Motilal Oswal Sec allowed to open fresh demat accounts
Mumbai: The Securities and Exchange Board of India has allowed Motilal Oswal Securities Ltd to open fresh demat accounts. Sebi had issued an interim order on April 27 banning Motilal Oswal Securities, along with others from opening fresh demat accounts following their failure in adhering to the know your client (KYC) norms. It was alleged that they had facilitated opening demat accounts in fictitious names and cornering the retail portion of initial public offerings.
Back to News Review index page  

Rs1-cr fine on Top Cassettes
Mumbai: SEBI has slapped a penalty of Rs1 crore on Top Cassettes Ltd (Top Telemedia Ltd) for failing to appear before the investigating officer on a summons issued by the regulator.

SEBI summoned Top Cassettes (TCL) to investigate into certain irregularities committed by Prakash Fotran Softech Ltd (PFS). Prakash Touchwood Ltd, had come out with a public issue in December 1995 and its shares were subsequently listed on three stock exchanges, including the BSE. The company later `diversified' into software business and in March 1999 changed its name to Prakash Fotran Softech. In September 1999, PFS announced an "exaggerated" financial performance for the quarter ending June 1999, along with a dividend of 10 per cent, which was withdrawn in March 2000. Share prices of the company rose from Rs23.25 (August 1999) to Rs46.50 (November 1999). "Predictably enough, Pivotal Stoxare Ltd and Coverage & Consultants, that offloaded shares during this `boom' phase were entities connected to PFS, which also included TCL," said the SEBI order.
Back to News Review index page  

Govt may sell 5 pc stake in MTNL
Kolkata: The Centre is considering various strategies for Mahanagar Telephone Nigam (MTNL). These alternatives could be delisting MTNL from the bourses or divesting about 5 per cent of the government's stake in Bharat Sanchar Nigam (BSNL) before merging the two entities.

The government has been toying with the idea of merging MTNL and BSNL for quite sometime now and had appointed ICICI Securities for the purpose.

MTNL is listed on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE) and the government holds about 56 pc stake in it. BSNL on the other hand is a wholly-owned entity by the Centre. A 5 pc dilution of the government's stake in BSNL will allow its scrip to be listed on the bourses. A merger between BSNL and MTNL is difficult because MTNL is a listed company, while BSNL is not and a fair valuation of the companies is difficult to arrive at and has been acting against the merger.
Back to News Review index page