IT stocks gain in intense activity
Mumbai: The upward mobility in the stock market has not abated. In the Bombay Stock Exchange, the 30-share Sensex reached an all-time high close at 4716.81 points, surpassing the previous high of 4710.25 recorded on 15 July. The day's high was 4757.04.

The 50-share National Stock Exchange's CNX Nifty too reached a close of 1337, again a new record.

Infotech stocks continued to rule the day, with Infosys Technologies hitting an all-time high at Rs 5518.75. The Infy -- half the Infosys' share on the Nasdaq -- was, however, quoted at $110 and $114, a hefty premium over the domestic price.

Other leaders in the rally were NIIT, Satyam Computers, Wipro, Visualsoft, Digital Equipment, Software Solutions and Advent Computers. Zee Telefilms also touched an all-time high on news that the company was considering a stock split. The scrip closed at its highest level of Rs 1,879.15.
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Zee plans stock split
Mumbai: Zee Telefilms will pare the face value of its share to below Rs 10 to encourage investors. The company has informed the Bombay Stock Exchange that its board of directors would consider sub-division of the company's equity shares of Rs 10 each into smaller denomination. The board is meeting on 28 July.

Zee will be the second company to have lesser denomination shares after Wipro has reduced the face value of its shares from Rs 10 to Rs 2 in May.
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Sebi debars 70 directors
Mumbai: The Securities and Exchange Board of India has debarred 70 directors of 80 companies from the capital market for five years. These directors represent some of the companies that have vanished after raising funds from the market to the tune of Rs 300 crore.

Sebi has issued orders against the 70 directors under section 11 B of the Sebi Act. They have been given time till August 15 to make representations. About 205 more directors are being investigated.
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Graduation minimum for brokers
Mumbai: The M.R. Mayya Committee set up by the Securities and Exchange Board of India in May 1997 to frame uniform rules and bye-laws for stock exchanges has made certain recommendations on minimum qualifications for stock brokers. These recommendations include:

• Aspiring stock brokers must be minimum graduates. They must pass a certificate/diploma course examination prescribed by Sebi;
• Existing stock brokers, especially the older lot, must undergo refresher courses once in three years. The syllabus, covering all the areas of capital markets will be set by Sebi with the help of the governing board of the stock exchange.

At present, the Securities and Contract Regulations Act prescribes 12 years of education as minimum eligibility criteria for stock brokers. This is relaxable by the governing board of the exchange depending on the person's experience in the trade.

The committee has also defined what is a multiple membership. The proposed norm will be to bar a broker who has defaulted on one exchange from carrying out business on other exchanges where he may be a member.
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New derivative instrument
Mumbai: State Bank of India has launched a derivative instrument that will enable companies to move freely from one currency to another without the underlying foreign currency liability.

Business Standard reported that the instrument is called long-term rupee dollar swaps and in itself is not a new phenomenon. It, however, has the characteristics of a contract written in a free-float economy.

The instrument is restricted to corporate sector at present.
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Sebi framing norms for internet trading
Mumbai: The Securities and Exchange Board of India is understood to be considering the guidelines of the International Organisation of Securities Commissions in framing its policy on the use of internet in the securities market.

The market regulator has prepared a paper on the subject for its secondary markets committee for discussion.

Iosco has recommended that internet use may go well beyond trading and incorporate some of the corporate governance-related issues and education of the investors.
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Depository downs custody charges
Mumbai: The National Securities Depository has significantly brought down the effective custody charges for investors by linking the charge to the value of shares in the custody of a depository participant. It has decided to levy a 2 basis point transaction charge on both buy and sell transactions as against the existing 4 basis point charge on buy transactions only. Off market transaction charges have been slashed to 2 basis points one either side, that is, buy and sell as against the present 10 basis points on the value of the transactions credited. The new charges are to come into effect from 1 August.  
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Non-bank firms to borrow from money market
Mumbai: The government has permitted 35 non-bank entities to borrow from money market through repo or ready forward transactions with other entities in notified government securities.,

The non-banking entities include primary dealers, dedicated gilt funds, mutual funds, insurance companies and financial institutions.,

The notification brings into force Reserve Bank of India's intention to expand the repo market. The non-banking agencies include Industrial Development Bank of India, ICICI, UTI, Life Insurance Corporation and General Insurance Corporation. 
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