Sundaram MF plans small-cap fund
Kolkata: Sundaram Mutual Fund has warmed up to the idea of investing in small-cap counters, courtesy a scheme that will try to achieve capital appreciation by chiefly allocating to stocks that can be categorised as `small-cap.' It has sent the draft offer document for Sundaram Select Small-Cap to SEBI for clearance. Up to 100 per cent of the scheme's assets may be allocated to equities, while equity futures and options may take up a maximum 25 per cent. Not more than 25 per cent will be put in cash and money market instruments. It may also invest in select IPOs with no limit on market capitalisation.

Sundaram Select Small-Cap will be the first of its kind in the MF sector, said T P Raman, managing director, adding that a number of small-cap scrips have displayed major growth potential in recent times. "This will be a high-risk, high-reward fund, one that will take aggressive bets," he said. The S&P CNX Midcap 200 index has been chosen as its benchmark. The fund, however, may occasionally have to grapple with a paucity of volumes - a key issue for many small-cap stocks. "Yes, liquidity may turn out to be a problem. However, our research suggests that we will have a big pool of promising small-cap names to choose from," Raman observed.
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Ashok Leyland board agrees to share split plan
Chennai: Ashok Leyland's board has approved two resolutions, one to subdivide the company's Rs 10 equity shares into 10 shares of Re 1 each, and another to allow shares to be reconverted into Global Depository Receipts. Explaining the implication of the "reverse fungibility" measure, a senior official of Ashok Leyland said many institutions abroad wanted to take part in the growth of Indian stocks but did not want to take exposure in the country. Pension funds, for example, may have restrictions in investing abroad but might still want to be able to buy shares of good Indian companies.

Ashok Leyland came out with a Global Depository Receipt (GDR) issue in 1995 for $115 million. Three shares comprised a GDR, and each GDR was priced at about $12.38. In the subsequent years, most of the GDRs were converted into equity shares, after which they were allowed to be traded only on Indian stock exchanges. The GDRs' equivalent of some 15 lakh equity shares was issued, of which only about 3 lakh equivalent shares have been retained as GDRs.
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ONGC down on IPO issue
Mumbai: The counter of Oil and Natural Gas Corporation (ONGC) is on a downslide over the last few days in line with the overall market. But the fall in the price is much more than Sensex and Nifty. If the market talk is to be believed, selling in the ONGC counter is mainly due to its IPO next month.

Even though the pricing would be decided just before the issue opens dealers said it would be below Rs 700. However, some brokers said selling is mainly by players who have bought shares on borrowed funds. On Tuesday, the stock was down 6.21 per cent at Rs 692.75 on the BSE with volume of 4.90 lakh shares; on the NSE it closed at Rs 692, down 6.65 per cent with volume of 13.69 lakh shares.
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Rupee steady
Mumbai: The rupee held steady on Tuesday with almost nil movement. The currency opened and closed 45.29/30 in its value against the dollar, at the same level as on Friday.
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