BSE launches options trading
Mumbai—The Bombay Stock Exchange launched options trading on Monday in individual shares, a release by the BSE said. The delay of about a week after Sebi banned the carry forward trading mechanism was because the bourse was testing the software. Options trading would now be available on 31 stocks said BSE authorities.
Back to News Review index page  

US stocks end higher
New York—Tech stocks rose on Monday as investors bagged stocks that fell to bargain levels during last week's sell off.
But blue chips however struggled to advance amid increasing uncertainty about when business will improve.
In mid afternoon trading, the Dow Jones Industrial Average was down 2.90 at 10,249.78 after moving moderately higher earlier on. The broader market advanced, with the Nasdaq Composite Index rising 19.49 to 2,023.65, and the Standard & Poor's 500 index gaining 4.12 to 1,194.71.

Post profit warnings last week by EMC, Advanced Micro Devices and Federated Department Stores, all three stocks fell. On Monday, all of them recovered some of their losses.
EMC was up $1.03 to $22.63, AMD gained 34 cents to $21.14, and Federated advanced 68 cents to $38.92. However, analysts weren't confident any gains would be long lasting. After hearing more than 720 second-quarter profit warnings, investors are giving up on hopes that business will improve by the end of the year.
The Dow's biggest gain came from AT&T, which rose $1.98 to $18.70 on news that Comcast made an unsolicited $44.5 billion bid for its AT&T Broadband cable TV unit. Comcast fell $3.36 to $38.49.
AT&T's price was adjusted at the start of Monday's session when its wireless unit was spun off. AT&T Wireless traded lower, down 60 cents at $16.55.
Back to News Review index page  

Sebi split on open offers in PSU divestment
New Delhi—Sebi has been put in a tight corner over the twin issues of exemptions for PSUs on open offer and corporate governance requirements.
The disinvestment ministry has sought exemptions for PSUs on open offer requirements if the government stake was sold to a strategic partner. The matter was referred to the Sebi board.
Sebi had earlier clarified that an open offer would be mandatory in every case where a listed PSU is disinvested, with a non-government company acquiring more than 15 per cent of its equity. At the board meeting on Monday a section at Sebi said that it was not feasible to evolve a different set of norms for one set of listed companies, like PSUs. Shareholders whether of PSUs or private companies have certain rights, which need to be protected.
Another contentious item was the industry ministry seeking relaxations for PSUs on corporate governance clauses. On this issue, too, the board members were divided.
The clauses related to the composition of company boards and the number of directors. Again, it was felt that it was tough to distinguish between companies once they get listed.
Back to News Review index page