Sensex dips 12.5 points
Mumbai: With stock prices moving in a narrow range, the market seemed to be in a depressed mood.

Opening lower in the morning, the BSE Sensex touched a high of 3,380.27 and low of 3,353.12 and closed the day at 3,370.93, a fall of 12.48 points. On NSE, S&P CNX NIfty closed 5.6 points lower at 1,085.9.

The worst sufferer for the day was software and computer education company NIIT, which was down 16 per cent to close at Rs 252.25 in the wake of sharp fall in net profits in the third quarter.

Similarly Tisco was also down by 7.54 per cent at Rs 92.55, after the company announced a fall of 80 per cent in its net profits on Wednesday.
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Rules for companies going public relaxed
Mumbai: In a recent notification passed by the government, companies wishing to access funds from the capital markets can now do so by offering 10 per cent equity, instead of the earlier requirement of 25 per cent.

The notification, which follows necessary changes in the the Securities Contract Regulation (Rules), comes six months after the Securities and Exchange Board of India approved the relaxation.

Although the Sebi board had approved a proposal to reduce the minimum offering requirement to 10 per cent in 2000, based on the advice from its primary markets advisory committee, companies were not able to tap the market under this route as changes in the rules were not carried out.

While Sebi had earlier imposed strict conditions on companies going public under this route, it has now scaled down the condition relating to size of the issue. Previously it was mandatory for companies adopting this route to have a issue size of Rs. 250 crore, but now this has been relaxed to Rs. 100 crore.

Sebi had also made it mandatory for companies to maintain a minimum floating stock post listing on a continuous basis. All new companies are required to maintain on a continuous basis the non-promoter holding at the same level as applicable at the point of entry (i.e. 10 per cent or 25 per cent).
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