 675 crore. Cazenove has a 49 per cent stake in the paid-up equity capital of the AMC whose networth stands at Rs 17.90 crore.

Of the AMCs Rs 7.50 crore paid-up preference share capital, 83.67 per cent is held by CIFCO.
Save for one scheme, the liquid fund, which has a joint Cholamandalam Cazenove branding, all other schemes carry the Chola branding. As part of the buy-out, the two Cazenove representatives on the board of Cholamandalam Cazenove Trustee, Henry Merton Henderson and V Nataraj -- an alternate director to Henderson -- will be stepping down from their board berths.
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