Fresh positions were reportedly taken by players, as it was the first day of the settlement on the BSE. Net outstandings increased by Rs.77 crore, which meant that most of the purchases were of the speculative kind. Over a dozen shares which were earlier in the cash group, were transferred to the A group on Monday. These new entrants also played their role in helping the index go up.

The BJP manifesto which promised the channelling of pension fund money into the stock markets, also buoyed sentiment. Cement, information technology and diversified companies were in the limelight.

Indian Rayon, which announced a buy-back on Monday, failed to get support. It appeared bullish to start with, but later in the day, lost ground. Over 17 lakh shares were traded and the scrip closed at Rs.74.5 compared to Friday’s close of Rs.78. The bull run would have sustained had the company not made the announcement that it may close its sea water magnesia plant.
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Sebi to probe Otis price spurt
Mumbai: The sudden spurt in the share price of Otis Elevator Company (India) Ltd., just before the Mahindras announced the sale of their 23.9 per cent stake, has come under investigation from the Securities and Exchange Board of India.

The Mahindras sold the stake to the US-based, Otis Elevator Company.

Stock exchanges have been asked to furnish details of the trades that took place, and on whose behalf, so as to verify possible manipulation of the share price.
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Sebi meet on collective investment schemes
Mumbai: The Securities and Exchange Board of India will meet on Tuesday, 17 August, to finalise guidelines on the issue of collective investment schemes.

Other matters that are likely to be taken up are the recommendations of the P K Kaul Committee on the role of trustees in mutual funds and the B G Deshmukh Committee recommendations on investment limits by mutual funds linked to the their net asset values.

Sebi will also take up the matter of raising the custody limit of depository participants (DP). It had earlier recommended a ratio of 35 times net worth as the limit to which a broker DP can keep custody of shares. This ratio is now expected to be raised to 100 per cent as Sebi has already made its recommendations clear.

Sebi feels that this is the area that is vulnerable to fraud. It has also proposed compulsory connection of all DP branches having more than 5,000 accounts.
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CSE’s new software
Calcutta: The Calcutta Stock Exchange has installed a new software to help its members standardise the operations.

The package has been developed by Viratech and will cost Rs.4,000 per year.
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