NSE to conduct security audit on brokerages
Hyderabad: The National Stock Exchange of India plans to conduct independent audit of security and brokerages in order to ensure security and regulatory compliance and business continuity processes.

NSEIL proposes to take up about 25-30 big securities firms and study their internal audit practices. The idea is to ensure that security is addressed proactively and becomes part of the systems and work culture.

Officials at NSE said the volume and size of online transactions had gone up significantly opening up chances for vulnerability of the trading system.

As a part of SEBI Stock Brokers and Sub-Brokers Regulations Act, and later SEBI Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets Regulations Act, Sebi has been making efforts to curb fraudulent transactions.

The policy on disclosures and internal procedures for prevention of insider trading calls upon listed entities to make proper disclosures to the stock exchanges. The model code expects companies to ensure that the price sensitive information needs to be preserved, while providing for limited access to confidential information.
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Shyam Telecom relists, ends 127 pc higher
Kolkata: Shyam Telecom has been re-listed on the stock exchanges after restructuring as a pure telecom equipment counter. The stock attracted traded quantity of 1.36-crore shares on the BSE and 1.37-crore shares on the NSE.

Based on new business valuation, the stock witnessed a fresh price discovery. It opened at Rs72.60, raced to the day's high at Rs148 before closing at Rs137.40, posting a gain of 127 per cent against the previous closing of Rs60.

Shyam Telecom went off-trading from July 21. The restructuring saw the telecom and transmission equipment business of erstwhile Shyam Telecom Manufacturing Ltd (STML), then a wholly owned unlisted subsidiary of Shyam Telecom Ltd (STL) being merged with it.

The business reorganisation also saw transfer of liabilities of the amalgamated company of Rs200 crore to Shyam Basic Infrastructure Projects Pvt Ltd. This company has been given a consideration of equity stake in Shyam Telelinks, another unlisted subsidiary, which would be listed separately in December 2006. This proposed entity will have telecom services business; primarily it would become the unified services operator in Rajasthan.
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UTI Intl to launch infra fund
Mumbai: The UTI Asset Management Company (AMC) will soon launch a $200-300 million offshore infrastructure fund.
UTI International, which is a UTI AMC subsidiary is launching the fund.

UTI AMC has decided to have Singapore as the domicile for its second offshore infrastructure fund to take advantage of the recent India-Singapore double taxation avoidance treaty. Further, the presence of several global funds in Singapore would also help in roping in investors to the fund.

The launch of its second offshore infrastructure fund is coinciding with expected closure of its first infrastructure fund in the coming months. UTI AMC's first offshore infrastructure fund gave 35 per cent CAGR (compounded annual growth rate) in dollar terms since its inception in late 1999.
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Parsvnath, Lanco IPOs get modest response
Mumbai: Real estate company Parsvnath Developers' and Lanco Infratech 's IPO, which opened for subscription on Monday, received a modest response on the first day.

While the IPO by Parsvnath Developers was oversubscribed by 1.54 times, Lanco Infratech was oversubscribed by 1.07 times at the end of the day of issue opening.

Both the IPOs are expected to mobilise about Rs1,000 crore each.

The retail portion of Parsvnath was subscribed 0.0235 times and for Lanco Infratech, the figure was even lower at 0.0148 times.

However qualified institutional buyers (QIB) portion was oversubscribed by 2.39 times and 1.78 times for Parsvnath Developers and Lanco Infratech.

Parsvnath Developers is offering 3,32,38,000 shares of Rs10 each at a price band of Rs 250-300, while Lanco Infratech Ltd is offering 4,44,72,381 shares at Rs200-240 a share.
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