document.writeln("

Birth of a new era: The Bombay Stock Exchange Ltd (BSE) is born
Mumbai: On August 18, 2005, the members of the Bombay Stock Exchange gathered at the BSE Convention Hall to approve a resolution to dissolve the existing structure of the exchange as an association of persons, and moved into a new era as a corporate entity. The exchange will now formally change its name to the Bombay Stock Exchange Ltd (BSE).

A fully broker-run institution till now, BSE will henceforth have a professional board in place, with the representation of broker members limited to 25 per cent.

From its initial beginnings as the Native Share and Stock Brokers' Association (NSSBA), registered on July 9, 1875, BSE today has over 600 broker members and market capitalisation of over Rs21,00,000 crore.

The corporatisation and demutualisation is expected to bring in a new era in the management of the exchange. From now on, membership of the exchange, which gives a person the right to trade on the exchange, is likely to be made available on payment of a specific fee and fulfilling certain qualifications.

Hereditory passage of membership, which used to exist earlier, will cease as the membership and shareholding is separated.
Back to News Review index page  

SEBI: FIIs invest Rs.44,123 crore in equities - MFs at just Rs.448 crore for 2004-05
Mumbai: The Securities and Exchange Board of India's annual report for 2004-05 says that while FIIs invested Rs44,123 crore in the Indian market, mutual funds have invested merely Rs448 crore.

However, in the case of debt investments, the report says, "Comparing both the classes of institutional investors, it was found that net investment by mutual funds in debt at Rs16,987 crore was much higher than that by FII at Rs1,759 crore."

The lower FII investments in debt could however be explained in terms of regulatory restrictions, which put cumulative limits of US$1.75bn on G-secs, including treasury bills, and US$500mn on corporate debt.

The report also says that net resource mobilisation by mutual funds declined by 95.3 per cent to Rs2,200 crore in 2004-05. Mutual funds mobilised Rs46,808 crore in the previous year.

UTI Mutual Fund and other public sector mutual funds witnessed net outflows of Rs2,722 crore and Rs2,677 crore respectively in 2004-05, as against net inflow of Rs1,667 crore and Rs2,597 crore in 2003-04. The sectoral shares in the gross mobilisation and redemption show the dominance of private sector mutual funds. However, resource mobilisation by private sector mutual funds also came down significantly in 2004-05.

The report attributes this to redemption pressures mainly on income and gilt schemes. "In an environment of rising interest rates, gilt schemes lost some of their appeal. Part of the proceeds redeemed from mutual fund investments might have been reinvested in the small savings schemes due to attractive rates offered by the Government along with the fiscal incentives," it said.

FIIs are also big movers in the futures and options segment. Their investment in derivatives was Rs1,52,970 crore as on March 31, 2005. Open interest position of FIIs in single stock futures was 59 per cent by end-March 2005 followed by index futures (29.7 per cent). The share in index options was 10.9 per cent whereas the lowest investment was in stock options at 0.4 per cent, according to SEBI.
Back to News Review index page  

Fidelity acquires 2.81 per cent of IVRCL
Hyderabad: Fidelity Investments along with other entities has acquired 5,90,171 equity shares of IVRCL Infrastructure & Projects Ltd, aggregating to 2.81 per cent of its paid up capital.

IVRCL informed the stock exchanges that the mode of acquisition was open market and the acquisition was executed on July 26.

Following the latest acquisition, the current shareholding of Fidelity along with other entities stood at 25,64,167 equity shares, aggregating to 12.22 per cent of IVRCL's paid up capital.
Back to News Review index page  

Sasken Comm IPO subscribed 78 times
Bangalore: Sasken Communication Technologies Ltd's initial public offer, which closed on Wednesday, has been subscribed by over 78 times.

Sasken had fixed a price band of between Rs230 and Rs260 per share. The company is issuing five million shares at a face value of Rs10 each at cash through the public issue, which is 100 per cent book-built.

The company, which entered the market on August 11, expects to raise between Rs115 crore and Rs130 crore from the public issue, which is 100 per cent book built.

The company has reserved half a million shares to its employees and the net offer to public would constitute 16.39 per cent of the fully diluted post-issue paid-up equity capital.
Back to News Review index page