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Sebi appoints group of experts to look into options trading
Mumbai: The capital market regulator, the Securities and Exchange Board of India (Sebi), has set up a group of experts to examine the impediments to the growth of options trading in India.

While speaking to mediapersons on the sidelines of a press conference organised by World Federation of Exchanges (WFE) on Wednesday, Ravi Narain, CEO and MD, National Stock Exchange (NSE), said, "Options has great potential as a derivatives instrument to grow in India but has been less popular as compared to futures in the Indian market. There is a need to create awareness about the product and investors need to be educated. NSE as an exchange is planning to launch a training programme for investors to create awareness about options."

It may be recalled that the Sebi-appointed Secondary Markets Advisory Committee (SMAC) formed a sub-group in its meeting held in the second week of October to look into the various issues related to derivatives segment of the capital market.

To channelise more household savings into the capital market, NSE has launched a pilot project in the states of Karnataka and Kerala to create awareness among the investors, Mr Narain said. At present, only 1.5% of the total population of the country is investing in the capital market.
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WFE report: Better technology can cut costs of stock exchanges
Mumbai: Stock exchanges across the world are incorporating better technology in order to cut salary and benefits costs, which comprised 35 per cent of total cost in 2003, as per the World Federation of Exchanges (WFE) 2004 annual report.

According to World Federation of Exchanges secretary General Massimo Capuano, "The most important part of cost incurred is in technology and with investment in technology you can reduce cost of working year after year and part of this reduction can be shared with the customers," he said.

He however said that exchanges that have lower volumes and liquidity will remain as such.

Capuano also said that de-mutualisation of exchanges is a key to improved functioning and helps enlarge and broaden the scope of the exchange, besides being free in opening up the institution or exchange in terms of accessing newer markets and services, he added.
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IVRCL Infrastructure & Projects to raise US$140mn from overseas
Mumbai: IVRCL Infrastructures & Projects plans to raise US$140mn by way of foreign currency convertible bonds or other instruments. Earlier the company had considered a proposal for raising US$200mn through the issue of FCCBs, GDRs or ADRs.

The company will also seek shareholder approval for the fresh resolution, the company said.
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UTI AMC eyes NIF, pension foray
New Delhi: UTI AMC is planning to enter the pension sector and manage the newly constituted National Investment Fund (NIF).

UTI AMC at present has funds to the tune of Rs25,000 crore under management.

According to officials with mutual fund, the government's pension policy indicates that more than one PSU can be allowed to operate as pension fund managers and UTI AMC qualifies for a PFM.

UTI AMC will also pitch for managing the national investment fund.
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IFFCO's borrowing programme downgraded
Mumbai: Credit rating agency Crisil has downgraded the rating on the Rs400 crore long-term borrowing programme of the Indian Farmers Fertiliser Co-operative (IFFCO) to 'AA/Stable' from 'AA+/Rating Watch with developing implications.

The rating reflects Crisil's expectation of increased financial risk from the company's debt funded acquisition of Oswal Chemicals and Fertilisers' Paradip facility.

The debt funding of around Rs2,000 crore is expected to increase IFFCO's leverage to an estimated 0.9 times by March 31, 2006 as compared 0.3 times maintained during the last three years.

The company's debt protection measures are expected to decline as a result of the debt, it said, adding that the interest coverage is also expected to decline to 5-7 times in 2006-07 due to debt payments and higher financial charges.
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Mobile Tele to raise US$20mn from global markets
Mumbai: Mobile Tele Communications plans to raise US$20mn through issue of foreign currency convertible bonds, global depository receipts or any other financial instruments.

The company has plans to split the equity shares in the ratio 1:10 i.e., from Rs10 per share to Re1 per share.

The EGM has also approved the borrowings in excess of the paid up capital and free reserves of the company up to Rs100 crore.
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